Allen Harim Reaches Agreement with Artesian on Wastewater - Jan. 27, 2017

Allen Harim Reaches Agreement with Artesian on Wastewater
Company will no longer discharge wastewater into nearby creek

SEAFORD, Del. - January 27, 2017 -- Allen Harim has reached an agreement with Artesian Wastewater Management, Inc., that will mean the company's Harbeson chicken processing plant will no longer discharge any wastewater into nearby Beaverdam Creek.

During the next 18 months, Artesian will construct a pipeline that will take the facility's treated wastewater to Artesian's Northern Sussex Water Recycling Facility north of Milton, Delaware. From there, Artesian will use it for spray irrigation on agricultural land.

"This will be a game changer for our Harbeson facility," said Allen Harim President and CEO Joe Moran. "We've been discussing this idea with Artesian for nearly nine months and we are pleased to be able to move forward with this plan. Our goal all along has been to reduce our impact to Beaverdam Creek, and this solution eliminates it altogether."

Allen Harim was granted a "change in scope" to its planned wastewater treatment plant upgrade (known as Phase Two) from Delaware Department of Natural Resources and Environmental Control (DNREC) last month. During Phase Two, the company had planned to build additional wastewater treatment units, a filtration unit, and a water reuse plant. Instead, Artesian will manage the disposal of all the treated wastewater generated at the Harbeson facility.

DNREC, which loaned Allen Harim $11.5 million to finance the expansion and upgrade of its wastewater treatment facility, also agreed to direct $5 million of the remaining loan balance to fund a one-time impact fee to Artesian, which will be making a $17 million investment in infrastructure for the disposal of the treated wastewater. The Environmental Protection Agency also approved the new plan.

"Artesian is very pleased to provide a solution for Allen Harim that will allow its treated wastewater to be reclaimed for irrigation, thus reducing nutrients in our rivers, streams and bays while also making farming more financially viable," said Dian C. Taylor, President and CEO of Artesian. "Use of reclaimed wastewater for irrigation of agricultural land preserves groundwater supplies and maintains the local natural water cycle," she noted.

About Allen Harim Foods, LLC
Allen Harim combines an approach to growing the healthiest chicken possible with a commitment to implementing the latest technology for the continuous improvement of all processes. Headquartered in Seaford, Delaware, Allen Harim operates a chicken processing facility in Harbeson, Delaware; a breeding operation in Liberty, North Carolina; a hatchery in Dagsboro, Delaware, and a hatchery and feed mill in Seaford. The company employs more than 1,750 people in the United States, as well as more than 230 independent growers and 20 company farms across Delmarva.

About Artesian Resources Corporation
Artesian Resources Corporation (Nasdaq: ARTNA) operates as a holding company of wholly-owned subsidiaries offering water, wastewater services and related services on the Delmarva Peninsula. Artesian Water Company, the principal subsidiary, is the oldest and largest investor-owned water utility on the Delmarva Peninsula and has been providing water service since 1905. Artesian supplies 7.6 billion gallons of water per year through 1,218 miles of water main to approximately 301,000 people. Artesian Wastewater Management, Inc., a wholly-owned subsidiary, is a regulated public wastewater utility company that owns wastewater collection and treatment infrastructure and provides wastewater services to customers in Delaware.



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