How a Norwegian felon managed to get a white-glove welcome from the State of Maine

Other news: DMR tells Gouldsboro to stand down; SWH residents start recycling

SOMESVILLE, April 23, 2022 - The rejection of the salmon farm in Frenchman Bay by the state has folks cheering, but others are asking how the application got as far as it did.

Maine has erected a huge “welcome” sign in flashing neon for aquaculture industries from around the world to come here. But is it equipped to vet them all properly and fully? Are the regulatory resources designed for the volume of activity 30 years ago still suitable for today’s demand?

The state Department of Marine Resources recently pitched the legislature to enact a “special fee” of $250,000 to handle applications like that of American Aquafarms. It was an admission that such complicated applications were over-taxing its staff. But it was also accompanied with an asterick - to give the commissioner overriding powers. The proposal was rejected.

But the problem remains, as well as the politics, the egos and the power plays.

How does Maine recruit aquaculture businesses and regulate them at the same time?

Maine & Co., a taxpayer-supported chamber of commerce-like non-profit which is the state’s unofficial marketing agency, is Maine’s bright neon beacon for attracting outside investment. It’s the centerpiece of Maine’s efforts to lure industrial-scale aquaculture companies. Read its service agreement with the state.

“So what we do is we introduce people to resources that they'll be needing. When someone comes here, they're going to need a law firm. They're going to need an accounting firm. They're going to need a bank,” said Maine & Co. President Peter Del Greco in an interview.

Maine & Co. also introduces them to government officials and insiders.

In March 2020, American Aquafarms struck up a relationship with Maine & Co.

Norwegian Mikael Roenes, founder of AA and a convicted felon who spent more than two years in prison in Norway, made his first contact with the state on April 6, 2020, weeks after he began to be coached by Maine & Co.

In a letter to the administrator of the the Pine Tree Development Zone Program, which reduces, or virtually eliminates, state taxes for up to 10 years for businesses that create jobs, Roenes stated he would create 60 jobs paying an average $55,000.

Mikael Roenes

When they connected, Del Greco had little information about Roenes, except from a few Google and Linked-in searches. That’s not what Maine pays Maine & Co. to do. Del Greco’s job is to build that waterfall of incoming inquiries, and he does his job well.

So whose job is it that Maine is assured these companies are the sort which will be good corporate citizens?

When a national company comes “with their Boston-based lawyers and bankers, it doesn’t always end well,” Del Greco said. “So, we'll set it up … here are four or five different (local) groups that do a good job, and feel free to work with them.”

By the fall of 2020, American Aquafarms had engaged the largest law firm in Maine, Bernstein Shur, one of the state’s top marine engineering firms, Ransom Consulting, and construction giant Cianbro - all paying members of Maine & Co. and members of its board, a potpourri of the state’s blue chip firms. https://maineco.org/about-us/executive-board-members-of-the-corporation/ 

Del Greco said his principal source of revenue is from members who pay to play. They are not just donating to a non-profit.

Maine & Co. stated on its website that it “coordinates in-state site visits with local public and private sector representatives for the purpose of evaluating business location opportunities and addressing technical questions about doing business in Maine.”

Through its well-connected law firm, AA was able to gain access inside the state agencies which regulate aquaculture, access it would have had difficulty getting on its own. Emails obtained through the Freedom of Access Act shows this dynamic. 

The first is a Bernstein Shur request to the state director of aquaculture in which the lawyer sought help for site location of the salmon farms from the very regulator who would issue the permit.

From: Mary E. Costigan

Sent: Tuesday, June 16, 2020 4:49 PM

To: Nelson, Marcy

Subject: Norwegian Salmon Farmers Interested in Maine

Hi Marcy:

I have clients from Norway interested in bringing closed-pen finfish aquaculture to Maine. They have looked at a few potential lease locations and would like to meet with you (virtually) to discuss their technology and to see if you have any insight into the potential sites they are looking at. I have my own insight into a few locations, but it’s a little dated (although I do see that the Swansons are still in Blue Hill Bay). They also plan to open a processing facility and hatchery should they obtain a lease, so they are looking to make a significant investment in Maine.

Mary

Nelson forwarded the email to the deputy commissioner of the DMR, Meredith Mendelson, who then wrote to the deputy commissioner of economic development.

