maine forest products council may / june...

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May/June 2008 MAINE FOREST PRODUCTS COUNCIL May / June 2008 VOLUME 22, ISSUE 3 IN THE NEWS MFPC Has Strong Showing at CLUP Workshops By Patrick Strauch MFPC Executive Director (Continued on page 4) Presidents Message. . . . . . . . . . . . . .Page 2 Communications Director . . . . ....Page 3 Quality of Place . . . . . . . . . . . . . . Page 3 Natural Resource Task Force. .. . . Page 4 Truck Weight Limits. . . . . . . . . . . Page 5 Legislative Update. .. . . . . . . . . . .. .Page 6 P&C Manage Quebec Timber.. ... Page 8 Wall Street Journal Article . . .. . . Page 9 SFI Campaign to build Habitat House. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 10 Golf Tournament Registration. .. .Page 11 Members of the Maine Forest Products Council and supporters of Maine’s forest products industry turned out in the hundreds to oppose the draft Comprehensive Land Use Plan at recent public workshops held around the state by Maine’s Land Use Regulation Commission during the weeks of April 27 th and May 4 th . Landowners, mill owners, forest managers, sportsmen, and citizens of the Unorganized Territory showed up at hearings from Fort Kent to Portland, unified in their message, to tell LURC that the draft Compre- hensive Land Use Plan must be dramatically altered in order to be acceptable, or simply to start from scratch and try again. A big thank you goes out to all members who participated in the work- shops or submitted comments to LURC. Among the many members of the Council who attended was Doug Denico from Madison, who attended all but one of the workshops. Denico, a small land- owner and 1st Vice President of the Maine Forest Products Council. He attended workshops in Fort Kent, Presque Isle, Millinocket, Rangeley, Portland, Augusta, and Machias. Among some of the comments that were heard at the workshops were: “The anger expressed with the CLUP draft at every session proximate to the jurisdiction should convince you that there are major problems with the language you used revising the CLUP. Some folks in Portland may be okay with the language but that is because, unlike they were told by their leading newspapers, the jurisdiction land is not their land.” Steve Schley of Pingree Timberlands in Bangor.. “The underlying tone of the draft CLUP update portrays the planta- tions and unorganized territories as secluded, barely touched by man wilderness. It is difficult for those of us who live and work in the North MFPC Announces Summer Breakfast Series and Fall Legislative Forums MFPC will be hosting a summer breakfast series and series of fall legislative forums. While the legislative forum schedule is still to be determined, the sum- mer breakfast series will begin in Fort Kent on Tuesday, June 19. On Tuesday, June 24 we’ll be in Jackman, and on Thursday, June 26 we’ll hold a final break- fast in Farmington. The breakfasts will be held from 7:00 a.m. to 9:00 a.m. and will include a complimentary breakfast and presentation by Patrick Strauch and guest members from Maine’s Natural Resource Network. Members of MFPC ar e w elco me and encour ag ed to br ing a pr ospectiv e member . Thursday, June 19, Fort Kent- Presentations by Patrick Strauch & Don Flannery of the Maine Potato Board SPONSORED BY: Irving Woodlands and Key Bank LOCATION: Rock’s Family Diner, 378 West Main St. Tuesday, June 24, Jackman- Presentations by Patrick Strauch & TBA. SPONSORED BY: Plum Creek Timber Company LOCATION: The Four Seasons Restaurant, 121 Main St. Thursday, June 26, Farmington Presentations by Patrick Strauch & Bob Meyers of the Maine Snowmobile Association SPONSORED BY: Maine Farm Credit LOCATION: The Homestead Bakery, 186 Broadway St. (Continued on page 4)

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May/June 2008

MAINE FOREST PRODUCTS COUNCIL May / June 2008 VOLUME 22, ISSUE 3

IN THE NEWS

MFPC Has Strong Showing at CLUP WorkshopsBy Patrick Strauch

MFPC Executive Director

(Continued on page 4)

Presidents Message. . . . . . . . . . . . . .Page 2

Communications Director . . . . ....Page 3

Quality of Place . . . . . . . . . . . . . . Page 3

Natural Resource Task Force. .. . . Page 4

Truck Weight Limits. . . . . . . . . . . Page 5

Legislative Update. .. . . . . . . . . . .. .Page 6

P&C Manage Quebec Timber.. ... Page 8

Wall Street Journal Article . . .. . .Page 9

SFI Campaign to build Habitat House. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 10

