& Great Lakes
to paper industry politics
Georgia-Pacific is responsible for roughly 22.5% of the total PCBs dumped
into the Fox River and Green Bay, primarily from PCB-contaminated wastepaper
recycling operations of the former Fort Howard Corporation mill (now called
the "Green Bay West Mill"). (See Sources)
Clean Water Action Council is currently in federal court challenging the
2002 final PCB damage settlement between Georgia-Pacific and the federal/state/tribal
governments. (See details.)
(for more Lahey cartoons, click here)
Georgia-Pacific has potential environmental liabilities at 194 sites throughout
its corporate territory, but states that: "management believes
that adequate [financial] reserves have been established for probable losses
with respect thereto. Management further believes that the ultimate
outcome of such environmental matters and legal proceedings could be material
to operating results in any given quarter or year,but will not have
a material adverse effect
on the long-term results of operations, liquidity
or consolidated financial position of the Corporation." (Emphasis
added. See Annual Report excerpt.)
According to company reports to the SEC, Fort Howard Corporation and Fort
James Corporation spent $500 million on restructuring following
their merger to form Fort James Corporation (prior to Georgia-Pacific's
purchase) in 1998 and 1999. What did Wisconsin receive from this
$500 million investment? The corporate headquarters were moved out of state
(causing major losses in tax revenues), and two mills were closed in Menasha
and Ashland. Several hundred jobs were lost. The merged company
refused to allow employees to buy the mill in Ashland and keep operating.
(Meanwhile, the companies have invested heavily in other countries, after
using Wisconsin workers to build up their assets.) That $500 million
could have been used to clean the Fox River and we would be farther ahead.
Just 2 years later, this costly restructuring was repeated when Georgia-Pacific
purchased Fort James.
Fort Howard Corporation was the last Fox River company to stop discharging
significant PCBs into the Fox River --- approximately 50 pounds of PCBs
per year in the late 1980s.
Though Fort Howard virtually stopped its river discharges of PCBs around
1990, this mill's wastewater treatment plant sludge is still contaminated
with PCBs (at average levels of 3 to 5 ppm in the mid-1990s). A portion
of these sludges are burned at the company's new incinerator (contributing
persistent and toxic chemcials such as dioxin to the air of Green Bay).
Another major portion of sludge is dried and pelletized at nearby Grantek,
Inc. to create kitty litter, a carrier for pharmaceuticals for livestock,
and a carrier for pesticides and herbicides to be spread on our lawns and
farmlands. A major use of the Grantek pellets is for mosquito insecticides
which are spread back into aquatic environments (Fort Howard sludge is
the bulky "inert ingredient.")
Fort Howard Corporation's wastewater discharge
the Fox River at Ashwaubenon, circa 1980. They
dispersal pipe across the river bottom to dilute the
of the discharge. This also hides it from public
unless you fly overhead.
The Wisconsin DNR gave Grantek an air pollution permit to release
10 pounds of PCBs each year into the air of downtown Green Bay during the
sludge drying process. More than 1,000 pounds of PCBs may be distributed
each year in Grantek's products. (See Grantek company website.)
Georgia-Pacific now owns the old Fort Howard Sludge Lagoons, near the Austin
Straubel Airport in Brown County. This is one of the largest dumps
in Wisconsin, and was nominated for federal Superfund Status in the late
1980s, due to concerns about groundwater contamination with PCBs and numerous
other toxic chemicals in the sludge and boiler ash from the company.
It is located within the reservation of the Oneida Tribe of Indians of
Wisconsin. It has no engineered liner underneath and had no watertight
walls on the sides either. Fort Howard avoided Superfund designation
by quickly building a clay slurry wall around half the site (downgradient
in the groundwater) and initiating groundwater pumping toward the center
of the dump to prevent toxic chemicals from migrating outwards in the groundwater.
(Imagine a bathtub with a wall on one side only.) The pumped water
is then sent to the Green Bay Metropolitan Sewerage District and is run
through a sewage process not designed to detoxify PCBs. The EPA and DNR
are satisfied so long as the company keeps pumping the site forever.
Lee Thomas, who is now President of Georgia-Pacific, formerly served as
Administrator of the U.S. Environmental Protection Agency during the Reagan/Bush
(senior) years. G-P paid him $1,022,637 in 2000. This
is a classic example of the revolving doors between our government and
private corporations. Who did Mr. Thomas serve as head of the EPA?
