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 June 30, 2006





**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
              incorporation
                or organization)
            (I.R.S.
                Employer
              Identification
                Number)Lakepointe
                Centre I,
              300
                E. Mallard, Suite 300
              Boise,
                Idaho
              (Address
                of principal executive offices)
            83706
              (Zip
                Code)





(208)
      331-8400


(Registrant’s
      telephone number, including area code)





Indicate
      by 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  o





Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, or a non-accelerated filer. See definition of “accelerated
      filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check
      one):     Large accelerated filer   o   Accelerated filer x Non-accelerated filer   o





Indicate
      by check mark if the Registrant is a shell company (as defined in Rule 12b-2
      of
      the Act).     Yes   o No x





At
      July
      28, 2006 Registrant had outstanding 18,134,678 shares of its Common
      Stock.










**AMERICAN
      ECOLOGY CORPORATION**


**Quarterly
      Report on Form 10-Q for the**


**Six
      Months Ended June 30, 2006**








**TABLE
      OF CONTENTS**




**Part
      I. Financial Information**




PAGEItem
                1.
            Financial
                StatementsConsolidated
                Balance Sheets
                (Unaudited)
            4Consolidated
                Statements of Operations
                (Unaudited)
            5Consolidated
                Statements of Cash Flows
                (Unaudited)
            6Notes
                to Consolidated Financial
                Statements
            7Item
                2.
            Management’s
                Discussion and Analysis of Financial Condition
                and Results of Operations
            14Item
                3.
            Quantitative
                and Qualitative Disclosures About Market
                Risk
            23Item
                4.
            Controls
                and Procedures
            23**Part
                II. Other Information**Item
                1.
            Legal
                Proceedings
            23Item
                2.
            Unregistered
                Sales of Equity Securities and Use of
                Proceeds
            23Item
                3.
            Defaults
                Upon Senior Securities
            23Item
                4.
            Submission
                of Matters to a Vote of Security
                Holders
            23Item
                5.
            Other
                Information
            24Item
                6.
            Exhibits
            24Signatures
            24  2




**OFFICERS**
              
              **CORPORATE
                  OFFICE******Stephen
                  A. Romano
              
              Lakepointe
                  Centre I*Chief
                  Executive Officer, President and Chief*
              
              American
                  Ecology Corporation*Operating
                  Officer*
              
              300
                  East Mallard Drive, Suite 300Boise,
                  Idaho 83706Simon
                  G. Bell
              
              (208)
                  331-8400*Vice
                  President and Director of Hazardous Waste*
              
              (208)
                  331-7900 (fax)*Operations*
              
              www.americanecology.comJohn
                  M. Cooper*Vice
                  President and Chief Information Officer*Jeffrey
                  R. Feeler (Effective July 28, 2006)
              
              **COMMON
                  STOCK***Vice
                  President and Controller, Chief Accounting*
              
              American
                  Ecology Corporation's common stock*Officer,
                  Treasurer*
              
              trades
                  on the Nasdaq National Marketunder
                  the symbol ECOL.Michael
                  J. Gilberg (Through July 28, 2006)*Vice
                  President and Controller, Chief Accounting**Officer,
                  Secretary and Treasurer*Michael
                  G. Hannon*Vice
                  President of Corporate Development*
              
              **FINANCIAL
                  REPORTS**A
                  copy of American Ecology CorporationWayne
                  R. Ipsen
              
              Annual
                  and Quarterly Reports, as filed on Form*Assistant
                  Secretary*
              
              10-K
                  and 10-Q with the Securities and ExchangeCommission,
                  may be obtained by writing:Steven
                  D. Welling
              
              Lakepointe
                  Centre I*Vice
                  President of Sales & Marketing*
              
              300
                  E. Mallard, Suite 300Boise,
                  Idaho 83706**DIRECTORS**
              
              or
                  atwww.americanecology.comKenneth
                  C. Leung, Chairman*Managing
                  Director, Sanders Morris Harris*Roy
                  C. Eliff*Independent
                  Businessman*Edward
                  F. Heil, Chairman*Independent
                  Businessman*
              
              **TRANSFER
                  AGENT**American
                  Stock Transfer & Trust CompanyJohn
                  W. Poling*Executive
                  Vice President, Corporate*
              
              59
                  Maiden Lane*Development,
                  The Tube Media Corp.*
              
              New
                  York, New York 10038(718)
                  921-8289Richard
                  Riazzi
              
              or
                  atwww.amstock.com*General
                  Manager, Chelan County PUD*Stephen
                  A. Romano*Chief
                  Executive Officer, President and Chief**Operating
                  Officer*General
                  Jimmy D. Ross*U.S.
                  Army, Retired*
              
              **AUDITOR**Moss
                  Adams LLPGeneral
                  Richard T. Swope
              
              1001
                  Fourth Avenue, Suite 2900*U.S.
                  Air Force, Retired*
              
              Seattle,
                  WA 98154




3





**PART
      I.****FINANCIAL
      INFORMATION**


**Item
      1.**  **Financial Statements.**





**AMERICAN
      ECOLOGY CORPORATION**


**CONSOLIDATED
      BALANCESHEETS** **(Unaudited)**


**($
      in 000’s except per share amounts)**


June
                30, 2006
            
            December
                31, 2005ASSETSCurrent
                Assets:Cash
                and cash equivalents
            
            $
            1,612
            
            $
            3,641Short-term
                investments
            
            
            9,205
            
            
            16,214Receivables,
                net
            
            
            21,845
            
            
            13,573Insurance
                receivable
            
            
            157
            
            
            157Prepayments
                and other
            
            
            3,727
            
            
            3,183Income
                tax receivable
            
            
            1,351
            
            
            1,248Deferred
                income taxes
            
            
            1,848
            
            
            6,714Total
                current assets
            
            
            39,745
            
            
            44,730Property
                and equipment, net
            
            
            48,700
            
            
            40,896Restricted
                cash
            
            
            4,622
            
            
            84Other
                assets
            
            
            501
            
            
            738Deferred
                income taxes
            
            
            3,021
            
            
            3,021Total
                assets
            
            $
            96,589
            
            $
            89,469LIABILITIES
                AND SHAREHOLDERS’ EQUITYCurrent
                Liabilities:Current
                portion of long-term debt
            
            $
            6
            
            $
            --Accounts
                payable
            
            
            3,270
            
            
            3,665Deferred
                revenue
            
            
            3,360
            
            
            1,261State
                burial fees payable
            
            
            1,635
            
            
            1,454Management
                incentive plan payable
            
            
            870
            
            
            1,272Customer
                advances
            
            
            1,912
            
            
            1,535Customer
                refunds
            
            
            413
            
            
            1,062Accrued
                liabilities
            
            
            1,807
            
            
            1,337Accrued
                closure and post closure obligation, current portion
            
            
            999
            
            
            1,127Total
                current liabilities
            
            
            14,272
            
            
            12,713Long-term
                debt
            
            
            27
            
            
            --Long-term
                accrued liabilities
            
            
            549
            
            
            485Long-term
                customer advances
            
            
            1,006
            
            
            1,752Accrued
                closure and post closure obligation, excluding current
                portion
            
            
            10,496
            
            
            10,560Total
                liabilities
            
            
            26,350
            
            
            25,510Commitments
                and contingenciesShareholders’
                equity:Convertible
                preferred stock, 1,000,000 shares authorized,Common
                stock, $.01 par value, 50,000,000 authorized, 18,134,678 and 17,742,420
                shares issued and outstanding
            
            
            181
            
            
            177Additional
                paid-in capital
            
            
            55,758
            
            
            53,213Retained
                earnings
            
            
            14,300
            
            
            10,569Total
                shareholders’ equity
            
            
            70,239
            
            
            63,959Total
                Liabilities and Shareholders’ Equity
            
            $
            96,589
            
            $
            89,469





See
      notes
      to consolidated financial statements.





