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EarthWINS Daily #4.10
2/19/99

Date: Fri, 19 Feb 1999 18:41:48 -0800 (PST)
From: Alice McCombs <amccombs@igc.apc.org>

Contents

1. Really Mean and Really Stupid: Exxon Funds Attack on Punitive Damages
2. INDONESIA: Analysts Differ Over Offers by Freeport Indonesia: Paper
3. NATIONAL: Bureau of Land Management Releases Draft Mining Regulations
4. Community Nuggets - MINEWIRE February 12
5. Mining Conservation Directory now available on the Web - MINEWIRE January 29
6. CSIRO Report on Acid Mine Drainage -  MINEWIRE January 29
7. Green Scissors '99 Exposes $51 Billion in Wasteful Federal Spending that
Harms the Environment

Stop the Siege!
Help the citizens of Nashville, Wisconsin
Tax-deductible contributions may be made to
Town of Nashville Legal Defense Fund
c/o Chuck Sleeter / Joanne Tacopina
P.O. Box 106
Pickerel, WI 54465

FAX: 715-478-2527
http://www.nashvillewiundersiege.com/index.html
Help@nashvillewiundersiege.com

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1. Really Mean and Really Stupid: Exxon Funds Attack on Punitive Damages

Date: Fri, 19 Feb 1999 20:47:50 -0500
Sender: corp-focus@essential.org
From: Robert Weissman <rob@essential.org>

On March 23, 1989, the Exxon Valdez, one of Exxon's largest oil tankers,
under the command of a captain who had been drinking and who abandoned the
bridge, struck a reef and spilled eleven million gallons of crude oil into
the Prince William Sound in Alaska.

In September 1994, an Alaska jury found Exxon liable for
punitive damages for its conduct in causing the oil spill and
assessed $5 billion against the company. The lawsuit was brought
by commercial fishermen, Alaska natives and others directly
harmed by the spill.

In the nearly five years since its jury verdict, Exxon has not paid
a penny of the damages. Instead, it has chosen to use an appeals process
to delay and possibly defeat any payment.

To commemorate the Exxon Valdez oil spill, the world's largest oil
company has decided to ratchet up the corporate attack on punitive
damages.

It has just come to our attention that last year, Exxon funded
Harvard Law Professor W. Kip Viscusi to look into the issue of punitive
damages. Viscusi obliged, and wrote an article for the Georgetown Law
Journal advocating the abolition of punitive damages. ("The Social Costs
of Punitive Damages Against Corporations in Environmental and Safety
Torts," by W. Kip Viscusi, 87 Georgetown Law Journal 2(285), November
1998.)

In a footnote to the article, Viscusi discloses that the research for
the article was funded in part by "a grant from the Exxon Corporation."

But as a short conversation we had with Viscusi made clear, the
Harvard Professor doesn't want the world to know how much Exxon paid him.

To begin the conversation, we asked how much money he received from
Exxon, Viscusi's first reply: "I don't even know."

"I have several projects," Viscusi said. "This is one paper I did,
but I'm working on several other things."

Well, how much did you receive in total from Exxon?

"I don't remember that either," Viscusi replied.

When asked whether he received more than one check from Exxon, Viscusi
responds: "Yes, but it was for different projects that overlap the
time period."

When asked whether he can give a ballpark figure of how much money
he took from Exxon, Viscusi says "no," arguing that the information is not
public information.

Viscusi says the he received money from Exxon just in 1998.

Finally, when pressed again as to why he won't reveal the amount of
money he took from Exxon for the research on punitive damages, Viscusi
responds bluntly -- "It's none of your business."

We disagree. It makes a difference whether Viscusi took $10 or
$10,000 or $100,000 from Exxon. As readers we have a right to know.

But we also agree with Georgetown Professor David Luban who applauds
Viscusi for disclosing the fact of Exxon's funding in an age when other
academics do not. We also agree that "when one learns that an interested
party has funded work, there should be a higher threshold of critical
examination." And Viscusi's Exxon funded work doesn't withstand the higher
threshold of critical examination.

Luban, a professor of law and philosophy, wrote a rebuttal to
Viscusi's article in the same issue of the Georgetown Law Journal.

