August
August 18, 2002 | August 26, 2002
Contact: Chad Hyslop 208.331.8400
chyslop@americanecology.com
AMERICAN ECOLOGY FULLY RESOLVES FEDERAL INVESTIGATION OF OAK RIDGE, TENNESSEE SUBSIDIARY
BOISE, Idaho - Steve Romano, President and Chief Executive Officer of American Ecology Corporation [NASDAQ: ECOL], announced that subsidiary American Ecology Recycle Center (AERC) of Oak Ridge, Tenn. has fully resolved a longstanding investigation by the United States Attorney's Office for the Eastern District of Tennessee and other federal agencies. Today, attorneys representing AERC entered a guilty plea in United States District Court for the Eastern District of Tennessee to a single felony count of storing hazardous waste without the necessary permit at the subsidiary's Oak Ridge facility from 1997 to 2000. AERC also paid a $10,000 fine. The plea agreement recognizes the company's recent, voluntary contributions of $12,500 to the Tennessee Wildlife Resources Agency and $12,500 to the Tennessee Valley Authority Police to support environmental training and enforcement.
'The past, improper management of these materials was an unacceptable departure from American Ecology's commitment to the highest standards of compliance with environmental regulations,' Romano stated, adding "Today's plea agreement resolves all outstanding matters regarding these past practices.'
AERC purchased the Oak Ridge facility from Quadrex Corporation in 1994. In the months previous to purchasing the facility, a fire in a treatment process area at the facility resulted in the creation of contaminated liquid, which became AERC's responsibility with the acquisition. In 2000, AERC entered a Consent Agreement, paid a related $100,000 civil penalty to the U.S. Environmental Protection Agency for storing hazardous material without a permit, and obtained the required permit. The waste was properly removed and disposed of in December 2000.
'The senior managers responsible for the Oak Ridge subsidiary when this problem arose are no longer employed by the company," Romano added, concluding, "The final resolution of this long-standing legal matter demonstrates the Company's commitment to addressing environmental and regulatory issues in a responsible fashion.
American Ecology Corporation, through its subsidiaries, provides radioactive, PCB, hazardous and non-hazardous waste services to commercial and government customers throughout the United States, such as nuclear power plants, steel mills, medical and academic institutions and petro-chemical facilities.
This press release contains forward-looking statements based on current expectations, beliefs, and assumptions. Actual results and outcomes may differ materially from what is expressed herein and no assurance can be given that resolution of this or any legal matter will result in improved financial performance at the Oak Ridge facility. For information on risk factors that could cause actual results to differ from expectations or could adversely impact operations, please refer to American Ecology Corporation's Report on Form 10-K, and most recent Form 10-Q filed with the Securities and Exchange Commission.
August 26, 2002
Contact: Chad Hyslop 208.331.8400
chyslop@americanecology.com
AMERICAN ECOLOGY SUBSIDIARY ENTERS NEW COLLECTIVE BARGAINING AGREEMENT
Oak Ridge Plant, PACE Union Ink 5-year Pact
BOISE, Idaho – Steve Romano, President and Chief Executive Officer of American Ecology Corporation [NASDAQ: ECOL], today announced that subsidiary American Ecology Recycle Center (AERC) entered into a new 5-year collective bargaining agreement with members of the Paper Allied Industrial Chemical and Energy Workers International Union (PACE), AFL-CIO working at its Oak Ridge, Tennessee radioactive materials processing facility. This follows the May 2002 resolution of a long-standing dispute with the Union over previous contract issues.
"Successful negotiation of a new collective bargaining agreement with our union at Oak Ridge is a critical step to improving the plant's financial performance," commented Romano, adding, "Combined with the August 8, 2002 resolution of the federal investigation of past practices, the new contract positions the Oak Ridge operation to fully focus on future growth and profitability."
AERC and the Union have entered into a five-year, renewable collective bargaining agreement that defines mutually beneficial work rules, compensation, and other terms of employment.
"The contract ratified by the workers shows an unparalleled commitment to the workers and the Company's commitment to Oak Ridge as a community," said James Hendricks, PACE Region 7 Representative, adding "We look forward to many years of a good working relationship."
"This agreement fairly balances the needs of the Company and its valued union employees," Romano added, concluding "the spirit of cooperation that has developed in recent months is essential to restoring our Oak Ridge waste processing operation to profitability."
American Ecology Corporation, through its subsidiaries, provides radioactive, PCB, hazardous and non-hazardous waste services to commercial and government customers throughout the United States, such as nuclear power plants, steel mills, medical and academic institutions and petro-chemical facilities. Headquartered in Boise, Idaho, American Ecology is the oldest radioactive and hazardous waste services company in the United States.
This press release contains forward-looking statements that are based on our current expectations, beliefs, and assumptions about the industry and markets in which American Ecology Corporation and its subsidiaries operate. Actual results may differ materially from what is expressed herein and no assurance can be given that the company or its Oak Ridge subsidiary can generate future earnings. Nor can the Company make any assurance that the new labor contract will return the site to profitability. For additional information on factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation’s Report on Form 10-K, and most recent Form 10-Q filed with the Securities and Exchange Commission.