6407 COST RECOVERY PROCEDURES

6407.1 The Director shall issue a "demand letter" requesting payment in the amount of all costs incurred by the Director plus any applicable interest, after completion of corrective action and prior to bringing a judicial action for recovery of costs. In his or her discretion, the Director may also issue interim demand letters prior to completion of corrective action.

6407.2 The demand letter shall include the following information:

1. (a) The total amount due;
2. (b) An itemization of costs included in the total amount claimed;
3. (c) A statement of the time within which payment must be made;
4. (d) The interest rate;
5. (e) Notice that if the responsible party fails to pay within the prescribed time period, court action will be instituted, the costs may be assessed as a tax against the property and that the responsible party will be liable for costs of legal action; and
6. (f) Notice that where federal funds have been utilized, the responsible party is also liable to the federal government.

6407.3 The demand letter shall be mailed to the responsible party postage prepaid at the last known address for the responsible party.

6407.4 Thirty-three (33) days after the demand letter has been postmarked, the Director may do the following:

1. (a) Institute court action;
2. (b) Refer the case to the Department of Finance and Revenue for imposition of a tax lien; or
3. (c) Take any other collection measures deemed appropriate.

6407.5 Where there is more than one responsible party who may be held liable for corrective action costs, the Director may pursue one (1) or more responsible parties in his or her discretion, and in doing so, may consider the relative responsibility of the responsible parties for the contamination.

6407.6 The Director shall pursue in a timely manner and give high priority to cases where there is a solvent responsible party who refuses to comply with corrective action orders, or is otherwise recalcitrant, and cases in which the owner or operator fails to comply with the financial responsibility requirements.

6407.7 When a case is referred to the Department of Finance and Revenue pursuant to § 6407.4(b) and § 6(g) of the Act, the costs of correction of the condition and related expenses as set forth in § 6406.2, shall be assessed as a tax against the property, and collected in the same manner as real estate taxes are collected. Notice to taxpayers, payment of taxes and sale of properties for payment of delinquent taxes, shall be in accordance with the applicable provisions of DCMR Title 9, Chapter 3, titled "Real Property Taxes."

SOURCE: Final Rulemaking published at 40 DCR 7835 (November 12, 1993); as amended by

Final Rulemaking published at 46 DCR 7699 (October 1, 1999).