6. LANDFILL AND ENVIRONMENTAL COSTS

As of June 30, 2011, we owned or operated 193 active solid waste landfills with total available disposal capacity of approximately 4.8 billion in-place cubic yards. Additionally, we currently have post-closure responsibility for 130 closed landfills.

Accrued Landfill and Environmental Costs

A summary of landfill and environmental liabilities as of June 30, 2011 and December 31, 2010 is as follows (in millions):


	June 30,			December 31,
	2011			2010
Landfill final capping, closure and post-closure liabilities	$	1,066.3		$	1,046.5
Remediation		555.4			552.1

		1,621.7			1,598.6
Less: Current portion		(187.9	)		(182.0	)

Long-term portion	$	1,433.8		$	1,416.6

Final Capping, Closure and Post-Closure Costs

The following table summarizes the activity in our asset retirement obligation liabilities, which includes liabilities for final capping, closure and post-closure, for the six months ended June 30 (in millions):


	2011			2010
Asset retirement obligation liabilities, beginning of year	$	1,046.5		$	1,074.5
Non-cash additions		16.4			15.6
Acquisitions and other adjustments		14.4			(0.7	)
Asset retirement obligation adjustments		(15.0	)		(7.6	)
Payments		(35.2	)		(28.0	)
Accretion expense		39.2			40.4

Asset retirement obligation liabilities, end of period		1,066.3			1,094.2
Less: Current portion		(96.7	)		(123.7	)

Long-term portion	$	969.6		$	970.5

Annually, in the fourth quarter, we review our calculations for asset retirement obligations. However, if there are significant changes in the facts and circumstances related to a site during the year, we will update our assumptions prospectively in the period that all the relevant facts and circumstances are known.

The fair value of assets that are legally restricted for purposes of collateralizing certain of our final capping, closure and post-closure obligations was $50.7 million and $59.1 million as of June 30, 2011 and December 31, 2010, respectively. Such assets are included in restricted cash and marketable securities in our consolidated balance sheets.

Environmental Remediation Liabilities

We accrue for remediation costs when they become probable and can be reasonably estimated. We believe that the amounts accrued for remediation costs are adequate. There can sometimes be a range of reasonable estimates of the costs associated with remediation of a site. In these cases, we use the amount within the range that constitutes our best estimate. If no amount within the range appears to be a better estimate than any other, we use the amount that is at the low end of such range. It is reasonably possible that we will need to adjust the liabilities recorded for remediation to reflect the effects of new or additional information, to the extent such information impacts the costs, timing or duration of the required actions. If we used the reasonably possible high ends of our ranges, our aggregate potential remediation liability at June 30, 2011 would be approximately $141 million higher than the amounts recorded. Future changes in our estimates of the cost, timing or duration of the required actions could have a material adverse effect on our consolidated financial position, results of operations or cash flows.

The following table summarizes the activity in our environmental remediation liabilities for the six months ended June 30 (in millions):


	2011			2010
Remediation liabilities, beginning of year	$	552.1		$	554.1
Acquisitions and other adjustments		—			1.5
Additions charged to expense		3.0			2.6
Payments		(16.2	)		(23.4	)
Accretion expense		16.5			14.5

Remediation liabilities, end of period		555.4			549.3
Less: Current portion		(91.2	)		(102.2	)

Long-term portion	$	464.2		$	447.1

The following is a discussion of certain of our significant remediation matters:

Countywide Landfill. In September 2009, Republic Services of Ohio II, LLC entered into Final Findings and Orders with the Ohio Environmental Protection Agency that require us to implement a comprehensive operation and maintenance program to manage the remediation area at the Countywide Recycling and Disposal Facility (Countywide). The remediation liability for Countywide recorded as of June 30, 2011 is $63.9 million, of which $4.6 million is expected to be paid during the next twelve months. We believe the reasonably possible range of loss for remediation costs is $55 million to $76 million.

West Contra Costa County Landfill. In 2006, we were issued an Enforcement Order by the California Department of Toxic Substance Control (DTSC) for the Class 1 Hazardous waste cell at the West Contra Costa County Landfill (West County). Subsequently, we entered into a Consent Agreement with DTSC in 2007 in which we agreed to undertake certain remedial actions. The remediation liability for West County recorded as of June 30, 2011 is $45.7 million, of which $2.4 million is expected to be paid during the next twelve months. We believe the reasonably possible range of loss for remediation costs is $36 million to $62 million.

Sunrise Landfill. In August 2008, Republic Services of Southern Nevada (RSSN), signed a Consent Decree with the EPA, the Bureau of Land Management and Clark County, Nevada related to the Sunrise Landfill. Under the Consent Decree, RSSN has agreed to perform certain remedial actions at the Sunrise Landfill for which RSSN and Clark County were otherwise jointly and severally liable. The remediation liability for Sunrise recorded as of June 30, 2011 is $36.8 million, of which $24.0 million is expected to be paid during the next twelve months. We believe the reasonably possible range of loss for remediation costs is $28 million to $43 million.

Congress Landfill. In August 2010, Congress Development Company agreed with the State of Illinois to have a Final Consent Order (Final Order) entered by the Circuit Court of Illinois, Cook County. Pursuant to the Final Order, we have agreed to continue to implement certain remedial activities at the Congress Landfill. The remediation liability recorded as of June 30, 2011 is $83.7 million, of which $8.0 million is expected to be paid during the next twelve months. We believe the reasonably possible range of loss for remediation costs is $44 million to $144 million.

It is reasonably possible that we will need to adjust the liabilities noted above to reflect the effects of new or additional information, to the extent that such information impacts the costs, timing or duration of the required actions. Future changes in our estimates of the costs, timing or duration of the required actions could have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Environmental Operating Costs

In the normal course of business, we incur various operating costs associated with environmental compliance. These costs include, among other things, leachate treatment and disposal, methane gas and groundwater monitoring and systems maintenance, interim cap maintenance, costs associated with the application of daily cover materials, and the legal and administrative costs of ongoing environmental compliance. These costs are expensed as costs of operations in the period in which they are incurred.