4




**AMERICAN
      ECOLOGY CORPORATION**


**CONSOLIDATED
      STATEMENTS OF
      OPERATIONS**


**(Unaudited)**


**($
      in 000’s except per share amounts)**





Three
                Months Ended
              June
                30,
            
            Six
                Months Ended
              June
                30,2006
            
            2005
            
            2006
            
            2005Revenue
            
            $
            29,924
            
            $
            18,779
            
            $
            51,446
            
            $
            31,333Transportation
                costs
            
            
            11,459
            
            
            3,823
            
            
            16,516
            
            
            7,036Other
                direct operating costs
            
            
            7,940
            
            
            5,736
            
            
            14,695
            
            
            11,236Gross
                profit
            
            
            10,525
            
            
            9,220
            
            
            20,235
            
            
            13,061Selling,
                general and administrative expenses
            
            
            3,061
            
            
            3,358
            
            
            6,544
            
            
            5,872Business
                interruption insurance claims
            
            
            --
            
            
            --
            
            
            --
            
            
            (41
            )Operating
                income
            
            
            7,464
            
            
            5,862
            
            
            13,691
            
            
            7,230Interest
                income
            
            
            205
            
            
            93
            
            
            393
            
            
            178Interest
                expense
            
            
            1
            
            
            48
            
            
            2
            
            
            95Other
                income
            
            
            174
            
            
            22
            
            
            458
            
            
            39Income
                before income tax
            
            
            7,842
            
            
            5,929
            
            
            14,540
            
            
            7,352Income
                tax expense
            
            
            2,915
            
            
            2,223
            
            
            5,434
            
            
            2,790Net
                income
            
            $
            4,927
            
            $
            3,706
            
            $
            9,106
            
            $
            4,562Basic
                earnings per share
            
            $
            .27
            
            $
            .21
            
            $
            .51
            
            $
            .26Diluted
                earnings per share
            
            $
            .27
            
            $
            .21
            
            $
            .50
            
            $
            .26Dividends
                paid per common share
            
            $
            .15
            
            $
            --
            
            $
            .30
            
            $
            --





See
      notes
      to consolidated financial statements.





5





**AMERICAN
      ECOLOGY CORPORATION**


**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**


**(Unaudited,
      $ in 000’s)**


Six
                Months Ended June 30,2006
            
            2005Cash
                flows from operating activities:Net
                income
            
            $
            9,106
            
            $
            4,562Adjustments
                to reconcile net income to net cash provided by operating
                activities:Depreciation,
                amortization, and accretion
            
            
            3,846
            
            
            3,066Deferred
                tax asset
            
            
            4,866
            
            
            2,135Stock
                compensation
            
            
            222
            
            
            180Changes
                in assets and liabilities:Receivables
            
            
            (8,272
            )
            
            (4,673
            )Other
                assets
            
            
            (225
            )
            
            (1,874
            )Closure
                and post closure obligation
            
            
            (729
            )
            
            (460
            )Income
                taxes payable/receivable
            
            
            (103
            )
            
            --Accounts
                payable and accrued liabilities
            
            
            999
            
            
            2,256Net
                cash provided by operating activities
            
            
            9,710
            
            
            5,192Cash
                flows from investing activities:Capital
                expenditures
            
            
            (11,081
            )
            
            (7,217
            )Proceeds
                from sale of property and equipment
            
            
            4
            
            
            749Transfers
                from cash to restricted cash
            
            
            (4,622
            )
            
            --Transfers
                to cash from short term investments, net
            
            
            7,009
            
            
            7Net
                cash used by investing activities
            
            
            (8,690
            )
            
            (6,461
            )Cash
                flows from financing activities:Dividends
                paid
            
            
            (5,375
            )
            
            --Payments
                of indebtedness
            
            
            (1
            )
            
            (728
            )Income
                tax benefit on exercise of stock options
            
            
            551
            
            
            652Stock
                options exercised
            
            
            1,776
            
            
            870Net
                cash (used) provided by financing activities
            
            
            (3,049
            )
            
            794Decrease
                in cash and cash equivalents
            
            
            (2,029
            )
            
            (475
            )Cash
                and cash equivalents at beginning of period
            
            
            3,641
            
            
            2,160Cash
                and cash equivalents at end of period
            
            $
            1,612
            
            $
            1,685Supplemental
                disclosures of cash flow information:Cash
                paid during the year for:Interest
            
            $
            2
            
            $
            95Income
                taxes paid
            
            
            103
            
            
            4Non-cash
                investing and financing activities:Acquisition
                of equipment with notes/capital leases
            
            
            34
            
            
            --Common
                stock dividends accrued
            
            
            --
            
            
            2,645Common
                stock issued for director and employee compensation
            
            
            222
            
            
            180





See
      notes
      to consolidated financial statements.





6





**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 2005 Annual Report on Form 10-K
      for the year ended December 31, 2005, filed with the Securities and Exchange
      Commission.





Certain
      reclassifications of prior quarter amounts have been made to conform to 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.




Three
                Months Ended
              June
                30,
            
            Six
                Months Ended
              June
                30,($
                in thousands except per share amounts)
            
            2006
            
            2005
            
            2006
            
            2005Net
                income available to common shareholders
            
            $
            4,927
            
            $
            3,706
            
            $
            9,106
            
            $
            4,562Weighted
                average shares outstanding-Common
                shares
            
            
            18,116
            
            
            17,509
            
            
            17,997
            
            
            17,460Effect
                of dilutive stock options
            
            
            141
            
            
            436
            
            
            135
            
            
            421Average
                shares
            
            
            18,257
            
            
            17,945
            
            
            18,132
            
            
            17,881Basic
                earnings per share
            
            $
            .27
            
            $
            .21
            
            $
            .51
            
            $
            .26Diluted
                earnings per share
            
            $
            .27
            
            $
            .21
            
            $
            .50
            
            $
            .26




**Note
                3.**
            **Equity**





On
      January 2, April 3, and July 3, 2006, the Company declared dividends of $0.15
      per common share to stockholders of record on January 2, April 14, and July
      14,
      2006, respectively. Each of the dividends was paid out of cash on hand on
      January 13, April 21, and July 21, 2006 in the amounts of $2,661,000, $2,714,000
      and $2,720,000, respectively. The Company also intends that shareholders of
      record on October 13, 2006 will receive a $0.15 per share dividend, subject
      to
      certain conditions such as continued compliance with bank
      covenants.





7





**Note
                4.**
            **Line
                of Credit**





At
      June
      30, 2006 and 2005, the outstanding balance on the revolving line of credit
      was
      $0 and the availability under the line of credit was $10,000,000 and $3,000,000,
      respectively, with $5,000,000 of the line of credit availability restricted
      for
      the outstanding standby letters of credit utilized as collateral for the
      Company’s financial assurance policies. The Company has continued to borrow on,
      and repay the line of credit according to business demands and availability
      of
      cash.





**Note
                5.**
            **Operating
                Segments**





The
      Company operates within 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 no longer accepting hazardous
      and/or radioactive waste or formerly proposed new disposal facilities.





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.





Summarized
      financial information concerning the Company’s reportable segments is shown in
      the following table:




($
                in thousands)
            
            Operating
              Disposal
                Facilities
            
            Non-Operating
              Disposal
                Facilities
            
            Corporate
            
            TotalThree
                months ended June 30, 2006Revenue
            
            $
            29,918
            
            $
            6
            
            $
            --
            
            $
            29,924Transportation
                cost
            
            
            11,459
            
            
            --
            
            
            --
            
            
            11,459Other
                direct operating cost
            
            
            7,847
            
            
            93
            
            
            --
            
            
            7,940Gross
                profit (loss)
            
            
            10,612
            
            
            (87
            )
            
            --
            
            
            10,525SG&A
            
            
            1,283
            
            
            1
            
            
            1,777
            
            
            3,061Operating
                income (loss)
            
            
            9,329
            
            
            (88
            )
            
            (1,777
            )
            
            7,464Interest
                income, net
            
            
            7
            
            
            --
            
            
            197
            
            
            204Other
                income
            
            
            1
            
            
            173
            
            
            --
            
            
            174Income
                (loss) before income tax
            
            
            9,337
            
            
            85
            
            
            (1,580
            )
            
            7,842Income
                tax expense
            
            
            --
            
            
            --
            
            
            2,915
            
            
            2,915Net
                income (loss)
            
            $
            9,337
            
            $
            85
            
            $
            (4,495
            )
            $
            4,927Depreciation,
                amortization, and accretion
            
            $
            1,896
            
            $
            90
            
            $
            6
            
            $
            1,992Capital
                expenditures
            
            $
            2,371
            
            $
            4
            
            $
            54
            
            $
            2,429Total
                assets
            
            $
            70,904
            
            $
            83
            
            $
            25,602
            
            $
            96,589Three
                months ended June 30, 2005Revenue
            
            $
            18,762
            
            $
            17
            
            $
            --
            
            $
            18,779Transportation
                cost
            
            
            3,823
            
            
            --
            
            
            --
            
            
            3,823Other
                direct operating cost
            
            
            5,633
            
            
            103
            
            
            --
            
            
            5,736Gross
                profit (loss)
            
            
            9,306
            
            
            (86
            )
            
            --
            
            
            9,220SG&A
            
            
            1,257
            
            
            2
            
            
            2,099
            
            
            3,358Operating
                income (loss)
            
            
            8,049
            
            
            (88
            )
            
            (2,099
            )
            
            5,862Interest
                income, net
            
            
            10
            
            
            --
            
            
            35
            
            
            45Other
                income
            
            
            22
            
            
            --
            
            
            --
            
            
            22Income
                (loss) before income tax
            
            
            8,081
            
            
            (88
            )
            
            (2,064
            )
            
