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Image courtesy of Diego Torres Silvestre/Flickr.

Husky Energy has given a city in the province of Saskatchewan a $5 million payment to begin covering costs related to a July pipeline spill.

The City of Prince Albert said in a statement on Tuesday that it received $5 million as part of a payment installation plan to cover direct costs and indirect losses the city has incurred from the pipeline spill.

The City of Prince Albert was forced to shut the intake at its water treatment plant in late July after a Husky Energy pipeline released oil and dliutent into the North Saskatchewan River.

The city also installed two temporary water pipelines after the spill.

The city said on Monday that the spill left it “scrambling to find alternative water sources and footing the bill for two temporary water pipelines to continue to provide water to the residents of the city.”

The funds will also cover losses in revenue caused by the spill such as a loss in water revenue, the temporary closing of several city facilities and paying additional staffing costs during the crisis.

The city deposited the funds into a dedicated bank account that was opened for receiving and paying out bills directly related to the oil spill.

The city has invoiced around $2.5 million to Husky Energy to date.

The city added that it’s expecting over $2 million per month in costs to maintain the operation of its two temporary water pipelines until the North Saskatchewan River is cleared for potable water consumption.

The city did not disclose further information about potential future payments.

“Husky Energy had promised from the onset that they would take full responsibility for the oil spill and pay all associated costs, and this payment is a good indicator that they are delivering on that promise,”  City of Prince Albert Mayor Greg Dionne said on Monday.

Husky Energy confirmed last month that the pipeline released between 200 to 250 cubic meter of fluid.

The company said on Monday that shoreline cleanup is ongoing and that water sampling and analysis is continuing.