In "A Flawed Case Against Punitive Damages," 82 Georgetown Law
Journal 2(359) (November 1998), Luban dissects Viscusi's argument, finding
"thirteen critical errors that if I'm right, undermine Viscusi's argument
at every stage."

In a nutshell, Viscusi argues that punitive damages don't create
social benefits, and they do impose social costs on businesses, and thus
should be eliminated.

To show that punitive damages create no social benefits, Viscusi
argues that accident rates in environmental and other cases are not
statistically significantly different in the four states that don't have
punitive damages (Michigan, Nebraska, New Hampshire, and Washington) than
the 46 states that do.

Luban says that he disagrees that the lack of difference between the
four no-punitive-damages states and the other 46 shows that punitive
damages are ineffective.

"Even if a business is in one of those four states, they won't look
only to those states' tort regimes," Luban says. "They will look at any
state that they might be sued in. After all, there are relatively few
businesses that are strongly local in the sense that they operate locally,
all of their customers are local, and their safety procedures and
equipment are local."

And Luban argues that punitive damages are not there simply to deter
all forms of unsafe conduct. Punitive damages are meant to be awarded only
when the defendant's conduct has been egregious. Justice Richard Neely of
West Virginia has put forward a useful formulat in TXO v. Alliance
Resources, 1992: punitive damages exist to punish defendants whose conduct
is either "really mean" or "really stupid." And as a result, they are not
awarded very often.

Viscusi argues that punitive damage judgments are "out of control."
But Luban says that on average, about three percent of plaintiffs' jury
victories end with punitive damages being awarded against the defendants.

How can it be, we asked, that two scholars looking at the same data
come to such radically different conclusions.

"Observers of the punitive damages scene focus on different
aspects," Luban says. "Those of us who don't think punitive damages are
out of control tend to look at the low overall incidence of punitive
damages and the relatively low median of punitive damages -- about
$50,000. What critics look at is the relatively high mean -- the average
-- which is $735,000."

When you have a high mean and a low median, it shows that you have a
whole population of relatively low punitive damages with a few, very, very
high punitive awards that bring the average up, Luban says.

Punitive damages are a retributive sanction: they send a message to
corporate America that what you have done is wrong and intolerable in a
civil society.

Exxon's behavior in Prince William Sound was either really mean or
really stupid and is deserving of punishment. Instead of attacking
punitive damages, it should focus on cleaning up its act to ensure that
the nightmare of Valdez will not be repeated.

Russell Mokhiber is editor of the Washington,DC-based Corporate Crime
Reporter. Robert Weissman is editor of the Washington, DC-based
Multinational Monitor.

(c) Russell Mokhiber and Robert Weissman

Focus on the Corporation is a weekly column written by Russell Mokhiber
and Robert Weissman. Please feel free to forward the column to friends or
repost the column on other lists. If you would like to post the column on
a web site or publish it in print format, we ask that you first contact us
(russell@essential.org or rob@essential.org).

Focus on the Corporation is distributed to individuals on the listserve
corp-focus@essential.org. To subscribe to corp-focus, send an e-mail
message to listproc@essential.org with the following all in one line:

subscribe corp-focus <your name> (no period).

Focus on the Corporation columns are posted on the Multinational Monitor
web site <www.essential.org/monitor>.

Postings on corp-focus are limited to the columns. If you would like to
comment on the columns, send a message to russell@essential.org or
rob@essential.org.

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2. INDONESIA: Analysts Differ Over Offers by Freeport Indonesia: Paper

Topic 1583           Analysts differ over offers by Free
plovers                         reg.westpapua              1:39 AM  Feb 19, 1999
(at gn.apc.org)

Received from Joyo

ASIA PULSE/Antara
February  18, 1999

ANALYSTS DIFFER OVER OFFERS BY FREEPORT INDONESIA: PAPER

Analysts are split over the offer by mining company PT Freeport Indonesia
to increase payments of royalties to the government in return for the licence to
raise ore output from its copper and gold mine in Irian Jaya, The  Jakarta
Post reported.

The daily quoted the chairman of a government negotiation team, Rachman
Wirjosoedarmo, as describing Freeport's agreement to raise the royalties
two-three times higher as a "good move".

