ASHDOWN, Ark. (From news reports) -- Domtar has agreed to pay a $1.5 million civil penalty and invest at least $2.6 million in environmental improvements at its Ashdown pulp and paper mill under a proposed settlement with the U.S. Department of Justice, the U.S. Environmental Protection Agency and the Arkansas Department of Energy and Environment.

The proposed settlement resolves allegations that the company violated the federal Clean Air Act and Arkansas environmental laws by failing to install required pollution controls and comply with inspection, monitoring and testing requirements at the mill.

As part of the agreement, Domtar will install new pollution control equipment, improve its leak detection and repair program, increase inspections and upgrade its wastewater treatment system to reduce harmful air emissions.

The proposed consent decree is subject to a 30-day public comment period before receiving final approval from the U.S. District Court for the Western District of Arkansas.