In 1999, PALCO signed an agreement with the State and Federal governments committing the Company to conducting harvest under a Habitat Conservation Plan (HCP). Collectively, this document and a land exchange are called the Headwaters Agreement, because at the same time, the Headwaters Forest was sold to the State and Federal governments.
With the completion of the Headwaters Agreement, about 85% of the old-growth that was in the Company's position at that time was conserved in the Headwaters Reserve and the Marbled Murrelet Conservation Areas (MMCAs). Of the remaining 15%, much of it is off limits to harvest because of the provisions of the HCP.
Under the interim HCP measures, PALCO is conducting management with the most stringent restrictions in the state:
The result of these stringent restrictions is that, currently, half of the Company's forestland is off limits to harvest.






