August
August 2, 2005 | August 8, 2005
August 2, 2005
Contact: Chad Hyslop 208.331.8400
chyslop@americanecology.com
AMERICAN ECOLOGY RECEIVES $11.8 MILLION PAYMENT FROM CENTRAL INTERSTATE COMPACT
Company Claim on Proceeds from Nebraska Litigation Settlement Resolved
BOISE, Idaho, August 2, 2005 – Stephen Romano, President and Chief Executive Officer of American Ecology Corporation [NASDAQ: ECOL] today announced receipt of $11,804,739 from the Central Interstate Low-Level Radioactive Waste Compact (“Compact”). The payment fully resolves subsidiary US Ecology’s claim on proceeds from an August 9, 2004 settlement of Entergy et al vs. State of Nebraska, a lawsuit brought against the State of Nebraska for bad faith in the licensing process for a formerly proposed low-level radioactive waste (“LLRW”) disposal facility near Butte, Nebraska.
“We are pleased with this expeditious resolution of our claim on the Nebraska litigation settlement proceeds,” stated Romano, adding “This $11.8 million payment enhances American Ecology’s already strong cash position in a year we are making substantial capital investments in our operating facilities to implement the Company’s long-term growth strategy.”
The $11.8 million payment from the Compact reflects the return of the contributions made by US Ecology to the project plus interest. The Company previously recognized a $6.5 million deferred site development asset for its investment in the Nebraska project. A gain of approximately $5.3 million will be recognized in the current quarter as Other Income based on claim resolution and payment.
US Ecology is working with the Compact to expeditiously close out its contract for development of a LLRW disposal facility in the five-state Compact region. The Company will incur limited out-of-pocket expenses to transfer records and perform other project transition tasks.
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, refineries and chemical manufacturing facilities. Headquartered in Boise, Idaho, the Company is the oldest radioactive and hazardous waste services company in the United States, having operated for more than fifty years.
This press release contains forward-looking statements that are based on management’s current expectations regarding costs to close out its contract with the Compact, planned capital spending, implementation of the Company’s long term growth strategy, and accounting treatment of the Nebraska settlement proceeds. Actual results may differ materially from what is expressed herein. For information on risk factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission.
August 8, 2005
Contact: Chad Hyslop 208.331.8400
chyslop@americanecology.com
AMERICAN ECOLOGY OPENS NEW TEXAS WASTE TREATMENT BUILDING
Design Offers Increased Waste Throughput, Improved Environmental Protection
BOISE, Idaho August 8, 2005 – American Ecology Corporation [NASDAQ:ECOL] today announced that subsidiary US Ecology Texas has resumed full treatment services in a new hazardous waste treatment building constructed at its Robstown, Texas hazardous waste treatment and disposal facility.
“Our Texas facility’s new treatment building is designed to deliver increased throughput for the full range of wastes included in our operating permit,” stated American Ecology President and Chief Executive Officer Stephen Romano. “The building’s advanced design also offers our customers a safe, environmentally superior solution to their hazardous waste service needs,” Romano added.
The 6,000 square foot building’s environmental controls include a high-volume air emission control system with baghouse, double-walled steel treatment tanks, tank misting system, and an automated treatment reagent measurement and delivery system. These systems will allow the Texas site to expand dusty waste treatment services, and increase options for solidification and disposal of liquids and sludges.
“The opening of a more efficient, high throughput waste treatment building is an important element of our growth strategy for the Texas operation”, Romano concluded.
Hazardous waste treatment services were suspended at the Texas facility following a July 1, 2004 fire. Limited treatment resumed in December 2004 following repairs to the fire-damaged building. The repaired building remains in use for a limited range of services. Resumption of full treatment services became possible with the opening of the new building.
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, refineries and chemical manufacturing facilities. Headquartered in Boise, Idaho, the Company is the oldest radioactive and hazardous waste services company in the United States, having operated for more than fifty years.
This press release contains forward-looking statements that are based on management’s current expectations regarding the new Texas building’s throughput capacity, processing efficiency, and contribution to growth of the Company’s business. Actual results may differ materially from what is expressed herein. For information on risk factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission.