Baileyville favors bond float, waits for LP sale decision

Approximately 50 voters of the town of Baileyville, at a special town meeting held August 3, gave their approval for the town to float a bond in the amount of $2.5 million to assist in a financing package for Ecomelt Inc., a company that plans to melt basalt rock to produce a continuous filament that can be used for a variety of industrial uses. Ecomelt is negotiating with Louisiana-Pacific Corporation (LP) to purchase the vacant oriented strand board (OSB) complex, which includes a boiler that produces electricity.

In 2002, LP purchased the OSB plant from Georgia Pacific Corporation and operated it sporadically before finally closing it last year. At this time, LP has not disclosed its plans for the facility.

Baileyville Town Manager Scott Harriman assured voters that the town would only be a conduit for a finance package that Ecomelt is seeking through the Finance Authority of Maine (FAME), the agency that would make the decision to loan money. Harriman assured Baileyville residents that a "yes" vote would not mean the project would go through at this time. The state will require various types of security and guarantees to secure bonds or loans. The company will also need to furnish proof of assets.

Lee Bragg, the town's attorney, said there would be language in the agreement between Ecomelt and the town that would hold the company liable for the repayment of the bond package.

Several voters expressed concern about any liability to the town for any environmental damage or cleanup associated with the project. Bragg said that the company, not the town, would be liable for any cleanup. John Wakin, spokesman for Ecomelt, said, "There are no emissions. This is 20th century technology."

According to papers of incorporation filed with the secretary of state of Maine, P.J. Wooding of Meddybemps is listed as the company president and Charles L. Conway Sr., a Pennsylvania certified public accountant, as the treasurer of Ecomelt. One resident asked why Wooding was not present to discuss the project. Both Harriman and Wakin indicated that Wooding is a private person and would be uncomfortable standing in front of a large group of people. Wooding holds a number of patents.

Wakin says the company has contracts in hand from Honda, Toyota and General Electric. Questioned more closely about the contracts, Wakin said there were a lot of questions that he could not answer while the company is involved in negotiations.

Answering concerns about employment, Wakin said chemical, mechanical and electrical engineers would be needed, but there were also other jobs that would be available, including jobs for secretaries, quality control personnel, maintenance people and weavers. At first, 70 to 75 jobs would be available, and then the number would increase with added production and expansion of the facility. In full production, the company could employ as many as 400 people.

Wakin disclosed that the basalt will come from a Grand Manan quarry and be transported on the Grand Manan ferry. He says he has an agreement with a quarry owner, but would not disclose the name of the Grand Manan supplier. Wakin indicated it might be possible to barge the material to Eastport. The final leg of the trip for the rock would be by truck to the Baileyville site.

John Murray, industrial approvals engineer with the New Brunswick Department of Environment and Local Government, says, "To the best of our knowledge there is no approved quarry operation on Grand Manan at this time. Historically there have been quarries, but none approved right now." According to Murray, a permit to quarry would be required from his department for any contractor engaged in quarrying operations.

According to Wakin, Governor John Baldacci, Jack Cashman, commissioner of the Department of Economic and Community Development, and Jonathan Daniels of the Eastern Maine Development Corporation have responded favorably to the proposed project.

Following the vote, Harriman says there is nothing new until LP makes a decision concerning any sale of their holdings. He says, "If it takes LP one to three years to make a decision, this could be the death knell for the project." Wakin says the LP complex is necessary because the boiler would produce cheaper electricity for the project. Electrical rates would be higher at other sites that might be considered.