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Feinstein urges judge to maintain Pacific Lumber's conservation deals |
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Sen. Dianne Feinstein (D-Calif.) is urging a federal judge presiding over the reorganization of the bankrupt Pacific Lumber Co. to adhere to two conservation agreements aimed at protecting California's old-growth redwood forests.
"The mismanagement of Pacific Lumber should not be allowed to undermine these far-reaching agreements that were carefully negotiated and fully accepted by all the parties," Feinstein said in a letter sent yesterday to Judge Richard Schmidt of U.S. Bankruptcy Court for the Southern District of Texas in Corpus Cristi.
At issue is the 1996 Headwaters Agreement -- signed by Charles Hurwitz, chairman and CEO of the owner of Pacific Lumber, Maxxam Corp. -- that commits the federal and state governments to providing $380 million for the purchase of the largest grove of old-growth redwood trees in private ownership, the Headwaters Grove in California.
The agreement also led to a 1999 Habitat Conservation Plan, which allows for incidental taking of endangered species as long as there is adequate conservation measures that allow for long-term recovery.
The forests protected by the agreements are home to dozens of threatened and endangered species and are part of an important watershed for salmon and other aquatic species. The Headwaters agreement designates 6,600 acres as marbled murrelet conservation areas. Feinstein played a key role in crafting both deals.
Pacific Lumber declared bankruptcy in January and unveiled a reorganization plan that involved selling roughly 29,000 acres of its best redwoods to raise $600 million. But creditors disputed the value of the proposed redwood sale, creating a disagreement over the control of about 200,000 acres of redwoods.
Efforts to mediate the dispute failed, leaving the matter in the court's hands.
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Last Updated ( Wednesday, 20 February 2008 )
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