Bacardi reached an agreement with the U.S. Environmental Protection agency to settle charges regarding water pollution at its Puerto Rico operations.

The liquor firm's Puerto Rican subsidiary agreed to pay a $550,000 penalty and donate and preserve two acres of land valued at $1 million. The land in the Cienega Las Cucharillas watershed will be donated to Universidad Metropolitana.

EPA alleged that from March 2002 to July 2008 Bacardi had violated the Clean Water Act by discharging polluted wastewater into the Atlantic Ocean from its rum plant in Cataño, a suburb of San Juan.

Bacardi is also being given two years to address bacteria limits and improve monitoring of its wastewater discharge.

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