Posted 11/19/96


It was a good deal all right... for Charles Hurwitz

On Sept. 27, 1996, a group of negotiators grabbed headlines when they reached a tentative agreement on protection of the world's largest remaining ancient redwood forest outside of parks. The Headwaters Forest deal, brokered by U.S. Sen. Dianne Feinstein, was worked out by California and federal negotiators along with MAXXAM Corp. chairman Charles Hurwitz. MAXXAM is the parent company of Pacific Lumber Co. (PL), which owns the 60,000-acre forest.

Although Feinstein declared the deal a "win-win agreement for everyone," it is in fact extremely weak, providing no assurance of lasting protection for any of the Forest.

The deal would establish a "Headwaters Preserve" of only 7,500 acres in this redwood wilderness located 15 miles southeast of Eureka, Calif. The proposed preserve includes the Headwaters and Elkhead Springs groves and buffer lands. These groves are only two of six virgin groves within the Forest. Saving only 7,500 acres would leave 88 percent-- 52,500 acres-- of Headwaters immediately vulnerable to salvage logging.

Indeed, since the deal was announced PL has completed destructive salvage logging operations in All Species Grove and has begun work in Shaw Creek and Allen Creek groves. The sixth grove, Owl Creek, remains the only unentered grove not covered by the deal.

Under the deal an "expedited" Habitat Conservation Plan (HCP) and Sustained Yield Plan (SYP) are to be developed for PL's entire 200,000-acre ownership over the next 10 months. An HCP is a federal permit which allows the killing of endangered species in one location in exchange for an agreement to spare them in another location. Further, the deal carries no clear definition of "sustainable" to facilitate the establishment of an SYP.

In exchange for the 7,500 acres the deal would provide Hurwitz $380 million in cash, property and/or other assets from as-yet-unspecified sources. Of this sum, the State of California must provide $130 million, with the federal government responsible for the remaining $250 million. State and federal authorities have until late November to present a list of property equal to or in excess of $300 million in value which is "available and acceptable to Pacific Lumber." Hurwitz may accept or reject this package; should he reject it he invalidates the other terms of the deal.

MAXXAM and Hurwitz are defendants in actions brought by the federal government in connection with the fifth largest S&L failure in American banking history, that of United Savings Association of Texas in 1988. This collapse cost American taxpayers $1.6 billion. Hurwitz's portion of this debt totals about $548 million. Hurwitz still must answer for his actions in this matter. Instead of paying Hurwitz more tax dollars, the entire Headwaters Forest could be acquired through a Debt-for-Nature exchange, in which the settlement of Hurwitz's S&L debt would include the Forest and all its ancient groves.

Even though the deal establishes a ten-month moratorium on logging in Headwaters and Elkhead Springs groves, the agreement also states that Hurwitz can veto the agreement on two weeks' notice. Thus the deal effectively sets up a series of two-week moratoriums on logging and these moratoriums only would apply to the two ancient groves specifically included in the agreement.

Hurwitz can veto the deal if he does not approve of the final HCP or the SYP. "Expediting" development of the HCP and SYP places the U.S. Fish and Wildlife Service in a difficult position: The agency's rejection of even inadequate protection for endangered species could result in Hurwitz's veto of the deal and an immediate threat of logging in the Headwaters and Elkhead Springs groves.

Accepting a deal that purportedly protects 7,500 acres might be a temptation for some. But preserving the integrity of the entire 60,000-acre Forest is a biological necessity. Settling for only 7,500 acres would almost certainly doom the remaining 52,500 acres to the chainsaw. Such a cut would sacrifice the four smaller virgin groves totaling about 3,000 acres and other residual old-growth habitat occupied by listed or candidate endangered species.

Further, a redwood forest island of only 7,500 acres surrounded by cutover land stands a doubtful chance of ecological survival. Drying wind and blowdown would encroach deep into such a parcel. Threatened Marbled murrelets would face increased risk of predation due to a closer-in forest edge. Riparian habitat of Coho salmon would be destroyed. Thus an intact 60,000-acre Headwaters Forest not only is desirable for saving the most virgin acreage and buffer territory, but also may be the only structure that could ensure long-term survival of the area's redwood forest ecosystem.

PLEASE CALL, WRITE, FAX, or E-MAIL TODAY!

President Bill Clinton
The White House
Washington, DC 20500
202/456-1111 phone
202/456-2461 FAX
president @whitehouse.gov

Gov. Pete Wilson
State Capitol
Sacramento, CA 95814
916/445-2841 phone
916/445-4633 FAX
(no e-mail)

Douglas Wheeler
Secretary of Resources
State of California
916/653-5656 phone
916/653-8102 FAX

Tell them you support Headwaters Forest preservation efforts that:

- save all 60,000 acres and all six ancient groves of Headwaters Forest.
- do not sacrifice other ancient forests through land trades or other measures.
- do not include any restrictions on public participation or legal challenge.
- do not exonerate Hurwitz of his $548 million responsibility to American
taxpayers.
- do not include HCPs which will sacrifice endangered species.