            5,929Income
                tax expense
            
            
            --
            
            
            --
            
            
            2,223
            
            
            2,223Net
                income (loss)
            
            $
            8,081
            
            $
            (88
            )
            $
            (4,287
            )
            $
            3,706Depreciation,
                amortization, and accretion
            
            $
            1,588
            
            $
            95
            
            $
            7
            
            $
            1,690Capital
                expenditures
            
            $
            4,685
            
            $
            3
            
            $
            --
            
            $
            4,688Total
                assets
            
            $
            46,702
            
            $
            6,545
            
            $
            31,859
            
            $
            85,106




8




($
                  in thousands)
              
              Operating
                Disposal
                Facilities
              
              Non-Operating
                Disposal
                Facilities
              
              Corporate
              
              TotalSix
                  months ended June 30, 2006Revenue
              
              $
              51,436
              
              $
              10
              
              $
              --
              
              $
              51,446Transportation
                  cost
              
              
              16,516
              
              
              --
              
              
              --
              
              
              16,516Other
                  direct operating cost
              
              
              14,511
              
              
              184
              
              
              --
              
              
              14,695Gross
                  profit (loss)
              
              
              20,409
              
              
              (174
              )
              
              --
              
              
              20,235SG&A
              
              
              2,613
              
              
              1
              
              
              3,930
              
              
              6,544Operating
                  income (loss)
              
              
              17,796
              
              
              (175
              )
              
              (3,930
              )
              
              13,691Interest
                  income, net
              
              
              17
              
              
              --
              
              
              374
              
              
              391Other
                  income/(expense)
              
              
              (14
              )
              
              173
              
              
              299
              
              
              458Income
                  (loss) before income tax
              
              
              17,799
              
              
              (2
              )
              
              (3,257
              )
              
              14,540Income
                  tax expense
              
              
              --
              
              
              --
              
              
              5,434
              
              
              5,434Net
                  income (loss)
              
              $
              17,799
              
              $
              (2
              )
              $
              (8,691
              )
              $
              9,106Depreciation,
                  amortization, and accretion
              
              $
              3,654
              
              $
              180
              
              $
              12
              
              $
              3,846Capital
                  expenditures
              
              $
              10,974
              
              $
              53
              
              $
              54
              
              $
              11,081Total
                  assets
              
              $
              70,904
              
              $
              83
              
              $
              25,602
              
              $
              96,589Six
                  months ended June 30, 2005Revenue
              
              $
              31,299
              
              $
              34
              
              $
              --
              
              $
              31,333Transportation
                  cost
              
              
              7,036
              
              
              --
              
              
              --
              
              
              7,036Other
                  direct operating cost
              
              
              11,027
              
              
              209
              
              
              --
              
              
              11,236Gross
                  profit (loss)
              
              
              13,236
              
              
              (175
              )
              
              --
              
              
              13,061SG&A
              
              
              2,364
              
              
              7
              
              
              3,501
              
              
              5,872BI
                  claim
              
              
              (41
              )
              
              --
              
              
              --
              
              
              (41
              )Operating
                  income (loss)
              
              
              10,913
              
              
              (182
              )
              
              (3,501
              )
              
              7,230Interest
                  income, net
              
              
              20
              
              
              --
              
              
              63
              
              
              83Other
                  income
              
              
              39
              
              
              --
              
              
              --
              
              
              39Income
                  (loss) before income tax
              
              
              10,972
              
              
              (182
              )
              
              (3,438
              )
              
              7,352Income
                  tax expense
              
              
              --
              
              
              --
              
              
              2,790
              
              
              2,790Net
                  income (loss)
              
              $
              10,972
              
              $
              (182
              )
              $
              (6,228
              )
              $
              4,562Depreciation,
                  amortization, and accretion
              
              $
              2,861
              
              $
              190
              
              $
              15
              
              $
              3,066Capital
                  expenditures
              
              $
              7,214
              
              $
              3
              
              $
              --
              
              $
              7,217Total
                  assets
              
              $
              46,702
              
              $
              6,545
              
              $
              31,859
              
              $
              85,106


**Note
                  6.**
              **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 through December 31, 2005, and under SFAS No. 123R,
      “Share Based Payment” as of January 1, 2006. Under SFAS 123R, the Company has
      recognized the following compensation expense for options vesting in the quarter
      ended March 31, 2006, at which time all issued options had vested.





9





($
                in thousands)
            Compensation
                ExpenseFair
                value of options earned during the first quarter of 2006
            $
                47





As
      of
      March 31, 2006, all outstanding options were vested and no further option
      compensation expense will be recognized unless additional options are
      issued.





The
      following table illustrates the effect on net income and earnings per share
      by
      applying the fair value recognition provisions of FASB Statement No. 123R, *Share
      Based Payment* ,
      to
      stock-based compensation for the three and six months ended June 30,
      2005:





Three
                Months Ended
              June
                30, 2005
            
            Six
                Months Ended
              June
                30, 2005Net
                income, as reported
            
            $
            3,706
            
            $
            4,562Deduct:
                Total stock-based employee compensation expense determined under
                fair
                value based method for all awards, net of related tax
                effects
            
            
            (94
            )
            
            (227
            )Pro
                forma net income
            
            $
            3,612
            
            $
            4,335**Earnings
                per share:**Basic
                - as reported
            
            $
            .21
            
            $
            .26Basic
                - pro forma
            
            $
            .21
            
            $
            .25Diluted
                - as reported
            
            $
            .21
            
            $
            .26Diluted
                - pro forma
            
            $
            .20
            
            $
            .24




The
      stock
      option plan summary and changes during the three and six months ended June
      30
      are as follows:





Three
                Months Ended
            
            Six
                Months Ended2006
            
            2005
            
            2006
            
            2005Options
                outstanding, beginning of period
            
            
            245,624
            
            
            878,408
            
            
            567,320
            
            
            913,708Granted
            
            
            --
            
            
            --
            
            
            --
            
            
            7,500Exercised
            
            
            (64,728
            )
            
            (179,377
            )
            
            (386,424
            )
            
            (222,177
            )Canceled
            
            
            --
            
            
            (25,000
            )
            
            --
            
            
            (25,000
            )Options
                outstanding, end of period
            
            
            180,896
            
            
            674,031
            
            
            180,896
            
            
            674,031Weighted
                average exercise price of options, beginning of period
            
            $
            5.17
            
            $
            4.50
            
            $
            4.84
            
            $
            4.40Weighted
                average exercise price of options granted
            
            $
            --
            
            $
            --
            
            $
            --
            
            $
            11.53Weighted
                average exercise price of options exercised
            
            $
            4.60
            
            $
            4.01
            
            $
            4.60
            
            $
            3.92Weighted
                average exercise price of options canceled
            
            $
            --
            
            $
            4.00
            
            $
            --
            
            $
            4.00Weighted
                average exercise price of options, end of period
            
            $
            5.37
            
            $
            4.65
            
            $
            5.37
            
            $
            4.65Options
                exercisable at end of period
            
            
            180,896
            
            
            521,361
            
            
            180,896
            
            
            521,361Options
                available for future grant at end of period
            
            
            188,976
            
            
            188,976
            
            
            188,976
            
            
            188,976




The
      following table summarizes information about the stock options outstanding
      under
      the Company’s option plans as of June 30, 2006:





10





Range
                of exercise
              price
                per share
            
            Weighted
                average
              Remaining
              contractual
                life
              (years)
            
            Number
              outstanding
            
            Weighted
              average
                exercise
              price
                per share
            
            Number
              exercisable
            
            Weighted
              average
                exercise
              price
                pershare$
            1.00
                - $1.47
            
            
            1.2
            
            
            27,500
            
            $
            1.26
            
            
            27,500
            
            $
            1.26$
            2.13
            
            
            2.9
            
            
            10,000
            
            $
            2.13
            
            
            10,000
            
            $
            2.13$
            2.42
                - $3.50
            
            
            5.0
            
            
            11,800
            
            $
            2.58
            
            
            11,800
            
            $
            2.58$
            3.75
                - $4.50
            
            
            4.6
            
            
            22,200
            
            $
            3.81
            
            
            22,200
            
            $
            3.81$
            6.50
            
            
            6.6
            
            
            84,396
            
            $
            6.50
            
            
            84,396
            
            $
            6.50$
            9.20
                - $12.15
            
            
            8.1
            
            
            25,000
            
            $
            10.09
            
            
            25,000
            
            $
            10.09180,896
            
            
            
            
            
            180,896





As
      of
      June 30, 2006, the 1992 Stock Option Plan for Employees had options outstanding
      to purchase 86,196 common shares with 188,976 shares remaining available for
      issuance under option grants.





Effective
      March 28, 2005, the Company’s Board of Directors terminated the 1992 Amended and
      Restated Outside Director Stock Option Plan, except for option grants then
      outstanding. As of June 30, 2006, the 1992 Outside Director Stock Option Plan
      had options outstanding to purchase 94,700 common shares.





