FRANKLIN, Tenn. -- A company that's been identified as one source of the pollution in Franklin's Liberty Creek is speaking up, but what they say doesn’t add up.

Video: 1 Source Of Franklin Creek Pollution Discovered

When asked if they were the source of the pollution, Vice President of Egyptian Lacquer Kerry Mattox said “yeah, that’s correct.”

But, the Egyptian Lacquer Company told Dana Coleman of the Tennessee Department of Environment and Conservation Tuesday that, “Yesterday, they did a line test on their toluene line that showed there was a leak.”

The leak is coming from underground pipes that connect above-ground chemical holding tanks to the plant.

High levels of toluene and acetone have been found in the creek and are causing environmental concerns in the neighborhood, officials said.

One area resident said the smell was like urine.

A phase two environmental study was done last October that showed numerous chemicals abundant on the plant's site, but Egyptian Lacquer did nothing about it until now.

“They have been straightforward with us and are working with us cooperatively,” Coleman said.

Egyptian Lacquer is expected to start digging up their leaking pipes in the next couple of days.

New soil samples will be taken on their land.