Oregon has settled a lawsuit it brought against a new mega-dairy accused of endangering nearby municipal and private wells by mismanaging manure and wastewater.

The settlement, filed in court Wednesday, will allow Lost Valley Farm in Boardman to operate in a limited capacity until it can prove that its wastewater treatment system is fully functional.

Since it opened a year ago, the dairy has failed numerous inspections, has been cited four times, and has been fined $10,640 for environmental violations, the Oregon Department of Agriculture said in the lawsuit, filed Feb. 23.

Owner Greg te Velde failed to comply with multiple directions to stop liquid manure and wastewater from overflowing storage lagoons and seeping into soil, the state said.

The lawsuit sought an injunction to stop the dairy from producing any more wastewater, effectively shutting it down.