No
      options were granted during the quarter ended June 30, 2006. For grants during
      the six months ended June 30, 2005, the fair value of each option grant is
      estimated using the Black-Scholes option-pricing model with the following
      weighted-average assumptions:





Three
                Months Ended June 30
            
            Six
                Months Ended June 302006
            
            2005
            
            2006
            
            2005Expected
                volatility
            
            
            --
            
            
            --
            
            
            --
            
            
            50
            %Risk-free
                interest rates
            
            
            --
            
            
            --
            
            
            --
            
            
            4.1
            %Expected
                lives
            
            
            --
            
            
            --
            
            
            --
            
            
            10
                yearsDividend
                yield
            
            
            --
            
            
            --
            
            
            --
            
            
            2.7
            %Weighted-average
                fair value of options granted during the quarter
                (Black-Scholes)
            
            
            --
            
            
            --
            
            
            --
            
            $
            5.28





**Note
                7.**
            **2005
                Non-Employee Director Compensation
                Plan**





The
      2005
      Non-Employee Director Compensation Plan (“Director Plan”) was approved by
      shareholders at the Company’s May 25, 2005 Annual Meeting. The Director Plan
      provides for Non-Employee Directors to be paid an annual retainer of $16,000
      in
      cash plus $25,000 in restricted stock with a one-year vesting period. The
      Director Plan also provides for each Non-Employee Director to be paid a meeting
      fee of $750 or $1,000 for each Committee or Board meeting they attend, as well
      as an additional payment, when appointed, of $4,000 for each standing committee
      chairman and $20,000 to the Chairman of the Board.





As
      of
      June 30, 2006, 19,600 shares of restricted stock had been issued to the
      Non-Employee Directors and 180,400 shares of stock remain available for issuance
      under the Director Plan.





**Note
                8.**
            **2006
                Restricted Stock Plan**





The
      2006
      Restricted Stock Plan (“Employee Plan”) was approved by shareholders at the
      Company’s May 25, 2006 Annual Meeting. The Plan provides for Company employees
      to be eligible for grants of restricted stock at the discretion of the Company’s
      Board of Directors.





As
      of
      June 30, 2006, 934 shares of restricted stock had been issued to employees
      and
      199,066 shares of stock remain available for issuance under the
      Plan.





11





**Note
                9.**
            **Litigation**




There
      is
      no material litigation outstanding.





**Note
                10.**
            **Commitments
                and Contingencies**





Effective
      January 1, 2003, the Company established the American Ecology Corporation
      Management Incentive Plan (“2003 MIP”). The Plan provides for specified
      participants to receive bonuses based on pre-tax operating income levels. Plan
      bonuses are to be paid out over three years with a maximum in any one year
      of
      $1,125,000 if pre-tax operating income exceeds $12,000,000 including all 2003
      MIP costs. As of June 30, 2006, the 2003 MIP has been fully accrued and no
      further expense is expected during 2006.





Effective
      January 1, 2006, the Company established the 2006 Management Incentive Bonus
      Plan (“2006 MIP”), which provides for selected management participants not
      included in the 2003 MIP to receive 2006 bonuses if objective performance
      criteria are met. Bonuses under the plan are to be paid up to 45% of the
      participant’s salary with maximum aggregate payments of approximately $369,000
      due if all performance criteria are met during 2006.





The
      Company has accrued for the 2003 and 2006 MIPs as follows:





Three
                Months Ended June 30,
            
            Six
                Months Ended June 30,($
                in thousands)
            
            2006
            
            2005
            
            2006
            
            20052003
                MIP expense included in SG&A
            
            $
            196
            
            $
            541
            
            $
            550
            
            $
            5412006
                MIP expense included in SG&A
            
            $
            88
            
            $
            --
            
            $
            171
            
            $
            --




On
      June
      23, 2006, the Company committed to purchase up to 84 rail cars for an aggregate
      purchase price of $6,400,000.




The
      Company intends that shareholders of record on October 13, 2006 will receive
      a
      $0.15 per share dividend subject to compliance with applicable Bank
      covenants.





**Note
                11.**
            **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 (“SFAS”) No. 5, with
      the liability calculated in accordance with SFAS No. 143. 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 existing environmental conditions,
      current technology, laws and regulations, inflation and other economic factors.





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





Accrued
                Closure and
              Post
                Closure ObligationDecember
                31, 2005 obligation
            
            $
            11,687Accretion
                of obligation
            
            
            537Payment
                of obligation
            
            
            (596
            )Adjustment
                of obligation
            
            
            (133
            )June
                30, 2006 obligation
            
            $
            11,495





12





On
      April
      3, 2006, the Company funded $4.5 million in trust accounts using cash on hand
      to
      guarantee closure and post closure obligations at its non-operating sites in
      Texas and Illinois. At June 30, 2006, $4,536,000 of the Company’s assets,
      included in Restricted cash on the balance sheet, were legally restricted for
      purposes of settling the closure and post closure obligation.





**Note
                12.**
            **Honeywell
                International Contract**





On
      June
      8, 2005, the Company entered into a contract with Honeywell International,
      Inc.
      to transport, treat and dispose of an estimated one million tons of chromite
      ore
      processing residue over an estimated four to five year period. Waste disposal
      at
      the Company’s Grand View, Idaho facility began in July 2005. A $3,500,000
      advance payment was received from, and will be credited back to Honeywell during
      the contract term. The contract provides that the Company will receive 99%
      of
      the material shipped off-site for disposal and provides for deficiency fees
      when
      Honeywell is unable to provide specified minimum waste volumes to the Company,
      or the Company is unable to accept specified waste volumes when offered. Similar
      contract terms were entered into by the Company and its primary
      subcontractor.





On
      October 6, 2005, Honeywell filed a motion in U.S. District Court, District
      of
      New Jersey to reduce the amount of material removed from the site by 53%. On
      January 3, 2006, the U.S. District Court disqualified Honeywell’s expert witness
      and certain attorneys supporting this motion. On February 17, 2006, the U.S.
      Court of Appeals for the Third Circuit denied Honeywell’s petition for
      permission to appeal. The Company is not aware of any other motions to reduce
      the scope of the Honeywell project.





On
      November 16, 2005, Honeywell notified the Company that it had filed a brief
      with
      the U.S. District Court to resume waste excavation and offsite shipments in
      the
      March 2006 timeframe. The Company assessed Honeywell deficiency fees and was
      assessed deficiency fees by its subcontractors up to April 3, 2006, when waste
      shipments resumed.





During
      the three and six months ended June 30, 2006, shipments under the Honeywell
      contract represented 43% and 28% of Company revenues. At June 30, 2006,
      $8,941,000 of Accounts receivable was due the Company.





**Note
                13.**
            **Partial
                Service Interruption at Robstown, Texas
                Facility**





Waste
      treatment at the Company’s Robstown Texas facility was suspended following a
      July 1, 2004 fire in the facility’s waste treatment building. Prior to the fire,
      treatment revenue represented approximately 50% of facility revenue. Direct
      disposal operations, which continued without interruption after the fire,
      generated the balance of the facility’s revenue. While the Company is insured
      for business interruption, operational upgrades and reduced customer business
      adversely impacted 2004 and 2005 financial performance. The Texas facility
      restored limited treatment services in December 2004 and full treatment services
      on August 8, 2005.





As
      of
      March 31, 2006, the Company had filed approximately $2,200,000 in business
      interruption insurance claims with its insurance carrier, of which $1,332,000
      has been recognized and $1,175,000 has been received. The Company has a
      receivable for $157,000 of incremental costs due to the fire and is working
      with
      its insurer to resolve its remaining claim. Differences between the costs
      incurred and amounts recognized by the Company may adversely impact 2006
      financial performance, and no assurance can be given that the Company will
      collect additional funds for this claim.





**Note
                14.**
            **Subsequent
                Events**





On
      July
      3, 2006, the Company declared a dividend of $0.15 per common share to
      stockholders of record on July 14, 2006. The dividend was paid out of cash
      on
      hand on July 21, 2006 in the amount of $2,720,000.





On
      July
      27, 2006 the Company awarded stock option grants to 21 employees for an
      aggregate of 166,000 shares under the Amended and Restated American Ecology
      Corporation 1992 Employee Stock Option Plan.  The options carry a $21.74
      exercise price, vest 1/3rd each on July 27, 2007, 2008, 2009, and will
      expire on July 27, 2016 unless exercised or forfeited at an earlier
      date.  This
      action was taken based on the unanimous recommendation of the Board's
      Compensation Committee that Stock Option Grants were an important
      component of management retention.





