Jeremy L. Dillon
RW Monitor
3/27/2015
Waste Control Specialists and EnergySolutions are embattled in a legal dispute over alleged “monopolistic behavior” by WCS for refusing to enter into a disposal contract to take EnergySolutions’ Semprasafe-produced down-blended Class B and C low-level radioactive waste. Following the sale of Studsvik’s portion of the Semprasafe joint venture to EnergySolutions last year, WCS sought to terminate the contract it had held with Studsvik and told customers it would no longer accept waste from the EnergySolutions facility. EnergySolutions threatened legal recourse for behavior it deemed “anti-competitive” because of WCS’ control of Class B and C disposal.
WCS Files Suit…
In response, WCS preemptively filed a lawsuit on Feb. 19 in the local Andrews County court. “In its Petition, WCS seeks a declaratory judgment that it has no obligation to negotiate or enter into a contract with EnergySolutions for the disposal of low-level radioactive waste,” the filing states. “WCS also seeks a declaratory judgment that it has the right to tell current and potential customers that it will not enter into a contract to dispose of waste received from EnergySolutions.” Only WCS currently accepts Class B and C waste from states out-of-compact. EnergySolutions operates the Barnwell disposal facility in South Carolina, which can accept Class B and C waste, but only from members of the Atlantic Compact.
…EnergySolutions Counter Sues
EnergySolutions responded with a counter-suit of its own, dated March 13, which alleges anti-competitive conduct from WCS for trying to harm a competitor to maintain its monopoly standing. “With flagrant anticompetitive intent, WCS also has been telling EnergySolutions’ customers that WCS intends to end its relationship with Erwin ResinSolutions, LLC and EnergySolutions,” EnergySolutions alleged in the filing. “WCS deliberately encouraged those customers not to conduct business with EnergySolutions, knowing that EnergySolutions is a smaller rival that is able to compete in the purchase of Class B and C waste through down-blending. It is clear that WCS’s intent in making these communications was to make it impossible for EnergySolutions to continue its downblending activities, thereby protecting the fruits of its monopoly position in Class B and C waste disposal.”
Due to EnergySoltuions anti-trust claims in its lawsuit, the venue moved to a federal court, the United States District Court for the Western District of Texas, Midland-Odessa Division. When asked for comment this week, WCS said in a written statement: “We believe the claims by Energy Solutions are groundless and will defend vigorously against them. We have no further comment.” EnergySolutions declined to comment this week.
