MAXXAM Inc. Statement Regarding Forest Products Litigation.Business Editors HOUSTON--(BUSINESS WIRE)--Sept. 29, 2003 California Superior Court Judge Hon. John C. Golden has declined a request by two environmental organizations and a labor union labor union: see union, labor. that the Court enjoin To direct, require, command, or admonish. Enjoin connotes a degree of urgency, as when a court enjoins one party in a lawsuit by ordering the person to do, or refrain from doing, something to prevent permanent loss to the other party or parties. a substantial number of Timber Harvest Plans (THPs) prepared by MAXXAM's forest products operations. The Environmental Protection Information Center, Sierra Club and the United Steelworkers of America filed a claim in 1999 against the California Department of Forestry and Fire Protection For other uses of "CDF", see CDF (disambiguation). The California Department of Forestry and Fire Protection (CDF) or CAL FIRE is the State of California's agency responsible for the administration of the state's private and public forests. , the California Department of Fish and Game, The Pacific Lumber Company The Pacific Lumber Company or PALCO, owned by Maxxam Inc, is a logging company from northwestern California, USA. While their main function is still logging, they have expanded operations to include custom milling and treating. , and Scotia Pacific Company, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . The claim sought to invalidate the Sustained Yield Plan (SYP SYP In currencies, this is the abbreviation for the Syrian Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) agreed to by the defendants as part of the landmark Headwaters Agreement and to discontinue execution of THPs which relied on the SYP. On July 23, 2003 Judge Golden issued a statement of decision indicating that the court would invalidate the SYP but deferred a decision on the specific remedy to be prescribed pending additional hearings. Six hearings were held during July, August and September. On September 26, 2003 Judge Golden ruled "a careful balancing of the considerations is persuasive" that THPs approved prior to his July 23 ruling which rely on the SYP should not be enjoined. THPs submitted to regulatory agencies for approval after July 23, which relied upon the SYP, will be enjoined. The short-term effect of the ruling will be to preclude approval under the SYP of several THPs which were under review but had not yet been approved and which will result in a minor reduction in the 2003 harvesting expected from these specific THPs. Since October 2002, forest products operations has been obtaining review and approval of new THPs under a procedure provided for it under California Forest Practice Rules that does not depend upon the SYP; however, MAXXAM is uncertain what long-term impact the ruling will have on the Company and its forest products operations. Company press releases may contain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The company cautions that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may vary materially from those expressed or implied in the forward-looking statements as a result of various factors. |
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