CHAMBERS FILES MOTION TO INTERVENE IN LAWSUIT
CHAMBERS FILES MOTION TO INTERVENE IN LAWSUIT PITTSBURGH, Nov. 18 /PRNewswire/ -- Chambers Development Company,
Inc. (AMEX: CDVA, CDVB) today filed a motion with the New York Supreme Court seeking to intervene in a lawsuit filed earlier this month against New York City and the Department of Environmental Protection (DEP).
The lawsuit alleges that technicalities of the bidding process were not followed in the awarding of sludge disposal contracts. New York City faces a Dec. 31 court-imposed deadline to cease ocean dumping of its sewage sludge or pay a fine of $600 per dry ton/per day for every ton dumped into the ocean -- a fine that could amount to as much as $80 million on an annualized basis. The social costs of this continued environmental degradation are incalculable, a spokesman said. The contracts the city has entered into provide that sludge disposal will be achieved through transportation of New York City sludge to remote locations. Not only will the city's contract with Chambers enable it to comply with the court-ordered mandate to cease ocean dumping, but will also allow the city, if it elects to utilize the maximum volumes of sludge disposal provided in its contract with Chambers, to pay only $116.40 per ton for transportation and disposal. This cost is significantly less than the $150 per wet ton the city would have to pay if it violates the consent decree with the U.S. Environmental Protection Agency to cease ocean dumping of sludge. It is also the lowest price the city would be paying to any of the other sludge removal contractors that were selected from the city's competitive request for proposals process. Chambers' contract with New York City provides a unique service that other companies cannot offer, such as state-of-the-art transportation and disposal facilities coupled with flexible volumes and reduced pricing based upon tonnage. The Chambers' disposal system incorporates: -- The nation's most advanced transportation system for moving waste materials, including sludge, in an environmentally secure manner. It utilizes leak-proof containers with clamp-on lids to hold in odors, prevent spillage and appear visually attractive; -- An environmentally beneficial use of the sludge in keeping with the city's stated sludge-handling preference. Sludge disposed in an environmentally secure facility promotes biodegradation of solid wastes, which aids in conservation of land and valuable disposal space; -- Co-disposal of sludge with municipal solid waste, through the accelerated biodegradation process, produces methane gas which will be collected in a special system developed by Chambers, and available to generate power to fuel a proposed industrial development park; -- A Chambers-proposed demonstration project will turn New York City sewage sludge into compost for use as a landfill cover material, thus providing for further beneficial re-use of the city's sludge -- at no additional cost to New York; and -- A unique waste inspection program will "fingerprint" all waste received at the landfill, thus enhancing the city's protection against environmental liability. The contract between Chambers and New York City guarantees that for 6-1/2 years, beginning Jan. 1, 1992, Chambers will dispose of up to 550 tons per day of New York City's sewage sludge. This contract was awarded in compliance with procedures established by the Department of Environmental Protection and was the result of nearly two years of negotiations that encompassed a highly competitive selection and approval process. Approximately 80 firms initially expressed interest. As a result of the competitive procedures, Chambers was among the finalists selected by the Department of Environmental Protection. Alex Rangos, Chambers' executive vice president, said, "This motion to intervene has been filed in support of the Department of Environmental Protection's position that the company will provide environmentally sound transportation and disposal on a guaranteed long-term basis and at fair and reasonable prices." Rangos went on to say that "the contract will enable the city to substantially meet the court-imposed mandates regarding prohibition of ocean dumping of sewage sludge. This contract is both environmentally and economically responsive to the city's needs and Chambers has already invested significant sums of money to provide the city with safe, reliable transportation and disposal of sludge beginning Jan. 1, 1992." Chambers Development Company, Inc., headquartered in Pittsburgh, is a leading environmental firm offering services in recycling, transfer station operation and landfill development, as well as the collection, transportation and disposal of residential, commercial, non-hazardous industrial and medical solid wastes. -0- 11/18/91 /EDITORS: Following is a fact sheet concerning this contract./ NEW YORK CITY SLUDGE CONTRACT FACT SHEET -- New York City must reduce ocean dumping of sewage sludge by 20 percent effective Jan. 1, 1992. Ocean dumping must be eliminated entirely by July 1, 1992. -- Failure to meet EPA deadlines will result in mandatory fines of $600 per dry ton per day. New York City generates approximately 1,900 tons of sewage sludge per day. -- Should political infighting impair compliance with EPA deadlines, the city could face fines of as high as $80 million in 1992, just to allow the city to engage in continued environmental degradation, the social costs of which are incalculable. -- New York City must take great care not to shift ocean pollution to inland groundwater sources by disposing in leaky, substandard landfills. -- The Chambers' contract is the only one capable of meeting impending EPA deadlines using an environmentally sound and proven technology. -- The service to be provided by Chambers is unique in its use of a specially designed, leak-proof environmental transportation system. -- The sludge will be deposited in Chambers' Charles City County (Va.) Landfill, which is protected by three liners configured in a two-liner system. All waste ever placed in this facility has been placed on this liner system under the strictest environmental supervision, thus vastly reducing the city's exposure due to environmental liability. -- The land disposal of sludge in a state-of-the-art landfill is an environmentally beneficial use in that the sludge promotes biodegradation of solid waste and, thus, aids in conservation of land and valuable disposal capacity. -- The co-disposal of sewage sludge and municipal solid waste enhances the generation of methane, which will be collected and available to generate energy to power a nearby industrial park. -- The use of environmentally sound disposal systems will enhance the city's flexibility for selecting waste disposal options in the future. -- The use of environmentally inferior disposal sites would fuel anti-New York sentiments among those urging Congress to bar interstate waste movements. -- The Chambers' contract is the most economical of the final proposals considered by the city and is structured to yield substantial discounts at higher volumes due to economies of scale. -- The Chambers' contract provides the city maximum flexibility and guaranteed prices for 6-1/2 years at a permitted facility with available disposal capacity. /CONTACT: John Shirvinsky, media, 212-697-6890, or 412-244-7560, Lew Nevins, financial, 412-244-6195, or, in New York, Paul Buiar, 212-689-9500, all of Chambers Development/ (CDVB) CO: Chambers Development Company, Inc. ST: New York, Pennsylvania IN: SU: CON DM -- PG011 -- 4556 11/18/91 14:59 EST
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|Date:||Nov 18, 1991|
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