ExxonMobil has agreed to pay around $5 million (£3.3m) following an oil spill in the US two years ago.

ExxonMobil’s Pegasus pipeline failed in March 2013, spewing around 134,000 gallons – or 3,190 barrels – of oil in a suburban housing development near Mayflower in Arkansas.

It was carrying Canadian heavy crude oil from Illinois to Texas.

The US Environment Protection Agency (EPA) and Department of Justice (DOJ) said the company will pay civil penalties, fund an environmental project and implement measures to resolve the alleged violations of the Clean Water Act and state environmental laws.

Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance said: “Oil spills like this one in Mayflower, Arkansas have real and lasting impacts on clean water for communities.

“This settlement puts in place essential pipeline safety and response measures that are important to make this industry safer for communities.”

The penalties are in addition to the money the company has already paid to reimburse federal and State response efforts.