In connection with our waste management services, we process both hazardous and non-hazardous waste, which we transport to our own, or other, facilities for destruction or disposal. As a result of disposing of hazardous substances, in the event any cleanup is required, we could be a potentially responsible party for the costs of the cleanup notwithstanding any absence of fault on our part.

 

In the normal course of conducting our business, we are involved in various litigation. We are not a party to any litigation or governmental proceeding which our management believes could result in any judgments

or fines against us that would have a material adverse effect on our financial position, liquidity or results of future operations.

The Company has a -year finite risk insurance policy entered into in with American International Group, Inc. (“AIG”), which provides financial assurance to the applicable states for our permitted facilities in the event of unforeseen closure. The policy, as amended, provides for a maximum allowable coverage of and has available capacity to allow for annual inflation and other performance and surety bond requirements. All of the required payments for this finite risk insurance policy, as amended, were made by During the quarter of the Company’s DSSI subsidiary recalculated the state mandated closure obligation requirement resulting in a reduction in the financial requirement of approximately As of our financial assurance coverage amount under this policy totaled approximately The Company has recorded and in sinking fund related to this policy in other long term assets on the accompanying Consolidated Balance Sheets as of and respectively, which includes interest earned of and on the sinking fund as of and respectively. Interest income for the months ended and was approximately and respectively. If the Company so elects, AIG is obligated to pay the Company an amount equal to of the sinking fund account balance in return for complete release of liability from both us and any applicable regulatory agency using this policy as an instrument to comply with financial assurance requirements.

 

In the Company entered into a finite risk insurance policy for our PFNWR (“PFNWR policy”) facility with AIG. The policy provided an initial of financial assurance coverage with an annual growth rate of which at the end of the year term policy, provides maximum coverage of The Company has made all of the required payments on this policy. As of our financial assurance coverage amount under this policy totaled approximately The Company has recorded and in our sinking fund related to this policy in other long term assets on the accompanying Consolidated Balance Sheets as of and respectively, which includes interest earned of and on the sinking fund as of and respectively. Interest income for the months ended and was approximately and respectively. This policy is renewed annually at the end of the year term with a nominal fee for the variance between the coverage requirement and the sinking fund balance. The Company has renewed this policy annually from to (with fees ranging from to annually). All other terms of the policy remain substantially unchanged.

 

During the latter part of the Company initiated a plan to secure other options in providing financial assurance coverage for our PFNWR facility, including acquiring a separate bonding mechanism, which would enable the Company to cancel the PFNWR policy, thereby allowing for the release of the sinking fund securing the PFNWR policy as discussed above. The Company is currently waiting for final approval on the release of the PFNWR policy from Washington state regulators. Once the Company obtains this release, the Company will cancel the PFNWR policy with AIG which would result in the release of the in sinking fund securing the PFNWR back to the Company. The new bonding mechanism in the amount of approximately (“new bond”) which is to provide financial assurance for the PFNWR facility will require approximately in collateral and will be provided for by the in sinking fund to be released by AIG. The Company expects this transaction to be completed by the end of the quarter of After the release of the in finite sinking fund by AIG and payment of the required collateral for the new bond, the Company expects to receive the approximately remaining in finite sinking funds which will be used to pay down our revolving credit.

 

From time to time, we are required to post standby letters of credit and various bonds to support contractual obligations to customers and other obligations, including facility closures. As of the total amount of these bonds and letters of credit outstanding was approximately of which the majority of the amount relates to various bonding requirements.

 

The Company leases certain facilities and equipment under operating leases. The following table lists future minimum rental payments as of under these leases for our continuing operations (in thousands):

Total rent expense was and for the years ended and respectively, for our continuing operations. These amounts included payments on non-cancelable operating leases of approximately and for the years ended and respectively. The remaining rent expense was for non-contractual monthly and daily rentals of specific use vehicles, machinery and equipment.