Golf Tournament Registration. .. .Page 11

Members of the MaineForest Products Council and

supporters of Maine’s forest productsindustry turned out in the hundredsto oppose the draft ComprehensiveLand Use Plan at recent publicworkshops held around the state byMaine’s Land Use RegulationCommission during the weeks ofApril 27th and May 4th. Landowners, mill owners, forestmanagers, sportsmen, and citizens ofthe Unorganized Territory showedup at hearings from Fort Kent toPortland, unified in their message, totell LURC that the draft Compre-hensive Land Use Plan must be

dramatically altered in order to beacceptable, or simply to start fromscratch and try again. A big thank you goes out to allmembers who participated in the work-shops or submitted comments to LURC.Among the many members of theCouncil who attended was Doug Denicofrom Madison, who attended all but oneof the workshops. Denico, a small land-owner and 1st Vice President of theMaine Forest Products Council. Heattended workshops in Fort Kent,Presque Isle, Millinocket, Rangeley,Portland, Augusta, and Machias. Among some of the comments thatwere heard at the workshops were:

“The anger expressed with the CLUPdraft at every session proximate to thejurisdiction should convince you thatthere are major problems with thelanguage you used revising the CLUP.Some folks in Portland may be okaywith the language but that is because,unlike they were told by their leadingnewspapers, the jurisdiction land isnot their land.” Steve Schley ofPingree Timberlands in Bangor.. “The underlying tone of the draftCLUP update portrays the planta-tions and unorganized territories assecluded, barely touched by manwilderness. It is difficult for those of uswho live and work in the North

MFPC Announces Summer Breakfast Seriesand Fall Legislative Forums

MFPC will be hosting a summer breakfast series and series of fall legislativeforums. While the legislative forum schedule is still to be determined, the sum-mer breakfast series will begin in Fort Kent on Tuesday, June 19. On Tuesday,June 24 we’ll be in Jackman, and on Thursday, June 26 we’ll hold a final break-fast in Farmington. The breakfasts will be held from 7:00 a.m. to 9:00 a.m. andwill include a complimentary breakfast and presentation by Patrick Strauch and

guest members from Maine’s Natural Resource Network. Members of MFPCare welcome and encouraged to bring a prospective member.Thursday, June 19, Fort Kent- Presentations by Patrick Strauch & Don Flanneryof the Maine Potato BoardSPONSORED BY: Irving Woodlands and Key BankLOCATION: Rock’s Family Diner, 378 West Main St.Tuesday, June 24, Jackman- Presentations by Patrick Strauch & TBA.SPONSORED BY: Plum Creek Timber CompanyLOCATION: The Four Seasons Restaurant, 121 Main St.Thursday, June 26, Farmington Presentations by Patrick Strauch & Bob Meyersof the Maine Snowmobile AssociationSPONSORED BY: Maine Farm CreditLOCATION: The Homestead Bakery, 186 Broadway St.

(Continued on page 4)

FOREST PRODUCTS NEWS

Peter Triandafillou

Maine Forest Products Council535 Civic Center DriveAugusta, Maine 04330

(207) 622-9288FAX (207) 626-3002www.maineforest.org

2007-2008 Council Officers

President: Peter TriandafillouFirst Vice President: Doug DenicoSecond Vice President: Dwain AllenSecretary: Don TardieTreasurer: Don White

Executive Committee Members:John GrayKen Lamond

Jim Contino

Executive Director: Patrick [email protected]

SFI Director: Patrick [email protected]

Communications Coord.: James Cote [email protected]

Office Manager: Kerry [email protected]

Administrative Assistant: Sue [email protected]

Forest Products News is published formembers of the Maine Forest ProductsCouncil, a not-for-profit association oflandowners, loggers, foresters, truckers,wood processors and forest products servicefirms.

Articles appearing in this newsletter may bereproduced without permission. Credit isappreciated. Editorial submissions and

suggestions are encouraged.

The Maine Forest Products Council is aproud supporter of:

2

President’s Message, By Peter Triandafillou

This has been a very busymonth for the Council, with theaddition of a new face and thelong awaited work session for theLURC Comprehensive Land UsePlan (CLUP). First, let me welcome andintroduce you to James Cote. He isour new Communications Direc-tor and you will be seeing andhearing from him in the nearfuture. James worked on Senator Mill’sgubernatorial campaign, and forEaton Peabody’s consulting group.Most recently, James worked forWinning Strategies, the firm thatis helping the Council with ourLURC project. He brings an excellent skill setand is a valuable addition to theteam. In addition to communica-tions work, he will work on grassroots membership and participa-tion as well as lending a muchneeded hand in the Legislature. In May, LURC held a series ofwork sessions on the CLUP. Ourindustry and residents of theUnorganized Territories (UT) hada great showing at all the sessions.