"It would be a very significant contribution to the state income in time
of crisis," Rachman said, adding the government could earn US$ 90 million
annually in royalty from Freeport.

Increasing shareholding by the government would be meaningless as the
government has no cash to buy additional shares in Freeport, he added.

In addition, income in royalty would be larger than dividend the
government was expected to earn from the increase in share ownership, he said.

Earlier, Econit Advisory Group said the government would not gain anything
from the offer to raise royalties even with the retroactive agreement, if the
ore output remained below 200,000 tons per day.

Econit cited Freeport's 1997 annual report as saying the company's output
was 128,600 tons per day, and added that it believed the output would remain
below 200,000 tons this year.

"The deal, therefore, is only high sounding but empty deal. It looks to
bring advantage to the government, but in fact it only gives promises," it was
quoted as saying.

Econit said the new royalty scheme should be applied to all levels of
output.

**************************************************
Paul Barber
TAPOL, the Indonesia Human Rights Campaign,
25 Plovers Way, Alton Hampshire GU34 2JJ
Tel/Fax: 1420 80153
Email: plovers@gn.apc.org
Internet: www.gn.apc.org/tapol
Defending victims of oppression in Indonesia,
East Timor, West Papua and Aceh, 1973-1998

25 Years...and still going strong!

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3. NATIONAL: Bureau of Land Management Releases Draft Mining Regulations.

MINEWIRE February 12; Comments due May 10; hearings during March and April
http://www.igc.org/mining/draftregs.html

On February 9th, the Bureau of Land Management (BLM) released its newest
draft of the 43 Code of Federal Regulations Part 3809 ('3809') surface
mining regulations. The 3809 regulations govern environmental management of
mining
operations on the majority of publicly-owned lands in the United States.
The current regulations, issued in 1981 under Ronald Reagan's Interior
Secretary James Watt, are woefully inadequate to deal with the
environmental ravages of the modern mining industry. Originally intended to
be revised after 2 years, instead it's taken 18.

Although we have not extensively reviewed the latest draft, it appears that
they are actually weaker than earlier draft rules. There are still gaping
holes in the areas of bonding, and environmental protection. Fortunately,
this is still a draft --- the final rule can't be published before
September 30th, 1999.

Before the final rule is published, BLM wants more comments. The commenting
deadline is May 10th. Before then, they will hold public hearings around
the country in the following cities:

        Fairbanks, AK--March 30, 1999
        Phoenix, AZ--March 30, 1999
        San Francisco, CA--April 20, 1999
        Ontario, CA--April 21, 1999
        Sacramento, CA --April 22, 1999
        Lakewood, CO--March 30, 1999
        Washington, D.C.--April 14, 1999
        Boise, ID--April 27, 1999
        Helena, MT--April 14, 1999
        Socorro, NM--March 31, 1999
        Reno, NV--March 23, 1999
        Elko, NV--March 24, 1999
        Eugene, OR--April 22, 1999
        Salt Lake City, UT--April 7, 1999
        Spokane, WA--April 20, 1999
        Casper, WY--March 31, 1999

In the coming weeks, Mineral Policy Center will be organizing teams of
grassroots activists to attend these hearings. At happenings such as these,
showing up counts. Volume (number, although sometimes shouting might be
worthwhile) of comments counts, too.

For more information on the environmental mining regulatory review: Check
past issues of MineWire: v1n6, 10/03/98;  v1n8, 10/23/98 Check our website:
http://www.mineralpolicy.org/reform/rightingregs.html. Check BLM's website:
http://www-a.blm.gov/nhp/Commercial/SolidMineral/3809/

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4. Community Nuggets - MINEWIRE February 12

http://www.igc.org/mining/world.html#nugget0212

Community Nuggets are snapshots of mining impacts at the grassroots level
in North America and around the world. Community Nuggets replace Nuggets, a
hard-copy publication that MPC has historically sent to community groups.
However, there is one important distinction between the two: for Community
Nuggets we actively encourage your contributions. We will publish in
MineWire information environmental groups or concerned citizens send to MPC
about mining-related activity at the community level.

To get an update published in MineWire, send it to MPC (email:
mpc@mineralpolicy.org; fax: 202-887-1875; snail mail: 1612 K St., NW, Suite
808, Washington, DC, 20006) at MineWire - Community Nuggets. While we
prefer submissions under 100 words, we will consider those up to 200 words.
Updates may be edited following submission.

