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Pacific Lumber is in Crisis

Pacific Lumber is in Crisis. Pacific Lumber’s financial crisis has nothing to do with external forces. PL’s crisis is the predictable result of intentional, deliberate decisions made over many years. From crisis comes opportunity.

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Pacific Lumber is in Crisis

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  1. A Presentation of the Humboldt Watershed Council

  2. Pacific Lumber is in Crisis • Pacific Lumber’s financial crisis has nothing to do with external forces. • PL’s crisis is the predictable result of intentional, deliberate decisions made over many years. A Presentation of the Humboldt Watershed Council

  3. From crisis comes opportunity We have an excellent opportunity to address the one issue that most has dominated our county for the last 20 years A Presentation of the Humboldt Watershed Council

  4. What Does PL Meanto Humboldt County? • Largest private landowner • ~220,000 acres • Largest private industrial employer • ~835 jobs • ~$40 million in payroll • ~$80 million in goods and services A Presentation of the Humboldt Watershed Council

  5. What Does PL Mean to Humboldt County? A Presentation of the Humboldt Watershed Council

  6. What Does PL Mean to Humboldt County? A Presentation of the Humboldt Watershed Council

  7. What Does PL Mean to Humboldt County? A Presentation of the Humboldt Watershed Council

  8. What Does PL Mean to Humboldt County? A Presentation of the Humboldt Watershed Council

  9. What Does PL Mean to Humboldt County? A Presentation of the Humboldt Watershed Council

  10. What Does PL Mean to Humboldt County? A Presentation of the Humboldt Watershed Council

  11. What Does PL Mean to Humboldt County? A Presentation of the Humboldt Watershed Council

  12. What Does PL Meanto Humboldt County? • Humboldt County has been strongly divided for the last 20 years • PL has been at the center of that division A Presentation of the Humboldt Watershed Council

  13. How did we get here? A brief history of the Pacific Lumber Company, 1985 to present A Presentation of the Humboldt Watershed Council

  14. 1985 Maxxam Takeover Charles Hurwitz buys PL with help of Michael Milken and Ivan Boeskey PL debt before takeover: $30 million PL debt after takeover: $879 million A Presentation of the Humboldt Watershed Council

  15. 1985 Maxxam Takeover “We do not feel that this impending take over will be in the best interest of ourselves, the shareholders, and the communities in which our company serves.” A Presentation of the Humboldt Watershed Council

  16. 1985 Maxxam Takeover “The fight is not over.” A Presentation of the Humboldt Watershed Council

  17. 1985 Hammon, Jensen, Wallen & Asssociates “Pacific Lumber’s forests cannot sustain a doubling of 1985 harvests indefinitely. Continuance of double 1985 harvest levels for many years beyond year 20 will result in liquidation of the forest…” A Presentation of the Humboldt Watershed Council

  18. 1987 Pacific Meridian Study A Presentation of the Humboldt Watershed Council

  19. 1987 Pacific Meridian Study “An Analysis of Environmental Impacts Associated With Pacific Lumber Company’s Timber Management Program” A Presentation of the Humboldt Watershed Council

  20. 1987 Pacific Meridian Study Examined four long-term management alternatives, and analyzed their potential environmental and social impacts. A Presentation of the Humboldt Watershed Council

  21. “Alternative A” Examined two different sustained-yield alternatives which would have provided both steady timber and steady employment A Presentation of the Humboldt Watershed Council

  22. “Alternative B” “Harvest would increase substantially to 394 MMBF per year and then decline” A Presentation of the Humboldt Watershed Council

  23. “Alternative B” “Pacific Lumber’s employment would increase significantly at first, dropping off as harvest declined” A Presentation of the Humboldt Watershed Council

  24. “Alternative B” “Large older trees would be harvested and by 2008, the standing inventory would consist of trees smaller than are currently used by PL’s mills.” A Presentation of the Humboldt Watershed Council

  25. Rate of Harvest Skyrocketted • 10X the historical average • 3X the previous highest rate ever A Presentation of the Humboldt Watershed Council

  26. Rate of Harvest Skyrocketted • Between 1987 and 1996, PL cut its inventory by 3.3 billion board feet • Average of 300 million board feet per year • More than half of their inventory in 10 years • Equivalent to a 20-year rotation A Presentation of the Humboldt Watershed Council

  27. Freshwater and Elk River A Presentation of the Humboldt Watershed Council

  28. Freshwater Watershed A Presentation of the Humboldt Watershed Council

  29. Elk River Watershed A Presentation of the Humboldt Watershed Council

  30. North Fork Elk River A Presentation of the Humboldt Watershed Council

  31. North Fork Elk River A Presentation of the Humboldt Watershed Council

  32. North Fork Elk River A Presentation of the Humboldt Watershed Council

  33. Environmental Consequences of “Alternative B” • “Due to its accelerated rate of harvest, Alternative B (is) most likely… to cause significant levels of sedimentation, adverse soil effects, elevated water temperatures, increased peak flows, and induce mass movement events.” • “Alternatives B and D are the most likely of the alternatives analyzed to produce cumulative watershed effects…” A Presentation of the Humboldt Watershed Council

  34. A Presentation of the Humboldt Watershed Council

  35. A Presentation of the Humboldt Watershed Council

  36. A Presentation of the Humboldt Watershed Council

  37. A Presentation of the Humboldt Watershed Council

  38. Howard Heights Bridge Designed high-water mark for 50-year flood event A Presentation of the Humboldt Watershed Council

  39. Howard Heights Bridge Designed high-water mark meets roadway 25’ past the end of the bridge A Presentation of the Humboldt Watershed Council

  40. Howard Heights Bridge December, 1955 100-year flood event High-water mark 9 inches above design level A Presentation of the Humboldt Watershed Council

  41. 1955 Flood “The 1955 flood occurred following weeks of above-normal precipitation in the county, with rainfall measurements reaching as high as 24 inches over three days” Humboldt County General Plan Update Natural Resources and Hazards Report Chapter 11.1 Historical Floods A Presentation of the Humboldt Watershed Council

  42. November 21, 1998 5.69 inches over 3 days Exceeds 1955 flood level A Presentation of the Humboldt Watershed Council

  43. January 14, 2000 1.36 inches over 3 days Exceeds 50-year design flood level A Presentation of the Humboldt Watershed Council

  44. December 28, 2002 3.68 inches over 3 days Exceeds 1955 flood level A Presentation of the Humboldt Watershed Council

  45. December 28, 2005 A Presentation of the Humboldt Watershed Council

  46. North Fork Bridge A Presentation of the Humboldt Watershed Council

  47. North Fork Bridge A Presentation of the Humboldt Watershed Council

  48. North Fork Bridge A Presentation of the Humboldt Watershed Council

  49. North Fork Bridge A Presentation of the Humboldt Watershed Council

  50. North Fork Bridge Cross-sectional area reduced by 60% A Presentation of the Humboldt Watershed Council

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