We sent a powerful messageto LURC: The proposed

draft is unacceptable to theresidents and landowners of

the region.

It is really gratifying to get thatkind of turnout, and I would like tothank everyone, from Allagash toPortland, who took the time to

show up and speak. We sent apowerful message to LURC: Theproposed draft is unacceptable tothe residents and landowners ofthe region. Many, many people toldthem that the only logical solutionis to go back to the 1997 draft andstart again. We must remain engaged andready to speak again. At present,LURC is continuing the process ofmeeting with groups (includingMFPC) and plans to hold publichearings, possibly later in thesummer. However, there are severalpaths forward and the outcome isnot completely clear. Patrick and James plan onhaving a breakfast series again thissummer. Look for invitations inyour area, and please plan onattending to give us your input. Itwould also be great for you to bringa prospective new member withyou. I wish you all a productive andsafe summer. Please feel free toattend any of the Executive Com-mittee meetings during this period.I hope to see you all at the annualGolf Outing (feel free to laugh atmy miserable golf ) and at theAnnual Meeting in September.

May/June 2008

3

Communications Corner

My first two months here at

the Council sure have been busy!

Among some of the highlights we’ve

experienced in the last few weeks

have been several opportunities to

comment in the press about the

Comprehensive Land Use Plan and

LURC’s public workshops. Don

White of Prentiss and

Carlisle and Patrick Strauch

were interviewed on Port-

land News Channel 6 at the

Portland CLUP workshop

and Patrick was invited to

submit an op-ed about the

CLUP to the Waterville

Morning Sentinel, which

appeared in the Sunday, May

4 issue. Several more op-ed’s

are expected to be submitted

to statewide papers in coming

weeks.

Keep an eye out for my

new monthly column in the

Northwoods Sporting Journal titled

“Woods Watch” which debuts in

June, and an appearance on the

political program “Wildfire” with

George Smith and Harry

Vanderweide in the coming weeks.

We’ll also be sending out a

regular “MFPC Forest News” email

with important media clippings and

an “MFPC Forest Notes” email with

important Council news, along with

our MFPC newsletter in an attempt

to keep members abreast of the

industry’s most pressing issues.

Members of the Maine Forest

Products Council know well how

important it is for their voices to be

heard, and we want to make sure that

the MFPC Newsletter is a place where

guests are welcome to share their

views. Beginning in July, we hope to

solicit a monthly op-ed from a mem-

ber or other interested person. If you

have an idea for an interesting column,

or are interested in submitting a piece,

please contact James Cote at the

MFPC for more details.

We’ll also be meeting with mem-

bers throughout the summer in an

effort to better understand what issues

matter the most for the upcoming

2009 legislative session. During that

time we’ll be starting a new section of

the newsletter to profile and highlight

one member per month. We look

forward to visiting with you!

By: James Cote

Quality of PlaceReport Completed

A final report on Maine’s Qualityof Place was submitted to the Gover-nor on Tuesday, May 6th by membersof the Governor’s Council of Maine’sQuality of Place. The document focuses on manyissues surrounding the importance oflandowner relationships. The lan-guage was modified in reference toLURC development concerns –perhaps in response to MFPCconcerns- the information has notbeen updated to reflected errors in

the data. (See recommenda-tion 6 on page 21 of theSecond Report of theGovernor’as Council onMaine’s Quality of Place,link to site below.) Of particular note, is thecouncil’s conclusion that a“Quality of Place develop-ment strategy is best doneregionally with strong localinput…The developmentand marketing of Quality ofPlace assets, especially naturalresource assets, must balancethe input of increased asset

use with economic opportunity.”These are good principles in buildingsolid plans. “I was disappointed that a greaterconnection to natural resourceindustries was not identified in thereport. We maintain that workinglandscapes is a critical component toMaine’s future Quality of Place.” saidPatrick Strauch You can get the final report onlineby visiting http://maine.gov/spo/specialprojects/qualityofplace/index.htm.

