In its constant skirmishing with companies, the Environmental Protection Agency last week won its biggest victory yet in a water-pollution case. After five years of litigation, U.S. Steel Corp. agreed to stop dumping cyanide, ammonia and phenols—all toxic pollutants—into Lake Michigan and the Grand Calumet River from its huge works at Gary, Ind. It has been pumping out 16,700 Ibs. a day of solids, part of them toxic.

In a negotiated truce with the EPA, the company also consented to pay $3.45 million in fines for violating federal and state water-and air-pollution standards.

Further, U.S. Steel pledged to spend $70 million...

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