Nestle Project in McCloud
The Nestlé Project
In September 2003, the McCloud Community Service District (MCSD) entered into a contract with Nestlé, the world's largest food and beverage corporation. The people of McCloud were excluded from any part of the negotiating process between the District and Nestlé. The deal entitled Nestlé to 1600 acre-feet of McCloud's spring water per year, and the use of unlimited ground water. If this contract was allowed to stand, under a variety of local, state and federal laws, and international trade agreements, it could have effectively prevented local control or protection of McCloud's water for the next 100 years. Read more about the original contract here.
In 2008, after 6 years of litigation and public pressure, Nestle canceled its original contract and down-scaled the size of its intended plant by 2/3. Nestle agreed to hold public meetings and conduct the scientific studies along Squaw Valley Creek which were necessary for meaningful environmental review.
In September of 2009, after claiming economic factors and a planned bottling facility in Sacramento, Nestle announced that it would no longer pursue a bottling plant in McCloud and would put their property up for sale.
The Nestlé Timeline
Below is the timeline of events starting from 2003 that details Nestle's presence in McCloud. For articles related to this timeline, click here.
October 2003- Nestle signs contract with McCloud Community Services District
March 25, 2004- Concerned McCloud Citizens file lawsuit against contract with the law offices of Don Mooney
November 2004- McCloud Water Commons with the support of Alliance for Democracy and Go Wild Consulting holds community information meeting in McCloud with special speakers including Caleen Sisk-Franco Spiritual Leader of the Winnemem Wintu tribe, Terry Swier President of Michigan Citizens for Water Conservation (MCWC) and Dr. Chris Grobbel MCWC Environmental Hydrologist Consultant
January 31, 2005- McCloud Watershed Council core founders umbrella their organization under the Mt. Shasta Bioregional Ecology Center
March 23, 2005- Siskiyou Superior Court judge Roger Kosel rules the entire contract null and void due to lack of CEQA process, specifically contract was missing an Environmental Impact Report
August 2005- McCloud Watershed Council obtained certified Articles of Incorporation and elected an independent Board of Directors
January 2006- Nestle serves intimidating subpoenas to citizens
June 2006- As part of California Environmental Quality Act (CEQA), Siskiyou County as lead regulatory agency, prepares Draft Environmental Impact Report for proposed water bottling plant. The McCloud Watershed Council hires experts in the fields of hydrology, air-quality, traffic, noise, historic preservation, and public trust, and CEQA to comment on their behalf. California Trout negotiates extended comment period.
August 2006- California Trout, McCloud Watershed Council and Siskiyou Water Network host 4 public meetings to inform about the Nestle DEIR--4,000 comments were sent to Siskiyou County Board of Supervisors
September 2006- California Trout and Trout Unlimited file extensive joint comments on Draft EIR (with legal assistance from Shute Mihaly and Weinberger)
November 2006- Nestle gives $2500 to ‘pro-Nestle’ McCloud Community Services District candidates
November 2006- California Trout and Trout Unlimited meet with Nestle to share DEIR comments and concerns
January 2, 2007- Third District Court of Appeals reinstates the contract between Nestle and McCloud Community Services District
January 15, 2007- Protect Our Water’s Coalition forms including Trout Unlimited, California Trout and McCloud Watershed Council
Nestle Project Timeline, continued
March 2007- Concerned McCloud Citizens appeals contract decision to the California Supreme Court
May 2007- The Supreme Court declines a review of the case
May 2007- California Trout installs two stream gauges on Squaw Valley Creek and initiates the Mount Shasta Springs and Groundwater study designed with UC Davis and AquaTerra
July 2, 2007- Nestle agrees to re-circulate DEIR with certain changes
November 2007- McCloud Watershed Council releases their economic report authored by ECONorthwest entitled: “Potential Economic Impacts of the Proposed Nestle Water Bottling Plant” and Donald Mooney’s legal opinion regarding the January 2007 Appellate court decision in regards to the project contract; www.protectourwaters.org launched
December 12, 2007- The McCloud Watershed Council testifies before the U.S. Congressional Committee on Oversight and Government Reform’s Subcommittee on Domestic Policy, hearing titled, "Assessing the Environmental Risks of the Water Bottling Industry’s Extraction of Groundwater."