Photos taken at Lurc Workshop

FOREST PRODUCTS NEWS

4

Maine Woods to think of it as wilderness. The North MaineWoods is a privately owned, intensively managed privateindustrial forest.” Linda Alverson, former LURC Chair-woman in Presque Isle. “It seems clear that there is no support for the proposed CLUPby the people who live and work in those areas of jurisdictionthat have taken the opportunity to attend and comment atthese workshops.” Tate Aylward in Portland.“The new CLUP draft contemplates new timber harvestingrestrictions for wildlife habitat, biodiversity and scenic views.Not only are these changes outside of LURC’s purview, but theythreaten the ability for the region to continue to provide supplyto Maine’s mills.” Peter Triandafillou of Huber in Augusta “We enjoy a special relationship with the people of Maine-this draft compromises that relationship. We believe in aComprehensive Land Use Plan, but this draft is seriously out ofbalance.” Patrick Strauch of the MFPC in Augusta. “This CLUP will create a heavy burden on landowners, andits language invites litigation by outside special interest groupswho would love to have this area transformed into a park ofsome kind. We must be careful to not portray landowners as aspecial interest group. They are the regulated body and as suchshould have the most important voice in these deliberations.”Representative Tom Saviello of Wilton in Rangeley. “Let there be no doubt that the will to own long-term hasbeen tested by the paradox that regulations burden to thegreatest extent those owners who have taken the most passiveapproach to change and to development. However therecurrently remains a narrow window of opportunity to keep thisprincipal alive. I fear this CLUP may close it.” ElbridgeCleaves of Prentiss & Carlisle in Machias. “As a mill owner, I am very concerned about what these newrestrictions on cutting and primitive access will do to the supplyof wood to the mills in Maine. More restrictions alwaysincrease the costs of managing and harvesting the wood andwith today’s tough markets the mills can’t stand any moreadded costs – and with the high price of fuel, neither can theloggers.” Jim Robbins of Robbins Lumber in Augusta.

“My vision for the jurisdiction is that it will be a place where

the future generations of foresters and loggers will be working

with the improved quality stands we’ve left them through our

good forest management.” Mark Armstrong of Wagner Forest

Management in Augusta.

The MFPC also wishes to thank all the Legislators

who stood in support of property owners and residents of

the LURC jurisdiction, including Senator Roger Sherman,

Senator Kevin Raye, Senator Doug Smith, Senator Walter

Gooley, Representative Tom Saviello, Representative Herb

Clark, Representative Henry Joy, Representative Jackie

Lundeen, Representative Jeff Gifford, Representative

Wright Pinkham, Representative Pete Johnson, Represen-

tative Joe Tibbetts. A big thanks goes out to Millinocket

Town Manager Gene Conologue, the Washington

County Commissioners, and all other friends who spoke

in support.

The period for the public to submit comments toLURC ends on June 6th. After comments have beenreceived, LURC staff will review and summarize thecomments and present a report to the Commissionerssometime in late summer. The Commissioners will thendirect staff as to what to keep or change in the draftCLUP, and the new draft will go out to public hearings inthe fall of 2008.

Natural Resource AgencyTask Force Announced

The group charged with restructuring Maine’s naturalresources agencies of Inland Fisheries and Wildlife,Environmental Protection, Conservation, Agriculture, andMarine Resources has been named and met for the firsttime on May 28 at the Maine State Arboretum Confer-ence Room in Augusta. As a result of legislative action during the last legisla-tive session, the Governor was directed to appoint a taskforce to work with natural resource agencies to developlong term recommendations to improve the delivery ofservices and efficiencies by the departments. In a letter to task force participants Governor Baldaccisaid, “I have become increasingly concerned that ournatural resource agencies are not thriving in the intensebudget constraints that have existed for a number of years.I am determined to explore all mechanisms to ensure thatfarmers, forest owners, recreationists, fishermen and otherswho benefit from Maine’s natural resource agencies willreceive the programs and services that they need and thatgovernment should provide. “ The task force will be chaired by Karin Tilberg, SeniorPolicy Advisor to Governor Baldacci, and Representative

LURC. . . . . . . . . . . . . . . . . . . . (Continued from page 1)

(Continued on page 5)

