Quarterly report pursuant to Section 13 or 15(d)

Note 8 - East Tennessee Materials and Energy Corporation ("M&EC")

Note 8 - East Tennessee Materials and Energy Corporation ("M&EC")

3 Months Ended

Mar. 31, 2017

Asset Retirement Obligation Disclosure [Text Block]

8.	East Tennessee Materials and Energy Corporation (“M&EC”)

The Company continues its plan to close its M&EC facility by the end of the M&EC’s lease term of

January

21,

2018.

Operations at the M&EC facility are continuing during the remaining term of the lease and the facility is in the process of transitioning waste shipments and operational capabilities to our other Treatment Segment facilities, subject to customer requirements and regulatory approvals.

Simultaneously, the Company continues with the required clean-up/maintenance procedures at M&EC’s Oak Ridge, Tennessee facility in accordance with M&EC’s Resource Conservation and Recovery Act (“RCRA”) permit requirements.

March

31,

2017,

total accrued closure liabilities for our M&EC subsidiary totaled approximately

$2,906,000

which are recorded as current liabilities. At

December

31,

2016,

M&EC had long-term closure liabilities of approximately

$881,000

which were reclassified to current at

March

31,

2017.

The following reflects changes to the closure liabilities for the M&EC subsidiary from year end

2016:

Amounts in thousands
Balance as of December 31, 2016		3,058
Accretion expense		47
Payments		(199	)
Balance as of March 31, 2017	$	2,906

During the

first

quarter of

2017

and

2016,

M&EC’s revenues were approximately

$3,379,000

and

$1,377,000,

respectively.