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The New Mexico Environment Department has reached a settlement with Marathon Oil Corp. under which the Houston company will pay $5.1 million in environmental projects and penalties to resolve air quality violations alleged by the state at Marathon’s Indian Basin Gas Plant near Carlsbad.

The environmental projects include $3.75 million to build and maintain new pollution controls to reduce sulfur dioxide emissions and $750,000 for an algae-to-biofuels project in Carlsbad.

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