----

|                                                                                                               |
|--------------------------------------------------------------------------------------------------------------------|
| xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934                           |
|                                                                                                               |
| For the Quarterly Period Ended:  June 30, 2009                                                           |
| or                                                                                                                 |
|                                                                                                               |
| o 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 of Incorporation) |   | (I.R.S. Employer Identification Number) |   |
|                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                               | Lakepointe Centre I,300 E. Mallard, Suite 300Boise, Idaho |   |   83706 |   |
|                                                                                                               | (Address of Principal Executive Offices) |   | (Zip Code) |   |
|                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                               |   |   | (208) 331-8400 |   |   |   |
|                                                                                                               |   |   | (Registrant’s Telephone Number, Including Area Code) |   |   |   |

    No 

| Large accelerated filer o                                                            | Accelerated filer x    |
|--------------------------------------------------------------------------------------|-----------------------------|
|                                                                                 |                        |
| Non-accelerated filer   (Do not check if smaller reporting company) o | Smaller Reporting Company o |

  

  No 

----

|                 |   |                                                                                           |   |
|----------------------|--------|------------------------------------------------------------------------------------------------|--------|
|                 |   |                                                                                           |   |
| PART I.              |   | FINANCIAL INFORMATION                                                                          |   |
|                 |   |                                                                                           |   |
| Item 1.              |   | Financial Statements (Unaudited)                                                               |   |
|                 |   |                                                                                           |   |
|                 |   | Consolidated Balance Sheets as of June 30, 2009 and December 31, 2008                          | 1      |
|                 |   |                                                                                           |   |
|                 |   | Consolidated Statements of Operations for the three and six months endedJune 30, 2009 and 2008 | 2      |
|                 |   |                                                                                           |   |
|                 |   | Consolidated Statements of Cash Flows for the six months ended June 30, 2009 and 2008          | 3      |
|                 |   |                                                                                           |   |
|                 |   | Notes to Consolidated Financial Statements                                                     | 4      |
|                 |   |                                                                                           |   |
| Item 2.              |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations    | 12     |
|                 |   |                                                                                           |   |
| Item 3.              |   | Quantitative and Qualitative Disclosures About Market Risk                                     | 20     |
|                 |   |                                                                                           |   |
| Item 4.              |   | Controls and Procedures                                                                        | 20     |
|                 |   |                                                                                           |   |
| PART II.             |   | OTHER INFORMATION                                                                              |   |
|                 |   |                                                                                           |   |
| Cautionary Statement | 21     |
|                 |   |                                                                                           |   |
| Item 1.              |   | Legal Proceedings                                                                              | 21     |
|                 |   |                                                                                           |   |
| Item 1A.             |   | Risk Factors                                                                                   | 21     |
|                 |   |                                                                                           |   |
| Item 2.              |   | Unregistered Sales of Equity Securities and Use of Proceeds                                    | 22     |
|                 |   |                                                                                           |   |
| Item 3.              |   | Defaults Upon Senior Securities                                                                | 22     |
|                 |   |                                                                                           |   |
| Item 4.              |   | Submission of Matters to a Vote of Security Holders                                            | 22     |
|                 |   |                                                                                           |   |
| Item 5.              |   | Other Information                                                                              | 23     |
|                 |   |                                                                                           |   |
| Item 6.              |   | Exhibits                                                                                       | 23     |
|                 |   |                                                                                           |   |
| SIGNATURE            | 24     |

----

|                                                                                           |   | June 30, 2009 |    |   | December 31, 2008 |   |
|------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
| Assets                                                                                         |   |          |    |   |              |   |
|                                                                                           |   |          |    |   |              |   |
| Current Assets:                                                                                |   |          |    |   |              |   |
| Cash and cash equivalents                                                                      |   | $             | 24,895  |   |              | $      | 18,473 |   |
| Receivables, net                                                                               |   |          | 26,476  |   |              |   | 30,737 |   |
| Prepaid expenses and other current assets                                                      |   |          | 2,617   |   |              |   | 2,281 |   |
| Income tax receivable                                                                          |   |          | 442     |   |              |   | 2,834 |   |
| Deferred income taxes                                                                          |   |          | 1,153   |   |              |   | 684 |   |
| Total current assets                                                                           |   |          | 55,583  |   |              |   | 55,009 |   |
|                                                                                           |   |          |    |   |              |   |   |   |
| Property and equipment, net                                                                    |   |          | 69,491  |   |              |   | 67,987 |   |
| Restricted cash                                                                                |   |          | 4,727   |   |              |   | 4,716 |   |
| Total assets                                                                                   |   | $             | 129,801 |   |              | $      | 127,712 |   |
|                                                                                           |   |          |    |   |              |   |   |   |
| Liabilities and Stockholders’ Equity                                                     |   |          |    |   |              |   |   |   |
|                                                                                           |   |          |    |   |              |   |   |   |
| Current Liabilities:                                                                           |   |          |    |   |              |   |   |   |
| Accounts payable                                                                               |   | $             | 5,570   |   |              | $      | 5,400 |   |
| Deferred revenue                                                                               |   |          | 5,213   |   |              |   | 4,657 |   |
| Accrued liabilities                                                                            |   |          | 3,941   |   |              |   | 4,398 |   |
| Accrued salaries and benefits                                                                  |   |          | 1,996   |   |              |   | 2,895 |   |
| Current portion of closure and post-closure obligations                                        |   |          | 1,524   |   |              |   | 490 |   |
| Current portion of capital lease obligations                                                   |   |          | 11      |   |              |   | 10 |   |
| Total current liabilities                                                                      |   |          | 18,255  |   |              |   | 17,850 |   |
|                                                                                           |   |          |    |   |              |   |   |   |
| Long-term closure and post-closure obligations                                                 |   |          | 13,234  |   |              |   | 13,972 |   |
| Long-term capital lease obligations                                                            |   |          | 15      |   |              |   | 21 |   |
| Deferred income taxes                                                                          |   |          | 5,331   |   |              |   | 3,927 |   |
| Total liabilities                                                                              |   |          | 36,835  |   |              |   | 35,770 |   |
|                                                                                           |   |          |    |   |              |   |   |   |
| Contingencies and commitments                                                                  |   |          |    |   |              |   |   |   |
|                                                                                           |   |          |    |   |              |   |   |   |
| Stockholders’ Equity                                                                     |   |          |    |   |              |   |   |   |
|                                                                                           |   |          |    |   |              |   |   |   |
| Common stock $0.01 par value, 50,000 authorized; 18,306 and 18,304 shares issued, respectively |   |          | 183     |   |              |   | 183 |   |
| Additional paid-in capital                                                                     |   |          | 61,201  |   |              |   | 60,803 |   |
| Retained earnings                                                                              |   |          | 34,172  |   |              |   | 33,544 |   |
| Common stock held in treasury, at cost, 155 and 155 shares, respectively                       |   |          | (2,590  | )      |              |   | (2,588 | ) |
| Total stockholders’ equity                                                               |   |          | 92,966  |   |              |   | 91,942 |   |
| Total liabilities and stockholders’ equity                                               |   | $             | 129,801 |   |              | $      | 127,712 |   |

----

|                                           |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                           |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                                           |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Revenue                                        |   | $                          | 36,377 |   |                     | $      | 44,516 |   |   | $ | 71,342 |   |   | $ | 90,735 |   |
| Transportation costs                           |   |                       | 15,263 |   |                     |   | 19,251 |   |   |   | 29,437 |   |   |   | 41,309 |   |
| Other direct operating costs                   |   |                       | 12,002 |   |                     |   | 11,687 |   |   |   | 23,247 |   |   |   | 22,404 |   |
|                                           |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                   |   |                       | 9,112  |   |                     |   | 13,578 |   |   |   | 18,658 |   |   |   | 27,022 |   |
|                                           |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses   |   |                       | 3,396  |   |                     |   | 3,732 |   |   |   | 6,969 |   |   |   | 7,651 |   |
| Operating income                               |   |                       | 5,716  |   |                     |   | 9,846 |   |   |   | 11,689 |   |   |   | 19,371 |   |
|                                           |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                        |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                |   |                       | 37     |   |                     |   | 111 |   |   |   | 85 |   |   |   | 174 |   |
| Interest expense                               |   |                       | -      |   |                     |   | (3 | ) |   |   | (1 | ) |   |   | (4 | ) |
| Other                                          |   |                       | 91     |   |                     |   | 94 |   |   |   | 124 |   |   |   | 159 |   |
| Total other income                             |   |                       | 128    |   |                     |   | 202 |   |   |   | 208 |   |   |   | 329 |   |
|                                           |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                     |   |                       | 5,844  |   |                     |   | 10,048 |   |   |   | 11,897 |   |   |   | 19,700 |   |
| Income taxes                                   |   |                       | 2,326  |   |                     |   | 3,938 |   |   |   | 4,735 |   |   |   | 7,722 |   |
| Net income                                     |   | $                          | 3,518  |   |                     | $      | 6,110 |   |   | $ | 7,162 |   |   | $ | 11,978 |   |
|                                           |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                            |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                          |   | $                          | 0.19   |   |                     | $      | 0.34 |   |   | $ | 0.39 |   |   | $ | 0.66 |   |
| Dilutive                                       |   | $                          | 0.19   |   |                     | $      | 0.33 |   |   | $ | 0.39 |   |   | $ | 0.66 |   |
|                                           |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Shares used in earnings per share calculation: |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                          |   |                       | 18,145 |   |                     |   | 18,232 |   |   |   | 18,144 |   |   |   | 18,230 |   |
| Dilutive                                       |   |                       | 18,175 |   |                     |   | 18,295 |   |   |   | 18,175 |   |   |   | 18,286 |   |
|                                           |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Dividends paid per share                       |   | $                          | 0.18   |   |                     | $      | 0.15 |   |   | $ | 0.36 |   |   | $ | 0.30 |   |

