Update on the Cascada Chile project
GEOAUSTRAL PRESS RELEASE
December 25, 2000
Puerto Montt, Chile.
From the time of our last press release, Boise Cascade and Maderas Cóndor have developed a series of new strategies to keep their Cascada Chile project afloat, and they are currently searching for a third investor (see press release 2000-3).
New illegalities surround Cascada Chile
Geo Austral has officially requested that the Comptroller General, the State Defense Council and the National Properties Ministry cancel the 5-year contract Cascada Chile signed with the government to rent fiscal property in Ilque. The reasons for this request are the grave irregularities committed by the Animal and Plant Service (SAG, government organism that authorizes or forbids a change in soil use in all national territory) and the regional agricultural authorities when authorizing a change in soil use in the abovementioned property (registration number 2114-29). The SAG received a formal request from Cascada Chile to change soil use for all the properties where the company plans to construct its wood chip plant. The land in question has a total area of 134.85 hectares, divided into two lots (lot A has an area of 30.3 has. and B, 104.55 has.). However, there are 26.65 hectares that divide the two lots that do not belong to Cascada Chile, and SAG worker Juan José Pardo Muñoz brought this to the company’s attention, and suggested that these 26.65 hectares also undergo a change in soil use, but that this must be authorized by the land’s owner (the Chilean government) through the National Properties Ministry. How can it be explained then, that Omar Nail Ruiz, SAG acting regional director and Patricio Albonoz, acting director of the region’s agricultural authority, through their respective Informe Régimen de Tierras Regional N° 100 report from October 5, 1999 and the Ex N° 220 resolution from October 6, 1999, resolved and authorized a change in the use of soil for a total area of 165.8 hectares, which includes the rented fiscal territory of 26.65 hectares and a 4.3 hectare oceanfront lot owned by the government. The authorization for the latter lot was done without the knowledge of the Fishing Undersecretariat and the maritime authorities, whose job it is to protect the country’s maritime and coastal territories. Now, this means that the SAG and the regional agricultural authorities have authorized a change in land use to benefit the Cascada Chile project without requesting authorization from the land’s owner, in this case the State of Chile, and thus violated the conditions of the rental contract, extent resolution N° 452, letters g) "No improvements or modifications to this property are allowed without previous authorization from the regional properties ministry;" and i) "The tenant’s failure to follow any of the obligations or prohibitions established in this resolution will be sufficient cause to end the rental agreement by an administrative act, according to decree law D.L. 1.939 from 1977."
Boise Cascade evades Chilean justice.
For more than 3 years, the Chilean government, through the State Defense Council (CDE), has tried to legally notify Mr. Robert Crawford, who represents Boise Cascade and the Cascada Chile project, of the suit that exists against his project for the destruction of archeological ruins in Ilque (Cause 1143-98 from February 2,1998 located in the second court of Puerto Montt). Mr. Crawford and Boise Cascade continue fleeing from this legal responsibility, but in the next few weeks, the Chilean legal system will rule against the company and, according to demands by the Chilean state, the company will have to pay a fine of close to one million dollars and will be forced to repair the damages caused in the area.
Cascada Chile cannot sell any properties.
Due to the abovementioned legal suit, the State Defense Council on August 18, 2000 issued before the local court an official request or Precautionary Order, which was admitted by the second court of Puerto Montt as cause number 612-98. This order means that all properties owned by BC in Ilque and Huelmo are prohibited from sale, meaning that Boise Cascade can neither sell nor mortgage the properties it owns in the area. This way, the Chilean government can assure the payment of fines or the fulfillment of other sanctions that the court will make known over the next few weeks. The order also states that if Boise Cascade does not pay the fine for destroying archeological ruins, the Chilean government will publicly auction off the company’s properties, one by one, until it covers the cost of this destruction.
Now, if Boise Cascade has found a strategic partner or a buyer for its Cascada Chile project, this partner will be met by the surprise that none of the project’s properties can be bought or sold, and that none has an outlet to a public road, which makes the project’s realization all the more difficult.
Our organization, Geo Austral, is constantly monitoring this project and we will keep you informed about new actions and any other updates. We also call on you to remain skeptical about "official" news that this project has come to an end.Greetings to all.
Geo Austral
Geoaustral@telsur.cl
www.geoaustral.org
Tel. (56-65) 251812
Fax. (56-65) 258145