ITEM 8.01 Other Events

On December 19, 2022, the 11th Appellate District Court in Trumbull County, Ohio (the "Court") denied AWMS Water Solutions, LLC's (the "Company") writ of mandamus action to commence appropriation proceedings, that resulted from the suspension order of the Company's saltwater injection well. AWMS Water Solutions, LLC is a wholly owned subsidiary of Avalon Holdings Corporation.

As previously reported, in March 2019, the Company received notice that the Court issued summary judgment in favor of the Ohio Department of Natural Resources ("ODNR") in the writ of mandamus action. The decision was appealed to the Supreme Court of Ohio in April 2019. Oral arguments in the case occurred in April 2020. In September 2020, the Supreme Court of Ohio ruled in favor of the Company, reversed the summary judgement in favor of the ODNR, and remanded the case back to the Court for a trial on the merits. The trial occurred in September and October 2021.

The Court determined, in the December 19, 2022 ruling, that the Company failed to establish a cognizable property interest that would necessitate a just compensation / takings analysis, and accordingly denied the Company's petition for a writ of mandamus. The Company is currently reviewing the Court's decision and will determine the best course of action on how to proceed in the matter.


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