UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                    FORM 10-Q

 (x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                                       ACT
                                     OF 1934

                  For the Quarterly Period Ended March 31, 2003

                                       OR


 ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
                                  EXCHANGE ACT
                                     OF 1934

  For the transition period from                     to
                                  ------------------    --------------------

                         Commission File Number 0-11688


                          AMERICAN ECOLOGY CORPORATION
                          ----------------------------
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

                 DELAWARE                             95-3889638
                 --------                             ----------
      (State or other jurisdiction of             (I.R.S. Employer
       incorporation or organization)           Identification Number)

           Lakepointe Centre I,
        300 E. Mallard, Suite 300
              Boise, Idaho                              83706
        -------------------------                       -----
(Address of principal executive offices)              (Zip Code)


                                 (208) 331-8400
                                 --------------
              (Registrant's telephone number, including area code)

Indicate  by  a  check  mark  whether  the  Registrant (1) has filed all reports
required  to  be filed by Sections 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding  12 months, and (2) has been subject to such filing
requirements  for  the  past  90  days.
                                  Yes  [X]     No [ ]

Indicate  by  check  mark  whether  the  registrant  is an accelerated filer (as
defined  in  Rule  12b-2  of  the  Act).
                                  Yes  [ ]     No [X]

At  May  12,  2003  Registrant  had  outstanding 16,960,901 shares of its Common
Stock.


<PAGE>
                          AMERICAN ECOLOGY CORPORATION
                      QUARTERLY REPORT ON FORM 10-Q FOR THE
                        THREE MONTHS ENDED MARCH 31, 2003


                                TABLE OF CONTENTS


                         PART I.  FINANCIAL INFORMATION

<TABLE>
<CAPTION>
                                                                                            PAGE
<S>                                                                                         <C>
Item 1.        Financial Statements

                   Consolidated Balance Sheets
                       (Unaudited)                                                             4

                   Consolidated Statements of Operations
                       (Unaudited)                                                             5

                   Consolidated Statements of Cash Flows
                       (Unaudited)                                                             6

                   Notes to Consolidated Financial Statements                                  7

Item 2.        Management's Discussion and Analysis of Financial Condition and Results of
               Operations                                                                     17

Item 3.        Quantitative and Qualitative Disclosures About Market Risk                     24

Item 4.        Controls and Procedures                                                        25


                           PART II. OTHER INFORMATION



Item 1.        Legal Proceedings                                                              25

Item 2.        Changes in Securities and Use of Proceeds                                      27

Item 3.        Defaults Upon Senior Securities                                                27

Item 4.        Submission of Matters to a Vote of Security Holders                            27

Item 5.        Other Information                                                              27

Item 6.        Exhibits and Reports on Form 8-K                                               27

               Signatures                                                                     28
</TABLE>



                                        2
<PAGE>
OFFICERS
--------
Stephen  A.  Romano
Chief  Executive  Officer,  President  and  Chief  Operating  Officer

James  R.  Baumgardner
Senior  Vice  President,  Chief  Financial  Officer
Treasurer  and  Secretary

Michael  J.  Gilberg
Vice  President  and  Controller

DIRECTORS
---------
Roger  P.  Hickey,  Chairman
President,  Chicago  Partners

David  B.  Anderson
Principal,  Lochborn  Partners  LLC

Rotchford  L.  Barker
Independent  Businessman

Roy  C.  Eliff
Independent  Businessman

Edward  F.  Heil
Sole  Member
E.F.  Heil,  LLC

Stephen  A.  Romano
Chief  Executive  Officer,  President  and  Chief  Operating  Officer

Paul  F.  Schutt
Chairman  of  the  Board
Nuclear  Fuel  Services,  Inc.


CORPORATE  OFFICE
-----------------
Lakepointe  Centre  I
American  Ecology  Corporation
300  East  Mallard  Drive,  Suite  300
Boise,  Idaho  83706
(208)  331-8400
(208)  331-7900  (fax)
www.americanecology.com
-----------------------


COMMON  STOCK
-------------
American Ecology Corporation's common stock trades on the Nasdaq National Market
under the symbol ECOL.


FINANCIAL  REPORTS
------------------
A copy of American Ecology Corporation Annual and Quarterly Reports, as filed on
Form 10-K and 10-Q with the Securities and Exchange Commission, may be obtained
by writing:
Lakepointe  Centre  I
300  E.  Mallard,  Suite  300
Boise,  Idaho  83706
or  at  www.americanecology.com
        -----------------------


TRANSFER  AGENT
---------------
Mellon  Investor  Services  LLC
Overpeck  Centre
85  Challenger  Road
Ridgefield  Park,  New  Jersey  07660
(201)  296-4000
or  at  www.mellon-investor.com
        -----------------------


AUDITOR
-------
Moss  Adams  LLP
1001  Fourth  Avenue,  Suite  2900
Seattle,  WA98154


                                        3
<PAGE>
PART I.   FINANCIAL INFORMATION
-------   ----------------------
ITEM 1.   FINANCIAL STATEMENTS.

<TABLE>
<CAPTION>
                                          AMERICAN ECOLOGY CORPORATION
                                     CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                                      ($ IN 000'S EXCEPT PER SHARE AMOUNTS)


                                                                            MARCH 31, 2003    December 31, 2002
                                                                           ----------------  -------------------
<S>                                                                        <C>               <C>
ASSETS
Current Assets:
  Cash and cash equivalents                                                $         7,134   $              135
  Receivables, net                                                                   7,306               10,460
  Income taxes receivable                                                              742                  740
  Prepayments and other                                                                368                  498
  Deferred income taxes                                                                 --                2,745
  Assets held for sale or closure                                                    3,542               10,722
                                                                           ----------------  -------------------
    Total current assets                                                            19,092               25,300

Cash and investment securities, pledged                                                244                  244
Property and equipment, net                                                         27,488               26,998
Facility development costs                                                           6,478               27,430
Deferred income taxes                                                                8,284                5,539
Other assets                                                                            66                  129
Assets held for sale or closure                                                      2,238                1,485
                                                                           ----------------  -------------------
    Total Assets                                                           $        63,890   $           87,125
                                                                           ================  ===================

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
  Current portion of long term debt                                        $         1,719   $            1,985
  Accounts payable                                                                   2,568                2,192
  Accrued liabilities                                                                4,461                4,166
  Accrued closure and post closure obligation, current portion                         882                  882
  Income taxes payable                                                                  15                   23
  Current liabilities of assets held for sale or closure                             5,716                7,965
                                                                           ----------------  -------------------
    Total current liabilities                                                       15,361               17,213

Revolving line of credit                                                                --                  603
Long term accrued liabilities                                                          526                2,372
Long term debt                                                                       5,310                5,972
Accrued closure and post closure obligation, excluding current portion               9,485                9,318
Liabilities of assets held for sale or closure, excluding current portion            5,591                5,699
                                                                           ----------------  -------------------
     Total liabilities                                                              36,273               41,177
                                                                           ----------------  -------------------

Commitments and contingencies
Shareholders' equity:
  Convertible preferred stock, 1,000,000 shares authorized,
     Designated as follows:
       Series D cumulative convertible preferred stock, $.01 par value,
       0 and 100,001 shares issued and outstanding;                                     --                    1
  Common stock, $.01 par value, 50,000,000 authorized, 16,960,901
    and 14,539,264 shares issued and outstanding                                       170                  145
  Additional paid-in capital                                                        54,665               55,789
  Accumulated deficit                                                              (27,218)              (9,987)
                                                                           ----------------  -------------------
    Total shareholders' equity                                                      27,617               45,948
                                                                           ----------------  -------------------
Total Liabilities and Shareholders' Equity                                 $        63,890   $           87,125
                                                                           ================  ===================
</TABLE>

See  notes  to  consolidated  financial  statements.


                                        4
<PAGE>
<TABLE>
<CAPTION>
                                             AMERICAN ECOLOGY CORPORATION
                                         CONSOLIDATED STATEMENTS OF OPERATIONS
                                                      (UNAUDITED)
                                         ($ IN 000'S EXCEPT PER SHARE AMOUNTS)



                                                                                             Three Months Ended
                                                                                     MARCH 31, 2003    March 31, 2002
                                                                                    ----------------  ----------------
                                                                                                         (Restated)
<S>                                                                                 <C>               <C>
Revenue                                                                             $        10,771   $        13,424
Direct operating costs                                                                        5,984             6,175
                                                                                    ----------------  ----------------

Gross profit                                                                                  4,787             7,249
Selling, general and administrative expenses                                                  4,497             3,541
                                                                                    ----------------  ----------------
Income from operations                                                                          290             3,708

Investment income                                                                                --                11
Interest expense                                                                                121               265
Loss on write off of Ward Valley facility development costs                                  20,951                --
Other income (loss)                                                                              --              (465)
                                                                                    ----------------  ----------------

Income (loss) before income tax, discontinued operations and cumulative effect of
change in accounting principal                                                              (20,782)            2,989
Income tax expense (benefit)                                                                     (8)               --
                                                                                    ----------------  ----------------

Income (loss) before discontinued operations and cumulative effect of change in
accounting principal                                                                        (20,774)            2,989
Gain from discontinued operations - El Centro Landfill                                        4,944               190
(Loss) from discontinued operations - Oak Ridge LLRW Facility                                (1,337)             (401)
                                                                                    ----------------  ----------------

Income (loss) before cumulative effect of change in accounting principal                    (17,167)            2,778
Cumulative effect of accounting change                                                           --            13,141
                                                                                    ----------------  ----------------

Net income (loss)                                                                           (17,167)           15,919
Preferred stock dividends                                                                        64                98
                                                                                    ----------------  ----------------

Net income (loss) available to common shareholders                                  $       (17,231)  $        15,821
                                                                                    ================  ================

Basic (loss) earnings from continuing operations                                              (1.34)              .22
Basic (loss) earnings from discontinued operations                                              .23              (.02)
Basic earnings from cumulative effect of accounting change                                       --               .95
                                                                                    ----------------  ----------------
Basic (loss) earnings per share                                                     $         (1.11)  $          1.15
                                                                                    ================  ================

Diluted (loss) earnings from continuing operations                                            (1.34)              .21
Diluted (loss) earnings from discontinued operations                                            .23              (.02)
Diluted earnings from cumulative effect of accounting change                                     --               .92
                                                                                    ----------------  ----------------
Diluted (loss) earnings per share                                                   $         (1.11)  $          1.11
                                                                                    ================  ================

Dividends paid per common share                                                     $            --   $            --
                                                                                    ================  ================
</TABLE>

See notes to consolidated financial statements.


                                        5
<PAGE>
<TABLE>
<CAPTION>
                                 AMERICAN ECOLOGY CORPORATION
                            CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED, $ IN 000'S)


                                                                Three Months Ended March 31,
                                                           ----------------------------------
                                                                  2003              2002
                                                           ------------------  --------------
<S>                                                        <C>                 <C>
Cash flows from operating activities:                                              (Restated)
  Net income (loss)                                        $         (17,167)  $      15,919
  Adjustments to reconcile net income to net
    cash provided by operating activities:
  Depreciation, amortization, and accretion                            1,707           1,420
  (Income) loss from discontinued operations                          (3,607)            211
  Cumulative effect of change in accounting principle                     --         (13,141)
  Write off of Ward Valley project                                    20,951              --
Changes in assets and liabilities:
  Receivables                                                          3,211           1,392
  Other assets                                                           131              19
  Closure and post closure obligation                                   (204)           (637)
  Income taxes payable                                                   (10)            285
  Accounts payable and accrued liabilities                               875          (5,888)
                                                           ------------------  --------------
    Net cash provided by (used in) operating activities                5,887            (420)

Cash flows from investing activities:
  Capital expenditures                                                (2,277)           (984)
                                                           ------------------  --------------
    Net cash used by investing activities                             (2,277)           (984)

Cash flows from financing activities:
  Payments of indebtedness                                            (1,531)           (830)
  Retirement of series D preferred stock                              (6,406)             --
  Stock options exercised                                              3,650             975
                                                           ------------------  --------------
    Net cash provided by (used in) financing activities               (4,287)            145
                                                           ------------------  --------------

Decrease in cash and cash equivalents                                   (677)         (1,259)
Net cash provided by (used in) discontinued operations                 7,676          (1,248)
Cash and cash equivalents at beginning of period                         135           4,217
                                                           ------------------  --------------
Cash and cash equivalents at end of period                 $           7,134   $       1,710
                                                           ==================  ==============

Supplemental disclosures of cash flow information:
Cash paid during the year for:
  Interest                                                 $             121   $         288
  Income taxes paid                                                        2               5
Non-cash investing and financing activities:
  Stock issuance-director's compensation                                  12              --
  Preferred stock dividends accrued                                       --              98
  Transfer of prepaid assets to settle closure liability                  --             462
</TABLE>

See notes to consolidated financial statements.


