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DNREC SETTLES OIL SPILL, AIR VIOLATIONS
WITH DP&L INDIAN RIVER FACILITY

DNREC Secretary, Nicholas A. DiPasquale, today announced two Negotiated Settlement and Administrative Penalty Assessments with Delmarva Power & Light Company (DP&L) Indian River facility, a subsidiary of Conectiv. The settlements, totaling $450,000, are a result of violations associated with a major oil spill and air permit requirements at the company’s Indian River power generating facility.

The settlement for the oil spill (estimated at 600,000 gallons) is $350,000. The spill was discovered in February 2000 after an investigation of an oil sheen at the facility.

The facility was specifically charged with discharging pollutants into Indian River and its tributaries without a permit, undertaking an activity in a way that may cause or contribute to the discharge of a pollutant into surface or ground water, and failing to take timely steps to prevent, remove and/or respond to the release of a pollutant.

In addition to the $350,000 settlement payment, the company must continue to conduct satisfactory clean up and containment operations and bear all of the costs associated with the oil release. The company estimates that cleanup costs may eventually reach more than $1.2 million.

As part of this settlement, $100,000 will be directed by the Department to the Center for Inland Bays to support the Center’s annual Environmental Projects Grant Progam. The Center’s project grants are for improvement to the inland bays through scientific research, education and outreach activities, or for implementation of pollution control efforts consistent with the Comprehensive Conservation and Management Plan (CCMP) and the environmental priorities of the Inland Bays.

The remaining $250,000 penalty will be paid to the penalty fund adminstered by the Department that is used for environmental improvement projects as provided by law.

DP&L also agrees to reimburse DNREC in the amount of $11,559 for costs incurred in connection with its response activities and investigation of this oil spill.

DNREC continues to conduct an assessment of natural resource damages that may have occurred as a result of the release. This penalty action does not relieve DP&L of responsibility or liability for any natural resource damages or Department costs related to such damages.

DNREC also is currently engaged in discussions with the company regarding monitoring for future problems. DNREC may require DP&L to install a tank monitoring and leak detection system for its oil storage tanks.

In a separate action the Department is assessing a $100,000 penalty for air permitting violations that stem from a September 2, 1999 annual compliance inspection by the Department. During the inspection, records at the facility indicated that boiler units 1 and 2 had been placed in an on-line operation mode prior to notifiying DNREC, which violates the permit conditions under the approved construction permits.

As a result, the company was cited for violations of Delaware’s Regulations on Air Pollution Control, citing violations of “the terms and conditions of the Permits, and other applicable laws and regulations.”

DP&L will make a $100,000 settlement payment to the Department as a penalty. The payment will be placed in the penalty fund in accordance with the requirements of the law and adminstered by the Department.

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Document No. 40-01/00/06/20


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