The US Environmental Protection Agency (EPA) said Yuma Ethanol has agreed to pay a $5,850 civil penalty and correct the storage and usage violations of toxic and flammable substances at its ethanol plant in Yuma, Colorado.
In October 2011, an EPA inspection of the plant found that the company had violated risk management programme regulations under the Clean Air Act.
By agreeing to the settlement, the company has certified that the facility is now in compliance with the regulations, according to the EPA.
Mike Gaydosh, EPA Denver enforcement director, said the requirements ensure that facilities have up-to-date procedures in place to prevent and respond to releases of toxic chemicals used on-site.
"Failure to comply with these requirements can leave the public and environment at risk from accidental releases," Gaydosh added.
The Clean Air Act requires the companies to maintain a risk management plan if they store more than 10,000-pound anhydrous ammonia and natural gasoline.
During the EPA inspection, Yuma Ethanol had approximately 97,000 pounds of hazardous chemical anhydrous ammonia.