CHAPTER 45
S.P. 751 - L.D. 2085
An Act Relating to the Transfer to GNE, LLC of Certain Privileges Bestowed by the Legislature upon Great Northern Paper, Inc.
Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the State has granted certain rights, privileges, immunities and franchises to Great Northern Paper, Inc. and its predecessors in interest, through a series of private and special laws, including, but not limited to, the authority to build, own, operate and maintain paper production facilities and to construct, own and operate dams and hydroelectric and related facilities for the purpose of generating and transmitting electricity; and
Whereas, there is ambiguity regarding the extent to which the rights, privileges, immunities and franchises granted by the State to Great Northern Paper, Inc. and its predecessors in interest, other than those otherwise granted to a corporation under the Maine Revised Statutes, Title 13-A, are transferable or deemed to be transferable in connection with the sale or other conveyance by Great Northern Paper, Inc., or its successors in interest, of its dams and hydroelectric and related facilities located in the State; and
Whereas, the waters of the State of Maine are owned in perpetuity by the State in trust for the people of the State; and
Whereas, Great Northern Paper, Inc. has entered into an agreement to sell its dams and hydroelectric and related facilities, with an anticipated closing in January 2002; and
Whereas, the sale of the dams and hydroelectric and related facilities will benefit the pulp and paper production and related facilities that are located in the towns of Millinocket and East Millinocket, and the Katahdin region will benefit from the operation of and capital investment, both present and future, in the dams and hydroelectric and related facilities; and
Whereas, the Legislature finds that the Katahdin region will benefit by an increase in the electric transmission line capacity serving the region; and
Whereas, GNE, LLC intends to seek permits to invest approximately $92,000,000 over 20 years to improve the dams and hydroelectric and related facilities and to seek permits expeditiously to invest approximately $16,000,000 to increase to 130 megawatts the electric transmission line capacity connected to the dams and hydroelectric and related facilities and serving the Katahdin region; and
Whereas, the sale of the dams and hydroelectric and related facilities will result in a capital gain to Great Northern Paper, Inc., on which it will pay state income tax; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1. Authority to transfer corporate rights. Great Northern Paper, Inc. and its assigns, designees, transferees and any other successors to any of the rights, privileges, immunities or franchises that have been granted by private and special law to Great Northern Paper, Inc. and its predecessors in interest, may, in connection with the sale, mortgage or other conveyance of any interest in its dams and hydroelectric and related facilities, referred to in this Act as "hydropower facilities," sell or transfer any such rights, privileges, immunities or franchises related to the hydropower facilities and, notwithstanding any private and special law to the contrary, but subject to all other applicable provisions of law, including, but not limited to, the Maine Revised Statutes, Title 35-A, sell or transfer and transmit electricity to any 3rd parties. Nothing in this paragraph may be construed to affect or limit any rights, privileges, immunities or franchises granted by private and special law to or obligations, conditions or limitations imposed upon Great Northern Paper, Inc. and its predecessors in interest with respect to anything other than the hydropower facilities.
In connection with the closing of the sale of the hydropower facilities by Great Northern Paper, Inc., Great Northern Paper, Inc. shall enter into an agreement allowing Great Northern Paper, Inc. to purchase for a 10-year period, with an option to purchase for another 5 years, an amount of electricity that is not less than the amount of electricity generated by the hydropower facilities. If such an agreement is not entered into, Great Northern Paper, Inc. may not sell or transfer, pursuant to the authority granted under this section, any of the rights, privileges, immunities or franchises that have been granted by private and special law to Great Northern Paper, Inc. and its predecessors in interest and may not, pursuant to the authority granted under this section, sell, transfer or transmit electricity to any 3rd party.
The holder of any license issued under Part I of the Federal Power Act, 18 United States Code, Sections 791a - 825r, for the Hydropower Facilities shall provide to the Governor and the Legislators representing the districts located within the counties of Penobscot, Piscataquis and Aroostook written notice of any of the following events sent by certified mail, and shall provide the notified persons with an opportunity to meet and discuss any resulting impacts to the Katahdin region, in any of the following circumstances: prior to the filing of any application to transfer any such license; prior to the filing of any notification required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976, 15 United States Code, Section 18a with respect to the Hydropower Facilities; and no later than 10 days after the cessation of all paper production at either the paper production facility in Millinocket or the paper production facility in East Millinocket for a period of at least 90 days, referred to in this Act as a "Paper Mill Closing." If the holder of any such license fails to comply with the requirements of this paragraph, the holder of the license may not sell or transfer, pursuant to the authority granted under this Act, any of the rights, privileges, immunities or franchises that have been granted by private and special law to Great Northern Paper, Inc. and its predecessors in interest and may not, pursuant to the authority granted under this Act, sell, transfer or transmit electricity to any 3rd party.
The authorizations granted and the obligations, conditions and limitations imposed under this Act are pursuant and subject to the State's ownership of the waters of the State.
Sec. 2. Conditions and limitations. Within the period beginning at commencement of operation of increased electric transmission line capacity serving the Katahdin region and ending 15 years after the transfer to GNE, LLC of the Hydropower Facilities, if there is a Paper Mill Closing the owner of the Hydropower Facilities shall pay an annual amount of $75,000 to the economic development body serving the Katahdin region, as identified by the Department of Economic and Community Development, for each Paper Mill Closing. Payments cease upon the resumption of paper production at the affected mill. For purposes of this section, "increased electric transmission line capacity serving the Katahdin region" means any electric transmission lines that will allow the continuous transmission of electricity generated by the Hydropower Facilities to or from any consumer other than the paper production facility in Millinocket or the paper production facility in East Millinocket and having a capacity to transmit in excess of 70 megawatts.
The owner of the Hydropower Facilities and the owner of the paper production facility in Millinocket or the paper production facility in East Millinocket may not enter into any agreement or understanding with each other under which the owner of the paper production facility in Millinocket or the paper production facility in East Millinocket receives revenue from the sale of electricity from the Hydropower Facilities and there is a Paper Mill Closing for the purpose of allowing or increasing the sale of the electricity from the Hydropower Facilities to any other purchaser or entity or into the wholesale electric market. If the owner of the paper production facility in Millinocket or the paper production facility in East Millinocket enters into such an agreement or understanding, the owner of the paper production facility shall pay to the Treasurer of State, upon the Paper Mill Closing, an amount equal to the value of all tax credits or reimbursements relating to property associated with that paper production facility received by the owner pursuant to the Maine Revised Statutes, Title 36, chapter 915 after the effective date of this Act. If the owner of the Hydropower Facilities enters into such an agreement or understanding, the owner of the Hydropower Facilities may not sell or transfer, pursuant to the authority granted under section 1 of this Act, any of the rights, privileges, immunities or franchises that have been granted by private and special law to Great Northern Paper, Inc. and its predecessors in interest and may not sell, transfer or transmit, pursuant to the authority granted under section 1 of this Act, electricity to any 3rd party.
Sec. 3. P&SL 1969, c. 62 is repealed.
Sec. 4. P&SL 1997, c. 71 is repealed.
Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.
Effective January 28, 2002.
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