Waste Management 2007 Annual Report Download - page 41

(a) In 2007, we acquired two landfills, sold three landfills, closed four landfills and discontinued operations at one
operating contract site.
(b) These amounts include 2.4 million tons at December 31, 2007 and 2.0 million tons at December 31, 2006 that
were received at our landfills but were used for beneficial purposes and generally were redirected from the
permitted airspace to other areas of the landfill. Waste types that are frequently identified for beneficial use
include green waste for composting and clean dirt for on-site construction projects.
When a landfill we own or operate (i) reaches its permitted waste capacity; (ii) is permanently capped; and
(iii) receives certification of closure from the applicable regulatory agency, management of the site, including
remediation activities, is generally transferred to our closed sites management group. In addition to the 277 active
landfills we managed at December 31, 2007, we managed 187 closed landfills.
Transfer. At December 31, 2007, we owned or operated 341 transfer stations in North America. We deposit
waste at these stations, as do other waste haulers. The solid waste is then consolidated and compacted to reduce the
volume and increase the density of the waste and transported by transfer trucks or by rail to disposal sites.
Access to transfer stations is often critical to third-party haulers who do not operate their own disposal facilities
in close proximity to their collection operations. Fees charged to third parties at transfer stations are usually based
on the type and volume or weight of the waste transferred, the distance to the disposal site and general market
factors.
The utilization of our transfer stations by our own collection operations improves internalization by allowing
us to retain fees that we would otherwise pay to third parties for the disposal of the waste we collect. It allows us to
manage costs associated with waste disposal because (i) transfer trucks, railcars or rail containers have larger
capacities than collection trucks, allowing us to deliver more waste to the disposal facility in each trip; (ii) waste is
accumulated and compacted at transfer stations that are strategically located to increase the efficiency of our
collection operations; and (iii) we can retain the volume by managing the transfer of the waste to one of our own
disposal sites.
The transfer stations that we operate but do not own are generally operated through lease agreements under
which we lease property from third parties. There are some instances where transfer stations are operated under
contract, generally for municipalities. In most cases we own the permits and will be responsible for the regulatory
requirements relating to the operation, closure and post closure of the transfer station.
Wheelabrator. As of December 31, 2007, we owned or operated 16 waste-to-energy facilities and five
independent power production plants, or IPPs, that are located in the Northeast and in Florida, California and
Washington.
At our waste-to-energy facilities, solid waste is burned at high temperatures in specially designed boilers to
produce heat that is converted into high-pressure steam. As of December 31, 2007, our waste-to-energy facilities
were capable of processing up to 21,000 tons of solid waste each day, a decrease in capacity of approximately 3,000
tons per day from December 31, 2006. In 2007, our waste-to-energy facilities received and processed 7.1 million
tons of solid waste, or approximately 19,500 tons per day. In 2006, our waste-to-energy facilities received and
processed 7.8 million tons of solid waste, or approximately 21,300 tons per day. The decline in both the capacity and
production of our waste-to-energy facilities during 2007 was due to the termination of an operating and main-
tenance agreement in May 2007.
Our IPPs convert various waste and conventional fuels into steam. The plants burn wood waste, anthracite coal
waste (culm), tires, landfill gas and natural gas. These facilities are integral to the solid waste industry, disposing of
urban wood, waste tires, railroad ties and utility poles. Our anthracite culm facility in Pennsylvania processes the
waste materials left over from coal mining operations from over half a century ago. Ash remaining after burning the
culm is used to reclaim the land damaged by decades of coal mining.
We sell the steam produced at our waste-to-energy facilities and IPPs to industrial and commercial users.
Steam that is not sold is used to generate electricity for sale to electric utilities. Fees charged for steam and
electricity at our waste-to-energy facilities and IPPs are generally subject to the terms and conditions of long-term
contracts that include interim adjustments to the prices charged for changes in market conditions such as inflation,
natural gas prices and other general market factors.
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