                                        6
<PAGE>
AMERICAN ECOLOGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1.   BASIS OF PRESENTATION

In  the opinion of management, the accompanying unaudited consolidated financial
statements  contain  all adjustments and disclosures necessary to present fairly
the  financial  position,  results  of  operations,  and  cash flows of American
Ecology  Corporation  and  its  wholly-owned subsidiaries (the "Company"). These
financial  statements and notes should be read in conjunction with the financial
statements  and  notes included in the Company's 2002 Annual Report on Form 10-K
for  the  year  ended  December 31, 2002, filed with the Securities and Exchange
Commission.

Certain  reclassifications  of  prior  quarter amounts have been made to conform
with  current quarter presentation, none of which affect previously recorded net
income.

NOTE 2.   EARNINGS PER SHARE

Basic  earnings  per  share are computed based on net income available to common
shareholders and the weighted average number of common shares outstanding during
the  quarter.  Diluted earnings per share reflect the assumed issuance of common
shares  for  outstanding  options and conversion of warrants. The computation of
diluted  earnings per share does not assume exercise or conversion of securities
whose  exercise  price  is greater than the average common share market price as
the  assumed  conversion  of these securities would increase earnings per share.
The computation of diluted loss per share does not assume exercise or conversion
of  any  securities  as the assumed conversion of securities would decrease loss
per  share.

<TABLE>
<CAPTION>
                                                                             THREE MONTHS ENDED MARCH 31
<S>                                                                      <C>               <C>
            ($in thousands except per share amounts)                                2003              2002
                                                                         ----------------  ----------------
                                                                                                 (Restated)
Income (loss) before discontinued operations and cumulative
       effect of accounting change                                       $       (20,774)  $         2,989
Income (loss) from operations of discontinued segments                             3,607              (211)
Cumulative effect of accounting change                                                --            13,141
                                                                         ----------------  ----------------
Net income (loss)                                                                (17,167)           15,919
Preferred stock dividends                                                             64                98
                                                                         ----------------  ----------------
Net income (loss) available to common shareholders                       $       (17,231)  $        15,821
                                                                         ================  ================

Weighted average shares outstanding-
  Common shares                                                                   15,476            13,781
 Effect of dilutive shares
  Series E Warrants                                                                   --               250
  Chase Bank Warrants                                                                 --               144
  Stock Options                                                                       --                84
                                                                         ----------------  ----------------

 Average shares                                                                   15,476            14,259
                                                                         ================  ================

Basic earnings (loss) per share from continuing operations               $         (1.34)  $           .22
Basic earnings (loss) per share from discontinued operations                         .23              (.02)
Basic earnings per share from cumulative effect of accounting change                  --               .95
                                                                         ----------------  ----------------
Basic earnings (loss) per share                                          $         (1.11)  $          1.15
                                                                         ================  ================

Diluted earnings (loss) per share from continuing operations             $         (1.34)  $           .21
Diluted earnings (loss) per share from discontinued operations                       .23              (.02)
Diluted earnings per share from cumulative effect of accounting change                --               .92
                                                                         ----------------  ----------------
Diluted earnings (loss) per share                                        $         (1.11)  $          1.11
                                                                         ================  ================
</TABLE>


                                        7
<PAGE>
NOTE 3.   EQUITY

In  1996,  the  Company issued 300,000 shares of Series E Redeemable Convertible
Preferred  Stock  ("Series  E  Preferred  Stock") that were retired in 1998. The
Series E Preferred Stock carried warrants to purchase 3,000,000 shares of common
stock  with  a  $1.50  per  share  exercise  price.

In  February  2003,  three  Series  E  warrant  holders  exercised the remaining
2,350,000  Series  E  warrants  with  an  exercise  price  of  $1.50  per share.
Consequently,  the  Company issued 2,350,000 shares of common stock and received
$3,525,000  in  cash.  At  March  31,  2003  there  were  no  Series  E warrants
outstanding.

In  September  1995,  the  Board of Directors authorized the issuance of 105,264
shares  of  preferred stock designated as 8 3/8% Series D Cumulative Convertible
Preferred  Stock  (Series  D  Preferred  Stock),  which  were  sold in a private
offering  to a group of present and past members of the Board of Directors. Each
of  the  remaining 100,001 shares of Series D Preferred Stock was convertible at
any  time  at the option of the holder into 17.09 shares of the Company's common
stock,  equivalent  to  a conversion price of $3.71 per share due to dilution by
subsequent  sales  of  common  stock.

On  January  14,  2003, the Company extended an offer to all holders of Series D
Preferred Stock to repurchase their stock for the original sales price of $47.50
a share plus accrued but unpaid dividends. Repurchase was subject to approval of
the  Company's  Board  of  Directors  and  primary  bank,  Wells Fargo Bank, and
required  a minimum of 67% of the Series D Preferred Stock to be tendered by the
Series  D Preferred Stockholders. The offer was accepted by all Series D holders
and  approved  by  the  Company's  Board  of  Directors  and  Wells  Fargo Bank.

On  February  28,  2003, the Company repurchased the remaining 100,001 shares of
Series  D  Preferred  Stock  for the original sales price of $47.50 a share plus
accrued but unpaid dividends of $16.56 a share.  A total of $6,406,000 was paid.

NOTE 4.   OPERATING SEGMENTS

The  Company  operates  with  two  segments,  Operating Disposal Facilities, and
Non-Operating Disposal Facilities, based on its internal reporting structure and
nature  of  services offered. The Operating Disposal Facility segment represents
facilities accepting hazardous and radioactive waste. The Non-Operating Disposal
Facility  segment  represents facilities that are not accepting hazardous and/or
radioactive  waste  or  are  awaiting  approval  to  open.

On December 27, 2002, the Company committed to discontinue commercial operations
within  its  Processing  and  Field  Services  segment  which  aggregated,
volume-reduced,  and  performed  remediation  and  other services on radioactive
material,  but  excluded  processing  performed  at the disposal facilities. All
prior  segment  information has been restated in order to present the operations
at  the  Oak  Ridge  facility,  including  the  Field  Services  division,  as
discontinued  operations.

Effective  December  31,  2002,  the  Company classified the El Centro municipal
landfill  as  an  asset  held  for sale due to the expected sale of the facility
which  occurred  on  February  13,  2003. All prior segment information has been
restated  in  order  to  present  the  operations  of  the El Centro landfill as
discontinued  operations.

Income  taxes are assigned to Corporate, but all other items are included in the
segment  where they originated.  Inter-company transactions have been eliminated
from  the  segment  information  and  are  not  significant  between  segments.


                                        8
<PAGE>
Summarized financial information concerning the Company's reportable segments is
shown  in  the  following  table  ($  in  thousands).

<TABLE>
<CAPTION>
                                               Operating    Non-Operating     Discontinued
                                               Disposal       Disposal       Processing and
                                              Facilities     Facilities      Field Services    Corporate     Total
<S>                                           <C>          <C>              <C>               <C>          <C>
THREE MONTHS ENDED MARCH 31, 2003
---------------------------------
Revenue                                       $    10,767  $            4   $            --   $       --   $ 10,771
Direct operating cost                               5,882             102                --           --      5,984
                                              -----------  ---------------  ----------------  -----------  ---------
Gross profit (loss)                                 4,885             (98)               --           --      4,787
S,G&A                                               1,826           1,517                --        1,154      4,497
                                              -----------  ---------------  ----------------  -----------  ---------
Income (loss) from operations                       3,059          (1,615)               --       (1,154)       290
Interest expense                                       44              --                --           77        121
Write off of Ward Valley facility                      --          20,951                --           --     20,951
                                              -----------  ---------------  ----------------  -----------  ---------
Income (loss) before income tax
and discontinued operations                         3,015         (22,566)               --       (1,231)   (20,782)
Income tax expense (benefit)                           --              --                --           (8)        (8)
Discontinued operations                             4,944              --            (1,337)          --      3,607
                                              -----------  ---------------  ----------------  -----------  ---------
Net Income (loss)                                   7,959         (22,566)           (1,337)      (1,223)   (17,167)
                                              ===========  ===============  ================  ===========  =========
Depreciation Expense                          $     1,802  $            1   $            --   $       11   $  1,814
Capital Expenditures                          $     2,614  $           23   $           473   $       --   $  3,110
Total Assets                                  $    36,230  $        6,519   $         4,231   $   16,910   $ 63,890

THREE MONTHS ENDED MARCH 31, 2002 (RESTATED)
--------------------------------------------
Revenue                                       $    13,357  $           67   $            --   $       --   $ 13,424
Direct operating cost                               5,872             303                --           --      6,175
                                              -----------  ---------------  ----------------  -----------  ---------
Gross profit (loss)                                 7,485            (236)               --           --      7,249
S,G&A                                               2,654              80                --          807      3,541
                                              -----------  ---------------  ----------------  -----------  ---------
Income (loss) from operations                       4,831            (316)               --         (807)     3,708
Investment income                                       8              --                --            3         11
Interest expense                                      218              --                --           47        265
Other income (expense)                                 25            (490)               --           --       (465)
                                              -----------  ---------------  ----------------  -----------  ---------
Income (loss) before discontinued
operations and cumulative effect of
change in accounting principle                      4,646            (806)               --         (851)     2,989
Discontinued operations                               190              --              (401)          --       (211)
Cumulative effect of change in
accounting principle                          $    14,983  $        1,548   $        (3,390)  $       --   $ 13,141
                                              -----------  ---------------  ----------------  -----------  ---------
Net Income (loss)                             $    19,819  $          742   $        (3,791)  $     (851)  $ 15,919
                                              ===========  ===============  ================  ===========  =========
Depreciation Expense                          $     1,695  $            1   $           143   $       18   $  1,857
Capital Expenditures                          $       993  $           --   $            12   $       --   $  1,005
Total Assets                                  $    47,148  $       27,484   $        11,315   $    3,826   $ 89,773
</TABLE>


NOTE  5.  STOCK  OPTION  PLANS

The  Company  has  two  stock-based  compensation plans, which are accounted for
under  the  recognition  and  measurement  principles  of  APB  Opinion  No. 25,
Accounting  for  Stock  Issued  to  Employees  and  related  Interpretations. No
stock-based employee compensation cost is reflected in net income. The following
table illustrates the effect on net income and earnings per share if the Company
applied  the  fair  value  recognition  provisions  of  FASB  Statement No. 123,
Accounting  for  Stock-Based  Compensation,  to stock-based compensation for the
quarters  ended  March  31,  2003  and  2002:


                                        9
<PAGE>
<TABLE>
<CAPTION>
                                                                             2003       2002
                                                                           ---------  --------
<S>                                                                        <C>        <C>
Net income (loss), as reported                                             $(17,167)  $15,919
Deduct: Total stock-based employee compensation expense determined
under fair value based method for all awards, net of related tax effects       (509)      (72)
                                                                           ---------  --------
Pro forma net income (loss)                                                $(17,676)  $15,847
                                                                           =========  ========

EARNINGS (LOSS) PER SHARE:
   Basic - as reported                                                     $  (1.11)  $  1.15
                                                                           =========  ========
   Basic - pro forma                                                       $  (1.14)  $  1.15
                                                                           =========  ========
   Diluted - as reported                                                   $  (1.11)  $  1.11
                                                                           =========  ========
   Diluted - pro forma                                                     $  (1.14)  $  1.11
                                                                           =========  ========
</TABLE>

The  stock option plan summary and changes during quarters ended March 31 are as
follows:

