(CNN) A fire at a Jim Beam warehouse in Versailles, Kentucky, was in its third day of burning on Thursday, as Kentucky officials began assessing the environmental impact the leaking bourbon was having on nearby waterways.

The warehouse caught fire Tuesday night and burned through Wednesday morning before a containment system was set up at the warehouse, John Mura, a spokesman for the Kentucky Energy and Environment Cabinet, said. He said bourbon barrels were purposely being allowed to burn off on Thursday.

The move is meant to help prevent more runoff from polluting waterways and nearby sources of drinking water, Mura said.

"We're starting to see fish kill, and we think that it's very likely to get worse," he said.

Mura added that aeration devices are being installed in Glenns Creek and the Kentucky River to reduce the number of fish dying, and that his agency was taking daily water samples to monitor oxygen levels. Officials are also continuing to monitor the smoke in case the fire reignites.

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