Israel has agreed to pay the largest settlement fund for gas leaks in the occupied West Bank, in a settlement approved by Israel’s Supreme Court on Monday.
The gas payments will be paid by the Israel-based settlement of Kiryat Arba, the Supreme Court ruled, citing the agreement between the two sides.
The settlements have become a source of controversy in Israel as a result of their role in the Israeli-Palestinian conflict.
The settlement fund was set up by the former Israeli prime minister Ehud Olmert and was set to reach a total of $1 billion by 2019, according to the announcement by the court.
It is one of the largest settlements in the West Bank to be established since Israel seized the area in the 1967 Middle East war.
Israel, which annexed the area, said the gas payments would be paid from its own coffers.
The settlement is home to some 2,000 people, but the majority are Palestinians.
It was established by Olmerts son, Ehud, in 2004 and is home a total area of 5,000 square kilometers (1,900 square miles).
The agreement between Olmertz and Kiryats court comes as Israel faces a backlash over a deadly attack on two Palestinian children in the northern West Bank village of Duma, which the Israeli government says was committed by Palestinians in response to a stabbing attack.
The attack was carried out by four Palestinian teenagers, including a 14-year-old boy, on an Israeli bus near Duma on July 6, when the attackers hurled Molotov cocktails at the bus and two men in the backseat.
Two other Israelis were injured in the attack.
A 19-year old man was arrested in connection with the incident and remains in custody.
The 16-yearold boy was seriously wounded in the stabbing.
The government says the attackers were part of a Palestinian network that planned and carried out the attack, but Israeli officials say the assailants had been on the run for months.
In a statement, Israel’s military said it “regrets” the attack and called for a thorough investigation into the matter.
“We also regret the loss of life and wish to hold accountable those who perpetrate this horrific crime,” it said.
The prime minister’s office, in response, said “it is the government’s duty to carry out justice in all cases”.