FOR IMMEDIATE RELEASE                                         ENR
MONDAY, FEBRUARY 6, 1995                           (202) 616-0189
                                               TDD (202) 514-1888

                   AND PAY $3 MILLION IN FINES

     WASHINGTON, D.C.  The U.S. Attorney's Office for Alaska and
the Justice Department's Environmental Crimes Section today
announced charges against the Ketchikan Pulp Company ("KPC") for
dumping harmful sludge and wastewater into Alaska's Ward Cove for
three years, including an intentional dump that lasted for five
straight days.  In a criminal plea agreement, KPC agreed to pay $3
million in fines for its actions, which violated an EPA permit
forbidding such dumping.

     The waters near the Ketchikan plant in Ward Cove have been
classified as "impaired" by EPA because of the adverse cumulative
effect from waste discharges including solids, toxic chemicals,
alkaline substances and oxygen-depleting materials that deprived
the cove of its potential as a marine habitat.  The vicinity of
Ward Cove is populated with numerous species of wildlife including
Killer Whales, Salmon, Halibut, Sea Otters, and various birds. 

     "KPC committed environmental crimes over a long period of
time," said Lois J. Schiffer, the Department's Assistant Attorney
General for Environment and Natural Resources.  "The plea agreement
gives the company significant incentive to clean up its act, and it
also includes management controls to help assure that KPC will not
pollute in the future."  

     "This case draws the line against environmental crime," said
Karen L. Loeffler, Acting U.S. Attorney for Alaska.  "Business as
usual is not a license to pollute the environment.  Protection of
our environment requires that those doing business in Alaska not
view environmental violations as simply a cost of doing business."

     The criminal plea agreement and criminal information, filed
today in Federal Court in Anchorage, Alaska, detail 1 felony and 13
misdemeanor violations of the Clean Water Act during a three year
period ending in 1993.

The violations were discovered during the course of a criminal
investigation into the pulp mill by the FBI and EPA, which included
two searches of the facility.  The felony charge stems from a 1990
offense in which company intentionally dumped the contents of a
huge clarifying tank containing sludge and wastewater into Ward
Cove in direct violation of an EPA permit.

     The clarifying tank, a pollution prevention device, was
deliberately bypassed when the mill was shut down for repairs in
April 1990.  The misdemeanor violations concern numerous negligent
discharges of magnesium oxide contaminated wastewater into Ward
Cove from a sewer line.  

     To settle the criminal case, KPC agreed to a fine of $3
million.  Of that amount, $1.75 million may be suspended if the
company completes an ambitious program to prevent pollution at the
mill.  Under the terms of the plea agreement, KPC will establish
and maintain an effective environmental compliance program, appoint
a responsible corporate officer for environmental matters, and
submit quarterly reports to the court.

     The terms of the plea agreement are subject to approval by the
Court.  The plea agreement also anticipates the settlement in the
near future of a companion case for alleged civil violations that
have been subject to suit since 1992.

     The case was prosecuted jointly by the U.S. Attorney's Office
for Alaska and the Department of Justice Environmental Crimes
Section.  The criminal case was investigated by EPA's Criminal
Investigations Division and the FBI.

     Schiffer and Loeffler commended EPA and FBI for their
outstanding work in investigating KPC's criminal misconduct.  They
also recognized the contribution made to the investigation by
citizens concerned with the environmental violations caused by KPC. 
     KPC is a Washington Corporation, a wholly owned subsidiary of
Louisiana-Pacific Corporation, operates as a manufacturer of pulp,
timber and other logging products.  The mill uses chemicals to
manufacture dissolving-grade wood pulp, which is the raw material
used in making rayon, cellophane and paper.  KPC's mill uses
millions of gallons of water a day that must be treated in
accordance with EPA issued permits.