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Pacific Lumber Threatens Bankruptcy, Environmental Destruction

by Remedy
Pacific Lumber threatens bankruptcy over logging restrictions.
palco_proud_2.jpg
Freshwater, CA - Pacific Lumber Company (PL) is threatening bankruptcy to pressure California governor Arnold Schwarzenegger to allow logging in areas already chronically damaged by years of over cutting.

According to the LA Times, Maxxam CEO Charles Hurwitz, who helped orchestrate the hostile corporate take-over of PL in 1985, took a rare visit to California for a private meeting on January 11 with Gov. Schwarzenegger to promote logging plans PL says would equate to about 750 acres of clear-cuts in the already ravaged Freshwater and Elk River Watersheds.

The State Water Board is withholding a series of Waste Discharge permits after PL failed to turn over pertinent data to the Board, though logging on four Timber Harvest Plans (including one with ancient, irreplaceable redwoods) will go forward. Complying with state regulatory agencies has long been a bane of Maxxam/PL, as seen by their accumulation of at least 325 violations of conservations laws between March 1999 and May 2004.

Dozens of residents in the beleaguered watersheds are suing Maxxam/Pacific Lumber for damages following an increase in logging that led to multi-annual flooding events which continue to worsen. PL also faces a lawsuit by the Humboldt County District Attorney, who charges the corporation submitted false landslide data during the Headwaters negotiations that allowed an inflated rate of cut.

Chief PL scientist [sic] Jeff Barrett has said the proposed clear-cuts will leave the watersheds in better condition than they are now. Mr. Barrett, meet Mr. Orwell.

As PL threatens to unravel the stringent “safeguards” they say were put in place after the contentious Headwaters Deal, one has to wonder what the heck they are talking about. Safeguards? Clear-cuts, landslides, the eradication of every tree over 40 years old and lots of residents buried in silt is not what most of us call “safeguards.”

Out of one side of their corporate mouth, Maxxam/PL claim to be environmental stewards. But out of the other side they say “we’re running out of logs.” A debt-driven rate of cut doesn't lead to sustainability, but Charles Hurwitz already knew that. As he said so succinctly in a deposition years ago, “the function of PL is to throw off cash flow.”

Environmental stewardship doesn’t enter into that equation.
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by luna moth
Would anyone in the Bay/Valley be interested in protesting outside the West Sac lumber store that advertises redwood sales and sells Palco products?

They are located on West Capitol Ave in West Sac past the intersection with Harbor Blvd (the road that leads directly to the Port of Sacramento, outbound Palco products by sea)..
by big
No. I don't think anybody is. Now go away.
by LOCAL going LOCO
Torch that goddamn place! Make sure NO human beings get hurt.If you really want to fuck shit up.....Find yourself a CO2 powertank that can be carried on your back and some pressurized air tools(jigsaw,drills,jaws of life,rammers,spreader,etc.)and anything that can be powered by compressed air.Do you follow me? Or if you really get the big kickdown of the green energy...you can also buy pressurized air cannons(used in fire&water rescue)
fill it and it can launch up to 400 ft. FUCK YOU helicopter!Peace and Quiet..finally!check it out-pressurized ramps to throw off trucks of to the side of the road!Fuck'em! CO2 is the way to go! Pressurized water can keep any violent law enforcement officer from pepper spraying you!It's not fun being cold and wet in the woods. Help keep Humboldt County GREEN!
"PUT THE PRESSURE ON MAXXAM/PL" so if you are "just wondering" fuck you,PAL! Keep it real,people! Love and Rage
by f@rmer
Plant some trees. Then wait.

Seriously, if you can't manage your own private holdings of timber sustainably and thoughtfully, what business do you have on our public lands at all.
by LA Times
http://www.latimes.com/news/opinion/editorials/la-ed-forest26jan26,1,257841.story?coll=la-news-comment-editorials

EDITORIAL

Loggers' Sneak Play

January 26, 2005

Two questions: Why did Pacific Lumber Co. sign on to a deal with
California six years ago if it was not going to be able to honor the
agreement? And is it too late to get our $480 million back?