ASIA - Russia Illegal mining activities occurring on the Kuril Islands.
Illegal mining activities are presently occurring on within the Kuril'skiy
Nature Preserve, located on the Kuril Islands, Russia. The islands are
valued for their rich biodiversity and unique natural areas. The
Kuril'skoye mining company, with investment from St. Petersburg, Sakhalin,
and unknown foreign sources, is illegally bulldozing its way through the
Severyanka valley, in the buffer zone of this protected nature reserve.
Although illegal under Russian Federal Law governing nature preserves, the
company did receive permits for exploratory work. Adding insult to injury,
they have begun mining and are drafting plans to build a cyanide vat-leach
processing mill on the shores of the Okhtosk Sea.

NORTH AMERICA - Arizona BLM/Phelps Dodge land swap ... bad for public? A
proposed land exchange between the Bureau of Land Management and Phelps
Dodge mining company in Arizona would give 17,000 acres of public land to
Phelps Dodge in exchange for only 4,000 acres. The company needs the land
to build two open pit copper mines near the Gila River, which is home to
several endangered species. Janine Blaeloch of the Western Land Exchange
Project and Brian Segee of the Southwest Center for Biological Diversity
said the project will generate $2 billion in revenues for Phelps Dodge by
giving away land valued at only $4 million.

NORTH AMERICA - Colorado Cripple Creek and Victor expansion amendment
approved with 3 conditions. At a hearing before the Colorado Mined Land
Reclamation Board (MLRB), a local citizen' group Citizens for Victor!
challenged a company-proposed amendment to roughly double the size of
Cripple Creek and Victor gold mine. The amendment was approved with three
conditions: 1) revise the waste rock pile management plan within 120 days;
2) increase groundwater monitoring from 2 to 4 years; 3) revise the
blasting monitoring plan for the Victor area within 60 days.

NORTH AMERICA - Colorado Governor backs mining tax cut. Gov. Bill Owens
told the Colorado Mining Association that he supports a bill that would
give $21 million in tax breaks to one gold mine, one molybdenum mine and a
dozen or so coal mines. Critics, including the legislature's top Democrat,
questioned whether it is appropriate to give a major tax break to such a
limited special interest. The legislation, House Bill 1249, is sponsored by
24 lawmakers.

NORTH AMERICA - Georgia DuPont aborts mining project? The DuPont Co. signed
an agreement with environmental groups on Friday promising to drop its
plans to open a titanium strip mine in a 38,000-acre tract next to the
famed Okefenokee Swamp. The company's pledge, however, is contingent upon a
payment of as much as $90 million to compensate DuPont and others who would
have benefited from the mine. DuPont official Jerry Donnelly said that if
the money is not raised the chemical giant "would have to explore all of
its options." Environmental groups, including the Sierra Club, the
Wilderness Society and the National Wildlife Federation, say they are
confident the funds will be raised over the next several years. A major
source may be the federal Land and Water Conservation Fund. The $90 million
estimate, though, could be substantially lower after an appraisal of the
property and the minerals that would have been mined. (from 6Feb99 Atlanta
Journal and Constitution)

NORTH AMERICA - Montana Residents seek special zoning district - likely to
wind up in court. Two years ago citizens formed a petition to make an area
along the Stillwater River corridor off limits to Stillwater Mining Co.'s
planned, 163 cre, tailings impoundment. Confusion over this issue is due to
the existence of two different, and conflicting zoning statutes.
Construction has already begun, and the company does not believe that the
county has authority over their state and federal permits. Currently, it
looks like the issue may have to be settled in court.

NORTH AMERICA - Utah BLM issues notice of final decision at Lisbon Valley.
In a September 1998 decision the Interior Board of Land Appeals (IBLA)
directed the BLM to reconsider the open pit backfilling reclamation option
before approving the Lisbon Valley copper project. BLM conducted the
analysis directed by IBLA and confirmed its original concerns from the
Final EIS and Record of Decision that mine waste material utilized as pit
backfill material could adversely impact groundwater quality and violate
water quality standards. Accordingly, BLM will not modify its ROD.

