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June 17, 2011

Lawmakers approve landfill bill

By Mainebiz News Staff

The state will acquire an aging and nearly full landfill in East Millinocket as part of lawmakers' attempt to save two Katahdin Paper mills and hundreds of jobs.

The Dolby Landfill has for decades been the receptacle for paper-making waste from the now closed Millinocket and East Millinocket mills. The landfill is seen as an obstacle to attracting a new buyer for the mills, the Bangor Daily News reports.

The parent company of Katahdin Paper LLC, Brookfield Asset Management, is negotiating a potential deal with a Hong Kong investment firm that last September bought the Domtar mill in Baileyville for $64 million. Brookfield told state officials the state must take over the landfill or it would permanently dismantle the mills to pay for the costs of closing and cleaning the landfill.

Some lawmakers objected to the deal. Sen. Cynthia Dill, D-Cape Elizabeth, called it "nothing more than corporate blackmail," according to the paper. But Sen. Thomas Saviello, R-Wilton, said this was an important step to try to bring back 400 jobs to the rural area.

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