September
September 18, 2000 | September 26, 2000
September 26, 2000
Contact: Stephen Romano 208.331.8400
info@americanecology.com
AMERICAN ECOLOGY UPDATES STATUS OF WARD VALLEY LAWSUITS
Oral Argument Requested Following Ruling
in Lawsuit Filed Against State of California
BOISE, Idaho – Stephen Romano, vice president at American Ecology
Corporation, today provided an update on three separate lawsuits filed by
subsidiary US Ecology, Inc. against the State of California and the federal
government to protect the company’s investment in the Ward Valley low-level
radioactive waste ("LLRW") disposal project. "These three
interrelated lawsuits reflect a coordinated strategy to protect the Company’s
rights and interests," Romano explained, adding, "We intend to
vigorously pursue our legal remedies in all three venues."
On May 2, 2000, US Ecology filed suit against the State of California in Superior Court for the County of San Diego seeking to compel the State to resume efforts to acquire the Ward Valley site so construction of the state-licensed LLRW disposal facility may proceed. This suit also seeks recovery of costs incurred, interest, lost profits and certain legal expenses exceeding $162 million.
On September 22, 2000 the Superior Court issued a telephonic ruling granting California’s motion to dismiss all causes of action, subject to oral argument. Today, counsel for the Company requested oral argument. The Court’s ruling will be confirmed, modified or reversed after oral argument expected to take place within the next several weeks. Either party may then appeal the resulting ruling.
US Ecology also continues to protect its investment in the Ward Valley project in federal court through two lawsuits filed against the federal government. These suits are based on Interior Secretary Bruce Babbitt’s actions in early 1993 purporting to rescind his predecessor’s approval of the Ward Valley land sale.
The first case, filed in the U.S. Court of Federal Claims and seeking to recover monetary damages from the federal government in excess of $73 million, was dismissed in March 2000. The Company promptly appealed this ruling. The appeal is now briefed. However, oral argument has not yet been scheduled.
The second case, filed in the Federal District Court for the District of Columbia, seeks injunctive relief and a writ of mandamus ordering delivery of the Ward Valley site to California. The trial court rendered an adverse judgment in March 1999, which the Company appealed. Oral argument before the U.S. Court of Appeals for the District of Columbia Circuit took place on September 5, 2000. The matter is now awaiting the decision of the reviewing three-judge panel.
"American Ecology believes its position in the Ward Valley lawsuits is strong and intends to continue devoting the resources necessary to pursue each of these legal actions," Romano concluded.
American Ecology Corporation, through its subsidiaries, provides a variety of radioactive, PCB, hazardous and non-hazardous waste services to commercial and government customers throughout the United States, such as nuclear power plants, medical and academic institutions and petro-chemical facilities. The company provides scientific solutions that protect people and the environment from radioactive and hazardous materials. Headquartered in Boise, Idaho, the Company 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 and beliefs regarding pending litigation. There can be no assurance that the Company will recover its investment or earn a return on the Ward Valley project, since the outcome of litigation cannot be predicted. Failure to recover deferred site development costs would have a material adverse effect on the Company’s financial condition. For further information, please refer to American Ecology Corporation’s Reports on Form 10-K and 10-Q filed with the Securities and Exchange Commission.
September 18, 2000
Contact: Stephen Romano 208.331.8400
info@americanecology.com
AMERICAN ECOLOGY SUBSIDIARY LANDS WASTE PROCESSING AND DISPOSAL CONTRACTS
Work underway on hazardous and radioactive waste projects valued at $6.3 million
BOISE, Idaho – Zaki Naser, executive vice president and operations manager at American Ecology Corporation, today announced that subsidiary US Ecology, Inc. has extended a major hazardous waste disposal contract and entered a new low-level radioactive waste
processing contract. The recent awards have a combined value of approximately $6.3 million.
"Last week, our Beatty, Nevada hazardous waste facility and Oak Ridge, Tennessee nuclear materials management center began receiving the first waste shipments stemming from these two important contracts," stated Naser.
US Ecology’s Beatty facility extended an existing contract with TAMCO Steel, one of the nation’s premier steel manufacturers, to dispose of air emission control waste from a steel mill in southern California. "We are proud of the confidence this major customer places in our Beatty disposal facility, which we believe is the environmentally superior disposal alternative in the western United States", Naser added. Work under the contract extension is expected to be completed by year end.
US Ecology’s Oak Ridge team entered a five year, $4 million contract with the Tennessee Valley Authority ("TVA"). "The job, secured through an intensely competed bidding process, encompasses a broad range of waste handling services for TVA’s Sequoyah, Watts Bar and Browns Ferry Nuclear Power stations," Naser explained.
American Ecology Corporation, through its subsidiaries, provides a variety of radioactive, PCB, hazardous and non-hazardous waste services to commercial and government customers throughout the United States, such as nuclear power plants, medical and academic institutions and petro-chemical facilities. The company provides scientific solutions that protect people and the environment from radioactive and hazardous materials. Headquartered in Boise, Idaho, the Company 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 will secure additional contracts. For information on factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation’s Report on Form 10-K filed with the Securities and Exchange Commission.