DENVER — Federal prosecutors say they have settled a lawsuit blaming a Colorado power company for a 2010 wildfire that burned about 4 square miles of land.

U.S. Attorney Jason Dunn’s office announced the $1.2 million agreement on Thursday.

Dunn’s office says the San Miguel Power Association denies all liability or wrongdoing for causing the fire, which ignited May 22, 2010.

Prosecutors say two cottonwood trees fell across one of the company’s electrical power lines and started a fire that burned public and national forest land near Norwood about 70 miles north of Cortez.

A spokesman for the association did not immediately return a request for comment.

Bureau of Land Management officials say the settlement helps offset costs of fire suppression in Colorado.