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The Maine Leaseholders Association

P.O. Box 62
Millinocket, ME 04462
(207) 723-4476

October 16, 2006

Marcia McKeague
Katahdin Timberlands
One Katahdin Avenue
Millinocket, ME 04462

Dear Marcia,

In light of the increase in valuation of camp lots by the state bureau of taxation, lease costs have increased dramatically. The board of directors of The Maine Leaseholders Association asks that you adjust our formula for determining lease prices. We fell the “valuation x percent” should be reduced by 2.5%.

Furthermore, we ask that you reconsider extending the free lease for all retired employees of GNP, Georgia Pacific, Bowater and Inexcon.

We would be happy to meet with you to discuss this.

Thank you.


Stu Kallgren, President
Maine Leaseholders Association
PO Box 62
Millinocket, ME 04462


    Dick Davies
    Al Mosca
    Pat Hunt
    Peter Pray
    Jim Giffune

Public Notice

Leaseholders Column

The bill we have before the legislature, LD 760, was heard on Monday March 25th. There were some problems with language in the laws that were passed last year to protect leaseholders property. I have asked to have the bill tabled for the time being.

The workshop on LD 760 will be scheduled soon, so watch the web site and legislative alerts, for a date and time. If the language in the laws passed last year had been worded as we had written, the situation in the Seboomook and Moosehead area would not have happened.

The law firm of Doyle & Nelson have agreed to give all members of the Maine Leaseholders Association a 10 percent discount on legal fees for services provided.

Craig Nelson, a partner at Doyle & Nelson is working on the Moosehead Lake land sales. Another new landowner in the Moosehead area, Merriweather LLC, is selling leased lots in the Seboomook area and on Moosehead Lake. The Community Press and The Moosehead Messenger are covering this story. We have also had calls from the Portland Press Herald and Channel 13 News. Channel 13 interviewed leaseholders in the area and are waiting to hear from the landowners and land managers.

It is my opinion that the landowners in the Moosehead area are trying to fix prices at the leaseholders expense. Wagner Land Management, Plum Creek and Land Vest have been a problem for leaseholders of camps and businesses in this area since the breakup of the Great Northern Land.

We’ll keep you updated as developments occur on these issues.

Stu Kallgren, President
Maine Leaseholders Association

Addition to Leaseholders Column

Lease payments/bills for Great Northern leases will be sent out soon to hundreds of leaseholders that have been affected by the closing of the mills in Millinocket and East Millinocket. After being out of work for nearly five months, it is a concern these lease payments may be yet another bill some people may find impossible to pay. We have contacted company officials and expressed our concern with this situation.

Many leaseholders were employees at Great Northern and have lost thousands of dollars in severance pay and vacation pay because of the chapter 11 bankruptcy filing, and creative financing of the former owner of Great Northern Paper. We have asked Brian Stetson of Great Northern, to look into this situation.

We believe this is an opportunity for the new owners of Great Northern Paper to help the people who have been affected by the bankruptcy. Eliminating, or at the very least, reducing the lease payment for 2003 would be a good start in rebuilding public relations.

Stu Kallgren, President
Maine Leaseholders Association

Check with this space periodically for notices, which will be posted as needed.

For more information, call Stu Kallgren @ 723-4476

The Maine Leaseholders Association