US Ecology Sues State of California Over Ward Valley

["Sandy Perle" <sandyfl@earthlink.net>]

US Ecology Sues State of California Over Ward Valley; Seeks More Than 
$162 Million From State for Ignoring Laws and Contract Obligations
  
BOISE, Idaho--(BUSINESS WIRE)--May 3, 2000--Jack Lemley, chairman, 
chief executive officer and president of American Ecology Corporation 
(Nasdaq:ECOL), today announced that its subsidiary US Ecology, Inc. 
is suing the State of California, its Governor and the Director of 
the state Department of Health Services for monetary damages 
exceeding $162 million stemming from the state's abandonment of the 
Ward Valley low-level radioactive waste ("LLRW") disposal project. 

US Ecology is also seeking a Writ of Mandate requiring California to 
resume and complete steps to purchase the disposal site. 

"It is clear that California has abandoned its duty to develop this 
safe, environmentally sound disposal facility as required by state 
and federal laws and the state's contractual relationship with US 
Ecology," Lemley stated, adding, "The real tragedy is that 
radioactive waste continues to pile up in California communities 
while state officials bury their heads in the sand and ignore the 
law." The suit was filed in Superior Court for the County of San 
Diego. 

Laws on the books since the 1980s require the state to build a 
disposal site for LLRW produced in California, Arizona, North Dakota 
and South Dakota, members of the Southwestern Compact. In keeping 
with these laws, a private developer -- US Ecology -- was selected in 
1985 to locate and license the site using its own funds on a 
reimbursable basis. US Ecology has also paid annual $250,000 license 
fees and covered the cost of various contractors hired by the state 
to assist it in scrutinizing the project. In 1993, US Ecology 
obtained a license from the California Department of Health Services, 
which it continues to hold. The state successfully defended the 
license against challenges in court and, until last year, actively 
pursued conveyance of the site from the federal government as 
required by law and its contractual obligations to US Ecology. 

"Since Governor Davis took office," Lemley explained, "the state has 
moved systematically to dismantle years of careful progress to solve 
a serious public health problem." "This abrupt policy reversal and 
the state's refusal to proceed with acquisition of the Ward Valley 
site leaves us no choice but to seek economic recovery and a court 
order that California meet its present obligations," Lemley added. 
The company's claim includes recovery of costs incurred since 1985, 
plus interest and future lost profits for the intended thirty years 
of waste burial. "We believe our case is strong and intend to pursue 
this legal action with vigor," Lemley stated. 

Last week, US Ecology filed the opening brief in its appeal of a 
federal District Court ruling on the delayed Ward Valley land sale. 
"We believe the Interior Department has an ongoing obligation to 
convey the property to California, and that California has a present 
duty to demand that they do so," Lemley said. "US Ecology is ready 
and able to build and operate the Ward Valley site consistent with 
our existing license and the law," he emphasized. Oral arguments in 
the federal court action are scheduled in the United States Court of 
Appeals for the District of Columbia Circuit this coming September. 

American Ecology Corporation, through its subsidiaries, provides low-
level radioactive, PCB, hazardous and non-hazardous waste services to 
commercial and government customers throughout the United States. 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 nation. 

This press release may contain forward-looking statements that are 
based on our current expectations, beliefs, and assumptions. Actual 
results or outcomes may differ materially from what is expressed in 
these forward-looking statements. There can be no assurance that 
American Ecology will be successful in this, or any, legal 
proceeding. American Ecology has no duty or obligation to update any 
forward-looking statement made herein. Please refer to American 
Ecology Corporation's Report on Form 10-K filed on March 30, 2000 
with the Securities and Exchange Commission. 

------------------------------------------------------------------------
Sandy Perle					Tel:(714) 545-0100 / (800) 548-5100   				    	
Director, Technical				Extension 2306 				     	
ICN Worldwide Dosimetry Division		Fax:(714) 668-3149 	                   		    
ICN Biomedicals, Inc.				E-Mail: sandyfl@earthlink.net 				                           
ICN Plaza, 3300 Hyland Avenue  		E-Mail: sperle@icnpharm.com          	          
Costa Mesa, CA 92626                                      

Personal Website:  http://www.geocities.com/capecanaveral/1205
ICN Worldwide Dosimetry Website: http://www.dosimetry.com

************************************************************************
The RADSAFE Frequently Asked Questions list, archives and subscription
information can be accessed at http://www.ehs.uiuc.edu/~rad/radsafe.html