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Feinstein praised for pushing forest deal Mar. 14, 1999 By MIKE GENIELLA Press Democrat Staff Writer Sen. Dianne Feinstein has yet to make her first visit to Headwaters Forest, but in the minds of state and federal officials like Rep. Mike Thompson, the day she does will truly mark the completion of a deal more than 10 years in the making. "Had it not been for Dianne Feinstein, this historic acquisition would have never happened. It's as simple as that,'' said Thompson, D-St. Helena. Interior Secretary Bruce Babbitt agreed, saying that Feinstein acted as a "stern taskmaster'' over negotiators representing state and government agencies, and Pacific Lumber Co. "She was willing to crack the whip if necessary, and at crucial times she did,'' said Babbitt. After years of political wrangling, Feinstein over a several-day period in September, 1996 brokered a $380 million Headwaters deal with Pacific Lumber on behalf of the Clinton administration and the state of California. For the next 30 months, Feinstein and her staff devoted hundreds of hours to keeping the fragile deal alive. As time dragged on, the issues grew more complex and the purchase price soared to $480 million. "But she stuck with it. Sen. Feinstein never gave up hope that the deal could be done,'' said Pacific Lumber President John Campbell. On several key occasions, the Headwaters agreement threatened to collapse. Feinstein, however, is credited with breathing new life into the deal at those critical moments. Vicki Campbell, a federal biologist who came under fire in December from company representatives for insisting on tougher environmental restrictions, said Feinstein never once lobbied for easing the federal demands. "She really cared about the biological integrity of government management plans that were part of the Headwaters deal. But she also helped us to understand how great the concern was for the long-term economic viability of the company,'' said Vicki Campbell. The biologist said that what Feinstein pushed for was an understanding between government scientists and company representatives on how to best integrate the competing concerns into an agreeable final document. "She was extremely clear about how important it was for everyone to understand the fundamental issues at stake. I came away very impressed,'' said Vicki Campbell. Vicki Campbell and others agree that the worst moments for the Headwaters deal occurred during the weekend before the March 1 deadline for taking advantage of $250 million in federal money allocated for the purchase. In a recent interview, Feinstein described the final day as one of the most stressful in her long political career. "The deal had been in a free fall all weekend after Pacific Lumber announced it wouldn't accept the revised government terms,'' she said. Government representatives, prodded by Feinstein, Thompson and the White House, scrambled to provide the company clarifications of proposed environmental restrictions it said were needed. The most critical "clarification'' related to how much timber Pacific Lumber could take off its 200,000 acres of surrounding forest lands while still meeting precedent-setting environmental restrictions sought by state and federal regulators. As the deadline neared, Feinstein and Thompson worked the telephones, urging both sides to come together. Feinstein called Pacific Lumber representatives and urged them to accept the revised Headwaters agreement despite their lingering concerns. "I kept saying that at some point you're going to see that you're better off accepting the revisions than going back to square one, returning to a war in the groves and very costly litigation,'' said Feinstein. As the night wore on, Feinstein went to her Washington, D.C. home to get some sleep, aware that negotiators had until 3 a.m. Eastern time to make the deal work. Finally the call came at 2:50 a.m. that company directors had voted in California to accept terms of the deal. "I was so excited I couldn't get back to sleep,'' said Feinstein. 1998 The Press Democrat
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