Food producer Perdue has reached a close to $12 million settlement with the Maryland Department of the Environment over air pollution violations at the company’s soybean facility on the Eastern Shore.

The settlement, announced Wednesday, says Perdue AgriBusiness — a division of the Salisbury-based poultry giant — is required to pay an $8 million civil penalty, undertake more than $3.5 million in on-site pollution reduction actions and pay an additional $400,000 to the city of Salisbury to fund environmental projects.

“This case shows that everyone must follow the most basic requirements under our environmental laws and regulations, because overburdened communities living near industry often pay the price,” said MDE Secretary Serena McIlwain in a statement.

A complaint, filed alongside the settlement to the Wicomico County Circuit Court, alleges that Perdue in 2017 filed for a state air quality permit to construct equipment that would improve their soybean refinement process, specifically linked to the extraction of oil from soybeans.

When the Department of the Environment informed Perdue of inconsistencies between the application and the actual emissions being recorded, Perdue withdrew its application saying that it would reconsider its approach and refile later.

Instead, Perdue went ahead with the construction of the new equipment without refilling their applications or obtaining the necessary permits, according to the complaint.

The failure to meet regulations resulted in “increased local air emissions, contributed to regional ozone transport struggles, and negatively impacted the State’s ability to meet its federal Clean Air Act obligation to reduce pollution impacts across state borders,” according to the complaint.

Perdue now has 60 days to file a new application to construct enhancements to its facilities that will put it in compliance with air quality regulations, according to the settlement documents.

The people who didn’t file for the necessary permits are no longer with the company, said Perdue Farms spokesperson Kate Shaw on Wednesday. The company has also streamlined its compliance function to ensure it follows proper steps, she added.

Perdue was founded in Salisbury and has been operating in Maryland for more than 100 years. The company is one of the largest poultry producers in the U.S. and has previously sold some of its assets to local governments in Maryland.

“We are proud to have an annual economic impact of $1.6 billion in the state of Maryland,” said CEO Kevin McAdams in a statement. “While we have made some missteps along the way, we take full accountability, as reflected in today’s settlement agreement.”

The settlement agreement is subject to final approval by the court.