A judge has blocked the state from limiting operating hours and imposing other restrictions intended to reduce air pollution from a St. Paul iron foundry.

Earlier this year, the Minnesota Pollution Control Agency ordered Northern Iron LLC to limit its daily operations to control airborne lead and particulate matter, which can damage the lungs and circulatory system when inhaled.

But in a ruling issued July 11, Ramsey County District Judge Leonardo Castro partially granted Northern Iron’s request for an injunction, preventing the state from enforcing limits on how much metal the company could melt in a day and what hours it could operate. Northern Iron says the agency’s demands would make the foundry go out of business.

The judge left intact other provisions of MPCA’s order and ordered the business and the agency to work together on a new air permit and installing new pollution control equipment. MPCA has said the business’ own modeling shows it is releasing pollutants at thousands of times the level allowed by law.

Alex Lawton, CEO of foundry owner the Lawton Standard Co., told the Star Tribune that after the ruling, he “felt relief for the folks who were laid off that wanted to come back to work.” The company announced shortly after MPCA’s order that it would have to cut 15% of its workforce but is now operating with its full staffing of about 80 employees.

MPCA wrote in an email sent out shortly after the ruling that it “respectfully disagrees” with the decision.

“We stand ready to hold the company accountable should pollution emissions exceed [air quality] standards, to protect the health company employees and nearby residents,” agency spokesperson Andrea Cournoyer wrote in a statement.

Northern Iron opened at 867 Forest St. N. in St. Paul’s Payne-Phalen neighborhood in 1906. It molds made-to-order components that other companies use in finished products. Lawton Standard bought the business in 2022.

Sidney Pisano, vice chair of the Payne-Phalen Community Council, said the court decision has left the neighborhood feeling “disregarded.”

“It feels like we don’t matter, and I think that’s a sentiment a lot of East Siders have felt for a long time,” she said.

The situation has played out differently than the regulation of another urban iron casting company. Smith Foundry spurred complaints of bad smells and air pollution for years from neighbors in Minneapolis’ East Phillips neighborhood. The EPA took the lead on an investigation there, after a surprise inspection last year, and got the foundry to agree to shut down its furnace and casting operations in a settlement. Some in the area were frustrated it took action by EPA, not MPCA, to address the issues.

In the Northern Iron case, MPCA has led the enforcement, including a $41,500 fine imposed on the foundry last year for changing its pollution controls without reporting it to the state. Lawton said the Smith Foundry case was hanging over the regulation of his own business and suggested it had encouraged regulators to take a stronger hand.

“I think Smith and certain other factors like that seemed to be omnipresent,” he said.

Since the fine last year, MPCA and the foundry have been discussing how to reduce its emissions. After one round of modeling showed that the particulate matter and lead released were thousands of times higher than federal rules allow, Northern Iron then came up with new calculations to show how the emissions would change if they altered their hours or installed new equipment.

The particulate pollution would still be higher than allowed, and the calculations for lead “seemingly defy the conservation of mass and likely cause an underestimate of lead emissions at some sources,” according to MPCA’s administrative order.

The company contends that it’s not polluting because monitors stationed around the foundry show the air doesn’t exceed state limits on contaminants. It is still planning to install two air filters and make other improvements at the building, a project that will cost around $2 million, Lawton said.

But Cournoyer said that the foundry’s current permit requires it to use modeling to show it is meeting air quality standards.

The foundry and the state agency will next be in court Aug. 22, when MPCA will argue to dismiss the case. Northern Iron said it plans to submit a new air permit application by August.

“I feel glad the MPCA is keeping the pressure on,” Pisano said.