TITLE 7

Conservation

Natural Resources

CHAPTER 74A. The Jeffrey Davis Aboveground Storage Tank Act

§ 7401A. Purpose.

The General Assembly finds and declares that the containment of petrochemicals, petroleum, petroleum products, hazardous chemicals, hazardous substances, hazardous waste and similar regulated substances in aboveground storage tanks is emerging as a cause of soil, air, surface water and groundwater contamination in the State; that the State’s surface water and groundwater resources are vital to the population and economy of the State; that millions of gallons of petroleum and hazardous substances are stored in aboveground storage tanks; that releases of stored, regulated substances are occurring in a significant number of these tanks due to corrosion, structural defect, inadequate maintenance and repair, or improper installation; and that it is therefore necessary to provide for more stringent control of the installation, operation, retrofitting, maintenance, repair, abandonment and/or removal of aboveground storage tanks to prevent releases, and, where releases occur, to detect and remediate them at the earliest possible stage, thus minimizing further degradation of soil, air, surface water and groundwater and promoting public safety. The Department is hereby granted the authority to and shall promulgate standards and regulations to ensure the protection of human health and the environment and to provide for best management practices for aboveground storage tanks.

73 Del. Laws, c. 366, §  1

§ 7402A. Definitions.

The following words, terms and phrases, when used in this chapter, have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

(1) “Aboveground storage tank” means a single aboveground containment vessel having a capacity of greater than 250 gallons and currently or previously having contained regulated substances on or after January 1, 1992. The term includes all ancillary aboveground pipes and dispensing systems up to the first point of isolation and all ancillary underground pipes and dispensing systems. Within this definition, the word “vessel” includes any container that can be partially visually inspected from the exterior in an underground area. The term “aboveground storage tank” does not include any of the following:

a. Septic tanks;

b. Pipeline facilities (including gathering lines) regulated under the Hazardous Liquid Pipeline Safety Act of 1979, as amended [49 U.S.C. § 60101 et seq.];

c. Surface impoundments, pits, ponds or lagoons;

d. Liquid traps or associated gathering lines directly related to oil or gas production or gathering operations;

e. Flow-through process tanks that contain a regulated substance or substances and that form an integral part of a production process through which there is a steady, variable, recurring or intermittent flow of material during the operation of the process. Flow-through process tanks include, but are not limited to, seal tanks, surge tanks, bleed tanks, check and delay tanks, phase separator tanks or tanks in which physical or chemical change of a material is accomplished. A flow-through process tank does not include:

1. A tank that is used for the storage of material before its introduction into a production process;

2. A tank that is used for storage of products or by-products from the production process; or

3. A tank that is used only to recirculate materials;

f. Transformers, regulators and breakers used for the sole purpose of electrical power distribution and transmission; or

g. Containment vessels operated as part of a publicly owned treatment works as defined pursuant to § 6002 of this title and regulated pursuant to § 6003 of this title or used for the storage and conveyance of wastewater to a treatment plant regulated in accordance with the requirements of the Clean Water Act [33 U.S.C. § 1251 et seq.].

(2) “Department” means the Department of Natural Resources and Environmental Control.

(3) “Existing tank” means a tank for which substantial physical installation began prior to July 8, 2002. The term “substantial physical installation” includes, but is not limited to, a permit or contract for the installation.

(4) “Facility” means a location or part thereof containing or having contained 1 or more aboveground storage tanks.

(5) “Fiduciary” means:

a. A person acting for the benefit of another party as a bona fide:

1. Trustee;

2. Executor;

3. Administrator;

4. Custodian;

5. Guardian of estates or guardian ad litem;

6. Receiver;

7. Conservator;

8. Committee of estates of incapacitated persons;

9. Personal representative;

10. Trustee (including a successor to a trustee) under an indenture agreement, trust agreement, lease, or similar financing agreement, for debt securities, certificates of interest or certificates of participation in debt securities, or other forms of indebtedness as to which the trustee is not, in the capacity of trustee, the lender; or

11. Representative in any other capacity that the Secretary, after providing public notice, determines to be similar to the capacities described in paragraphs (5)a.1. through 10. of this section above; and

b. “Fiduciary” does not mean:

1. A person that is acting as a fiduciary with respect to a trust or other fiduciary estate that was organized for the primary purpose of, or is engaged in, actively carrying on a trade or business for profit, unless the trust or other fiduciary estate was created as part of, or to facilitate, 1 or more estate plans or because of the incapacity of a natural person; or

2. A person that acquires ownership or control of a facility with the objective purpose of avoiding liability of the person or of any other person.