13





The
      following highly compensated management employees were included in the July
      27, 2006 stock option grant:





Highly
                Compensated Management Employee
            
            Title
            
            Options
                GrantedStephen
                A. Romano
            
            Chief
                Executive Officer
            
            35,000John
                M. Cooper
            
            V.P
                and Chief Information Officer
            
            20,000Steven
                D. Welling
            
            V.P
                of Sales and Marketing
            
            20,000





**Item
                2.**
            **Management’s
                Discussion and Analysis of Financial Condition and Results of Operations.**





Statements
      and information included in this Form 10-Q that are not purely historical are
      forward-looking statements within the “safe harbor” provisions of the Private
      Securities Litigation Reform Act of 1995. Forward-looking statements include
      statements regarding the Company’s expectations, intentions, beliefs and
      strategies regarding the future including sales, earnings per share, cost
      structure, market position, market growth opportunities and new services. The
      Company may make other forward-looking statements from time to time, including,
      but not limited to press releases, public conferences, public investor
      conference calls and webcasts. All forward-looking statements are based on
      information available to the Company at the time the statements are made, and
      the Company assumes no obligation to update any forward-looking statements.
      Actual results are subject to a number of risks and uncertainties that could
      cause actual results to differ materially from those included in the
      forward-looking statements. Some of these risks and uncertainties are discussed
      below.





The
      reader should carefully consider the following risk factors. The risks and
      uncertainties described below are not the only ones the Company may face.
      Additional risks and uncertainties *Not
      Known* to us or
      that we now think are *Immaterial* may also
      impair the Company’s business operations. *General* risks
      that apply to most businesses also apply to the Company such as general economic
      conditions, availability of employees or other resources, inflation,
      seasonality, access to capital, natural disasters, acts of God, war, or terror.
      While not specified below, the *Not
      Known, Immaterial, or General Risks* could
      cause actual results to differ materially from those included in the
      forward-looking statements just as significantly as the risks specified
      below.





If
      any of
      the following specified risks were to occur, the Company’s business, financial
      condition and results of operations could be materially and adversely affected.
      If that occurs, the trading price of the Company’s common stock could decline,
      and investors may lose all or part of their investment.





**Access
      to Cost Effective Transportation Services**





Revenue
      at each of the Company’s facilities is subject to potential risks from
      disruptions in rail or truck transportation services which are relied upon
      to
      deliver waste to these facilities. Events such as increases in fuel costs,
      strikes, natural disasters and other acts of God, war, or terror could prevent
      or delay shipments and reduce both volumes and revenues. In addition,
      transportation services may be limited by economic conditions, including
      increased demand for rail or trucking services, resulting in sustained periods
      of slower service. No assurance can be given that we can procure transportation
      services at historic rates. Such factors could limit the Company’s ability to
      implement its growth plan and increase revenues.





**Ability
      and Willingness to Pay Dividends**





The
      Company’s ability to pay dividends is subject to certain conditions such as
      continued compliance with bank covenants and the Board of Director’s approval of
      any such dividend declaration or payment. Numerous events or situations could
      cause the Company to no longer be in compliance with bank covenants, or cause
      the Board of Directors to no longer approve the payment of
      dividends.





14





**Risks
      Described in December 31, 2005 Form 10-K**





Compliance
      and Changes with Applicable Laws and Regulations


Exposure
      to Litigation


Access
      to
      Insurance and Financial Assurances


Implementation
      of New Technologies


Competitive
      Environment


Economic
      Conditions affecting the Company’s Customers


Potential
      Loss of Major Contracts


Potential
      Fires or Other Incidents Limiting Operations


Access
      to
      Cost Effective Rail Transportation Service


Utilization
      of Net Operating Loss Carryforwards


Ability
      to Perform Contracts as Required


Significant
      Sales by the Selling Stockholders May Cause the Market Price of the Company’s
      Stock to Decline





**Introduction**





The
      Company is a hazardous, PCB, industrial and radioactive waste management company
      providing transportation, treatment and disposal services to commercial and
      government entities including, but not limited to oil refineries, chemical
      manufacturing plants, steel mills, the U.S. Department of Defense, biomedical
      facilities, universities and research institutions, and the nuclear power
      industry. The majority of its revenues are derived from fees charged at the
      Company’s four fixed waste disposal facilities. The Company and its predecessors
      have been in business for 53 years.





A
      significant portion of the Company’s revenue is attributable to discrete waste
      clean-up projects (“Event Business”) which vary substantially in size and
      duration. The one-time nature of Event Business necessarily creates variability
      in revenue and earnings. Moreover, the types and amounts of waste received
      from
      recurring (“Base Business”) customers also vary quarter to quarter. These
      variations in service mix are difficult to forecast with precision, and can
      produce large quarter to quarter swings in revenue, gross profit, gross margin
      and operating profit. Management’s strategy is to continue expanding its
      recurring customer business while simultaneously securing both short term and
      extended duration Event Business projects. When the Company’s Base Business
      covers the Company’s fixed costs, a significant portion of the Event Business
      revenue generally falls through to the bottom line. This strategy takes
      advantage of the operating leverage inherent to the largely fixed cost nature
      of
      the waste 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. Accounting for the July 1, 2004 Texas Fire, Disposal Facility
      Accounting, and Litigation involve subjective judgments, estimates and
      assumptions that would likely produce a materially different financial position
      and result of operations if different judgments, estimates, or assumptions
      were
      used. These matters are discussed below.





**Accounting
      for the July 1, 2004 Texas fire**




A
      July 1,
      2004 fire in the Robstown, Texas facility’s waste treatment building resulted in
      an insurance claim for Property
      and Equipment damaged in the fire. As of June 30, 2006, the Company had fully
      impaired the $679,000 in book value of assets damaged in the fire, and
      recognized and received $905,000 of property insurance proceeds. As of June
      30, 2006, the Company had filed approximately $2,200,000 in business
      interruption insurance claims with its insurance carrier of which $1,332,000
      has
      been recognized and $1,175,000 has been received. The Company has a receivable
      for $157,000 of incremental costs due to the fire and is working with its
      insurer to resolve its remaining claim. No assurance can be given that the
      Company will collect any additional funds for this claim.





15




**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 capitalized
                as a cell development asset.





§
            The
                cell development asset is amortized as each available cubic yard
                of
                disposal space is filled. Periodic independent engineering survey
                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. Additionally, changes in the estimated
                useful lives of the cells or related expansion plans have a direct
                effect
                on the amortization expense related to those cells during future
                periods.





§
            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 filled disposal units. Management estimates
                the
                timing of payment, 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 estimated as being paid in 2056 based upon current
                permitted
                capacity and estimated annual usage.





**Litigation**




The
      Company is periodically involved in litigation requiring estimates of timing
      and
      loss potential whose disposition is controlled by the judicial process or other
      factors. The Company is not presently involved in any material litigation;
      however litigation that we currently believe to be immaterial or are unaware
      of
      may ultimately prove to be material.





**Overall
      Company Performance**





The
      Company’s financial performance for the three and six months ended June 30, 2006
      was substantially improved over the first three and six months of 2005. The
      quarter to quarter improvements primarily reflect increased volumes as well
      as a
      more favorable waste service mix during the three and six months ended June
      30,
      2006, as discussed below .





**Outlook
      for 2006**




The
      Company continues to project that net earnings for 2006 will be at the upper
      end
      of its previously announced guidance range of $0.72 to $0.82 per diluted share.
      Management expects softer third quarter financial performance, however, due
      to
      pending completion of an event project shipping to its Washington facility
      as
      well as reduced waste shipments under the Company’s multi-year contract with the
      U.S. Army Corps of Engineers. This reduction in Army Corps work reflects delays
      in shipments from several ongoing remediation projects pending appropriation
      of
      funds for the next federal fiscal year. Management anticipates shipments from
      these ongoing projects to resume during the fourth quarter of 2006.