From: Mendelson, Meredith

Sent: Wednesday, June 17, 2020 8:59 AM

To: Garland, Denise

Subject: FW: Norwegian Salmon Farmers Interested in Maine

Hi Denise, Just touching base to see if you’ve heard any rumors of a Norwegian company interested in coming to Maine for marine-based aquaculture?

From: Garland, Denise

Sent: Wednesday, June 17, 2020 9:43 AM

Garland answered:

To: Mendelson, Meredith

Subject: RE: Norwegian Salmon Farmers Interested in Maine

Hi Meredith,

Yes, we are aware of a Norwegian Company who is looking to do “closed pen” ocean aquaculture. I believe they are looking to harvest Salmon and maybe Cod. DECD hasn’t been involved but they are working with Maine & Company. The Norwegian Company is planning to make a multi-million dollar investment. They have taken steps to hire Consultants and folks on the ground in Maine. From what I hear, they do not have a site designated and are just exploring.

I’d love to hear if you find out more.

Thanks Denise

Seven minutes later.

From: Mendelson, Meredith

Sent: Wednesday, June 17, 2020 9:50 AM To: Garland, Denise

Subject: RE: Norwegian Salmon Farmers Interested in Maine

Good to know they are working with others as well. Thanks, Denise. Will definitely keep you in the loop as we learn more. Would you like me to suggest they reach out to you (or someone else at DECD) as well?

Finally.

From: Garland, Denise

Sent: Wednesday, June 17, 2020 9:53 AM

To: Mendelson, Meredith

Subject: RE: Norwegian Salmon Farmers Interested in Maine

Thanks Meredith. Yes, probably will be me. Thanks

Denise

Garland’s boss, Maine Economic Development Commissioner Heather Johnson is also a board member of Maine & Co.

So connecting all the dots:

Maine & Co. begins to assist American Aquafarms in March 2020 and introduces AA to its members, including a law firm, an engineering firm and a construction company. The law firm then seeks help from the Maine regulator which issues licenses and permits for aquaculture - the email to Marcy Nelson, director of aquaculture for her help to site the salmon farms. The regulator then seeks help from the state agency which recruits companies and sits of the board of Maine & Co.

Ten days after her first email the Bernstein Shur lawyer writes another email to Peter Del Greco in which the question of actual aquaculture policy being considered by the state is raised. Del Greco tried to help.

From: Mary Costigan

Date: Friday, June 26, 2020 at 12:02 PM

To: Peter DelGreco, Ashley Pringle, apringle@maineco.org

Subject: Economic Recovery Committee

Hi all:

You may already know this, but the Governor’s Economic Recovery Committee has a proposal that would create a virtual format for the aquaculture lease process. I understand it is being forwarded to the Governor. I don’t know any more specifics, but will let you know if I hear any more. This would likely address the current standstill in the review process.

Mary

From: Peter DelGreco

Sent: Friday, June 26, 2020 12:12 PM

To: McLaughlin, Phoenix, tax incentive manager, Maine economic development

Subject: Fwd: Economic Recovery Committee

Quick question: see below. Do you know anything about this proposal?

Thanks! Peter

McLaughlin, Phoenix to Peter DelGreco

RE: Economic Recovery Committee

Friday, June 26, 2020 12:15:29

The Manufacturing and Natural Resources subcommittee discussed that as one of their likely recommendations at the full committee this morning. I don’t have more details since I’m not staffing that group, but I expect it will be circulated soon if it is one of their final recommendations for this “quick-start” phase. I can let you know if it is indeed going forward.

Mary Costigan did not return several of the QSJ’s request for an interview.

The QSJ emailed DMR communications director Jeff Nichols numerous times for an opportunity to discuss these matters and did not get a reply.

Del Greco didn’t stop there. In an email to his board Oct. 13, 2020, obtained through FOAA, he arranged to introduce American Aquafarms to his board members at its meeting Oct. 20, 2022 when the governor was scheduled to attend.

“We expect a presentation and discussion from a new aquaculture company establishing a significant operation in Maine. We have worked with the company since March and they are planning an investment north of $100 million in Gouldsboro.

“The company will announce that they are using a revolutionary new closed pen system. As part of this announcement, there will be a discussion of their work with Maine partners like Maine Fair Trade Lobster, Ransom Consulting, and Cianbro, among others.