(6) “Fiduciary capacity” means the capacity of a person in holding title to a facility, or otherwise having control of or an interest in the facility, pursuant to the exercise of the responsibilities of the person as a fiduciary.

(7) “Foreclosure”; “foreclose” mean, respectively:

a. Acquiring, and to acquire, a facility through:

1. Purchase at sale under a judgment or decree, power of sale, or nonjudicial foreclosure sale;

2. A deed in lieu of foreclosure, or similar conveyance from a trustee; or

3. Repossession,

b. If the facility was security for an extension of credit previously contracted:

1. Conveyance pursuant to an extension of credit previously contracted, including the termination of a lease agreement; or

2. Any other formal or informal manner by which the person acquires, for subsequent disposition, title to or possession of a facility in order to protect the security interest of the person.

(8) “Heating fuel” means a type of fuel oil that is 1 of 7 technical grades. These grades are: No. 1, No. 2, No 4-light, No. 4-heavy, No. 5-light, No. 5-heavy and No. 6 residual.

(9) “Imminent threat of a release” means the potential for a release which requires action to prevent or mitigate damage to the environment or endangerment to public health or welfare which may result from such a release.

(10) “Indicated release” means there are signs that an aboveground storage tank, or the secondary containment system are failing or could potentially fail to contain a regulated substance. Indicated releases are releases that are not observable and are not directly attributable to another source.

(11) “In-service tank” means an aboveground storage tank that:

a. Is being actively maintained or operated;

b. Contains a regulated substance or has a regulated substance regularly added to or withdrawn from the tank; or

c. Is emptied solely for the purpose of cleaning, routine maintenance or a change in product, for a time period not to exceed 180 days.

(12) “Lender” means:

a. An insured depository institution (as defined in the Federal Deposit Insurance Act at 12 U.S.C. § 1813(c)(2)) or an insured credit union (as defined in the Federal Credit Union Act at 12 U.S.C. § 1752(7)) authorized by law to do business in this State;

b. A bank or association chartered under the Farm Credit Act of 1971 (12 U.S.C. § 2001 et seq., as amended) authorized by law to do business in this State;

c. A leasing or trust company that is an affiliate of an insured depository institution authorized to do business in this State;

d. Any person (including a successor or assignee of any such person) that makes a bona fide extension of credit to or takes or acquires a security interest from a nonaffiliated person;

e. Any legal entity authorized to buy or sell loans or interests in loans in a bona fide manner in this State;

f. A person that insures or guarantees against a default in the repayment of an extension of credit, or acts as a surety with respect to an extension of credit, to a nonaffiliated person; and

g. A person that provides title insurance and that acquires a facility as a result of assignment or conveyance in the course of underwriting claims and claims settlement.

(13) “New aboveground storage tank” means a tank for which substantial physical installation began on or after July 8, 2002.

(14) “Operator” means a person operating a facility or who has operated a facility, including, but not limited to, by lease, contract or other form of authorization agreement

(15) “Orphan tank” means:

a. A tank for which the last person to operate the tank cannot be identified; or

b. A tank on property as to which the property owner can establish that the owner did not obtain and could not have obtained, through the exercise of reasonable and due diligence, knowledge of the existence of the tank prior to purchase of the property.

(16) “Out-of-service” means an aboveground storage tank that is:

a. Designated as out-of-service by the owner or operator; or

b. An empty tank except as otherwise described in paragraph (11)c. of this section.

(17) “Owner” means a person:

a. Who has or has had a legal interest in a facility or aboveground storage tank; or

b. Who has or has had an equitable interest in a facility or aboveground storage tank.

c. “Owner” does not mean any person who, without participating in the management of a facility or aboveground storage tank, holds indicia of ownership in a facility or aboveground storage tank primarily to protect the person’s security interest or is a fiduciary which has a legal title to or manages any property for purposes of administering an estate or trust of which such property is part. In the case of foreclosure the person shall not be deemed the owner of the aboveground storage tank provided that the person provides notification to the Department within 30 days of the initiation of foreclosure proceedings for any property containing an aboveground storage tank, either in-service or out-of-service utilizing a form provided by the Department.

d. Participation in management.

1. For purposes of this paragraph (17), the term “participate in management:”

A. Means actually participating in the management or operational affairs of an aboveground storage tank or facility; and

B. Does not include merely having the capacity to influence, or the unexercised right to control, an aboveground storage tank or facility operations.