(See The Corporate
Georgia-Pacific (and formerly Fort James Corporation) donated $33,500 to
the 1998, 2000 and 2002 election campaigns of Congressman Mark Green, who
represents Northeast Wisconsin. Green has consistently defended the
Fox River paper industry against enforcement of Superfund and Natural Resources
Damage Assessment laws.
In February 2001, an insurance company filed a lawsuit in federal court
asking a judge to declare that it is not obligated to defend Georgia-Pacific
(Fort Howard) or pay any costs associated with the Fox River cleanup.
Fort Howard Corporation carried liability insurance with United States
Fidelity and Guaranty Co. from 1975 through 1994, the suit says. The lawsuit
alleges that Fort Howard did not notify USF&G of any potential pollution
claims until 1994, even though the papermaker had been told by the DNR
early as 1959 that "its operations were contaminating the environment,
including the waterways, of the state of Wisconsin." The suit says lawyers
for Fort Howard notified USF&G in July 1994 that the insurer had "a
duty to defend" pollution claims. The insurer says they need a judge's
decision so they can decide whether to join settlement negotiations. (See
sues mill over river cleanup.)
In 1997, Georgia-Pacific and nine other companies (including Wisconsin
Tissue Mills and Fort James Corporation) were sued by the Florida Attorney
General's Office for allegedly fixing prices of sanitary commercial paper
products, such as towels and napkins. Then, 55 similar suits were
filed by various private entities and several other states' Attorney Generals.
All but a few cases have been settled out of court (as of the corporation's
2000 Annual Report) for unknown amounts of money. Georgia-Pacific denied
any wrongdoing and claimed the amount of money paid was immaterial to the
The Fort Howard Corporation (GP's Green Bay West) mill has a high-capacity
well for drawing groundwater, and was a major contributor to the extreme
lowering of groundwater levels under the City of Green Bay, which forced
the City to send a pipeline to Lake Michigan for a new water supply starting
in the 1950s and 1960s. Now, surrounding communities may be forced
to do the same, at a cost well over $150 million, plus financing.
Ordinarily, river communities should be able to draw domestic water supplies
from ther local river or bay, but the local water is too polluted.
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For years, the Port of Green Bay and Army Corps of Engineers have had to
pay millions of dollars in extra disposal costs to contain PCB sediments
dredged to maintain the 17 mile shipping channel (with sediments disposed
of in Kidney Island and the Bayport Project). Much of this cost has
been shouldered by local, state and federal taxpayers. The Georgia
Pacific Green Bay West Mill is the major harbor beneficiary as the largest
user, for coal shipments primarily. Lime shipments (for caustic soda),
another major bulk commodity, also benefit the paper industry. None
of the seven PCB polluting companies have been held accountable for these
extra port maintenance costs.
Georgia-Pacific Description and Hierarchy
Georgia-Pacific began in 1927 at a lumber yard in Georgia. Now,
it is an enormous corporation, with more than 85,000 employees at nearly
600 facilities in the United States, Canada and 11 other countries, including
several in Europe. It is one of the world's leading manufacturers
and distributors of paper, pulp, building products, specialty chemicals,
and consumer products, such as paper towels, paper napkins, bath and facial
tissue, disposable plates, cups, utensils and other foodservice products,
office printing and copying papers, and folding cartons. Building
products include plywood, oriented strand board, gypsum wallboard and related
installation materials, lumber, particleboard, medium density fiberboard,
hardboard and related chemicals.
Major Brands include: Quilted Northern®, Angel Soft®, Brawny®,
Sparkle®, Vanity Fair®, Green Forest®, Pacific Garden®,
Dixie®, Mardi Gras®, Soft 'n Gentle®, So-Dri®, Embo, Tenderly,
KittenSoft, Colhogar and Demak'Up as well as Sturd-I-Floor®, ToughRock™
and Blue Ribbon® OSB.
Georgia-Pacific Corporation is a holding company for two separate subsidiaries.
First, the Timber Company and, second, the Georgia-Pacific Group, which
is the second largest forest products company in the world after International
Paper. These two companies have numerous subsidiaries.
Unisource Worldwide, a G-P subsidiary, is one of the largest distributors
of packaging systems, printing and imaging papers and maintenance supplies
in North America, and is the sole national distributor of Xerox branded
papers and supplies.
The Timber Company is being sold by G-P, partly to finance the purchase
of Fort James Corporation last year. The Timber Company controls
4.7 million acres of timberland, mainly in the southern U.S.
