Mark Duff: Yes, I’m glad you asked that, Aaron, because I do get a couple of questions about that this week. And what it comes down to is the WIR references the environmental assessment that was done for NEPA. So the environmental assessment, the goal of that document is to evaluate alternatives for treatment of the tank waste and treatment disposal. So when EA looks at every alternative available that makes it feasible and it looks at the competition, which includes WCS and Energy Solutions and us. So that €“ what that WIR referred to is who was evaluated in the EA. And if you look at the EA, there is a number of different evaluations done based on risk, from transportation to safety to environmental hazards and those kinds of things.
We were the lowest risk approach because we’re the only ones that are adjacent to the site. The other solutions would have to require transportation of untreated radioactive of liquid to at least 600 miles Energy Solutions and further to WCS. So obviously, the Perma-Fix approach having a facility permitted right next door is the preferred solution. But it did include what was defined in the evaluation for NEPA in the WIR document, that’s why it’s in there.
Aaron Warwick: And so how would they transport that waste to the Perma-Fix Northwest facility?
Mark Duff: It will be in totes, and on the back of a large flatbed, most likely. And they’ll bring over several totes a day when at full capacity.
Aaron Warwick: Yes. It seems like that would be rather dangerous to go all the way from Texas.
Mark Duff: Yes. Yes, exactly.
Aaron Warwick: Okay. And then I guess the final thing for me would be on the secondary waste that you had mentioned earlier. Really impressive to hear that revenue number. It’s about twice my estimates, so also then twice the earnings per share that Howard had talked about. I guess just to make sure I understand and everyone else understands, I guess this is because of the incremental margins that you would have, given your fixed cost structure, is that €“ is that accurate? Do you have such higher margins because it’s the incremental, it’s not just what your current margins are?
Ben Naccarato: Yes. I think Howard’s back at the envelope number. This is Ben, Aaron. And I think back of the envelope number is reasonable given our incremental margins. And then as Mark mentioned, there would be some additional fixed costs against that number. But I think, just again, back of the envelope, it’s pretty reasonable given those volumes.
Aaron Warwick: Well, thank you, guys. You’ve done a great job navigating through COVID. It seems glad to hear your €“ the business is starting to turn the corner there, and going to be profitable. And then obviously potentially lucrative stuff here at Hanford. So congratulations, guys. Thank you.
Mark Duff: Thanks, Aaron. Appreciate it.
Operator: Thank you. Your next question is coming from Anthony Harpel. Your line is live.
Unidentified Analyst: Hi, guys. Good morning. Thanks for holding the call. I have a number of questions, many of which are clarification related, just given there is so many moving parts. Maybe to start out with for the TBI program, can you please clarify what price per gallon you would realistically expect to get paid?
Mark Duff: Well, we only get too deep, Anthony, first of all, good morning €“ into costing the thing. But generally, our established rates that we have in our MSAs are in the low $40 a gallon range for the actual treatment, that’s the actual grouting. So if a container of waste shows up on our dock, in other words, we’re not paying for transportation. And we just have to grout it. It’s $40 to $45. And again, that can change based on rates and the different types of waste received. But that’s generally a good number. In TBI space, if DOE subcontracts to us to deliver those quotes I mentioned of waste to our dock, they would likely subcontract us to route and dispose of the waste. And if that’s the case, and we have to pay for transportation and disposal at an off-site landfill, then that price would be closer to $100 a gallon.
