The Associated Press reports that Dow Chemical Co. said that its operations in Michigan have agreed to pay $2.5 million as part of a settlement with the federal government over air, water and waste issues discovered during an inspection. The inspection was conducted over a 20-month period between August 2005 and March 2007. The chemical company said its Michigan unit in Midland has been working with U.S. Environmental Protection Agency and the Department of Justice since the since the inspection to review and resolve the issues from the audit. Dow said it made immediate corrections in the cases where it was found to be in noncompliance with government regulations. It said many of the allegations involved missed inspections, incomplete paperwork and procedural issues.