It's sale by G-P represents a shift in the company's emphasis from traditional
forest and paper products to finished consumer products and brand-names
(mostly from Fort James).
Georgia-Pacific Corporation, Parent Company
Georgia-Pacific Corporation - Headquarters
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133 Peachtree Street, N.E.
Atlanta, GA 30303
Phone: (404) 652-4000
Fax: (404) 584-1470
Alston D. (Pete) Correll, ,59, Chairman, President, CEO,
and Director (Paid $3.1 million in 2000)
Danny W. Huff, 50, Exec. VP of Finance and CFO
Donald L. Glass, 52, Exec. VP of Timber, Pres. & CEO of the Timber
Company (Paid $1,097,590 in 2000)
Ronald L. Paul, 57, Exec. VP of Wood Products and Distribution
(Paid $884,479 in 2000)
James Kelley, 59, Exec. VP, Gen. Counsel (Paid $806,224
Lee Thomas, 56, President of Consumer Products (Paid $1,022,637
Patricia Barnard, 51, Exec. VP of Human Resources
James Bostic, Jr., 53, Exec. VP, Environmental, Gov. Affairs, and Communications
Stephen E. Macadam, 40, Exec. VP of Pulp and Paperboard
John F. Rasor, 57, Exec. VP of Wood Procurement for Gypsum and Industrial
James E. Terrell, 51, VP and Controller
David J. Paterson, 46, President of Paper
Charles C. Tufano, 56, President of Unisource
Alston D. Correll, Chairman of the Board, President, CEO of
Subsidiaries (partial list)
James S. Balloun, Pres. and CEO, National Service Industries
Barbara L. Bowles, Pres. and CEO, Kenwood Group, Inc.
Worley H. Clark, Jr., Pres., W.H. Clark & Assoc.
Jane Evans, Pres. and CEO, CAMUT Interactive
Donald V. Fites, Retired Chair, Caterpillar, Inc.
Richard V. Giordano, Chair, BC Group plc
David R. Goode, Pres. and CEO, Norfolk Southern Corp.
Douglas M. Ivester, Retired Chair and CEO, Coca-Cola Company
James P. Kelly, Chair and CEO, United Parcel Service
Louis W. Sullivan, Pres., Morehouse School of Medicine
James B. Williams, Chair of Exec. Committee, SunTrust Banks
Robert Carswell, Counsel, Shearman & Sterling
Gary Coughlan, Senior VPof Finance, and CFO, Abbott Laboratories
Harvey Fruehauf, Jr., Pres., HCF Enterprises, Inc.
John D. Zeglis, Chair and CEO, AT&T Wireless Group
Fordyce & Princeton Railroad
Chattahoochee Industrial Railroad
G-P Gypsum Corporation
The Timber Company
Unisource Paper Corporation
CeCorr (corrugated sheet)
The Green Bay West Mill of GP has changed ownership twice in
the last 4 years. For more than 50 years, it was the headquarters
of Fort Howard Corporation, the world's number one tissue-maker,
and the lowest cost producer of tissue products in North America.
In 1998, James River Corporation and Fort Howard Corporation merged to
form Fort James Corporation. In 2000, Georgia-Pacific divested
itself of its joint-venture with Wisconsin Tissue (in Neenah/Menasha),
and bought Fort James Corporation.
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Completes Acquisition Of Fort James, Becomes World’s Leading Tissue Producer
Completes Exchange Offer For Fort James, Reaches 96.6 Percent of Shares
Court Clears Georgia-Pacific, Fort James Transaction 11/22/00
To Divest Commercial Tissue Business Under Consent Decree With U.S. Dept.
Of Justice 11/21/00
Confirms Financing Agreements 11/20/00
Extends Exchange Offer For Shares Of Fort James Corp. 11/14/00
Extends Exchange Offer For Shares Of Fort James Corp. 11/7/00
Launches Exchange Offer For Shares Of Fort James Corp. 10/13/00
and Fort James Receive [Anti-trust] Request for Information
To Acquire Fort James, Become World’s Largest Tissue Maker 7/17/00
Georgia-Pacific in Wisconsin
In Wisconsin, the corporation operates six manufacturing facilities,
a building products distribution center at Wausau, six paper distribution
centers at Appleton (2), Janesville, La Crosse, New Berlin and Wisconsin
Rapids, and a technical center at Neenah.
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More than 4,500 employees work for G-P in Wisconsin.
Fox Valley mills are described in detailed sections below.