May/June 2008

5

Wendy Pieh, Co-Chair of the Joint Standing Committeeon Agriculture, Conservation, and Forestry. Other mem-bers of the task force will include Commissioner PatMcGowan of Conservation, Commissioner DannyMartin of Inland Fisheries and Wildlife, CommissionerBrad Bradstreet of Agriculture, Commissioner DaveLittell of Environmental Protection and CommissionerGeorge Lapointe of Marine Resources. Also on the task force will be Representative DonMarean, Senator Bruce Bryant, Representative TedKoffman, Senator Dennis Damon, Representative BobDuchesne, Representative Ben Pratt, Patrick Strauch ofthe Maine Forest Products Council, Don Flannery of theMaine Potato Board, Jon Olsen of the Maine FarmBureau, Bob Meyers of the Maine Snowmobile Associa-tion, George Smith of the Sportsman’s Alliance of Maine,Julie-Marie Bickford of the Maine Dairy IndustryAssociation, Russ Libby of the Maine Organic FoodGrowers Association, Skip Trask of the Maine Profes-sional Guides Association, Don Kleiner of the MaineBowhunter’s Association, Dennis Smith a citizen angler,Sally Stockwell of the Maine Audubon Society, SebastianBelle of the Maine Aquaculture Association, PatriceMcCarron of the Maine Lobstermen’s Association, JimMarkos of the Maine Shellfish Association, Andy Goodeof the Atlantic Salmon Federation, Tom Doak of theSmall Woodlot Owners Association of Maine, BarryBrusila a consulting forester, Sean Mahoney of theConservation Law Foundation, Peter Didisheim of theNatural Resources Council of Maine, John Delahanty ofPierce Atwood, John Oliver of LL Bean, and John Marshformer head of the Maine Warden Service.Patrick Strauch, Executive Director of the Maine ForestProducts Council, said recently, “After the first meetingI’m encouraged by the commitment of the group to focuson challenging issues.” Ron Beard of the University of Maine CooperativeExtension will facilitate the meetings. The final report isto be submitted to the Governor by November 30, 2008.The public is encouraged to attend meetings of the taskforce.

Maine Senator’s Advocate for In-creased Truck Weight Limits in

Maine and Nationally.

On Tuesday, May 27, Maine’s two United State’sSenators announced their proposal to create a two yearpilot program that would allow trucks to legally carry upto 100,000 pounds on federal highways- as long as dieselprices are greater than $3.50 a gallon. This is the latest effort in a series of unsuccessfulCongressional attempts to allow truckers to transportlarger loads on federally designated highways, usuallyblocked by highway safety organizations. Senators Olympia Snowe and Susan Collins havedesigned the program so states have the ability to opt outand maintain lower weight limits if they desire. In a press conference in front of the Maine MotorTransport Association on May 27, Collins told a crowdthat the bill that she and Snowe have submitted variesfrom that of the bill Congressmen Mike Michaud hassubmitted, because it is directly linked to the price of

Natural Resource. . . . . . . (Continued from page 4)

(Continued on page 9)

Photo taken byYvonne DeMillo

FOREST PRODUCTS NEWS

6

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Legislative Report

With the anticipation of the Comprehensive Land UsePlan workshops, the hiring of a new CommunicationsDirector, and the Council ’s involvement in an array ofother projects, we were unable to complete a report on thefinal days at the Legislature before the deadline for thelast newsletter. Below is my report to finish the session.

Patrick Stauch

LD 2273: “An act to Temporarily Suspend the Rate-

setting Procedures for the Forest Products Industry”(Agriculture, Conservation and Forestry) Sen. Martin –This bill provides for the immediate suspension until June1, 2009 of the requirements of the Maine Revised Stat-utes, Title 26, chapter 18, which regulates rates of com-pensation for forest products harvesting and haulingservices, except for the section of that chapter that allowsharvesters or haulers to form an association for rate deter-mination proceedings. The suspension may be lifted bythe Governor prior to June 1, 2009 if the Legislature isnot in session. This resolve also requires the Departmentof the Attorney General to conduct a study of the state-wide market for forest products harvesting and haulingservices and to submit legislation implementing thedepartment’s recommendations. The final report must besubmitted by January 15, 2009.

This legislation lifts an unfair standard that affected onlyIrving Woodlands but we fought to defeat this in the 121st

Legislature. As part of the arrangement, landowners, loggers,and mills should expect inquiries by the Maine AttorneyGeneral ’s Office before the next session. I expect that they willbe examining contractual relationships and market dynamics.

LD 2257: “An Act To Establish a Uniform Building

and Energy Code”- (Business, Research and EconomicDevelopment) Rep. Smith — This bill defines a uniformstatewide building and energy code, known as the MaineUniform Building and Energy Code, that will replace allbuilding and energy codes adopted by state agencies andmunicipalities.

This bill creates a governing body who will define thesestandards further. My concern is that smaller sawmills whooperate in local markets and do not stamp grade their lumberwill be excluded.

