”In the end it was not only Hurwitz and the enviros who got what they wanted from the demise of PALCO,...It was our county government as well.”

◼ The Headwaters Fund -- a story of desertion and betrayal - Tim Martin/Here's a Thought/Times-Standard

The bankruptcy of PALCO and the sale of Headwaters cost (Bert Silva of Rio Dell) and many other timber workers their jobs. As part of the settlement and purchase agreement the state and federal governments awarded Humboldt County $18 million as compensation. In March of 2007 then-Rep. Virginia Strom-Martin and then-Gov. Gray Davis posed for a photo on the steps of the Humboldt County Courthouse, holding a giant check for $12 million. On the memo line it read: “For jobs and job retraining for displaced workers.”

That check offered ex-PALCO workers and their families a glimmer of hope, at least for a short time. Then it became a nightmare.

At the recommendation of Supervisors Bonnie Neely and John Woolley, the Humboldt County Board of Supervisors adopted a Headwaters Fund Charter to outline its purpose and structure and to justify the emptiness of their impending actions. The money would be used to “support the growth of industry clusters; to increase the number of sustainable jobs that pay at or above the median income; and to enhance the quality of life for residents of Humboldt County through projects that promote healthy communities and protect and enhance the natural environment.”

In other words it was going into a private slush fund. This seemed to be a good all-purpose way for local representatives and moneyed nobility to tell PALCO workers and gyppo loggers, “We're taking your money. Deal with it or don't.”

...Headwaters funds have since been spent on an upgrade at Buckhorn Summit on State Route 299, an expansion of air service from the Arcata-Eureka Airport to Los Angeles, and loans to various local businesses. $750,000 went to a Forestry Products Initiative aimed at convincing California residents to choose redwood over wood-plastic composite lumber when building decks. What about job retraining for displaced PALCO employees? Why, that money was being used to “offset job losses.”

...Humboldt County Economic Development Coordinator Jacqueline Debets also told Silva that Headwaters money had never been reserved for jobs and job retraining. Evidently, there were more important places for it, like the Orick rodeo grounds restroom facility ($50,000), Internet access for the Hoopa Valley Tribe ($35,000), and septic improvement for Willow Creek ($35,000)....

How are you going to do that, Estelle?

Candidate Estelle Fennell issued a statement this week alleging that Supervisor Roger Rodoni has watched a job loss “epidemic” during his time in office.... Fennell stated that it is clear to her that the Second District has suffered more than others when it comes to overall timber job losses, which she said she would change if elected.

How are you going to do that, Estelle?

Are you in a position to call off the dogs? Bring back all the mills? All the trucking companies? Timber Yes. Fraud NO. is a nice bumper sticker. It won't fix what has happened here.

Maybe if you could go back in time you could solve the Headwaters deal, stop Earth First! Stop the lawsuits. Stop the Park Expansion. Save the Mills, at least a few.

Too bad you can't. 'Cause then there would be no Ken Miller, no Humboldt Watershed Council shams. No Richard Salzman. No Paul Gallegos. All your buds. They haven't shown that they can fix anything.

SoHum Parlance: Ed Denson's questions for Estelle (or anyone else)

Sexual harassment suit filed against John Burton

LA Times - Sexual harassment suit filed against John Burton
Executive director of Burton's foundation sues him for sex harassment

Words to remember

"Once the deal was struck, however, our work was far from over."

Shellenberger & The Rose Foundation

Pieces of the puzzle. Where the big money comes from? Evidence of the pressure tactics exerted on all levels. Michael Shellenberger, "The Rose Foundation," "The Committee of Concerned Maxxam Shareholders," "As You Sow Foundation" (seen that name recently.)

This isn't just passive donations, "Rose Foundation" was intensely involved, according to reports, in the negotiating of the Headwaters Deal, actively lobbying government officials, and pressuring for the "Debt for Trees" swap.

The following is part of a scheme to get their reps on Maxxam's board. A press release, one of many bits of information. This isn't even the most interesting piece - How they pressured them is another piece T/K (to come).

***
(Communications Works logo)
Communication Works
FOR IMMEDIATE RELEASE May 10, 1999

Reporters: Call For Interviews With Metzenbaum or Mikva
CONTACT: Michael Shellenberger, Katrina Muniz, 415-255-1946
(cell: 415-398-4001)
Steelworkers: David Foster, Director, 612-623-8045 (cell:
612-710-1700)
Jon Youngdahl, cell: 612-810-8788; Rose Foundation: Scott Adams,
Tim Little, Jill Ratner, 510-658-0702

MAXXAM SHAREHOLDER GROUP TO BRIEF REPORTERS ON EFFORTS TO
IMPROVE CORPORATE GOVERNANCE AT MAXXAM

Who: Jill Ratner, Rose Foundation for Communities and the Environment
Tom Van Dyck, As You Sow Foundation
Dave Foster, United Steelworkers of America

What: Press Conference
Where: Crowne Plaza Hotel: Houston Galleria
2222 West Loop South, Houston (tel. 713-961-7272)
When: 12:00 Noon, May 18 (Day Before Maxxam Shareholder Meeting

The Committee of Concerned Maxxam Shareholders will brief reporters about their campaign to elect two independent directors to the Maxxam board and to improve corporate governance at the company.