Wisconsin GP manufacturers not located in the Fox River Valley are:
Phillips Hardboard --- Annual production capacity of 72 million
square feet. Produces hardboard, tileboard, and paneling. 87
Sheboygan Corrugated Packaging --- Annual production capacity of 1.4 billion
square feet. Produces corrugated board converted into a variety of
customer specific packaging and custom designed corrugated products, or
sold as sheets to other converters. 129 employees.
Superior Hardboard, FiberSkin® --- Annual production capacity of 148
million square feet. Superior hardboard is used for a wide variety
of industrial applications including cabinets, furniture, automotive, garage
doors, toys and television backs. 126 employees.
Green Bay West Mill
(formerly Fort Howard Corporation)
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Russel D. McCollister, Vice President, Mill Manager
Pulp Mill --- Deinked pulp primarily from post-consumer wastepaper.
Kirk A. Stallsmith, Manager, Operations
Randall L. Harbath, Manager, Manufacturing
George G. Semenak, Manager, Maintenance and Power, Plant Engineer
Kenneth Graves, Manager, Technical Operations
Christopher J. Gobris, Manager, Safety
Brenda A. Darrow, Manager, Reg. Proc.
Donald R. Girardi, Mill Controller
Paper Mill --- Paper Machines: 2 Yankee Fourdrinier 121”
Trim, 2 Yankee tissue Twin-Wire Formers: 124” Trim. 1 Yankee tissue
Twin-Wire Formers: 130” Trim. 2 Yankee tissue Twin-Wire Formers: 263” Trim.
1 Yankee Suction Breast Roll tissue former 128” Trim. 1 Yankee Suction
Breast Roll tissue former 195” Trim. 2 dry formers. Towel, napkin
and tissue converting.
Steam and Power --- 7 power boilers fueled by coal and refuse-derived
Intake Water Treatment --- Primary treatment of Fox River water
for industrial process use, and a high-capacity well drawing up groundwater.
Wastewater Treatment --- Primary, secondary and tertiary treatment.
Products: Towel, napkin, place mat, table and tray covers,
wipers, tissue papers, industrial and personal service papers. Annual
production capacity: 413,309 tons. Consumer and private label tissue
products are (West) Airlaid Paper manufactured at the Green Bay West mill,
including Consumer Products Green Forest ® , Mardi Gras ® , So-Dri
® , Soft N’ Gentle ® , and a variety of private-label roll towels.
Consumer Products Mill (formerly
James River Corporation)
500 Day Street
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Green Bay, WI 54302
(P.O. Box 23790, Green Bay, WI 54305-3790)
Served by the Wisconsin Central Railroad.
Kelly L. Wolff, Mill Manager
Paper Mill: Stock Preparation: Pulpers: 7 Jones Liebeck.
Refiners: 7 disc. Paper Machines. 1 Yankee Fourdrinier 130” Trim.
2 Yankee Fourdrinier 162” Trim. 2 Yankee Fourdrinier 186” Trim. 1
airlaid dry former 105” Trim. Tissue, towel and napkin converting.
Steam and Power: Fuel: Gas/Oil. Press: 650 psi.
Electricity: Freq. Phase: 4000/440v., 60, 3.
Intake Water Treatment: primary.
Wastewater Treatment: Primary and secondary treatment,
then discharged to Green Bay Metropolitan Sewerage District.
Products: Sanitary tissue, towel and napkin converted products,
470 tons daily. Total annual capacity: 152,514 tons Private
label tissue products are (East) Airlaid Paper manufactured at the Green
Bay East Mill, including Consumer Products Quilted Northern ®, Brawny
® , Sparkle ® and Vanity Fair ® .
Oshkosh Corrugated Packaging
413 E. Murdock Avenue
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Oshkosh, WI 54901
(P.O. Box 199, Oshkosh, WI 54902)
Served by Central Pacific Railroad
John Arpin, Plant Manager
Products: Converts corrugated materials into a wide variety
of customer specific corrugated packaging and custom designed corrugated
products, such as shipping containers, rolls, sheets, and expendable pallets,
for over 400 industrial customers in Wisconsin and Illinois. 28 tons
per day. Annual production capacity: 220 million square feet.
Georgia-Pacific has annual sales of approximately $27 billion.
In 2000, Georgia-Pacific acquired all outstanding shares of Fort James
in a transaction valued at approximately $11 billion.
For the six months ended 6/30/01, net sales rose 16% to $12.92 billion.
