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Natural Resources & Timberlands Alert July 2005


Natural Resources & Timberlands Practice GroupRedefining the Rights of Lessors and LesseesStatewide Standards for Timber Harvesting and Related Activities in Shoreland AreasFederal Court Rules That Storm Water Runoff From Logging Operation May Require Clean Water Act PermittingProposed Changes to Bear Baiting on Public Lands

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Natural Resources & Timberlands Practice Group

The Natural Resources and Timberlands Practice Group is chaired by Edward D. Leonard, working with attorneys:

Edward D. Leonard
Thomas C. Johnston
Douglas M. Smith
Martin L. Wilk
Daniel G. McKay
Karen A. Huber
P. Andrew Hamilton
Dale L. Worthen
William V. Ferdinand, Jr.
David M. Austin
Michael L. Lane

This Group represents owners of timberlands in both Maine's organized and unorganized areas, owners and operators of forest products manufacturing facilities, land management companies, paper mills, managers of recreational and public access, independent logging contractors, transporters, forest products brokers and forest industry trade groups. We also represent developers, purchasers, institutional lenders, and title insurance companies seeking the expertise and capacity of our firm to handle large and sophisticated transactions involving legal, title, and operational issues unique to Maine's natural resources and timberlands.

Find out more....


Redefining the Rights of Lessors and Lessees
 

A bill was introduced in the last Legislative session which, if enacted, will dramatically alter the laws governing buildings on leased land.

LD 1646 was referred to the Committee on Judiciary on May 5, 2005. The Committee is expected to address LD 1646 in the next session. The Committee received testimony and will further study the matter in the next session.

A summary (from, in part, the Legislature's bill summary) of the key points of LD 1646 are as follows:

  1. The provisions of Title 14 M.R.S.A. §§ 6047 et seq. which formerly only applied to leased lots located within LURC jurisdiction, applies to land in organized areas.

    A lessor is prohibited from terminating a lease without just cause and lessor is required to reimburse a lessee for the fair market value of all improvements on the leased land if the lessor terminates the lease.

    A lessee has a right of first refusal to acquire the leased land at its fair market value if the lessor intends to sell any real estate in the State of Maine. If a lessee does not elect to purchase the leased premises, the lease continues with the same terms, except for annual rental fees, for not less than 50 years.

    The annual rental fee is capped at 5% of the fair market value of the leased land only and may not account for improvements.

    Exempts certain transactions from capital gains taxation and certain land use laws.

  2. The lessor is required to prepare standard boundary surveys of all leased land and to record mylar plans in the appropriate registry of deeds prior to June 1, 2007. The cost of the survey shall be borne by the lessor if the leased land is sold prior to June 1, 2007, and by the lessee if sold after June 1, 2007. The lessee has the right to choose the surveyor if the leased land is sold after June 1, 2007.

For full text of the bill...

Landowners may wish to contact their representatives or speak with a member of the Committee.

Committee Members:

Senator Barry J. Hobbins, Chair
D- York
287-7101
bhobbins@hggm.net

Rep. Deborah L. Pelletier-Simpson, Chair
D-Auburn
777-1379
RepDeborah.PelletierSimpson@legislature.maine.gov

For a complete Committee on Judiciary listing...
 

Statewide Standards for Timber Harvesting and Related Activities in Shoreland Areas

The Maine Forest Service has adopted a rule establishing statewide standards for timber harvesting and related activities in shoreland areas. In general, timber harvesting activities in shoreland areas must protect shoreline integrity and not expose mineral soil that can be washed into water bodies, including nonforested freshwater and coastal wetlands and tidal waters. Timber harvesting and related activities in shoreland areas below the 300 acre drainage point must leave windfirm stands of trees that provide adequate shade. Roads located in the shoreland zone used primarily for timber harvesting and related activities must be constructed and maintained to standards designed to minimize the chance of exposed soil washing into water bodies, including wetlands. Stream crossings must not disrupt the natural flow of water and must not allow sediment into water bodies.

The standards in the rule will not apply statewide, or in the unorganized territories, until after a majority (252 out of 336) of municipalities have either adopted these standards in an ordinance or have repealed existing timber harvesting ordinances so that only the statewide standards would be in effect. The statewide rule will take effect on January 1 of the second year after this threshold is met. The Commissioner of Conservation is responsible for monitoring the municipalities, and must notify the Legislature when the rule will take effect.

For a full copy of the rule or for more information please contact Mike Lane...
Federal Court Rules That Storm Water Runoff From Logging Operation May Require Clean Water Act Permitting

A U.S. District Court in California recently ruled that the water runoff from logging operations may require permitting under the Clean Water Act's National Pollutant Discharge Elimination System (NPDES) Program.

In this landmark case, Environmental Protection Information Center v. Pacific Lumber Company, suit was filed by a non-profit environmental organization against a lumber company. According to the non-profit, timber harvesting, combined with new road construction, exposed a mass of destabilized, environmentally unsound soil. When it rained, portions of the exposed soil were washed away. The non-profit argued that this runoff required NPDES permitting.

NPDES permits are not required if discharges are either "composed entirely of runoff" or if the discharges are "currently and properly unregulated."

The lumber company argued that the phrase "composed entirely of runoff" is normally broadly construed, allowing a certain level of silt and sediment to be contained within the runoff. The lumber company also argued that because the runoff came from silvicultural-related point sources, the discharges did not need to be regulated.

Recently, the Vermont federal district court, respectfully declined to follow the Pacific Lumber Co. decision. Instead, the Vermont federal district court found that the runoff from the parking lot did not require NPDES permitting.

This has yet to be entertained by Maine's federal courts and, given the split among the district courts on this issue, it is unclear how Maine's courts might decide.

Proposed Changes to Bear Baiting on Public Lands

The Bureau of Parks and Lands is proposing changes to the existing rules in order to maintain fairness in the allocation of the limited number of bear bait sites on the lands it manages.

Changes proposed by rule (number 2005-P142) are:

  • Require disclosure by the applicant of any and all business relationships with guides, outfitters, or sporting camp related businesses on the application form for bait sites.
  • Require the name and contact number of the person baiting the site(s) if other than the applicant.
  • Make persons holding guides licenses eligible for commercial sites only, remove confusing language regarding permit allocation and to increase bear bait site fees to $30 for each personal bear bait site and $65 for each commercial bear bait site beginning in 2006.

  • For more information

    This email alert was prepared by Michael L. Lane, Esq.

    For futher information on any of the included topics please contact Mr. Lane at 992-4314, or at mlane@eatonpeabody.com.

    This alert is provided for general information, and is not a substitute for legal or other professional advice.

    207.947.0111

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