The US Department of Justice and the Environmental Protection Agency have announced that petroleum firm Sinclair Oil will pay a $2.45 million civil penalty and spend more than $72 million for new and upgraded pollution controls to reduce air pollution from the company's three refineries.

The settlement resolves alleged violations of the Clean Air Act at the company’s facilities in Casper and Sinclair, Wyoming, and in Tulsa, Oklahoma.

The agreement requires new pollution controls to be installed that will reduce annual emissions of nitrogen oxide by approximately 1,100 tons and sulfur dioxide by almost 4,600 tons when fully implemented.

With the agreement, 95 refineries located in 28 states, representing over 86% of the nation’s refining capacity, are required to install new controls to significantly reduce emissions. The first comprehensive refinery settlement was reached in 2000.

Ronald Tenpas, assistant attorney general for the Justice Department’s environment and natural resources division, said: The emissions reductions required by this settlement will lead to cleaner air and significant environmental and public health benefits for the communities in Wyoming and Oklahoma.