New Jersey state auditors have determined during the last 10 years the New Jersey Department of Environmental Protection (NJDEP) has failed to collect approximately $10 million in fees assessed to owners of contaminated properties that underwent state monitored cleanups throughout the state.  The properties range from small residential properties to large industrial properties.

In an effort to reform its Site Remediation Program and to collect outstanding fees, the NJDEP plans to send out approximately 5,000 letters to delinquent property owners in early 2007.  Most of the delinquent fees are minor, amounting to less than $1,000.  The fees were assessed for NJDEP oversight of property cleanups.  Some of the fees were assessed as far back as the 1990s, and remain unpaid because the NJDEP did not follow up on initial billings or require payment prior to issuance of a No Further Action (NFA) letter.

NJDEP is also upgrading their billing system to ensure that bills are prepared properly and ensure interest is added to accounts that are overdue.  As part of the reform, NJDEP will no longer issue a NFA letter until all NJDEP fees associated with a property undergoing remediation have been fully paid.  This matter is especially important now that NJDEP relies largely on user fees to fund its operations and environmental protection programs.