New Illegal Logging by Maxxam/Palco May Indicate More to Come

Pacific Lumber Company (Palco) is a wholly-owned subsidiary of Texas-based Maxxam Corporation. Palco's 207,000* acres of timberlands are held by its Scotia Pacific subsidiary, which has been facing impending bankruptcy due to its massive debt of some $749 million.

On Tuesday, September 27th, Palco began logging on its contested "Bonanza" timber harvest plan, in the Nanning Creek watershed near Scotia, without waiting for a required General Waste Discharge Requirement permit (GWDR) from the North Coast Regional Water Quality Control Board (Regional Water Board). Two days later, the Regional Water Board served Palco with a Notice of Violation, citing California Water Code Section 13264.

Section 13264 specifies that it is illegal to discharge waste into a watershed where Reports Of Waste Discharge (ROWDs) have been ordered, until the necessary Waste Discharge Requirement (WDR) permit has been issued.

Mark Lovelace, of the Humboldt Watershed Council, raised the concern that Palco's actions on the Bonanza THP could be merely a 'test shot' to gauge the Water Board's response should the company go forward with similar illegal logging in Freshwater and Elk River.

In recent months, Palco has contended that Section 13264 allows them to log without WDR permits if 140 days have elapsed since their ROWD was submitted. Palco submitted its final ROWDs for Freshwater and Elk River in March, but recent legal actions have left the Regional Water Board with no legally-permissible permit structure which would allow further logging by Palco in these watersheds.

"PL would like to log far more in Freshwater and Elk River than either science or law can support" said Lovelace, "and they are trying to interpret this section in a way which would allow them to do so with impunity."

Section 13264 states that "No person shall initiate any new discharge of waste" into a watershed "before. the issuance of waste discharge requirements (or) the expiration of 140 days after compliance with Section 13260 if the waste to be discharged does not create or threaten to create a condition of pollution or nuisance"

Lovelace noted "This section speaks specifically to initiating the discharge of waste. By invoking this section, Palco is acknowledging that their operations will discharge waste, which is disallowed in these cumulatively-impacted watersheds. The section is self limiting, and prohibits its application here."

On February 7th, 2003, the Regional Water Board passed a motion stating its considered opinion that "the commencement of activities under a Timber Harvest Plan, including the falling of timber, without coverage under a waiver or waste discharge requirements, constitutes the initiation of a discharge under Section 13264."

"Section 13264 does not in any way allow PL to log without permits in these watersheds" said Lovelace. "Rather, it specifically denies them that ability."

What remains unclear is whether the Regional Water Board has ample enforcement ability, should the company proceed with widespread illegal logging. This issue is further complicated by the likelihood that Palco might file for bankruptcy in the near future, which would provide the company with protection from certain legal proceedings against it. While bankruptcy does not prevent regulatory agencies from exercising their 'police powers', the Regional Water Board may have to appeal to a bankruptcy judge for enforcement.