Pulp mill lower Caddo east of Amity AR

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Yarbrough
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Re: Pulp mill lower Caddo east of Amity AR

Post by Yarbrough » Wed Jul 27, 2016 8:33 pm

LeanDoc,
The fact is Arkansas has been doing commercial logging for over 150 years. None of your dire predictions have come true. The proof is in the pudding.
Dr Ray Stantz: Personally, I liked the university. They gave us money and facilities, we didn't have to produce anything! You've never been out of college! You don't know what it's like out there! I've *worked* in the private sector. They expect *results*

LeanDoc
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Re: Pulp mill lower Caddo east of Amity AR

Post by LeanDoc » Thu Jul 28, 2016 8:42 am

Yarborough,

Have you been to Pine Bluff? It has the highest crime rate per capita in the US

With the $300 million Arkansans are giving China, we could have instead thousands of jobs in many communities, promoting local businesses. Sustainable growth.

Size matters, this is a big a** mill, and all we get is pollution and

You may have noticed the new extreme weather, floods, droughts, and heat never seen before --- old rules no longer apply

The forests, even tree farms are our best defense for climate change: CO2 sinks and clean water and air

Hope other folks read this conversation, there is nothing I can say to convince you, but hope others will call Mike Pearson at AEDC and ask him to tell the truth

Good luck!

prophet
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Re: Pulp mill lower Caddo east of Amity AR

Post by prophet » Thu Jul 28, 2016 3:10 pm

W Ark did this (without the mill) years ago. didnt last long once the easy pickings from landowners willing to clear cut their land ran out.

any idea if National Forests will be part of the supply or will it all come from private land?

Yarbrough
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Re: Pulp mill lower Caddo east of Amity AR

Post by Yarbrough » Thu Jul 28, 2016 5:48 pm

What does the crime rate in Pine Bluff have to do with this?
Dr Ray Stantz: Personally, I liked the university. They gave us money and facilities, we didn't have to produce anything! You've never been out of college! You don't know what it's like out there! I've *worked* in the private sector. They expect *results*

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Re: Pulp mill lower Caddo east of Amity AR

Post by LeanDoc » Thu Jul 28, 2016 8:47 pm

Prophet

The Ouachita National Forest is near the area. In addition to the Sun mill, there are two wood pellet mills planned for 2016, one at Pine Bluff and one at Monticello. The wood pellet market is in Europe, mostly in the UK. Brexit may have taken the subsidies from the Drax UK power station, a 4,000-megawatt site, without the subsidies, there is no demand for wood pellets from the Southern US. The Zilhka Monticello mill will be delayed, and their TX mill closed down.

USFS has morphed into the Fire Forest Service spending all their funds on the West Coast wildfires caused by drought and infestations from climate change. USFS promotes prescribed burns to thin the forests and sell timber.The way out of this mess is a Forest Carbon Offset program to pay USFS for the services provided by the National Forests: CO2 sequestration and storage, clean air and water, and flood protection. I will post details here tomorrow.

Private forest owners need compensation to keep forests standing. Coal-fired power plants and other polluters should pay to for carbon credits, they have gotten a free ride with free emissions from day one. Another source of funds may be federal subsidies. If I had a magic wand, I would cut the US Congress budget in half, we pay over $1 billion for an organization that creates zero value. Tom Cotton and the rest get $1.5 million per year working less than half the time and offices all over the place. Thanks

LeanDoc
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Re: Pulp mill lower Caddo east of Amity AR

Post by LeanDoc » Thu Jul 28, 2016 8:49 pm

Yarborough,

The IP paper mill destroyed the economy of Pine Bluff, people moved out and there are no jobs. Looks like Flint Michigan. Crime rate is due to the lost economy. Arkadelphia would be next

prophet
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Re: Pulp mill lower Caddo east of Amity AR

Post by prophet » Fri Jul 29, 2016 11:20 am

so does anyone know where the tree supply will come from for the new mill(s)?

LeanDoc
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Re: Pulp mill lower Caddo east of Amity AR

Post by LeanDoc » Fri Jul 29, 2016 2:36 pm

Roger,

Here is the latest on the Sun mill: instead of a fluff mill, Sun plans to build a dissolving pulp mill.

