American Ecology Settles Radioactive Waste Lawsuit

American Ecology, the Agoura Hills waste management company, announced last week that it has reached a settlement with the state of Illinois over a longstanding lawsuit about a low-level radioactive waste dump the company once operated near Sheffield, Ill.

The dump has been a problem for the company since 1978 when Illinois filed a lawsuit seeking $97 million in damages. Low-level radioactive waste has been leaking from the site. Uncertainty over the outcome of the lawsuit is the reason American Ecology’s auditors have qualified their opinion on the company’s financial results.

According to the terms of the settlement, the company will do some more repairs on the radioactive portion of the dump and maintain it for 10 years. Thereafter, Illinois will be responsible for care and maintenance.

$8-Million Agreement

American Ecology, during its second quarter, also will set aside a substantial reserve to cover repairs. The company said the total cost of the agreement is more than $8 million.

Another suit filed by Illinois concerning the hazardous chemicals portion of the dump was dismissed by a judge in March, but the state is expected to refile the case.

American Ecology, which was spun off in 1984 by the Los Angeles conglomerate Teledyne, also faces some repair costs at another low-level radioactive dump it operated in Maxey Flats, Ky.

That dump also is leaking and will be cleaned up under direction of the U.S. Environmental Protection Agency’s Superfund. American Ecology’s share of that cleanup bill has not been determined.