Net loss before acct. change and extraordinary item totaled $107 million
vs. an income of $400 million. Results reflect the Fort James acquisition,
offset by higher interest expense.
Fort James Corporation --- According to Standard & Poor's Stock Reports,
Fort James' total 1996 assets were over $6.54 billion. Hoover's
Company Profile (online) listed Fort James with 1997 revenues of $7.259
billion. At the time, Fort James Corporation was investing heavily
in China, Turkey and Russia.
Between 1995 and 1998, Fort Howard/Fort James stock prices increased over
400% from $12.50 to over $50 per share.
Michael Riordan, former Fort Howard Corporation CEO, received over $14
million in a "golden parachute" separation agreement from the company.
According to Fort James' Annual SEC Report, "the company's accrued environmental
liabilities, including remediation and landfill closure costs, totaled
$55.4 million and $57.0 million as of December 28, 1997 and December 29,
1996, respectively." In other words, the company was already
preparing for major cleanup costs, yet they continued to operate profitably.
In 1999, Georgia-Pacific and Fort James were the 3rd and 4th leading U.S.
and Canadian Paper Companies in sales, according to the 2001 Lockwood Post’s
Directory. In that year, Georgia-Pacific had $9.618 billion in paper
and allied product sales (and total sales of $17.977 billion), and Fort
James had $6.827 billion in paper and allied product sales.
from the Georgia-Pacific website
(year ended 12/30/00)
Cash from Operations
Basic Income per Share
Cash Dividend Paid per Share
from Hoover's Online
Fiscal Year-End: December
|2000 Sales (mil.)
1-Yr. Sales Growth
2000 Net Inc. (mil.)
1-Yr. Net Inc. Growth
1-Yr. Employee Growth
Some figures may not add up
due to rounding.
Annual Financials - Income Statement
All amounts in millions of US Dollars
Cost of Goods Sold
Gross Profit Margin
Total Net Income
Net Profit Margin
(from Hoover's Online)
All amounts in millions of US Dollars except per share amounts
Total Current Assets
Total Current Liabilities
Some figures may not add up due to rounding.
(from Hoover's Online)
Top Institutional Share Holders of GP
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FMR Corporation (Fidelity Management & Research Corp)
Top Mutual Fund Share Holders of GP
Capital Research and Management Company
AXA Financial, Inc.
Barclays Bank Plc
Seligman J.W.&Co Incorporated
State Street Corporation
Fund Asset Management Inc
Mellon Bank, N.A.
Vanguard Group, Inc. (The)
Merrill Lynch Investment Managers, L.P.
Investment Company Of America
New Perspective Fund Inc
Prudential Series Fund Inc.-Equity Portfolio
Prudential Equity Fund, Inc.
Fidelity Equity-Income Fund
Vanguard Index 500 Fund
Aetna Variable Annuity-Aetna Growth & Income Fund Vp
College Retirement Equities Fund-Stock Account
Fidelity Puritan Fund Inc
From the Georgia-Pacific website:
"Protecting the environment is an integral part of Georgia-Pacific’s
vision and commitment to be a responsible environmental steward. All G-P
operations are committed to 100 percent compliance with U.S. Environmental
Protection Agency (EPA) and state and local government guidelines for the
protection of air and water quality and human health".
From the Georgia-Pacific Annual Report 2000: [emphasis
"The Corporation is party to various legal proceedings incidental
to its business and is subject to a variety of environmental and pollution
control laws and regulations in all jurisdictions in which it operates.
As is the case with other companies in similar industries, the Corporation
faces exposure from actions or potential claims and legal proceedings involving
environmental matters. Liability insurance in effect during the last
several years provides only very limited coverage for environmental matters."