NORTH AMERICA - Washington Health department renews Dawn Mining Company's
license. The Washington State Department of Health approved Dawn Mining
Company's renewal license to import low-grade radioactive waste and toxic
chemicals from NY, NJ, and MO to its uranium millsite near Ford, WA. The
millsite lies adjacent to the Spokane Tribe's Reservation and the dumping
has been opposed by Spokane Tribe of Indians, the Spokane City Council,
Spokane County Commissioners, Springdale City Council, and Dawn Watch a
community watch group. The waste to be shipped is not only radioactive, but
contain toxics chemicals from industry processes. In addition, the cost of
transportation, to be footed by taxpayers could be in excess of $221
million.

NORTH AMERICA - West Virginia WV Enviro Agency Sued Over Mountaintop
Removal. The Ohio Valley Environmental Coalition and the West Virginia
Highlands Conservancy (WVHC) are suing the West Virginia Department of
Environmental Protection for its failure to uphold requirements of the
Surface Mining Control and Reclamation Act. The groups allege the agency
doesn't determine the effects of a proposed mountaintop removal mine on
nearby streams as required by the law. The WVHC is also challenging the
permit approval of the largest mountaintop mine in the state's history,
which will bury three miles of streams with debris. WV House Judiciary
Chairman Rick Stanton has invited the regional administrator of the federal
EPA to recommend how the WV Legislature can better regulate coal mining by
the mountaintop removal method.

NORTH AMERICA - Wisconsin Reservation and township battling mine suits. Two
northern Wisconsin communities are  resisting Rio Algom's proposed Crandon
mine. Nashville voters in 1997 ousted their pro-mine town board after it
made a Local Agreement with the mining company, and voted in a new town
board that rescinded the Agreement. The new board has gone to court to
prove that the Agreement had been reached illegally, in violation of
open-meeting laws, and the company is expected to sue the town in return.

In 1995 the US EPA granted the Mole Lake Chippewa "Treatment-As State"
(TAS) status under the Clean Water Act, which gives the tribe the authority
to set its own water quality standards and grant certain permits.
Presumably, the tribe
could prove another obstacle to Rio Algom. Wisconsin Attorney General James
E. Doyle issuing the EPA to rescind Mole Lake's TAS status.

Mining moratorium satisfied? WI environmental groups contend that three
example mines submitted by Nicolet Minerals Co. do not meet Wisconsin's
Mining Moratorium environmental test: they don't prove a metallic sulfide
mine has been safely operated and safely closed for 10 years each.
Moratorium supporters expected a single mine would be required to satisfy
the test. The groups say the law is being misinterpreted to allow one mine
to satisfy the operations requirement and another to satisfy the closure
requirement; they called on WI Dept. of Natural Resources (DNR) to begin
public rule making to interpret the law. DNR acknowledged it changed its
interpretation under the threat of lawsuit by Nicolet, and is now
supporting the interpretation of the law that allows two mines to satisfy
the law.

Environmental groups also point out that the three mines bear no
resemblance to the proposed Crandon mine in Wisconsin. The three example
mines are in dry or permafrost areas where the types of water pollution of
concern at Crandon are physically impossible. Also, each of the example
mines is smaller, ran for a shorter time, and mined different minerals in
different rock than the proposed Crandon mine.

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5. Mining Conservation Directory now available on the Web - MINEWIRE January 29

http://www.igc.org/mining/world.html#directory

Mineral Policy Center's Mining Conservation Directory is now web
accessible. The MCD is a compendium of 290 groups concerned with mining's
environmental impacts. Group entries contain group name, address, contact
name, phone, fax, hyperlinks to email and web site, a brief description of
the group's focus, and publication list. Point your browser to
http://www.mineralpolicy.org/MCD/cover.html.

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6. CSIRO Report on Acid Mine Drainage -  MINEWIRE January 29

http://www.igc.org/mining/world.html#csiro

Scientists of the Commonwealth Scientific Research Organization (CSIRO)
reaffirm the serious and dangerous situation of acid mine drainage in a
report, saying that AMD from sites around Australia is an ecological time
bomb. The report stresses the need to implement long-term management plans.
To obtain a copy, point your browser to
http://www.environment.gov.au/ssg/pubs_list.html.

