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GROWTH AND CONTRACT TRANSACTIONS (Notes)
6 Months Ended
Jun. 30, 2015
Business Development [Abstract]  
Business Development and Organic Growth
NOTE 3. GROWTH AND CONTRACT TRANSACTIONS
New Business / Assets
Advanced Waste Services Acquisition
In May 2015, we acquired Advanced Waste Services, Inc. ("AWS"), an environmental services firm headquartered in Milwaukee, Wisconsin for $48 million. AWS specializes in non-hazardous waste collection, transportation, disposal and on-site cleaning services for commercial and manufacturing clients located throughout the Midwestern United States. The purchase price allocation includes $8 million of property, plant & equipment, $19 million of intangible assets, $6 million of current assets and $4 million of current liabilities with the remaining $19 million recognized as goodwill. The intangible assets consist primarily of customer relationships which will be amortized over a useful life of 15 years.
The acquisition of AWS expands our presence in the environmental services sector and allows us to drive non-hazardous industrial waste volumes into our EfW facilities.  The business is highly synergistic with our existing special waste business and offers us the opportunity to expand the geographical sourcing of our waste streams and to provide additional environmental solutions and services to our clients.
This acquisition is not material to our condensed consolidated financial statements and therefore, disclosures of pro forma financial information have not been presented.
New York City Waste Transport and Disposal Contract
In 2013, New York City's Department of Sanitation awarded us a contract to handle waste transport and disposal from two marine transfer stations located in Queens and Manhattan. Service for the Queens marine transfer station began in the first quarter of 2015 in a ramp up phase, with service for the Manhattan marine transfer station expected to follow pending notice to proceed to be issued by New York City. The contract is for 20 years, with options for New York City to extend the term for two additional five-year periods. In connection with this contract, we will invest in equipment and facility enhancements (including barges, railcars, containers, and intermodal equipment), the aggregate amount of which is expected to be approximately $140 million. Investments relating to service for the Queens transfer station commenced in 2013 and are expected to continue through the end of 2015. During the six months ended June 30, 2015 and for the twelve months ended December 31, 2014 and December 31, 2013, we invested $19 million, $59 million, $23 million, respectively, in property, plant and equipment relating to this contract.




Existing Assets
Long Beach Energy-from-Waste Facility
In April 2015, we extended our existing service fee agreement with the City of Long Beach, California through June 2024, on substantially the same terms as the existing agreement. The agreement will commence upon the expiration of the current agreement in December 2018.
Durham-York Energy-from-Waste Facility
We are constructing a municipally-owned 140,000 tonne-per-year EfW facility located in the Durham Region of Canada. The facility began processing waste in the first quarter of 2015 and is expected to be fully operational in the first quarter of 2016, after which we will operate the facility under a 20 year service fee contract.
Essex County Energy-from-Waste Facility
We are implementing significant operational improvements at our Essex County EfW facility, including a state-of-the-art particulate emissions control system, at a total estimated cost of approximately $90 million. Construction on the system commenced in 2014 and is expected to be completed by the end of 2016. Capital expenditures related to these improvements totaled approximately $13 million and $17 million during the six months ended June 30, 2015 and the twelve months ended December 31, 2014, respectively. The facility's environmental performance is currently compliant with all environmental permits and will be further improved with the installation of this equipment.