2. A person that is a lender or a fiduciary and that holds indicia of ownership primarily to protect a security interest in an aboveground storage tank or facility shall be considered to participate in management only if, while the borrower is still in possession of the aboveground storage tank or facility encumbered by the security interest, the person:

A. Exercises decision making control over the environmental compliance related to the aboveground storage tank or facility, such that the person has undertaken responsibility for the regulated substance handling or disposal practices related to the aboveground storage tank or facility; or

B. Exercises control at a level comparable to that of a manager of the aboveground storage tank or facility, such that the person has assumed or manifested responsibility for the overall management of the aboveground storage tank or facility encompassing day-to-day decision making with respect to environmental compliance, or over all or substantially all of the operational functions (as distinguished from financial or administrative functions) of the aboveground storage tank or facility other than the function of environmental compliance.

3. The term “participate in management” does not include performing an act or failing to act prior to the time at which a security interest is created in an aboveground storage tank or facility; and

4. The term “participate in management” does not include:

A. Holding a security interest or abandoning or releasing a security interest;

B. Including in the terms of an extension of credit, or in a contract or security agreement relating to the extension, a covenant, warranty, or other term or condition that relates to environmental compliance;

C. Monitoring or enforcing the terms and conditions of the extension of credit or security interest;

D. Monitoring or undertaking 1 or more inspections of the aboveground storage tank or facility;

E. Requiring a corrective action or other lawful means of addressing the release or threatened release of a hazardous substance in connection with the aboveground storage tank or facility prior to, during, or on the expiration of the term of the extension of credit;

F. Providing financial or other advice or counseling in an effort to mitigate, prevent, or cure default or diminution in the value of the aboveground storage tank or facility;

G. Restructuring, renegotiating, or otherwise agreeing to alter the terms and conditions of the extension of credit or security interest, exercising forbearance;

H. Exercising other remedies that may be available under applicable law for the breach of a term or condition of the extension of credit or security agreement; or

I. Conducting a corrective action, if the actions do not rise to the level of participating in management (within the meaning of paragraphs (17)d.1. and d.2. of this section).

5. A person who is a lender that did not otherwise participate in the management of a facility as provided in paragraph (17)d. of this section shall not be considered to have participated in management, notwithstanding that the person:

A. Forecloses on the property; and

B. After foreclosure, sells, re-leases (in the case of a lease finance transaction), or liquidates the property, maintains business activities, winds up operations, or undertakes corrective actions of this chapter.

e. A fiduciary as described in this section shall not be liable in its personal capacity under this chapter for:

1. Undertaking or directing another person to undertake any other lawful means of addressing a hazardous substance in connection with the facility;

2. Terminating the fiduciary relationship;

3. Including in the terms of the fiduciary agreement a covenant, warranty, or other term or condition that relates to compliance with an environmental law, or monitoring, modifying or enforcing the term or condition;

4. Monitoring or undertaking 1 or more inspections of the facility;

5. Providing financial or other advice or counseling to other parties to the fiduciary relationship, including the settlor or beneficiary;

6. Restructuring, renegotiating, or otherwise altering the terms and conditions of the fiduciary relationship;

7. Administering, as a fiduciary, a facility that was contaminated before the fiduciary relationship began; or

8. Declining to take any of the actions described in paragraphs (17)e.2.-7. of this section.

f. The liability of a fiduciary under any provision of this chapter for the release or threatened release of a regulated substance at, from, or in connection with a facility held in a fiduciary capacity shall not exceed the assets held in the fiduciary capacity; provided, however, that this limitation shall not apply to the extent that a person is liable under this chapter independently of the person’s ownership of a facility as a fiduciary or actions taken in a fiduciary capacity.

g. The exclusion from liability contained in paragraph (17)c. of this section does not limit liability pertaining to the release or threatened release of a regulated substance if negligence of a fiduciary causes or contributes to the release or threatened release.

h. Nothing contained in paragraph (17)c. of this section:

1. Affects the rights or immunities or other defenses that are available under this chapter or other law that is applicable to a person subject to this paragraph; or

2. Creates any liability for a person or a private right of action against a fiduciary or any other person.

i. Nothing in paragraph (17)c. of this section applies to a person if the person:

1. Acts in a capacity other than that of a fiduciary or in a beneficiary capacity, and in that capacity, directly or indirectly benefits from a trust or fiduciary relationship; or

2. Is a beneficiary and a fiduciary with respect to the same fiduciary estate and, as a fiduciary, receives benefits that exceed customary or reasonable compensation, and incidental benefits, permitted under other applicable law.

j. Paragraph (17)c. of this section does not preclude a claim under this chapter against:

1. The assets of the estate or trust administered by the fiduciary; or

2. Nonemployee agent or independent contractor retained by a fiduciary.

(18) “Person” means an entity, individual, trust, firm, joint stock company, federal agency, corporation (including a government corporation), partnership, company, association, state, municipality, commission, political subdivision of a state, or any interstate body.

