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Diversified Foods, a food manufacturing company based in Covington, Louisiana, has reached a settlement with state regulators involving a $10,000 penalty due to alleged violations related to a significant ammonia gas leak from its Madisonville plant in October 2015. The leak, caused by a ruptured rooftop pipe, released an estimated 28,000 pounds of anhydrous ammonia, shutting down Interstate 12 and contaminating nearby areas.

The settlement addresses not only the 2015 incident but also subsequent leaks and failures in chemical accident prevention planning. Although the initial penalty was over $50,000, the final settlement reflects steps taken by Diversified Foods to resolve the concerns raised by inspectors, including a $4 million upgrade of its refrigeration system. The Louisiana Department of Environmental Quality is overseeing the settlement process, which includes a public comment period.