A memorandum written by Nebraska Compact Commissioner F. Gregory Hayden suggests that American Ecology, parent corporation of "low-level" waste dump contractor U.S. Ecology, is essentially broke and "has been suffering a combination of increasing debt and falling profits."
Moreover, the memo states that "the profitability of American Ecology has fallen to a level that its net income per ;year for all its operations is less that what is receives each year from the Central Interstate Compact."
Given that U.S. Ecology also receives money from the Southwestern Compact for the proposed Ward Valley "low-level" radioactive waste dump, it seems that the company is relying on contracts with radioactive waste dump states, where the dumps themselves do not exist, just to survive.
According to the memo, which was sent by Hayden to the other Commissioners of the Central Interstate Compact, "American Ecology and US Ecology are expected to be responsible for assurances, fees, and as guarantors for finance to build the Boyd County [Nebraska] facility. If the contractor is not in a financial position to build the disposal site, the Central Interstate Compact will be expected to provide the financing to build it. Ultimately, this means the citizens of the five states...."
The memo also notes that all interest charges for the company have been charged solely to the proposed Nebraska and California dumps, despite the company's other interests. In addition, the memo states that a full 78% of the purchase price American Ecology paid for the Quadrex Corporation last year was for "goodwill," meaning that "the purchase price was 78% above the value of the tangible assets."