(19) “Release” means the spilling, leaking, discharging, leaching or disposing of a regulated substance into groundwater, surface water, soil or air that is not permitted by law, regulation or permit.

(20) “Retrofit” means to modify an aboveground storage tank to meet standards contained in regulations promulgated under this chapter.

(21) “Regulated substance” means a liquid or gas that:

a. Contains 1 percent or more of a hazardous substance as defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 [42 U.S.C. § 9601(14)] and any amendments thereto;

b. Contains 0.1 percent or more of a carcinogen as defined by EPA in the Integrated Risk Information System (IRIS) April 2002 and as updated;

c. Is a petroleum product, including crude oil or any fraction thereof, which is liquid at standard conditions of temperature and pressure (60 degrees Fahrenheit and 14.7 pounds per square inch absolute); or

d. Is a substance determined by the Secretary through regulation to present a risk to public health or welfare or the environment if released into the environment.

(22) “Security interest” means an interest in an AST or AST system or in a facility or property on which an AST or AST system is located, created or established for the purpose of securing a loan or other obligation. Security interests include but are not limited to mortgages, deeds of trusts, liens, and title pursuant to lease financing transactions. Security interests may also arise from transactions such as sale and leasebacks, conditional sales, installment sales, trust receipt transactions, certain, certain assignments, factoring agreements, accounts receivable financing arrangements, and assignments, if the transaction creates or establishes an interest in an AST or AST system or in the facility or property on which the AST or AST system is located, for the purpose of securing a loan or other obligation.

(23) “State” means the State of Delaware.

73 Del. Laws, c. 366, §  179 Del. Laws, c. 439, §§  1-480 Del. Laws, c. 306, § 181 Del. Laws, c. 79, § 3

§ 7403A. Referenced standards.

(a) The Department shall study and consider the recommendations and standard procedures of the following organizations in developing the regulations required by this chapter:

(1) The National Fire Protection Association (NFPA);

(2) The American Petroleum Institute (API);

(3) The National Association of Corrosion Engineers (NACE);

(4) The Underwriters Laboratories (UL);

(5) The American Society for Testing and Materials (ASTM);

(6) The Petroleum Equipment Institute (PEI);

(7) The Steel Tank Institute (STI); and

(8) Any other organization that has similar standards and has been determined by the Secretary to be relevant and appropriate.

(b) Owners and installers are strictly liable for any failure to install any new aboveground storage tank in accordance with the standards of this chapter and regulations promulgated pursuant to this chapter. Aboveground storage tanks shall be installed in accordance with the standards of this chapter and regulations promulgated by the Department.

73 Del. Laws, c. 366, §  1

§ 7404A. Exemptions.

(a) The following classes of aboveground storage tanks are exempt from this chapter, with the exception of the application of §§ 7402A, 7406A, and 7410A of this title:

(1) Aboveground storage tanks of 1,100 gallons or less in capacity located on a farm and used solely to facilitate the production of crops, livestock or livestock products on the farm;

(2) Aboveground storage tanks used solely to store propane gas;

(3) Aboveground storage tanks of 1,100 gallons or less in capacity used solely to store heating fuel for consumptive use on the premises where stored;

(4) Aboveground storage tanks of 1,100 gallons or less in capacity used solely to store motor fuel or motor oil for noncommercial purposes;

(5) Aboveground storage tanks installed on a temporary basis, not to exceed 6 months;

(6) Aboveground storage tanks excluded by regulations promulgated pursuant to this chapter;

(7) Aboveground storage tanks regulated pursuant to Chapter 74B of this title; and

(8) Aboveground storage tanks and associated equipment regulated as a part of a process regulated pursuant to Chapter 77 of this title.

(b) All aboveground storage tanks greater than 250 gallons and less than 12,499 gallons are exempt from this chapter, with the exception of §§ 7402A, 7405A, 7406A, 7410A and 7415A of this title.

(c) All aboveground storage tanks used solely to store diesel, kerosene or heating fuel with a capacity of less than 20,000 gallons are exempt from this chapter, with the exception of §§ 7402A, 7405A, 7406A, and 7410A of this title.

(d) All aboveground storage tanks used solely to store diesel, kerosene or heating fuel with a capacity of greater than 19,999 gallons and less than 40,000 gallons are exempt from this chapter, with the exception of §§ 7402A, 7405A, 7406A, 7410A and 7415A of this title.

