We wrote about the Legislature’s wrongheaded – fically and environmentally -  pursuit to acquire the leaking and contaminated Dolby landfill two weeks ago. Despite the opposition of several representatives and senators, and a request by Senators Cynthia Dill and Elizabeth Schneider for an opinion from Attorney General William Schneider on the constitutionality of the law, the bill passed and on June 17, Governor LePage signed into law, LD 1567—Resolve, To Authorize the State to Acquire a Landfill in the Town of East Millinocket. If and when the Katahdin mill’s owner Brookfield lines up a buyer for the mills, which currently appears to be International Grand Investors Corp., a Delaware corporation owned by Chinese investors in Taiwan, the state now has the authority to bring the deal to fruition by accepting, on behalf of the State of Maine, Brookfield’s generous donation of the Dolby landfill.

Despite the Dolby landfill’s projected $250,000 in annual operating costs and an estimated $17 million in closure and cleanup costs, the Attorney General’s office concluded on its response to the Senators’ request for a legal opinion  that LD 1567 does not trigger the $2 million debt limitation threshold contained in Article IX, section 14 of the Maine Constitution. Although that result appears counterintuitive given the staggering costs associated with the Dolby landfill, the AG’s office reasons that “LD 1567 does not commit the State to the assumption of any particular debts or liabilities associated with the landfill” and suggests that the SPO can contract away some or all of that liability. Unfortunately, the version of LD 1567 that was passed and signed into law did not incorporate the Attorney General’s suggestion that LD 1567 be amended to require that any contract entered into by the SPO to acquire the Dolby landfill contain a clause limiting the State’s liability for pre-acquisition operation of the landfill.

Although the authority granted under LD 1567 apparently does not trigger Article IX, section 14, the AG’s office concedes that the terms of Article IX, section 14 “will be relevant to the terms of [an] agreement” by which the State takes title to Dolby. Thus, Article IX, section 14 remains part of the conversation. But the extent to which it does remains unclear. To that end, legislators have requested an additional legal opinion from the AG’s office regarding the relevancy of Article IX, section 14 to any contract transferring ownership of the Dolby landfill to the State. Given that Brookfield is just as steadfast in its resolve to dump the landfill as the State is in its resolve to acquire the landfill, it is hard to fathom that Brookfield would agree to remain responsible for the majority of the $17 million in closure and cleanup costs or to indemnify the State for pre-acquisition liabilities associated with the landfill. Would a contract that failed to limit the State’s liability for the Dolby landfill to less than $2 million be subject to approval by two-thirds of the Legislature and a popular vote? Stay tuned . . .

Postcard depicting the Great Northern paper mill in East Millinocket (top) and the Mt. Katahdin skyline (bottom).

With the close of this legislative session looming, the LePage administration and proponents in the Legislature are continuing their push for passage of L.D. 1567—“Resolve, To Authorize the State To Acquire a Landfill in the Town of East Millinocket.”  Pursuant to this resolve, the State Planning Office (SPO) would have the authority to acquire ownership (either by purchase or donation) of a leaking landfill that has limited remaining capacity, annual operating costs of $250,000, contamination issues, and closure costs estimated at $17 million and rising.

The administration apparently considers granting the State the ability to acquire the Dolby landfill absolutely essential to finding a buyer for two currently shut down pulp and paper mills in East Millinocket and Millinocket.  Brookfield Asset Management, LLC, through its subsidiary Katahdin Paper Company, owns the mills and the Dolby landfill, which has been accepting waste from those mill operations for over thirty years.  Brookfield claims it cannot find a buyer for the mills because no prospective buyer wants anything to do with the landfill.  Not surprising considering that any new owner would acquire the $17 million liability associated with the Dolby landfill.  Including the state.

Although that liability has effectively deterred private buyers, it has not given the state nearly enough pause, especially considering that, as currently configured, L.D. 1567 works a violation of the state Constitution.  Article 9, section 14 of the Maine Constitution limits the State’s ability to create a debt or liability in excess of $2 million by requiring that two-thirds of the House and Senate and a majority of the electorate approve the bond issuance needed to fund the liability.

Accordingly, my op-ed in the Portland Press Herald highlighted both the amount of the liability attached to the Dolby landfill and the corresponding Constitutional issue.  That op-ed was succeeded by my written request to the Attorney General’s office for an opinion on the constitutionality of L.D. 1567.  Those efforts prompted further discussion in Senate debate and ultimately resulted in Senators Dill and Schneider formally requesting that the Attorney General render an opinion on the constitutionality of L.D. 1567.

While these efforts and continuing press coverage have succeeded in creating additional debate, the bill’s proponents recently amended the text of L.D. 1567 to classify it as emergency legislation in attempt to speed up its prospective implementation.  Such textual changes do not nullify the Constitutional issues presented by L.D. 1567.  Accordingly, we encourage people to contact their Senators to ensure that L.D. 1567 does not take affect until it has undergone the process mandated by the Constitution.  A proposal that enables Brookfield to dump its liability for the Dolby landfill, allows a new owner to purchase the mills for one dollar without acquiring any liability associated with the Dolby Landfill, and authorizes the SPO to accept on behalf of the State of Maine Brookfield’s generous donation of a leaking landfill and all the liability that accompanies its ownership most certainly deserves the additional consideration and process that the Constitution imposes.   Additional process that the LePage administration called for back in February.