ST. PAUL — Minnesota officials are bracing for costly legal challenges over PolyMet Mining Corp. regulatory decisions and are finalizing an agreement with a Washington-based law firm to handle probable lawsuits.

Minnesota Management and Budget Commissioner Myron Frans told The Associated Press on Wednesday the contract should be signed early next month with the Crowell and Moring law firm. The firm will draw on a $750,000 legislative appropriation but the eventual costs could top $1 million.

Frans says the state could face lawsuits no matter which way the permit decision goes next year on the proposed copper-and-nickel mine for northeastern Minnesota. He says outside assistance is imperative given complexities involved with the controversial project.

The law firm has a mining and natural resources section, and its clients have included the National Mining Association.