Appeal Hearing in Headwaters Forest Case

San Francisco, CA – The oral argument in the California Court of Appeal on the merits of the trial judgment invalidating Pacific Lumber's “Headwaters Deal" approvals is set for Friday, September 16 at 9:00 AM at the Court of Appeal, First Appellate District, located on the Fourth Floor at 350 McAllister Street in San Francisco. The case is assigned to a three-judge panel from Division Five consisting of Justices Barbara Jones, Linda Gemello and Lawrence Stevens.

Appellants are two state agencies, the California Department of Forestry & Fire Protection and the California Department of Fish and Game, as well as Pacific Lumber Company, Scotia Pacific Company LLC, and Salmon Creek Corporation. The trial court set aside all the state permit approvals arising from the 1999 “Headwaters Deal” because they were so extensively flawed that none could be saved. Respondents on appeal are the Environmental Protection Information Center (EPIC) and the Sierra Club.

Pacific Lumber has argued that its current financial problems are the result of state agencies not delivering on "promises" that the company claims are contained in the Headwaters agreements. But the agreements are flawed both legally and scientifically, and Pacific Lumber's financial situation is a consequence of its own mismanagement and the fact that hundreds of millions of dollars have been transferred to Maxxam Corp. in Houston. With a principal debt of at least $800 million, and having paid at least $700 million over time to its parent, Maxxam Corp., Pacific Lumber now faces a likely reorganization and possible Chapter 11 bankruptcy filing.

Moreover, having logged watersheds to the point of collapse to pay huge annual interest payments to its creditors, the company now finds itself the subject of predictable regulatory action from the North Coast Regional Water Quality Control Board under its legal mandate to protect and restore water quality.

Members of the public are advised to arrive by about 8:30 AM Friday to obtain seating.

The case is titled, EPIC, et. al. v. California Dept. of Forestry & Fire Protection, et al., On Appeal Case Nos. A104828 and A105391.

The companion case United Steelworkers v. California Dept. of Forestry & Fire Proitection, et al, On Appeal Case Nos. A104830 and A105388 will also be heard.
###

Environmental Protection Information Center
PO Box 397
Garberville, Calif. 95542
(707) 923-2931