73 Del. Laws, c. 366, §  174 Del. Laws, c. 406, §§  1-478 Del. Laws, c. 127, §  8

§ 7405A. Registration by owner.

The owner shall register all aboveground storage tanks with the Department on forms provided by the Department. Such registration must specify the date of tank installation, location, type of construction, type of substance to be stored, the size of the tank, the material of construction and the owner and operator’s name, at a minimum. The owner must register on the following schedule:

(1) For a new aboveground storage tank, the form must be received by the Department at least 60 days prior to installation.

(2) For an existing aboveground storage tank, whether or not in service or out of service, the form must be received by the Department within 60 days of July 8, 2002.

73 Del. Laws, c. 366, §  1

§ 7406A. Release of substances prohibited; correction of substance release; Department intervention.

(a) All persons, including an owner and an operator, shall not cause or contribute to a release from an aboveground storage tank.

(b) All persons, including an owner and an operator, shall report to the Department a release from an aboveground storage tank in excess of the reportable quantities specified in the regulations promulgated pursuant § 6028 of this title and the Delaware Regulations Governing the Reporting of a Discharge of a Pollutant or an Air Contaminant, as amended.

(c) The owner and operator shall as soon as possible take measures for the prompt control, containment and removal of a released regulated substance to the satisfaction of the Department to achieve the purposes of this chapter. Such measures shall include, but not be limited to, soil removal, soil vapor extraction, groundwater extraction, pump and treat or bioremediation as approved by the Department.

(d) The Department may take measures for the prompt control, containment and removal of a released, regulated substance when it determines that the owner or operator is not responding promptly or appropriately. However, all liability for costs incurred by the Department, including, but not limited to, remediation costs, equipment costs, supply costs, legal costs and administrative oversight costs, remain with the owner and operator. Owners and operators shall reimburse all such costs to the Department within 90 days of receiving written notice of any amount due.

(e) Consistent with the provisions of Chapter 60 of this title, the Department may take measures for the prompt control, containment and removal, or to otherwise address an indicated release or an imminent threat of a release of a regulated substance from an aboveground storage tank when it determines that the owner or operator is not responding promptly or appropriately in accordance with the regulations promulgated pursuant to this chapter. However, all liability incurred by the Department for remediation costs, equipment costs, supply costs, legal costs and administrative oversight costs, remain with the owner and operator. Owners and operators shall reimburse all such costs to the Department within 90 days of receiving written notice of any amount due.

(f) The Department may file an action in Superior Court against any responsible party for cost recovery and for reimbursement of funds expended, for corrective action, in control, containment, removal and remediation of any release, indicated release or imminent threat situation, and all activities associated with preventing releases from aboveground storage tanks. Any cost recovery and reimbursement collected by the Department for these activities shall be credited to and expended by the Department for control of aboveground storage tank releases and in support of the purposes of this chapter. A responsible party shall have an affirmative defense to a cost recovery action under this section by showing that the responsible party was responding promptly and effectively with respect to the control, containment, and removal of released regulated substances at the time that the Department assumed control of the release, indication of a release, or imminent threat situation.

73 Del. Laws, c. 366, §  180 Del. Laws, c. 306, § 1

§ 7407A. Tank performance standards; release detection, prevention and correction regulations.

(a) The Department, after notice and opportunity for public comment and within 24 months after July 8, 2002, shall promulgate tank performance standards, corrective action regulations and other appropriate regulations necessary and desirable to effectuate the purposes of this chapter.

(b) The Department’s standards and regulations must, at a minimum, include the following provisions:

(1) A requirement that a product inventory system or other similar control system, adequate to identify releases from aboveground storage tanks, be maintained;

(2) Procedures to follow when the product inventory system records or other similar control system records indicate an abnormal loss or gain of a regulated substance which is not explainable by spillage, temperature variations or other known causes;

(3) A requirement that appropriate corrective action be taken in response to a release from an aboveground storage tank as may be necessary to protect human health and the environment;

(4) A requirement to maintain records documenting actions taken in accordance with paragraphs (b)(1) through (3) of this section;

(5) A requirement for an enforcement program;

(6) A requirement for standards that will ensure against any future release from an aboveground storage tank being taken out of service or subsequently reintroduced into service; and

(7) A requirement for appropriate inspection, maintenance, monitoring and repair of aboveground storage tanks and associated equipment. The inspection and monitoring requirements shall require, at a minimum, an inspection report whenever a tank is emptied for maintenance or repair or removed from service. Such reports shall include, but not be limited to, the following information:

a. The structural and material thickness of the tanks;

b. The repairs needed;

c. A completion report for the repairs; and

d. For newly constructed aboveground storage tanks, a report including the welding procedures, welding certification reports, and any nondestructive testing performed on the aboveground storage tank prior to placing the tank into service.

