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Easy Choice in the Headwaters

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The long battle to save the ancient redwoods of the Headwaters Forest in Northern California, the largest stand still in private hands, is ending this week. And, typical of the struggle with the Pacific Lumber Co., the negotiations are concluding in uncertainty and controversy. But this is certain: Authority to spend $250 million in federal funds for the trees expires Sunday. “It’s do or die now,” says Sen. Dianne Feinstein (D-Calif.). It’s better to do the deal, but only if it’s done right.

The state and federal governments have offered $490 million for 10,000 acres of the Headwaters stand and to acquire two other tracts belonging to Pacific, which is controlled by Texas financier Charles Hurwitz. Pacific Lumber would be subjected to extremely restrictive logging rules on its 210,000 other acres in the region in order to protect endangered species.

Pacific says the demand is unreasonable and economically unacceptable. But the conditions are essential, considering Pacific’s abysmal logging record since Maxxam, the Pacific Lumber holding company, took over the firm in a junk-bond deal engineered by Hurwitz 15 years ago. Just in the past three years, Pacific was cited 128 times for violating the state Forest Practices Act. The abuses became so blatant that the state suspended Pacific’s timber license last year.

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Pacific says, in effect, “Trust us” to cut properly. But state and federal officials have every reason not to. Pacific has cut as much timber as possible to cover the interest-payment appetite of the junk bonds.

State action could come today as the Wildlife Conservation Board considers starting payment of the state’s $240 million and under what conditions. The funds should be approved, but only if the rules are ironclad.

State and federal officials should make it clear to Hurwitz that the environment will be protected whether the deal goes through or not. He will be faced with a simple business decision: tough rules plus $490 million or tough rules and nothing. That should not be a difficult choice.

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