January 16, 2008- Attorneys for California Trout, Trout Unlimited, and the McCloud Watershed Council deliver an 18-page letter to the McCloud Community Services District Board questioning the legality of the Board’s approval of a Water System Master Plan (WSMP). The letter cautioned that the WSMP was adopted in violation of the California Environmental Quality Act (CEQA), in part because it appears to be closely related to the Nestle Water Bottling Plant Project currently undergoing environmental review
Feb 11, 2008- Nestle agrees to do more science for a new DEIR, cap total water withdrawals, and not use groundwater for bottling
February 12, 2008- McCloud Watershed Council holds Community Forum featuring their economic impact report and the release of a McCloud Community Survey
March 19 2008 International Herald Tribune U.S. town splits after quenching Nestlé's thirst for water hits the press
April 16 2008 Business Week A Town Torn Apart by Nestle, How a deal for a bottled water plant set off neighbor against neighbor in struggling McCloud, Calif. hits the press
April 23, 2008- The Protect Our Waters Coalition issues a press release regarding the engagement of the national law and consulting firm of Manatt, Phelps & Phillips, LLP
May 12, 2008- Nestle publicly announces plans to scale back their proposed water bottling plant from 1 million square feet to approximately 350 thousand square feet and water take from 1600 acre feet/year to 600 acre feet/year
July 2008- Nestle communicates with Siskiyou County to ‘stop work’ on the EIR
July 28, 2008- California State Attorney General Jerry Brown sends letter to the Siskiyou County Planning Department warning of potential lawsuit if global warming impacts of Nestle project are not analyzed (Story covered by Associated Press)
July 28, 2008- Nestle selects North State Resources to carry out $600k Baseline Science and Data Collection on Squaw Valley Creek
August 5, 2008- Nestle announces their intention to cancel their contract with McCloud; McCloud Community Services District receives formal contract cancellation from Nestle on August 6th 2008
August 11th 2008- McCloud Community Services District announces the communication from Nestle canceling the contract and decides to not discuss anything as there was “nothing to discuss.” Nestle project manager Dave Palais stated the intent to give the District a new proposal soon.
August 2008- Protect Our Waters Coalition gathers signatures for a petition reading: “I believe that before the McCloud Community Services District approves any new contract with Nestle Waters North America that the District must prepare and certify a complete Environmental Impact Report for that project.”
August 2008- Nestle sent a letter to the McCloud Community Services District requesting a meeting with the Board to develop a process by which to negotiate a new contract.
September 2008- MCSD Board voted to table Nestle’s letter of request until their new Board members are seated later in the year.
September 2008- MCSD Board approves Nestle conducting a flow diversion experiment as part of their baseline science studies on Squaw Valley Creek
October 16, 2008- Watershed and habitat studies begin, flow reduction simulation pilot study conducted to work out the “bugs” for next year’s ‘real’ study.
October 2008- McCloud Local First Steering Committee and McCloud Chamber hosts Willits Mayor, Community Economic Development specialist and Chamber President (connection from BALLE conference)
October 22, 2008- Nestle holds its first community meeting in McCloud, facilitated by Kearns and West. The meeting comes off very poorly, but attracts a packed house of eager-to-speak community members.
November 2008- Nestle fires Kearns & West as their community meeting facilitator.
January 2009- MCSD meeting on the 12th and 26th postpone negotiating with Nestle.
February 2009- Nestle holds another ‘community meeting’ to explain their new project proposal.
June 2009- Nestle holds a public meeting to explain the watershed and habitat studies underway.
July 2009- Nestle announces the opening of a plant in Sacramento and states they will let McCloud know in 4-6 weeks if they will continue to pursue the McCloud project
September 2009- Nestle announces it will no longer pursue a bottling plant in McCloud and will sell property.
