181 



L-P has other serious civil and criminal pollution violations as well. As revealed in L-P's 

 most recent Securities and Exchange Commission quarterly filing (form 1 0-Q, period ending 

 March 31, l<)96)(hereinat1er "March 1996 L-P 10-Q"): 



• The United States Department of Justice has stated its intention to seek civil penalties 

 from KPC for Clean Air Act violations at the Anette Island hemlock mill. 



• In March 1996. an "information" was fried in the US District Court for the Eastern District of 

 Washington charging l,-P with two misdemeanor counts related to alleged record-keeping 

 violations in connection with the disposal by an independent contractor of transformers from a 

 mill owned by L-P in 1991 



• In June 1995, a grand jury returned an indictment in the US District Court in Denver, CO L- 

 P has been charged with 23 felony counts related to environmental matters at its Montrose, 

 CO oriented strand board mill, including alleged conspiracy tampering with opacity 

 monitoring equipment, and making false statement under the Clean Air Act. The indictment 

 also charges L-P with 25 felony counts of fi"aud relating to improper use of a trademark as a 

 result of L-P's alleged tampering with the procedure for the independent certification of its 

 OSB product performance 



• L-P has been named a defendant in at least 12 purported class actions filed in various 

 jurisdictions, as well as numerous non-class action proceedings because of alleged unfair 

 business practices, breach of warranty, misrepresentation, conspiracy to deft'aud, and other 

 theories related to alleged defects, deterioration or failure of OSB siding products In 

 addition, four other OSB-related actions have been brought between July 1995 and February 

 1996 



• L-P has also been sued by its stockholders for failure to disclose or improper disclosure 

 related to the above matters 



• International Paper (IP), former employer of L-P CEO Suwyn, sued L-P in January 1996 

 claiming that Suwyn's employment with L-P violated a previous employment agreement he 

 had with IP 



The Delegation's, and L-P's arguments will not fly . 



The Delegation and L-P have advanced several arguments in support of these bills: 



1. Delegation/L-P Claim: L-P must have a new contract because the Forest Service hasn't 

 given them enough timber According to CEO Suwyn, the shortfall in timber over the last two 

 years was 120 mmbf ' The Forest Service's shortfalls are what has caused KPC to lose money 



'Oral testimony before this Commillee. June 29, 1996, Juneau. AK 



11 



