The Nestle Project
In September 2003, the McCloud Community Service District entered into a contract with Nestlé, the world's largest food and beverage corporation. The deal entitles Nestlé to 1600 acre-feet of McCloud's spring water per year, and the use of unlimited ground water. If this contract is allowed to stand, under a variety of local, state and federal laws, and international trade agreements, it could effectively prevent local control or protection of McCloud's water for the next 100 years. The people of McCloud were excluded from any part of the negotiating process between the District and Nestlé. Unless the people who care about McCloud come together and act, we all stand to lose much more than water. This issue has already disturbed our sense of community, caused friction between friends and within families and brought into question the decisions made by of our locally elected officials.

What follows is our list of concerns regarding the Nestlé project. You can click on each issue for more info.

The Contract

  • McCloud will be stuck with a 100-year contract that makes no provision for inflation or change in water flow or value.
  • The contract gives Nestlé a superior claim to McCloud's water over the town's ratepayers.
  • The Nestlé contract gives the water to Nestlé, but leaves the legal responsibility for the springs, infrastructure and water table in the District's hands.
  • The contract gives Nestlé the right to drill unlimited boreholes.
  • Nestlé clearly took advantage of our rural and unprepared community.

The Bad Deal

  • The process for public input was inadequate and violated the trust between the District board and the community.
  • Nestlé isn't even paying close to its share when compared to community ratepayers.
  • The contract already violates the law.
  • Once an international corporation like Nestlé has negotiated a deal to extract water for sale, the water becomes a commodity on the international market and may not be protected by federal, state or local law.
  • It's Nestlé's word against common sense.

Jobs

  • Nestlé's offer of abundant jobs is misleading.
  • Most jobs that are created will not be living wage.
  • Depending on a single large employer leaves the economic health of the community at risk.

Environmental Impacts

  • The Nestlé project plant will reduce water flows to the McCloud River Falls, Squaw Creek, Soda Springs, Big Springs, Muir Springs and Mud Creek.
  • The lava tube hydrology of McCloud's aquifer makes Nestlé's plan to drill bore holes high risk for the people of McCloud.
  • The project puts our historic fisheries at risk.
  • The California Environmental Quality Act (CEQA) will not protect us.

Traffic

  • Traffic on Highway 89 will significantly increase, making it much more dangerous and difficult to drive.

Economic Impacts

  • Nestlé will negatively impact McCloud's tourism economy.
  • Nestlé's bottled water operation will have a huge footprint that will reshape our community for generations to come.
  • A one million square foot industrial building in the heart of town will cost the community more than it can afford.
  • What is an historic mill town without a mill?