Since 1998, waste received for disposal at the Tontitown Landfill has been placed in a double composite liner system consisting of a primary composite liner and a secondary composite liner on the bottom. This double composite liner system exceeds landfill design requirements (Subtitle D) of the U.S. Environmental Protection Agency. The Tontitown Landfill has been designed in accordance with the established design standards of the Arkansas Department of Environmental Quality (ADEQ) as set forth by Regulation 22. Complete information on ADEQ solid waste regulations can be found at www.adeq.state.ar.us.

The ADEQ inspects the Tontitown Landfill on a regular basis. These unannounced inspections include a thorough review of facility operations and records. The Tontitown Landfill consistently meets or exceeds state and federal environmental standards.

In April 2002, the ADEQ temporarily closed the Tontitown Landfill to investigate certain allegations made by a former Waste Management employee.

During the investigation, Waste Management contracted with GeoSyntec, an independent environmental engineering firm. GeoSyntec conducted a technical review of the foundation and other conditions at the Class 1 landfill to ensure the safety and integrity of the landfill and its liner system. During this time, the ADEQ also conducted on-site inspections and additional field investigations.

Geosyntec concluded in its July 2002 report that there was "no information to suggest there has been any failure of the bottom liner system. Moreover, based on the extensive material we reviewed and the geological and engineering analyses we performed, we would not expect such a failure in the future. We would deem that the Tontitown Landfill is operationally and structurally sound."

In August 2002, the ADEQ re-opened the Tontitown Landfill and noted there was "no evidence of a liner breach at the Tontitown Landfill." Waste Management acknowledged there was some localized waste settlement at the landfill due to loose, uncompacted trash placed in the landfill. Settlement of the waste mass is a recognized and regular occurrence at landfills and does not, in and of itself, pose environmental concerns.

The only problem ADEQ found was Waste Management's failure to keep adequate daily records for its leachate collection system and liquid detection system. The record-keeping was immediately improved and corrected by Waste Management.

Waste Management resolved the alleged non-compliance by entering into a Consent Administrative Order, paying $175,000 in fines and $125,000 in supplemental environmental projects.

Waste Management fully cooperated with the ADEQ during its four-month investigation of very serious, but unwarranted, allegations made about the safety of the Tontitown Landfill. During this time, Waste Management continued to serve its Northwest Arkansas customers by adding additional temporary workers and trucks and hauling waste to other permitted facilities.