FRESNO, Calif. (AP) - The California High-Speed Rail Authority says it has settled a lawsuit filed by the city of Chowchilla over the rail agency's approval of a bullet-train route between Merced and Fresno.

The Fresno Bee reports (http://bit.ly/14qcJyc ) the settlement - announced in a statement Monday by the authority - removes a hurdle from its plans to begin construction this year in Madera and Fresno counties on the first segment of a proposed statewide rail system.

The newspaper says the settlement comes after the authority agreed to consider concerns by Chowchilla officials over route options in and around the city.

The rail authority will also pay up to $300,000 to cover Chowchilla's legal fees from the lawsuit.

Two other lawsuits challenging the environmental approval of the route are still pending in Sacramento Superior Court.

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