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Across the nation, property owners are battling to protect their rights.

In South Carolina: David Lucas paid $900,000 for two beach front lots. He planned to build private homes, but the state quickly passed an ordinance outlawing all development on the beaches. Mr. Lucas sued. He had to take his property rights battle all the way to the U.S. Supreme Court, which ruled that, if he could not make reasonable use of his land, he must be reimbursed.

In Oregon: A couple purchased 40 acres of scrub forest after being assured by the county planning commission that they could build their retirement home on the land. Then the county changed its zoning laws, and told them they could not build because the construction did not relate to development of forest resources. Their property rights case now is in the Ninth Circuit Court of Appeals. In California: A couple purchased a beach front lot, where they wanted to build a APC mill to close September 30, hundreds to lose jobs two-story home similar to others nearby. The California Coastal Commission said Major changes in a federal logging acontributing factor in the mill's upcom- they could build-ifthey gave the state one-third of their property for a park. The contract, coupled the removal of two- ing closure, the worst damage has come couple sued. They also had to go the judicial distance. The U.S. Supreme Court thirds of the commercial forest in the from changes in the company's 50-year called the Coastal Commission's demand "extortion." Tongass National Forest from logging, logging contract that have made a diffi- rias forced the Alaska Pulp Corporation cult situation "completely unworkable," to announce the indefinite suspension said Frank Roppel, Alaska Pulp execu- And in Alaska: A gold miner whose claims are within Denali National Park was of its Sitka pulp mill operations. tive vice president. He said the com- Changes to timber Four-hundred employees with an pany will seek relief through a recently- working a placer deposit according to sound environmental principles. The contract prompts suit National Park Service shut him down, telling him he couldn't mine if his operation annual payroll of $1 8.9 million will lose filed lawsuit against the Forest Service their jobs when the mill closes Septem- and will explore additional uses for the caused any surface disturbance. His property rights case now is in Federal District ber 30. A permanent closure would Sitka mill site. After months attempting to re- Court. . . ultimately lead to the loss of hundreds The company's contract with the solve issues out of court with the of additional jobs and an indirect payroll Forest Service allowed forthe purchase U.S. Forest Service, Alaska Pulp of $1 1.3 million. of 5 billion board feet of timber through Corporation has filed suit in U.S. While a weak world pulp market is the year 201 1. But since the contract District Court in Juneau challenging As environmental regulations proliferate at all levels of government, prop- was signed in 1957, Congress has modifications to the company's 50- erty rights are b,eing compromised with increasing frequency. Preservation moved to set aside most of the commer- year timber purchase contract. of cherished property rights requires constant vigilance and involvement by cia1 forest from logging. APC claims the Forest Service's In the 1980s, amajor lobbying effort administration of the Tongass Tim- advocacy groups. And action by us, the individual property owners. by state and national environmental ber Reform Act of 1990 has improp- groups led to the passage of the 1990 erly changed provisions of the Tongass Reform Act, which removed company's timber agreement and even more prime areas from the timber has made it much costlier to do base and led to major changes in the business. harvest contract. Those changes sub- "We had hoped and tried to stantially increased the price of wood resolve differences through nego- and decreased the overall quantity and tiations and discussions," said Frank quality of logs available to the company. Roppel, ARC Executive Vice Presi- Moreover, operating costs at the dent. "But the Forest Service re- Resource Development Council mill have increased over the years with Bulk Rate mained unyielding in its position, 121 W. Fireweed, Suite 250 stricter permit requirements.Since 1968, U.S. Postage and, unfortunately, we had no re- Anchorage, AK 99503 the company has spent over $1 00 mil- The APC mill accounts for a quarter of course other than legal action." ADDRESS CORRECTION REQUESTED Anchorage, AK Sitka's waterrevenues and20percent of its lion installing air and water pollution According to Roppel, the Act Permit No. 377 property tax base. controls. It now spends over $1 2 million (Continued to page 4) (Continued to page 4) w. In keeping with RDC's tourism and agriculture interests, RDC Executive British Columbia's decision to cre- mine would range from $1 10 million to fly into a public relations rage and spread Director Becky Gay holds "Errnalee,"a Musk Ox calf at the Palmer farm. Gay works ate a 2.5 million-acre wilderness park $620 million. fear throughout the populationof apos- as a