All reports shall be submitted to the Department and shall be kept on file by the owner for the life of the aboveground storage tank. Should any aboveground storage tank have a change of ownership, all reports shall be provided to and maintained by all future owners.

73 Del. Laws, c. 366, §  1

§ 7408A. Inspection and monitoring.

(a) For the purpose of developing or assisting in the development of a standard or regulation or of enforcement of this chapter, an owner and operator shall, upon the request of an officer or employee of the State duly designated by the Secretary of the Department, furnish information relating to the tank and/or its contents and shall permit the designated officer or employee at all reasonable times to have access to and to copy all records relating to the tank and/or its contents and to conduct monitoring or require remediation activities, pursuant to § 7406A of this title, which the designated officer or employee deems necessary. For the purpose of developing or assisting in the development of a standard or regulation or of enforcement of this chapter, the designated officer or employee is authorized to:

(1) Enter at reasonable times the facility or other place where an aboveground storage tank or its records are located. The owner and/or operators shall permit unannounced inspections of tanks pursuant to this subsection; and

(2) Inspect and obtain samples from any person of regulated substances and to conduct monitoring of tanks, contents or surrounding soils, water and/or air. An inspection must be commenced and completed with reasonable promptness.

(b) In providing data under this chapter, a person required to provide data may:

(1) Designate the data which the owner or operator of the facility or tank believes constitutes trade secrets and commercial or financial information which the owner or operator believes is of a privileged or confidential nature, and the reasons for such belief; and

(2) Submit the designated secret, privileged or confidential data separately from other data submitted under this chapter, provided that the secret, privileged or confidential data qualifies to be withheld as a nonpublic record in accordance with provisions and regulations of Chapter 100 of Title 29.

73 Del. Laws, c. 366, §  1

§ 7409A. Financial responsibility.

The Department shall promulgate regulations containing requirements for maintaining evidence of financial responsibility as deemed necessary and desirable for taking reasonable corrective action for property damage and bodily injury caused by accidental release arising from operating an aboveground storage tank. Evidence of financial responsibility may include, but not be limited to, insurance, guarantee, surety bond, letter of credit, proof of assets, or qualification as a self-insurer. In promulgating regulations under this section, the Department is authorized to specify policy or other contractual terms, conditions or defenses which are necessary or are unacceptable in establishing evidence of financial responsibility in order to effectuate the purposes of this section.

73 Del. Laws, c. 366, §  1

§ 7410A. Enforcement.

This chapter is subject to enforcement pursuant to Chapter 60 and § 7906 of this title.

73 Del. Laws, c. 366, §  1

§ 7411A. Appeals.

(a) A person whose interest is substantially affected by an action of the Department pursuant to a provision of this chapter or the regulations promulgated under this chapter may appeal to the Environmental Appeals Board in accordance with § 6008 of this title.

(b) Appeals from a decision of the Environmental Appeals Board may be taken in accordance with § 6009 of this title.

73 Del. Laws, c. 366, §  1

§ 7412A. Variances.

Permanent variances, temporary variances and temporary emergency variances may be granted by the Department from any regulation adopted pursuant to this chapter, in accordance with §§ 6011 and 6012 of this title.

73 Del. Laws, c. 366, §  1

§ 7413A. Aboveground storage tank registration fee.

(a) Owners and operators must pay to the Department an annual per-tank registration fee. The fee is effective on July 1, 2002, with 6 months of fees due by October 1, 2002, and on or before February 1 of each calendar year thereafter. The fee is based on the schedule below. A registration fee not received by the Department by October 1, 2002, or by February 1 thereafter is subject to a late charge of 10% of the total fee.

Registration Fee Schedule
Tank Size Yearly Fee
12,499 — 39,999 gallons $300
40,000 gallons and greater $750

These fees shall only be changed or amended with the prior approval of the General Assembly.

(b) The aboveground storage tank registration fee established in subsection (a) of this section must be used by the Department solely for the purpose of administering Chapters 74, 74A, and 74B of this title as well as the regulations of the Department promulgated under said chapters.

(c) The aboveground storage tank registration fee established in subsection (a) of this section must be credited to a dedicated administration fund established in the accounts of the State Treasurer. Money remaining in the fund at the end of the fiscal year does not revert to the General Fund, but remains in the dedicated administration fund. The fund must be maintained in a separate interest-bearing account and be administered by the Department. An accounting of moneys received and disbursed by the fund must be provided annually to the Governor and the General Assembly.