<TABLE>
<CAPTION>
                                                                     2003         2002
                                                                  -----------  -----------
<S>                                                               <C>          <C>
Options outstanding, beginning of quarter                            753,150    1,128,650
Granted                                                              758,724       80,000
Exercised                                                            (67,500)          --
Canceled                                                              (9,500)    (262,000)
                                                                  -----------  -----------
Options outstanding, end of quarter                                1,434,874      946,650
                                                                  ===========  ===========

Weighted average exercise price of options, beginning of quarter  $     3.42   $     2.90
Weighted average exercise price of options granted                $     4.42   $     2.68
Weighted average exercise price of options exercised              $     1.68           --
Weighted average exercise price of options canceled               $     3.12   $     1.06
Weighted average exercise price of options, end of quarter        $     4.03   $     3.39

Options exercisable at end of quarter                                865,831      844,150
                                                                  ===========  ===========

Options available for future grant at end of quarter                 453,626    1,117,850
                                                                  ===========  ===========
</TABLE>

The  following  table summarizes information about the stock options outstanding
under  the  Company's  option  plans  as  of  March  31,  2003:

<TABLE>
<CAPTION>
                        Weighted
                         average                       Weighted                             Weighted
                        remaining                       average                              average
Range of exercise   contractual life     Number     exercise price                       exercise price
price per share          (years)       outstanding     per share     Number exercisable     per share
------------------  -----------------  -----------  ---------------  ------------------  ---------------
<S>                 <C>                <C>          <C>              <C>                 <C>
1.00 - $1.47                     4.3      119,500  $          1.33             119,500  $          1.33
1.60 - $2.25                     6.8      129,000  $          1.98             129,000  $          1.98
2.42 - $3.50                     7.2      407,329  $          2.98             204,582  $          2.96
3.75 - $5.00                     8.1      532,884  $          4.30             296,346  $          4.14
6.50                             9.9      173,011  $          6.50              43,253  $          6.50
10.13                            0.9       73,150  $         10.13              73,150  $         10.13
                                       -----------                   ------------------
                                         1,434,874                              865,831
                                       ===========                   ==================
</TABLE>

As  of  March  31,  2003,  the  1992 Stock Option Plan for Employees had options
outstanding  to  purchase  949,874  common  shares  with 92,926 shares remaining
available  for  issuance  under  option  grants.  The 1992 Stock Option Plan for
Directors had options outstanding to purchase 485,000 common shares with 360,700
shares  remaining  available  for  issuance  under  option  grants.


                                       10
<PAGE>
The  fair  value  of  each  option  grant  is  estimated using the Black-Scholes
option-pricing  model  with  the following weighted-average assumptions used for
grants  during  the  quarter  ended  March  31:

<TABLE>
<CAPTION>
                                                   2003        2002
                                                 ----------  ----------
<S>                                              <C>         <C>
Expected volatility                                    105%         49%
Risk-free interest rates                              4.25%       4.75%
Expected lives                                    10 YEARS    10 years
Dividend yield                                           0%          0%
Weighted-average fair value of options granted
during the quarter (Black-Scholes)               $    2.68   $    0.90
</TABLE>


NOTE 6.   INCOME TAXES

Income  tax  expense  differs  from  that calculated using applicable income tax
rates  to  pretax  income  due  primarily  to the presence of net operating loss
carryforwards  and  a  valuation  allowance.

At  March  31,  2003,  the Company has approximately $25,000,000 of deferred tax
assets  and  a  corresponding valuation allowance which reduces the net deferred
tax  asset  to  $8,284,000.  $8,284,000  represents  the expected utilization of
deferred  tax  assets  in  the  foreseeable  future.

On  March 26, 2003, the Company wrote off $20,951,000 in Ward Valley development
costs  and  therefore  does  not  expect to realize previously estimated taxable
income  in  2003.  Management  expects  the  $8,284,000 of deferred tax asset is
expected  to  be  realized  in  the  years  subsequent  to  2003,  and therefore
classified  the total net deferred tax asset as a long term asset on the balance
sheet.

NOTE 7.  LITIGATION

Significant  developments  have  occurred  on  the following legal matters since
December  31,  2002:

US ECOLOGY, INC. V. THE STATE OF CALIFORNIA, ET AL., CASE NO.GIC747562, SUPERIOR
---------------------------------------------------
COURT  OF  THE  STATE  OF  CALIFORNIA  FOR  THE  COUNTY  OF  SAN  DIEGO

In  May  2000,  the  Company's  subsidiary,  US Ecology, Inc., sued the State of
California,  its  Governor,  Gray  Davis,  and the Director of its Department of
Health  Services  (DHS)  and  other  State  entities  ("the State") for monetary
damages  exceeding  $162 million. The suit stems from the State's abandonment of
the  Ward  Valley  low-level  radioactive  waste  ("LLRW")  disposal  project.
California  law requires the state to build a disposal site for LLRW produced in
California,  Arizona,  North  Dakota  and  South  Dakota;  member  states of the
Southwestern Compact.  US Ecology was selected in 1985 to locate and license the
site using its own funds on a reimbursable basis. In 1993, US Ecology obtained a
license  from  the  DHS  and  entered  a  ground  lease.

The  State successfully defended the license against court challenges and, until
Governor  Davis  took  office,  actively pursued conveyance of the site from the
federal  government.  In September 2000, the Superior Court granted California's
motion to dismiss all causes of action, which the Company appealed. In September
2001,  the  California Court of Appeal Fourth Appellate District Appellate Court
upheld  the  trial court's decision in part and denied it in part, remanding the
case  for  trial  based on the Company's promissory estoppel claim. The case was
tried  in Superior Court for the County of San Diego in February and March 2003.

On  March  26, 2003, Superior Court Judge E. Mac Amos, Jr. issued a Statement of
Decision  finding  that  the  Company failed to establish causation and that its
claim  is  further  barred  by  the doctrine of unclean hands. The unclean hands
finding  was  based  on  actions the Court concluded had created obstacles to an
agreement between the federal government and the State to convey the Ward Valley
property  to  the State. The Court also found, however, that certain elements of
the  Company's promissory estoppel claim had been established. Specifically, the
Court ruled that the State made a clear and unambiguous promise to US Ecology in
1988  to  use  its  best efforts to acquire the Ward Valley site, that the State
subsequently  abandoned  this promise during Governor Davis' administration, and


                                       11
<PAGE>
that the Company's reliance on the State's promise was reasonable and forseable.
However, the Court found that the State's breach of its best efforts promise was
not  a  substantial  factor  in  causing damages to US Ecology since the federal
government  had  continued  to  resist  the  land  transfer.

On  May 2, 2003, the Company filed a Motion to Vacate with the trial court based
on  advice of counsel that the March 26 decision had misapplied the facts of the
case  to  the  law  with respect to both the adverse causation and unclean hands
findings.  The  Company  will  await  a ruling on this motion before determining
whether  or  not to pursue an appeal to the California Fourth Appellate District
Court.

Based  on  the  trial  court's  decision,  management  is  no longer certain the
Company's  investment  in the Ward Valley project can be recovered. As a result,
the  Company  has  written  off  the $20,951,000 deferred site development asset
previously  reflected  on  its  balance  sheet.

MANCHAK  V.  US  ECOLOGY,  INC., U.S. DISTRICT COURT FOR THE DISTRICT OF NEVADA,
-------------------------------
CIVIL  ACTION  NO.  96-494.

In March 1996, Frank Manchak, Jr. ("Plaintiff" or "Manchak") filed suit alleging
infringement  of  a  sludge treatment patent to stabilize hazardous waste at the
Company's  Beatty,  Nevada  hazardous  waste  disposal facility. Plaintiff seeks
unspecified  damages  for  infringement,  treble  damages,  interest,  costs and
attorney  fees.  On  October 17, 2002, the US District Court for the District of
Nevada  granted  the  Company's motion for summary judgment to dismiss the suit.
Manchak's  motion  for  reconsideration  was denied on January 8, 2003.  Manchak
appealed,  however,  plaintiff  appears  to  have  failed  to  timely  file  an
appellant's  brief  and  the Company moved to dismiss the appeal.  The Company's
motion  to  dismiss is pending.   In January 2003, the Company filed a motion to
recover  legal  fees  and expenses. This motion was denied, which the Company is
considering  appealing.  The  Company  does not believe it infringed any Manchak
patent  and  will  continue  to  vigorously  defend  the  case.

ENTERGY  ARKANSAS,  INC.,  ET AL, CENTRAL INTERSTATE LOW-LEVEL RADIOACTIVE WASTE
--------------------------------------------------------------------------------
COMMISSION  AND  US  ECOLOGY,  INC. ("PLAINTIFFS") V. STATE OF NEBRASKA, ET AL.,
------------------------------------------------------------------------------
CASE  NO.  4:98CV3411,  U.S.  DISTRICT  COURT,  DISTRICT  OF  NEBRASKA

This  action  was  brought  in  federal  court  in  December of 1999 by electric
utilities  that generate low-level radioactive waste ("LLRW") within the Central
Interstate  Low-Level  Radioactive  Waste  Compact  (CIC). CIC member states are
Nebraska,  Kansas,  Oklahoma,  Arkansas,  and  Louisiana.  The  action  seeks
declaratory  relief  and  damages  for  bad  faith  in  the  State of Nebraska's
processing  and ultimate denial of US Ecology's application to site, develop and
operate  a  LLRW disposal facility near Butte, Nebraska. US Ecology is the CIC's
contractor  and  developer.  The  CIC  was  originally  named as a defendant and
subsequently  realigned  as  a  plaintiff. US Ecology intervened as a plaintiff.

The  CIC sought to recover contributions made by the utilities and US Ecology to
the  CIC  for  pre-licensing  project  costs  in  the approximate amounts of $95
million  and  $6.2  million,  respectively, and removal of the State of Nebraska
from  the  licensing  process.  The Eighth Circuit Court of Appeals subsequently
dismissed  the  utilities'  and US Ecology's independent claims against Nebraska
for  breach  of  the  good faith provision of the Compact, and for denial of due
process  based on sovereign immunity.  The utilities and US Ecology subsequently
filed  cross claims against the CIC for breach of contract and the imposition of
a  constructive  trust.

On  September  30,  2002,  the  US  District  Court for the District of Nebraska
entered  judgment  against  Nebraska  in  favor  of  the  CIC  for $153 million,
including  approximately  $50 million for prejudgment interest.  Of this amount,
US  Ecology's share was for a $6.2 million contribution and $6.1 for prejudgment
interest.  The $6.2 million contribution in included within the balance sheet as
capitalized  facility development costs. The Court also dismissed the utilities'
and  US  Ecology's  cross  claims  for  breach  of  contract and imposition of a
constructive  trust, finding that it was premature to decide the merits of these
claims  and  leaving  the question open for future resolution if necessary.  The
State  appealed  the  judgment  to  the  Eighth  Circuit Court of Appeals. It is
currently  expected  that  the  case  will be argued in the fall of 2003 with an
appeals  court  decision  around the end of 2003. No assurance can be given that
the  trial  court's  decision will be affirmed on appeal or that US Ecology will
recover  its  contributions  or  interest  thereon.

MATTIE  CUBA,  ET AL. V. AMERICAN ECOLOGY ENVIRONMENTAL SERVICES CORPORATION, ET
--------------------------------------------------------------------------------
AL.,CAUSE  NO.  2000-092,  4TH  JUDICIAL  DISTRICT  COURT,  RUSK  COUNTY,  TEXAS


                                       12
<PAGE>
This  suit  was  brought  in  November  2000  by 28 named plaintiffs against the
Company  and  named  subsidiaries, the former owners and approximately 60 former
customers  of  its Winona, Texas facility. Plaintiffs seek recovery for personal
injuries,  property  damages  and  exemplary  damages based on negligence, gross
negligence,  nuisance  and  trespass.  The  Company  filed  a motion for summary
judgment  in  July  2002 based on lack of evidence. In November  2002, the trial
court  granted partial summary judgment, dismissing certain causes of action and
reducing  the  number  of plaintiffs, but preserving other causes of action. The
Company  subsequently  filed  a  motion  for  summary judgment seeking dismissal
against all of the adult plaintiffs on statute of limitations grounds.  On March
26,  2003  the  court  granted  this  motion and dismissed the adult plaintiffs.
Seven minors and an intervenor remain party to the lawsuit. The Company believes
plaintiffs'  remaining  case  is  without  merit and will continue to vigorously
defend  the  matter.  No assurance can be given that the Company will prevail or
that  the  matter  can  be  favorably  resolved. The Company's current insurance
carrier  is  paying for defense of this matter subject to the Company's $250,000
deductible,  which  has  been  fully  accrued.

