Ex Forestry Director Declares Maxxam Committed Fraud in Headwaters Deal

Richard Wilson says so, and he should know. Wilson headed the California Department of Forestry in 1999, when State and Federal governments signed away $480 million in taxpayer money to the Texas corporation in exchange for 7,500 acres of redwood forest. Unfortunately, without asking us, they also signed away the rest of Maxxam’s timberlands – sentencing the remaining trees to be quickly turned into cash regardless of the loss of water quality, the damage to near-by residents, or the killing of endangered Coho salmon. It was the infamous Headwaters “Deal.”

Maxxam’s Pacific Lumber submitted bogus landslide data to CDF in order to obtain a higher rate of cut, claiming the increased rate would not result in increased landslides. The day before the March 1, 1999 deal was signed, the corrected data was submitted to the Fortuna branch office, avoiding notice from the agencies as well as comment from the public.

When Humboldt District Attorney Paul Gallegos filed a lawsuit in 2003 charging fraud, Maxxam’s Pacific Lumber immediately launched a recall, charging the DA was “soft on crime.” Given this lawsuit could pin the timber corporation with a $300 million judgment, it’s easy to see Maxxam is upset the DA is not soft on their crime.

By committing fraud, Maxxam was allowed to cut the forest at a rate that does not allow recovery of the watersheds where they log, but nets them in excess of an additional $40 million per year.

Therein lies the motive - an extra $40 million every year for the small price of harm to not only Humboldt County residents, but also California State water supplies. An extra $40 million to further threaten already endangered species by destroying their habitat. An extra $40 million in exchange for Pacific Lumber’s integrity, which should never have been for sale.

The Headwaters “Deal” was a great victory for Maxxam over the people, watersheds, wildlife and “democratic process” from which it came. It’s about time we recognize the irreplaceable treasures we have lost, and the suffering that continues because of this fraud.