volunteer for the Musk Ox Development Corporation with Connie Oornittuk, on top of a world-class, $8.5 billion Windy Craggy became a lightening sible environmental apocalypse," farm manager, and had the added pleasure of helping nurse the baby calf back to copper and gold deposit in the remote rod for environmental activists, who even- Corcoran said. health this spring. wilderness of northern British Colum- tually attracted thesupport of Vice Presi- The Canadian decision has brought bia has left miners fuming mad and dent AI Gore. The Vice President praised relations between government and indus- environmentalists jumping for joy. British Columbia for setting aside the try to a new low. Miners claim policies are "We came to the conclusion that region as a park, which U.S. officials driving industry out of the province. the preservation of wilderness and the hope to merge with two national parks in Alaskan miners warn the Canadian proposed mining activities could not Alaska to create a 21 million-acre pro- action was not an isolated example of co-exist, said Premier Michael Harcourt tected wilderness, the world's largest. the mining industry being booted out. in announcing the creation of the mas- The area, about the size of Ireland, is They say similar policy decisions have sive wilderness park directly over the largely inaccessible to humans and become the norm throughout the U.S. Windy Craggy copper deposit north of would be off limits to all development. It In a recent front-page editorial, the Haines, Alaska. Harcourt was forced to is popular with river runners who pay Wall Street Journal detailed how the Wetlands Coalition (AWC) to spearhead the battle on wetlands make a political choice between envi- thousands of dollars to raft the mining industry is relocating to South policy and regulation. Federal wetlands policy represents yet ronmentalists and miners, who battled Tatshenshini and Alsek rivers. America. The number of U.S. and Ca- another attempt to retard Alaska's ability to develop not only for years over whether the area should Environmentalists claim Windy nadian mining companies operating in resources, but transportation corridors, airport and port sites, be preserved or a fraction used for the Craggy's demise is one of the greatest Latin America has more than doubled tourism facilities, and the most basic elements of infrastructure in development of the copper mine at conservation victories since the pas- over previous years while exploration rural and urban Alaska, especially water and sewer systems. Windy Craggy. sage of the Alaska Lands Act in 1980. spending in North America fell sharply. by With thanks to the Alaska Congressional delegation, the AWC The park's declaration kills the pro- However, newspapercolumnist Terence "The companies are leaving the Becky L. Gay was invited to Washington, D.C. earlier this month to testify before posed $550 million Windy Craggy Corcoran warned that the decision to U.S. with the blessing, if not open the White House Interagency Working Group on Federal Wetlands project. Claim holder Geddes Re- create the huge wilderness preserve is encouragement, of the Clinton admin- Policy chaired by Keith Laughlin of the Environmental Policy group 1 sources of Vancouver has said it will yet another example of "mail-order pro- istration and Congress, which are pro- for President Clinton. demand compensation of "several hun- fessional environmentalists seizing the posing even stiffer environmental regu- Warning: This month's Resource Review might be depress- Commissioner John Sandor, Nelson Angapak of Calista and dred million dollars" from the province public agenda on economic develop- lations and new royalties on metals on ing to people concerned about the future of resource development Ispoke to the group on issues ranging from community needs, rural - many times what the province is ment." public lands," the Journal said. , in Alaska. sanitation considerations, regulations, coastal zone management, expected to offer. Geddes has spent Today, no government dares lift a The environmentalists' Windy The cumulative impacts of massive federal actions on the federal conservation units, demographics, native lands, as well as some $50 million on exploration and finger in favor of a new mine or resource Craggy victory will cost the region 2,500 economic health of Alaska are beginning to rear their ugly heads. specific wetland issues such as strict mitigation sequencing, abun- says the after-tax value of its proposed project lest one of these interest groups jobs. Government policies, combined with the goals of non-develop- dance, functions, values and permafrost. Ialsotooktheopportunity ment groups such as the "Alaska" Wilderness League, are overtly to fire a few shots at the latest misinformation campaigns of groups hostiletoward resource development- Alaska's economic lifeline. perpetuating fearful myths about Alaska wetlands. Wilderness League... Andrus, who as Interior Secretary un- State to sue feds .. . As predicted, such extremism is finally having a serious impact The Alaska team was well received and felt we had made the (Continued from page 6) der President Carter was instrumental on the