MONTPELIER, Vt. (Legal Newsline) - Vermont Attorney General William Sorrell announced a settlement on Tuesday with a contractor and a homeowner who will pay the state a total of $87,000 to resolve allegations of an unpermitted waste discharge.

Travis Smith, a contractor based in Granville, N.Y., allegedly illegally discharged hazardous waste in spring 2010. Smith allegedly discharged water containing home heating oil into soil near Tinmouth Pond. A nearby resident noticed an oily sheen in the water and on the shore of the pond and contacted the Vermont Agency of Natural Resources.

The VANR undertook a full and immediate cleanup of the area. The matter was then referred to Sorrell's office.

"Contractors must follow Vermont law when disposing of hazardous waste," Sorrell said.

The settlement includes recognition that contamination from the spill caused damage to nearby properties and natural resources and it requires that the defendants make payments to reimburse the state for all of the costs related to pursuing the full cleanup of the site. The funds from the settlement will go directly into the state's Environmental Contingency Fund and the Petroleum Cleanup Fund.