----

|                                                                              |   | Six Months Ended June 30, |   |
|-----------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                              |   | 2009                      |   |   | 2008 |   |
| Cash Flows From Operating Activities:                                             |   |                      |   |   |   |   |
| Net income                                                                        |   | $                         | 7,162  |   |   | $ | 11,978 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                      |   |   |   |   |   |   |
| Depreciation, amortization and accretion                                          |   |                      | 4,642  |   |   |   | 5,671 |   |
| Deferred income taxes                                                             |   |                      | 935    |   |   |   | 824 |   |
| Stock-based compensation expense                                                  |   |                      | 416    |   |   |   | 415 |   |
| Net (gain) loss on sale of property and equipment                                 |   |                      | (3     | ) |   |   | 4 |   |
| Accretion of interest income                                                      |   |                      | -      |   |   |   | (15 | ) |
| Changes in assets and liabilities:                                                |   |                      |   |   |   |   |   |   |
| Receivables                                                                       |   |                      | 4,261  |   |   |   | (2,262 | ) |
| Income tax receivable                                                             |   |                      | 2,392  |   |   |   | 994 |   |
| Other assets                                                                      |   |                      | (336   | ) |   |   | 35 |   |
| Accounts payable and accrued liabilities                                          |   |                      | (1,120 | ) |   |   | (1,320 | ) |
| Deferred revenue                                                                  |   |                      | 556    |   |   |   | 898 |   |
| Accrued salaries and benefits                                                     |   |                      | (899   | ) |   |   | (297 | ) |
| Income tax payable                                                                |   |                      | -      |   |   |   | 38 |   |
| Closure and post-closure obligations                                              |   |                      | (288   | ) |   |   | (507 | ) |
| Other                                                                             |   |                      | (19    | ) |   |   | - |   |
| Net cash provided by operating activities                                         |   |                      | 17,699 |   |   |   | 16,456 |   |
|                                                                              |   |                      |   |   |   |   |   |   |
| Cash Flows From Investing Activities:                                             |   |                      |   |   |   |   |   |   |
| Purchases of property and equipment                                               |   |                      | (4,768 | ) |   |   | (7,335 | ) |
| Proceeds from sale of property and equipment                                      |   |                      | 42     |   |   |   | 11 |   |
| Restricted cash                                                                   |   |                      | (11    | ) |   |   | 35 |   |
| Purchases of short-term investments                                               |   |                      | -      |   |   |   | (992 | ) |
| Maturities of short-term investments                                              |   |                      | -      |   |   |   | 3,216 |   |
| Net cash used in investing activities                                             |   |                      | (4,737 | ) |   |   | (5,065 | ) |
|                                                                              |   |                      |   |   |   |   |   |   |
| Cash Flows From Financing Activities:                                             |   |                      |   |   |   |   |   |   |
| Dividends paid                                                                    |   |                      | (6,534 | ) |   |   | (5,475 | ) |
| Common stock repurchases                                                          |   |                      | (2     | ) |   |   | - |   |
| Other                                                                             |   |                      | (4     | ) |   |   | (5 | ) |
| Tax benefit of common stock options                                               |   |                      | -      |   |   |   | 20 |   |
| Proceeds from stock option exercises                                              |   |                      | -      |   |   |   | 23 |   |
| Net cash used in financing activities                                             |   |                      | (6,540 | ) |   |   | (5,437 | ) |
|                                                                              |   |                      |   |   |   |   |   |   |
| Increase in cash and cash equivalents                                             |   |                      | 6,422  |   |   |   | 5,954 |   |
|                                                                              |   |                      |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                  |   |                      | 18,473 |   |   |   | 12,563 |   |
|                                                                              |   |                      |   |   |   |   |   |   |
| Cash and cash equivalents at end of period                                        |   | $                         | 24,895 |   |   | $ | 18,517 |   |
|                                                                              |   |                      |   |   |   |   |   |   |
| Supplemental Disclosures                                                          |   |                      |   |   |   |   |   |   |
| Income taxes paid, net of receipts                                                |   | $                         | 1,427  |   |   | $ | 5,848 |   |
| Interest paid                                                                     |   |                      | 1      |   |   |   | 3 |   |
| Non-cash investing and financing activities:                                      |   |                      |   |   |   |   |   |   |
| Capital expenditures in accounts payable                                          |   |                      | 1,729  |   |   |   | 2,127 |   |
| Acquisition of equipment with capital leases                                      |   |                      | -      |   |   |   | 6 |   |

----

----

----

----

|                            |   | June 30, |   |   | December 31, |   |
|---------------------------------|--------|----------|--------|--------|--------------|--------|
| (in thousands)                  |   | 2009     |   |   | 2008         |   |
|                            |   |     |   |   |         |   |
| Trade                           |   | $        | 22,610 |   |         | $      | 27,324 |   |
| Unbilled revenue                |   |     | 3,914  |   |         |   | 3,536 |   |
| Other                           |   |     | 105    |   |         |   | 226 |   |
|                            |   |     | 26,629 |   |         |   | 31,086 |   |
| Allowance for doubtful accounts |   |     | (153   | )      |         |   | (349 | ) |
|                            |   | $        | 26,476 |   |         | $      | 30,737 |   |

|                                      |   | June 30, |    |   | December 31, |   |
|-------------------------------------------|--------|----------|---------|--------|--------------|--------|
| (in thousands)                            |   | 2009     |    |   | 2008         |   |
|                                      |   |     |    |   |         |   |
| Cell development costs                    |   | $        | 45,377  |   |         | $      | 42,432 |   |
| Land and improvements                     |   |     | 9,204   |   |         |   | 9,158 |   |
| Buildings and improvements                |   |     | 29,745  |   |         |   | 29,721 |   |
| Railcars                                  |   |     | 17,375  |   |         |   | 17,375 |   |
| Vehicles and other equipment              |   |     | 23,323  |   |         |   | 22,065 |   |
| Construction in progress                  |   |     | 5,567   |   |         |   | 4,473 |   |
|                                      |   |     | 130,591 |   |         |   | 125,224 |   |
| Accumulated depreciation and amortization |   |     | (61,100 | )      |         |   | (57,237 | ) |
|                                      |   | $        | 69,491  |   |         | $      | 67,987 |   |

