51 



Ms. Bailey. Thank you. 



At the beginning of 1993 the Maxxam Corporation restructured 

 Pacific Lumber and issued more than 300 milhon dollars' worth of 

 timber collateralized notes, secured by the timber itself. 



That is going to make it imperative for Maxxam to liquidate 

 those trees to pay off the timber — collateralized notes so sustained 

 5deld won't come into it. 



Mr. Rose. All right. 



Ms. Bailey. Thank you, sir. 



Mr. Rose. Mr. Pombo is here now, and we are short of help. I 

 will time you 2V^ minutes. 



Go ahead, sir. 



Mr. Pombo. Thank you. 



Mr. Rose. Or thereabouts. 



Mr. Pombo. I had another question for Ms. Lanman. 



In your opening statement, you said that this would put an end 

 to the timber wars, and if I am misquoting you, I am sorry, but 

 put an end to the timber wars in northern California. Can you ex- 

 pand on that? 



Ms. Lanman. Yes, I can. Prior to the takeover, there was very 

 little controversy about the logging practices that were occurring on 

 the north coast. There had been a few isolated incidences of citi- 

 zens bringing suit because of damage to water quality, fisheries 

 and wildlife, but after the takeover, there has been an increase in 

 awareness and interest, there has been an increase in public par- 

 ticipation. And because of the massive liquidation of this irreplace- 

 able resource, it has erupted to the point where people — and be- 

 cause of the failure of the regulatory system to protect the re- 

 source, people have had to consistently go to court to stop the deg- 

 radation of these areas. And it has even led to people going into 

 the woods to stop logging, with putting their bodies between bull- 

 dozers, and because of the failure of the system to adequately pro- 

 tect the resource until the issues are heard or until the wildlife bi- 

 ologists at least agree that there won't be irreversible damage to 

 the resource. 



I believe that this bill is a model for how we can sit down and 

 negotiate and also how we can begin to make a transition into a 

 restoration-based economy in our region, which we feel is abso- 

 lutely necessary at this point. And to me, from my perspective, the 

 timber wars erupted right here in the region because of the fact 

 that it is intensively managed, more than 80 percent of the land 

 base is intensively managed in the redwood region by corporate in- 

 terests. I believe, this is a first step toward beginning to resolve 

 that problem. And to begin to dissolve the polarization between 

 people in the community over this issue. 



Mr. Pombo. Will it end, will the timber wars end because the 

 timber industry will end? 



Ms. Lanman. No, sir. The timber wars will end when we are able 

 to make a transition to a sustainable economy, including forest 

 products and including value-added products, as Mr. Stewart has 

 talked about, and including diversifying our economy. 



We have never worked to stop the logging industry. We have 

 simply worked to enforce existing laws in the State and our record 

 shows that very clearly. So we support sustainable logging and we 