LD 2216: “Streamline and Ensure Adequate Funding

for the Bureau of Air Quality” (Natural Resources) Rep.Koffman — This bill adjusts the annual fee surcharge tolicensed air emission sources. The additional revenue raisedwhen applying this new surcharge to the most currenttoxicity information available, as determined by theDepartment of Health and Human Services, MaineCenter for Disease Control and Prevention, and the mostcurrent emissions inventory, as determined by the Depart-

(Continued on page 7)

May/June 2008

ment of Environmental Protection, will be used to sustainfunding for the core program of the Department ofEnvironmental Protection, Bureau of Air Quality. Thebill also reduces the administrative procedures for billingof annual license fees. Instead of sending out bills forlicenses that expire each month, the bureau will send outbills only once each quarter for the licenses that expireduring that quarter. The nonpayment period for eachlicense is extended from 30 to 60 days to accommodatethis change in billing procedures. Finally, the bill changesthe definition of “air quality score” to “toxicity score.”

This bill primarily broadened the base of facilities paying foran air emissions license. Many of the smaller and medium sizedfacilities will see an increased fee, while the fee on largerfacilities is capped.

LD 2249: “To Protect Lake Water Quality” (Natural

Resources) Rep. Koffman — This bill is submitted by theJoint Standing Committee on Natural Resources pursuantto Public Law 2007, chapter 65. It authorizes municipali-ties to assess annual fees under certain conditions toproperty owners whose properties are accessed by a privateroad. It requires excavation contractors working in theshoreland zone to ensure that a person certified in erosioncontrol practices is in charge of erosion control practices atthe site. It changes the phosphorous compensation fee. Itauthorizes the Department of Environmental Protectionto allow applicants to meet municipal mitigation require-ments in lieu of paying a compensation fee.

The provision for municipalities to access an annual fee waseliminated. It is believed the CLP certification will qualifycontractors as certified in erosion control practices. MFPC willinvestigate further. This section does not take effect until 2013.

LD 885: “An Act To Implement the Recommendations

of the Commission To Study the Costs of ProvidingCertain Services in the Unorganized Territories” (Taxa-tion) Rep. Duchesne — This bill implements the recom-mendations of the Commission to Study the Cost ofProviding Certain Services in the Unorganized Territoriesestablished by Resolve 2005, chapter 125.

The bill changes the formula for assessing the unorganizedterritory for services of the Maine Land Use RegulationCommission by reducing the percentage of state valuation to.013%, changes the increase in the assessment against townsand plantations to .015% and provides that a report onfunding be submitted annually.

The bill delays by one year the provisions relating to trans-portation and reimbursement of transportation of students.The bill also contains a provision authorizing the countycommissioners to enact an ordinance related to road construc-tion, repair, and maintenance on roads in the UnorganizedTerritory in which the county has a property interest.

LD 2074: “An Act To Reestablish Fairness in Corporate

Taxation by Taxing Real Estate Investment Trusts “(Taxation) Rep. Duchesne — Under current law, realestate investment trusts, or “REITs,” which are a type ofcorporation that invests in real estate, are not taxed at thecorporate or entity level, although distributions from theREIT are taxable income to participants in the REIT.This bill taxes REITs at the corporate level at the samerate as other corporations are taxed in Maine. Revenuegenerated by this tax is dedicated to the Land for Maine’sFuture Fund. The bill also amends current law to requirean individual to modify that individual’s taxable incomebased on any items of loss or gain by the REIT that arepassed through the REIT to the individual.

MFPC testified against this bill and the Administrationwas not in support. It was defeated.

LD 2154: “An Act Concerning Technical Changes to the

Tax Laws, Also a section on Authorizing Payment fromUndivided Territory.” (Taxation) Sen. Perry — This billmakes various changes and corrections to the laws govern-ing taxation, of particular interest to UT landowners wasclarification of the authority of the State Tax Assessor toinclude in the establishment of the applicable tax mill ratein the unorganized territory the costs of payments thatthe unorganized territory district is obligated to makeunder a tax increment financing agreement and clarifiesthat the Treasurer of State is authorized to make thepayments obligated under an unorganized territory taxincrement financing agreement after the tax incrementfinancing taxes are paid.

MFPC testified neither for nor against this bill- but togetherwith LD 2229 suggested that TIF’s in the UT needed to beexamined further.

LD 2229: “An Act To Expand the Economic Develop-

ment Benefit of Tax Increment Financing in CountiesThat Include Unorganized Territories” (Taxation) Sen.Kevin Raye — This bill allows a development program fora development district or tax increment financing district

Legislative Report. . . . . . .. .(Cont. from page 6)

(Continued on page 8)

7

FOREST PRODUCTS NEWS

located within the unorganized territory of a county tofund the development activity for that county. (TIFS)

MFPC testified against this bill suggesting that landowners,county commissioners, and the Governor’s Office convene aworking group to better define TIF laws as they relate to theUT. Patrick has met recently with this group to initiate thisprocess.

