Recology Inc. has terminated its contract with San Francisco to ship waste by rail to Yuba County, Calif.

San Francisco-based Recology said in a news release the termination of the Green Rail landfill contract with the city will allow San Francisco to participate in a broad environmental review of the project. Recology also expects that terminating the contract will end litigation “by an unsuccessful bidder and others that threatened to interfere with the Yuba County review.” Yuba County is north of Sacramento.

The waste-by-rail project remains San Francisco’s preferred proposal for the disposal of its municipal solid waste (MSW) once it exhausts its current capacity, Recology said.

“Recology, San Francisco’s longstanding partner, is working with the city to provide the needed time and discretion to fully participate in the CEQA [California Environmental Quality Act] process,” says Recology spokesman Adam Alberti. “Recology looks forward to moving ahead with a new landfill agreement after the project has been fully vetted and, as we expect, environmentally cleared.”