A Virginia-based subsidiary of Duke Energy is paying $310,000 in a settlement over alleged Clean Air Act violations at a manufacturing plant in Narrows.

DEGS of Narrows LLC is a steam and electricity provider for Celanese Acetate. The settlement with the Department of Justice, U.S. Environmental Protection Agency and Virginia was announced Tuesday.

In addition to paying the civil penalties, the company has agreed to surrender 450 tons of nitrogen oxides allowances. The EPA says nitrogen oxides contributes to the formation of acid rain and also increases low-level ozone, which causes smog.

State and federal officials alleged that the company failed comply with its operating permit under the Clean Air Act from 2003 to 2007, as well as other violations.

©2010 The Associated Press. All rights reserved.