state's timber, minerals and oil and gas sectors. And if fishing . case for flexibility and reason in the case of Alaska wetlands policy tions to take care of ex-congressmen in putting 104 million acres of Alaska (Continued from page 6) and tourism interests (theonlyapparent politically-correct industries to the working group in the new administration. This is a prime who couldn't get jobs." into parks and refuges through the pas- royalties from federal lands, but over the ) don'tthinktheywill be affected-thinkagain. Bluntly put, Alaska's example of the way in which pro-developmentAlaskans must unify "Given the League is being led by a sage of the Alaska Lands Act in 1980. yearsthefederal government has restricted basic industries are under siege and Alaska residents are the initial and work together. None of us can achieve lasting success on our representative who did not run for re- "This group purports to be a 'good orprohibiteddevelopmentonmany ofthose victims, since economic misery strikes locals first. own against the formidable odds out there. I encourage everyone election because of the House check- mix of Alaskans' and others from out- lands, Hickelsaid. Thestatedeservescom- In light of federal and Outside influences on both public and readingthis tocall and askforthetestimony delivered and if possible, bouncing problems, it looks like this will side the state, when a close look at their pensation for the natural resources that private lands in our state, RDC has worked hard over the years to to spare a few dollars earmarked for wetlands work. I'll even send be another extreme environmental board of directors reveals just one have been locked up, he said. be heard and influential at the national level. you the opposition's' misinformation campaign literature if you'd like group whose real purpose is to solicit Alaska resident," said Debbie "What's unique about Alaska is the Since 1989, for instance, RDC has coordinated the Alaska (Continue to page 3) contributions from the public to pay Reinwand, executive director of Arctic pattern of land ownership," Hickel said. staff salaries and to gain headlines from Power. "We view this group's efforts as 'There was aguarantee that we would use a gullible media," said Senator Frank a direct slap in the face to Alaskans -- the land to create an economy." Murkowski. what they are saying is we are not A little less than two-thirds of Alaska is Mike Matz, a Washington, D.C.- responsible enough to chart our own owned by the federal government. The based Sierra Club lobbyist, will open future on land use issues." state's economy is almost entirely based on 1the league's office. The League's board Reinwand said Alaskans view the resource development, but ever-increas- of directors is primarily made up of creation of the Wilderness League as a ing amounts of land have been put off limits Outside environmentalists, including rallying cry to arms. to development, locking up key resource Tim Mahoney, a former Sierra Club "If they intend to lock up ANWR, they'd deposits vital to Alaska's economic health. lobbyist and Idaho Governor Cecil best understand it won't come easy." Page 2 I RESOURCE REVIEW I July 1993 July 1993 1 RESOURCE REVIEW / Page 7 that are bound and determine to raise funds to help lock-up Alaska and prevent consumers from around the world the Thoughts from opportunity to enjoy products made from Alaska's resources. These people introduce a new meaning to the definition of 'carpetbaggers.'* Even Judge James Wickersham would turn over in his grave at the thought of this invasion of outside by intervenors. James L. Cloud It's not bad enough to have to counter propaganda and misinformation from groups like these, Alaskans must work Although Alaska already carries the tirelessly to fight efforts of the government to set aside more aurden of supporting two-thirds of the wilderness and restrictions on federal lands. Already 57 iation's designated Wilderness zones, million acres of federal lands in Alaska are closed to any form 30 percent of its refuge lands and 70 of development. This represents 62% of all federal Wilder- aercent of all park lands, a new national ese, who needs ness real estate. Moreover, development is banned or se- environmental group has formed to verely limited in tens of millions of acres in Alaska national obby Congress exclusively on expand- parks and refuges (outside designated wilderness areas). ng Wilderness designations in the 49th emies? And if all this isn't enough to satisfy non-development inter- state. ests, the U.S. Fish and Wildlife Service recently closed The first priority of the new Alaska Under pressure from eastern special interests who claim comments on aplan that would set aside millions of additional dilderness League will be to convince to be "friends of Alaska," the U.S. Forest Service has unilat- acres into Wilderness. congress to designate the Coastal erally made changes to long-term harvest contracts leading When the government and others limit uses of land and The Resource Development Council is opposing a federal proposalto expand Plain of the Arctic National Wildlife to the closure of the Alaska Pulp Company's mill in Sitka, resources, there