One of the region’s state representatives is raising a red flag over state funding being used to the purchase of thousands of acres of private forest land in McKean, Cameron, Potter, Elk, Clinton and Jefferson counties.

During an informational meeting of the House Agriculture and Rural Affairs Committee held Monday, state Rep. Martin Causer, R-Turtlepoint, facilitated discussion on the Pennsylvania Infrastructure Investment Authority approving loans totaling $50.8 million, at an interest rate of 1 percent, to Lyme Timber Company, a timber management firm based in New Hampshire.

The money would be used toward the purchase of more than 60,000 acres of private forest land in Cameron, Clinton, Elk, Jefferson, McKean and Potter counties. About 9,000 acres of the land would be put into a permanent working forest conservation easement. The plan also includes an acid mine drainage abatement project amounting to about $700,000, which falls under the water quality revolving loan funding from PENNVEST.

State Department of Conservation and Natural Resources Secretary Cindy Dunn told committee members the use of forest conservation easements was a top recommendation set out by the governor’s Green Ribbon Task Force on Forest Products, Conservation and Jobs.

“The parcelization and changing ownership of these forest tracks does raise a concern for us, especially in the Northern Tier of Pennsylvania,” she said. “It affects rural communities and jobs. It affects our mission as well. We take for granted that the Northern Tier will be forested forever, but I think without some delivered assistance, that would not be the case.”

A total of 70 percent of Pennsylvania’s forests are privately owned, she said. An easement conserves the land while also keeping it in private hands and on the local tax rolls, Dunn said.

“Lyme is looking to hire people who have worked in those lands previously, to retain and maintain good jobs and to really attract jobs into the area’s economy. So that’s a big plus,” she said.

State officials are calling the project a working forest conservation and public access easement.

“Any easements held by us will be open to hunting, open to outdoor recreation, hiking etc., which is another major economic driver in the Northern Tier,” Dunn said. “In fact, in all of Pennsylvania.”

The remaining acreage is under private ownership and access would be determined by Lyme Timber. And for Causer, he indicated that he is concerned that public money was used to help finance the purchase of those lands.

Also at the session, Brion Johnson, executive director of PENNVEST, outlined the mission of the agency, which includes clean water efforts.

He discussed the steps taken to review the proposal from Lyme Timber Co. and to obtain confirmation from the Environmental Protection Agency that it would be eligible for clean water funds.

In response to questions from Causer and other lawmakers, he agreed to provide the committee with information from PENNVEST legal counsel as to how the agency believes the transactions qualify for funding under state law.

Others came against the use of public funds at a very low interest rate to back the purchase of the forestlands by a private business.

Keith Klingler, president of the Pennsylvania Landowners Association, said he believes the PENNVEST funding is not being used appropriately and contends that subdivision is not happening on large forest tracts. He said his larger concern is with “government land sprawl.”

Meanwhile, Arthur Stewart and Tyler Martin, president and vice president of the Caledonia Land Co. in Warren County, also indicated large scale timberlands are not being subdivided at “an unprecedented rate.” They relied on census data to support their position.

Stewart lamented the use of a forest conservation easement in a region that already hosts vast amounts of state and federal land, saying it is another limitation to development opportunity. He also questioned the use of PENNVEST funds to benefit one private business owner over another.

Lawmakers posed a number of questions during the course of the meeting, many of which focused on the whether the PENNVEST loan to a private company to purchase private land was an appropriate use of public funds. Causer asked if additional proposals similar to the Lyme Timber proposal were in the works, and Johnson indicated there is one under review that involves land in Elk County.

Johnson declined to share the application until it is presented to the PENNVEST board.

“Members also expressed concern that PENNVEST was created to address, and should continue to prioritize, municipal water and sewer projects across the Commonwealth,” according to a release from Causer’s office. “Many communities are faced with deteriorating infrastructure as well as mandated upgrades, such as municipal separate storm sewer projects, and are in need of funding to support those efforts.”

Other concerns raised include the value of the timber on the land purchased by Lyme Timber Co., the number of jobs supported by the project, the potential for additional portions of land to be placed in forest conservation easement status, the value and future use of the easement, ownership of mineral rights on the property and more.