“If both Governor Mills and the new company are available to join us on 10/20, they will consume the majority of the time during the board meeting.”

But that presentation never happened, Del Greco said.

Around the same time, about six months after he started working with AA, Del Greco learned from an article sent to him that Mikael Roenes served more than two years in a Norwegian prison for fraud.

“Did that change your relationship at all?” Del Greco was asked.

“Yeah, it did. Because of what we learned, and when we learned it, we stopped working with them. Frankly, they were going to need a much bigger organization than what I was. We're a three-person organization.

“We really truly believe that what we're doing is good and important. And at the same time being a three-person nonprofit with you know, a fairly minimal budget.

“Sometimes projects get beyond our scope and capabilities.”

Maine & Co. was started under the Angus King administration to serve as the state’s marketing arm. In 2017-18, it received a two-year service contract for $250,000 from the LePage administration. That was reduced during the Mills administration to about $70,000, Del Greco said.

The QSJ emailed Gov. Janet Mills’s chief of staff, Jeremy Kennedy to ask if she knew that Mikael Roenes was a convicted felon. He did not reply.

How does Maine & Co. feel about being the point of the spear for the state with only a three-person staff?

Is there a vetting process?

“Not having access to sophisticated tools, we'll do our Google searches, we'll ask our networks. Do you know this person, stuff like that? A big part of what we do. I mean, in all honesty, is filter out projects because so many projects knock on our door and make fairly unrealistic claims and say, hey, you know, if the state can give me $50 million, I can create 120 jobs, right?

“I'm like, great and if the State gave me $50 million, I could create 120 jobs.”

FOOTNOTE: Last November, American Aquafarms named New Bedford, Mass.-based Blue Harvest Fisheries’ most recent CEO, Keith Decker, as its new top executive. Roenes said at the time it’s not unusual for founders to turn daily operations to a seasoned CEO.

Two groups, Protect Maine’s Fishing Heritage Foundation and Frenchman Bay United, issued a joint statement when Roenes announced he was stepping down,

“Regardless of who is CEO, the company can’t run from the fact that their proposal has no support because of its unproven technology, massive pollution, and threats to lobstering, tourism and small-scale aquaculture in and around Frenchman Bay.”

American Aquafarms founder: We never had plans to use GM salmon eggs

GOULDSBORO - American Aquafarms had no plans to use genetically modified salmon eggs, the company's founder told the seafood newsletter IntraFish on Friday.

Mikael Roenes, the founder of American Aquafarms and Norway-based Purecod, told IntraFish the plan was always to use non-genetically modified eggs from Canada-based GM salmon producer AquaBounty .

On Wednesday, Maine officials rejected AA’s applications for two 60-acre salmon farms in Frenchman Bay because it did not receive documentation for legal sources of eggs. Maine bans use of GM eggs which can mature into adult salmon at half the time.

Intrafish reported Roenes would not provide specifics when asked about the company's application missteps or if there are any plans to resubmit an application except to say, "American Aquafarms is currently working on how best to address the decision from Maine Departments of Marine Resources and will provide a more comprehensive answer as soon as possible."

Jeff Nichols of Maine's Department of Marine Resources told IntraFish American Aquafarms' inability to submit any documentation on the strain of eggs it planned to import from GM salmon producer AquaBounty's Rollo Bay Canada facility in Prince Edward Island,Canada, is squarely against Maine law.

"The commissioner would not allow use of a genetically modified strain of salmon if that were their intention," he said of American Aquafarms' application. "But again, we didn’t have the documentation from them to make any determination."

Earlier this month DMR Commissioner Patrick Keliher sent a letter to Elizabeth M. Ransom, a consultant on the project, that went into further detail about the lack of communication.

The department "clearly stated in writing on more than one occasion" that "evidence the proposed source can satisfy the genetic requirements" was not provided to the agency prior to rejecting the application, the letter said.

Nichols referred to the commissioner's letter to the company that stated "should American Aquafarms identify an approved and available source of organisms to be cultivated, it may submit a new lease application in the future."

Separately, the DMR sent a stern letter to the town of Gouldsboro Thursday warning against the town’s efforts to license aquaculture. AA announced plans to use a former cannery on 11 acres here to process its salmon last year.

