J Warren Hockaday

July 24, 2010

Honorable Arnold Schwarzenegger, Governor
State of California
State Capitol
Sacramento, CA 95814

        Attn: David Freitas
        Governor’s Office of Economic Development
        1130 K Street, Suite 101

RE: LETTER OF SUPPORT - FRESHWATER TISSUE COMPANY

Dear Governor Schwarzenegger:

I am writing to request your assistance with regard to the above referenced economic opportunity. The business plan that has been prepared by Freshwater Pulp promises to create hundreds of family wage jobs, provide significant economic stimulation for the region and the state, while providing the highest standards of environmental integrity.

This is a time when Californians and the State itself are urgently in need of new and expanded economic opportunities. In rural Northern California there is an even more acute need for job-producing, economic development as traditional industries have declined due to a variety of reasons including the costs of regulatory compliance, competitive disadvantages associated with infrastructure needs and the far reaching impacts of State and national economic trends.

Freshwater Pulp was acquired following the closure of the Evergreen Pulp Mill in Samoa, California. The vision encompasses a realistic projection of market potential for the export of an estimated 200,000 tons of finished pulp product made from wood by products. As the California forest products industry has been reeling with the current recession, Freshwater proposes an environmentally responsible manufacturing facility that provides economic security for families and the community at large.

This project, if completed will create hundreds of high paying industrial jobs, some 1400 indirect employment opportunities and is projected to generate $140 million in annual sales.

This innovative enterprise enjoys the enthusiastic support of local and national environmental advocacy organizations, organized labor, local government and the business community at large.

The Greater Eureka Chamber of Commerce enthusiastically supports this responsible and balanced approach for a project that creates meaningful jobs, provides economic activity, and promotes environmentally sound forest practices. The solutions offered by Freshwater Pulp clearly demonstrate that a robust business activity and environmental responsibility are not mutually exclusive.

It is our hope that through the resources of your good offices, this sound business proposal will become a mutually beneficial reality for the region and the entire State. I would welcome the opportunity to discuss this matter in greater detail with you and your staff.

Sincerely,

J Warren Hockaday
 President/CEO

CC: Robert M. Simpson, President
Congressman Mike Thompson
Senator Pat Wiggins
Assemblyman Wes Chesbro