Delaware Environmental Law Update

May 22, 2008

Publication| Environmental

On May 15, 2008, Delaware enacted legislation that will affect the transfer or closing of facilities in Delaware where chemical or hazardous substances have been or are located. The legislation establishes three principal requirements for affected facilities. First, prior to the transfer of a facility, the parties to the transaction must conduct "All Appropriate Inquiry" as defined in Delaware’s Hazardous Substances Cleanup Act, and all documents prepared or identified pursuant to such inquiry must be submitted to the Department of Natural Resources and Environmental Control (DNREC). Second, if an affected facility terminates its operations or files for bankruptcy, certain requirements must be completed no later than 90 days after termination of all business or activities at the facility, including certification of the removal of the chemicals or hazardous substances from the facility. Third, financial assurance will be required for transferred facilities or new facilities, in an amount to ensure that, upon termination, abandonment or liquidation of activities at the facility, all appropriate means will be taken to stabilize and secure the facility.

The legislation will become effective upon the promulgation by DNREC of facility transfer regulations. DNREC will begin the development of regulations to implement this legislation in late summer or early fall and is expected to promulgate regulations in early 2009.

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