A judge in Austin has handed down an injuction against Tire Recycling & Processing in Harlingen.
The Texas Attorney General's Office filed a complaint against the company before the 53rd State District Court in Austin back in February.
The company is accused of sidestepping permits and breaking environmental laws.
The Texas Commission of Environmental Quality (TCEQ) alleges that the company exceeding the number of tires it stores as well as the unauthrotized use of a furnace for a chemical process known as "pyrolysis."
According to the injunction, both sides agreed that the company can only keep 217,575 pounds of tires.
Under the terms of the injunction, the tires must be stored indoors.
The company had been keeping more tha 700,000 pounds of tires both outdoor and indoors.
Fumes from the plant's furnace produced smoke that caused concern by both neighbors and public safety officials.
A letter from the company says they are promising not use the furnace until the issue of their permit has been settled with the TCEQ.