“I am writing to notify the town of Gouldsboro and its Board of Selectmen that the Maine Department of Maine Resources (DMR) objects to the proposed ordinance regarding the regulation of aquaculture currently being considered by the town,” wrote deputy DMR commissioner Meredith Mendelson in a letter Thursday.

“The Commissioner of Marine Resources holds exclusive jurisdiction to lease lands in, on and under the coastal waters, including the public lands beneath those waters and portions of the intertidal zone, for scientific research or for aquaculture of marine organisms (12 M.R.S.A. §6072 (1)).”

Planning Board chairman Ray Jones said the town is not backing down and will continue to work on the draft of a proposed aquaculture ordinance to “protect the town’s interest.” He said he believes there are areas where the town may regulate aquafarming activity. He also said the select board will proceed with extending the town’s current six-month moratorium against aquaculture development when it meets Thursday.

The face-off came one day after the DMR announced it would no longer consider the applications of American Aquafarms after the company failed to prove it would use legal sources of salmon smolts.

The ruling on a technicality failed to address the central issue of whether Frenchman Bay is environmentally suitable for industrial salmon farming.

Henry Sharpe, president of the citizens group Frenchman Bay United, said, “I suspect that without the right title and interest that comes from a DMR lease, that the DEP may also withdraw its permit application. To me that would be an unfortunate outcome because while I'm happy that both permits may be denied, the truth is that it never got to the stage where the issues were decided on its technical merits. We made really substantive scientific arguments to the DEP. The wastewater discharge from this would exceed regulatory thresholds by huge margins in very short time.”

“We'll take the termination for what it is, but I like to see it put away for the real reasons rather than an artificial reason. That would allow them to come back and resubmit in a relatively short order.”

In her letter, Mendelson stated, “Municipalities have limited jurisdiction in the intertidal zone if they have an approved municipal shellfish ordinance (in accordance with 12 M.R.S.A. §6671), and may be authorized to issue municipal aquaculture permits (in accordance with 12 M.R.S.A. §6673), but this does not limit in any way the Commissioner’s authority to issue leases and licenses in the coastal waters of the State.

“As a courtesy, DMR wishes to inform the town of its position that many elements of this proposed ordinance, and specifically those which create an aquaculture licensing program for the purpose of regulating the activity of aquaculture in marine waters, are pre-empted by State law.

“As the state agency managing and regulating aquaculture, DMR acknowledges that there have been significant concerns about the scale of recent proposals in the area, and would be open to beginning a dialogue with the town regarding our existing application and evaluation process for marine aquaculture leases and licenses. We believe our existing process is robust and provides adequate opportunity for municipal engagement, as well as public participation, to ensure appropriate protection of existing uses.”

MRC fails to disclose Bangor’s charter prohibits city from loan guarantees

Tired of MRC’s ineptitude, Southwest Harbor residents form recycling club

SOUTHWEST HARBOR - On a brisk Saturday morning recently, a group of residents accomplished with a $40-a-day rental truck what the Municipal Resource Committee says only the $90 million Hampden plant can do: divert our cardboard from dumps and incinerators into new products at the mill at Old Town. 

“The cardboard that we collected on Saturday went straight into ND Paper's recycled paper machine,” said Jim Vallette, who organized the recycling day. “Our residents’ boxes are new paper today. And, the mill is paying our recycling club for the resources we delivered.”

The Southwest Harbor Recycling Club is a glimpse into the future, and a nightmare scenario for the MRC, which prohibits member municipalities under “joinder agreements” from disposing their own waste.

“Our towns have to pay the MRC to process these wastes, after they are mixed up with all kinds of trash, at $70 a ton or more, before delivering the cellulose to the mill,” said Vallette, who runs a materials research consultancy. “We have to get this self-dealing, wasteful, Bangor-dominant, organization out of the way.

“We must void our Joinder agreements, and work together across the island to maximize recycling and reduce costs. Until that happens, we will rely on grassroots organizing, showing by example how simple recycling really is, while saving our taxpayers' money."

Just as the MRC is seeking to restructure, the last thing it needs is for citizens groups to compete for its biggest asset - the recyclables from 115 member towns.

It has proffered the idea to run the Hampden plant itself, but needs $20 million to capitalize it. Since its has little collateral of value, it is asking member towns to guarantee that loan.

