A deal made, whether with the shake of a hand or by the signing of a paper, should be upheld by all parties involved.
But according to lawsuit filed by three large forestland holders, the state of Minnesota has reneged on a deal, or a contract, and should be held accountable.
Forest Capital Partners LLC, through its subsidiary Meriwether Minnesota Land and Timber, has joined with Blandin Paper Co. and the Potlatch Corp. in a lawsuit about the state’s capping at $100,000 annual incentives for lands enrolled in 2009 in the Sustainable Forest Incentive Act program. The companies are seeking back payments, interest and guarantees that future payments won’t be affected.
Court documents show the companies make a strong argument that by capping the payments, the state has disregarded contractual obligations it has with the companies.
The companies were to receive per acre payments for agreeing to be better stewards of the forestlands, restrict use of their land and for allowing public access to their land.
In 2009, the incentive to remain in the program was $15.67 per acre. Once enrolled, the land must remain in the program for at least eight years and there is a four-year waiting period for removal from the program. Meriwether says in court documents that it only received 38-cents per acre for its 262,884 acres enrolled at that time because of the cap.
Clearly, the state was having budget problems in 2009 when then-Gov. Tim Pawlenty attempted to use executive authority, or unallotment, to cap the payments. A court struck down the cuts, but the Legislature in 2010 agreed to the cap on land enrolled in 2009. But budget troubles, whether in a household or a state government, does not justify breaking contracts, covenants or deals.
In our own homes, we must still make loan payments and other contractual payments regardless of whether we are flush with money or struggling financially.
The same should go for the state.