is inevitably an impact on consumers and Wilderness zones inside Alaska's national wildlife refuges. Refuge as Wilderness. The League is putting over 400 people out of work this fall. Accounting for the economy. The federal and state Exxon Valdez Oil Spill In comments filed with the US. Fish and Wildlife Service, RDC President Jim ikely to be unpopular in Alaska where 25% of Sitka's employment base, the forest products industry Trustees Council recently voted to purchase land to prevent Cloud warned that "increasing Wilderness areas in Alaska would be a crippling a clear majority of residents favor re- reduction will likely effect 50% of Sitka's economy with the harvest of 100-plus million board feet of timber. This attack on its land base and would create bureaucratic redundancy which is not sponsible oil development on the ramifications throughout Southeast Alaska. With a rather renewable resource could have produced nearly 170 million needed nor wanted, given the high level of protection already granted by federal Coastal Plain, America's most promis- large multiplier effect on the economy, the ARC closure could board feet of lumber, enough to build over 11,000 homes. laws and regulations." ng onshore oil and gas prospect. result in a $40 million reduction in personal income in South- Given proper forest management, this could have been At issue is a document called, "Refuges 2003: A Plan for the Future of the The organization's chairman is east and $8 to $1 0 million less federal income taxes paid to repeated every 50 to 60 years, forever. National Wildlife Refuge System." The draft proposal is a blueprint on how former Rep. Bob Mrazek, a New York Uncle Sam. With "friends" like these back East, who needs While private landowners may find opportunity in selling America's wildlife refuges will be managed in the 21 st Century. Democrat who led battles in the House enemies? their land to the government, one would have to question the RDC opposes the Proposed Alternative which would add 29 million acres of to reform management of the Tongass In 1906, U.S. Secretary of Interior Gifford Pinchot with- wisdom of the government's role in limiting resource avail- Wilderness to the national wildlife refuge and discourage public recreation inside National Forest and to turn ANWR's drew all coal deposits in the Bering River Coal Fields under ability to consumers while spending enormous sums to add the units. Most of the Wilderness additions would come from Alaska, a state which Coastal Plain into Wilderness. The re- pressure from eastern special interests who claimed to be to the already obscene amounts of land in government already accounts for 90% of all Wilderness designations in the national refuge sults of Mrazek's efforts have been fell "friends of Alaska." The move forced Cordova residents and ownership in Alaska. system. Overall, Alaska accounts for 62% of all federal Wilderness, a heavy in Southeast Alaska where the Alaska businesses to import coal from British Columbia rather than With greater amounts of our natural resource base being burden for one state to carry. Pulp Corporation recently announced use the vast coal resources located nearby. On May 4,191 1, closed to development, where will America find the raw RDC explained that existing and proposed Wilderness designations in Alaska the September 30 closing of its Sitka 300 frustrated Cordova residents held the infamous "Cordova materials to produce the products its consumers demand? adversely impact access, recreation, camping, fishing and hunting, as well as pulp mill. Tongass reforms are largely Coal party," shoveling several tons of British Columbia coal Before long, America will become a nation of consumers most other human activities. When lands are withdrawn from multiple use and to blame for the closure and the subse- into the Cordova harbor. Eighty-two years ago, Alaskans without producers. Jobs will flow overseas to develop re- closed to development, economic opportunities are not only lost in the minerals, quent loss of hundreds of jobs. failed to appreciate the concerns of their eastern "friends." sources in countries with much weaker environmental laws. timber and energy industries, but tourism, too. Wilderness designations forbid the "We're not just a bunch of Outsid- Let me introduce you to some of your new "friends" from And the trade deficit will only grow larger as America imports construction of roads and facilities which attract visitors and support new visitor ers trying to lock up Alaska," Mrazek Outside that are here to help save Alaskans from themselves: the products it no longer produces at home. opportunities. said in a prepared statement. "We're The Alaska Wilderness League - Chaired by former With so much interference on Alaskans' right of self- RDC also objected to any action which would de-emphasize public recreation interested in seeing Alaska move to- New York Representative Bob Mrazek, this organization is determination, it's not hard to understandthe frustration of the in the national wildlife refuges. The proposed alternative would continue a trend ward a sustainable economy..." dedicated to designating the Coastal Plain of the Arctic