----

| (in thousands)       |   | Three Months EndedJune 30, 2009 |   |   | Six Months EndedJune 30, 2009 |   |
|----------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|
|                 |   |                            |   |   |                          |   |
| Beginning obligation |   | $                               | 14,606 |   |                          | $      | 14,462 |   |
| Accretion expense    |   |                            | 292    |   |                          |   | 584 |   |
| Payments             |   |                            | (140   | )      |                          |   | (288 | ) |
| Adjustments          |   |                            | -      |   |                          |   | - |   |
| Ending obligation    |   |                            | 14,758 |   |                          |   | 14,758 |   |
| Less current portion |   |                            | (1,524 | )      |                          |   | (1,524 | ) |
| Long-term portion    |   | $                               | 13,234 |   |                          | $      | 13,234 |   |

----

| (in thousands, except per share data)                      |   | Three Months Ended June 30, |   |
|------------------------------------------------------------|--------|-----------------------------|--------|
|                                                       |   | 2009                        |   |   | 2008 |   |
|                                                       |   | Basic                       |   |   | Diluted |   |   | Basic |   |   | Diluted |   |
| Net income                                                 |   | $                           | 3,518  |   |   | $ | 3,518 |   |   | $ | 6,110 |   |   | $ | 6,110 |   |
| Weighted average common shares outstanding                 |   |                        | 18,145 |   |   |   | 18,145 |   |   |   | 18,232 |   |   |   | 18,232 |   |
|                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive effect of stock options and restricted stock      |   |                        |   |   |   |   | 30 |   |   |   |   |   |   |   | 63 |   |
| Weighted average shares outstanding                        |   |                        |   |   |   |   | 18,175 |   |   |   |   |   |   |   | 18,295 |   |
|                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share                                         |   | $                           | 0.19   |   |   | $ | 0.19 |   |   | $ | 0.34 |   |   | $ | 0.33 |   |
| Anti-dilutive shares excluded from calculation             |   |                        |   |   |   |   | 283 |   |   |   |   |   |   |   | 31 |   |
|                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (in thousands, except per share data)                      |   | Six Months Ended June 30,   |   |
|                                                       |   | 2009                        |   |   | 2008 |   |
|                                                       |   | Basic                       |   |   | Diluted |   |   | Basic |   |   | Diluted |   |
| Net income                                                 |   | $                           | 7,162  |   |   | $ | 7,162 |   |   | $ | 11,978 |   |   | $ | 11,978 |   |
| Weighted average common shares outstanding                 |   |                        | 18,144 |   |   |   | 18,144 |   |   |   | 18,230 |   |   |   | 18,230 |   |
|                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive effect of stock options and restricted stock |   |                        |   |   |   |   | 31 |   |   |   |   |   |   |   | 56 |   |
| Weighted average shares outstanding                        |   |                        |   |   |   |   | 18,175 |   |   |   |   |   |   |   | 18,286 |   |
|                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share                                         |   | $                           | 0.39   |   |   | $ | 0.39 |   |   | $ | 0.66 |   |   | $ | 0.66 |   |
| Anti-dilutive shares excluded from calculation             |   |                        |   |   |   |   | 274 |   |   |   |   |   |   |   | 88 |   |

----

|   (in thousands)                 |   | Operating Disposal Facilities |   |   | Non-Operating Disposal Facilities |   |   |  Corporate |   |   |  Total |   |
|--------------------------------------------|--------|-------------------------------|--------|--------|-----------------------------------|--------|--------|-----------------|--------|--------|-------------|--------|
| Three months ended June 30, 2009           |   |                          |   |   |                              |   |   |            |   |   |        |   |
| Revenue - Treatment and disposal           |   | $                             | 21,320 |   |                              | $      | 3      |            |   | $      | -           |   |   | $ | 21,323 |   |
| Revenue - Transportation services          |   |                          | 15,054 |   |                              |   | -      |            |   |   | -           |   |   |   | 15,054 |   |
| Total revenue                              |   |                          | 36,374 |   |                              |   | 3      |            |   |   | -           |   |   |   | 36,377 |   |
| Transportation costs                       |   |                          | 15,263 |   |                              |   | -      |            |   |   | -           |   |   |   | 15,263 |   |
| Other direct operating costs               |   |                          | 11,947 |   |                              |   | 55     |            |   |   | -           |   |   |   | 12,002 |   |
| Gross profit                               |   |                          | 9,164  |   |                              |   | (52    | )               |   |   | -           |   |   |   | 9,112 |   |
| Selling, general & administration      |   |                          | 1,128  |   |                              |   | -      |            |   |   | 2,268       |   |   |   | 3,396 |   |
| Operating income (loss)                    |   |                          | 8,036  |   |                              |   | (52    | )               |   |   | (2,268      | )      |   |   | 5,716 |   |
| Interest, net                              |   |                          | 1      |   |                              |   | -      |            |   |   | 36          |   |   |   | 37 |   |
| Other income                               |   |                          | 53     |   |                              |   | 38     |            |   |   | -           |   |   |   | 91 |   |
| Income (loss) before income taxes          |   |                          | 8,090  |   |                              |   | (14    | )               |   |   | (2,232      | )      |   |   | 5,844 |   |
| Income taxes                               |   |                          | -      |   |                              |   | -      |            |   |   | 2,326       |   |   |   | 2,326 |   |
| Net income (loss)                          |   | $                             | 8,090  |   |                              | $      | (14    | )               |   | $      | (4,558      | )      |   | $ | 3,518 |   |
| Depreciation, amortization & accretion |   | $                             | 2,290  |   |                              | $      | 56     |            |   | $      | 10          |   |   | $ | 2,356 |   |
| Capital expenditures                       |   | $                             | 2,101  |   |                              | $      | -      |            |   | $      | 6           |   |   | $ | 2,107 |   |
| Total assets                               |   | $                             | 96,746 |   |                              | $      | 51     |            |   | $      | 33,004      |   |   | $ | 129,801 |   |

