Flooding in 2011 scoured the river bottom and exposed the buried pipeline, causing it to break along a stretch of river popular with anglers and boaters.
Basin Electric announced Tuesday that the tentative settlement comes in its lawsuit against the EPA over the agency's attempts to reduce haze from coal-fired power plants in Wyoming.
The complaint filed last year accused Reynolds and others of spending donations meant for cancer patients on six-figure salaries and luxury vacations between 2008 and 2012.