Dissolving pulp is used to make rayon and other fibers. The inside of the mill is different but the pollution and wastewater on the Ouachita River are about the same. The mill would use 16 million gallons of clean water per day and 11 millions of gallons of wastewater would be dumped into the Ouachita River every day.

Sun is calling the new stinky, polluting wood mill, a "biomass refinery." The delay may be much longer than six months.

From a marketing perspective, this is a huge change: from making disposable diapers in China to selling cellulose fibers.

Sun needs to explain what is really going on and stay away from Arkansas. Great news for the River, a waste of time for the people in Arkadelphia.

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Re: Pulp mill lower Caddo east of Amity AR

Post by LeanDoc » Fri Jul 29, 2016 3:04 pm

Prophet,

The Sun mill will use 3 to 4 million tons of wood per year. Trucking round wood on 40-ton logging trucks is expensive. Sun will buy from forests near the mill. 400 daily deliveries, every day will be needed. Deforestation will spread like cancer around the mill

Sun is a high volume, low-cost operation. Sun will pay the lowest price and start a bidding war - Sun will demand timely deliveries driven by their production schedule

Selling timber is driving this project, pine plantations, and other forest owners. and USFS - Ouachita National Forest, are dreaming of getting rich.

Sun will buy the trees and all that will be left is stumps. Like Walmart suppliers selling at low profits, Sun will be a tough buyer. The only buyer in the area. To make pulp Sun will not pay extra fo premium hardwoods.

Sun will pay by the ton delivered at the mill, under Sun payment terms. This is not a cash operation, and several intermediaries will take their cut.

On top of this, Arkansans will end up paying over $300 Million on incentives and subsidies just to get the mill. Please call Mike Preston at AEDC and ask him why this is a great deal for Arkansas, don't mention the $50,000 bonus Preston got as a bonus, just ask him about the Ouachita River pollution.

Mike Preston
Executive Director, AEDC
501-682-7351
mpreston@arkansasedc.com

Yarbrough
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Re: Pulp mill lower Caddo east of Amity AR

Post by Yarbrough » Fri Jul 29, 2016 6:04 pm

Leandoc,
Trees grow faster here in the South than they do in the North. They especially grow fast here in Arkansas because of the amount of rain we receive. Since WWII logging Arkansas has been sustainable. Throughout the twentieth century, companies, large and small, were active across the state. Dierks Forests, purchased by Weyerhaeuser in 1969, had large lumber operations in Mountain Pine (Garland County) and other communities in the Ouachitas. Potlatch had a large lumber operation in Warren and kraft mills in Pine Bluff and McGehee (Desha County). Anthony Timberlands had a large lumber and forest products operation in Bearden (Ouachita County), and Green Bay Packaging had a kraft mill and lumber operations around Morrilton (Conway County). International Paper had lumber operations in Malvern (Hot Spring County), Leola (Grant County), and many other small towns. None of your doom and gloom came true.
The economic crash of 2008 had a terrible impact on logging. No more houses being built pulled back the demand. It wasn't because we ran out of trees. We ran out of customers. Your draconian description of Pine Bluff is inaccurate. Blaming the crime rate in Pine Bluff on International Paper is more than a stretch. The more you talk about the subject the more I think you don't know what your taking about.
Dr Ray Stantz: Personally, I liked the university. They gave us money and facilities, we didn't have to produce anything! You've never been out of college! You don't know what it's like out there! I've *worked* in the private sector. They expect *results*

LeanDoc
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Re: Pulp mill lower Caddo east of Amity AR

Post by LeanDoc » Fri Jul 29, 2016 8:44 pm

Yarborough,

My apology if I said something you don’t want to hear, I respect your opinion.

Forest carbon offsets and other types of carbon credits paid by polluters (in Arkansas or other states) can be used to compensate forest owners. All they would have to do is keep secure, standing forests to stop illegal logging and arson. Same for National Forests.

What I have posted is based on the facts I have. Unfortunately, AEDC refuses to explain why giving $300 Million to China, paid with our taxes, is the best investment Arkansas can make. How is investing in one county better than investing $10 Million in 30 counties helping local businesses with no pollution or deforestation? AEDC, in my opinion, does not understand the total costs of a 700,000 TPY mill. AEDC did not have to give China one cent. Sun can’t build fluff mills in China, they have cut down their forests, used their rivers and polluted the air.

