R.S. Audley Inc. has reached an agreement to pay a civil penalty in connection with allegations of illegally dumping storm water, although the company is not admitting fault.

The Bow construction company excavated about 1 million cubic yards of material from a 300-acre sand and gravel area in Londonderry and did not comply to the requirements of the federal Clean Water Act, according to the U.S. Environmental Protection Agency.

Although Audley agreed to pay the $60,000 fee, the move was to avoid higher costs down the road, said Fred Kenison, engineering vice president of Audley Inc.

“All I can tell you is we reached an agreement to avoid costs of litigation,” said Kenison.

“We admit no liability for any law being broken.”

During the excavation work in Londonderry, the company allegedly made unauthorized discharges of storm water into the Little Cohas Brook, and did not apply for a National Pollutant Discharge Elimination System permit.

Also according to the EPA, the storm water violations caused solids to be put into a Merrimack River tributary, potentially creating other issues.

Solids in rivers can impair fish spawning and have other negative effects on the water.