For that money, the state bought 7,000 acres of old-growth redwoods in the
Headwaters area of Humboldt County, along with the logging company's
agreement to follow strict conservation rules on 200,000 acres it kept. Now
the company is demanding to log beyond what the deal allows in flood-prone
watersheds. Pacific Lumber warns that if not given its way it will go
bankrupt, laying off hundreds and, it says, leaving all environmental
agreements dead. "We are running out of logs," one company exec said. That
does happen when logging isn't accompanied by a good land-management
plan. If there had been a plan, it would have forecast this problem. Which
makes the company either incompetent or dissembling in accepting the
half-billion-dollar handout.

Pacific Lumber has a history of hardball tactics, and the state will have to
hang tough. California didn't pay all that money for a kiss-off six years later.
Last May, Pacific Lumber's chief scientist said the company signed the 1999
agreement only because it retained the option to ease restrictions if research
showed no environmental harm would result. That implies the company was
looking at loosening the rules from the start.

Pacific Lumber says its latest research shows it could indeed do more
logging closer to streams without environmental damage. State scientists
should take a magnifying glass to that study. The company faces a
$250-million lawsuit from the Humboldt County district attorney, alleging
that during Headwaters negotiations, Pacific Lumber submitted false
information about the danger of landslides near streams as a result of its
logging. (The company bankrolled an unsuccessful recall campaign against
the district attorney.)

The first thing the state must do is figure out its legal position. Bankruptcy
doesn't necessarily mean that anyone taking control of Pacific Lumber's
holdings is exempt from the agreements.

The future of logging in the region is uncertain in any case. Cheap lumber
from Russia presents formidable competition to the U.S. timber industry. The
northern coastal economy is increasingly driven by tourism, not logging.

Something to watch: The undersecretary of the state Environmental
Protection Agency, James Branham, is a former Pacific Lumber executive
who, in a previous post in state government, helped broker the Headwaters
deal. Californians may get to see up close how well or ill the revolving door
of public service/private industry serves the public's purposes.

Copyright 2005 Los Angeles Times
by Psycho (http://www.WorldJumper@msnhotmail.com">http://www.WorldJumper [at] msnhotmail.com)
I'm down with Local's Idea! You people should not bring up personal or political problems that occur within an non-profit Environmental movement.Doing so creates a negative public image and can make people that read your article not want to get involved or help or be a part in your community or network for your Region.
by Dershowitz
Why do environmentalists always harp on Hurwitz and accuse him of being greedy? Isn't that just the same anti-semitic stereotyping that the left has been engaging in for years? Isn't the 60th anniversary of the liberation of Auschwitz reminder of where this can lead?
by Wildcat
The harvests in Elk River are attached to millions of dollars of road abandonment and upgrading. Without the value of the timber to offset the cost of the road work, no one can afford to do it. Thus, the harvests proposed will leave the watersheds in a better state hydrologically. It's not your fault you are ignorane Jenny. But I do blame you for being so willing to show off such ignorance.
Meanwhile Humboldt crossings continue to deliver sediment is measures almost hyperbolic in comparison to what delivers from a harvest unit, even a clear cut.
by aaron
this is a wierd thread, i can't make sense out of it.
by gigi
well...we can always build walls around our homes to keep the water out!
Maybe we can start growing rice in those flooded fields.The Emerald Triangle would be the richest counties in California if they start growing Marijuana and everybody would be employed! Wait a minute! Charles Hurwitz can always sell off that 25 miliion dollar machine he just got! I can't belive he wants to file bankruptcy if he does'nt get the last of Timber Harvest Plans. How much money do you have Charlie?This is the guy that's gonna fuckover his employees.. not environmentalists! This is the same guy that was involved in the "Savings and Loans" scandal. Sorry Charlie..not this time!
by Jimmy G
The lumber store in West Sacramento has been there for a long time . I have seen Palco lumber there but they never bought from Palco until they could get 2nd grwoth lumber from the smaller logs. Leave them alone
by Jeff Hoffman
There's no excuse for buying from this evil company. People should learn to do without dead tree products, and should start by boycotting any business that sells old growth, wood from clearcuts, or wood from really bad companies like PALCO or Sierra Pacific.
by Zanymuse
So, we should not buy wood or wood products that are harvested by large companies that own their timber lands. And we should not buy wood that is clear cut or over a certain diameter or under a certain size, or over a certain age or.... So what does that mean? buy imports from Russia, Canada, Brazil... Sure! Lets continue to push the logging to them. It will still be trees cut but not in my back yard. Their families will eat while ours starve but that's ok, we are all a bunch of overweight Americans anyway. And don't worry, they will gladly strip their forests for you to save ours.