NOTE 8.   COMMITMENTS AND CONTINGENCIES

Effective  January  1,  2003,  the  Company  established  the  American  Ecology
Corporation  Management  Incentive  Plan.  The  Plan  provides  for  selected
participants  to  receive  bonuses  based  on  pre-tax  operating income levels.
Bonuses under the plan are to be paid out over three years with a maximum in any
one  year  of  $1,125,000  in  bonuses  if  pre-tax  operating  income  exceeds
$12,000,000.

In  February  2003, the Company entered into employment agreements with four key
executive  employees.  The  agreements  expire  December  31,  2004 and 2005 and
provide  for  aggregate  minimum  annual  salaries  of  $639,000.

NOTE 9.   ACCOUNTING CHANGES AND RESTATEMENT

Effective  January  1,  2002,  the  Company  implemented  Statement of Financial
Accounting Standards No. 143, "Accounting for Asset Retirement Obligations" (FAS
143)  under  the  early adoption provisions.  FAS 143 requires a liability to be
recognized  as part of the fair value of future asset retirement obligations and
an  associated  asset  to  be  recognized  as part of the carrying amount of the
underlying  asset.  Previously  the  Company recorded a Closure and Post Closure
Obligation  for  the  pro-rata amount of space used of the total permitted space
available.  On  January 1, 2002, in accordance with FAS 143, this obligation was
valued at the current closure cost, increased by a cost of living adjustment for
the  estimated  time  of  payment,  and  discounted  back  to its present value.

In  further  accordance  with  FAS 143, upon calculation of the asset retirement
obligation  the  Company  also  recorded  an  associated  asset  related  to the
retirement  obligation. This asset is amortized to operations over the estimated
useful  life of the related long-lived asset. FAS 143 allows for the aggregation
of  certain assets in calculating and subsequently amortizing this asset. During
the  fourth  quarter of 2002, the Company reassessed its methodology of applying
FAS  143  and  disaggregated  certain  facility components. In recalculating the
asset under the revised methodology, the Company recorded a $3,182,000 reduction
in  the  asset  with  no  corresponding  change  in  the  recorded  liability.
Consequently,  the  initial  2002  gain  on implementation of the new accounting
standard  recorded  in  the first quarter of 2002 was reduced by $3,182,000, and
the  amortization associated with the asset was reduced from what was previously
recorded  during  the  first three quarters of 2002.  The following restatements
were  made  to account for this change in FAS 143 implementation methodology (in
thousands):

<TABLE>
<CAPTION>
                                                 March 31, 2002
                                                ----------------
<S>                                             <C>
     Reported Net Income                        $        19,077
     Effect of Restatement:
        Cumulative Effect of Accounting Change  $        (3,182)
        Amortization                            $            24
                                                ----------------
     Restated Net Income                        $        15,919
                                                ================

     Reported Diluted EPS                       $          1.33


                                       13
<PAGE>
     Effect of Restatement:
        Cumulative Effect of Accounting Change  $          (.22)
        Amortization                            $            --
                                                ----------------
     Restated EPS                               $          1.11
                                                ================
</TABLE>


NOTE  10.  CLOSURE  AND  POST  CLOSURE  OBLIGATIONS

Closure and post closure obligations are recorded when environmental assessments
and/or  remedial efforts are probable, and the costs can be reasonably estimated
consistent  with  Statement of Financial Accounting Standards No. 5. The Company
performs  periodic  reviews  of  both non-operating and operating facilities and
revises  accruals  for  estimated post-closure, remediation and other costs when
necessary.  The  Company's  recorded  liabilities are based on best estimates of
current  costs  and are updated periodically to reflect current technology, laws
and  regulations,  inflation  and  other  economic  factors.

Changes  to  reported  closure  and post closure obligations were as follows (in
thousands):

<TABLE>
<CAPTION>
                                 Accrued Closure and      Closure Obligation of Assets    Total Closure and Post
                               Post Closure Obligation      Held for Sale or Closure       Closure Obligations
                              -------------------------  ------------------------------  ------------------------
<S>                           <C>                        <C>                             <C>
December 31, 2002 obligation  $                 10,200   $                       6,560   $                16,760
Accretion of obligation                            239                              36                       275
Payment of obligation                             (205)                             --                      (205)
Adjustment of obligation                           133                          (1,098)                     (965)
                              -------------------------  ------------------------------  ------------------------
March 31, 2003 obligation     $                 10,367   $                       5,498   $                15,865
                              =========================  ==============================  ========================
</TABLE>

On February 13, 2003, the Company sold substantially all of the assets of the El
Centro landfill, which also included the transfer of the related accrued closure
and  post  closure  obligation  amounting to $1,098,000 at the date of the sale.

At  March  31,  2003,  $244,000  of  pledged cash and investment securities were
legally  restricted  for  purposes  of  settling  the  closure  and post closure
obligation.

NOTE 11.  OPERATING  LEASE  BUY  OUT

On  August  3,  2000,  the  Company entered into a $2,000,000 equipment sale and
leaseback transaction based on the sale of specified equipment and rolling stock
to  a  third  party lessor. The Company received $2,000,000 in proceeds from the
asset  sale  and  entered  into  an operating lease for the use of the equipment
beginning  August  8,  2000 with monthly payments scheduled through September 8,
2006.  The Company realized a $1,098,000 gain on the sale of the equipment to be
amortized  over  the  life  of  the  lease.

On  March  28, 2003 the Company exercised an early buyout of the operating lease
for  $1,159,000  and  recorded equipment purchases with a book value of $702,000
along with a reduction in the deferred gain of $457,000. In conjunction with the
early  buyout,  the Company recorded an impairment charge of $225,000 on certain
equipment  utilized at the discontinued Oak Ridge facility that were included in
the  early  buyout.

NOTE 12.  DISCONTINUED OPERATIONS

As  of  March  31,  2003,  the  components  of "Assets Held for Sale or Closure"
consisted  of  certain assets relating to the El Centro municipal waste disposal
facility,  which  the  Company sold to a wholly-owned subsidiary of Allied Waste
Industries,  Inc.  on February 13, 2003, and the assets and liabilities relating
to  the  discontinued  Oak  Ridge  processing  and  field  services  operations
classified  as  "Held for Sale or Closure".  Accordingly, the revenue, costs and
expenses  and  cash  flows  for the El Centro and Oak Ridge processing and Field
Services  operations  have  been  excluded  from  the  results  from  continuing
operations and reported as "Income (loss) from discontinued operations" and "Net
cash  used  by  discontinued  operations".  Prior  periods have been restated to
reflect  the discontinued operations. The assets and liabilities of discontinued
operations  included  within the consolidated balance sheet as of March 31, 2003
are  as  follows  (in  thousands):


                                       14
<PAGE>
<TABLE>
<CAPTION>
                                      Processing and Field   El Centro Disposal    Total Assets Held
                                        Services Facility         Facility        for Sale or Closure
                                      ---------------------  -------------------  --------------------
<S>                                   <C>                    <C>                  <C>
Current assets
--------------
    Current assets                    $               2,122  $               868  $              2,990
    Property & equipment, net                           552                   --                   552
                                      ---------------------  -------------------  --------------------
                                                      2,674                  868                 3,542
                                      =====================  ===================  ====================
Non-current assets
------------------
    Property, plant & equipment, net                  1,507                   --                 1,507
    Other                                                49                  681                   730
                                      ---------------------  -------------------  --------------------
                                                      1,556                  681                 2,237
                                      =====================  ===================  ====================
Current liabilities
-------------------
    Accounts payable & accruals                       5,357                  285                 5,642
    Current portion long term debt                       73                   --                    73
                                      ---------------------  -------------------  --------------------
                                                      5,430                  285                 5,715
                                      =====================  ===================  ====================
Non-current liabilities
-----------------------
    Closure/post closure obligations                  5,498                   --                 5,498
    Long-term debt                                       61                   --                    61
    Other                                                31                   --                    31
                                      ---------------------  -------------------  --------------------
                                                      5,590                   --                 5,590
                                      =====================  ===================  ====================
</TABLE>

Operating  results  for  the discontinued operations were as follows for quarter
ending  March  31:

<TABLE>
<CAPTION>
($in thousands)                      Processing and Field   El Centro Disposal    Total Discontinued
                                     Services Operations         Facility             Operations
                                    ----------------------  -------------------  --------------------
<S>                                 <C>                     <C>                  <C>
2003
----
Revenues, net                       $                 779   $               469  $             1,248
Operating income (loss)                            (1,316)                   78               (1,238)
Net income (loss)                                  (1,337)                4,944                3,607
Basic earnings (loss) per share                      (.09)                  .32                  .23
Diluted earnings (loss) per share                    (.09)                  .32                  .23

2002
----
Revenues, net                       $               4,334   $               619  $             4,953
Operating income (loss)                              (265)                  156                 (109)
Net income (loss)                                    (401)                  190                 (211)
Basic earnings (loss) per share                      (.03)                  .01                 (.02)
Diluted earnings (loss) per share                    (.03)                  .01                 (.02)
</TABLE>


El  Centro  Disposal  Facility.  On  February  13, 2003, the Company sold the El
------------------------------
Centro  municipal  and industrial waste landfill to a subsidiary of Allied Waste
Industries,  Inc.  ("Allied")  for  $10  million  cash  at  closing  and  future
volume-based  royalty  payments.  Under  the Agreement, Allied will pay American
Ecology  minimum  royalties of at least $215,000 annually.  Once Allied has paid
the  Company  $14,000,000  in  royalties,  it no longer has an obligation to pay
annual  minimum  royalties,  but  will  still  be  required  to pay royalties if
disposal  volumes  exceed  the  minimum volume threshold. The Purchase Agreement
provides  incentives  for  Allied to bring Texas Class 1 industrial waste to the
Company's  adjacent hazardous waste facility, and for the Company to utilize the
El  Centro  landfill.

The  Company  sold  $7,047,000  of  Property  and  Equipment  in  exchange  for
$10,000,000  of Cash, Royalties valued at $858,000, and the assumption by Allied
of  $1,098,000  of  Closure Liabilities.  A gain of $4,909,000 was recognized in
discontinued  operations  related  to  this  sale.

The  royalties,  valued  at  $858,000, represent the present value of 5 years of
minimum  royalty  payments.  Annual  payments  in excess of $215,000 or payments
subsequent  to  2007  would  be  included  in  Other Income at the time of their
receipt.


                                       15
<PAGE>
For  segment  reporting  purposes, the El Centro landfill operating results were
previously  classified  as  "Operating  Disposal  Facilities".

Oak  Ridge  Processing  Facility  and  Field Services.  During 2002, the Company
-----------------------------------------------------
offered  for  sale  its  LLRW  Processing Facility and Field Services operations
based  in  Oak  Ridge,  TN.  On  December  27,  2002,  the  Company committed to
discontinuing  revenue-producing  waste  processing operations. Since that time,
the  Company  has devoted its primary efforts to removing accumulated waste from
the  facility  to  prepare  the facility for sale. Removal of all waste from the
facility is expected to be completed during June 2003, and a significant portion
had  been  shipped off site for processing and disposal as of March 31, 2003. As
waste is shipped from the facility, detailed information on the exact amount and
character of waste removed is used to refine cost estimates. This resulted in an
additional  accrual  of  $911,000  for  the  three months ending March 31, 2003.
Discussions  continue with potential buyers identified during the fourth quarter
of  2002,  however,  no qualified offers have yet been received and no assurance
can  be  given  that  the Company will be able to sell the Oak Ridge facility on
terms  favorable  to  the  Company.

