CONTRIBUTORS

The high cost of saving Millinocket’s mills

Posted Nov. 17, 2011, at 12:54 p.m.
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Good jobs in Maine is good news. To that end, the successful efforts by the LePage administration that built on the efforts of the Baldacci administration to restore good jobs in East Millinocket and Millinocket are to be commended. However, those jobs came at a significant cost to the state in the form of the state taking ownership of the Dolby landfill in East Millinocket that has taken waste from those mills for decades.

Nobody interested in the mills wanted to take the Dolby landfill for good reason — the liability associated with it is enormous. While we watch and hope for the success of the East Millinocket mill and the ultimate opening of the Millinocket mill, it’s important to fully understand all the costs associated with the Dolby landfill.

First, the state is now legally required to operate and ultimately close the Dolby landfill and those costs are, respectively, $250,000 per year and $17 million. While the Legislature appears poised to appropriate the necessary fund for operations (after the local communities recently balked at doing so), no funds have been set aside for the $17 million in closure costs, nor is there any clear plan to raise those funds.

What is clear is that the state is now the sole entity legally obligated to meet those costs and they will be borne by all Maine taxpayers, regardless of the success of the mills.

Second, acquisition of the Dolby landfill and its liabilities came at the cost of ignoring the Maine Constitution. Specifically, Article IX, Section 14 of the Constitution requires that before the state can take on any liability greater than $2 million, the Legislature must approve of the action by a two-thirds vote and then be approved in a general election by Maine voters just like the bonds for transportation, research and development or the Land for Maine’s Future Program.

This provision has been in place for two centuries and is intended to keep state government from making rash decisions and from saddling future governments with significant liabilities. However, because this provision of the Constitution was inconvenient to the timing of this particular deal, the administration did not even address the issue although raised by a number of parties, including the Conservation Law Foundation and several legislators.

Inconvenience, however, is not an acceptable reason for ignoring those constitutional requirements.

It was even more disappointing that the Attorney General’s Office, the ultimate defender of our Constitution’s integrity, finessed the issue by claiming that the legally required closure costs were not a present liability and thus didn’t trigger the Constitutional provision. This sets a poor, and potentially costly, precedent.

Third, the acquisition comes at a great cost to the state’s solid waste policy, which already had its challenges. The state first became the proud owner of a landfill when it acquired the landfill in Old Town in a previous deal to save another paper mill. In itself, that created a conflict between the state’s statutory goal of reducing, reusing or recycling waste and the bottom line goal of a landfill owner and operator to maximize revenue by increasing the amount of waste landfilled.

Now that it owns two landfills, there is a new conflict between the landfills themselves, which must compete for solid waste to generate revenue to pay for operating and closure costs. Moreover, the state and the operator of the Old Town landfill are currently seeking approval to expand the size of that landfill to accept more waste.

This either means that the administration’s claim that the Dolby landfill would be expanded to help pay for costs is highly unlikely — why would anyone pay to truck garbage to Millinocket if there is capacity in Old Town? — or it means that the application of the Old Town landfill needs to be re-examined.

Fourth and more troubling, there is no apparent strategy or vision for reducing the amount of solid waste we landfill in Maine, which would save all of us money. A majority of the waste landfilled in Maine comes from outside Maine, a fact that benefits nobody but the operators of the Old Town landfill (not the state) and the commercial landfill in Norridgewock. That defies common sense and good fiscal sense.

It’s time the administration and Legislature address this issue, particularly now that they have acquired a $17 million liability on behalf of the taxpayers of Maine.

Sean Mahoney is vice-president and director of the Conservation Law Foundation of Maine.

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  • Anonymous

    dupe

  • Anonymous

    $17million? Gee, that’s about one-third of the $50million lost by DHHS during the Baldacci administration, never accounted for, and NOTHING to show for it. So, what’s your point? I realize your organization would be happy to see no jobs in the Katahdin region, so what are you trying to stir up here?

  • Anonymous

    The Dolby landfill is there whether the mills survive or not, Mahoney. Too bad Lepage cannot slash your job because this is what it is all about buddy…….jobs.

  • Anonymous

    Finagle the Bagel.  Crony capitalism at its finest, with a cheery wink and a nod at the state constitution.  The ink was hardly dry and the mill towns  stiffed the state on operating costs of the landfill.  They know they can get away with it.   They realize they are all an esoteric species of welfare client.  Eagerly subsidized by an administration that loathes welfare recipients. Go figure.

  • Anonymous

    Outstanding commentary that finally captures the issues associate with providing corporate welfare to keep those unwanted, unprofitable mills open in the interest of preserving jobs.  Millinocket needs to reinvent itself (and take the gift that is being offered to it in the form of a National Park), because we can’t afford to keep saving it.

  • Guest

    What a surprise, loony Mahoney from the object to everything foundation picks apart a key factor in bringing back the mill.

    The CLF is nothing more than a bunch of liberal treehuggers on steroids that only exist to shutdown manufacturing and clear a path for Quimby to establish Northern Maine into a national park.