The MRC did succeed in getting the plant’s bondholders to agree to sell it for at least $1 million ($1.5 million with expenses) - a “stalking horse” strategy which would allow MRC to acquire it if no one bids above that amount.

But the problems with its plan are prodigious.

First off, its largest member, the City of Bangor, is prohibited by charter from guaranteeing such third-party loans, a material fact which was not disclosed when the MRC sent letters to members about its proposal.

The QSJ learned about it when Mount Desert Public Works Director Tony Smith mentioned it at the select board meeting Tuesday night during which he urged the town to guarantee its share - estimated at between $500,000 and $1 million. The select board winced and pointed out such an amount would require town meeting approval.

How many other municipalities have charters or ordinances which prohibit such guarantees? Did the MRC bother to find out? Did the MRC know in advance about Bangor? MRC director Michael Carroll declined to answer.

It’s difficult to discern its true motivation because the MRC conducts all its business in secret, in an extreme use of the state’s Freedom of Access Act allowing “executive sessions” for certain topics. (Every meeting of the Municipal Review Committee for the past six months haa been in executive session).

History shows the MRC likes complicated schemes, “boiling the ocean” if you will. For instance, under its plan, there could be as many as four classes of members - members who guaranteed the loan, members who did not guarantee the loan, members who guaranteed the loan and also invested as equity owners and members who only invested.

How would the MRC manage the inevitable conflicts? Who is subordinate to whom? And would this constitute a breach of the current member agreements?

It will be two years since the ignominious closing of the Hampden plant on Memorial Day, two years where all the trash has been burned at an incinerator in Orrington or taken to landfill, the lowest on the hierarchy of environmentally acceptable solutions.

The Hampden plant was a rubric’s cube of multiple interlocking relationships.

First, the MRC only owned the land and not the plant, which was owned by Coastal Resources of Maine. CRM itself was owned by three investors, with Fiberight Corp. as only a minority investor even though the plant was based on its technology.

CRM floated a $52 million bond to enable the construction of the plant but did not have enough capital to sustain the operation and shuttered in May 2020.

Another hiccup occurred when the holders of the bond chose Delta Thermo Energy last year to take over the business after DTE bid $52 million, according to sources. They passed over another bid in the high $40 million and one in the high $30s, sources said.

The Bangor Daily News and the QSJ wrote multiple stories questioning the veracity of claims made by DTE’s CEO. Within weeks DTE proved unable to complete the financing promised, leaving both the bond holders and MRC with egg on their faces. One year into the colossal mess, they were back at Square One.

After a winter of discontent with threats from utility companies to shut off power, the MRC emerged in the spring with its current plan to acquire the operation.

It would have to overcome a basic conflict in its role. The MRC was created as an advocate for its members to keep tabs on the operator, the incinerator in Orrington. A decade ago it began to talk about an alternative to the incinerator. Four years ago, it walked away, taking 115 towns with it, convinced that Fiberight’s technology for a state-of-the-art waste plant was the future.

The plant operated for less than a year.

The QSJ asked director Carroll what mechanism would the MRC use to deal with the inevitable conflict between the roles of an owner versus that of an advocate for non-owner members. He did not reply.

The QSJ asked director Carroll whether the MRC would impose the standards on itself - such as proof of financing - as it is requiring of other bidders. He did not reply.

Bangor Public Workers Director Aaron Houtari, an MRC board member, confirmed that the city charter disallowed third-party loan guarantees, but he stated, “However, if a qualified buyer is not identified during this sale process and the MRC ends up owning the facility, an investment in the Hampden facility is not prohibited by City of Bangor Charter. 

“The City of Bangor believes that this facility is the first, crucial, step in dealing with our waste in a more responsible manner, especially when compared to our current options – burning waste or landfilling it.”

Not if Jim Vallette gets his way.

Just two weeks after it formed, more than 100 persons have signed up to support the SWH Recycling Club, which will gather after the SWH election (May 3) to consider next steps, including hosting another event. The group is urging participants to collect cardboard and bottles for Clynk. It is considering adding paper next.

Every town on MDI has a less than optimal recycling coverage. Tremont co-mingles all recyclables, thus devaluing them. (Some residents of Tremont came to the SWH event.) Mount Desert and Bar Harbor separate cardboard ( but co-mingles everything else. 

