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HELENA, Mont. — A federal appeals court has decided it won’t block a lawsuit filed by 152 Livingston residents who want BNSF Railway Co. to pay for the cleanup of toxic chemicals from a contaminated rail yard.

The city and residents said in the lawsuit that huge quantities of diesel fuel and solvents have seeped into the soil, surface water and groundwater. BNSF had asked a federal judge to block the 2007 lawsuit filed in state district court, arguing the injunction was necessary to keep jurisdiction in federal court.

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