The provincial goverment will pay $142,500 to the family of a North Battleford woman killed in 1997 by two teenage girls who were in custody at her community home.

On Dec. 18, 1997, Helen Montgomery, 58, was struck on the head with a cast-iron frying pan and then stabbed 15 times with a kitchen knife.

Her body was discovered the next morning by her daughter, Valerie Montgomery-Bull.

Serena Nicotine and Catherine McKenzie, both young offenders, later pleaded guilty to second-degree murder.

Montgomery's family filed a lawsuit against the government of Saskatchewan last year.

In the suit, Valerie Montgomery-Bull said the province knowingly placed her mother in grave danger by putting Nicotine in her house without giving Montgomery any training or warning her of Nicotine's potential for violence. Nicotine was serving a sentence for murder at the time she was transferred to Montgomery's house.

As part of the settlement, the province will present an annual community service award in memory of Helen Montgomery.

"We have conveyed our profound sympathies and apologies to the Montgomery family," Corrections and Public Safety Minister Peter Prebble said Monday in a news release.