On  March  28,  2003,  the  Company  recorded an additional impairment charge of
$225,000  on  certain  Oak Ridge equipment acquired under the early buyout of an
operating  lease.

On  December  27,  2002,  management informed all employees that the Company was
discontinuing  commercial processing at the Oak Ridge facility and implemented a
substantial  reduction in the facility's labor force. Terminated union employees
were compensated for prior service, provided health coverage through January 31,
2003,  and  presented  with  a  proposed severance package. Terminated non-union
employees  were  paid  severance  in accordance with written Company policy. For
employees covered under the collective bargaining agreement, the Company entered
into  good  faith severance negotiations with union representatives. The Company
met  on  several  occasions  with  the  union to negotiate severance. Both sides
amended  their  original  proposals  during  these  negotiations,  however,  no
agreement  was  reached.  On  February  3,  2003  the  Company  extended another
severance  package  to  Union  employees, which was not accepted. The Company is
open to additional discussions with the union to reach a satisfactory resolution
of  any  severance  payment.  If  agreement  is  not  reached, the matter may be
litigated.  The  outcome  of potential future negotiations or litigation and any
payments associated with the terminations cannot reasonably be estimated at this
time,  therefore,  no  costs  relating  to  these  employees  have been accrued.
However,  management  believes  any  such  payment  will  not  be  material.

A  summary of the Oak Ridge facility wind down and disposal costs are as follows
for  the  three  months  ended  March  31,  2003:  (in  thousands  $000)

Net operating costs in excess of previous accrual                        $   201
Additional impairment of property and equipment                              225
Increase in estimated cost for disposal of waste at facility                 911
                                                                         -------

Disposal costs for the three months ended March 31, 2003                  $1,337
                                                                          ======

A  summary  of  the  changes  in  the  Oak Ridge facility wind down and disposal
liabilities  are  as  follows:

<TABLE>
<CAPTION>
($in thousands)                     December 31, 2002  Cash Payments   Other Changes  March 31, 2003
                                    -----------------  --------------  -------------  --------------
<S>                                 <C>                <C>             <C>            <C>
Waste disposal liability                        1,827            (29)          1,596           3,394
Facility operating cost liability               1,800           (800)            201           1,201
</TABLE>

Other  Changes  represent  differences between the costs accrued at December 31,
2002 and the March 31, 2003 estimated costs for waste disposal or incurred costs
for  operating  costs.  The Other Changes in the liability is different from the
costs  due  to  discontinued  operations  revenue  realized  by the Company upon
disposal  of  customer  waste.

NOTE 13.  FACILITY DEVELOPMENT COSTS


                                       16
<PAGE>
The  Company  is  involved  in litigation requiring estimates of timing and loss
potential  whose  timing  and ultimate disposition is controlled by the judicial
process. During the quarter ended March 31, 2003, the Company wrote off the Ward
Valley  project  of  $20,951,000  due  to  an adverse court decision, which cast
substantial  doubt  on  the  Company's  ability to recover its investment in the
project.  The  decision  to  accrue  costs or write off assets is based upon the
specific  facts  and  circumstances  pertaining  to  each  case and management's
evaluation  of  present  circumstances.  See  Note  7.

The  Company continues to believe that the facility development costs which were
capitalized  during development of the Butte, Nebraska proposed facility will be
realized, although no assurance that the trial court's decision will be affirmed
on  appeal.  See  Note  7.

ITEM 2.   MANAGEMENT'S  DISCUSSION  AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS.

This document contains forward-looking statements that involve known and unknown
risks  and  uncertainties  which  may  cause actual results in future periods to
differ materially from those indicated herein.  These risks include, but are not
limited  to,  the  ability  to  sell the Oak Ridge processing and field services
subsidiary  (AERC),  compliance with and changes to applicable laws, regulations
and  permits, exposure to litigation, access to capital, access to insurance and
financial assurances, new technologies, competitive environment, labor disputes,
general  economic  conditions,  and  loss  or diminution of major contracts. The
audited  consolidated  financial  statements and the notes thereto filed on Form
10-K  for the year ending December 31, 2002 contains additional risk factors and
an expanded disclosure of these risks.  When the Company uses words like "will",
"may,"  "believes,"  "expects,"  "anticipates," "should," "estimate," "project,"
"plan,"  their  opposites  and  similar  expressions,  the  Company  is  making
forward-looking  statements.  These  terms  are  most  often  used in statements
relating  to  business  plans,  strategies,  anticipated benefits or projections
about  the  anticipated  revenues,  earnings  or  other aspects of our operating
results.  The  Company  makes these statements in an effort to keep stockholders
and  the  public  informed  about our business based on our current expectations
about  future  events. Such statements should be viewed with caution and are not
guarantees  of  future performance or events. As noted elsewhere in this report,
our  business  is  subject to uncertainties, risks and other influences, many of
which the Company has no control over. Additionally, these factors, either alone
or taken together, could have a material adverse effect on the Company and could
change  whether  any  forward-looking statement ultimately turns out to be true.
The Company undertakes no obligation to publicly release updates or revisions to
these  statements.  The  following discussion should be read in conjunction with
the  audited  consolidated  financial  statements and the notes thereto filed on
Form  10-K  for  the  year  ending  December  31,  2002.

Unless otherwise described, changes discussed relate to the increase or decrease
from the three-month period ended March 31, 2002 to the three-month period ended
March  31,  2003.

INTRODUCTION
------------

The Company is a hazardous, PCB, non-hazardous, and radioactive waste management
company  providing  treatment and disposal services to commercial and government
entities  including,  but  not  limited  to nuclear power plants, petro-chemical
refineries,  steel mills, the U.S. Department of Defense, biomedical facilities,
universities and research institutions. The majority of its revenues are derived
from fees charged for use of the Company's four fixed waste disposal facilities.
The  Company  and  its  predecessors  have  been  in  business  for  51  years.

OVERALL  COMPANY  PERFORMANCE
-----------------------------

The  Company's  reported  financial performance for the three months ended March
31, 2003 was weaker than the first and fourth-quarters of 2002, primarily due to
several  large  events,  although  a  general  weakening of the economy has also
impacted  performance:

Ward  Valley:  Due  to  the adverse California state court decision on March 26,
------------
2003,  the  Company  wrote off $20,951,000 of facility development costs for the
Ward  Valley  project,  which  is  included  in Write off of Ward Valley Project
within  the Consolidated Statement of Operations. $1,498,000 in associated legal


                                       17
<PAGE>
and  expert  witness  fees incurred during the quarter ended March 31, 2003 were
included  in SG&A. The Company has not yet decided whether to appeal the court's
decision.

Army  Corps  of  Engineers Fort Greely, Alaska Project:  The Company performed a
-------------------------------------------------------
$3,850,000  disposal  project  during  the  quarter  ended March 31, 2002, which
represented  29%  of  first  quarter  2002  revenues. This large project was not
replaced  by  like  business  in  the  quarter.

FAS 143: The Company implemented FAS 143 on January 1, 2002.  FAS 143 requires a
--------
liability  to be recognized as part of the fair value of future asset retirement
obligations  and  an  associated  asset to be recognized as part of the carrying
amount  of  the  underlying  asset.  The implementation of FAS 143 resulted in a
$13,141,000  cumulative  effect  of  change  in  accounting principle during the
quarter  ended  March  31,  2002.

Sale  of  El  Centro:  On  February  13,  2003,  the  Company sold the El Centro
---------------------
municipal  waste  landfill  to  Allied Waste and recognized a $4,909,000 gain on
sale,  which  has  been  included  in discontinued operations during the quarter
ended  March  31,  2003.

Oak  Ridge  Disposal  Plan:  On  December  27,  2002,  the  Company committed to
---------------------------
discontinue  operations  at  the Oak Ridge facility and recognized $7,018,000 of
additional  costs  required  under  the  disposal plan. During the quarter ended
March  31,  2003, the Company identified or incurred an additional $1,337,000 in
costs  required  to  remove  accumulated waste from the facility. This primarily
reflects more accurate information on the specific quantity and type of waste to
be  removed.

A  significant  portion  of  the  Company's  revenue is attributable to discrete
clean-ups ("Event Business").  The project-specific nature of the Event Business
necessarily  creates variability in revenue and earnings. This can produce large
quarter  to  quarter  swings, depending on the relative contribution from single
Event  Business.  Management's  strategy  is  to  expand  its recurring customer
business  ("Base  Business")  while simultaneously securing both large and small
event opportunities. Management believes that by structuring its operating costs
so  that  the  Company's  Base  Business  covers  fixed costs, more of the Event
Business  revenue  will  fall  through  to  the bottom line. This strategy takes
advantage  of  the  high  fixed  cost  nature  of  the  disposal  business.

CRITICAL  ACCOUNTING  POLICIES
------------------------------

In  preparing  the  financial  statements,  management  makes many estimates and
assumptions  that  affect  the  Company's  financial  position  and  results  of
operations.  It is unlikely that changes in most estimates and assumptions would
materially  change  the  Company's financial position and results of operations.
Disposal  Facility  Accounting,  Accounting  for  Discontinued  Operations,
Litigation,  Income  Taxes, and Project Accounting involve subjective judgments,
estimates  and  assumptions  that  would  likely  produce a materially different
financial position and result of operation if different judgments, estimates, or
assumptions  were  used.  These  matters  are  discussed  below.

DISPOSAL  FACILITY  ACCOUNTING
In  general  terms,  a  disposal  cell  development asset exists for the cost of
building  usable  disposal  space  and  a  closure liability exists for closing,
maintaining  and  monitoring  the disposal unit once this space has been filled.
Major  assumptions  and  judgments used to calculate cell development assets and
closure  liabilities  are  as  follows:

-    Personnel  and  equipment  costs  incurred  to construct disposal cells are
     identified  by  management  and  capitalized  as  a cell development asset.

-    The  cell  development asset is depreciated as each available cubic yard of
     disposal  space  is  filled.  Periodic  independent engineering surveys and
     inspection  reports  are  used to determine the remaining volume available.
     These  reports  take  into account waste volume, compaction rates and space
     reserved  for  capping  filled  cells.

-    The closure liability is the present value based on a current cost estimate
     prepared by an independent engineering firm of the costs to close, maintain
     and  monitor disposal units. Management estimates the timing of payment and
     then  accretes  the  current  cost  estimate by an estimated cost of living
     (1.5%),  and  then discounts (9.3%) the accreted current cost estimate back
     to  a  present  value.  The  final  payments  of  the closure liability are
     currently  estimated  as  being  paid  in 2056 based upon current permitted
     capacity  and  estimated  annual  usage.


                                       18
<PAGE>
ACCOUNTING  FOR  DISCONTINUED  OPERATIONS
Accounting  for discontinued operations requires numerous subjective and complex
judgments,  estimates  and  assumptions that materially affect financial results
and  position  of  discontinued  operations.

At  December  27,  2002,  the  Company committed to discontinue operation of its
former  Processing  and Field Services segment in Oak Ridge, Tennessee facility.
The  discontinued operations were accounted for under Emerging Issues Task Force
Issue  No  94-3  Liability Recognition for Certain Employee Termination Benefits
and  Other  Costs  to  Exit  an  Activity (including Certain Costs Incurred in a
Restructuring), which requires a liability to be recognized at the time that the
decision  to  exit  the  segment  was  made. EITF 94-3 was chosen as the guiding
literature  rather  than  Statement  of  Financial  Accounting Standards No. 146
Accounting  for  Costs  Associated  with  Exit or Disposal Activities (FAS 146),
which  requires  a  liability to be recognized at the time that the liability is
incurred.  FAS  146  is required for exit activities entered into after December
31,  2002  and  was  optional  for  exit  activities prior to December 31, 2002.
Approximately  $1,800,000  of liabilities was recognized as of December 31, 2002
under  EITF  94-3  that  would  not  have been recognized until incurred had the
Company  adopted  FAS  146  prior  to  December  27,  2002.

During  the  quarter  ended March 31, 2003, the Company recognized $1,112,000 in
incremental  liabilities  and  $225,000  for impairment of equipment relating to
discontinuation  of its Oak Ridge LLRW Processing and Field Services operations.
The Company has assumed that the Oak Ridge facility will be cleared of remaining
material in June 2003. Due to the ongoing status of the waste removal effort and
related  preparation  for  sale, the cost estimate for exit from the segment may
change,  potentially  by  a  material  amount.

