In the past 18 months, 22% of all the land in Maine (5 million acres) has been sold. Most of the
   land transactions were forestlands that have been sold by large, multi-national corporations
   through Limited Liability Corporations (LLCs) owned by the corporations themselves. The point
   of transferring ownership through LLCs is to avoid the payment of a transfer tax.

   In last year’s Legislative session, Sen. Michael Michaud of East Millinocket submitted a bill
   aimed at the collection of land transfer taxes by Limited Liability Corporations. The complexity
   of the legislation and the lack of time to deal with it caused the bill to die in committee with a
   unanimous ought not to pass vote. The result of failing to pass this legislation has now created a
   shortfall in the General Fund in excess of 5 million dollars!

   Although this practice of selling land through LLCs is currently legal, there has been no outcry
   from the Executive or Legislative branches! The State now faces a total short fall of $250
   million, and yet the practice continues with, it seems, Executive and Legislative knowledge.

   It seems to us that both bodies have a fiduciary responsibility to the citizens of the State of
   Maine. As it stands now, it is only the small landowner that bears the burden of land transfer
   taxes, while corporate landowners sell land through LLC’s with impunity!

   Meanwhile, The Department of Conservation is actively engaged in negotiations with several
   large corporate landowners to purchase easements on lands that would halt development in the
   so-called West Branch Project. At last count the state was offering the landowners 1\3 the fair
   market value of these lands. Once again, the bureaucrats in Augusta have duped the general
   public. In our view, the state already has in place within this department, a commission that
   monitors and reviews all development in the Unorganized Territories. Anyone who owns or
   leases land in the Unorganized Territories knows full well the power of the Land Use Regulation
   Commission. So what are the citizens of this state buying? It appears that while the state is
   facing a short fall of $250 million, the bureaucrats, are spending our tax dollars (both state and
   federal) to buy something that we already control. LURC does not allow development in the
   Unorganized Territories, on any large scale, period! The question still begs, “Just what is the
   citizenry buying?”

   Further, these West Branch lands that will be impacted by the easement(s) are currently in
   litigation. Allegedly the lands being negotiated have a legal encumbrance that provides for 30
   years free day use by all citizens of Maine. Should the plaintiffs prevail in the lawsuit, the value
   of the land will be markedly reduced! However, when approached by the lawyers for the plaintiff,
   the lawyers for the Forest Society of Maine, and the Governors office, refused to acknowledge
   the suit, and “preferred to do their own negotiations.”

   One of the negotiators in past easement purchases is Allen Hutchinson of the Forest Society of
   Maine. At a hearing conducted by the Public Access Committee at Pittston Farm last August, he
   stated that McDonald Investments and others had approached him about brokering an easement
   with the State in November or December of 1998. This is well before Bowater announced the
   sale of this portion of their land in 1999. When Mr. Hutchinson was asked if the Governor knew,
   he replied that he must, as the Commissioner of Conservation, Ron Lovaglio, was fully involved!

   The most egregious part of this whole questionable deal, is that one of the current landowners,
   Wagner Forest Management, Ltd., who avoided paying approximately one million dollars to the
   state in land transfer taxes, and its representative, Tom Colgan, refused to tell the legislature last
   winter who owned the land, is now in secret negotiations with the Conservation Department. All
   of this is being done without legislative oversight. If the deal goes through, the landowners could
   receive up to 50 million dollars, and the Maine citizens will apparently receive nothing in return,
   not even free public access. This is truly the Fleecing of Maine!