HAWKINS (May 26, 2009)—About 150,000 tires that were ordered removed years ago from a lot in East Texas continued to burn Tuesday afternoon.

The fire in Hawkins is giving off a toxic smoke that forced the small town's evacuation and closed down its schools.

There were no reports of injuries.

Wood County Emergency Management Coordinator Randy Selman says firefighters were digging a ditch to smother the flames.

Most residents were urged to evacuate the town of about 1,500 about 100 miles east of Dallas, is also home to Jarvis Christian College

Hawkins police Lt. A.J. Randell said the fire at Foster & Son's Scrap Tire Service was being investigated as arson.

Regulators from the Texas Commission on Environmental Quality began investigating the facility about three years ago.

When lot owners Foster & Porter, LLC failed to remove the tires, the TCEQ sent the case to the Texas Attorney General's Office.

A judge ruled against the owners in December and fined the owners $339,850.

Nearly a week ago, TCEQ again referred the case to the Attorney General because the owners had not cleaned up the site.