**Results
      of Operations**





The
      following table presents, for the periods indicated, the operating costs as
      a
      percentage of revenues in the consolidated income statement:





16








Three
                Months Ended
            
            Six
                Months Ended($
                in 000’s)
            
            June
                30, 2006
            
            June
                30, 2005
            
            June
                30, 2006
            
            June
                30, 2005$
            
            %
            
            $
            
            %
            
            $
            
            %
            
            $
            
            %Revenue
            
            
            29,924
            
            
            
            
            
            18,779
            
            
            
            
            
            51,446
            
            
            
            
            
            31,333Transportation
                costs
            
            
            11,459
            
            
            38.3
            %
            
            3,823
            
            
            20.4
            %
            
            16,516
            
            
            32.1
            %
            
            7,036
            
            
            22.5
            %Other
                direct operating costs
            
            
            7,940
            
            
            26.5
            %
            
            5,736
            
            
            30.5
            %
            
            14,695
            
            
            28.6
            %
            
            11,236
            
            
            35.8
            %Gross
                profit
            
            
            10,525
            
            
            35.2
            %
            
            9,220
            
            
            49.1
            %
            
            20,235
            
            
            39.3
            %
            
            13,061
            
            
            41.7
            %SG&A
            
            
            3,061
            
            
            10.2
            %
            
            3,358
            
            
            17.9
            %
            
            6,544
            
            
            12.7
            %
            
            5,872
            
            
            18.7
            %Business
                interruption insurance claim
            
            
            --
            
            
            0.0
            %
            
            --
            
            
            0.0
            %
            
            --
            
            
            0.0
            %
            
            (41
            )
            
            -0.1
            %Operating
                income
            
            
            7,464
            
            
            24.9
            %
            
            5,862
            
            
            31.2
            %
            
            13,691
            
            
            26.6
            %
            
            7,230
            
            
            23.1
            %Interest
                income
            
            
            205
            
            
            0.7
            %
            
            93
            
            
            0.5
            %
            
            393
            
            
            0.8
            %
            
            178
            
            
            0.6
            %Interest
                expense
            
            
            1
            
            
            0.0
            %
            
            48
            
            
            0.3
            %
            
            2
            
            
            0.0
            %
            
            95
            
            
            0.3
            %Other
                income
            
            
            174
            
            
            0.6
            %
            
            22
            
            
            0.1
            %
            
            458
            
            
            0.9
            %
            
            39
            
            
            0.1
            %Net
                income before income taxes
            
            
            7,842
            
            
            26.2
            %
            
            5,929
            
            
            31.6
            %
            
            14,540
            
            
            28.3
            %
            
            7,352
            
            
            23.5
            %Income
                tax expense
            
            
            2,915
            
            
            9.7
            %
            
            2,223
            
            
            11.8
            %
            
            5,434
            
            
            10.6
            %
            
            2,790
            
            
            8.9
            %Net
                income
            
            
            4,927
            
            
            16.5
            %
            
            3,706
            
            
            19.7
            %
            
            9,106
            
            
            17.7
            %
            
            4,562
            
            
            14.6
            %








**Comparison
      of Three Months Ended June 30, 2006 and 2005**





**Revenue** ****




For
      the
      three months ended June 30, 2006, the Company reported consolidated revenue
      of
      $29,924,000 a 59% increase over the $18,779,000 reported for the same period
      in
      2005. All four waste disposal facilities generated higher revenue during the
      second quarter of 2006 and volumes increased 2% over the same quarter last
      year.
      The Company also achieved a 6% increase in average selling price (“ASP”) for its
      treatment and disposal services. The increase in waste volume reflected an
      increase in both project (or “Event”) work and base business during the quarter.
      The increase in ASP reflects an increased percentage of revenue from higher
      priced niche and treatment services. Also contributing to the quarterly revenue
      growth was a 200% increase in transportation services provided over the same
      quarter last year. The following customers represented 10% or more of revenue
      during the three months ended June 30:




***Customer***
            
            2006
            
            2005Honeywell
                International
            
            
            43
            %
            
            --U.S.
                Army Corps of Engineers
            
            
            12
            %
            
            37





Management
      expects a substantial reduction in Army Corps work during the third quarter
      of
      2006 on several ongoing remediation projects pending appropriation of funds
      for
      the next federal fiscal year. Management anticipates shipments from these
      ongoing projects to resume during the fourth quarter.





Operating
      Disposal Facilities





Revenue
      at the Richland, Washington LLRW disposal facility increased 109% for the three
      months ended June 30, 2006 from the same period in 2005. This increase was
      due
      to a large non rate-regulated project which is expected to be completed in
      August, 2006. For 2006, the Washington Utilities and Transportation Commission
      has approved a revenue requirement of $5,629,000 for the Richland facility’s
      rate-regulated low-level radioactive waste interstate compact business, of
      which
      $1,232,000 was recorded in the three months ended June 30, 2006. Management
      currently expects the Richland facility to reach its approved 2006 revenue
      requirement.





At
      the
      Grand View, Idaho disposal facility a 222% increase in transportation services
      offset flat volumes and a 4% decrease in ASP to produce a 65% increase in
      revenue over the same quarter last year. Management expects the U.S. Army Corps
      of Engineers to ship minimal quantities of waste during the third quarter of
      2006, and Honeywell International to ship larger quantities of waste to the
      facility during the quarter.





At
      the
      Beatty, Nevada hazardous treatment and disposal facility, revenue increased
      37%
      for the three months ended June 30, 2006 from the same period in 2005. The
      increased revenue reflects flat waste volumes offset by a more favorable service
      mix, as evidenced by a 36% increase in ASP. The flat volume was due to decreased
      waste shipments from non-hazardous industrial waste projects. Higher ASP
      reflected expanded treatment services, including receipt of corrosive wastes,
      allowed by the facility’s five year hazardous waste permit renewal which took
      effect in April 2005.





17





At
      the
      Robstown, Texas hazardous treatment and disposal facility, revenue increased
      24%
      for the three months ended June 30, 2006 over the same period in 2005. This
      increase reflected a 3% ASP reduction for treated wastes offset by a 26%
      increase in waste volumes received at the site compared to the second quarter
      of
      2005.





**Direct
      Operating Costs**





For
      the
      three months ended June 30, 2006, consolidated direct operating costs increased
      103% to $19,399,000 compared to $9,559,000 for the same period in 2005. This
      primarily reflects increased transportation costs, which increased $7,636,000
      or
      80% of the increase in direct operating costs quarter to quarter. Relative
      to
      revenue, direct operating costs increased to 65% of revenue in the second
      quarter of 2006 up from 51% for the same quarter last year.





Operating
      Disposal Facilities





Direct
      costs at all four of the operating disposal facilities increased from the same
      quarter last year. This increase was largely driven by an increase in direct
      costs at the Grand View, Idaho facility of $9,018,000 due to increased wages
      and
      consumption of waste treatment additives as well as increased transportation
      costs of $7,447,000 to transport higher waste volumes. Higher fuel charges
      continue to push costs higher.





Non
      Operating Disposal Facilities





Non
      Operating Disposal Facilities incur current period expenses for the accretion
      of
      engineering, laboratory and other contractor expenses and labor costs required
      to meet the Company’s obligations subsequent to operational use. For the three
      months ended June 30, 2006 and 2005, the Company reported $1,000 and $12,000
      of
      expenses on formerly proposed development projects, and $92,000 and $91,000
      of
      costs in 2006 and 2005 to remediate or close facilities subsequent to
      use.





**Gross
      Profit**





Significantly
      higher quarterly revenue contributed to a 14% increase in gross profit, which
      was $10,525,000 for the quarter compared with a gross profit of $9,220,000
      for
      the same quarter last year. Increased direct costs at all four disposal
      facilities were more than offset by the higher revenue, producing an increased
      gross profit but a decreased gross margin. This is consistent with the Company’s
      strategy to increase gross profit through the bundling of rail transportation
      and disposal services. Gross margin decreased to 35% of revenue compared to
      49%
      of revenue in 2005. Large remediation projects are expected to increase earnings
      while simultaneously decreasing gross margins when low margin transportation
      services are bundled with the Company’s core treatment and disposal services.
      The Company seeks to maximize contribution margin and gross profit by
      controlling direct costs and increasing waste volumes.





**Selling,
      General and Administrative Costs (SG&A)**





For
      the
      three months ended June 30, 2006, the Company reported SG&A of $3,061,000
      (10% of revenue), a 9% decrease from the $3,358,000 (18% of revenue) for the
      same three months of 2005.




Operating
      Disposal Facilities




During
      the quarter ended June 30, 2006, Operating Disposal Facilities SG&A
      increased $26,000 from the same three months of 2005.





18




Corporate





During
      the quarter ended June 30, 2006, Corporate SG&A decreased $322,000. This
      decrease reflects the reduction in the 2003 Management Incentive Plan second
      quarter accrual of $196,000 and $541,000 for 2006 and 2005, respectively. The
      Company did not accrue any Management Incentive Plan obligation in the first
      quarter of 2005 but caught up the accrual due to above budget second quarter
      2005 operating income. As of June 30, 2006 the 2003 MIP has been fully accrued
      for 2006.





Non
      Operating Disposal Facilities





Non
      Operating Disposal Facilities incur primarily legal costs to recover the
      Company’s investment in formerly proposed disposal site development projects in
      Ward Valley, California and Butte, Nebraska. For the three months ended June
      30,
      2006 and 2005, the Company reported $1,000 and $2,000 of such SG&A expenses.





**Comparison
      of Six Months Ended June 30, 2006 and 2005**





**Revenue** ****




For
      the
      six months ended June 30, 2006, the Company reported consolidated revenue of
      $51,446,000, a 64% increase over the $31,333,000 reported for the same period
      in
      2005. All four disposal facilities generated higher revenue during the first
      half of 2006. The
      higher revenue resulted from both increased waste volumes, and higher average
      selling price (“ASP”) for the Company’s treatment and disposal services. At its
      three hazardous waste disposal facilities, volumes increased 18% over the same
      six months last year. The increase in waste volume reflects an increase in
      project (or “Event”) work performed during the period, primarily from the
      Honeywell contract. The 7% increase in year-to-date 2006 ASP reflected a more
      favorable mix of niche business. The balance of the increase in consolidated
      revenue resulted from increased transportation revenue as the Company continued
      to employ its strategy of selective bundling of disposal with transportation
      services to win targeted contracts.




