FloydCotter,PEJuly12,2016

Site History of NABORS LandfillsMountain Home, Arkansas

Introduction

• ExaminationoftheissuesthatledtotheStateofArkansastakingoverthesiteandspending$20Milliononclosureandcorrectivemeasures.

Location Map

Aerial Photo

Landfill Disposal Units

Area1-2

Area1-3

Class4

Area1-1Class4

Site History

• Originallypermittedin1979• OwnedbyRLHuntil2006• PurchasedbyNorthwestArkansasRegionalSolidWasteManagementDistrictin2006

• LastreceivedwasteNovember2012

NABORS 13 County Region

Site Issues Leading to 2012 Bankruptcy

• OriginalPurchasePrice/DebtLoad• CorrectingOverfill• ExpensiveLeachateDisposal• GroundwaterContamination• DecliningWasteReceipt• Damco TireBalingSite

Original Purchase Price

$12Millioninbonddebtwasrequiredfororiginalpurchaseandinitialcellconstruction

Purchasepriceincludedlandfillandhaulingcompany

2006thesitereceivedapproximately90,000tons

Area1-2wasoverfilledatthetimeofpurchase

Overfill Area 1-2

Class 4 Overfill

Total Site Overfill

• Approximately230,000CubicYards

Leachate Disposal

• Leachatehastobetransported125milestoSpringfieldMofordisposal

• Costfortransport/disposalisapproximately$0.26Pergallon.

• Sitegeneratedover1,500,000gallonsin2012

Groundwater Contamination

• TypicallowlevelsofVOCs• Causedbylandfillgasmigration• AssessmentofCorrectiveMeasuresconcludedthataLFGcollectionsystemisrequired.

Declining Waste Volume

• WesternCountiescouldobtaincheaperdisposalatotherlandfills

• NABORShadflowcontrolauthoritybutchosenottoenforceit

• 2006WasteReceiptapproximately90,000tons• 2012WasteReceiptapproximately38,000tons

Damco Tire Site

Damco Tire Site

• Notaclearunderstandingofcontractlanguage• Companyprovided“BalingServices”notdisposal• IndividualconstructingthepondpassedandseveralyearsofbaledtirearenowresponsibilityofNABORS

Damco Tire State

2012

• Filedforbankruptcy• Defaultedon$12milbonds• Closedthelandfill

2014

• InresponsetomountingpressurefromCitizensforCleanWater,ArkansasLegislatureauthorizedfundstoproperlyclosethesite.

• BankruptcycourtruledthatNABORScannotgobankrupt.

• NABORSisanentitywithtaxingauthorityandhavenotexhaustedallavenuesforgeneratingrevenue.

• Courtappointedareceivertodeviseaplan

Current Condition

• Engineersestimateforclosure/correctivemeasuresis$15,900,000

• Original$12,000,000inbonddebtremains• Citizensofthestateand/orNABORSarelikelytofacetaxincreasestopaybills

• Closureconstructionisexpectedtobeginsoon

Question?

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