Bostonians at the Boston Tea Party or Cordova residents at toward restricting recreational opportunities and access in Alaska refuges. Alaska Senator Ted Stevens National Wildlife Refuge Wilderness and preventing Ameri- the Cordova Coal Party. "Since so much of Alaska is inaccessible because of geographical barriers sniffed at the idea that Mrazek woulc cans from using the oil and gas that mss/ lie underneath the Our friends have been with us since the beginning, and the lack of infrastructure, the last thing the state needs are federal conserva- be behind any environmental initia- frozen tundra. fighting over the land. The faces and names have changed, tion units with policies discouraging public recreation," RDC said in its comments. tives promoting economic diversity foi The Alaska Coastal Rain Forest Campaign - Orga- but the battles are still the same. "What Alaska does need are facilities and policies which allow greater public use the state. Stevens noted that Mrazek nized by the Southeast Alaska Conservation Coalition and Come join the fight. and enjoyment of its remote refuges and parks. Access to and from the refuges, and the environmental community have the Alaska Center for the Environment, this organization is along with new facilitiesfor recreation and tourism, are needed if these refuges are fought to stop mining, logging and oi armed with several advisors from Washington, D.C., and Ga)/ . . . (Continued from page 2) to be visited and enjoyed by potential users, other than refuge employees and their development in Alaska. Atlanta, Georgia to lock up timber resources in the Tongass to see for yourself what we are up against. friends." 'What would they like us to diver- National Forest, the "Lost Coast" between Yakutat Bay and On a positive note, in August the AWC will be touring Congres- ( -,/ In its comments, RDC pointed out that the draft environmental impact sify to?" Stevens asked. "Maybe we Cape Suckling and the coastal forest lands from Cordova to sional and Administration staff around the state wetlands. Look for statement, as written, is deceptive in that it masks the true extent of proposed could run bed and breakfast opera, Kodiak. us in Sitka, Juneau, Anchorage, Palmer, Bethel, Kwethluk, Wilderness additions by assuming a base acreage which provides for even more (Continued to page 7) Add to these the legion of other special interest lobbies Fairbanks, Nome, Barrow and Prudhoe Bay. Wilderness additions by Congressional actions which have not yet occurred. Page 6 / RESOURCE REVIEW / July 1993 July 1993 / RESOURCE REVIEW / Page 3 pulp mill. "A pulp mill was a definite require- ment for the contract," said Wayne Nicolls, a Forest Service spokesman. ) ) Nicolls said the contract allows for tern- porary closure of the mill, but if it re- mains closed, then the Forest Service might seek to terminate the contract. (Continued from page 1) mill would be "devastating," warned erty tax rate. APC's Roppel would not speculate Sitka Mayor Dan Keck. The seasonal The social costs of the mill's clo- on what itwould take to re-openthe mill, annually to meet environmental man- nature of Sitka's tourism and fishing sure, including unemployment benefits saying "It's clear that it will take some dates. industries could not make up for the and the loss in tax revenues, have yet to time to resolve our differences with the To comply with a newly-proposed year-round loss of high-paying milljobs, be calculated," noted APC spokesman Forest Service or to find some addi- permit requirement,the company would said Keck, a member of the RDC Board Rollo Pool. tional use for the property. Given the have to spend an additional $104 mil- of Directors. "I just bought a house last year and situation, we felt it would be more fair to lion initially and triple its annual envi- When the cruise boats stop coming I'm probably going to have to walk into our employees to offer an enhanced ronmental expenses. These costs can- and the town loses the millworkers, the bank and give them the keys," said and comprehensive severance pro- The pulp mills in Sitka and Ketchikan are the largest employers in Southeast Alaska. The not be passed on to the consumer, the whose salaries average about $45,000 millworker Chris Skoog. "That's the only I gram, rather than to put them in a state mills produce a high-grade dissolving pulp that is used to manufacture rayon, cellophane, company has said. a year, "it's going to be pretty tough thing I can thinkof. The house won't sell food additives and a wide variety of other products used in everyday life. I of long-term uncertainty and financial State officials have recently voiced during the winter," said Keck. now. Property values just went through jeopardy - in the hope that more work concern that burdensome federal red Alaska Pulp accounts for nearly the basement." would be available at our facility any of -- the contract management and who lost their jobs why they can no tape could lead to the demise of both 2,000 direct and indirect jobs in Alaska With strong and escalating prices time soon." changes -- affect all of us in the indus- longer support their families." the Sitkaand Ketchikanpulp mills, send- and pumps tens