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7. Green Scissors '99 Exposes $51 Billion in Wasteful Federal Spending that
Harms the Environment

Embargoed for Release
January 28, 1999 10:00 AM

http://www.foe.org/eco/scissors99/

Taxpayer and Environmental Groups Target 72 Pork Barrel Programs

Washington, D.C. - Congress can save taxpayers nearly $51 billion by
cutting federal programs that harm the environment and waste money,
according to a report released today by a coalition of environmental,
taxpayer and consumer groups. On the week be fore the Clinton
Administration releases its FY2000 budget proposal, Green Scissors '99 --
Cutting Wasteful and Environmentally  Harmful Spending, shows how $50.7
billion can be saved by cutting 72 federal programs that range from coal
industry subs idies  to money-losing timber sales.

The Green Scissors Campaign, led by Friends of the Earth, Taxpayers for
Common Sense, and theU.S. Public Interest Research Group, has helped
eliminate more than $24 billion in wasteful and environmentally harmful
spending programs since 1995. Green Scissors '99 targets 16 new programs,
including handouts to the oil industry and the big three automakers, and
subsidies to transfor m radioactive materials into consumer products.

"President Clinton and Congress should cut the subsidies that are polluting
our rivers, damaging our forests, and making people sick," said Gawain
Kripke, Director of Economic Campaigns at Friends of the Earth.

"Green Scissors '99 recommendations would slash nearly $51 billion in
federal spending that squanders our hard-earned tax dollars and hurts the
environment," said Cena Swisher, Green Scissors Coordinator, Taxpayers for
Common Sense.

Green Scissors '99 targets include:

Money-Losing Timber Sales - Requiring the Forest Service to stop
subsidizing timber industry clearcuts on our National Forests would save
$555 million and stop promoting the destruction of our Forest Heritage.

Coal and Oil Research and Development - Eliminating the coal, petroleum,
and diesel research programs which benefit large, profitable fossil fuel
and auto companies would save $1.6 billion and reduce subsidies that
encourage global  warming.

Wasteful Water Subsidies - Eliminating federal subsidies for water projects
would protect the quality of our drinking water and wildlife habitat and
protect taxpayers. For example, cutting the environmentally damaging
Animas-La Plata dam and irrigation project would save taxpayers $503
million, and reducing the budget for the Army Corps of Engineers'
ineffective and harmful flood control construction program would save $1.25
billion.

Wildlife Services Livestock Protection Program - Slashing funding for
ineffective attempts to control wolves, coyotes and other predators for
western ranchers would save taxpayers $50 million.

New recommendations this year include:

Diesel Engine Research for Cars and Light Trucks - Eliminating research
funding for diesel engines, which emit harmful levels of air pollution,
would save taxpayers $220 million.

Radioactive Recycling Subsidies - Canceling the Department of Energy's
noncompetitive contract to "recycle" radioactive metals and other atomic
weapons and nuclear power wastes into consumer products would save $251.6
million.

"These outrageous programs flatten our forests and our pocketbooks, drain
our rivers and the Treasury, contaminate the environment and the democratic
process," said U.S. PIRG Staff Attorney Lexi Shultz.

The Green Scissors campaign has cut $24 billion in wasteful,
environmentally harmful spending programs. For example, the coalition
successfully fought for an end to several California dams proposed by the
Yuba County Water Agency, saving $500 million in taxpayer money and six
miles of prime salmon and other wildlife habitat. Other defeated water
projects include the Passaic River Tunnel ($1.5 billion), the Red River
Chloride Control Project ($300 million), and the Spanish Fork-Nephi
Irrigation System ($201 million).

"Despite these important victories, polluter pork is thriving in
Washington," said PIRG's Shultz. "It is time for Congress and the
Administration to prove that they are serious about protecting the
environment and curbing global warming, by ending corporate welfare for
polluters."

The report is being released at 64 locations nationwide by local Green
Scissors coalitions that provide grassroots support for the recommendations
throughout the year. For a copy of the report, contact Erich Pica at
202-783-7400 x229.

Friends of the Earth, 1025 Vermont Avenue NW, 3rd floor, Washington, D.C. 20005
Tel: 202-783-7400   Fax: 202-783-0444   E-mail: foe@foe.org

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