American Ecology responds to California Appellate Court Decision on Ward Valley.

HOUSTON--(BUSINESS WIRE)--Oct. 10, 1995--American Ecology Corporation today responded to a ruling by the California Second District Court of Appeals upholding the state's licensing of the Ward Valley low-level radioactive waste (LLRW) disposal facility.

"The company is very pleased that the state court has upheld the Ward Valley license, affirming the California Department of Health Services' (DHS) findings that the Ward Valley facility is fully protective of public health and the environment," said Jack K. Lemley, chairman and chief executive officer of American Ecology Corporation.

In September 1993, California responded to the federal Low-Level Radioactive Waste Policy Act, as amended, by issuing a license to American Ecology's subsidiary, US Ecology, to develop and operate the Ward Valley LLRW disposal facility.

In its decision, the Appellate Court ruled that suits filed against the state were "without merit," thereby rejecting the claims of project opponents challenging the state license approval. As stated in the court's October 5 ruling, "We have concluded that there was insufficient basis to remand the matter for reconsideration, and that petitioners' other grounds for setting aside DHS' disposition were correctly determined to be without merit. We therefore reverse with direction to deny petition."

Facility construction cannot begin until federal lands on which the project will be developed are transferred to California. Delays by the U.S. Department of Interior in conveying the federal property have led to the introduction of legislation to directly transfer the 1,000-acre parcel.

"The company joins Governor Wilson and leaders of the state's medical, academic and biotechnology communities in calling for prompt action by Congress to complete the Ward Valley land transfer," Lemley added.

In May, the National Academy of Sciences (NAS) released a report on the site confirming its safety and suitability for the disposal of LLRW. The NAS study had been requested by Interior Secretary Bruce Babbitt.

American Ecology operates a nuclear waste disposal facility in Washington, has received a license approval for a similar facility in California, has a license application pending for a nuclear disposal facility in Nebraska, and operates a nuclear processing facility in Tennessee. The Company also operates a chemical waste disposal facility in Nevada and two in Texas. Services provided by the Company include waste packaging, transportation, consulting, pretreatment, disposal, fuels blending, recycling, and clean-up services. The Company's common stock trades on the Nasdaq Stock Market under the symbol ECOL.

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