of millions of dollars for lumber, APC will continue operating I The Ketchikan mill, Southeast try." Congressman Don Young vented I ing the Southeast Alaska economy into into the economy each year. The com- a second facility at Wrangell which pro- Alaska's largest private employer, re- Alaska's congressional delegation his anger at majority Democrats. a tailspin. pany spends over $6 million annually in duces lumber. The Wrangell sawmill 1 sumed operations in June after a six- blamed environmental extremists, the "In their effort to appease the East In response to news of the mill's local contracts and its employees spend employs 235 people. Company logging week shut down. The mill will likely Forest Service and East Coast elitists Coast environmental elitists who have closure, Governor Wally Hickel said over $30 million on local goods and operations will employ up to 500 more have to shut down again next month for the mill's closure. decided to tell the rest of the nation how 'this is the painful result of the policies services. people during the peak season. and might stay closed until October, "The extreme environmental crowd to live their lives, the Democrats in Con- of an uncaring federal government, APC also accounts for nearly a But a permanent closure of the said Martin Pihl, the company's presi- has demanded change after change gress who pushed for strict restrictions policies that are calculated to, sooner quarter of Sitka's water revenues and Sitka mill could result in a restructuring ) dent and general manager. that makes it impossible to sustain this on timber development have thrown or later, put an industry out of busi- 20 percent of its property tax base. As of logging operations in the northern "This is obviously a very sad day in mill's productiveactivity in the Tongass," hundreds of people out of work and ness." a result, the mill's closure eventually Tongass because Alaska Pulp's long- the history of Southeast Alaska," Pihl said Senator Ted Stevens. "They are destroyed Southeast Alaska's second A permanent shut-down of the APC could mean an end to Sitka's low prop- term contract is linked to an operating said. "The difficulties that Sitka speaks the ones who should tell the400 workers largest employer," Young said.

(Continued from page 1) economic activity for our part of Alaska for lively reducing the Forest Service's obliga- unilaterally changed the administration more than three decades," Roppel added. "It's not in anyone's best interest tion to provide timber to APC. of the long-term contract by raising Some of the challenged changes to to let these improper changes "As a consequence, ARC is not receiv- prices and by reducing the time for APC's contract are: ing sufficient supply of saw logs to operate harvesting offered timber. The Forest destroy a successful working itssawmill at full capacity," Roppel said. "It is Service additionally interpreted the act a Comparable Pricing: APC must pay the relationship that has been a shame not to be able to take advantage of in a way that substantially reduces average price of other timber purchasers if providing jobs and year-around the currently good lumber markets." APC's timber volume through the re- those prices are higher than those calcu- economic activity for our part of maining 18 years of the timber harvest lated under the long-term timber contract. Alaska for more than three - Mid-Market Assessment: This is a ques- contract. Other timber buyers may purchase logs tion of whether or not there should be a APC also claims the Forest Service only occasionally, have no continuing pur- decades." -Frank Roppel market-value test before APC is required to used the act to wipe out an economic chase obligation and can speculate on fu- accept and purchase timber from the Forest test in the contract that was used to ture market conditions. government, the volume promisedand Service. The APC contract called for such a determine suitability of timber offered to The Forest Service's interpretation of delivered was measured in sawlog vol- test, but the Forest Service deleted this the company. the comparable pricing clause is like an umes. Any additional utility logs (which requirement, relying on an interpretation of "It's not in anyone's best interest to elevator that only travels in one direction," generally are only usable for man1 ff:y- t^ Act. While a weak world pulp market is a contributing factor in the mill's closure, company let these improper changes destroy a Roppel said. turing pulp) were purchased b~ ot )poppel notedthat the first offerings since officials says the worst damage has come from changes in a 50-year logging contract successful working relationshipthat has included in the total volume. Now the the Tongass Reform Act was passed have that have made a difficult situation unworkable. Above, pulp bales are loaded on a ship. been providing jobs and year-around * Utility Grade Logs: For the first 30 years Forest Service says utility logs must failed this test and that future offerings now of the company's contract with the federal be included in the total volume, effec- being developed will fail, too.

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