PENALTIES AND SANCTIONS

February 2006

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Recent Investigations, Settlements, Penalties and Sanctions

An Illinois ethanol production facility reached a settlement with U.S. Environmental Protection Agency (EPA) and the state of Illinois to resolve claims it operated in violation of the federal Clean Air Act. The company MGP ingredients of Illinois, Inc. (MGP) operates an ethanol production facility in Pekin, Illinois and joins other ethanol facilities in agreeing to reduce the emission of the air pollutants from grain processing. According to the Department of Justice, these settlements have brought approximately 83 percent of the nation’s ethanol production into compliance through reducing emissions.