(AP) -- SANTA FE, N.M. (AP) - Biofuels research in southeastern New

Mexico will benefit from a settlement reached by the New Mexico

Environment Department and Western Refining Co. over air quality

violations at two of the company's refineries.

The settlement calls for Western Refining to pay $1.95 million

to the Center for Excellence in Hazardous Material Management in

Carlsbad for work that aims to turn algae into biodiesel.

The center has successfully cultivated and harvested a

wild-strain algae to produce a feedstock that can be converted to

biofuel. It has conducted the work at its facilities and at New

Mexico State University's agricultural experiment station near

Artesia.

The first payment of $650,000 will be made on Monday. The next

payment will be March 1.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

(Copyright ©2009 by The Associated Press. All Rights Reserved.)