Tourists come to Arkansas to get away from noise, pollution, road traffic and to enjoy our landscapes. The 2015 tourist revenue was $7 Billion. Arkansas can double the tourist revenue investing in roads, clean air, and clean water. Here are some numbers for 2016: Four cities (Harrison, down 0.7%; Pine Bluff, down 13.9%; Rogers, down 11.1%; and Russellville, down 35%) among the 17 posted hospitality tax collection declines in the January-February 2016 period.

Forests are the best protection for extreme floods. Without forests, extreme rains flood roads and towns. Here is a Forbes report for 2016: “Massive Floods Cost China $44.7 Billion So Far This Year; 'Ruthless' Urbanization Takes Its Toll. China is currently experiencing its worst flooding in nearly 20 years. 28 provinces, thousands of counties, and hundreds of cities in both the north and south of the country have found themselves submerged, 60 million people have been impacted, over a half a million have been forced from their homes, and 300 have died.”

We have extracted coal, minerals, timber and polluted rivers and the atmosphere for decades ignoring the consequences. We have few hardwoods and old growth forests left. We can’t afford more pollution and deforestation. The Ouachita River is already polluted with the Koch Crossett mill.

Yarbrough
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Re: Pulp mill lower Caddo east of Amity AR

Post by Yarbrough » Sun Jul 31, 2016 11:28 am

LeanDoc,
Maybe I'm too blunt. We do agree on a few points though. Trees are good and trees absorb CO2,,,, especially young trees. Yes they are a great buffer and I like you, don't want Arkansas denuded of trees. I don't like pollution anymore than you do. However you are saying things that are not true.

The state of Arkansas is NOT giving anybody 300 million dollars. It is not a binary choice of giving 300 million to communities OR the SUN company or whatever it is called. The 300 million is tax breaks and incentives. They are not getting a 300 million dollar check from Arkansas. "If" they build this plant over time they are taxed 300 million less than the standard tax rate already on the books for a business like this. Arkansas will get this money back many times over. You are misrepresenting this on purpose.

The reason Arkansas is willing to give up that money in projected revenue is because we are competing with other states and or countries for this company's business. Arkansas is asking for this business,,, not having it forced on us. We want this business because it has been successful for us in the past.

Your use of tourism numbers being down because of pollution is absurd. Tourism is down everywhere, nationally and locally. Tourism is down because of this piss pour economy. 45 million people on food stamps(modern day soup lines) are not vacationing anywhere. When you come on here and blame the logging industry for bad tourism numbers you are just lying to people.

As far as you blaming the pollution on Koch Crossett mill, again you saying something that is inaccurate at best. Pollution of the the Ouachita River is caused by the Georgia Pacific Paper Mill in Crossett, the discharge from the City of El Dorado Wastewater System and the leaching of wastewater from the wastes generated from the former vanadium mine, UMETCO in Hot Springs. Blaming it solely on logging is not true.

LeanDoc, your asking the entire state to snub this business. To not accept the tax revenue. To shun the payroll being pumped into the state. For the citizens not to work for this company directly or indirectly if they choose to. For the state not to profit from one of it's renewable natural resources.

Your asking for Arkansas to ignore our past experience in making this decision. Not to use the known data from the past to predict the future. Your stating that "if" Arkansas were to allow this logging plant/operation start up, it would end in a terrible catastrophe.

I'm saying we've already been there, done that, and have the T-shirt to prove it. I'm saying the states past experience should be used when making this decision.

Arkansas past experience with logging operations is a better unit of measurement to use than your opinion.(no matter how emotional you are)

The problem with activist is you can never get the truth out of them.
Dr Ray Stantz: Personally, I liked the university. They gave us money and facilities, we didn't have to produce anything! You've never been out of college! You don't know what it's like out there! I've *worked* in the private sector. They expect *results*

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Re: Pulp mill lower Caddo east of Amity AR

Post by LeanDoc » Sun Jul 31, 2016 3:42 pm

Yarborough,

To be blunt, we have two choices: one is to start taking care of Mother Earth hoping is not too late; the other is continue polluting and using nature as an infinite resource. The second choice would guarantee the extinction of most life in this planet. Humans would be the first to go. The Earth does not need us; it would be much better without us. The Earth is fighting back and we do not stand a chance.

