A subsidiary of Browning-Ferris Industries Inc. will pay $2.5 million to settle a federal and state lawsuit over environmental violations at its commercial toxic waste disposal facility at Livingston, La, the Environmental Protection Agency said.

The EPA said the payment by CECOS International Inc., a subsidiary of the Houston-based Browning-Ferris, comes under a consent decree filed Friday in federal district court in Baton Rouge, La.EPA Administrator Lee Thomas said the settlement represents the highest penalty ever obtained in a toxic waste court case.

"EPA will not tolerate hazardous waste mismanagement in this country," Thomas said in a statement. "This significant penalty should send a signal to all waste handlers that the cost of non-compliance with our requirements will be more costly than compliance."