New Jersey Governmental Site Remediation Oversight Fees – Any Relief?

August 8, 2010
by DARRYL BORRELLI
Client Alert Newsletter August 2010

For those with site remediation projects in New Jersey, you are likely all too familiar with the invoices you receive from the New Jersey Department of Environmental Protection ("NJDEP") presenting their fees for providing project oversight services. Some may have even experienced a degree of sticker shock when they see the bill. But there are ways to provide relief from these fees, especially for projects which have a longer history of governmental oversight.

1. Review the bills. Do not hesitate to ask for backup or an explanation of any charges that you do not understand. NJDEP is open to discussions regarding oversight costs.

2. Consider whether opting into the Licensed Site Remediation Professional ("LSRP") program, for cases not currently required to use an LSRP, will reduce the NJDEP fees. While there are still NJDEP administrative fees associated with using an LSRP, the costs of these fees could be considerably less and certainly more predictable than the standard case management oversight costs.

3. At project completion, determine whether NJDEP oversight fees have exceeded the statutory maximum. By law, NJDEP oversight fees for oversight services provided after July 1, 2002, cannot exceed 7.5 percent of the project costs incurred after that date. In cases where the maximum has been exceeded, NJDEP will refund the overage, but only if asked.