Forest City Dam Issue

Full Summary of Forest City Dam Issue

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Chiputneticook Lakes Region

Overview

The Forest City Dam, located on East Grand Lake along the Maine-New Brunswick border, has been at the center of a multi-year controversy affecting both American and Canadian residents. Ownership of and even the dam’s very survival has been at issue since December 23rd of 2016 when Woodland Pulp applied to surrender its 30 year license to operate the dam. The company cited the high costs of maintaining and operating the dam under the terms of the new license as outweighing the benefits of the electricity it generates. This action raised concerns among local residents about the potential removal of the dam and the resulting impact on water levels and shoreline property.

Key Background Information

Dam Specifications:

Originally built in 1840 as a rock-and-crib-style dam to float timber to mills
The current structure was authorized in 1965.
Raises water levels by approximately 6 feet (2 meters) across East Grand Lake, North Lake, and "The Thoroughfare".
Spans the international border between Maine (US) and New Brunswick (Canada).

Affected Area:

East Grand Lake: 16,000-acre impoundment, one of Maine's most popular fishing destinations.
More than 2,000 camps and cottages around the lake system.
Cross-border community with both American and Canadian property owners.

The Core Issue

Ownership and Regulatory Challenges:

Currently owned and operated by Woodland Pulp LLC (based in Bailleyville, Maine).
Subject to Federal Energy Regulatory Commission (FERC) licensing requirements which are regarded as too costly by the current ownership.
Woodland Pulp has sought to surrender its license, citing high costs and other regulatory burdens; proposing to decommission the dam by permanently removing its two US gates.
FERC licenses require ongoing recreational and habitat-related obligations which add to the expense of long-term ownership.

International Complications:

The International Joint Commission (IJC), established by the Boundary Waters Treaty of 1909, oversees transboundary waters between the US and Canada. The International St. Croix River Watershed Board is one of its boards that monitors and regulates water levels and flows in the St. Croix River basin.
While Woodland Pulp proposed to remove only the two US gates, "Half a dam is not a dam" and removal would impact the entire binational lake system.
Canadian residents also have significant stakes in the future of this dam.

Potential Consequences of Dam Removal

Environmental Impact:

Water levels would drop 6-7 feet (1.8-2.1 meters) permanently.
Dramatic changes to lake ecosystem and fish habitat.
Impact on recreational fishing, boating, and water activities.
Loss of existing protection from property damage downstream by flooding.

Economic and Property Concerns:

Potential devaluation of 2,000+ lakefront properties.
Loss of recreational and tourism revenue.
Uncertainty about exposed lakebed ownership and use rights.

Proposed Solutions and Developments

Community Response:

Chiputneticook Lakes International Conservancy, under the direction and regulatory expertise of David Townsend, has taken a leadership role to “Save the Forest City Dam”.
Multiple public rallies with over 100 attendees supporting dam preservation.
Cross-border cooperation between US and Canadian residents.

Recent Developments (2023-2025)

St. Croix International Waterways Commission Ownership Proposal:

Woodland Pulp has submitted a revised proposal to FERC for the St. Croix International Waterways Commission (SCIWC) to assume legal title and operational control over the Forest City Dam.
This proposal has received numerous submissions of support from both US and Canadian stakeholders.
Currently under review by FERC as of June 2025.
If approved, SCIWC would own and manage the dam for environmental reasons, including fish and wildlife conservation and the protection of property without regard to hydro power generation objectives.

Community Response:

Broad support for the SCIWC solution from property owners and community groups.
Cross-border cooperation continues between US and Canadian residents.
Optimism about finding a sustainable long-term management solution.

Environmental Assessment:

FERC released a Notice of Availability of Environmental Assessment in June 2025, indicating active review of the proposal.

Current Status and Ongoing Concerns

Environmental Review Results

FERC staff completed an Environmental Assessment (EA) for Woodland Pulp LLC's application to surrender its license for the Forest City Project (P-2660). The key findings are:

What's Proposed: The current licensee proposes to surrender its license and leave the Forest City Dam in place and operational.

Main Conclusion: The proposed surrender would not constitute a major Federal action that would significantly affect the quality of the human environment.

What This Means

The environmental review undertaken by FERC Staff found no significant environmental concerns with transferring the dam from Woodland Pulp's control while keeping it operational.

This appears to clear the way for the ownership transfer to the St. Croix International Waterways Commission pending FERC's final approval at the Commissioners level.

The decision to permit the surrender of a FERC license can only be made by the Commissioners appointed by the US Congress. FERC Staff play an advisory role. Generally, the intensity of the review by the Commissioners is determined by the extent and nature of the opposition to the surrender proposal at issue.

If final approval is awarded by the Commissioners, the Dam would continue operating for its current purposes (likely water storage and flow control) under new ownership rather than being removed or significantly altered.

The Forest City Dam issue shows promising progress toward resolution as of 2025, with the St. Croix International Waterways Commission proposal offering a sustainable, internationally-supported solution that addresses regulatory requirements while preserving community and environmental interests across the US-Canada border.