Thursday, May 6, 2004

NWS ready to leave

Landfill opening could depend on sale of operating contract

By Jamie Turner
Staff Writer

When and if Battle Creek Landfill reopens, it’s likely it won’t be under the operation of National Waste Services (NWS) of Virginia.

The Page County Board of Supervisors aims to dispose of the waste management company. At the same time, NWS is looking for a way out.

After a 12-hour mediation session April 20 in Richmond, sources close to the matter say those attending had one common goal. They didn’t want Battle Creek Landfill to reopen with NWS in charge.

The Virginia Department of Environmental Quality (DEQ), the agency that revoked Page County’s operating permit March 10 — a move that closed the 5-year-old disposal facility — wants the landfill operated properly.

Capital Source Finance LLC of Maryland, who has invested $5 million into Battle Creek, is also in favor of ousting NWS, according to reports from the meeting.

For its part, NWS is also looking for a way to pull out of its contract with Page County. It appears NWS does not have enough financing to support making necessary improvements to slopes at Battle Creek, a project necessary to make the facility compliant with state standards. It will also cost the company to move its equipment back to Page.

That means NWS is looking to sell the rights to its contract with Page — signed in December 2001 — to another waste management company. Last week, NWS officials confirmed this, saying it was an idea they were exploring. Multiple attempts to reach NWS officials for further comment were unsuccessful.

While Page County, DEQ and Capital Source are interested in securing another landfill operator for Battle Creek, NWS wants to ensure the tonnage limit will continue to allow a daily intake of at least 1,000 tons.

Page County would like to see the daily tonnage drop to 750 tons. DEQ maintains the county’s permit only allows the disposal of an average of 250 tons per day.

The issue of tonnage has remained the crux of the ongoing dispute between DEQ, Page County and NWS.

In 2001, the county signed a contract that upped average daily tonnage from 250 to 1,500. Tonnage amounts began increasing at the landfill prior to that contract, growing to an average of 500 tons, then 800, then, earlier this year, about 1,200 tons per day before the landfill was closed.

NWS is willing to decrease the daily intake of trash to 1,200 tons or even 1,000 tons. But Page County and DEQ say it’s not enough.

In the wake of a Richmond City Circuit Court injunction in April that called for reopening Battle Creek because NWS was suffering financial harm, involved parties have been in mediation to try and reach an agreement for opening the landfill’s gates again.

But until an accord is reached between DEQ, NWS and Page County, Battle Creek will remain closed. During the negotiations, Page County is making every effort to dump NWS.

Page County’s attorney on landfill matters, James E. Cornwell Jr., filed a motion with the U.S. Bankruptcy Court in Kent County, Del., to intervene in court proceedings involving NWS.

NWS filed Chapter 11 bankruptcy March 4, fearing Page County would attempt to void Battle Creek’s operating contract. Filing under Chapter 11 protects the company from such action, NWS officials said.

If the court rules in favor of allowing Page County to intervene, the county could act on a January notice of default issued to NWS. If the company fails to cure operational deficiencies and structure problems cited at Battle Creek by county landfill inspectors, the contract could be voided.

Cornwell is hoping the court makes a decision soon.

With landfill matters remaining in court, Page Administrator E.E. “Buddy” Burge II is trying to make temporary plans to ensure the county has a place to dump local waste.

During a May 4 work session, Burge proposed a resolution to county supervisors that would allow him to explore establishing a temporary transfer station in Page. Burge said the county’s contract with Warren County expires June 12, leaving no place to take local solid waste.

We can be reached at pagenews@shentel.net.