Saskatchewan and the federal government of Canada have reached a deal regarding their ongoing feud over the carbon levy.
Earlier this year, Saskatchewan stopped remitting the carbon levy on natural gas to Ottawa, citing an exemption for home-heating oil users which mainly affected the Atlantic provinces.
While the federal government went to collect that money anyways, the provincial government filed an injunction at the Federal Court in Vancouver to stop the federal government from taking any money.
Recently, the two sides reached a deal, with the deal securing 50 per cent of outstanding amounts the province owes until the dispute is resolved.
Saskatchewan Justice Minister Bronwyn Eyre says the province has offered to establish a letter of credit, noting the dispute could still end up in the Tax Court of Canada.