|   (in thousands)                 |   | Operating Disposal Facilities |   |   | Non-Operating Disposal Facilities |   |   |  Corporate |   |   | Total  |   |
|--------------------------------------------|--------|-------------------------------|--------|--------|-----------------------------------|--------|--------|-----------------|--------|--------|--------|--------|
| Three months ended June 30, 2008           |   |                          |   |   |                              |   |   |            |   |   |   |   |
| Revenue - Treatment and disposal           |   | $                             | 25,337 |   |                              | $      | 6      |            |   | $      | -      |   |   | $ | 25,343 |   |
| Revenue - Transportation services          |   |                          | 19,173 |   |                              |   | -      |            |   |   | -      |   |   |   | 19,173 |   |
| Total revenue                              |   |                          | 44,510 |   |                              |   | 6      |            |   |   | -      |   |   |   | 44,516 |   |
| Transportation costs                       |   |                          | 19,251 |   |                              |   | -      |            |   |   | -      |   |   |   | 19,251 |   |
| Other direct operating costs               |   |                          | 11,476 |   |                              |   | 179    |            |   |   | 32     |   |   |   | 11,687 |   |
| Gross profit                               |   |                          | 13,783 |   |                              |   | (173   | )               |   |   | (32    | )      |   |   | 13,578 |   |
| Selling, general & administration      |   |                          | 1,253  |   |                              |   | -      |            |   |   | 2,479  |   |   |   | 3,732 |   |
| Operating income (loss)                    |   |                          | 12,530 |   |                              |   | (173   | )               |   |   | (2,511 | )      |   |   | 9,846 |   |
| Interest, net                              |   |                          | -      |   |                              |   | -      |            |   |   | 108    |   |   |   | 108 |   |
| Other income                               |   |                          | 93     |   |                              |   | -      |            |   |   | 1      |   |   |   | 94 |   |
| Income (loss) before income taxes          |   |                          | 12,623 |   |                              |   | (173   | )               |   |   | (2,402 | )      |   |   | 10,048 |   |
| Income taxes                               |   |                          | -      |   |                              |   | -      |            |   |   | 3,938  |   |   |   | 3,938 |   |
| Net income (loss)                          |   | $                             | 12,623 |   |                              | $      | (173   | )               |   | $      | (6,340 | )      |   | $ | 6,110 |   |
| Depreciation, amortization & accretion |   | $                             | 2,749  |   |                              | $      | 71     |            |   | $      | 13     |   |   | $ | 2,833 |   |
| Capital expenditures                       |   | $                             | 3,857  |   |                              | $      | -      |            |   | $      | 14     |   |   | $ | 3,871 |   |
| Total assets                               |   | $                             | 99,265 |   |                              | $      | 58     |            |   | $      | 27,075 |   |   | $ | 126,398 |   |

----

|   (in thousands)                 |   | Operating Disposal Facilities |   |   | Non-Operating Disposal Facilities |   |   |   Corporate |   |   |  Total |   |
|--------------------------------------------|--------|-------------------------------|--------|--------|-----------------------------------|--------|--------|-----------------------|--------|--------|-------------|--------|
| Six months ended June 30, 2009             |   |                          |   |   |                              |   |   |                  |   |   |        |   |
| Revenue - Treatment and disposal           |   | $                             | 42,058 |   |                              | $      | 7      |                  |   | $      | -           |   |   | $ | 42,065 |   |
| Revenue - Transportation services          |   |                          | 29,277 |   |                              |   | -      |                  |   |   | -           |   |   |   | 29,277 |   |
| Total revenue                              |   |                          | 71,335 |   |                              |   | 7      |                  |   |   | -           |   |   |   | 71,342 |   |
| Transportation costs                       |   |                          | 29,437 |   |                              |   | -      |                  |   |   | -           |   |   |   | 29,437 |   |
| Other direct operating costs               |   |                          | 23,136 |   |                              |   | 111    |                  |   |   | -           |   |   |   | 23,247 |   |
| Gross profit                               |   |                          | 18,762 |   |                              |   | (104   | )                     |   |   | -           |   |   |   | 18,658 |   |
| Selling, general & administration      |   |                          | 2,236  |   |                              |   | -      |                  |   |   | 4,733       |   |   |   | 6,969 |   |
| Operating income (loss)                    |   |                          | 16,526 |   |                              |   | (104   | )                     |   |   | (4,733      | )      |   |   | 11,689 |   |
| Interest income, net                       |   |                          | -      |   |                              |   | -      |                  |   |   | 84          |   |   |   | 84 |   |
| Other income                               |   |                          | 86     |   |                              |   | 38     |                  |   |   | -           |   |   |   | 124 |   |
| Income (loss) before tax                   |   |                          | 16,612 |   |                              |   | (66    | )                     |   |   | (4,649      | )      |   |   | 11,897 |   |
| Tax expense                                |   |                          | -      |   |                              |   | -      |                  |   |   | 4,735       |   |   |   | 4,735 |   |
| Net income (loss)                          |   | $                             | 16,612 |   |                              | $      | (66    | )                     |   | $      | (9,384      | )      |   | $ | 7,162 |   |
| Depreciation, amortization & accretion |   | $                             | 4,511  |   |                              | $      | 110    |                  |   | $      | 21          |   |   | $ | 4,642 |   |
| Capital expenditures                       |   | $                             | 4,757  |   |                              | $      | -      |                  |   | $      | 11          |   |   | $ | 4,768 |   |
| Total assets                               |   | $                             | 96,746 |   |                              | $      | 51     |                  |   | $      | 33,004      |   |   | $ | 129,801 |   |

