Reimbursement may be made from the fund only if the department has determined that the costs for which reimbursement is requested were actually incurred, reasonable, and necessary as determined under rules promulgated by the department according to chapter 1-26, and were for actions that did not exceed petroleum remediation requirements established by state statutes and regulations. In establishing what constitutes reasonable and necessary costs, the department shall consider trade usage, local labor and material costs, local conditions and practices, experience of the fund, and shall make allowance for site specific conditions.
Any attempt by a covered party to claim reimbursement under circumstances when the covered party knew or should have known that the claimed reimbursement was not allowable under this chapter or rules promulgated hereunder authorizes the department to reduce otherwise allowable claims submitted by the covered party. Any reduction imposed under this section is equal to the amount of the ineligible claim.
SDCL 34A-13-31