Victory! Plum Creek Drops Easement Change

I slept in after a quiet and lovely New Year’s Eve. I was planning an equally pleasant morning, only to find myself practically cursing the new year when I opened the paper. Above the fold was a huge headline with Undersecretary of Agriculture Mark Rey’s proclamation that he would complete the renegotiation of road easements with Plum Creek Timber Company before leaving office at the end of the month.

What a brutal way to start the new year – one more giveaway by the Bush Administration. So imagine my surprise when I received an email this afternoon with the following heading, “Plum Creek Pulls Out.” Attached to the email was the formal letter from Plum Creek CEO Dave Holley, announcing that they would no longer continue to pursue a renegotiation of the easements with the Forest Service. (I would attach the letter here, but we had a major website failure over the holidays, and most functions aren't working).

Wildlands CPR worked with the Clark Fork Coalition, Trillium Asset Management Corporation and Newground Social Investment, to pursue a shareholders strategy to challenge Plum Creek’s continued engagement in this process. We provided extensive assistance to the investment firms about the impacts, questionable legality, and environmental and economic consequences of the proposed renegotiation. The investment firms then sent a letter to Plum Creek on behalf of a number of Plum Creek shareholders, asking that they cease all negotiations to change the road easements. The shareholder letter received excellent local media attention, but Plum Creek didn’t seem to waiver. As a matter of fact, they wrote back, in a guest opinion in the Missoulian, that they didn’t think the investment firms truly represented any shareholders (which was patently false).

After more back and forth between Plum Creek and the investors, the investment firms developed a specific type of shareholder resolution, that would have resulted in continued bad public relations for Plum Creek. That resolution was submitted to Plum Creek in November, and remains on the schedule for the shareholders meeting this spring.

Happily, it appears that resolution may no longer be necessary (though Plum Creek has other outstanding issues that these investors are also trying to address). It also appears that a lot of land in the wildland/urban interface will remain in the status quo (which means it could be developed, but each individual land owner will have to negotiate their specific easements with the Forest Service, thus making development more difficult).

While the status quo isn’t perfect, this is still a huge victory!! The renegotiation of easements would have made it profoundly easier for Plum Creek to sell off some of their lands for development. At a presentation this fall, the CEO stated that about 2 million acres are currently being considered for sale.

And while we are thrilled with this victory, we also understand that there were many other factors that contributed, it really was a “full-court press.” Other pressure included:
  • the unceasing pressure and scrutiny of the Missoula County Commissioners in particular, in addition to other county commissioners;
  • the constant pressure by Senator Tester’s office to derail this renegotiation;
  • the recent GAO report that implied, strongly, that the renegotiation wasn’t legal;
  • the real estate meltdown; and
  • the change to the new administration and the likelihood Plum Creek would have had to spend a lot of money and political capital defending the new easements in the courts and with a less friendly administration.

So thanks to everyone who worked on this issue, and let’s hope that today’s news bodes much better for 2009 than the initial story I read about this on New Year’s Day.