|   (in thousands)                 |   | Operating Disposal Facilities |   |   | Non-Operating Disposal Facilities |   |   |   Corporate |   |   |  Total |   |
|--------------------------------------------|--------|-------------------------------|--------|--------|-----------------------------------|--------|--------|-----------------------|--------|--------|-------------|--------|
| Six months ended June 30, 2008             |   |                          |   |   |                              |   |   |                  |   |   |        |   |
| Revenue - Treatment and disposal           |   | $                             | 49,127 |   |                              | $      | 10     |                  |   | $      | -           |   |   | $ | 49,137 |   |
| Revenue - Transportation services          |   |                          | 41,598 |   |                              |   | -      |                  |   |   | -           |   |   |   | 41,598 |   |
| Total revenue                              |   |                          | 90,725 |   |                              |   | 10     |                  |   |   | -           |   |   |   | 90,735 |   |
| Transportation costs                       |   |                          | 41,309 |   |                              |   | -      |                  |   |   | -           |   |   |   | 41,309 |   |
| Other direct operating costs               |   |                          | 22,121 |   |                              |   | 251    |                  |   |   | 32          |   |   |   | 22,404 |   |
| Gross profit                               |   |                          | 27,295 |   |                              |   | (241   | )                     |   |   | (32         | )      |   |   | 27,022 |   |
| Selling, general & administration      |   |                          | 2,575  |   |                              |   | -      |                  |   |   | 5,076       |   |   |   | 7,651 |   |
| Operating income (loss)                    |   |                          | 24,720 |   |                              |   | (241   | )                     |   |   | (5,108      | )      |   |   | 19,371 |   |
| Interest income, net                       |   |                          | (1     | )      |                              |   | -      |                  |   |   | 171         |   |   |   | 170 |   |
| Other income                               |   |                          | 158    |   |                              |   | -      |                  |   |   | 1           |   |   |   | 159 |   |
| Income (loss) before tax                   |   |                          | 24,877 |   |                              |   | (241   | )                     |   |   | (4,936      | )      |   |   | 19,700 |   |
| Tax expense                                |   |                          | -      |   |                              |   | -      |                  |   |   | 7,722       |   |   |   | 7,722 |   |
| Net income (loss)                          |   | $                             | 24,877 |   |                              | $      | (241   | )                     |   | $      | (12,658     | )      |   | $ | 11,978 |   |
| Depreciation, amortization & accretion |   | $                             | 5,504  |   |                              | $      | 143    |                  |   | $      | 24          |   |   | $ | 5,671 |   |
| Capital expenditures                       |   | $                             | 7,276  |   |                              | $      | 9      |                  |   | $      | 50          |   |   | $ | 7,335 |   |
| Total assets                               |   | $                             | 99,265 |   |                              | $      | 58     |                  |   | $      | 27,075      |   |   | $ | 126,398 |   |

----

| CustomerCategory                                      |   | Description                                                                                                                                                                        |   | % of Treatment and Disposal Revenue (1) for the Three Months endedJune 30, 2009 |   |   | % of Treatment and Disposal Revenue (1) for the Six Months ended June 30, 2009 |   |
|-------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|
| Broker                                                |   | Companies that collect and aggregate waste from their direct customers, comprised of both Base and Event clean-up business.                                                        |   |                                                                            | 33%    |   |                                                                           |   |   | 34% |   |   |
|                                                  |   |                                                                                                                                                                               |   |                                                                            |   |   |                                                                           |   |   |   |   |   |
| Private Clean-up                                      |   | Private sector clean-up project waste, typically Event business.                                                                                                                   |   |                                                                            | 27%    |   |                                                                           |   |   | 24% |   |   |
|                                                  |   |                                                                                                                                                                               |   |                                                                            |   |   |                                                                           |   |   |   |   |   |
| Government                                            |   | Federal and State government clean-up project waste, comprised of both Base business and Event clean-up business.                                                                  |   |                                                                            | 14%    |   |                                                                           |   |   | 14% |   |   |
|                                                  |   |                                                                                                                                                                               |   |                                                                            |   |   |                                                                           |   |   |   |   |   |
| Refinery                                              |   | Petroleum refinery customers, comprised of both Base and Event clean-up business.                                                                                                  |   |                                                                            | 11%    |   |                                                                           |   |   | 12% |   |   |
|                                                  |   |                                                                                                                                                                               |   |                                                                            |   |   |                                                                           |   |   |   |   |   |
| Other industry                                        |   | Electric utilities, chemical manufacturers and other industrial customers not included in other categories, comprised of both recurring Base business and Event clean-up business. |   |                                                                            | 8%     |   |                                                                           |   |   | 9% |   |   |
|                                                  |   |                                                                                                                                                                               |   |                                                                            |   |   |                                                                           |   |   |   |   |   |
| Rate regulated                                        |   | Northwest and Rocky Mountain Compact customers paying rate-regulated disposal fees set by the State of Washington, predominantly Base business.                                    |   |                                                                            | 6%     |   |                                                                           |   |   | 6% |   |   |
|                                                  |   |                                                                                                                                                                               |   |                                                                            |   |   |                                                                           |   |   |   |   |   |
| Steel                                                 |   | Steel mill customers, comprised of both Base and Event clean-up business.                                                                                                          |   |                                                                            | 1%     |   |                                                                           |   |   | 1% |   |   |
|  (1) Excludes all transportation service revenue |   |                                                                                                                                                                               |   |                                                                            |   |   |                                                                           |   |   |   |

