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A Davis County used-oil recycling company has reopened its business while it works with the Utah Oil, Gas and Mining Division to resolve environmental problems.

The division's board ordered Intermountain Oil Co. to close Aug. 14 after the company continued to process used lubricants two months after a renewed permit was denied by the state because of oil leaks.Intermountain Oil then sued the division Aug. 26, saying it was singled out for enforcement. But 3rd District Judge Homer Wilkinson cleared the way for a settlement, ruling that the company first had to try to resolve the dispute through the agency's administrative procedures.

The company, on the boundary of Bountiful and Woods Cross, processes about 600,000 gallons of used oil each year.

James Carter, chairman of the Oil, Gas and Mining board, said he agreed to let Intermountain resume business because leaking valves and pipes were replaced and contaminated soils were excavated.