A partnership of federal and state environmental agencies has asked a federal judge to approve a settlement requiring the Domtar A.W. paper mill in Ashdown, Arkansas, to pay $1.5 million for violations of the Clean Air Act.

The proposed agreement, submitted by the Department of Justice, the Environmental Protection Agency (EPA), and the Arkansas Division of Environmental Quality (DEQ), outlines a resolution to air pollution concerns identified by investigators during a 2019 inspection at the facility.

The large kraft paper mill, which employs approximately 580 people, has been in operation since 1968. In recent years, it primarily produces “fluff pulp,” a material used in products like diapers. EPA data indicate that over 2,000 residents live within three miles of the facility, with 162 residing within a one-mile radius.

During the 2019 inspection, DEQ and EPA investigators observed visible emissions from a brown stock washer system at the mill. Hydrogen sulfide monitors worn by inspectors alarmed during the visit, revealing potentially dangerous conditions. The inspection further uncovered that the mill had failed to monitor equipment for leaks, in violation of the Clean Air Act. One undetected leaking valve reportedly emitted unchecked pollutants, according to the Department of Justice’s statement.

In a press release, federal officials stated, “Without proper monitoring and performance testing, the extent of the excess hazardous air pollutants that Domtar emitted into the air are unknown.”

The Domtar A.W. mill holds a permit authorizing emissions of hazardous air pollutants such as volatile organic compounds, methanol, and chlorine compounds. Court filings detail that the facility released or had the potential to release pollutants including chlorine dioxide and hydrochloric acid into the atmosphere.

Under the settlement terms, Domtar will be required to correct equipment issues, adopt more rigorous leak detection protocols, and undergo oversight from an independent third party. These measures must remain in effect for two years before the settlement can be terminated. After public comments are reviewed during a 30-day period, a judge's approval is necessary for the agreement to take effect.

Deputy Assistant Attorney General Adam Gustafson stated, “Domtar is moving in the right direction to resolve its Clean Air Act violations by committing to properly control pollution and monitor for leaks and substandard facility performance.”

Melony Martinez, a spokesperson for DEQ, called the agreement “an important step for improving air quality and protecting the environment.” She declined to comment on whether the facility had already addressed the underlying issues, adding that the department “would allow the terms of the agreement to stand on their own.”

The proposed fine is notable for its size, amounting to $1.5 million. Of this, half would go to the Arkansas DEQ. According to EPA data, this penalty is significantly larger than most fines imposed on Arkansas facilities for air permit violations over the last few years. For comparison, the median fine related to air permits in 2025 was $2,665, well below the national average of $9,000.

The matter also intersects with broader trends in environmental enforcement. Nationally, the EPA has scaled back its enforcement efforts in recent years, and Arkansas state regulators have increasingly opted to settle alleged violations through consent administrative orders rather than pursuing cases before the Arkansas Pollution Control and Ecology Commission.

Domtar, headquartered in South Carolina, did not respond to a request for comment.