Kansas has reached a $1 million settlement with a tobacco company.

The settlement calls for Grand River Enterprises to put $672,000 into escrow funds and pay the state $336,000 in penalties and reimbursement for attorney fees and expenses.

Attorney General Derek Schmidt’s office says the settlement stems from a lawsuit Kansas filed against GRE in 2008, saying the company wasn’t participating in a settlement agreement between states and tobacco companies.

Schmidt says the $336,000 in penalties will go to the state’s general fund, and the $672,000 are to help Kansans who make health-related claims as part of a 1998 settlement with tobacco companies.