The
      following customers represented 10% or more of revenue during the six months
      ended June 30:




***Customer***
            
            2006
            
            2005Honeywell
                International
            
            
            28
            %
            
            --U.S.
                Army Corps of Engineers
            
            
            17
            %
            
            30
            %





Management
      expects a reduction in Army Corps work during the third quarter of 2006 pending
      appropriation of funds for the next federal fiscal year. Management anticipates
      shipments from several ongoing Army Corps projects to resume during the fourth
      quarter.





Operating
      Disposal Facilities





Revenue
      at the Richland, Washington LLRW disposal facility increased 117% for the six
      months ended June 30, 2006 over the same period in 2005. This increase was
      due
      to a large non rate-regulated project expected to end in August 2006. The
      Washington Utilities and Transportation Commission has approved a 2005 revenue
      requirement of $5,629,000 for the Richland facility’s rate-regulated low-level
      radioactive waste interstate compact business, of which $2,834,000 was
      recognized during the first six months of 2006. Management currently expects
      the
      Richland facility to reach its approved 2006 revenue requirement.





At
      the
      Grand View, Idaho facility, 19% higher waste volumes, 5% lower disposal ASPs,
      and a 147% increase in transportation services produced a 64% increase in
      revenue over the same six months last year.





Revenue
      at the Beatty, Nevada hazardous treatment and disposal facility increased 38%
      for the six months ended June 30, 2006 from the same period in 2005. This
      increased reflects a 33% increase in ASP and a 4% increase in disposal volume.
      During the second quarter of 2005, the facility received regulatory approval
      to
      treat corrosive wastes which has contributed to the increase in
      ASP.




19




Revenue
      at the Robstown, Texas hazardous treatment and disposal facility increased
      59%
      for the six months ended June 30, 2006 over the same period in 2005. This
      increased reflects a more favorable mix of wastes received at the site,
      resulting in a 20% increase in ASP, and a 32% increase in disposal volume.
      A
      fire in the permitted containment building on July 1, 2004 continued to limit
      the scope of treatment services offered until a new permitted containment
      building was placed in service in August 2005.





**Direct
      Operating Costs**





For
      the
      six months ended June 30, 2006, consolidated direct operating costs increased
      71% to $31,211,000 (61% of revenue) compared to $18,272,000 (58% of revenue)
      for
      the same period in 2005. This primarily reflected increased transportation
      costs
      and waste volumes. Direct operating costs increased slightly relative to
      revenue, reflecting an increase in low margin transportation services that
      were
      bundled with disposal services. The Company’s transportation assets were fully
      utilized at the end of the second quarter of 2005, an improvement over the
      first
      quarter of 2005 when ongoing project shipment delays led to substantial
      underutilization of the Company’s leased railcar fleet. Use of Company-owned
      railcars purchased in late 2005 and early 2006 also reduced costs based on
      their
      lower monthly expense relative to leased railcars.





Operating
      Disposal Facilities





Direct
      costs at all four disposal facilities increased from the same six months last
      year. The increase in consolidated direct operating costs for the Company was
      largely driven by an increase in direct costs at the Grand View, Idaho facility
      of $11,283,000. This increase was due to increased waste volumes and related
      transportation costs. Approximately $10,042,000 or 89% of the increase in direct
      operating costs at Grand View was for costs incurred to transport waste to
      Idaho
      by rail. During the six months ended June 30, 2006, the Company continued to
      receive a higher percentage of waste requiring treatment, resulting in higher
      additive costs. Higher fuel charges also increased transportation costs over
      the
      first six months of 2005.





Non
      Operating Disposal Facilities





Non
      Operating Disposal Facilities incur current period expenses for the accretion
      of
      engineering, laboratory and other contractor expenses and labor costs required
      to meet the Company’s obligations subsequent to operational use. For the six
      months ended June 30, 2006 and 2005, the Company reported $10,000 and $26,000
      in
      expenses on proposed development projects, and $174,000 and $183,000 in costs
      to
      remediate and/or monitor such facilities.





**Gross
      Profit**





Significantly
      higher revenue allowed the Company to generate a 55% increase in gross profit,
      pushing gross profit to $20,235,000 compared with a gross profit of $13,061,000
      for the first six months last year. Increased disposal revenue at all operating
      hazardous waste disposal facilities produced higher earnings due to a more
      favorable service mix. This combined with the operating leverage benefits
      produced by high volume throughput. Gross margin decreased to 39% of revenue
      from 42% of revenue due to increased transportation services provided during
      2006.





**Selling,
      General and Administrative Costs (SG&A)**





For
      the
      six months ended June 30, 2006, the Company reported SG&A of $6,544,000 (13%
      of revenue), an 11% increase from the $5,872,000 (19% of revenue) for the same
      six months of 2005. The increase in SG&A primarily resulted from increases
      in salaries, bonuses and sales commissions as the Company has hired additional
      personnel and as sales and as operating income targets were met earlier in
      the
      year.




Operating
      Disposal Facilities




During
      the six months ended June 30, 2006, Operating Disposal Facilities SG&A
      increased $249,000 to $2,613,000 from $2,364,000 for the six months ended June
      30, 2005. The increase in Operating Disposal Facilities SG&A is primarily
      due to additional costs for personnel hired to manage increased waste
      volumes.





20




Corporate




During
      the six months ended June 30, 2006, Corporate SG&A increased $429,000. The
      increase in SG&A is from increases from a variety of expenses, primarily
      compensation and director fees, which management expects to decrease in the
      second half of 2006.




The
      Company first complied with the internal control requirements of Section 404
      of
      the Corporate Reform Act of 2002 (Sarbanes-Oxley) during the second quarter
      of
      2005 after investing significant time and resources and retaining independent
      contractors to assist. While the Company continues to devote resources to this
      effort, the time and cost required to maintain Section 404 compliance is
      expected to should decrease from 2005.





Non
      Operating Disposal Facilities





Non
      Operating Disposal Facilities primarily reflect legal costs on past efforts
      to
      recover the Company’s investment in the formerly proposed Butte, Nebraska and
      Ward Valley, California projects. For the six months ended June 30, 2006 and
      2005, the Company reported $1,000 and $7,000 of SG&A expenses, respectively,
      at Non Operating Disposal Facilities. With these recovery efforts completed,
      any
      future expenses are expected to be minimal.





**Comparison
      of Three and Six Months Ended June 30, 2006 and 2005**




**Interest
      Income**





For
      the
      three and six months ended June 30, 2006, the Company earned $205,000 and
      $393,000 of interest income, an increase from $93,000 and $178,000 in the same
      periods of 2005 due to higher cash balances and higher interest rates available
      on short term investments. Interest income is earnings on cash balances,
      short-term investments, and notes receivable for which income is a function
      of
      prevailing market rates and balances. Based on current interest rates, the
      Company anticipates approximately $60,000 a month of interest income during
      2006.





**Interest
      Expense**





For
      the
      three and six months ended June 30, 2006, the Company reported interest expense
      of $1,000 and $2,000, a decrease from $48,000 and $95,000 in 2005. The primary
      cause of this decrease was the payoff of the term loan with Wells Fargo Bank
      during December 2005. At June 30, 2006, the line of credit had a zero balance
      and the only interest bearing debt was incurred on a capital lease for office
      equipment expected to be retired by year end.





**Other
      Income (Loss)**





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





Three
                Months Ended June 30,
            
            Six
                Months Ended June 30,2006
            
            2005
            
            2006
            
            2005Reimbursed
                legal fees
            
            
            --
            
            
            --
            
            
            299
            
            
            --Gain
                on sale or rent of property rights
            
            
            174
            
            
            22
            
            
            166
            
            
            39Other
                miscellaneous income, net
            
            
            --
            
            
            --
            
            
            (7
            )
            
            --Total
                other income
            
            $
            174
            
            $
            22
            
            $
            458
            
            $
            39





**Income
      Taxes**





The
      components of the income tax provision were as follows for the periods ended
      June 30 (in thousands):





Three
                Months Ended
            
            Six
                Months Ended2006
            
            2005
            
            2006
            
            2005State
                income tax expense
            
            $
            300
            
            $
            167
            
            $
            409
            
            $
            210Federal
                income tax expense
            
            
            2,695
            
            
            2,056
            
            
            5,025
            
            
            2,580Income
                tax expense
            
            $
            2,915
            
            $
            2,223
            
            $
            5,434
            
            $
            2,790




21





The
      tax
      effects of temporary differences between income for financial reporting and
      income taxes give rise to deferred tax assets and liabilities. 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.





