Artesian Resources Corp., Newark, announced that its principal operating subsidiary, Artesian Water Company, Inc. received approval from the Delaware Public Service Commission to return to its customers proceeds from a settlement agreement with the Delaware Sand & Gravel Trust.
The trust is responsible for remediation of releases from a former landfill operation designated as a Superfund site by the U.S. Environmental Protection Agency.
The proceeds, to be paid in four annual installments, are reimbursement for investments made by Artesian Water in water treatment systems at its northern New Castle County Llangollen well field to ensure its water continues to meet drinking water standards.
Active customers as of September 30, 2022 will receive a credit of approximately $27 issued no later than October 31, 2022 with the credit appearing on their subsequent water bill. Active customers as of July 31, 2023, 2024 and 2025 will receive a similar level of credit.
Since 2013, Artesian invested $8.7 million in treatment technologies and incurred $1.3 million in related operating costs at its Llangollen well field, which the trust has agreed to reimburse, all of which will be returned to customers.
The Llangollen well field, which can provide 2.2 million gallons per day of supply on average and as much as 3.6 million gallons per day during summer peak periods, is a critical component of meeting water demands in New Castle County, the utility stated.
“We are extremely gratified that the trust has accepted responsibility for the needed water treatment and agreed to make Artesian customers whole by reimbursing the associated costs. The completion of this monumental task, a nearly 20 year initiative, led by Artesian’s Executive Vice President, Joseph A. DiNunzio, will now rightfully return to our customers the costs previously incurred by Artesian and now reimbursed by the Trust,” said Dian C. Taylor, CEO of Artesian Resources Corporation.
Artesian has also worked with the Delaware PSC and Delaware Office of the Public Advocate.
“Without the need for costly litigation, the trust accepted responsibility for not only the costs already incurred, but for any that will be incurred as a result of activities at the site, ensuring that Artesian’s customers will not bear that burden in their water bills,” said Nicholle R. Taylor, president of Artesian Water Company.
Delaware Sand & Gravel operated as a gravel quarry until 1968 and then as a landfill from 1968 to 1976 on a site north of Llangollen (and Grantham Lane), between Routes 13 and 9, in northern New Castle County.
Releases from the former landfill affected groundwater quality in the area, resulting in its designation by the EPA as a Superfund site, as well as Artesian Water’s need to install various forms of treatment, including granular activated carbon, ultra violet advanced oxidation and filtering systems.
In accordance with the Consent Decree with the EPA, the trust will continue its remediation of the Superfund site associated with the past landfill, including operation of interceptor wells intended to prevent further migration of contaminants from the landfill to Artesian’s Llangollen well field.
The trust will also reimburse Artesian for all future operational costs associated with operation of the treatment systems at the Llangollen well field and for any future capital costs associated with treatment of any contaminants originating from the Trust’s site.