LD 2251: “An Act To Establish Municipal Cost

Components for Unorganized Territory Services To BeRendered in Fiscal Year 2008-09 and To Require Nota-tion of Tax Enhancement Programs Approved by theCounty Commissioners” (Taxation) Rep. Piotti — Thisbill establishes municipal cost components for state andcounty services provided to the unorganized territory thatwould be paid for by a municipality. The municipal costcomponents constitute the property tax for the unorga-nized territory. In addition, this bill requires that the fiscal adminis-trator of the unorganized territory include in both thereport and proposed legislation submitted annually to theLegislature a notation as to any tax enhancement pro-grams that have been approved by the county commission-ers. MFPC testified in favor of this bill and found cost compo-nents to be in order.

LD 2283: “An Act to Implement Recommendations

of the Governor’s Task Force on Wind Power Devel-opment” LD 2283 created an expedited permitting areafor grid-scale wind energy development as a result of theGovernor’s Task Force’s recommendations.

I had concerns with the lack of representation by landownersin the process and expressed this to both the chairman, AlecGiffen, and the group. Nevertheless, in the final bill I testifiedagainst section 3457 that dealt with rulemaking for scenicviewpoint and scenic inventory. Because these rules have broadpolicy implication for forest landowners and the effect theywould have on opportunities and restrictions on this land, Irequested unsuccessfully that these rules be considered majorsubstantive changes and not routine technical.

We plan on preparing a final legislative report on allof the bills that we defeated and passed and the implica-tions of that legislation on your business. We willcomplete this as soon as possible.

Prentiss & Carlisle to ManageQuebec Timberland

Prentiss & Carlisle president Donald P. White an-nounced on May 19 that the 85-year-old forest resourcemanagement firm will oversee 42,000 acres of timberlandlocated 25 miles north of Quebec City. The land is ownedby Quebec Forestlands, LP, an investment fund of TheForestland Group (TFG). Prentiss & Carlisle (P&C) now manages approximately1.5 million acres of timberland throughout the UnitedStates and Canada.White believes that the project, to be led by P&C vicepresident Bill Miller, will strengthen P&C’s Canadianbusiness relationships.

“We view this as a building blockwith our neighbors to the north,” said

White. “We have a long business history with Canadian firms, so this new

opportunity in Quebec is a natural fit.”

“We view this as a building block with our neighborsto the north,” said White. “We have a long businesshistory with Canadian firms, so this new opportunity inQuebec is a natural fit.”TFG’s managing director Chris Zinkhan said, “We arealways pleased to expand the forest management relation-ship between The Forestland Group and Prentiss &Carlisle. The firm’s in-depth knowledge, broad experiencewith timber markets, and dedication to sustainabilityconsistently translate into excellent, highly professionalforest management.” Prentiss & Carlisle is an 85-year-old forest resource man-agement firm with offices in Maine, Wisconsin, Michigan, andQuebec. The firm manages about 1.5 million acres of timber-land in the US and Canada, and in February of 2008 receivedFSC and SCS certification from Scientific CertificationSystems (SCS), a Forest Stewardship Council-accreditedauditing firm, for responsible stewardship of 748,000 acres ofMaine forestland. The Forestland Group is the largest private owner ofhardwood timberlands in the United States. The companycontrols more than three million acres of timberland in the US,Canada, and Latin America. TFG was the first TIMO in theworld to have its entire portfolio Forest Stewardship Council

certified.

Legislative Report. . . . . . .. .(Cont. from page 7)

May/June 2008

9

Peter TriandafillouResponds to the Wall Street Journal

The following piece by Peter Triandafillou is a response to anarticle written by Conor Dougherty published in the WallStreet Journal on April 15. You can find the article online at:

http://www.mindfully.org/Health/2008/Employment-Health-Care-15apr08.htm

Mr. Dougherty, Your excellent article on the rise of the health careindustry that featured Bangor, Maine covered the factswell. It is true that employment in Maine’s manufactur-ing facilities, including pulp and paper mills, has de-clined, and that the healthcare industry in the region hasexpanded. However, we must distinguish between declines inmanufacturing vs. manufacturing employment. The forestproducts industry remains Maine’s largest, contributingbillion’s per year to the economy. Paper production iscomparable to what it was in the 80’s and pulp andlumber production are higher. The productive capacity ofthe industry remains robust, in spite of some high profilebankruptcies and closures. With the exception of EasterFine Paper, the pulp and paper mills that closed are nowrunning under different ownership. What has changed istotal employment in the sector. This should not come as a surprise. All manufacturingenterprises must become more efficient or perish. SinceMaine’s paper production has remained relatively flat,total employment has declined, and we have not replacedthose jobs with ones in new manufacturing industries.These employment losses are painful and dislocating, andthe continued economic strength of the forest productsindustry is not a comfort to those who no longer findwork in it. Your article correctly points out the transitionto employment in the health care arena, with bothpositive and negative results. However, although it is not within the scope of yourarticle to delve into the details of the changes in Maine’sforest products industry, as someone who is part of it Icannot help but take exception to its repeated portrayal asa “dying industry”. It frankly is anything but. Besides my role at Huber Resources Corp, which isone of the larger timberland owners and managers inMaine, I am currently President of the Maine ForestProducts Council.

