Donovan Salvage Works appeals $1.7 million fine

Georgetown-based scrapyard Donovan Salvage has appealed a $1.7 million fine issued by the Delaware Department of Natural Resources and Environmental Control.

Citing at least dozens of ongoing violations, DNREC Secretary Shawn Garvin issued the fine in early November. 

“Respondents were previously provided notice of many of these regulatory violations and afforded the opportunity to comply,” said Garvin in his order. “In addition, had respondents employed reasonable oversight measures as required by the regulations, many of the violations could have been remedied sooner or avoided altogether.”

Garvin also said part of the consideration for his fine was that, in his opinion, Donovan Salvage Works had benefited from the violations by avoiding permit fees, analytical costs and disposal fees.

Wilmington-based attorney Michael Teichman filed the appeal Nov. 18 to the state’s Environmental Appeals Board on behalf of Donovan Salvage. Teichman described the penalty of $1.7 million as outlandish and said it appears to be the largest administrative penalty ever sought by the secretary.

Teichman said Donovan Salvage does not take these violations lightly and has taken many corrective actions since the initial notice was issued in May.

“Appellants nevertheless recognize that more needs to be done and are continuing to work on the violations,” said Teichman. “However, appellants, as a small business, have comparatively limited resources, and addressing each violation to the 100% satisfaction of the secretary cannot be accomplished overnight.”

Teichman argues a good portion of the violating waste piles are from before current owner Mike Herbert took over in 2007. The site has been a salvage yard since at least the 1960s, and more than a few of the waste piles and waste berms identified in the order long predated the appellants’ ownership and operation of the facility, he said.

Teichman argues the scrapyard provides an essential service to the community – the recycling of automobiles and junk farm equipment; and as a retail outlet of used automobile parts for lower-income Sussex Countians.

Virtually everything of any value that comes into the facility is converted into a form that will allow it to be recycled or reused, said Teichman. Like all scrap yards, he said, residue from scrapping activities that cannot be recycled or resold will inevitably accumulate as vehicles and equipment are scrapped.

According to Teichman, the salvage yard lost well over $1 million in gross revenue when it was forced to fully or partially shut down operations because of two cease-and-desist orders.

“This extreme overreaction resulted in the identification of 45 violations, none of which alleged significant discharge of a pollutant into the environment,” said Teichman. “Instead, the violations focused on technical violations such as piles of debris [to be expected in a scrap yard], improper or absent labeling on waste containers, an oversized scrap tire pile, etc.”

The appeals board has scheduled a hearing for 9 a.m., Tuesday, May 9, to continue reviewing the matter.

About the Environmental Appeals Board

Created in 1973, the Delaware Environmental Appeals Board hears appeals of decisions made by the DNREC secretary. The board has the authority to affirm, modify or reverse a decision.

The board has seven members, all Delaware residents, including two representatives from each of the state’s three counties and a chair. The chair serves at the pleasure of the governor. The six other members serve three-year terms. All are appointed by the governor with the advice and consent of the state Senate.