COFFEYVILLE, Kansas - A Coffeyville oil refinery has agreed to pay a civil penalty and reimburse the federal government for costs associated with the cleanup of an oil spill during a 2007 flood in the southeast Kansas community.

The EPA says Coffeyville Resources Refining and Marketing will pay a $556,244 civil penalty for violating the Clean Water Act on July 1, 2007.

It also will pay $1.7 million to reimburse the federal government for its emergency response to contain the oil that spilled into the Verdigris River.

The oily floodwater coated a surrounding residential neighborhood.

As part of the agreement, the company also agreed to train its employees on ways to properly shut down the refinery in the event of a flood.

"The settlement with CRRM requires the company to make upgrades to its facility that will protect human health and the environment from future spills," said EPA Region 7 Administrator Karl Brooks.

About 3,000 Coffeyville residents were displaced after flooding along the Verdigris River that began at the end of June 2007.

The river topped its banks and flooded the refinery, spilling about 71,000 gallons of oil into water.