The former owner of the Sparrows Point steel mill in Dundalk, Maryland and its demolition contractor have been hit with more than $3 million in penalties for pollution violations that officials say occurred during the tear-down of old mill buildings.

The Maryland Department of the Environment alleged that former owners HRE Sparrows Point LLC and Sparrows Point LLC and contractor MCM Management Corp. committed violations that included failing to control stormwater, sediment and erosion, dumping trash and industrial waste, stockpiling scrap tires and handling asbestos improperly.

The violations were discovered during inspections in 2013 and 2014, officials said.

Under a settlement reached with the state, HRE Sparrows Point, which owned the old buildings and equipment, must pay a $375,000 fine.

Sparrows Point LLC, which owned the land, and contractor MCM agreed to complete $3.375 million in environmental projects.

"These are violations that we've been raising for years," she said. "There was no stormwater control. … It was all the slag and rubble right up to the water's edge. There was nothing to prevent what happened on land from ending up in the water."

Prost said it was a good idea to combine a fine with environmental work.

"We want cleaner water, and rather than dollars going to a general fund, having supplemental environmental projects leads to cleaner water faster," she said.