Sacramento  - The Union Pacific Railroad Co has agreed to pay a landmark 102-million dollar settlement after its workers were blamed for sparking a 21,000-hectare forest fire, the Sacramento Bee reported Wednesday.

The railroad agreed to a settlement after US District Judge Frank C. Damrell Jr rejected its arguments that the economic damage of the blaze was limited because most of the areas that burnt were on National Forest land where logging was prohibited.

Damrell ruled that the forest was more valuable because it was protected against logging and that Union Pacific was not only responsible for the cost of firefighting and lost timber, but also damage to young growth, soil, wildlife, habitat, recreational uses and views.

The ruling came as the drought-stricken western US faces an unprecedented fire risk due to climate change and a greater number of people living in previously remote rural areas. A single fire last year caused some 2 billion dollars of losses, while a record spate of wildfires this year burnt some 400,000 hectares.

Federal prosecutors said the record-setting settlement marked the start of a new approach to aggressively prosecute those responsible for fires.

"We're paying attention and very focused about regaining, not just [fire] suppression costs, but lost resources to the country," said US Attorney McGregor W. Scott.

The Department of Justice established Fire Recovery Teams in California and Utah this year to bolster their ability to seek damages.

According to a study by the California Department of Forestry and Fire Protection over a five-year period, about two-thirds of state wildfires were started accidentally by humans, natural causes or unsafe use of equipment. (dpa)