Quarterly report pursuant to Section 13 or 15(d)

East Tennessee Materials and Energy Corporation (M&EC)

East Tennessee Materials and Energy Corporation (M&EC)
6 Months Ended
Jun. 30, 2018
Asset Retirement Obligation Disclosure [Abstract]  
East Tennessee Materials and Energy Corporation ("M&EC")

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


The Company continues its plan to close its M&EC facility. Operations at the M&EC facility are limited to the decommissioning and deconstruction of leased premises and related improvements, and equipment removal. The Company continues to transition operational capabilities to our other Treatment Segment facilities, subject to customer requirements and regulatory approvals. The Company continues with closure and decommissioning activities in accordance with M&EC’s license and permit requirements and currently expects to complete on-site M&EC facility closure activities on or before September 30, 2018.


At June 30, 2018, total accrued closure liabilities for our M&EC subsidiary totaled approximately $924,000 which are recorded as current liabilities. During the second quarter of 2018, the Company recorded an additional $1,215,000 in closure costs and current closure liabilities due to changes in estimated future closure costs. The following reflects changes to the closure liabilities for the M&EC facility from year end 2017:


Amounts in thousands      
Balance as of December 31, 2017   $ 2,791  
Accretion expense     19  
Adjustment to closure liabilities     1,215  
Payments     (3,101 )
Balance as of June 30, 2018   $ 924  


Revenues for the M&EC subsidiary were $76,000 and $132,000 for the three and six months ended June 30, 2018, respectively, and $1,692,000 and $5,072,000 for the corresponding periods of 2017, respectively.