Solid Waste & Recycling

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News (March 01, 2005)

EMS dispute with former CEO...


EMS dispute with former CEO

On January 17, 2005, Environmental Management Solutions Inc. (EMS) removed founder Frank D’Addario from the company. D’Addario founded the company in 1995 as a small environmental consulting firm that grew into a substantial publicly-traded company (TSX: EMS) that provides integrated site remediation and organic waste management solutions across Canada and in the northern United States. Prior to founding EMS, D’Addario headed the federal governments National Contaminated Sites Remediation Program.

In 2004, EMS brought in an independent board of directors, evidently in order to close a $20-million financing completed early last year. On September 28, 2004, D’Addario resigned as CEO after the board received an audit committee report outlining various related-party transactions. At that time, D’Addario was given the role of Vice Chair responsible for business development. The company initiated corrective and remedial actions on matters identified in the report.

In late 2004, the board brought in Tony Busari as President and CEO. Busari was formerly of Growth Equity Partners and, prior to that, Capital Environmental. An expanded audit and investigative report presented to the board on January 11, 2005 caused the EMS board to terminate the employment of D’Addario. D’Addario has direct and indirect control over approximately 26.2 per cent of the issues and outstanding common shares of EMS. He has launched a “dissident shareholder proxy” and will be granted a shareholder vote to try to take back control of the company. This vote might be scheduled as part of the EMS annual general meeting on April 29. The determination on the shareholder is expected to be finalized soon. None of the claims against Mr. D’Addario have been proven in a court or other official venue.

2005 Canadian Waste and Recycling Expo to be held in Vancouver, BC

Due to overwhelming feedback from exhibitors, the 2005 Canadian Waste and Recycling Expo/Canadian Public Works Expo will move to the Vancouver Exhibition and Convention Centre in Vancouver, British Columbia. The show organizers say “The move promises to revitalize the event with fresh ideas and programs as well as new attendee groups and many first-time exhibitors.” The show will be held October 26 & 27, 2005.

For exhibitor information for the Canadian Waste & Recycling Expo, contact:

Letters A-M:

Arnie Gess

877-534-7285

agess@falconridgegroup.com

Letters N-Z:

Beth Wilson

866-512-2173

beth.wilson@usa.messefrankfurt.com

For the Canadian Public Works Expo, contact:

Andrea Paulinelli

866-984-8016, ext. 438

andrea.paulinelli@usa.messefrankfurt.com

Lawsuit threatens Ottawa’s Trail Road landfill expansion

Ottawa’s main landfill — the large Trail Road facility — will be filled within three years unless the province signs an agreement to see it expanded, says Anne-Marie Fowler, the city’s solid waste manager. Yet the signing of such an agreement is being delayed by a lawsuit in Napanee that has halted work on 12 Ontario landfills. The city may have to obtain an emergency extension for the Trail Road landfill if it can’t get permission for an expansion, according to Fowler.

The lawsuit, sometimes called the Sutcliffe decision, presents a challenge to “scoped” environmental assessments. These allow project proponents to not include all options in their evaluation, but instead focus on the most likely one. The Napanee lawsuit was brought against a private company that sought to expand a landfill in eastern Ontario using a scoped EA. That lawsuit is expected to go to the Supreme Court of Canada. Subsequent uncertainty about environmental assessment in Ontario has thrown numerous other projects into limbo, and some projects have simply been shelved until the process is clarified, since no one wants to spend millions of dollars seeking permission to build or expand a landfill when the approvals process is a moving target.

If an emergency extension becomes necessary but is not obtained, Ottawa has the option of sending its garbage to the Carp landfill or the Moose Creek landfill north of Cornwall. Fowlers doesn’t think the city will have to seek a more radical solution like export to the United States.

Used-oil recycling associations form National Advisory Council

Five provincial used-oil materials recycling associations have formed the National Used Oil Material Advisory Council (NUOMAC). The new organization will coordinate the Canada-wide used-oil recycling effort and encourage consistent national standards for used-oil stewardship programs.

The non-profit associations are from Quebec, Manitoba, Saskatchewan, Alberta and British Columbia. The materials collected are used oil, used oil filters and used plastic oil containers.

“Used oil is the largest single source of hazardous recyclable waste material in Canada and must be disposed of properly,” stated David Dingle, recently appointed chairman of NUOMAC. “Since the first program was launched in 1997, this recycling model has gained acceptance throughout western Canada and now Quebec. Our goal is to have fully integrated programs in all provinces and territories of Canada.”

Under the program, a network of return collection points is established. The program is funded, not by a government tax, but by an Environmental Handling Charge (EHC) remitted by all wholesale suppliers (first sellers) on lubricating products including filters and plastic containers. The EHC is remitted to the association(s) in the province(s) in which the wholesaler does business. A Return Incentive (RI) is then paid to private sector collectors and processors to pick up and deliver to government-approved recycling facilities. The establishment of NUOMAC was formally approved at a joint meeting of all five provincial Associations on September 28, 2004, in Kelowna, British Columbia.

For information visitwww.usedoilrecycling.com


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