FOR IMMEDIATE RELEASE

Friday, March 7, 2003, Albany, NY – Environmental lobbyists are calling on the state to purchase some 93,000 acres of commercial timberland that is for sale in the North Country. What they have not said is that these properties are vital to the region’s economic fabric and have been working forest lands, in some cases, for over a century. These lands have also received prior attention from New York State and have been protected by conservation easements that are focused on the critical and most sensitive environmental areas.

The lands involved with the sale are some 71,000 acres across four towns in St. Lawrence County and another 22,000 acres in three parcels located in Lewis and Herkimer Counties. These are quality timberlands and are being marketed as such. Hancock Timberlands is the current owner.

Bill Crary, Vice President and General Manager of Potsdam Hardwoods says "fifty-percent of the wood used at our mill comes from these properties. These lands are vitally important to our future as a small employer here in Potsdam."

According to Kevin S. King, Executive Vice President of the Empire State Forest Products Association, "the real story here is the State’s previous efforts to protect sensitive environmental lands while maintaining a working forest that contributes to the region’s economy are working."

"The critical portions of these properties – those involving water resources, in particular – are protected by conservation easements owned by the State of New York," says King. "These lands cannot be developed and are already under state protection."

The 71,000 acres in St. Lawrence County has been professionally managed by a succession of forest products companies for over 100 years. Much of this land is already subject to a "conservation easement". The State of New York owns recreational and development rights to 19,734 acres of this property. These easements are largely protect the headwaters of the South Branch of the Grasse River from development. They also provide for public access to the lands and the river.

The Lewis and Herkimer properties have been in forest management for nearly as long. They were previously owned by the former Lyons Falls Pulp and Paper Company. Nearly all of this acreage – 17, 324 acres of the 22,000 acres – is protected by a conservation easement. The easement is held by New York State and provides protection from development to lands along the Moose River just outside of Old Forge, NY.

"We expect there to be very brisk competition from the forestry investment community for these lands," says Bruce Jacobs, President of Fountain Forestry. Fountain Forestry is an internationally recognized consulting forestry firm that provides a full range of forestry services including forest management and forestland brokerage services to institutional and corporate investors.

According to Jacobs, "these properties are ideally suited to the long term investors that Fountain Forestry serves, patient investors committed not only to proper land stewardship, but also to contributing to the local economy. I believe that type of ownership is the highest and best use for these lands."

Pat Curran, President of Seaway Timber Harvesting says, "If this property is taken out of production that’s a huge whole to the likelihood of people in the North County." Seaway employs 50 people in logging, trucking and various support roles in the Massena, NY area. The firm has previously logged wood from these properties and hopes to again do so in the future.

"Our business and that of other loggers in the area is struggling right now," says Mr. Curran. The State has already protected this property and should be looking at helping improve the economics of our business. That would be the best way to assure that this land continues to stay productive."

"The bottom-line here is that forestry and forest products are at a crossroads in New York," says King. "Is the state going to continue to support a forest-based economy that has maintained these properties for the last hundred years?"

"Our hope is that Governor Pataki and members of the legislature will continue to recognize that the existing easements are working and will instead focus on the key economic issues needed to preserve a way of life that has existed throughout upstate New York State for many, many years," says King.

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