The Committee's proxy materials note that Maxxam recorded a net loss of $57.2 million for 1998. Business Week named Maxxam's board the 10th worst in the list of "The Worst Boards of Directors" and called it a "tiny board with little business
experience dominated by CEO" Charles Hurwitz (Dec. 8, 1997). Apart from performance issues, the proxy materials also cite several factors that, in the Committee's opinion, demonstrate a need for independent directors and corporate reform.

The briefing will take place on May 18, one day before Maxxam's annual meeting, which is scheduled to begin at 8:30 AM on
Wednesday, May 19, 1999 at the Waterwood National Resort and Conference Center in Huntsville, Texas.

The Committee is urging holders of Maxxam common stock to elect former U.S. Senator Howard Metzenbaum and former federal Judge Abner Mikva to the two board seats filled by owners of common stock. The other three seats on Maxxam's board are chosen by the common and preferred shareholders voting together, with preferred shares outvoting common shares 10 to one.

Participating in the press briefing on behalf of The Committee of Concerned Maxxam Shareholders are Tim Little and Jill Ratner of the Rose Foundation, and David Foster of the United Steelworkers of America. Also participating is Tom Van Dyck of the As You Sow Foundation, which is sponsoring one of the two shareholders resolutions, but is not a Committee member. In proxy materials circulated to Maxxam shareholders, the Committee explains why it believes that Maxxam needs independent directors and governance reforms.

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* "Specifically, allegations of fiduciary lapses have surrounded Maxxam's CEO and Chairman, Charles Hurwitz. In April 1997, the Delaware Court of Chancery ruled in a case brought by minority Maxxam shareholders that Mr. Hurwitz had engaged in self-dealing with loans that were not found fair to the Company . . . . In addition, Maxxam faces potential liabilities in two separate legal proceedings based on the failure and subsequent $1.6 billion bailout of United Savings Association of Texas, a savings and loan association that Maxxam is alleged to have controlled. . . . These suits and related litigation have already been costly to the Company, which has paid approximately $40,000,000 in litigation expenses, including Mr. Hurwitz's expenses."

* "In 1997 and 1998 the California Department of Forestry and Fire Prevention ("CDF") suspended the timber operator license of Maxxam's Pacific Lumber subsidiary twice in a twelve month period, based on 128 cited violations of state forest practice rules. The most recent license suspension lasted over three months."

* "Maxxam's Kaiser Aluminum Corporation ('Kaiser'), 63% of whose outstanding common stock is held by Maxxam, is embroiled in a serious labor dispute, the longest in Kaiser's history. The Committee believes that this dispute and the associated costs were avoidable . . . If the NLRB [National Labor Relations Board] does decide to file a complaint, such a complaint could allege that KACC [Kaiser Aluminum Chemical Corporation] engaged in an illegal lockout. That contention, if established, could result in gross back pay liability of up to $3 million per week from January 14, 1999."

* KACC reported losses of $50 million in the fourth quarter of 1998 owing to the strike, and Kaiser reported a net loss of $38.9 million in that quarter."

* "In addition, serious accident rates and worker compensation claims increased at KACC since the strike began. According to the Occupational Health and Safety Administration ("OSHA") safety logs, serious workplace injuries increased 138 percent in the fourth quarter of 1998 over the average of KACC during the first three quarters of 1998 prior to the labor dispute."

* In addition, both Kaiser and Pacific Lumber have experienced tragic fatalities that the Committee believes could have been prevented. In October 1997, a 33 year old Kaiser mechanic died when he was crushed beneath the bucket of a front-end loader he was repairing. The Washington State Department of Labor and Industries found Kaiser at fault in the incident, cited Kaiser for five safety violations, and fined it $35,000. In September 1998, a Pacific Lumber employee logged a tree into a group of protesters, killing a 24 year old man. Attorneys for the young man's family have publicly announced that they expect the logging incident to be the subject of a lawsuit seeking damages."

The following may be deemed to be "participants" in this solicitation: The Rose Foundation for Communities and the Environment, which owns 50 shares of Maxxam common stock; Jill Ratner and Thomas W. Little, who own 90 shares of Maxxam common stock as tenants in common; the United Steelworkers of America, which owns 1002 shares of Maxxam common stock; As You Sow Foundation, which owns 100 shares of Maxxam common stock; Howard M. Metzenbaum, who does not own Maxxam stock; and Abner J. Mikva, who owns 50 shares of Maxxam common stock. The foregoing (except
the As You Sow Foundation) constitute the members of The Committee of Concerned Shareholders and the two nominees for
Maxxam common director.

Michael Shellenberger, Director
Communication Works
tel: 415-255-1946, fax: 415-255-1947
http://www.communicationworks.org
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