  • http://www.facebook.com/people/Cecil-Gray/1027119962 Cecil Gray

    You know Sue there is plenty of room for compromise on things to further Millinocket’s jobs future. A Park, an innovative woods market, trails for snowmobiling, hiking, ATVing, and many other possibilities are out there. Some NP opponents scream about paying taxes on the Park which are microscopic. Other folks point out the taxes that will be spent on cleaning up a toxic dump that was left by the paper industry as they left Millinocket in a stir. The current Mill owners have begun the lower pay scale move that has swept the country. These are tough dangerous times and I believe Millinocket better drop the tradition of loyalty to one dinosaur and start browsing in a few different pastures.

  • Anonymous

    So, two wrongs make a right?  That is a 3rd grade arguement.  Let’s try to do better.

  • yowsayowsa1

     You want fries with that?

  • yowsayowsa1

    Baldacci had absolutely nothing to do with this mill being reopened.

     Any one the previous administration would have chosen would have declared bankruptcy and headed home with a bunch of Baldacci Bucks by now.

  • yowsayowsa1

    Ah, yes…. the gift that keeps on giving.

    A national park would be the death of northern Maine.

    If you are so homesick that you would have northern Maine changed to what you left down in Connecticut, why don’t you simply GO BACK?

  • Anonymous

    Yet another mess created by this administration. Full steam ahead and the constitution be damned.

  • Anonymous

    I am very curious about this. Will the mill jobs pay like they did in the past? Or, did the workers have to make concessions that reduced compensation and benefits? Anything is better than nothing you say? They should be glad to have a job. Well check this out: http://www.msnbc.msn.com/id/44732669/ns/business-us_business/  . If my fear is proven true, then, yup, sold out to badly managed companies. Workers once again sacrificed on the alter of profit taking. If my fear is disproven, then and only then will I applaud this business deal. This liability the state has taken on in our name will mean other sacrifices will have to be made. Once again mortgaging our future.

  • Anonymous

    Good comments all.

  • http://pulse.yahoo.com/_7T3YNF6MG3FPEAVTFIJC44VQUI Dlbrt

    This is Corporate Terrorism Plain and Simple!

    The exiting company played us like a fiddle threatening to scrap the mill if we didn’t absorb thier liabilities!

    Privatise Profits and Socialise Losses, and the Politicians are thier stoogies!

    These Corporate Capitalist right wingers Demonise Socialism when it comes to benefits such as Medicare and Social Security and then Socialise thier Toxic Waste!

    This is why the people are taking to the streets in encampments!

    Go 99%,

    Never Surrender!

  • http://www.facebook.com/profile.php?id=1452684179 Jason Simonds

    Perfect example of the hypocrisy in this country.

    Corporate Welfare and Bailouts are Good! Anything else is BAD!

    It is good that these jobs are back, but the short term gain may be eclipsed by the long term cost to the rest for us in the State, let alone the long term repercussions from the pollution encapsulated in the Dolby land fill. 

    Heavy Industry is not able to operate as cheaply as =it can in other parts of the world. In order to compete we would have to eliminate many of our environmental laws and drastically reduce wages, and being we all know niehter one of these things is going to happen, we need to embrace the coming future.

    Yet, rather than take the opportunity to change to a tourist/retirement community, many have chosen to dig in their heels and keep Maine Heavy Industry on life support, thinking that it will get better.

    Many areas of our country thrive on a tourist/retirement economy. I appreciate the long heritage of Maine Industry, but the change is here and Maine needs to move with it, not fight against it…

    If there was light .. if there was a way we could really prosper the way the State used to, tell me about it… but I think most of us would agree that we don’t want the levels of pollutions we had in the 60′s in order to have Heavy Industry back, nor do I think we will suffer slave wages, therefore we must choose another direction, and do so while we have the ability to make that choice.

  • Anonymous

    Why is the acquisition of the Dolby landfill any different than the State agreeing to buy and repair beds and track the rail line serving Northern Maine from MM&A to make it usable last year?  Didn’t they mortgage our future when they did that?

  • Anonymous

    Well said !

  • http://www.facebook.com/people/Cecil-Gray/1027119962 Cecil Gray

    You want a nail gun. The way you are driving nails into your comment coffin I thought you might like to get one.

  • Anonymous

    Don’t know about that. Just responding to the information in this piece. But I do agree we do mortgage our future in many ways. Probably need to take a closer look at that as we go forward.

  • Anonymous

    I have no idea what his article is trying to say. I got lost immediately when Baldacci was mentioned as helping re-start the Millinocket Mills. Every word after that is questionable. Sorry. 

  • Anonymous

    Well Cecil, as Captain Picard would say, “Make it happen number two!”

  • Anonymous

    Your litany is tedious to say the least. Find another cause, cause this one is lost for you.

  • Anonymous

    Plenty of air pressure left in Yowsa’s compressor Cecil. I’m sure he’ll be banging away for some time to come.

  • Anonymous

    Actually, I’d venture to say that a Millinocket with a closed mill pretty quickly becomes the death of northern Maine.   And, just a newsflash – there are no National Parks in Connecticut my friend.

  • Guest

     May be a good place to put one, chum?

  • Anonymous

    Where did I say this? Your mind wanders, you probably argue with yourself. Please do not put words in my mouth.

  • Anonymous

    Sorry I did not make the connection for you. You said jobs. I said what kind of jobs. I did not suggest you said anything. I provided a counterpoint.

  • Anonymous

    You said “anything is better than nothing you say?” You did indeed try to make the connection.

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