The private company that has been operating Hugo's water supply system has agreed to pay $955,000 to settle $3.17 million in proposed fines levied for drinking water quality violations, the Oklahoma Department of Environmental Quality announced Wednesday. The agreement calls for Severn Trent Environmental Services Inc. to pay a $25,000 fine and an additional $930,000 to assist small Oklahoma communities, such as Hugo, with expenses related to upgrades at drinking water and wastewater treatment facilities.