LITIGATION
The  Company  is  involved  in litigation requiring estimates of timing and loss
potential  whose  timing  and ultimate disposition is controlled by the judicial
process.  During  the  quarter  ended  March  31,  2003,  the  Company wrote off
$20,951,000  due  to  an adverse court decision, which cast substantial doubt on
the  Company's ability to recover its investment in the Ward Valley project. The
decision  to  accrue  costs or write off assets is based upon the specific facts
and circumstances pertaining to each case and management's evaluation of present
circumstances.

INCOME  TAXES
The Company has historically recorded a valuation allowance against its deferred
tax  assets  in  accordance with FAS 109, Accounting for Income Taxes. This past
valuation  allowance  reflected management's belief that due to a history of tax
losses  and  the  previously  weak  financial  condition  and  prospects for the
business,  it  was  more  likely  than  not  that  the Company would not utilize
portions  of  the  deferred  tax assets prior to their expiration. The valuation
allowance  is  based on management's contemporaneous evaluation of whether it is
more  likely  than  not that the Company will be able to utilize some, or all of
the  deferred  tax  assets.  During  2002,  the  Company  assessed the valuation
allowance  and reversed approximately $8,284,000 of the valuation allowance that
the  Company  expected  to  utilize in the foreseeable future.  During the three
months  ended  March  31, 2003, the Company reclassified the entire net deferred
tax asset as long term, given that no taxable income is expected during 2003 due
to  the  impact  of  the  write  off  of  the  Ward  Valley  Project.

PROJECT  ACCOUNTING
The  Company  has  performed  relatively  large,  fixed  fee  and  long-duration
remediation projects through the Company's discontinued Oak Ridge Field Services
Division.  Securing  contracts  to  perform  work  required  the Company to make
assumptions  regarding  job  duration,  percentage  of  completion  for  waste
processing,  and disposal costs that would not be known until the actual project
is  complete.  Differences  between estimated and actual cost to remove, process
and  arrange  final disposal of contaminated material can vary widely, resulting
in  potentially  significant changes in individual project profit or loss. As of
March  31,  2003,  one  major  project  is  awaiting  completion. Changes in the
estimated  cost  to  complete may positively or negatively impact the results of
discontinued  operations.

RESULTS  OF  OPERATIONS
-----------------------


                                       19
<PAGE>
The  following  table  presents,  for  the  periods indicated, the percentage of
operating  line  items  in  the  consolidated  income  statement  to  revenues:

<TABLE>
<CAPTION>
                                                                  Three Months Ended
                                                        -----------------------------------------
($in 000's)                                                March 31, 2003        March 31, 2002
                                                        --------------------  -------------------
                                                             $          %        $          %
                                                        -----------  -------  --------  ---------
<S>                                                     <C>          <C>      <C>       <C>
Revenue                                                     10,771             13,424
Direct operating costs                                       5,984     55.6%    6,175       46.0%
                                                        -----------           --------

Gross profits                                                4,787     44.4%    7,249       54.0%
SG & A                                                       4,497     41.8%    3,541       26.4%
                                                        -----------           --------

Income from operations                                         290      2.7%    3,708       27.6%

Investment income                                               --       --%       11        0.1%
Interest expense                                               121      1.1%      265        2.0%
Write off of Ward Valley                                    20,951    194.5%       --         --%
Other income (expense)                                          --       --%     (465)      -3.5%
                                                        -----------           --------

Net income (loss) before income tax, discontinued
operations and cumulative effect of accounting change      (20,782)  -192.9%    2,989       22.3%
Income tax expense (benefit)                                    (8)    -0.1%       --         --%
                                                        -----------           --------

Net income (loss) before discontinued operations and
cumulative effect of accounting change                     (20,774)  -192.9%    2,989       22.3%
Discontinued operations - El Centro Landfill                 4,944     45.9%      190        1.4%
Discontinued operations - Oak Ridge LLRW Facility           (1,337)   -12.4%     (401)       3.0%
Cumulative effect of accounting change                          --       --%   13,141       97.9%
                                                        -----------           --------

Net income (loss)                                          (17,167)  -159.4%   15,919      118.6%

Preferred stock dividends                                       64      0.6%       98        0.7%
                                                        -----------           --------

Net income available to common shareholders                (17,231)    -160%   15,821      117.9%
                                                        ===========           ========
</TABLE>

COMPARISON  OF  THREE  MONTHS  ENDED  MARCH  31,  2003  AND  2002
-----------------------------------------------------------------

REVENUE
-------

For  the  three  months  ended March 31, 2003, the Company reported consolidated
revenue  of  $10,771,000,  a  20% decrease from the $13,424,000 reported for the
same  period  in  2002.  During the three months ending March 31, 2003 and 2002,
$4,156,000  and  6,129,000  or 39% and 47% of revenue, respectively, represented
work  performed  under contract with the U.S. Army Corps of Engineers. The Corps
of  Engineers and other federal agencies continue to ship waste to the Company's
Grand  View,  Idaho  treatment  and disposal facility under contract. During the
three  months  ending  March 31, 2003, 10% of revenue represented work performed
for  Nucor  Steel  Company.

Operating  Disposal  Facilities
-------------------------------
The  Richland,  Washington LLRW disposal facility's revenue decreased $3,208,000
for  the  three  months  ended  March 31, 2003 from the same period in 2002. The
decrease  in  revenue  was  primarily  due  to  a stand alone $3,850,000 project
performed  for  the  Army  Corps  of Engineers during the first quarter of 2002,
which was not replaced by a like project in 2003. While a significant portion of
the  Richland  facility's  revenue is fixed due to its regulation as a monopoly,
during  the  fourth quarter of 2002 the Company hired an experienced salesperson


                                       20
<PAGE>
to  improve  unregulated  revenues  at the site. Higher unregulated revenues are
expected  in  the  second  quarter  of  2003.

At  the Grand View, Idaho disposal facility, revenue increased $1,142,000 or 24%
from  the same period last year. During the first quarter, the facility disposed
of 78,000 tons of material, with a large percentage representing usage under the
Army  Corps  of  Engineers  contract.  It  is  expected  that  the Army Corps of
Engineers  and  other federal agencies will continue to ship significant volumes
of  material  to  the  facility  throughout  2003.

In  the  three  months  ending  March  31,  2003,  revenue at the Beatty, Nevada
disposal  facility  was $197,000 higher than the same quarter of 2002, primarily
due to increased throughput of thermal processing material. In the first quarter
of  2002, the Company experienced problems with the thermal processing units and
entered  into an incentive-driven operating agreement with the thermal equipment
manufacturer  that,  combined  with  enhanced  marketing, has produced increased
throughput.  Increased  thermal  treatment  volumes  offset  a decline in direct
disposal  volume  and  revenue  due  to  general economic weakness, resulting in
improved  revenue  for  the  quarter  ending  March  31,  2003.

At  the  Robstown,  Texas  hazardous  treatment  and  disposal facility, revenue
decreased  $720,000  for  the  three  months  ended March 31, 2003 from the same
period  in  2002.  The  decrease in revenue was primarily due to reduced "Event"
business. General economic weakness was also a factor. The Company continues its
efforts  to increase revenue and throughput at this facility, primarily focusing
on  the  site  management,  operational  improvements and focused sales efforts.
Revenue  is  not  expected to increase significantly, however, until the economy
improves.

DIRECT  OPERATING  COSTS
------------------------

For  the  three months ended March 31, 2003, consolidated direct operating costs
decreased  3%  to  $5,984,000  (56%  of  revenue) compared to $6,175,000 (46% of
revenue)  in  the  same  period  in 2002. The relatively higher direct operating
costs  largely  reflect  the  high  fixed  cost  nature of the disposal business
(direct  costs  do  not  materially  vary  due  to  revenue).

Operating  Disposal  Facilities
-------------------------------

An  increase  in  direct operating costs at the Beatty, Nevada disposal facility
during  the  three  months  ended  March  31,  2003  was  offset by lower direct
operating  costs at the Grand View, Idaho and Robstown, Texas facilities. Direct
cost  at  the  Richland facility remained flat. The increase in direct operating
costs at Beatty was due to increased volumes of waste processed and disposed of,
including  elimination of a significant backlog of difficult to treat waste that
had  accumulated  over  time.  It  is  expected  that direct costs at the Beatty
facility  will  decrease  in  the  second  quarter.

Non  Operating  Disposal  Facilities
------------------------------------

Non  Operating  Disposal  Facilities  incur primarily legal and consulting costs
required  to  maintain  licenses  and  labor  costs required to safely close and
maintain  the  facilities  subsequent  to operational use.  For the three months
ended  March 31, 2003 and 2002, the Company reported $0 and $187,000 of expenses
related  to  licensing  facilities  for  initial use and $99,000 and $118,000 of
costs  in  2003  and  2002  to  close  or maintain facilities subsequent to use.

SELLING,  GENERAL  AND  ADMINISTRATIVE  COSTS  (SG&A)
-----------------------------------------------------

For  the  three  months  ended  March  31,  2003,  the  Company reported SG&A of
$4,497,000 (42% of revenue), a 27% increase from the $3,541,000 (26% of revenue)
for  the  same three months of 2002.  The increase in SG&A is a direct result of
$1,353,000  increase  in  legal  and  expert  witness  fees  associated with the
recently  concluded  Ward  Valley  trial.

Operating  Disposal  Facilities
-------------------------------
At  the  Richland,  Washington  LLRW  disposal facility, SG&A decreased $931,000
during the three months ended March 31, 2003. The decrease is primarily due to a
$3,850,000  project  performed  for  the  Army  Corps  of Engineers in the first
quarter  of 2002 for which the Company incurred $870,000 of site use taxes. This
did  not  recur  in  2003.


                                       21
<PAGE>
At  the  Beatty,  Nevada  disposal  facility, SG&A increased $146,000 during the
three  months ended March 31, 2003. The increase is due to increased operational
costs.  Management  expects  lower  SG&A  in  the  second  quarter.

The  remaining  Operating  Disposal  Facilities maintained SG&A at approximately
2002  levels.  Similar  to  direct  costs,  this  highlights  the  fact that the
majority  of  facility  costs  are  fixed  costs.

Non  Operating  Disposal  Facilities
------------------------------------

Non  Operating  Disposal  Facilities  incur primarily legal and consulting costs
required  to  maintain the Company's legal rights to facilities prior to initial
operation, or to manage liabilities at facilities subsequent to operational use.
For  the  three  months  ended  March  31,  2003  and 2002, the Company reported
$1,498,000  and  $80,000  of  SG&A expenses at Non Operating Disposal Facilities
with  substantially  all  of the 2003 expenses being legal costs associated with
the  Ward  Valley  litigation.

Corporate
---------

While management continues to focus on cost containment, new investment is being
made  in  information  system infrastructure and upgraded staffing. Beginning in
July  2002,  the  Company  launched  an  initiative  to  materially  upgrade its
production  and  financial  information  systems.  On  May  6, 2003, the Company
implemented  this  new information systems upgrade at two of its hazardous waste
treatment  and  disposal facilities. During the last few months, the Company has
taken  action  to  centralize  its  accounting  function, which is now complete.
Management  believes  that full implementation of an enhanced information system
platform  and  centralized  accounting  will increase operational efficiency and
improve the availability and timeliness of financial and management information.
Approximately  $150,000 to $200,000 of these costs were incurred and expensed in
2002  with  another  $100,000  incurred and expensed during the first quarter of
2003.  The Company expects to continue to invest in information systems upgrades
for  the  balance  of  the  year,  although  at  a  lower  rate.

INVESTMENT  INCOME
------------------

For  the  three  months  ended  March  31,  2003,  the  Company did not earn any
investment  income.  Investment  income is earnings on cash balances, restricted
investments,  and  notes receivable of which the Company traditionally maintains
minimal  amounts  and  are  a  function  of prevailing market rates. The Company
received  approximately  $10,000,000  from  the February 13, 2003 sale of the El
Centro  municipal  waste landfill. This cash was utilized to support operations,
for  capital expenditures and to fund the retirement of Series D Preferred Stock
and accrued dividends. The balance was maintained in very short term investments
and  did not earn any net investment income. Due to decreasing cash balances and
low  interest  rates,  the  Company  does  not anticipate significant investment
income.

