April 4th 2008

The Times-Standard
April 4, 2008

Gov. Arnold Schwarzenegger today issued a statement of support for the Pacific Lumber Co. reorganization plan proposed by Marathon Structured Finance Fund and the Mendocino Redwood Co.

"While it may be possible for an operator to harvest at elevated rates from a given forest for a short period of time, unsustainable forestry practices will devalue the large stock of remaining trees, degrade water quality in streams and tributaries and impair vital habitat for salmon and endangered species - all of which result in detrimental economic impact. Sustainable forestry, harvesting trees at a rate that can be maintained or grown over many decades in a way that keeps or improves the ecological values of the forest, is essential to maximize the long-term value of the forest. ...

"We believe that the MRC/Marathon Plan, subject to the resolution of any remaining bankruptcy-specific issues raised by the California State Agencies, appears to offer the best chance for a reorganized company that is positioned for long-term success, while at the same time enhancing the environment and protecting the local economy. We urge the Court to confirm that plan. We appreciate the Court's consideration of our position, as this is an issue of paramount importance to all Californians."

North Coast Rep. Mike Thompson, D-St. Helena, also issued a statement in support of the Mendocino Redwood plan.

"Mendocino Redwoods Company is a proven and trusted California operator, with a good reputation in Mendocino and Humboldt Counties. They have portrayed exemplary forest practices on their existing properties, earning Forest Stewardship Council Certification on the lands that they manage in Mendocino County. They are industrial timberland owners, they operate a sawmill and they know the business. Their plan provides a level of assurance the people of Humboldt County can rely upon, rather than decision driven by the board rooms of New York or Houston."