RESPONSE by Friends of White Salmon to SDS “Project Steelhead”

Pat Arnold, on behalf of Friends of White Salmon, has submitted the following response to SDS’s “Project Steelhead” solicitation:  

Friends of the White Salmon River
friends@friendsofthewhitesalmon.org

Statement on SDS sale opening brochure May 4, 2021

“Project Steelhead” reads the headline on the glossy brochure announcing the opening of the sale of SDS. Perella Weinberg Partners, (P/W/P) a large international investment advisory firm, based in New York City, prepared this document to market SDS to potential investors.

“Key Investment Highlights” tells investors where the profits are to be found.
     · “potential for significant harvest” meaning, of course, that the new owner can cut a lot of trees really fast.
     · “Higher and Better Use” sale, meaning selling parcels along the White Salmon and other waterways for high-end residential use with “river views” and “river access”. Shoreline buffers will disappear.
     · “Mature forest Inventory with 85% over 50 years old, and potential for significant harvest”, meaning not only can the new owner cut fast, they can cut high-value trees.

NOWHERE is there mention of a chance to protect the environment, store carbon, or help the community. SDS is nothing more than a bunch of opportunities to make lots of money – all the parts are put on display, but the sum of those parts, a firm that has been a good steward of the land and a good community partner, is nowhere to be seen.

So now we know what we look like, our forest, our fish, our roads, our jobs, and our community to this large investment firm, now speaking for SDS. Fodder for investment profits is what we look like to them. You can read about P/W/P here.

We are not surprised at this profit before people, corporations before community approach. We had hoped that SDS would pay some mind to the needs and desires of this community and these watersheds that have supported them for so long.

SDS has for decades refused to take the simplest step to protect fish habitat on the Lower White Salmon Wild & Scenic segment. That step would have been to hold to their agreement to sell 700 acres into public hands to protect the river. They first agreed, then walked away. Profits before fish, they said then, and they say again now.

“Project Steelhead” indeed. It is hard to comprehend how this name could have been chosen for this sale. Hubris? Blindness? Ignorance? Or just plain venality, hoping that the name of this magnificent, courageous creature will disguise the harm being done to the species and the world which it needs to survive.

We are deeply saddened to be writing this. We have spent many hours over many months working with the hope of a more humane outcome. The sales brochure makes it absolutely clear that the outcome will be maximum profits for SDS and for investors, at whatever price the rest of us will pay. Weep with us.

 

 

Project Steelhead – Teaser

Perella Weinberg Partners (“PWP”), a company comprised of partners and analysts from New York, is advising on the sale of SDS.  They have created and are circulating an attractive, colorful, glossy introductory brochure entitled Project Steelhead – Summary Overview, outlining key investment highlights — a feathered lure, so to speak —   for those interested in the opportunity to invest.  

Community awareness of impact of SDS sale

As SDS prepares to sell their corporate assets, local community groups, including Friends of the White Salmon, are engaging the community to bring “about awareness of the potential impacts the sale could have on the Gorge region.” The March 2, 2021, Columbia Gorge News article by Jacob Bertram outlines many of these concerns.   How the assets are sold and to whom they are sold could impact the community economically as well as have negative impacts on timberland and critical habit into the future.  

Friends of the White Salmon encourages you to become involved.  FWSR  invites you to attend the Premiere showing of Joe Roth’s Uprooted, a one-hour Facebook event that will explore the impacts the SDS sale will have on the community.  This Zoom event will be held March 14th, 2021, from 7:00 to 8:00 p.m.   

 

Statement on the SDS Lumber Company Sale

Friends of the White Salmon River is deeply rooted in the White Salmon watershed and in Klickitat and Skamania Counties. Activists since 1976, we’ve worked hard to protect the river. SDS Lumber Company is also rooted here, acquiring 100,000 acres of timberland over 75 years and managing that land and the mill for long-term sustainability.

SDS announced upcoming changes for the company’s future: All company assets, including timberland and the mill, will be placed on the market in the spring of 2021. This news, especially at this time, is shocking and raises serious concerns about the effect of the sale on its employees, local businesses, and the forest. SDS owns timberland in five counties, including Hood River, Wasco, Skamania, Yakima, and Klickitat, so their decision about future ownership will have regional effects.

