EL PASO, Texas -- Just a few hundred feet from a Horizon City neighborhood on Kenazo Drive is a company, Border Pallets. Residents say that's the source of the smell and smoke that sometimes lingers in their neighborhood.

Ralph Padilla and his wife moved to Horizon City 12 years ago. A few years ago they began to notice a bad smell.

"When I get home I want to be able to breath fresh air. But there's smoke on the premises and it just makes you smell bad," said Padilla.

Padilla also said smoke sometimes covers the neighborhood. He said it's the incinerator at Border Pallets across the street and he submitted a complaint to the Texas Commission on Environmental Quality. TCEQ has launched an investigation.

"We keep a lot of wooden waste from the landfill," said Barbara Truax, the Vice President of Border Pallets.

Truax sells new and recycled pallets. The pallets that would end up in the landfill, the company uses to integrate into recycled pallets and the parts that are unusable go into the incinerator.

Truax said Border Pallets is in compliance with all rules and regulations by TCEQ. She explains the incinerator is supposed to emit a minimum amount of smoke. That's the smoke residents complain about.

"I want to maintain a very friendly relationship with the residents of this area. To show that and to prove that we installed a wind sock," said Truax.

When the wind sock is blowing in the direction of the neighborhood the burning process will stop. But residents said they don't believe that's happening.

"If TCEQ finds that they're within regulations then I think the laws have to change," said Padilla.

Residents also complain the neighborhood was here before the company opened. But Truax said where her company is located is zoned as industrial.

In the meantime, Padilla has requested an air monitoring station to be placed at his home so he can measure particulates. TCEQ should have a completed report next month.