LINCOLN, Neb. (DTN) -- A 21-year-old lawsuit against six poultry companies alleging they polluted the Illinois River watershed with phosphorous and bacteria is nearing its end.

The state of Oklahoma announced a new $41.7 million settlement on Monday that replaces a previous resolution rejected by a federal court in April 2026.

Oklahoma sued Tyson Foods, Cargill, George's, Peterson Farms, Cal-Maine and Simmons Foods in 2005. The U.S. District Court for the Northern District of Oklahoma found the companies liable for pollution in December 2025 and then rejected a narrower settlement with four of the six companies.

The new agreement filed in federal court is expected to close the case with all six companies.

"This agreement allows us to turn the page on a dispute that has gone on for far too long," Oklahoma Attorney General Gentner Drummond said in a statement.

"It protects Oklahoma's water, provides certainty for our poultry industry and shows that difficult problems can be solved through persistence and good-faith negotiation. When the court asked us to strengthen the agreement, we went back to work and reached a better result. Every company has now made enforceable commitments with clear deadlines, creating a balanced solution that protects our natural resources while supporting one of Oklahoma's most important industries."

The settlement will require the companies to pay tens of millions of dollars into an environmental relief fund that will be transferred to the Oklahoma Conservation Commission.

The companies will pay a combined $420,000 in penalties to the state and will fund a $1.9 million auditor fund to pay for a compliance monitor.

Under the settlement, the companies will progressively reduce how much poultry litter removed from poultry houses each year is applied to land in the watershed.

No more than 40% of litter will be applied in years one and two, up to 30% in years three and four, then reduced to no more than 20% in years five through seven, according to the settlement.

Litter that is exported from the watershed to meet the limits may not be land-applied in any other "nutrient-sensitive" watershed in Oklahoma.

FUNDING BUFFERS

The companies agreed to fund or to secure funding for half the cost to install vegetative buffers on poultry farms along Lake Tenkiller as well as the watershed's Scenic Rivers system, which filters runoff before it reaches water.

"In entering this settlement, the attorney general is mindful of the record developed by the court over many years of litigation, as well as facts outside of the court record," according to the settlement. "Specifically, the attorney general has consulted with numerous stakeholders and considered the public interest including the impact of the Dec. 19, 2025, judgment on farming families, businesses that support family farms, cattlemen and farming communities. In entering this settlement, the parties are mindful of and seeking to minimize litigation risk, in particular risk of an adverse decision on appeal. This settlement provides guaranteed funding and support for remediation in Oklahoma. Taking all the foregoing into account, the attorney general has determined that this settlement best serves the public interest."

In addition, the settlement includes protections for contract poultry farmers.

"The released parties agree not to use this settlement as the reason or basis for any decision not to renew or extend contracts with IRW growers," according to the settlement.

"Each defendant shall fully, finally and forever release, relinquish and discharge each independent contract grower that is currently, or has been during the pendency of the IRW lawsuit, under contract with such defendant from any and all manner of claims, demands, actions, suits."

PREVIOUS SETTLEMENT

In February 2026, Tyson agreed to pay $19 million for remediation and conservation of the watershed, while Cargill Inc. and Cargill Turkey Production agreed to pay $6.5 million. George's agreed to pay $5 million to the state for remediation and conservation projects in the watershed, along with attorney fees.

That settlement was rejected by the court.

According to Save The Illinois River Inc., as of 2019 there were 398 farms in the Arkansas counties of Benton and Washington, with the capacity to house more than 42 million birds at 1,835 poultry houses.

The Oklahoma counties of Adair, Cherokee and Delaware are in the watershed. As of 2018, poultry producers in those Oklahoma counties reported a licensed bird capacity of about 23.3 million at 1,054 poultry houses.

In December 2025, the federal court issued a judgment holding poultry corporations jointly responsible and required them to fund decades of cleanup and imposed strict restrictions on waste application practices.

The companies sought to dismiss the case that has been ongoing for more than 20 years, in a court filing in October 2023. At that time, the companies argued that any penalties or relief of any kind would be based on outdated information as to pollution levels and other watershed issues.

Read more on DTN:

"Fed Court Denies Poultry Settlements," https://www.dtnpf.com/….

Todd Neeley can be reached at todd.neeley@dtn.com

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