Comments

Plum Creek plans for Clearwater Valley

Thank you so much for your efforts in bringing about Plum Creek's recent change of heart. There are lots of other heroes in that story as well, including Senator Tester, Missoula County officials, and numerous activists and other citizens. I like to think that Plum Creek, with its tendency towards arrogance, may be learning something about the importance of public input in the context of land use planning in Montana. We'll see. This fight over the scope of the Plum Creek-Forest Service road easements, of course, was never more than one battle in a larger struggle against Plum Creek's plans to undertake large-scale residential development in the forests of western Montana. The central battleground in this struggle is at the local level. Unfortunately, the planning and zoning laws in Montana are weak and badly in need of reform, giving Plum Creek the upper hand. Historically, Montanans have greatly cherished their property rights; and as a result, vast swaths of private land in the state remain unzoned. In many areas, such as the Seeley Lake Regional Planning area in Missoula County's Clearwater Valley, county-level planning and zoning efforts are just getting underway. The results remain unknown. As the key player in many of these dramas, Plum Creek, as one would expect, has every intention of exercising its property rights to the fullest extent to resist attempts to scale back its environmentally destructive vision. In other words, historical preferences in Montana for a libertarian approach to land use regulation will be used not by yeoman ranchers and farmers to protect their way of life but by a giant corporate interest in order to maximize its profits. (Plum Creek is actually a “real estate trust“ and not a corporation.) The first object of legislative reform -- appropriate for the current legislative session -- is the statute that gives Plum Creek, as a large owner of timber lands, the ability in some instances to exercise a veto power over zoning regulations enacted by a democratically elected county board. This prospect is very real with respect to the pending Seeley Lake Regional Plan and related zoning, which will apply to some of the most magnificent and sensitive lands in the lower 48 states. Thus, Plum Creek, a for-profit business, stands ready to nix Missoula County's pending attempt to create an environmentally sensitive Regional Plan in one of the most nation's most pristine and breathtaking landscapes. Paradoxically, despite Montana’s traditional solicitude for private property rights, Montana’s constitution, adopted in 1972, includes language elevating environmental values to a higher level than can be found in any other state constitution. In Montana, each resident has an alienable individual right to a clean and healthful environment, and the Legislature has a constitutional duty to make this right real and enforceable. The Legislature is also charged with providing "adequate remedies for the protection of the environmental life support system from degradation" and providing "adequate remedies to prevent unreasonable depletion and degradation of natural resources." (See MONT. CONST., arts. II, § 3, IX, § 1.) The Montana statute giving Plum Creek this veto power is of dubious legal validity in light of such inspiring constitutional language and the Legislature's express duty to protect the environment rather than leave it open to assault. The veto statute flouts environmental values by allowing large landowners to resist governmental attempts at environmental protection in favor of the pursuit of private profit. The statute is also patently undemocratic in that it creates a preferred class of citizens who can resist the exercise of governmental power and authority in a way that no ordinary citizen can—and at the expense of the environment. Further, the statute delegates what amounts to unbridled legislative power to private parties (including, as a practical matter, corporations) who are free to pursue their naked self interest at the expense of the public welfare. Similar statutes in other states have been struck down in court. The Montana Legislature should avoid the court fights that will inevitably occur over this veto provision by eliminating the provision in its current legislative session. I encourage all interested citizens to immediately contact their legislators about authoring or supporting such legislation. The deadline for new bills is virtually at hand. The temporary slow-down in the Montana vacation home market has provided a temporary "pause" that will allow time for Montana to retool its planning and zoning laws before individual counties finalize pending planning and zoning processes such as the one applicable to the Seeley Lake Planning Area.