1. Why pay Sun? You say “The reason Arkansas is willing to give up that money in projected revenue is because we are competing with other states and or countries for this company's business. Arkansas is asking for this business, not having it forced on us.”

Do you consider competing with Mississippi, the poorest state in the US, or third world countries like Laos and Vietnam an honor? Selling forests to high-volume low-cost wood mills benefits Sun, not the forest owners. Mills pay the lowest price and demand on-time deliveries.

We do not need the largest wood mill in the US. Forest carbon offsets would give forest owners risk-free long-term revenues; carbon credits are traded worldwide, this is not a new idea, and all it needs is legislation to make it work. Easier than building a $1.4 billion mill, multimodal train facility, roads and polluting for 40 years.

Arkansas foresters are behind the times. They ignore the benefits of the forests and see them as pine plantations; the value of the forests is measured as stumpage prices. Clean air, clean water, and flood protection are ignored. Unlike the West Coast where the impact of global warming can’t be ignored, Arkansas is proud to export 30 percent of the power generated burning fossil fuels. Do you remember Arkansas the 2015 floods?



2. You say, “We want this business because it has been successful for us in the past.”

No, it has not. The last SuperProject was the Koch Big River Steel Mill. Worldwide demand for steel is down; no one is building steel mills. The reason to build the mill was to use the extra electric power generated by out-of-state investor-owned coal-fired power plants. Shutting down investor-owned old polluters would be the rational choice. Here are two of the worst, Entergy White Bluff Power Plant 1,480-megawatt coal-fired power station at Redfield, and the AEP/SWEPCO Flint Creek Power Plant, near Gentry.

Peace

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Re: Pulp mill lower Caddo east of Amity AR

Post by LeanDoc » Sun Jul 31, 2016 3:59 pm

Yarborough,

You asked about the $300 million paid to Sun. I would need to post a spreadsheet, the details are boring. Let me try to answer.

You are correct, Sun is not getting a check. But the incentives given to Sun are real money paid with our taxes. All public services (roads, sewer, police, etc.) are paid from our taxes; Sun will benefit from public services, if Sun does not pay their share, Arkansans cover the bill.

The $300 million is my best estimate using conservative assumptions. It could be a lot more. The information I have is from the AEDC Memorandum (MoU) signed by Gov. Hutchinson in April 2016. This is the only document available from AEDC; Mike Preston’s office has the details of the agreement.

1. Case in point: The MoU says, “Property Tax Abatement: The project (estimated $1 billion or more in investment for building and equipment) can be financed with Industrial Revenue Bonds (IRBs). The City of Arkadelphia and Clark County agree to allow Sun Paper to finance the project with Industrial Revenue Bonds (IRBs) which allows the City and County to collect local property taxes at a reduced rate.”

A bond is a loan used to finance large projects. The information on the cost of the IRBs bonds is incomplete. For example, if the cost of the mill is $2 billion, would Sun finance the entire amount with IRBs bonds? What interest rate Sun would pay for the $2 billion? How many years would Sun have to repay the loan? What would happen if the bonds are not repaid on time?

2. In addition to AEDC incentives, Clark County had to provide additional incentives to sweeten the pot. They had no choice, El Dorado, Camden and other sites were asked by AEDC to bid. Clark County is paying Sun $92 Million, as reported in the news “Not only will it pony up $10 million to help with infrastructure costs, county officials agreed to a 65 percent abatement of property taxes over 20 years. That's a total of $92 million the county will give up to secure the Sun Paper plant.”

Call Mike Preston, he has the information, he will be happy to talk with you. There is no free lunch.

Executive Director, AEDC
501-682-7351
mpreston@arkansasedc.com

Peace

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Re: Pulp mill lower Caddo east of Amity AR

Post by LeanDoc » Wed Aug 03, 2016 9:02 am

Yarbrough,

I got an email notification but I don’t see your August 2nd comment on the blog. Would you please post it again? Thanks.

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