EPIC Inquiry on Disclosure Sent to Realtors in Maxxam Lands Liquidation

EPIC Inquiry on Disclosure Sent to Realtors in Maxxam Lands Liquidation

March 15, 2006

For more information, please contact: Larry Evans, 707-499-2994

Eureka, CA — The Environmental Protection Information Center has sent a letter of inquiry to realtors in Humboldt County, California, to inquire whether Maxxam subsidiary Scotia Pacific Company LLC (“ScoPac”) is fully disclosing all required information to potential buyers concerning 9,264 acres being offered for sale. The land in question is covered by provisions of the Habitat Conservation Plan (HCP) and other agreements.

“EPIC believes potential buyers are entitled to know about habitat and species protection measures that apply to these lands,” said Larry Evans of EPIC. “It is fundamentally fair that the realtors who are engaged fully understand the protection measures to which ScoPac is committed, as those provisions apply to new owners.”

The 9,264 acres is configured by eight parcels, ranging in size from 152 to 3,795 acres, and are part of a larger real estate offering totaling nearly 15,000 acres in a sale characterized as corporate asset liquidation aimed at forestalling a debt-driven bankruptcy of ScoPac. In addition to the letter of inquiry highlighting specific sections of the governing agreements, a CD containing complete copies of the three relevant documents was enclosed in the certified mail packages. The documents include the “HCP”, the accompanying “HCP Implementation Agreement” and the “Enforcement Agreement for AB 1986”, all of which arose from negotiations leading to the 1999 Headwaters Forest Deal. While the scattered tracts of ranchlands are being listed by local realty companies, a larger offering totaling an additional 45,000 acres is reportedly being offered privately to unnamed timber companies.

According to Evans, “In our view, the Maxxam controlled ScoPac and Pacific Lumber Company has a scandalous record when it comes to following the law. The message is `buyers beware’ when dealing with this infamous scofflaw Texas corporation. ”

Examples of legal transgressions include:
* In 1995, a federal judge found that Pacific Lumber’s reporting and expert evidence was unreliable.
* Since 1998, issuance of Cleanup and Abatement orders from state water quality officials for Pacific Lumber’s logging-related pollution in streams.
* In 1998, Pacific Lumber’s loss of its logging operator license due to hundreds of violations of governing law.
* Since 1999 and the Headwaters deal, hundreds more violations of governing law and the Habitat Conservation Plan.

“We support conservation of species, habitat and a sustainable forest products industry. Both are possible. The dismantling of once-proud Pacific Lumber threatens to leave the county with an even more depleted resource base, already pillaged by Maxxam in its 20-year liquidation scheme,” said Evans.