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"The Corporation is involved in environmental remediation activities
at approximately 194 sites, both owned by the Corporation and owned
by others, where it has been notified that it is or may be a potentially
responsible party under the Comprehensive Environmental Response, Compensation
and Liability Act or similar state "Superfund" laws. Of the known
sites in which it is involved, the Corporation estimates that approximately
47% are being investigated, approximately 28% are being remediated and
approximately 25% are being monitored (an activity that occurs after either
site investigation or remediation has been completed). The ultimate
costs to the Corporation for the investigation, remediation and monitoring
of many of these sites cannot be predicted with certainty, due to the often
unknown magnitude of the pollution or the necessary cleanup, the varying
costs of alternative cleanup methods, the amount of time necessary to accomplish
such cleanups, the evolving nature of cleanup technologies and governmental
regulations, and the inability to determine the Corporaion's share of multiparty
cleanups or the extent to which contribution will be available from other
parties. The Corporation has established reserves for environmental
remediation costs for these sites in amounts that it believes are probable
and reasonably estimable. Based on analysis of currently available
information and previous experience with respect to the cleanup of hazardous
substances, the Corporation believes it is reasonably possible that
costs associated with these sites may exceed current reserves by amounts
that may prove insignificant or that could range, in the aggregate, up
to approximately $157.8 million. This estimate of the range of
reasonably possible outcomes were used. In estimating both its current
reserve for environmental remediation and the possible range of additional
costs, the Corporation has not assumed it will bear the entire cost of
remediation of every site to the exclusion of other known potentially responsible
parties who may be jointly and severally liable. The ability of other
potentially responsible parties to participate has been taken into account,
based generally on the parties' financial condition and probable contribution
on a per site basis."
"The Corporation is implementing an Administrative Order on Consent
entered into with the Michigan Department of Natural Resources and the
Environmental Protection Agency regarding an investigation of the Kalamazoo
River and two disposal areas which are contaminated with polychlorinated
biphenyls. Data regarding the extent of contamination at the two
disposal areas has been evaluated. The cost to remediate one of the
disposal areas was estimated at $8 million and this site has been essentially
closed. It is anticipated that the cost of remediation of the second
disposal area will be at least equal to that amount, however, the Corporation
is still negotiating a final closing agreement with the State of Michigan.
Fort James is not a signatory to the Administrative Order on Consent."
"A draft Remedial Investigation/Feasibility Study ("RI/FS") for the
Kalamazoo River was submitted to the state of Michigan on October 30, 2000
by the Corporation and other potentially responsible parties ("PRPs"),
including Fort James Corporation. The PRPs' draft RI/FS evaluated
five remedial options ranging from no action to total dredging of the river
and off-site disposal of the dredged materials. The cost for these
remedial options ranges from $0 to $2.5 billion. The PRPs'
draft RI/FS recommends a remedy involving stabilization of over twenty
miles of river bank and long-term monitoring of the river bed. However,
the State of Michigan has asked for additional possible remedies.
The total cost for the PRPs' recommended remedy is approximately $73 million."
"Fort James has been identified as a PRP for contamination of the Lower
Fox River and Green Bay system in Wisconsin by hazardous substances.
Various state and federal agencies and tribal entities are seeking both
sediment restoration and natural resources damages. In February 1999,
the Wisconsin Department of Natural Resources ("WDNR") released for public
comment a draft remedial investigation/feasibility study of the Fox River.
While the draft study did not advocate any specific restoration alternatives,
it included estimated total costs ranging from zero for "no action" to
approximately $720 million, depending on the alternative or combination
of alternatives needed."
"In June 2000, Fort James voluntarily entered into an agreement with
the WDNR and the EPA for the restoration of one sediment area on the Fox
River. The project began in August 2000 and was completed on December
15, 2000 at a cost of approximately $8 million."
"In October 2000, the U.S. Fish and Wildlife Service ("FWS") released
for public comment its Restoration and Compensation Determination Plan
(the "Plan") for natural resources damages in connection with its Lower
Fox River/Green Bay Natural Resource Damage Assessment. According
to the Plan, claims for past damages range from $176 million to $333 million,
depending on the sediment resotration alternative or combinations of alternatives
selected. The actual costs of projects to settle natural resource
damage claims could be significantly lower."
"In November 2000, Fort James entered into a settlement with WDNR that
resolves the State's natural resource damages claims against Fort James
under CERCLA, the Federal Water Pollution Control Act, and state law.
Under the agreement, Fort James has agreed to spend approximately $7 million.
The agreement will be effective when entered by the federal court." [This
agreement is on hold and may be abandoned, due to widespread public and
"The final cleanup alternatives and the Corporations share of the related
costs, for both the Fox River and Kalamazoo River matters, are unknown
at this time."
[Several other environmental cases involving G-P are discussed, but
not included here...]
"Although the ultimate outcome of these environmental matters and legal
proceedings cannot be determined with certainty, based on presently available
information, management believes that adequate reserves have been established
for probable losses with respect thereto. Management further
believes that the ultimate outcome of such environmental matters and legal
proceedings could be material to operating results in any given quarter
or year, but will not have a material adverse effect on the long-term
results of operations, liquidity or consolidated financial position of
References and Links to More Information
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