related to underground storage tanks will have a material adverse eÅect on our Ñnancial condition, results of
operations or cash Öows.
Finally, with regard to our solid waste transportation operations, we are subject to the jurisdiction of the
Surface Transportation Board and are regulated by the Federal Highway Administration, OÇce of Motor
Carriers, and by regulatory agencies in states that regulate such matters. Various states have enacted or
promulgated, or are considering enacting or promulgating, laws and regulations that would restrict the
interstate transportation and processing of solid waste. In 1978, the U.S. Supreme Court ruled that a law that
restricts the importation of out-of-state solid waste was unconstitutional; however, states have attempted to
distinguish proposed laws from that involved in and implicated by that ruling. In 1994, the Supreme Court
ruled that a Öow control law, which attempted to restrict solid waste from leaving its place of generation,
imposed an impermissible burden upon interstate commerce, and, therefore, was unconstitutional; however,
states have also attempted to distinguish proposed laws from that involved in and implicated by that ruling. In
response to these Supreme Court rulings, the U.S. Congress has considered passing legislation authorizing
states and local governments to restrict the free movement of solid waste in interstate commerce. If federal
legislation authorizing state and local governments to restrict the free movement of solid waste in interstate
commerce is enacted, such legislation could adversely aÅect our operations.
We have established a reserve for landÑll and environmental costs, which includes landÑll site Ñnal
capping, closure and post-closure costs. We periodically reassess such costs based on various methods and
assumptions regarding landÑll airspace and the technical requirements of Subtitle D of RCRA and adjust our
rates used to expense Ñnal capping, closure and post-closure costs accordingly. Based on current information
and regulatory requirements, we believe that our reserves for such landÑll and environmental expenditures are
adequate. However, environmental laws may change, and there can be no assurance that our reserves will be
adequate to cover requirements under existing or new environmental laws and regulations, future changes or
interpretations of existing laws and regulations, or the identiÑcation of adverse environmental conditions
previously unknown to us. See ""Management's Discussion and Analysis of Financial Condition and Results of
Operations Ì LandÑll and Environmental Matters'' and ""Risk Factors Ì Compliance with environmental
regulation may impede our growth.''
Liability Insurance and Bonding
The nature of our business exposes our company to the risk of liabilities arising out of our operations,
including possible damages to the environment. Such potential liabilities could involve, for example, claims for
remediation costs, personal injury, property damage and damage to the environment in cases where we may be
held responsible for the escape of harmful materials; claims of employees, customers or third parties for
personal injury or property damage occurring in the course of our operations; or claims alleging negligence in
the planning or performance of work. We could also be subject to Ñnes and civil and criminal penalties in
connection with alleged violations of regulatory requirements. Because of the nature and scope of the possible
environmental damages, liabilities imposed in environmental litigation can be signiÑcant. Our solid waste
operations have third party environmental liability insurance with limits in excess of those required by permit
regulations, subject to certain limitations and exclusions. However, we cannot assure you that the limits of
such environmental liability insurance would be adequate in the event of a major loss, nor can we assure you