----

----

| (in thousands, except per                      |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|
| share amounts)                                 |   | 2009                        |   |   | %                         |   |   | 2008 |   |   | % |   |   | 2009 |   |   | % |   |   | 2008 |   |   | % |   |
|                                           |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                        |   | $                           | 36,377 |   |                      |   | 100.0 | % |   | $ | 44,516 |   |   |   | 100.0 | % |   | $ | 71,342 |   |   |   | 100.0 | % |   | $ | 90,735 |   |   |   | 100.0 | % |
| Transportation costs                           |   |                        | 15,263 |   |                      |   | 42.0 | % |   |   | 19,251 |   |   |   | 43.2 | % |   |   | 29,437 |   |   |   | 41.3 | % |   |   | 41,309 |   |   |   | 45.5 | % |
| Other direct operating costs                   |   |                        | 12,002 |   |                      |   | 33.0 | % |   |   | 11,687 |   |   |   | 26.3 | % |   |   | 23,247 |   |   |   | 32.6 | % |   |   | 22,404 |   |   |   | 24.7 | % |
|                                           |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                   |   |                        | 9,112  |   |                      |   | 25.0 | % |   |   | 13,578 |   |   |   | 30.5 | % |   |   | 18,658 |   |   |   | 26.1 | % |   |   | 27,022 |   |   |   | 29.8 | % |
|                                           |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses   |   |                        | 3,396  |   |                      |   | 9.3 | % |   |   | 3,732 |   |   |   | 8.4 | % |   |   | 6,969 |   |   |   | 9.8 | % |   |   | 7,651 |   |   |   | 8.4 | % |
| Operating income                               |   |                        | 5,716  |   |                      |   | 15.7 | % |   |   | 9,846 |   |   |   | 22.1 | % |   |   | 11,689 |   |   |   | 16.3 | % |   |   | 19,371 |   |   |   | 21.4 | % |
|                                           |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                        |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                |   |                        | 37     |   |                      |   | 0.1 | % |   |   | 111 |   |   |   | 0.2 | % |   |   | 85 |   |   |   | 0.1 | % |   |   | 174 |   |   |   | 0.2 | % |
| Interest expense                               |   |                        | -      |   |                      |   | 0.0 | % |   |   | (3 | ) |   |   | 0.0 | % |   |   | (1 | ) |   |   | 0.0 | % |   |   | (4 | ) |   |   | 0.0 | % |
| Other                                          |   |                        | 91     |   |                      |   | 0.3 | % |   |   | 94 |   |   |   | 0.3 | % |   |   | 124 |   |   |   | 0.2 | % |   |   | 159 |   |   |   | 0.2 | % |
| Total other income                             |   |                        | 128    |   |                      |   | 0.4 | % |   |   | 202 |   |   |   | 0.5 | % |   |   | 208 |   |   |   | 0.3 | % |   |   | 329 |   |   |   | 0.4 | % |
|                                           |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                     |   |                        | 5,844  |   |                      |   | 16.1 | % |   |   | 10,048 |   |   |   | 22.6 | % |   |   | 11,897 |   |   |   | 16.6 | % |   |   | 19,700 |   |   |   | 21.8 | % |
| Income taxes                                   |   |                        | 2,326  |   |                      |   | 6.4 | % |   |   | 3,938 |   |   |   | 8.9 | % |   |   | 4,735 |   |   |   | 6.6 | % |   |   | 7,722 |   |   |   | 8.6 | % |
| Net income                                     |   | $                           | 3,518  |   |                      |   | 9.7 | % |   | $ | 6,110 |   |   |   | 13.7 | % |   | $ | 7,162 |   |   |   | 10.0 | % |   | $ | 11,978 |   |   |   | 13.2 | % |
|                                           |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                            |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                          |   | $                           | 0.19   |   |                      |   |   |   |   | $ | 0.34 |   |   |   |   |   |   | $ | 0.39 |   |   |   |   |   |   | $ | 0.66 |   |   |   |   |   |
| Dilutive                                       |   | $                           | 0.19   |   |                      |   |   |   |   | $ | 0.33 |   |   |   |   |   |   | $ | 0.39 |   |   |   |   |   |   | $ | 0.66 |   |   |   |   |   |
|                                           |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares used in earnings per share calculation: |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                          |   |                        | 18,145 |   |                      |   |   |   |   |   | 18,232 |   |   |   |   |   |   |   | 18,144 |   |   |   |   |   |   |   | 18,230 |   |   |   |   |   |
| Dilutive                                       |   |                        | 18,175 |   |                      |   |   |   |   |   | 18,295 |   |   |   |   |   |   |   | 18,175 |   |   |   |   |   |   |   | 18,286 |   |   |   |   |   |
|                                           |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends paid per share                       |   | $                           | 0.18   |   |                      |   |   |   |   | $ | 0.15 |   |   |   |   |   |   | $ | 0.36 |   |   |   |   |   |   | $ | 0.30 |   |   |   |   |   |