INTEREST  EXPENSE
-----------------

For the three months ended March 31, 2003, the Company reported interest expense
of  $121,000,  or  a decrease of $144,000 from the corresponding period in 2002.
The  primary  cause  of  this  decrease  is  the  refinancing  of the $8,500,000
industrial  revenue  bond ("IRB") for the Grand View, Idaho facility, which bore
an  interest  rate of 8.25%. The IRB was substantially refinanced on November 1,
2002 with a $7,000,000, five year, fully amortizing term loan from the Company's
primary lender, Wells Fargo Bank. The term loan provides for a variable interest
rate of the bank's prime rate or an offshore rate plus an applicable margin that
is  based  upon the Company's performance. For the quarter ended March 31, 2003,
the  interest  rate  paid on the majority of the outstanding term loan was 3.7%.
Additional  reductions  in  interest  expense  are  attributable to management's
initiative  to retire high cost debt, with no new debt being incurred other than
periodic  borrowings  under  the  line  of  credit.

OTHER  INCOME  (LOSS)
---------------------

Other  Income  is  composed  of  the  following  ($  in  thousands):


                                       22
<PAGE>
<TABLE>
<CAPTION>
                                                  Three Months Ended March 31,
                                                ---------------------------------
<S>                                             <C>               <C>
                                                      2003             2002
                                                ----------------  ---------------

Litigation accrual related to GM settlement     $             --  $         (740)
Payment received on National Union settlement                 --             250
Insurance claim refunds                                       --              25
Other miscellaneous income, net                               --              --
                                                ----------------  ---------------

Total other income (loss)                       $             --  $         (465)
                                                ================  ===============
</TABLE>

INCOME TAXES
------------

The  components  of  the  income  tax  provision  (benefit)  were as follows (in
thousands):

                                 Three Months Ended March 31,
                               ----------------  -------------
                                     2003            2002
                               ----------------  -------------

  State tax expense (benefit)               (8)             --
                               ================  =============

The  tax effects of temporary differences between income for financial reporting
and  taxes  give  rise  to  deferred tax assets and liabilities. The Company has
historically  recorded a valuation allowance for certain deferred tax assets due
to  uncertainties  regarding  future  operating  results  and for limitations on
utilization of acquired net operating loss carry forwards for tax purposes.  The
potential  realization  of  a  significant portion of net deferred tax assets is
based  in  part on the Company's estimates of the timing of reversals of certain
temporary  differences  and  on  the  generation  of  taxable income before such
reversals.  In  2002,  the  Company reevaluated the deferred tax asset valuation
allowance,  determined  it was then "more likely than not" that a portion of the
deferred  tax  asset  would  be  realizable,  and  decreased  the portion of the
valuation  allowance  related  to  its  operating  facilities.

During  the  quarter ended March 31, 2003, the Company wrote off its $20,951,000
of  Ward  Valley asset.  This large write off virtually assures the Company of a
tax  loss  in  2003.  Due to this expected loss, the $8,284,000 net deferred tax
asset  has been classified as long term. Management expects to realize a portion
of  this  asset  in  2004.

The  net  operating loss carry forward is approximately $48,000,000 at March 31,
2003. Of this carry forward, approximately $2,745,000 is limited pursuant to the
net  operating  loss  limitation  rules of Internal Revenue Code Section 382 and
begins  to  expire  in 2006. The remaining unrestricted net operating loss carry
forward  expires  at  various  dates  between  2010  and  2020.

SEASONAL  EFFECTS
-----------------

Operating  revenues  are  generally  lower  in the winter months than the warmer
summer  months when short duration, one-time remediation projects tend to occur.
However,  both  disposal  and  processing  revenue  are  more affected by market
conditions  than  seasonality.

CAPITAL  RESOURCES  AND  LIQUIDITY
----------------------------------

On  March 31, 2003, cash and cash equivalents totaled $7,134,000, an increase of
$6,999,000 from December 31, 2002. The increase in cash was primarily due to the
sale  of  El  Centro  for  $10,000,000  in cash. The Company expects significant
reductions in cash balances during the remainder of 2003 as cash is utilized for
new disposal cell construction at its Grand View, Idaho facility and disposal of
waste  removed  from  the  Oak  Ridge, Tennessee facility. Also, in September of
2003,  the  Company's  primary  financial  assurance insurance for its hazardous
waste  disposal  facilities  expires.  It  is  expected  that  the cost and cash
collateral  requirements  of  this  insurance  will  increase.  Depending  upon
collateral  requirements, the new insurance terms could have a material, adverse
impact  on  the  Company's  cash  position.

On  February  28,  2003,  the Company repurchased all 100,001 shares of Series D
Preferred  Stock  outstanding for a net cash outflow of $2,800,000 after netting
out  proceeds  of  $3,525,000  in  cash  received from the issuance of 2,350,000
common  shares  issued upon exercise of the Series E Warrants. Repurchase of the
Series  D  Preferred  Stock  eliminated  an  8  3/8%  debt instrument due to the


                                       23
<PAGE>
preferred stockholders and removed the potential dilution that the conversion of
these  shares  would  have  had on common stockholders. In addition to regularly
scheduled  debt  payments, the Company early retired $548,000 of relatively high
cost  debt  in  the  first  three months of 2003 as well as the retirement of an
additional  $658,000  of  debt  secured  by equipment included in the sale of El
Centro.  These  preferred  stock  and  debt reduction actions reflect management
initiatives  to  improve  the  Company's  balance  sheet  and  maximize  asset
utilization.

On  March  28, 2003 the Company exercised an early buyout of the operating lease
for  $1,159,000  and  recorded equipment purchases with a book value of $702,000
along with a reduction in the deferred gain of $457,000. In conjunction with the
early  buyout,  the Company recorded an impairment charge of $225,000 on certain
equipment  utilized at the discontinued Oak Ridge facility which was included in
the  early  buyout.

The  early lease buyout accomplished three objectives. The primary objective was
the  repayment  to  Wells Fargo Bank of at least $500,000, which was required by
the  Bank  as a condition for approving the repurchase of the Series D Preferred
Stock.  In  addition,  the  Company cleared title to leased equipment at the Oak
Ridge  facility  to support ongoing efforts to sell the facility. Lastly, buyout
of  the operating lease eliminated an expensive source of capital, improving the
Company's  overall  cost  of  capital.

During  the  first  three months of 2003, the Company's "days sales outstanding"
decreased to 66 days at March 31, 2003, compared to 77 days at December 31, 2002
due  in  large  part  to  the  Company's focus on improving cash flow. Continued
improvements  in cash and receivable balances are a priority objective for 2003.

As  of March 31, 2003 the Company's liquidity, as measured by the current ratio,
decreased  to  1.2  to  1.0  from 1.5 to 1.0 at December 31, 2002. Likewise, the
Company's  reported  working  capital  decreased to $3,731,000 at March 31, 2003
from  $8,087,000  on  December 31, 2002. The primary reasons for the decrease in
working  capital  were  the  repurchase  of  the Series D Preferred Stock, which
resulted  in  a  net  cash  outflow  of  $2,800,000, the retirement of debt, and
$2,277,000  in  capital  expenditures  from  cash  in  the  quarter.

Since  December  31, 2002, the Company's leverage has increased, as evidenced by
debt to equity ratio of 1.3:1.0 at March 31, 2003, compared to 0.9:1.0 at fiscal
year-end  2002.  The  debt  to  equity ratio is defined as total debt divided by
shareholders  equity. This increase in the Company's leverage is principally the
result  of  the  $20,951,000  write  off  of  the  Ward  Valley  asset.

On  September  30, 2002, the Company had in place a $6,000,000 revolving line of
credit with Wells Fargo Bank in Boise, Idaho maturing June 15, 2004. The line of
credit  is  secured  by the Company's accounts receivable. At March 31, 2003 and
December  31,  2002, the outstanding balance on the revolving line of credit was
$0  and  $603,000,  respectively.  The  Company  borrows and repays according to
business  demands  and availability of cash and currently reserves $1,150,000 of
the  revolving  line  of  credit as a letter of credit used as collateral for an
insurance  policy.

Management  estimates  capital  expenditure  needs  for  2003  of  approximately
$9,200,000.  Along  with  the  normal  replacement of aging assets, a $4,500,000
expansion  of  disposal  capacity at the Grand View, Idaho facility is currently
underway.

The  Company's  Oak  Ridge  facility  continues  to use several hundred thousand
dollars  a month of cash. Usage of cash is expected to increase as waste shipped
off  site  is disposed of and billed. At March 31, 2003, the Company's Oak Ridge
facility  had  liabilities  expected  to  be  paid  in  2003  of  $5,400,000, or
approximately  $600,000  a  month.

The Company believes that cash on hand, and cash flow from operations, augmented
as needed by periodic borrowings under the line of credit, will be sufficient to
meet  the  Company's  cash  needs  for  the  foreseeable  future.

ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

The  Company  does not maintain equities, commodities, derivatives, or any other
instruments  for  trading  or  any  other  purposes,  and  does  not  enter into
transactions  denominated  in  currencies  other  than  the  U.S.  Dollar.


                                       24
<PAGE>
The Company has minimal interest rate risk on investments or other assets as the
amount  held  is  traditionally  the minimum requirement imposed by insurance or
government  agencies.  At March 31, 2003, $244,000 is held in short term pledged
investment  accounts  and  $740,000  in  tax  refunds  is  due  from the Federal
Government.  Together  these  items  earn  interest  at  approximately  5%,  and
comprise  1.5%  of  assets.  An  additional  $6,500,000  is  held  in short term
investments with the majority expected to be utilized by the Company in 2003 for
scheduled  capital  expenditures  and  payment  of  accrued  liabilities.

The  Company  does  have interest rate risk on debt instruments.  On October 28,
2002,  the  Company  substantially  refinanced  the  8.25% fixed rate $8,500,000
Industrial  Revenue  Bond  with  a  $7,000,000  five  year  term  loan  from the
Company's primary lender. The term loan provides for a variable interest rate of
the  bank's  prime  rate  or  an offshore rate plus an applicable margin that is
based  upon  the  Company's  performance.  At  March  31, 2003 the interest rate
incurred  by  the  Company  was  3.7%  on  the  outstanding term loan balance of
$6,533,000.

ITEM 4.   CONTROLS AND PROCEDURES.

(a)  Within  the  90  day  period  prior  to  the filing of this report, Company
management,  under  the  direction  of  the  Chief  Executive  Officer and Chief
Financial  Officer, carried out an evaluation of the effectiveness of the design
and  operation  of  the Company's disclosure controls and procedures pursuant to
Rule  13a-14  of the Securities Exchange Act of 1934 (Exchange Act).  Based upon
that evaluation, the Chief Executive Officer and Chief Financial Officer believe
that  the  Company's  disclosure controls and procedures are effective in timely
alerting  them to material information required to be disclosed in the Company's
Exchange  Act  filings.

(b)  The  Company  maintains  a system of internal controls that are designed to
provide reasonable assurance that its records and filings accurately reflect the
transactions  engaged  in.  For the quarter ending March 31, 2003, there were no
significant  changes  to  internal  controls  or  in  other  factors  that could
significantly  affect  these  internal  controls.

PART II OTHER INFORMATION.
-----------------------------
ITEM 1.   LEGAL PROCEEDINGS.

