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(AP) MADISON A large Kewaunee County dairy farm reached a proposed settlement in state and federal lawsuits over the spread of liquid manure that a rural Luxemberg family claims polluted their well and sickened them.

The settlement, which still needs court approval, would require Glen Stahl to make environmental improvements at his farm and pay a fine to the state, while his insurance company would pay the Treml family $80,000.

According to the federal lawsuit, Stahl runs a 900-cow farm near the Treml home and spreads liquid manure on an 80-acre field across the road from the home.

Members of the Treml family, including three young children, became seriously ill last year from exposure to contaminated drinking water caused by the farm's pollution, the lawsuit claimed. The family had water trucked to their home for a time because of the problem.

Scott Means, an attorney for Stahl, said his client already planned to make the improvements required under the proposed settlement. He said Stahl disputes the Tremls' allegations but decided it was better to settle than go to court.

"Stahl Farms is happy that the case is settled because it saved the cost of going through trial and allows Stahl Farms to get back to being a dairy farm," Means said.

Andrew Hanson, an attorney for the Midwest Environmental Advocates, which represented Scott and Judy Treml in their lawsuit, said he was happy with the proposed settlement.

"The two main goals of this lawsuit all along have been to compensate the Tremls for what they went through and make sure this never happens again at Stahl Farms," Hanson said.

While the Tremls sued Stahl in federal court, Attorney General Peg Lautenschlager joined the family in filing suit in state court.

Under the proposed settlement in state court, Stahl would pay a fine of $100,000 if he does not implement the required improvements at the farm. If he complies within the required deadline, he would pay a $50,000 fine.