The
      net
      operating loss carry forward at June 30, 2006 was approximately $5,000,000
      and
      expires on various dates between 2019 and 2023. Utilization of the net operating
      loss carry forwards results in an income tax expense of approximately 6% of
      pretax income expected to be paid in cash. The approximately 35% income tax
      rate
      will be offset against the remaining available net operating loss carry
      forwards, which are currently projected to be fully utilized during the third
      or
      fourth quarter of 2006, at which time the full 37% effective tax rate will
      be
      paid in cash.





On
      July
      20, 2005, a registration statement on Form S-3 was filed with the Securities
      and
      Exchange Commission allowing for two Directors of the Company to sell their
      shares without certain restrictions (one of the two Directors has since left
      the
      Board). Section 382 of the Internal Revenue Code imposes an annual limitation
      on
      the amount of net operating loss carryforwards that may be used to offset
      taxable income when a corporation has undergone significant changes in its
      ownership. Should a change of control occur due to the two Directors selling
      their shares, the Company may be subject to an annual limitation upon the usage
      of the net operating losses





The
      Company will continue to assess the deferred tax asset for utilization as needed
      but at least annually.





**Seasonal
      Effects**





Operating
      revenues are generally lower in the winter months than warmer months when more
      short duration, one-time remediation projects tend to occur. While both disposal
      and processing revenue are generally more affected by market conditions than
      seasonality, clean-up project weather delays adversely impacted the first
      quarter of 2005.





**CAPITAL
      RESOURCES AND LIQUIDITY**





At
      June
      30, 2006, cash and short term investments totaled $10,817,000, a decrease of
      $9,038,000 from December 31, 2005. The decrease in cash reflects the Company’s
      capital expenditures, dividend payments, the restriction of cash in trust
      accounts, and growth in accounts receivable offset by earnings.





The
      Company's days sales outstanding (“DSO”) increased to 67 days at June 30, 2006,
      compared to 53 days at December 31, 2005. An increase was expected due to the
      60
      day payment terms set forth in the Company’s contract with Honeywell
      International, Inc.





As
      of
      June 30, 2006, the Company’s liquidity, as measured by the current ratio, was
      2.8 to 1.0. The debt to equity ratio, or total liabilities divided by
      stockholders equity, decreased to 0.4:1.0 at June 30, 2006. The Company expects
      the current ratio to decrease during 2006 due to additional capital
      expenditures, dividend payments, increased accounts payable from the Honeywell
      project, and expected usage of the majority of the current portion of its
      deferred tax asset.





**Sources
      of Cash**





On
      December 13, 2005, the Company increased its line of credit with Wells Fargo
      Bank to a maximum amount available of $15,000,000 with a maturity date of June
      15, 2008. The line of credit is unsecured. Monthly interest only payments are
      required based on a pricing grid, under which the interest rate decreases or
      increases based on the Company’s ratio of funded debt to earnings before
      interest, taxes, depreciation and amortization. The Company can elect to borrow
      monies utilizing the Prime Rate or the offshore London Inter-Bank Offering
      Rate
      (“LIBOR”) plus an applicable spread.





22




Company
      operations produced an average of almost $5,000,000 a quarter in cash flow
      over
      the past three years. Management expects 2006 quarterly cash flow from
      operations to be higher, on average. The $10,817,000 in cash and short term
      investments at June 30, 2006 was comprised of short term investments which
      were
      not required for operations of $9,205,000, cash immediately available for
      operations of $4,157,000, and a net checks outstanding amount of
      ($2,545,000).





**Uses
      of Cash**




Management
      currently expects capital spending of approximately $18,000,000 in 2006. Major
      projects include more railcars, new track and rail-to-truck transload facilities
      and related heavy equipment in Texas and Idaho, and a new treatment building
      in
      Nevada. While the majority of 2006 capital expenditures have been completed,
      on
      June 23, 2006, the Company committed to purchase up to an additional 84 gondola
      railcars for approximately $6,400,000 for delivery in the third quarter of
      2006.





On
      April
      3, 2006, the Company deposited $4.5 million into interest bearing trust accounts
      to guarantee its non-operating disposal site closure and post-closure
      obligations. This replaced the insurance policy which previously provided
      financial assurance for those sites. The insurance policy remains in effect
      through December 19, 2008, at a reduced premium, for financial assurance
      obligations at operating facilities.





The
      Company paid $0.15 quarterly dividends on January 13, 2006, April 21, 2006,
      and
      July 21, 2006 out of cash on hand and currently intends to pay an additional
      $0.15 quarterly dividend on October 20, 2006 subject to certain conditions
      including continued compliance with bank covenants. The line of credit agreement
      allows capital stock dividends as long as an event of default has not occurred,
      and will not occur as a result of the dividend.





The
      Company believes that cash on hand and cash flow from operations, augmented
      if
      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.





The
      Company has minimal interest rate risk on investments or other assets due to
      the
      Company’s preservation of capital approach to investments. At June 30, 2006,
      approximately $10,817,000 was held in cash or short term investments at terms
      ranging from overnight to six months. Together, these items earned interest
      at
      approximately 4% and comprised 11% of assets.





**Item
                4.**
            **Controls
                and Procedures.**





(a)
      As of
      the end of the period covered by this quarterly report, Company management,
      under the direction of the Chief Executive Officer and Chief Accounting 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 Accounting 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 June 30, 2006, there were no
      changes to internal controls or in other factors that could materially affect
      these internal controls.




23


**Part
        II OTHER INFORMATION.**
 **Item
                  1.**
              **Legal
                  Proceedings.**
  The
        Company is not presently involved in any material
        litigation.
  **Item****2.**
              **Unregistered
                  Sales of Equity Securities and Use of
                  Proceeds.**





None.





**Item
                3.**
            **Defaults
                Upon Senior Securities.**





None.





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





The
      Company held its Annual Meeting of Stockholders on May 25, 2006. On the record
      date of March 31, 2006 there were 18,064,116 shares of common stock issued
      and
      outstanding. At the Annual Meeting the Company’s seven nominees for Director
      were all elected to the Board, the selection of Moss Adams LLP as the Company’s
      independent auditor was ratified, and the 2006 Restricted Stock Plan was
      approved. The voting on the three items was as follows:





Nominee
                for Director
            For
            WithheldRoy
                C. Eliff
            17,061,942
            95,612Edward
                F. Heil
            13,443,374
            3,714,180Kenneth
                C. Leung
            15,727,469
            1,430,085Richard
                Riazzi
            16,836,056
            321,498Stephen
                A. Romano
            16,544,358
            613,196Jimmy
                D. Ross
            16,835,381
            322,173Richard
                T. Swope
            16,870,658
            286,896Ratification
                of Moss Adams LLPFor
            17,118,436Against
            5,817Abstain
            33,300Approval
                of 2006 Restricted Stock PlanFor
            12,148,545Against
            195,781Abstain
            72,178Broker
                Non-Vote
            4,741,050





Following
      its annual meeting of stockholders on May 25, 2006 in Chicago, Illinois,
      American Ecology Corporation’s Board of Directors met and elected Kenneth C.
      Leung to serve as chairman of the newly elected Board and appointed John W.
      Poling to the Board of Directors.





**Item
              5.**
            **Other
                Information.**




None.





24





**Item
                6.**
            **Exhibits.**





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





Exhibit
                No.
            Description31.1
            Certifications
                of June 30, 2006 Form 10-Q by Chief Executive Officer dated July
                28,
                200631.2
            Certifications
                of June 30, 2006 Form 10-Q by Chief Accounting Officer dated July
                28,
                200632.1
            Certifications
                of June 30, 2006 Form 10-Q by Chief Executive Officer dated July
                28,
                200632.2
            Certifications
                of June 30, 2006 Form 10-Q by Chief Accounting Officer dated July
                28,
                2006





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:
                July 28, 2006
            By:/s/
                Stephen A. RomanoStephen
                A. RomanoPresident,
                Chief Executive Officer and Chief Operating OfficerDate:
                July 28, 2006
            By:/s/
                Michael J. GilbergMichael
                J. GilbergVice
                President and Controller, ChiefAccounting
                Officer, Secretary and Treasurer




25





**EXHIBIT
      INDEX**




Exhibit
            Description31.1
            Certifications
                of June 30, 2006 Form 10-Q by Chief Executive Officer dated July
                28,
                200631.2
            Certifications
                of June 30, 2006 Form 10-Q by Chief Accounting Officer dated July
                28,
                200632.1
            Certifications
                of June 30, 2006 Form 10-Q by Chief Executive Officer dated July
                28,
                200632.2
            Certifications
                of June 30, 2006 Form 10-Q by Chief Accounting Officer dated July
                28,
                2006






26