Significant  developments  have  occurred  on  the following legal matters since
December  31,  2002:

US ECOLOGY, INC. V. THE STATE OF CALIFORNIA, ET AL., CASE NO.GIC747562, SUPERIOR
---------------------------------------------------
COURT  OF  THE  STATE  OF  CALIFORNIA  FOR  THE  COUNTY  OF  SAN  DIEGO

In  May  2000,  the  Company's  subsidiary,  US Ecology, Inc., sued the State of
California,  its  Governor,  Gray  Davis,  and the Director of its Department of
Health  Services  (DHS)  and  other  State  entities  ("the State") for monetary
damages  exceeding  $162 million. The suit stems from the State's abandonment of
the  Ward  Valley  low-level  radioactive  waste  ("LLRW")  disposal  project.
California  law requires the state to build a disposal site for LLRW produced in
California,  Arizona,  North  Dakota  and  South  Dakota;  member  states of the
Southwestern Compact.  US Ecology was selected in 1985 to locate and license the
site using its own funds on a reimbursable basis. In 1993, US Ecology obtained a
license  from  the  DHS  and  entered  a  ground  lease.

The  State successfully defended the license against court challenges and, until
Governor  Davis  took  office,  actively pursued conveyance of the site from the
federal  government.  In September 2000, the Superior Court granted California's
motion to dismiss all causes of action, which the Company appealed. In September
2001,  the  California Court of Appeal Fourth Appellate District Appellate Court
upheld  the  trial court's decision in part and denied it in part, remanding the
case  for  trial  based on the Company's promissory estoppel claim. The case was
tried  in Superior Court for the County of San Diego in February and March 2003.

On  March  26, 2003, Superior Court Judge E. Mac Amos, Jr. issued a Statement of
Decision  finding  that  the  Company failed to establish causation and that its
claim  is  further  barred  by  the doctrine of unclean hands. The unclean hands
finding  was  based  on  actions the Court concluded had created obstacles to an
agreement between the federal government and the State to convey the Ward Valley
property  to  the State. The Court also found, however, that certain elements of
the  Company's promissory estoppel claim had been established. Specifically, the
Court ruled that the State made a clear and unambiguous promise to US Ecology in
1988  to  use  its  best efforts to acquire the Ward Valley site, that the State


                                       25
<PAGE>
subsequently  abandoned  this promise during Governor Davis' administration, and
that  the  Company's  reliance  on  the  State's  promise  was  reasonable  and
foreseeable.  However,  the  Court  found  that  the  State's breach of its best
efforts  promise  was  not a substantial factor in causing damages to US Ecology
since  the  federal  government  had  continued  to  resist  the  land transfer.

On  May 2, 2003, the Company filed a Motion to Vacate with the trial court based
on  advice of counsel that the March 26 decision had misapplied the facts of the
case  to  the  law  with respect to both the adverse causation and unclean hands
findings.  The  Company  will  await  a ruling on this motion before determining
whether  or  not to pursue an appeal to the California Fourth Appellate District
Court.

Based  on  the  trial  court's  decision,  management  is  no longer certain the
Company's  investment  in the Ward Valley project can be recovered. As a result,
the  Company  has  written  off  the $20.951,000 deferred site development asset
previously  reflected  on  its  balance  sheet.

MANCHAK  V.  US  ECOLOGY,  INC., U.S. DISTRICT COURT FOR THE DISTRICT OF NEVADA,
-------------------------------
CIVIL  ACTION  NO.  96-494.

In March 1996, Frank Manchak, Jr. ("Plaintiff" or "Manchak") filed suit alleging
infringement  of  a  sludge treatment patent to stabilize hazardous waste at the
Company's  Beatty,  Nevada  hazardous  waste  disposal facility. Plaintiff seeks
unspecified  damages  for  infringement,  treble  damages,  interest,  costs and
attorney  fees.  On  October 17, 2002, the US District Court for the District of
Nevada  granted  the  Company's motion for summary judgment to dismiss the suit.
Manchak's  motion  for  reconsideration  was denied on January 8, 2003.  Manchak
appealed,  however,  plaintiff  appears  to  have  failed  to  timely  file  an
appellant's  brief  and  the Company moved to dismiss the appeal.  The Company's
motion  to  dismiss is pending.   In January 2003, the Company filed a motion to
recover  legal  fees  and expenses. This motion was denied, which the Company is
considering  appealing.  The  Company  does not believe it infringed any Manchak
patent  and  will  continue  to  vigorously  defend  the  case.

ENTERGY  ARKANSAS,  INC.,  ET AL, CENTRAL INTERSTATE LOW-LEVEL RADIOACTIVE WASTE
--------------------------------------------------------------------------------
COMMISSION  AND  US  ECOLOGY,  INC. ("PLAINTIFFS") V. STATE OF NEBRASKA, ET AL.,
------------------------------------------------------------------------------
CASE  NO.  4:98CV3411,  U.S.  DISTRICT  COURT,  DISTRICT  OF  NEBRASKA

This  action  was  brought  in  federal  court  in  December of 1999 by electric
utilities  that generate low-level radioactive waste ("LLRW") within the Central
Interstate  Low-Level  Radioactive  Waste  Compact  (CIC). CIC member states are
Nebraska,  Kansas,  Oklahoma,  Arkansas,  and  Louisiana.  The  action  seeks
declaratory  relief  and  damages  for  bad  faith  in  the  State of Nebraska's
processing  and ultimate denial of US Ecology's application to site, develop and
operate  a  LLRW disposal facility near Butte, Nebraska. US Ecology is the CIC's
contractor  and  developer.  The  CIC  was  originally  named as a defendant and
subsequently  realigned  as  a  plaintiff. US Ecology intervened as a plaintiff.

The  CIC sought to recover contributions made by the utilities and US Ecology to
the  CIC  for  pre-licensing  project  costs  in  the approximate amounts of $95
million  and  $6.2  million,  respectively, and removal of the State of Nebraska
from  the  licensing  process.  The Eighth Circuit Court of Appeals subsequently
dismissed  the  utilities'  and US Ecology's independent claims against Nebraska
for  breach  of  the  good faith provision of the Compact, and for denial of due
process  based on sovereign immunity.  The utilities and US Ecology subsequently
filed  cross claims against the CIC for breach of contract and the imposition of
a  constructive  trust.

On  September  30,  2002,  the  US  District  Court for the District of Nebraska
entered  judgment  against  Nebraska  in  favor  of  the  CIC  for $153 million,
including  approximately  $50 million for prejudgment interest.  Of this amount,
US  Ecology's share was for a $6.2 million contribution and $6.1 for prejudgment
interest.  The $6.2 million contribution in included within the balance sheet as
capitalized  facility development costs. The Court also dismissed the utilities'
and  US  Ecology's  cross  claims  for  breach  of  contract and imposition of a
constructive  trust, finding that it was premature to decide the merits of these
claims  and  leaving  the question open for future resolution if necessary.  The
State  appealed  the  judgment  to  the  Eighth  Circuit Court of Appeals. It is
currently  expected  that  the  case  will be argued in the fall of 2003 with an
appeals  court  decision  around the end of 2003. No assurance can be given that
the  trial  court's  decision will be affirmed on appeal or that US Ecology will
recover  its  contributions  or  interest  thereon.

MATTIE  CUBA,  ET AL. V. AMERICAN ECOLOGY ENVIRONMENTAL SERVICES CORPORATION, ET
--------------------------------------------------------------------------------
AL.,CAUSE  NO.  2000-092,  4TH  JUDICIAL  DISTRICT  COURT,  RUSK  COUNTY,  TEXAS
---


                                       26
<PAGE>
This  suit  was  brought  in  November  2000  by 28 named plaintiffs against the
Company  and  named  subsidiaries, the former owners and approximately 60 former
customers  of  its Winona, Texas facility. Plaintiffs seek recovery for personal
injuries,  property  damages  and  exemplary  damages based on negligence, gross
negligence,  nuisance  and  trespass.  The  Company  filed  a motion for summary
judgment  in  July  2002 based on lack of evidence. In November  2002, the trial
court  granted partial summary judgment, dismissing certain causes of action and
reducing  the  number  of plaintiffs, but preserving other causes of action. The
Company  subsequently  filed  a  motion  for  summary judgment seeking dismissal
against all of the adult plaintiffs on statute of limitations grounds.  On March
26,  2003  the  court  granted  this  motion and dismissed the adult plaintiffs.
Seven minors and an intervenor remain party to the lawsuit. The Company believes
plaintiffs'  remaining  case  is  without  merit and will continue to vigorously
defend  the  matter.  No assurance can be given that the Company will prevail or
that  the  matter  can  be  favorably  resolved. The Company's current insurance
carrier  is  paying for defense of this matter subject to the Company's $250,000
deductible,  which  has  been  fully  accrued.

ITEM  2.  CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS.

On  February  28,  2003,  the Company repurchased all 100,001 shares of Series D
Preferred  Stock for the original sales price of $47.50 a share plus accrued but
unpaid  dividends of $16.56 a share.  A total of $6,406,000 was paid in order to
complete  the  repurchase.

During  February,  2003,  three  remaining  Series  E  warrant holders exercised
2,350,000  Series  E  warrants  with  an  exercise  price  of  $1.50  per share.
Consequently,  the  Company issued 2,350,000 shares of common stock and received
$3,525,000  in  cash.  At  March  31,  2003  there  were  no  Series  E warrants
outstanding.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None

ITEM 5.   OTHER INFORMATION.

On  January  28,  2003,  John  M.  Couzens resigned from the Board of Directors.

On  February 17, 2003, the Board of Directors appointed David B. Anderson to the
Board  of  Directors.  Mr.  Anderson is a Principal at Lochborn Partners LLC, in
Chicago,  Illinois. He has held senior executive positions with GATX Corporation
and  Inland Steel Industries. An attorney, Mr. Anderson has extensive experience
in  corporate  strategy,  compliance,  acquisitions,  and  business development.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.

     (a)  The following exhibits are filed as part of this report:


Exhibit 99.1     Certification  of  March 31, 2003 Form 10-Q by Chief Executive
                 Officer  dated  May  12,  2003
Exhibit 99.2     Certification  of  March 31, 2003 Form 10-Q by Chief Financial
                 Officer  dated  May  12,  2003
Exhibit 99.3     Certification  of  March 31, 2003 Form 10-Q by Chief Executive
                 Officer  dated  May  12,  2003
Exhibit 99.4     Certification  of  March 31, 2003 Form 10-Q by Chief Financial
                 Officer  dated  May  12,  2003

     (b)  Reports on Form 8-K.

               On  February 13, 2003, the Company issued an 8-K to announce that
               its  wholly  owned subsidiary, Texas Ecologists, Inc. sold the El
               Centro  municipal  waste  landfill  in  Robstown,  Texas  to  a
               subsidiary  of  Allied  Waste  Industries,  Inc.


                                       27
<PAGE>
               On  February  28, 2003 the Company issued an 8-K to announce that
               it exercised its right to repurchase the Series D Preferred Stock
               and  utilized  $4,670,000  of available cash in order to complete
               the  repurchase.
               On March 28, 2003, the Company issued an 8-K to announce that its
               wholly  owned  subsidiary,  US  Ecology,  Inc.,  has  received an
               adverse judgment in the case styled US Ecology, Inc. v. The State
               of  California,  et  al.
               On  April  28,  2003, the Company issued an 8-K to announce first
               quarter  2003  earnings.


SIGNATURES
----------

Pursuant  to  the  requirements  of  the  Securities  Exchange  Act of 1934, the
registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.


                                            AMERICAN ECOLOGY CORPORATION
                                            (Registrant)


Date:  May 12, 2003                         By: /s/ Stephen A. Romano
                                            -----------------------------------
                                            Stephen A. Romano
                                            President, Chief Executive Officer
                                            and Chief Operating Officer

Date:  May 12, 2003                         By: /s/ James R. Baumgardner
                                            -----------------------------------
                                            James R. Baumgardner
                                            Senior Vice President, Chief
                                            Financial Officer, Secretary and
                                            Treasurer


                                       28
<PAGE>
                                    EXHIBIT INDEX

Exhibit        Description
-------        -----------

Exhibit 99.1   Certification of March 31, 2003 Form 10-Q by Chief Executive
               Officer dated May 12, 2003
Exhibit 99.2   Certification of March 31, 2003 Form 10-Q by Chief Financial
               Officer dated May 12, 2003
Exhibit 99.3   Certification of March 31, 2003 Form 10-Q by Chief Executive
               Officer dated May 12, 2003
Exhibit 99.4   Certification of March 31, 2003 Form 10-Q by Chief Financial
               Officer dated May 12, 2003


                                       29
<PAGE>