Plum Creek/Montana zoning laws

It was good news that Plum Creek saw the wisdom of not consummating a deal with the Forest Service that would have led to both bad publicity and legal challenges that were likely to succeed. There is still a need, however, for continued vigilance with respect to Plum Creek's plans to undertake large-scale residential development in the beautiful forests of western Montana. The land use battle now shifts to the county level, where in some places planning and zoning are being introduced for the first time. For example, Missoula County will soon review the proposed Seeley Lake Regional Plan, which covers the magnificent drainage of the Clearwater River. Plum Creek has a well-known desire to build hundreds of residential units in the area, which provides habitat for numerous endangered, threatened, and special status fish and wildlife species. Unfortunately, the planning and zoning laws in Montana are notoriously weak. Because Montanans have historically cherished their property rights, the State and counties have imposed only the most minimal limitations on environmentally damaging land uses. This limited approach to environmental regulation and land use planning has left vast swaths of ecologically sensitive landscape without the protections that can be imposed through land use planning and zoning. And Plum Creek, as one would expect, has every intention of exercising its property rights to the fullest extent as Missoula County and other counties attempt to introduce zoning and planning onto Plum Creek lands. Thus, traditions and legal rules reflecting the values of yeoman ranchers and farmers will now be invoked by a large corporation in pursuit of profits. (Plum Creek is actually a “real estate trust,” and not a corporation; as a result, it enjoys lower federal tax rates.) The proposed Seeley Lake Regional Plan, recently delivered to the Missoula County Planning Board from the volunteer Seeley Lake Community Council, will be the subject of intense controversy. Although the draft plan would allow Plum Creek to build hundreds of residential units either spread throughout large forested areas or, through the use of "clustering," in high concentrations within a larger area, Plum Creek has said that the proposed plan is unfairly restrictive and does not allow for as much new residential development as Plum Creek would like. In voicing these complaints, Plum Creek has either expressly or impliedly relied on a threat to exercise a power it enjoys under Montana statutory law. This power allows Plum Creek, as an owner of more than 50% of the forest land in a proposed zoning district, to veto a zoning decision duly enacted by a democratically elected board of county commissioners. This tilted regulatory playing field gives Plum Creek something approaching a feudal lord's power to "dictate terms" to Missoula County and other similarly situated counties. Such a state of legal affairs is simply unacceptable. If Plum Creek's current vision becomes reality, the face of western Montana will be changed for the worse forever. Although Plum Creek, like any private land owner, has a constitutional right to voice an objection to any zoning action that would eliminate all reasonable economic use of its property, Plum Creek has no inherent right to undertake significant amounts of residential development in sensitive forests that include some of the most precious habitat in the lower 48 states. Continued timber harvesting with appropriate mitigation may be a less impacting land use in these areas; and it is presumptively an economically viable use as the traditional use for many decades. The fact the Plum Creek could make more money more quickly building houses than cutting trees does not give Plum Creek a legal right to build those houses regardless of the environmental consequences and the economic and fiscal costs associated with increased service demands in remote areas. Nor does Plum Creek have any reasonable investment-backed expectation of a right or privilege to pursue residential development in forested areas based on past actions of, or decisions by, Missoula County or the State of Montana. It is certainly true that the demand for wood products may be down temporarily. This fact, however, does not give Plum Creek the right to demand governmental cooperation in the liquidation of its assets by selling off forests for development. Paradoxically, despite Montana's traditional solicitude for private property rights, Montana's constitution, adopted in 1972, includes language elevating environmental values to a higher level than can be found in any other state constitution. In Montana, each resident has an alienable individual right to a clean and healthful environment, and the Legislature has a constitutional duty to make this right real and enforceable. The Legislature is also required to "provide adequate remedies for the protection of the environmental life support system from degradation" and to "provide adequate remedies to prevent unreasonable depletion and degradation of natural resources." The Legislature has obviously failed in these duties. On paper, Montana has the best constitution in the country on the subject of the environment. In practice, Montana is way behind most other states in actually protecting the environment. The Montana statute giving Plum Creek this veto power is of dubious legal validity in light of such inspiring constitutional language. The veto statute flouts environmental values by allowing large landowners to resist governmental attempts at environmental protection in favor of the pursuit of private profit. The statute is also patently undemocratic in that it creates a preferred class of citizens who can resist the exercise of governmental power and authority in a way that no ordinary citizen can -- and at the expense of the environment. Further, the statute delegates what amounts to unbridled legislative power to private parties (including, as a practical matter, corporations) who are free to pursue their naked self interest at the expense of the public welfare. Similar statutes in other states have been struck down in court. Because the Montana Legislature has fallen short on its duties under the 1972 constitution, some bold lawmaker should take up the cause of modernizing the state’s planning and zoning laws During the current legislative session. The first target should be the statute giving Plum Creek the veto power described above. This statute effectively gives a huge for-profit business the ability to resist environmental regulation it does not happen to like. The wishes of the rest of us don’t matter; nor do the environmental consequences of such a veto. This kind of situation is unthinkable in most states. If the Legislature doesn’t act, the question of whether this statute is lawful will inevitably end up in court. There the statute seems doomed. In the meantime, Missoula County should complete the planning process for the Seeley Lake Regional Plan area with the determination not to be steamrolled. Missoula County staff and officials must proceed through the process of formulating zoning on Plum Creek lands and elsewhere with strict adherence to principles of state constitutional law requiring a high level of environmental protection. As of a subdivision of the State of Montana, the County has a duty to act within this constitutional framework that governs the state government itself. At every step, the County should interpret the applicable planning and zoning statute against the environmentally protective policy framework of the state constitution. Thus, to the extent that a particular Montana planning or zoning statute might seem to fall short of sufficiently ensuring environmental protection, the County should construe any ambiguities or vagueness in the statutes in a manner that facilitates, rather than thwarts, the overriding state policy goal of environmental protection. The County should also refuse to be intimidated by the threat of a veto by Plum Creek of the zoning necessary to make the Seeley Lake Regional Plan an enforceable regulatory document. Rather than assume that the veto statute is lawful and thus be cowed by a threat, County officials should adopt a final version of the plan that embodies the public interest as they perceive it. They should let the judicial and political chips fall where they may with respect to the veto issue.

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