SDS provides significant benefits to the community. It is a major economic engine. They directly employ about 300 people, and they contract with local timber operators. SDS owns the land in White Salmon where our supermarket and library are located. Their business is crucial to ancillary and supporting businesses. Innumerable community events and charities have benefited from SDS donations and support.

Equally, SDS forest parcels are deeply woven into the life of the area. The parcels are scattered throughout the region, often adjoining public land and along waterways. People hike, hunt, launch their boats, gather food, and enjoy wildlife observation on SDS lands. Many animal species utilize the habitat, corridors, and access to water provided by these parcels. 

Our region is noted for biological diversity. Much of the SDS land plays a role in maintaining that diversity. SDS land is concentrated in watersheds that are crucial for salmon, steelhead, native trout, lamprey, and other native fish species. SDS lands in the Rattlesnake Creek watershed are critical for support of many of these fish species. SDS land also includes important oak habitat. Many of the seeps, springs, and tributaries that feed the White Salmon River originate on or cross SDS land.

SDS’ long-term/long-rotation timber management provides significant benefits to humans and wildlife. The company is notable for compliance with timber harvest regulations, including those concerning cultural resources. Leaving aside the question of whether those regulations sufficiently protect the environment, which they do not, it is clearly preferable for a company to comply with existing laws, and SDS largely has.

We know that the company has a responsibility to its shareholders; we hope and expect that responsibility can be met and still ensure the best possible outcome for the land, the community, the forest, and SDS. We think it is possible to preserve the Stevenson family legacy and to meet the shareholder financial goals while supporting the community and the watersheds where the company operates.

Protection of the watershed and the river is the mission of Friends of the White Salmon River, so of course our thoughts turn first to those issues. The potential negative outcomes are easy to see: The sale of SDS lands has the potential to lead to short-term timber harvest, followed by parcel fragmentation and residential development, leading to environmental stress and a host of potential negative changes.

The continued operation of the mill has been a driving force in maintaining the long-term harvest rotation practices used by SDS. We value the knowledge and skill and well-being of the many SDS employees — our friends and neighbors. For these and many other reasons, we would prefer to see the SDS business continued as a vertically-integrated forest and mill enterprise.

As a local environmental group, we do not presume to speak for others. We have, however, engaged in many conversations with people from all walks of life in the region who will be affected by the decision SDS makes. There is a high level of local concern about outcomes.

We are also speaking to those companies and organizations interested in acquiring the assets of the SDS Lumber Company. These are some of the concerns we’ve heard.

  • Preserving the current business structure with forest land, mill, and equipment under one ownership
  • Maintaining healthy forest conditions with diverse tree species
  • Keeping economic benefits in the community
  • Providing long-term habitat and wildlife corridors
  • Protecting cultural resources, including treaty rights on ceded land
  • Preserving public access to the land and streams, continuing current public access policies
  • Storing carbon in the forest and land and using forest management practices to improve climate conditions
  • Supporting the local economy with stable employment opportunities with benefits
  • Implement forest practices for salmon recovery, including maintenance of water quality
  • Exercising land management practices that protect ground and surface water supplies for drinking water
  • Strengthening wildfire prevention at the landscape level and for residential safety
  • Completing the promised transfer of SDS parcels within the Wild and Scenic river segment
  • Avoiding forest fragmentation and parcel development.

We think public discussion, including local elected officials, is essential. An opportunity to express concerns and work toward the future together is both empowering and reassuring.

We invite people to start this discussion on our webpage. Follow this link and leave your comments and thoughts. We will seek ways to make on-going discussion productive and useful.

We encourage SDS to share what information they can over these next months and to energize the power of the community toward positive results for all.

SDS Mill and Timberland to be sold!

Rumors in the fall of 2019 that SDS was going to sell its mill in Bingen, Washington, and/or its 101,000 acres of timberland were confirmed by their press release on September 21, 2020.   Beginning September 30, 2020, Sandra DeMent wrote a series of articles printed in The Goldendale Sentinel providing an informative historical background of the company and tentative proposals for its future. An interview with the new CEO, covered in the  December 30, 2020 article, confirms that SDS intends to sell the entire company in the near future.  The sale of SDS has potentially large, negative consequences for many aspects of life for the people and critters here in the Gorge.