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Monday, July 18th, 2005

Palco hits state water board with suit

John Driscoll, Eureka Times-Standard

The Pacific Lumber Co. is suing to overturn the state water board's decision to slash logging in Freshwater and Elk River.

The State Water Resources Control Board in June struck down an order from it's regional counterpart, which had trimmed logging to about 75 percent of what had been allowed in the watersheds in recent years. The state board ruled that logging in the impaired watersheds couldn't be allowed under general permits, and tossed out the decision.

Palco CEO Robert Manne said the state board used "questionable and strained logic" to invalidate the North Coast Regional Water Quality Control Board order.

"This decision sets a flawed legal precedent and has caused Palco grave financial harm, delayed watershed recovery, and blocked efforts to address flooding," Manne said. "For these reasons, we are taking this matter to court and we expect to prevail."
















The company logged most of what would have been allowed under the regional board's order, but Palco spokesman Chuck Center said about 7 million board feet of timber was left standing. Palco has blamed its likely inability to pay on hundreds of millions in debt by next week on the hold up by the state board. Center would not comment on that issue.

Liz Kanter, a spokeswoman for the state board, said the agency hadn't seen the suit, so couldn't comment.

The petition for writ of mandate filed in Humboldt County Superior Court on the state board's order claims the company will be irreparably injured, since the logging is essential for its economic survival. The company's ability to cut trees is critical to negotiations with its bond holders, the suit reads, especially with respect to its January 2006 payments.

The state board, Palco alleges, abused its discretion, didn't defer to the regional board's decision, and violated the California Environmental Quality Act. The company asks for a stay while the matter is taken up by the court.

"I can imagine them suing on a legal technicality because they have no scientific ground to stand on," said Alan Cook, a resident of Freshwater.

He said the regional board's decision met the definition of arbitrary, and it was appropriate to have it overturned. Now that the state is, after years, taking a stand to protect water quality, Cook said, Palco is being forced to sue.



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