LIHUE, Hawaii >> The U.S. Environmental Protection Agency says a Kauai restaurant has agreed to pay a $69,000 penalty for failing to close three large-capacity cesspools years after regulations required.

The EPA said Tuesday Tahiti Nui Restaurant and Bar agreed to the settlement.

Large-capacity cesspools discharge untreated sewage from buildings serving 20 or more people per day. The EPA required existing large cesspools to close in 2005 and prohibited new ones after 2000.

The EPA says the restaurant in 2006 acknowledged operating large-capacity cesspools and hired a professional engineer to design an approved system. But the EPA says the restaurant only installed an approved septic tank wastewater system last year.

Two years ago, the agency said it wanted to fine the restaurant more than $177,000 for continuing to operate the cesspools.