73 Del. Laws, c. 366, §  178 Del. Laws, c. 127, §  9

§ 7414A. Aboveground storage tank construction permit fee.

(a) The Department shall assess a 1-time construction permit fee based on the schedule below for an aboveground storage tank constructed after the effective date of the regulations promulgated pursuant to § 7407A of this chapter.

Construction Fee Schedule
Tank Size Construction Permit Fee
12,499 — 39,999 gallons $1,500
40,000 gallons and greater $3,750

These fees shall only be changed or amended with the prior approval of the General Assembly.

(b) Any person required to pay a fee under Chapter 66 of Title 16 to the State Fire Marshal related to an aboveground storage tank shall receive a 10% reduction in the construction permit fee.

(c) The construction permit fee established in subsection (a) of this section must be used by the Department solely for the purpose of administering this chapter and the regulations of the Department promulgated under this chapter.

(d) The construction permit fee established in subsection (a) of this section must be credited to a dedicated administration fund established in the accounts of the State Treasurer. Money remaining in the fund at the end of the fiscal year does not revert to the General Fund, but remains in the dedicated administration fund. The fund must be maintained in a separate interest-bearing account and be administered by the Department. An accounting of moneys received and disbursed by the fund must be provided annually to the Governor and the General Assembly.

73 Del. Laws, c. 366, §  1

§ 7415A. Required signage.

Every aboveground storage tank shall have prominently posted thereupon the contents of the tank and the hazards, if any, associated with the contents. If the tank is empty the signage shall so state. For the purposes of this section “prominently posted” and the requirements for labeling shall be specified in the regulations promulgated pursuant to this chapter.

73 Del. Laws, c. 366, §  1

§ 7416A. Environmental liens; recovery of expenditures [For application of this section, see 79 Del. Laws, c. 69, § 5].

(a) Pursuant to the provisions of this section, all reasonable costs expended by the State related to investigating a release or suspected release of a regulated substance from an aboveground storage tank including, but not limited to, performing inspections, tests and repairs, release detection monitoring, site assessments, removal of regulated substances, removal or closure in place of any part of the aboveground storage tank, actions necessary to abate an emergency situation such as installing water treatment, supplying water, installing wells, and removing contaminated media, and abating hazardous vapors, as well as other necessary corrective actions for which a person is liable under this chapter or the regulations promulgated pursuant thereto shall constitute a lien in favor of the State upon the real property where such activities take place and which belongs to such liable person.

(b) A lien created under this section constitutes record notice and attaches to and is perfected against real property upon which funds have been expended by the State pursuant to § 7406A of this title and which is owned by a person liable under this chapter when:

(1) No less that 30 days prior to the effective date of the lien, a notice of lien is sent by the Secretary, by means of certified or registered mail, to the last known address of all record owners of the property and to all persons holding liens or security interests of record. The notice of lien shall state the amount of and basis for the lien;

(2) No less than 30 days prior to the effective date of the lien, a notice of lien is filed by the Secretary with the office of the recorder of deeds in the county in which the property is located; and

(3) Costs associated with corrective action at the property as described in subsection (a) of this section are incurred by the State.

(c) A person whose interest is substantially affected by any action of the Secretary taken pursuant to subsection (a) of this section may contest the imposition of a lien to the Environmental Appeals Board in accordance with § 6008 of this title. This section shall not preclude any equitable claims by an aggrieved person in the Court of Chancery to contest the imposition of a lien, including actions to quiet title. In any action seeking to contest or enforce a lien, the burden of establishing entitlement to such lien shall be consistent with the burden of proof applicable in an action brought by the Secretary pursuant to this chapter.

(d) A lien created under this section has priority over all other liens and encumbrances perfected after the date that the lien recorded pursuant to this section is perfected, except for liens and encumbrances which relate back to before the perfection of the lien recorded pursuant to this section.

(e) A lien created under this section continues until fully satisfied or otherwise discharged in accordance with law. The Secretary shall, on written request, make available the documentation upon which such lien is based within 10 days of such request.

(f) Upon satisfaction of the liability secured by a lien created under this section, the Secretary shall file a notice of release of lien with the office of recorder of deeds in the county in which the property is located.

(g) No lien or obligation created under this chapter may be limited or discharged in a bankruptcy proceeding. All obligations imposed by this chapter shall constitute regulatory obligations imposed by the State.

