Waste Management 2014 Annual Report Download - page 83

equipment we furnish, type and volume or weight of the waste collected, distance to the disposal
facility, labor costs, cost of disposal and general market factors. As part of the service, we provide steel
containers to most customers to store their solid waste between pick-up dates. Containers vary in size
and type according to the needs of our customers and the restrictions of their communities. Many are
designed to be lifted mechanically and either emptied into a truck’s compaction hopper or directly into
a disposal site. By using these containers, we can service most of our commercial and industrial
customers with trucks operated by only one employee.
• For most residential collection services, we have a contract with, or a franchise granted by, a
municipality, homeowners’ association or some other regional authority that gives us the exclusive
right to service all or a portion of the homes in an area. These contracts or franchises are typically for
periods of three to six years. We also provide services under individual monthly subscriptions directly
to households. The fees for residential collection are either paid by the municipality or authority from
their tax revenues or service charges, or are paid directly by the residents receiving the service.
Landfill. Landfills are the main depositories for solid waste in North America. At December 31, 2014, we
owned or operated 247 solid waste landfills and five secure hazardous waste landfills, which represents the
largest network of landfills in North America. Solid waste landfills are constructed and operated on land with
engineering safeguards that limit the possibility of water and air pollution, and are operated under procedures
prescribed by regulation. A landfill must meet federal, state or provincial, and local regulations during its design,
construction, operation and closure. The operation and closure activities of a solid waste landfill include
excavation, construction of liners, continuous spreading and compacting of waste, covering of waste with earth
or other acceptable material and constructing final capping of the landfill. These operations are carefully planned
to maintain environmentally safe conditions and to maximize the use of the airspace.
All solid waste management companies must have access to a disposal facility, such as a solid waste
landfill. The significant capital requirements of developing and operating a landfill serve as a barrier to landfill
ownership and, as a result, third-party haulers often dispose of waste at our landfills. It is usually preferable for
our collection operations to use disposal facilities that we own or operate, a practice we refer to as internalization,
rather than using third-party disposal facilities. Internalization generally allows us to realize higher consolidated
margins and stronger operating cash flows. The fees charged at disposal facilities, which are referred to as
tipping fees, are based on several factors, including competition and the type and weight or volume of solid waste
deposited.
Under environmental laws, the federal government (or states with delegated authority) must issue permits
for all hazardous waste landfills. All of our hazardous waste landfills have obtained the required permits,
although some can accept only certain types of hazardous waste. These landfills must also comply with
specialized operating standards. Only hazardous waste in a stable, solid form, which meets regulatory
requirements, can be deposited in our secure disposal cells. In some cases, hazardous waste can be treated before
disposal. Generally, these treatments involve the separation or removal of solid materials from liquids and
chemical treatments that transform waste into inert materials that are no longer hazardous. Our hazardous waste
landfills are sited, constructed and operated in a manner designed to provide long-term containment of waste. We
also operate a hazardous waste facility at which we isolate treated hazardous waste in liquid form by injection
into deep wells that have been drilled in certain acceptable geologic formations far below the base of fresh water
to a point that is safely separated by other substantial geological confining layers.
Transfer. At December 31, 2014, we owned or operated 298 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 critical to haulers who collect waste in areas not in close proximity to disposal
facilities. Fees charged to third parties at transfer stations are usually based on the type and volume or weight of
6