Gov. Schwarzenegger Issues Statement on Judge’s Decision in Pacific Lumber Bankruptcy Case
For Immediate Release:
Friday, June 6, 2008
Contact: Aaron McLear, Lisa Page – 916-445-4571
Governor Arnold Schwarzenegger today issued the following statement on the Pacific Lumber Company’s bankruptcy proceedings, and U.S. Judge Richard Schmidt’s approval of the Mendocino Redwood Company/Marathon Plan for Reorganization:
“Today’s decision in the Pacific Lumber bankruptcy case is good news for the people of California. I commend U.S. Judge Schmidt for his consideration of the principles I articulated in order to preserve the historic Headwaters Forest Agreement, and I hope this decision will establish a strong precedent that weighs both the economic and environmental benefit of long-term sustainability and preservation.
“I supported this plan because it offers the best opportunity to advance and protect both the economic and environmental value of these assets over the long-term – it will keep the mill open, keep employee pensions funded and keep most of the current employees working. Moreover, the company is based in California and is an important part of the local community. There is no question that their plan will enhance the Headwaters Forest Agreement we worked so hard to reach in 1996.”
- On January 29, the Governor asked the court to consider the following set of five principles in selecting a plan:
- Manage the timberlands in accordance with state and federal laws, including but not limited to the existing regulatory permits and authorizations such as the Headwaters Forest Agreement and the Habitat Conservation Plan and all other state permits, AB 1986 (Chapter 615 of statutes of 1998), the Agreement Relating to Enforcement of AB 1986 and the conditions, covenants and restrictions recorded in accordance with AB 1986.
- Manage the timberlands in a manner that complies with all required regulatory permits and other authorizations in coordination with state and federal regulatory agencies.
- Preserve the timberlands by maintaining a level of commercial harvest that will ensure sustainable, high-quality timber production over the long term while preserving and enhancing watershed and wildlife protection.
- Minimize adverse impacts to the local economy and preserve as many local employment opportunities as possible.
- Maximize the greenhouse gas reduction benefits that could be generated in timberland management.
On April 4 , based on these principles, the Governor asked the court to consider support for the Mendocino Redwood Company plan.Posted in PALCO | Tagged HRC, MRC |