American Ecology News Release...BOISE, Idaho--(BUSINESS WIRE)--Aug. 27,1998--Key stakeholders in an approximately $90-million ratepayer-supported effort to license and open a low-level radioactive waste disposal facility for the Central Interstate Compact Commission today announced that they will respond with scientific facts to Nebraska regulators' stated intention to deny a license for a proposed facility in Boyd County, Nebraska. Central Interstate Compact Facility Advocates
[Editorial comments and corrections of factual misstatements appear in green italics.]
Promise Factual Response to Nebraska's
Intent to Deny Project License
Representatives from US Ecology, Bechtel, and major waste generators from Nebraska, Kansas, Louisiana and Arkansas met last week in Lincoln, Nebraska, to critique the state's announcement and to formulate plans to contest it.
"Utility ratepayers in five states have invested more than $90 million in complying with federal law and appropriate regulatory authorities only to be subjected to what we believe is a political decision to deny the license application for a comprehensive project that Nebraska is contractually obligated to develop," said Joe Nagel, president and chief operating officer of American Ecology Corporation (NASDAQ:ECOL), whose US Ecology subsidiary is designated by the Central Interstate Compact Commission as the licensee of its proposed facility. "The governor of Nebraska made a campaign promise that no facility would be opened during his administration. In spite of state regulators' earlier findings that appropriate project safeguards are in place, his agencies have issued an intent to deny the license the commission seeks."
Governor Nelson did not make a campaign promise in either his 1990 campaign or his 1994 re-election campaign that a LLRW disposal facility would not be built during his administration.Further, the state regulators' earlier "findings" -- the draft safety evaluation report and draft environmental impact assessment -- were merely the preliminary DRAFT documents based upon a technical analyses of the data and materials that USE had provided to the state. Those draft documents were the subject of a public comment period and lenghty public hearings, at which US Ecology presented additional information and materials to the state regulators.
Ratepayers in the five states of the Central Interstate Compact have invested approximately $85 million and US Ecology more than $6 million in the proposed project.
Governor Ben Nelson of Nebraska is in the final months of his term of office.
The agencies -- the Nebraska Department of Environmental Quality and the Nebraska Department of Health and Human Services Regulation and Licensure -- issued a preliminary decision on August 6, 1998, that they intend to deny the license application by US Ecology for the Central Interstate Compact Commission.
The decision contradicted findings in the agencies' benchmark health and safety study of the license application announced in October, 1997. In that report, Nebraska authorities issued "acceptable" ratings on 123 of 152 evaluation areas. Project proposals given wholly "acceptable" ratings in 1997 included site characterization, health and safety, design and construction, financial assurance and quality assurance.
"In spite of those findings, arguments about site characterization, health and safety, design and construction and financial assurance are where the Nebraska regulators are now hanging their hat," Nagel said. "That's why it is hard for us to view this intent to deny declaration as anything other than a political tactic. We do, however, take it very seriously."
In their announcement, Nebraska's two agency directors denied their decision was based on political considerations and listed seven reasons for their preliminary decision. Each of the areas of the proposal were deemed "acceptable" in prior agency reviews.
The three paragraphs immediately above appear to be rife with disingenous commentary. US Ecology participated in the public comment/hearing process following the release of the draft document (above referred to as "benchmark health and safety study." US Ecology brought forth additional information trying to demonstrate that the technical analyses contained in the draft documents with regard to the areas found unacceptable, were in err, and that such unacceptable areas were acceptable. Likewise, others participating in the public comment/hearing process brought forth additional information in order to demonstrate that some of the areas previously found to be acceptable, did not, in fact, meet the regulatory requirements. That, after all, is the purpose of the draft documents and public comment/hearing process.When the draft documents were released in October 1997, it was made abundantely clear by the directors of the regulatory agencies that those documents contained the technical analyses of the data and materials that USE had provided to the state; that following the hearing process, areas previously deemed unacceptable may be found to be acceptable. And likewise, that areas previously deemed acceptable may be found to be unacceptable. What US Ecology appears to be suggesting, is that from the issuance of the draft documents on, only THEY should be allowed to comment or submit additional information. By US Ecology's reasoning, given that the draft documents noted 29 unacceptable areas, there would be no way to change those finding; thus, US Ecology's license application failed as of October 1997.
Nebraska agreed to allow construction of a low-level radioactive waste disposal facility in 1989 in fulfillment of its legal obligation under the 1985 Low Level Radioactive Waste Policy Act. But in 1990, Ben Nelson said in his initial election campaign that the facility would never be licensed if he were elected governor.
Since this misstatement is made twice in this news release, once again, to set the record straight -- Governor Nelson did NOT make a campaign promise in either his 1990 campaign or his 1994 re-election campaign that a LLRW disposal facility would not be built during his administration. The only promise made by Nelson during his 1990 campaign with regard to the LLRW issue was that he would do everything he could to assure that the "community consent" criteria was met. The 1994 re-election campaign promise with regard to LLRW was that he would assure that all health and safety standards were met before a facility would be built in Nebraska.Additionally, the opening statement of the above paragraph appears to suggest that there was some sort of agreement that Nebraska entered in 1989 -- there was no such agreement -- at least, no such agreement of which the public was made aware.
The state will accept comments on its proposed denial until November 6, 1998, and will hold public hearings in Naper, Nebraska, November 9 and 10, and in Butte on November 11 and 12.
American Ecology provides processing, packaging, transportation, remediation and disposal services for generators of hazardous waste and low level radioactive waste at licensed facilities throughout the United States. The company has been in business since 1952.