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Prr-co Hit With Lawsuit

Two former forestry officials have filed a "whistleblower" suit on behalf of the state of California against Pacific Lumber Co., Scotia, Ca., and its owners, for allegedly defrauding millions of dollars from the state.

Richard Wilson served as director of the California Department of Forestry and Fire Protection when the 1999 Headwaters Agreement was developed. Chris Maranto was a CDF forest resources expert. The two allege that PALco did not comply with the terms of the agreement, which was supposed to spare some of the world's oldest and largest trees.

"Simply put, the people of California didn't get what they paid huge amounts of money for, namely a sustained-yield plan based on the truth, with [the promise from] the company that it would provide good jobs and a healthy economy over the long term," said Wilson.

According to the lawsuit, Palco's computer-simulation model for the sustainable-yield plan was manipulated to include hardwood timber, while the written plan and actual on-theground implementation was based on conifer harvests only.

The plaintiffs are asking that PALco pay for losses and damages to the state as a result of the violations - including civil penalties of up to $10,000 for each and every violation of California codes. They also want Palco to pay all costs of the trial, which has been put on hold because of the company's ongoing bankruptcy proceedings.

Pelco denied the allegations and said it has fulfilled its obligations under the agreement. "The allegations are eroneous and we believe we will prevail," said Andrea Arnot, director of communications. "This suit is an attempt to undermine the historic Headwaters agreement."

Pelco filed its own lawsuit in California in December, seeking to recover damages for what it claims is "serious harm that has been inflicted" by the state's breach of the Headwaters agreement. According to its suit, the state's actions have prevented the company from harvesting enough timber to remain economically viable.