(h) If the Secretary determines that the funds projected to be available in order to satisfy the lien provided pursuant to subsection (a) of this section will be insufficient to permit the State to recover fully its costs, the Secretary may file a petition in the Court of Chancery seeking to impose an additional lien or liens upon other real property in this State owned by the same liable person or persons as the property where the costs are incurred.

(1) A petition filed by the Secretary pursuant to this subsection shall describe with particularity the real property to which the lien will attach.

(2) Upon filing of a petition by the Secretary, the Court shall schedule a hearing to determine whether the petition should be granted. Notice of the hearing shall be provided to the Secretary, the record owner or owners of the real property which is the subject of the petition, and any person holding a lien or a perfected security interest in the property.

(i) A person whose interest is substantially affected by any action of the Secretary taken pursuant to this section, while contesting the imposition of such environmental lien in accordance with the procedures set forth herein, shall have the right to discharge said lien upon payment into the Court of Chancery or entry of security as follows:

(1) Cash deposit. — Any environmental lien filed hereunder shall, upon petition of the owner or any party in interest, be discharged as a lien against the property whenever a sum equal to the amount of the claim shall have been deposited with the Court in said proceedings for application to the payment of the amount finally determined to be due. Said petition shall include an affidavit by the owner or party in interest setting forth which parts of the claim filed hereunder are disputed and which parts are not disputed. The nondisputed part of the claim shall be paid to the Secretary before the lien against the property is discharged. If it is finally determined by the Court that the disputed portion of the claim has been grossly overstated by the affiant, the Court may, in its discretion, award damages to the Secretary against the affiant in an amount up to twice the figure stated by the affiant to be disputed.

(2) Refund of excess. — Any excess of funds paid into Court as aforesaid, over the amount of the claim or claims determined and paid therefrom, shall be refunded to the owner or party depositing same upon application.

(3) Security in lieu of cash. — In lieu of the deposit of any such sum or sums in cash, approved security may be entered in such proceedings in an amount which the Court shall approve, which, however, shall in no event be less than the full amount of such required deposit; and the entry of such security shall entitle the owner to have such liens discharged to the same effect as though the required sums have been deposited in Court as aforesaid.

(4) Authority of Court. — The Court, upon petition filed by any party, and after notice and hearing, may upon cause shown:

a. Require the increase or decrease of any deposit or security;

b. Strike off security improperly filed;

c. Permit the substitution of security and enter an exoneration of security already given.

(j) The provisions of this section shall not apply to those classes of aboveground storage tanks set forth in § 7404A(a)(1), (3) and (4) of this title.

79 Del. Laws, c. 69, §  379 Del. Laws, c. 439, §  5

§ 7417A. Short title.

This chapter may be referred to as the “Jeffrey Davis Act,” in memory of Jeffrey Davis.

73 Del. Laws, c. 366, §  179 Del. Laws, c. 69, §  3

§ 7418A. Use of Hazardous Substance Cleanup Act funds.

The Department may use funding from the Hazardous Substance Cleanup Fund, as established by § 9113 of this title, to support the implementation of this chapter, including but not limited to any of the following purposes:

(1) Preventing releases from aboveground storage tanks;

(2) Rendering an aboveground tank empty if an indication of a release is found, or if the aboveground storage tank has been out-of-service for over 18 months;

(3) Performing an out-of-service site assessment if the owner or operator fails to do so;

(4) Providing financial assistance to remove aboveground storage tanks that are less than 1100 gallons that contain heating fuel and investigate releases from these tanks and conduct corrective actions as necessary; or

(5) Investigating the nature and extent of a release from any type of aboveground storage tank, and performing necessary corrective actions to minimize degradation of groundwater and to protect human health and the environment.

80 Del. Laws, c. 306, § 1

§ 7419A. Applicability of Brownfields Development Program.

A person approved as a brownfields developer who enters into a Brownfields Development Agreement with the Secretary pursuant to the provisions of Chapter 91 of this title, is not liable for any release or imminent threat of release of regulated substances existing at the facility when the Brownfields Development Agreement is entered into. The person is also not liable for any corrective actions or for the costs of any corrective actions incurred by the State or any other person upon the signing of the Brownfields Development Agreement provided that all of the following conditions are met:

(1) The person did not cause or contribute to the release from an aboveground storage tank, and is not liable or required to take measures for the prompt control, containment, and removal of a released regulated substance from an aboveground storage tank regulated under this chapter.

(2) The person proposes to conduct investigations at the facility where the release occurred.

(3) The person agrees to comply with the provisions of the Brownfields Development Program as well as all other applicable laws, regulations, guidance, and directives of the Department related thereto.

82 Del. Laws, c. 161, § 2