Forest City Dam Issue

Forest City Dam - Issue Resolved!

To jump to the Summary of the Forest City Dam Issue, CLIC here

FOR IMMEDIATE RELEASE

A Decade of Determination: Forest City Dam

Secured for Future Generations

After more than nine years of uncertainty, advocacy, and unwavering community resolve, the Chiputneticook Lakes International Conservancy (CLIC) is overjoyed to announce a landmark victory for the Forest City Dam and the entire St. Croix River System.

On January 22, 2026, the Federal Energy Regulatory Commission (FERC) granted Woodland Pulp's application to surrender its license to operate the Forest City Dam—but not to decommission it. FERC's recent decision is premised upon the transfer of legal title and operational control of the dam to the St. Croix International Waterway Commission (SCIWC). To download the FERC decision, CLIC here

The threat we faced is over. The dam will stand. Our lakes are safe.

For nearly a decade, residents on both sides of the border lived with the fear that the Forest City Dam would be removed—that East Grand Lake, North Lake, and the connecting Throughfare would be drawn down, fundamentally altering the landscape, ecology, and way of life we hold dear. Today, we can finally breathe a collective sigh of relief.

Under the new arrangement, the Forest City Dam will be managed exclusively for the protection and enhancement of fish and wildlife, the preservation of recreational opportunities, environmental quality, and flood control. Never again will power generation downstream dictate the fate of these waters. The dam's purpose is now aligned with the values of our community and the health of our ecosystem.

Woodland Pulp deserves recognition for its commitment to continue daily operations of the dam under the direction of the St. Croix International Waterway Commission and to assume financial responsibility for all necessary repairs going forward. This is corporate stewardship at its best.

CLIC is proud to have strongly endorsed the SCIWC as the new steward of the Forest City Dam. The Waterway Commission—an international non-profit created by Maine and New Brunswick—has a proven track record of consulting widely with government entities, Tribal stakeholders, conservation organizations like CLIC, and the many other users of the St. Croix Waterway. We are confident that the future of the Forest City Dam will be in capable, caring hands.

We all share in this victory. CLIC extends its deepest gratitude to our members, to those who served on our Board of Directors over these challenging years, and especially to the members of our Save the Dam Committee, whose tireless efforts never wavered. We also thank the countless members of the public—from Maine and New Brunswick alike—who answered our call for support, time and time again. Your voices made a difference!

When we began this fight, we were staring down the removal of the Forest City Dam and the devastating drawdown of our beloved lakes. Today, we stand on solid ground, looking toward a future that is not just secure—it's bright.

The lakes that define our region, that bring us together, that sustain our wildlife and our communities—they will endure. And so will we.

With gratitude and renewed hope,

Board of Directors,

Chiputneticook Lakes International Conservancy

CLIC would like to acknowledge the exhaustive work and dedication of it's current Past President and Chair of the Save the Dam Committee, David Townsend. As most of you know, David has generously donated his time and expertise...tendered many written submissions to FERC and dedicated untold hours of research and strategizing to the Forest City Dam issue. Our Lakeside Communities, our membership, the CLIC Board, all lakeside residents ...human, plant and animal, owe David an immense debt of gratitude.

Please stay tuned for a "Dam Celebration!!"

Forest City Dam - Next Steps

Following FERC's decision to transfer ownership and operation of the Forest City Dam from Woodland Pulp to the St. Croix International Waterway Commission (SCIWC), we anticipate the following activity in the coming months.

FERC, SCIWC, and Woodland Pulp will require approximately two months to discuss and finalize the transfer details.
a Technical Oversight Committee (TOC) is expected to be established to provide ongoing guidance for dam operations.
the Chiputneticook Lakes International Conservancy (CLIC) will formally engage with the TOC to advocate for appropriate parameters regarding water level management at the Forest City Dam.

CLIC remains committed to keeping members informed throughout this process and will provide updates as developments unfold. Further, CLIC has requested that we be included in go-forward discussions with both the St. Croix International Waterway Commission and Woodland Pulp regarding water levels or any other issue related to the Forest City Dam.

Summary of the Forest City Dam Issue

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.

FERC Environmental Assessment 2025

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) and convey title to, and control over, the Dam to the SCIWC.

To Summarize:

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

Executive Summary: 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.

Developments January 2026

Written by David Townsend, Chair, Save the Dam Committee

January 23, 2026 following the FERC decision

The Chiputneticook Lakes International Conservancy (CLIC) is elated to announce that, on the 22nd of January of 2026, the Federal Energy Regulatory Commission (FERC) granted Woodland Pulps’ application to surrender the remaining years within its FERC license to operate the Forest City Dam.

This permission was conditional upon the detailed proposal set out by Woodland to transfer the legal title to, and operational control over, the Forest City Dam to the St. Croix International Waterway Commission (SCIWC). That proposal also contained an assurance that, going forward, the FC Dam would be managed by the Waterway Commission solely for the protection and enhancement of fish and wildlife, protection of recreational opportunities, preservation of environmental quality and flood control. Thus, the operational objectives applicable to the FC Dam will never again include the enhancement of electric power generation at the two power dams, and facilities, located downstream.

To its credit, Woodland Pulp has committed to continuing the daily operations of the FC Dam (as directed by the Waterway Commission) and Woodland will assume financial responsibility for all necessary repairs going forward. Within its own submission to FERC, CLIC strongly endorsed the SCIWC as the new manager and oversight body for the FC Dam. The Waterway Commission is an international non-profit entity created by Maine and New Brunswick to oversee, protect and enhance many of the important resources of the St. Croix River System. The Waterway Commission has a history of consulting widely with government entities, Tribal stakeholders, non-profit organizations (such as CLIC) and with the various users of the St. Croix Waterway. The future of the Forest City Dam is in good hands.

CLIC would like to thank its Members, those who held positions on its Board of Directors over the past 10 years, and the members of its Save the Dam Committee for the support and tireless efforts made for a decade to press for a positive solution to the fate of the Forest City Dam. And, at times, CLIC called upon members of the public, from each side of the border, to provide their support, and they responded impressively. Everyone will recall that, initially, we were facing removal of the two US gates and the drawdown of East Grand Lake, North Lake and the connecting Throughfare. At present, I am pleased to report that the future looks very bright.