NEWARK, Ohio — Buckeye Egg Farm agreed Friday to pay a $1.36 million civil penalty and substantially change its business practices to comply with Ohio environmental law.

        The penalty and terms are part of an agreement in principle reached among Buckeye Egg, the Ohio Environmental Protection Agency and Attorney General Betty Montgomery, her spokesman said.

        The state sued Buckeye Egg in December 1999, accusing the company of dump ing dead chickens in a field, polluting creeks by improperly handling manure and causing infestations of flies, beetles and other insects.

        Buckeye Egg agreed to limit the number of chickens at its operations across the state and install a multimillion dollar manure handling and storage system at its Croton facility about 25 miles east of Columbus.

        Terms of the settlement will have to be approved by Licking County Common Pleas Court Judge Gregory Frost. A hearing is scheduled for Friday.

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