----

|           |   | Treatment and Disposal Revenue GrowthThree Months Ended June 30, 2009 vs. Three Months Ended June 30, 2008 |
|----------------|--------|------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                       |
| Refinery       |   | 120%                                                                                                       |
| Private        |   | 7%                                                                                                         |
| Broker         |   | 3%                                                                                                         |
| Rate regulated |   | -3%                                                                                                        |
| Other industry |   | -30%                                                                                                       |
| Government     |   | -64%                                                                                                       |
| Steel          |   | -83%                                                                                                       |

----

----

|           |   | Treatment and Disposal Revenue GrowthSix Months Ended June 30, 2009 vs. Six Months Ended June 30, 2008 |
|----------------|--------|--------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                   |
| Refinery       |   | 140%                                                                                                   |
| Broker         |   | 5%                                                                                                     |
| Rate Regulated |   | 4%                                                                                                     |
| Private        |   | -12%                                                                                                   |
| Other industry |   | -29%                                                                                                   |
| Government     |   | -54%                                                                                                   |
| Steel          |   | -74%                                                                                                   |

----

----

----

----

----

| Period (1)                                 |   | Total Number of Shares Purchased |   |   | Average Price Paid per Share |   |   | Total Number of Shares Purchased as Part of Publicly Announced Program |   |   | Maximum Number of Shares That May Yet Be Purchased Under the Program (2) |   |
|--------------------------------------------|--------|----------------------------------|--------|--------|------------------------------|--------|--------|------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------|--------|
| April 1, 2009  to April 30, 2009 |   |                             | -      |   |                         | $      | -      |                                                                   |   |   | 155,315                                                                  |   |   |   | 444,685 |   |
| May 1, 2009 to May 31, 2009                |   |                             | -      |   |                         | $      | -      |                                                                   |   |   | 155,315                                                                  |   |   |   | 444,685 |   |
| June 1, 2009 to June 30, 2009              |   |                             | -      |   |                         | $      | -      |                                                                   |   |   | 155,315                                                                  |   |   |   | 444,685 |   |
| Total                                      |   |                             | -      |   |                         | $      | -      |                                                                   |   |   | 155,315                                                                  |   |   |   | 444,685 |   |

----

|   | (1) | The reported periods conform to our fiscal calendar.  The second quarter of fiscal 2009 began on April 1, 2009 and ended on June 30, 2009. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | On October 28, 2008, our Board of Directors authorized a program to repurchase up to 600,000 shares of the Company’s outstanding common stock through December 31, 2008.  On December 11, 2008, the program was extended from December 31, 2008 to February 28, 2009. On February 23, 2009, the program was extended from February 28, 2009 to December 31, 2009. Stock repurchases under the program may be made inthe open market or through privately negotiated transactions at times and in such amounts as the Company deems to be appropriate. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1) | Election of Directors |
|----|-----------------------|

| Nominee               |   | Votes For  |   | Votes Withheld |
|-----------------------|--------|------------|--------|----------------|
| Victor J. Barnhart    |   | 16,673,266 |   | 145,271        |
| Joe F. Colvin         |   | 16,768,981 |   | 49,556         |
| Roy C. Eliff          |   | 16,765,035 |   | 53,502         |
| Edward F. Heil        |   | 16,578,515 |   | 240,021        |
| Jeffrey S. Merrifield |   | 16,769,624 |   | 48,912         |
| John W. Polling       |   | 16,673,796 |   | 144,740        |
| Stephen A. Romano     |   | 16,520,618 |   | 297,918        |

| 2) | Ratification of the Appointment of Deloitte & Touche as Our Independent Registered Public Accountant |
|----|----------------------------------------------------------------------------------------------------------|

| Votes For  |   | Votes Against |   | Abstentions |   | Broker Non-Voted |
|------------|--------|---------------|--------|-------------|--------|------------------|
| 16,783,731 |   | 19,252        |   | 15,553      |   | -                |

----

| Audit Committee          |   | Compensation Committee       |   | Corporate Governance and Nominating Committee |
|--------------------------|--------|------------------------------|--------|-----------------------------------------------|
| John W. Poling, Chairman |   | Victor J. Barnhart, Chairman |   | Jeffrey S. Merrifield, Chairman               |
| Roy C. Eliff             |   | Roy C. Eliff                 |   | Edward F. Heil                                |
| Victor J. Barnhart       |   | John W. Poling               |   | Joe F. Colvin                                 |

|   | 31.1   | Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                         |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                   |
|   | 31.2   | Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                         |
|   |   |                                                                                                                   |
|   | 32     | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|   |   |                                                                                                                   |
|   | 99.1   | First Amendment to Revolving Credit Agreement with Wells Fargo                                                         |
|   |   |                                                                                                                   |

----

|                           | American Ecology Corporation                                |
|--------------------------------|-------------------------------------------------------------|
|                           | (Registrant)                                      |
| Date:  July 30, 2009 | /s/ Jeffrey R. Feeler                                       |
|                           | Jeffrey R. FeelerVice President and Chief Financial Officer |

----