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FOR THE DISTRICT OF COLUMBIA
STIPULATION REGARDING INTERPRETATION OF MFJ AND FOR ENTRY OF AN ENFORCEMENT ORDER WHEREAS, §§ II.C.1.a.(1) & (2) of the Modified Final Judgment ("MFJ") in United States v. Allied Waste Industries, Inc. and Browning-Ferris Industries, Inc., entered by this Court on May 19, 2000, required Allied Waste Industries, Inc. ("Allied") to divest the SEMASS waste-to-energy incinerator ("SEMASS") and related airspace disposal rights at Allied's Fall River Landfill "for a period of time up to the closure or attainment of permitted capacity of the landfill" (the "Disposal Rights") in order to preserve competition in the market for solid waste disposal in southeastern Massachusetts; WHEREAS, pursuant to the MFJ, Allied divested both SEMASS and the Disposal Rights to American Ref-Fuel Company ("ARC"); WHEREAS, to implement the Disposal Rights divested pursuant to the MFJ, Allied and ARC entered an agreement, effective October 1, 2000, ("Disposal Agreement"); WHEREAS, the Antitrust Division of the United States Department of Justice reviewed and approved the Disposal Agreement as a condition of its approval of Allied's acquisition of Browning-Ferris Industries, Inc.; WHEREAS, on or about April 6, 2004, one subsection or "cell" (designated as Phase II, Cell D) of the Fall River Landfill reached its capacity prior to the opening of a new cell causing a temporary suspension of the operation of the Fall River Landfill; WHEREAS, Allied claimed that the Disposal Rights expired as a result of the temporary and unintended interruption in the availability of operating capacity at the Fall River Landfill and further claimed that as a result, Allied had discharged its obligations under the MFJ to accept ash and bypass waste from SEMASS at the Fall River Landfill; WHEREAS, there is an action pending in the Superior Court for Massachusetts styled SEMASS Partnership v. Browning-Ferris Industries, Inc., Civil Action No. 03-3223 (Middlesex County) (the "State Court Action"), in which Allied contends, among other things, that it discharged its obligations under the Disposal Agreement to accept ash and bypass waste at the Fall River Landfill; WHEREAS, SEMASS must be able to exercise the Disposal Rights in order to remain an effective competitor in the relevant market for solid waste disposal and to fulfill the terms of the MFJ; WHEREAS, the United States on August 2, 2004, filed a Petition For An Order To Show Cause Why Respondent Allied Waste Industries, Inc., Should Not Be Found in Civil Contempt ("Petition to Show Cause"). The Petition to Show Cause alleged that: (1) the Disposal Rights did not expire upon the temporary interruption in the availability of permitted capacity, (2) Allied's premature termination of the Disposal Rights violated § II.C.1.a.(2) of the MFJ, and (3) Allied remains obligated under the MFJ to accept ash and bypass waste from SEMASS at the Fall River Landfill for the remaining life of the landfill according to terms and conditions of the Disposal Agreement, which was reviewed and approved by the Antitrust Division; AND WHEREAS, the United States and Allied have agreed upon a resolution of this matter without any admission or determination of wrongdoing by Allied and without any findings or adjudication with respect to any issue of fact or law arising from the Petition to Show Cause; IT IS HEREBY STIPULATED AND AGREED by and between the undersigned parties that:
Dated: August 2, 2004
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