Dover – Delaware’s Department of Natural Resources and Environmental Control (DNREC) and Perdue AgriRecycle, LLC (Perdue) have entered into a settlement agreement that resolves environmental violations arising from operations under Composting Permit SW-18/03, DNREC Secretary Shawn M. Garvin announced today. Under this permit, Perdue operates a composting facility in Seaford using agricultural wastes and residues from their operations as feedstock for the company’s compost production.

Perdue’s permit requires quarterly reporting of analytical testing of compost batches to ensure that it is fit to be sold. Issues arose from lab reports being provided in a piecemeal manner to DNREC. Additionally, the reports were missing key data points, and DNREC’s Division of Waste & Hazardous Substances questioned the compost batch samples and their chain-of-custody. Chain-of-custody helps to make sure a sample is handled in such a way as to maintain quality control and prevents introducing potential contamination into the process of moving the sample from the field to the lab.

In addition to the piecemeal data reporting, there were other instances where incorrect data was provided to DNREC as part of Perdue’s quarterly reporting process. In these instances, subsequent review of data showed that the material in question exceeded allowable levels of chemicals including chromium VI and fecal bacteria.

The settlement agreement directs Perdue to change how they are reporting as well as to clarify how reports will be provided to DNREC. Additionally, it focuses on ensuring that the quality of finished product is high and conforms to the standards within Permit SW-18/03 and that “unfinished” product will no longer be distributed by Perdue AgriRecycle, LLC.

Through the settlement agreement, DNREC Secretary Garvin issued an Administrative Penalty to Perdue AgriRecycle, LLC for the violations of Delaware’s Regulations Governing Solid Waste. The Settlement Agreement assesses a penalty of $179,429, which includes $4,429 from Perdue AgriRecycle, LLC for DNREC cost recovery. Perdue has accepted obligations set forth by DNREC and agreed to corrective actions required by the Department.

The settlement agreement can be found on the DNREC website at dnrec.alpha.delaware.gov/secretarys-orders/.

Media Contact: Michael Globetti, DNREC Public Affairs, 302-739-9902

DOVER – DNREC Secretary Shawn M. Garvin has issued a Conciliation Order By Consent to Perdue Foods for multiple violations of the company’s National Pollutant Discharge Elimination System (NPDES) permit. The order totals an administrative penalty of $77,300 and an associated $7,601 assessment for expenses associated with the Department’s investigation.

Perdue Foods operates a poultry processing facility in Georgetown and has a wastewater treatment plant onsite to treat the process and sanitary wastewater generated at the facility. Perdue Foods has a NPDES permit that places certain restrictions and limitations on the amount and concentration of various pollutants that may be discharged from the treatment plant to Savannah Ditch.

From May-July 2015, Perdue Foods exceeded the effluent limits found in their NPDES permit on several occasions. Violations included noncompliance with concentration and/or loading limits for ammonia, total nitrogen (a nutrient), and enterococcus bacteria. Effluent violations from the facility added excess volumes of pollutants in the form of nutrients and potentially harmful bacteria to the state’s surface waters, and contributed to the impairment of the state’s waterways.

Perdue took steps to enhance its treatment capability and address the immediate issue of the nutrient-rich effluent, while also working to address the source of the issue. Action taken by the company helped limit the duration and extent of the upset. Perdue has not been in violation of these parameters since then.

To offset a portion of the penalty from DNREC, Perdue has chosen to perform an Environmental Improvement Project in conjunction with The Nature Conservancy, for which the company will convert 39 acres of farmland into forest. This will significantly reduce the loads of nitrogen and phosphorus pollutants going into the Broadkill River from the property to be converted.

The penalty order can be found on the DNREC website at http://www.dnrec.delaware.gov/Info/Pages/SecOrders_Enforcement.aspx.

Media contact: Michael Globetti, DNREC Public Affairs, 302-739-9902

Vol. 48, No. 45

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Dover – As a result of a recently completed Market Conduct Examination performed by The Delaware Department of Insurance (DDOI), State Farm Fire and Casualty Company has been ordered to review its protocols regarding the application of underwriting guidelines for Delaware’s coastal region and adjusts the language included in non-renewal notices distributed by the company.

Following State Farm’s decision to not renew 509 of its more than 127,000 property policies in Delaware, DDOI conducted a Market Conduct Examination to ensure the company was acting within Delaware insurance laws and regulations related to property insurance under Title 18 Insurance Code, Chapter 41.

The Market Conduct Examination determined there was no unfair discrimination in State Farm’s underwriting decisions. However, the report did find that the non-renewal notices did not contain all the statutorily required information for consumers. As a result, State Farm will pay a $150,000.00 penalty, suspend coastal non-renewals for a period of 3 years (starting November 1, 2012) and agree to include additional information on future coastal non-renewal notices. Upon completion of the market conduct examination, Commissioner Stewart stated, “Our mission at the department emphasizes our role as a consumer protection agency. A resolution such as this, demonstrates our commitment to safeguarding Delawareans from any unfair insurance practices. I am extremely happy with this outcome.”

Under an agreement between DDOI and State Farm, the company will:

• review its procedures to ensure that the cancellation or non-renewal notice contains information advising the insured that the insured may file a written complaint about the cancellation with the DDOI,
• review its procedures to ensure the specific reason for non-renewal is provided on non-renewal notices,
• review its procedures regarding accepting and writing new business that may be contrary to its established underwriting guidelines, and
• review its procedures regarding maintaining correct and complete property addresses to ensure underwriting decisions based on location are applied fairly and consistently.

“We take our responsibilities to Delaware customers very seriously. Along with our responsibility to help our customers manage the risks of everyday life, we also have an obligation to provide timely information on non-renewals, including the reasons behind our business decisions that impact our policyholders, and their options while facing a non-renewal,” said State Farm’s Public Affairs Specialist Anna Bryant. “We worked with the Delaware Department of Insurance during this examination and reached an outcome that protects Delaware consumers and allows State Farm to manage its business effectively.”

The Delaware Department of Insurance Market Conduct Examination covered the experience period of January 1, 2009-November 1, 2011, and included a review of complaint handling, non-renewal practices, new business issued and in-force business.

State Farm Fire and Casualty Company is a member of the State Farm Holding Company Group and is a wholly owned subsidiary of State Farm Mutual Automobile Insurance Company, the nation’s largest automobile insurer. The State Farm Holding Company offers multiple lines multiple lines of property, casualty and life and health insurance throughout the U.S. State Farm Fire’s corporate offices are located in Bloomington, Ill. State Farm has more than 60 agents in Delaware.