Lumber Company Threatens Bankruptcy, Blames Environmental Regs

Shigley, Paul
July 2005
Planning;Jul2005, Vol. 71 Issue 7, p49
Trade Publication
This article reports that Pacific Lumber Co. has offered an ultimatum contending either to reduce environmental regulation, or the 140-year-old company would declare bankruptcy. In March, Pacific Lumber filed a white paper with state water quality regulators that said the habitat plan had increased the company's operating costs while reducing timber harvests to a lower-than-expected level. The company complained that regulators' "stranglehold" on timber harvest plans had made it consider bankruptcy. A month later, the state Water Resources Control Board responded. It found that the company's financial trouble was due to over-harvesting, a huge debt load and the transfer of profits to the firm's parent company. Pacific's financial difficulties are the result of deliberate business decisions, not the result of any regulatory decisions," the state report concluded. The North Coast Regional Water Quality Control Board is expected this fall to adopt watershed-wide requirements for two areas where Pacific Lumber does much of its winter logging.


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