It is time to back up and think about some compromises that can actually help rather than all this anti corporation, anti everything garbage of tree hugging fools. It is time to go to work on creating answers and solutions and quit wasting time trying to save the world one tree at a time.

As For the Headwaters agreement and the stricter guidlines. Why would the company want to get out from under them? Maybe because the State has failed to keep it's end of the agreement? Maybe because every logging plan, regardless of where or how is presented is automatically challanged by "environmentalists" (who are in reality preservationists) so that the cost of doing business continues to skyrocket.

A true environmentalist knows that our resources must be used and that they must be used in such a way as to create jobs and homes for people while also protecting and using them wisely. The best thing you could do for this planet is to back away from the stop the tree killers attitude and start looking at ways to fullfill the demand for product that would be both economically viable and functionable. You want to stop the logging? Then come up with real answers. Come up with substitutes that are as practical, affordable and renewable as trees.
by Zanymuse
Great advice! Plant trees and wait for them to reach harvestable size. Then, when you are ready to harvest them, spend the big bucks to do environmental studies, file the harvest plans and then get the lawyers out to fight for your right to cut them. Because Jen and company are sure to be there with their lawsuits to try and stop you.

Now go through all the courts and wait. By the time you get approval you will have invested 40 to 100 years growing them and another 10 and multi millions on frivolous lawsuits. Or you will be told that the spotted owl needs these "old growth trees" to survive.

Once you finally reach the stage where you can start cutting, be ready to spend a lot more money and time getting the hippies out of the trees, repairing damaged equiptment from the "non violent" faction and making the repairs to the sites left from past decades of poor logging practices.

Plant some trees. Great idea, I wonder why they didn't think of it!
by many pews
"Maybe because every logging plan, regardless of where or how is presented is automatically challanged by "environmentalists""

wow! we're doin better than i thought! palco alone submits hundreds of logging plans every year. rite on 4 the pesky preservationists to be challenging every one of them clear-cuts, big or small. here i thought our pal palco was cuttiing the life outta this place while most people are distracted by their shit-poor wages and scalding hot starbucks coffee. go team!
Pacific Lumber Co. Corporate Credit Rating Placed On Watch Neg Due to Supply Shortage


Primary Credit Analyst(s):

Dominick D'Ascoli, CFA, New York (1) 212-438-5024;
dominick_dascoli at standardandpoors.com


Publication date: 26-Jan-05, 10:46:52 EST
Reprinted from RatingsDirect

NEW YORK (Standard & Poor's) Jan. 26, 2005--Standard & Poor's Rating Services
said today it placed its CCC+ corporate credit rating on Scotia, Calif.-based
Pacific Lumber Co. on CreditWatch with negative implications.
The company's wholly owned subsidiary and primary log supplier, Scotia
Pacific Co. LLC, is having difficulty obtaining approval from the North Coast
Regional Water Quality Board to harvest timber on about a dozen tracts of land
it owns. This is causing a raw-material shortage at Pacific Lumber, whose
production volume, revenues, and cash flow are therefore lower than expected.
It is critical that the approvals be received soon because logging is subject
to seasonal restrictions later in the year.
"If additional approvals are not received by the end of February, it
could have serious consequences for Pacific Lumber, including the possibility
that it could file for bankruptcy," said Standard & Poor's credit analyst
Dominick D'Ascoli.
In the interim, reduced log supply will continue to erode an already
precarious liquidity position. Current liquidity is below $10 million.
In resolving the CreditWatch action, Standard & Poor's will assess the
impact on Pacific Lumber's financial profile of the approval, partial
approval, or failure to obtain approval of pending logging permits. Standard &
Poor's expects to resolve its CreditWatch action by the beginning of March at
the latest.




