| Type | Public (NYSE: PCL) S&P 500 Component |
|---|---|
| Industry | Real estate investment trust |
| Founded | 1989 |
| Headquarters | Seattle, Washington, USA |
| Key people | Rick R. Holley, CEO, President, & Executive Director |
| Revenue | $1.61 billion USD (FY 2008)[1] |
| Operating income | $344 million USD (FY 2008)[1] |
| Net income | $233 million USD (FY 2008)[1] |
| Employees | 2,000 (2007) |
| Website | http://www.plumcreek.com |
Plum Creek Timber (NYSE: PCL) is the largest private landowner in the United States. Most of its lands were originally purchased, or otherwise acquired as timberland.[2]
Headquartered in Suite 4300 at 999 Third Avenue in Seattle,[3] Plum Creek was spun off from Burlington Resources as a master limited partnership on June 8, 1989. It converted to a real estate investment trust on July 1, 1999 in order to obtain tax and accounting advantages available to concerns primarily involved in real estate development.
Burlington Resources was created from the Burlington Northern railroad's natural resources holdings in 1988; Plum Creek Timber is therefore heir to some of the 47 million acres (190,000 km2) of timberland originally granted by the federal government to the Northern Pacific Railway in the 1860s.
Today Plum Creek Timber owns and manages timber lands in the United States. The company engages in the sale and management of timber lands, and the sale of nonstrategic timber lands. It also produces a line of softwood lumber products, including common and select boards, studs, edge-glued boards, and finger-jointed studs. These products are targeted to domestic lumber retailers, such as retail home centers, for use in repair and remodeling projects. These products are also sold to stocking distributors for use in home construction.
In addition, the company engages in the natural resource businesses that focus on opportunities relating to mineral extraction, natural gas production, and communication and transportation rights of way. As of December 31, 2004, the company owned and managed approximately 7.8 million acres (32,000 km²) of timber lands in the northwest, southern, and northeast U.S., as well as owned and operated 10 wood product conversion facilities in the northwest U.S.
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In late 1999, Congress approved a land swap involving more than 42,000 acres (170 km2) of forest land in the Cascade Mountains. In the deal, Plum Creek gave up 31,000 acres (130 km2) of land, much of it along Interstate 90 east of Seattle, in exchange for 11,500 acres (47 km2) in Federal lands. Plum Creek had warned the U.S. Government that it would log the land should the deal not go through. The federal government also had to pay $4.3 million as part of the deal.[4]
In 2008, Senator Max Baucus arranged for appropriations in the 2008 Farm Bill to be used to purchase 310,000 acres (1,300 km2) of Plum Creek land in Montana. This project became known as the Montana Legacy Project.
There is some controversy over the management of Plum Creek's timberland, mostly from environmental groups who decry the recent move from Plum Creek as a timber management company into a developer of its land, taking advantage of the much more profitable land values that have occurred for undeveloped land in the late 1990s until the crash in real estate prices. Plum Creek is engaged in a proposal for a large resort and development tract in the Northern Maine Woods, on Moosehead Lake by Greenville, Maine, one of the largest undeveloped forests east of the Mississippi.
This follows on the heels of their development of managed land in Washington state (Suncadia) and Montana (Moonlight Basin, Yellowstone Club) into costly resorts, bringing golf courses and luxury housing into the deep forests. The debate pits conservation groups trying to balance recreation and protection, and the effects of sprawl and over-development upon wildlife, quality of life, and the employment of local populations who depend in part on the hunting, fishing and tourist trades which may be damaged by the over-development of the area.
Plum Creek believes in three principles: Replanting, Protecting Water Quality, and Managing Wildlife Habitat. Every year Plum Creek replants approximately 85 million seedlings and plans for the natural regeneration of millions of trees. Close to 2,000,000 acres (8,100 km2) of land owned by Plum Creek are a part of four habitat conservation plans across the country and in Montana are involved in a conservation agreement for the grizzly bear.[5]
In 2001, Plum Creek at their Medium Density Fiberboard facility completed the installation of a biofilter, a new air emission treatment technology. This technology uses naturally occurring bacteria to destroy air pollutants that are generated in the wood fiber drying and pressing processes. The technology doesn’t burn natural gas like most treatment systems do to destroy pollutants.[6]
They are also currently working on a Plum Creek Moosehead development. According to an environmental group, calling themselves the Native Forest Network (NFN), if approved by the Land Use Regulation Commission, Plum Creek’s plan would increase Maine’s total carbon emissions by nearly 8%.[7]
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