Clean Harbors Announces Revision to Pay-for-Oil Structure in Safety-Kleen Re-refining Business

Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading provider ofenvironmental, energy and industrial services throughout North America, todayannounced that its Safety-Kleen subsidiary is revising its rate structure forits purchase of used engine and industrial oils. Effective immediately,Safety-Kleen is eliminating its current pay-for-oil (PFO) program andreplacing it with either a Zero-Pay or Charge-for-Oil rate structure.Jerry Correll, Safety-Kleen President, said, “Given the adverse conditions inthe base oil marketplace and current energy market dynamics, we are takingproactive action to further reduce costs associated with the procurement,transportation and processing of used oil. Our new Zero-Pay and Charge-for-Oilpolicy will apply to all U.S. and Canadian used oil generators thatSafety-Kleen services. As the largest collector of used oil in North Americaat more than 200 million gallons annually, Safety-Kleen is taking a leadershipapproach to the market and realigning our pricing structure to levels thatmore accurately reflect the current environment.”“Margins in Clean Harbors' Oil Re-refining and Recycling segment have comeunder substantial pressure since early 2013,” Correll said. “Our goal is toprotect and expand our margins, and ultimately return profitability in thissegment to more historical levels. The actions we are announcing today arenecessary to achieve those goals.”