The decision on EnviroTec's request for Class V approval is due in mid-December. This decision, in the form of a recommendation to the State Legislature, is made by the Director of Environmental Quality. My understanding is that the recommendation would become a bill for introduction and vote in February. Passage is expected if the Director recommends it and the Governor would sign it in April. The State of Utah has laws in place, but since there is no approved disposal site, it doesn't enforce those laws. My understanding is that the State wants to have an approved facility in place.
Now, if the Class V well is not approved, the Company still has AdHatters and LPS and the small oil/gas operation. In my post 1984
Message 2836412
you will see that of the 8.0MM forward earnings estimate (FY1998--6/1/98to 5/31/99), 4.5MM was EnviroTec and 3.5 MM is the rest. The current Class II earnings for EnviroTec would be another 0.6 MM for 4.1MM if no class V is acquired. Assuming 22.9 MM shares, the EPS is $.179 per share. Pick a P/E and there's the impact. But it's not a real stretch to say that if EnviroTec is NOT approved, the psychological impact would be far more damaging.But I trust we are all adults and we knew that going in. I'm not trying to hide anything, EnviroTec is very important to Coconino at this stage of its growth.
But let me reiterate that there is no other facility even close to being considered for Class V than the EnviroTec well AND the State wants users to be in compliance with existing environmental laws.
TraderGreg
Sorry, forgot about Michigan's ABYSMAL history in the Rose Bowl. My aunt's from Nebraska. GO BIG RED! |
