(AGAlert) - Landowner John Duarte, who had been accused of federal wetlands violations after plowing a Tehama County wheat field, settled the government's Clean Water Act case against him Tuesday, just before the penalty phase of his trial was to begin.

Duarte had been accused of significant Clean Water Act violations on land the Stanislaus County nurseryman owns in Tehama County. A judge previously sided with the government on that claim.

Under the agreement, Duarte will admit no liability; pay a $330,000 fine; buy $770,000 in vernal pool mitigation credits; and do more work on the Tehama County property, according to a statement from the Pacific Legal Foundation, which is representing Duarte.

"This has been a difficult decision for me, my family and the entire company, and we have come to it reluctantly," Duarte said in the statement. "But given the risks posed by further trial on the government's request for up to $45 million in penalties, and the catastrophic impact that any significant fraction of that would have on our business, our hundreds of employees, our customers and suppliers, and all the members of my family, this was the best action I could take to protect those for whom I am responsible."

At a news conference in Sacramento Monday, Duarte warned, "If this can happen to us, on this set of facts, you can almost take the limits off your imagination as to what can happen to any farming company in America."

Several Duarte Nursery employees also spoke, discussing what losing their jobs would mean to them.