Kaitlin Sopoci-Belknap

The Honorable Mike Thompson
317 3rd Street, Suite #1
Eureka, CA 95501

RE: Freshwater Pulp Company

Dear Congressman Thompson:

On behalf of the Board of Directors, I am writing in support of the Freshwater Pulp Company’s plans for the future. Freshwater Pulp has shared their Business Plan with the District. We understand that they intend to resume operation of the pulp mill and add a finishing tissue paper mill. We further understand it is their intent to not only address the current environmental issues at the mill, but also to become the “cleanest pulp mill” in North America.

The Humboldt Bay Municipal Water District supplies drinking water to seven municipal agencies on a wholesale basis throughout the greater Humboldt Bay area. Up until the mid 1990’s, the District also served two very large industrial water users - the Simpson and Louisiana-Pacific pulp mills, who at that time contributed almost 80 per cent of the District’s revenue requirement for the regional water system. Much has changed in our community since then. The Simpson pulp mill ceased operation in the mid-1990’s and the Louisiana-Pacific mill experienced numerous ownership changes. Evergreen Pulp (the previous owner) ceased operations last fall, and Freshwater Pulp Company purchased the mill from Evergreen this February but has not been able to resume operation.

The pulp mill contributed over $1 million to the District’s overall cost-of-service. In response to closure of the mill, the District has reduced its costs substantially, but a large cost shift to the Municipalities has also occurred. The Municipalities are in the process of raising retail rates within their jurisdiction, this at a time when many in our community can ill-afford to pay higher rates. From a community perspective, a significant number of well-paying jobs have been lost, and many suppliers and vendors have been adversely affected.

Given the many benefits that would result from the pulp mill resuming operation - both to the District and to ratepayers and the community at-large - the Board of Directors unanimously supports in concept what Freshwater is proposing. We endorse their direction for the future and look forward to a positive contribution to water ratepayers, the economy and the environment.

Sincerely,

Kaitlin Sopoci-Belknap
 President