Real provisions of the preliminary injunction granted by Court regarding Veracel's activities - 10.07.08

Judge Otaviano de Souza Sobrinho, Court of the State of Bahia, partially accepted a request for preliminary injunction proposed by the State Public Attorney's Office of Eunápolis through Public Civil Action 2497100-2 2009, against the Bahia State Government, Bahia State Environmental Agency (IMA), Bahia State Council for Environmental Protection (Cepram) and company Veracel Celulose. In view of the above, it becomes necessary to clarify the real provisions imposed by his decision. The main points are:

1. The determination is that the Bahia State Government, CEPRAM and IMA refrain from issuing new permits for Veracel to plant eucalyptus in the city of Eunápolis, including lands owned by third parties. It also determines the suppression of exceeding planted areas, according to a report published by IMA in 2008.
   
   In this respect, Veracel has disputed the figures and the calculation concept presented in the report by IMA, once its own plantations and those of fostered third parties are below the 20% occupancy limit in the municipality, therefore complying with the environmental conditioning .
2. Determination for Veracel to paralyze new activities involving deforestation and planting of eucalyptus seedlings until the legally licensed areas are in regular condition.
   
   It becomes necessary to state that Veracel does not deforest and does not plant eucalyptus in areas where there was native forest as recorded in the ortho-photo maps of 1994/95 .
3. The decision is restricted to the municipality of Eunápolis.
4. Restrictions to credit lines or condemnation for Veracel to pay compensation for environmental damage are not part of this decision, as have been reported in sites of social movements.

On the other hand:

1. Up to now, Veracel has not been summoned by the Court. The company has had no access to the contents of the civil action. Objectively stated, Veracel is only aware of the Public Attorney Office's statements to the media and the recent communication in the Court Journal of the preliminary injunction issuance by Judge Otaviano de Souza Sobrinho.
2. It should be stressed that the decision is not a sentence, much less a conviction, therefore, it is subject to review by appeal.

Finally, Veracel reaffirms the principles and assumptions adopted for its own performance, such as:

• all plantations are covered by environmental licenses and comply with the conditions as set forth in the enterprise's licensing;
• ongoing availability to dialogue;
• strengthening of its role as an agent for building a sustainable development model from the production chain of eucalyptus fiber pulp and its participation in multiple local groups.

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