An Alberta oil company says it will fully compensate the farmer who owns a canola field where thousands of litres of oily water leaked earlier this week. The spill was discovered Tuesday 10 kilometres east of Red Deer on a line owned by Penn West Exploration of Calgary. Spokesman Greg Moffatt says it's more of a water spill than an oil spill. He says up to 300,000 litres of mostly produced water pooled up from an injection line and vacuum trucks have so far been able clean up a third of it. Tests show about one per cent of the fluid is oil and Moffatt says he's not sure if the farmer will be able to harvest the crop.