Complete ratings information is available to subscribers of
RatingsDirect, Standard & Poor's Web-based credit analysis system, at
http://www.ratingsdirect.com. All ratings affected by this rating action can be found
on Standard & Poor's public Web site at http://www.standardandpoors.com; under Credit
Ratings in the left navigation bar, select Find a Rating, then Credit Ratings
Search.



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by Zanymuse
They have managed to fight through and get a few parcels cut. But not without a fight for the approvals. But they have not been allowed to cut the number of board footage that they were promised under the Headwaters agreement. Nor it seems , has the state held up it's part of the deal to expedite and defend the agreement.
by Fredric L. Rice (frice [at] linkline.com)
The talk about arson in this thread is irresponsible and downright stupid -- for all the traditional reasons. First off, arson is wrong but in any event it doesn't stop anything while such actions _do_ get used by the right-wing media to paint _anyone_ who advocates the reasonable use of timber and lands as bomb-throwing kooks.

A girl sitting in a redwood in Northern California saving a tree gets painted by all the right-wing media goons as a bomb-throwing kook solely because _others_ set fires, allowing the right-wing media to successfully negate the peaceful efforts of tree sitters.

Tree spiking works; arson is about the dumbest thing any moron can do, second only to the crackpot use of explosives. (Rule of thumb: Anyone who suggests arson is the undercover FBI goon or an insane kook you need to stay away from.)

Pickets, protests, sit-ins, songs, banner drops and all the traditional non-violent activities at least have a _chance_ of working. Setting fire to things might put a fur farm out of business, but it's dangerous, stupid, wrong, and greatly adversely impacts progressive activities.

I was also mildly amused to read that that the ELF was "organized" in any kind of way -- either as a splinter faction of EF! or not. }:-} The suggestion is a myth that the FBI and other like-minded agencies like to play pretend with.

The FBI's incompetent behavioral sciences people like to pretend that there's leaders and organizers calling the shots for losely connected cells, contriving all sorts of sexual fantasies about why activists "join the ELF" when in fact there are no such cells, no lines of communication, no long-term organizing, no leaders, and the motivations, aims, goals, and desires of the individuals who sign their work "ELF" are exactly as they describe. No more, no less.
by boicot Palco @ point of comsumption
2-nite at the rockridge library in oakland (5366 College Ave., 5 blocks south of rockridge BART) Bay Area Coalition for Headwaters and anyone concerned about deforestation, Maxxam/Pacific Lumber's corporate deceit and other forest issues please attend & b open 4 suggestions and dialogue..

How do people stop deforestation by corporate timber?

Is there an alternative to short term profits and clearcutting, unstable slope logging ((Columbia Helicopter, same corporation that sprays herbicide over the Putomayo rainforest in Columbia in the war on Mama Coca and cocaleros)), herbicide spraying, old growth overharvesting, etc., currently practiced by MAXXAM/PL, International Paper, Weyerhauser, Boise-Cascade, Sierra-Pacific, Louisana-Pacific, etc..?

How can ecologists and other concerned scientists communicate to a deaf Bush administration that the above mentioned practices are reducing the quality of forest health for the future generations. We are literally robbing from our grandchildren's oxygen bank to support the billionaire bank acounts of CEOs like Charles Hurwitz and their politician supporters like Bush/Cheney. Workers are out of jobs because rapid harvest clearcut logging replaced potentially sustainable selective logging. The short term gain focus of corporate logging is responsible, yet environmentalists and spotted owls are often blamed as the culprits for unemployment..

Judi Bari realized that the workers of Pacific Lumber were being given a rotten deal after the Maxxam takeover and spoke out for them also. After the steelworkers (lost pension after Maxxam's hostile takeover of Kaiser Steel) came out to visit the treesitters, both workers and environmentalists recognized that the corporate elite under WTO Free Trade agreements now had more power than ever. Today in the face of the hungry jaws of NAFTA, CAFTA, PPP, PNWRTA, and other free trade agreements, local sovereignty is the doormat of corporate profit..

Please help stop corporate timber from continuing deforestation and destruction of the forests..

c u there,

luna moth



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