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Federal Appeals Court Dismisses Ward Valley Damages Suit
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Federal Appeals Court Dismisses Ward Valley Damages Suit
PG&E unit bankruptcy is third-largest
==========================================
American Ecology Announces Federal Appeals Court Dismisses Ward
Valley Damages Suit
BOISE, Idaho--(BUSINESS WIRE)--April 6, 2001--
American Ecology Reaffirms Commitment to Seek Recovery of
Damages from State of California in Pending State Court Litigation
Jack K. Lemley, Chairman, President and CEO of American Ecology
Corporation (Nasdaq:ECOL), today announced that a lawsuit filed by
subsidiary US Ecology, Inc. to recover damages from the federal
government for its failure to complete the land transfer for the Ward
Valley low-level radioactive waste ("LLRW") disposal project had been
dismissed on appeal.
The ruling, issued on March 30, 2001 by the U.S. Court of Appeals for
the Federal Circuit, held that sufficient evidence was not presented
to establish that the federal government intended for any third party
-- such as US Ecology -- to have rights under an alleged contract
between the federal government and the State of California to
purchase the Ward Valley site. The Court did not rule on the issues
of contract formation or US Ecology's standing to appeal.
"While we are disappointed in the ruling, American Ecology believes
its case against the State of California remains strong," Lemley
commented. "US Ecology intends to vigorously pursue completion of the
land acquisition by California or recovery of monetary damages in
State Court," Lemley added.
In May 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. This pending
suit also seeks recovery of costs incurred, interest, lost profits
and certain legal expenses exceeding $162 million.
In October, 2000, California Superior Court Judge S. Charles
Wickersham issued an Order granting California's motion to dismiss
the case. US Ecology appealed that ruling, and briefing is now
underway. Oral argument has not been set. "The State of California
still has a contractual obligation to US Ecology and nothing in the
recent federal court ruling changes that," Lemley 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.
Headquartered in Boise, Idaho, the Company is the oldest radioactive
and hazardous waste services Company in the United States.
----------------
PG&E unit bankruptcy is third-largest
Utility stands behind Texaco, Financial Corp.
SAN FRANCISCO (CBS.MW) - When Pacific Gas & Electric on Friday sought
Chapter 11 protection from its creditors, the electric utility took
an infamous place in history.
Its bankruptcy filing - listing $24.18 billion of assets - ranks the
utility third on the list of the largest U.S. bankruptcies, according
to Bankruptcydata.com. Ahead of Pacific Gas & Electric, which is a
subsidiary of PG&E Corp.
({HYPERLINK "/tools/quotes/intChart.asp?siteid=aolpf&symb=PCG"}PCG) ,
are Texaco
({HYPERLINK "/tools/quotes/intChart.asp?siteid=aolpf&symb=TX"}TX) ,
which filed in 1987 with $35.9 billion of assets, and Financial Corp.
of America, which filed in 1988 with $33.9 billion of assets.
MCorp is fourth on the list, listing $20.2 billion of assets when it
filed in 1989, and in fifth place - First Executive Corp., which
filed in 1991 with assets of $15.2 billion of assets.
According to Susan Abbott, a managing director at Moody's Investors
Service, there have been only two other utility bankruptcies - Public
Service of New Hampshire and El Paso Electric Co. Both were small
companies and can't compare to Pacific Gas & Electric, she noted.
Pacific Gas & Electric gave up on solvency, in part because it has
almost $9 billion worth of debt and saw no relief in sight from the
state of California. Although California Gov. Gray Davis signed a
mandate Thursday night to raise the state's electricity rates, Abbott
pointed out that the utility, in its conference call, said that there
has been much talk but very little action taken by the state.
"And that's what brought them to the place they are now," she said.
"It appeared there were a couple of elements that PG&E couldn't live
with: there was virtually no progress being made on their case with
the governor's office, they are still exposed to obligations related
to net short positions, and the rate increase signed by Davis last
night doesn't do anything to help the situation."
That leaves Pacific Gas & Electric peer Southern California Edison
flapping in the wind. Abbott said it's a toss-up as to whether
SoCalEd, a division of Edison International
({HYPERLINK "/tools/quotes/intChart.asp?siteid=aolpf&symb=EIX"}EIX) ,
will follow Pacific Gas & Electric's lead. But they're in the very
same boat, she said.
"They have continuing obligations for net short positions, the
structure of the market continues to be a mess, and there's no relief
for the debt they've taken on," Abbott said.
Although SoCalEd would likely file for bankruptcy and not its parent,
Edison has about $37.9 billion worth of assets as of Sept. 30, 2000,
according to data from Hoover's.
------------------------------------------------------------------------
Sandy Perle Tel:(714) 545-0100 / (800) 548-5100
Director, Technical Extension 2306
ICN Worldwide Dosimetry Service Fax:(714) 668-3149
ICN Pharmaceuticals, Inc. E-Mail: sandyfl@earthlink.net
ICN Plaza, 3300 Hyland Avenue E-Mail: sperle@icnpharm.com
Costa Mesa, CA 92626
Personal Website: http://sandyfl.nukeworker.net
ICN Worldwide Dosimetry Website: http://www.dosimetry.com
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