WEST VIRGINIA’S CHEAT CANYON BUYOUT FAILS

June 4, 2003

Despite a tremendous offer made by Governor Bob Wise, the state of West Virginia narrowly lost a bid to purchase the Cheat Canyon and create a new wildlife management area. American Whitewater was a key member of the Cheat Canyon Coalition, a key supporter of this effort. We will be meeting with representatives of Allegheny Wood Products, the new owner, to insure access for paddlers, hikers, and other users.

WEST VIRGINIA LOSES CHEAT CANYON BID

Much of the land along the Cheat Canyon and Big Sandy in Northern West Virginia has been owned by Allegheny Energy since the mid – 1920’s. It was purchased for a dam that was never built because of extensive caverns found in the walls of the gorge. Early this spring the company, which had narrowly averted bankruptcy brought on by participation in Enron-style energy trading schemes, decided to put the land out to public bid. The company been negotiating with the State of West Virginia for over a year, and had repeatedly said that they hoped to see the land in public hands. Negotiations were broken off suddenly, and the land was put out to public bid. AE explained that, because of its financial condition, it had to get top dollar for the property.

With strong support from West Virginia governor Bob Wise, a group of dedicated state workers developed an outstanding offer for the property. Working with the full support of West Virginia DNR Director Ed Hamrick, Steve Brown worked closely with Nick Dilks of the Conservation Fund and Susan Small-Plante, the governor’s Chief of Staff, to craft an offer of 9.4 million dollars for the land. Interestingly, all the money came from federal, private, or special funds. Not one penny of general revenues was used. Bids were submitted, and the wait began.

On May 29th Allegheny Energy announced that the winning bid, 9.75 million, had been received from Allegheny Wood Products. This was slightly higher that the 9.4 million dollar bid received from the West Virginia DNR. The state offered to raise its bid by $500,000, but was quickly rejected. The company said that it was only following its bidding rules, but even a casual reading of their offering revealed a variety of clauses that essentially allowed them to accept or reject any offer. Instead, this was a corporate decision by AE not to sell to the State despite previous expressions of support for this outcome.

Was it a backroom deal, or an expression of support for the new right idea that all public land is bad? We’ll never know, since both are permitted in private sales. What we do no is that a wonderful chance to protect a unique landscape for the public was lost by their actions, which showed a clear disregard for the wishes of the Governor and thousands of supporters both in West Virginia and beyond. Conservation organizations throughout the state are reevaluating their strategy in dealing with the company following this unfortunate action. Most believe that the progressive entity they used to deal with no longer exists.

Some of you will probably want to express your opinion of this action to Allegheny Wood Products. Although it serves no useful political purpose now, here is the address. Always be responsible and polite in your correspondence!

Mr. Jay Pifer, President
Allegheny Power
800 Cabin Hill Drive
Greensburg, PA 15601

By email you can contact communications director Allen Staggers: ASTAGGE@alleghenyenergy.com

American Whitewater, a founding member of the Cheat Canyon Coalition, will be meeting soon with Allegheny Wood Products to insure continued access to the Cheat Canyon and Big Sandy Rivers. We will keep you informed!