COVINGTON — Gallatin Steel has agreed to pay a $925,000 fine to settle a federal lawsuit that accused the company of violating air standards, the government said.

        A consent decree was filed this week in Lexington that should end the yearlong dispute, said Jamie MacAyeal, an attorney with the U.S. Justice Department.

        U.S. District Judge William O. Bertelsman still must approve the decree following a 30-day comment period.

        Gallatin Steel, based in Ghent, Ky., employs 350 people and makes about 1.3 million tons of flat-rolled steel a year.

        The federal government filed a civil lawsuit last year accusing the company of exceeding emission permits under the federal Clean Air Act between April 1995 and August 1997.

        In a statement released Thursday, the company denied any wrongdoing.

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