Thank you for your article and time.

Peter Triandafillou

Please notify your co-workers, employees, contractorsand vendors. These meetings are important for thegrowth of the Maine Forest Products Council! The fall legislative forum series will take place inBangor, Dover, Machias and Sanford. Dates and locationsare to be announced. Breakfast series meetings may qualify for 2 hours,Category I, Licensed Forester continuing educationcredits. Formal board approval is pending. Attendance atthe meetings will also qualify loggers for CLP credits.

Prentiss and Carlisle will be sponsoring a fall legisla-tive forum in Bangor. If you are intested in sponsoring alegislative forum in the fall, please let us know.

Thanks to all our sponsors. The breakfast isfree to all participants, but we do need an accu-rate head count for the caterer. Register for abreakfast by contacting Sue McCarthy at 622-9288.

diesel. That mechanism, combined with the fact that stateshave the opportunity to opt out of the program, may proveto be enough give the bill passage. Collins hopes to tie thebill to other important legislation being worked in Con-gress, such as a second economic stimulus bill proposal, orenergy legislation. In a statement, Snowe said, “This outdated patchworkof weight limits that differs from state to state not onlythreatens smaller vehicles, but in some areas also places thesafety of pedestrians and the motor carriers themselves atrisk.” Such legislation would be a welcomed change totrucking outfits, especially in Maine. With diesel pricesnow pushing five dollars a gallon, the increase in capacityfor truck drivers may mean the difference between earninga profit and closing shop. Whatever proposal passes in the Senate must also beapproved by the House.

Truck Weight Limits. . . . . .. .(Cont. from page 5)

FOREST PRODUCTS NEWS

10

Maine SIC ContributorsMaine SIC ContributorsMaine SIC ContributorsMaine SIC ContributorsMaine SIC Contributors

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To all the Turkey Hunters out there......Sorry if this one got away

Better Luck Next Season!!!!

May/June 2008

11

Maine Forest Products Council

2008 Summer Golf Tournament Registration Form

____ Please Register as a Team or____Please Register individual (MFPC will arrange for partners)

To secure your spot in the tournament full payment is required by June 30, 2008Fill in the informat ion above and mail registration and payment to:

Maine Forest Products Council, 535 Civic Center Dr, Augusta, ME 04330Fax (207) 626-3002 or call (207) 622-9288 or e-mail [email protected]

PLEASE NOTE: Due to guarantees, we are unable to offer refunds on no shows or cancellations after July 1, 2008, 5:00 pm”

ALSO OPEN TO NON-MEMBERSSponsorships

Availablecontact Brian Flewelling

(207)-764-9427

Name CompanyHandicap (21 Max)

Amount Enclosed

If you have any items for the golfers goodie bags or

raffle items, please contact Sue McCarthy 622-9288

July 10, 2008Play Rain or Shine

4 Person Scramble Format

Fee $95 per personIncludes 18 holes of golf w/cart & reception

Check in 12:00- 12:30 pm –Shotgun start 1:00 pm

You’re Invited to the Maine Forest Products CouncilSummer Golf Tournament

BANGOR MUNICIBANGOR MUNICIBANGOR MUNICIBANGOR MUNICIBANGOR MUNICIPPPPPAL 18 HOLAL 18 HOLAL 18 HOLAL 18 HOLAL 18 HOLE GOLE GOLE GOLE GOLE GOLF F F F F CCCCCOOOOOURURURURURSESESESESE

FOREST PRODUCTS NEWS

The Maine Forest Products Council535 Civic Center DriveAugusta, Maine 04330

JUNE

12 Exec. Committee 9:00am – 12 noon Augusta, MFPC

JULY

10 Exec. Committee 9:00am – 12 noon Augusta, MFPC

10 Summer Golf Tournament 12:00 - Bangor

AUGUST

7 Exec. Committee 9:00am – 12 noon Augusta, MFPC

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21-22 Annual Meeting Sunday River

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