If grass root efforts take off and take a share of MRC’s most prized recyclables, that might just doom its business model which is predicated on volume.

Portland and Waterville use a “pay as you go” model, charging by bags of trash. This model has been adopted by 7,000 municipalities. In Massachusetts, it’s said to have reduced trash by 30 percent. https://www.greenbiz.com/article/pay-you-throw-one-cities-most-effective-tools-reducing-waste

Where is Nokomis, Maine? This 15-year-old is showing the world

STORRS, CT - There is plenty of ceiling space at Gampel Pavilion here to hang a jersey with No. 32 on it. In fact there are only two now - Rebecca Lobo’s No. 50 and Ray Allen’s No. 34.

Here are the Top 10 reasons Cooper Flagg should attend UConn.

1. It’s the best public university in the Northeast.

2. It’s only 4.5 hours from Nokomis.

3. It’s a proven basketball power (four national championships).

4. It’s the only school to have won championships for both men and women in the same year.

5. It makes its own ice cream.

6. The winters are beautiful and not brutal like Central Maine.

7. It’s two hours from great beaches and great skiing (although the coaches probably won’t let you ski).

8. It’s only 90 minutes from Fenway Park.

9. It’s still in New England.

10. It has good looking alums.

Tribute: Warren R. Worcester

1925 - 2022

SOUTHWEST HARBOR- Warren R. Worcester, 96, died peacefully at his home on April 18, 2022. He was born May 16, 1925, in Columbia, the son of Helen Wass Worcester and Orman Charles Worcester.

Warren moved to Southwest Harbor at age 4. He graduated from Pemetic High School in 1943. That summer he joined the U.S. Army and served as a radio operator in the Pacific Theatre during World War II. After contracting malaria, he spent several months in hospitals in New Guinea and the Philippines. While there, he felt privileged to have seen General Douglas MacArthur.

Returning home in 1946, he worked for Lawler Paint and H.R. Hinckley Companies until he was hired by the U.S. Postal Service. He soon married his beautiful classmate, Dorothy Robinson. After losing an infant daughter, Warren and Dottie welcomed a son, Duane, into their family. They bought a home on Main Street and lived there for the remainder of their lives. Warren worked for the Postal Service in Southwest Harbor for 37 years, retiring in 1983 after eight years as Postmaster. They loved to travel and enjoyed trips throughout the U.S. and Europe. They celebrated nearly 70 years of marriage before she passed in February 2017. Recently, when Warren was asked to talk about the best day of his life, he quickly and emphatically responded," the day I married my wife!"

Always involved in his community, he joined the SWH/Tremont Masonic Lodge #77 and the American Legion, where he was Master of both. He served for 72 years at the Masonic Lodge and was the oldest living member. He was a Cub Scout Leader, President of the Congregational Church Men's Group, and a Trustee of the Southwest Harbor Public Library and Southwest Harbor School District. He served on the Accounts Receivable Committee at MDI Hospital. He also volunteered for the Southwest Harbor/Tremont Ambulance Service.

Warren is survived by his son, Duane; a sister, Edith Radcliffe; several nieces and nephews, including Shirley Dyer, Brian Worcester, Carol MacRae and Scott Worcester and their families, Steven and Michael Radcliffe and their families, Vanessa Allen, Larry Mitchell, Rick Ruth, Patti Ruth and their families; a cousin, Virginia McNear and her family as well as numerous extended family members. Warren was predeceased by his parents; his wife, Dorothy; an infant daughter; sister, Marion and her husband Larry Ruth; brother, Donald Worcester and his wife, Mary; and Dorothy's parents and sisters and several extended family members.

The family would like to extend sincere appreciation to those who provided compassionate, loving care to Warren in recent years: Meredith Brewer, Cahoon caregivers, Beacon Hospice staff, Dr. Tanya Hanke and P.T. John Craigo. You brought him great joy and comfort. And thanks to his neighbors, the Musson family, for the love, snow shoveling, and especially the pies!

A graveside service will be held 1:00 pm, May 16, 2022, Mount Height Cemetery, Southwest Harbor. For those who wish, gifts may be made in Warren's memory to Southwest Harbor/Tremont Ambulance Fund, P.O. Box 437, Southwest Harbor or Southwest Harbor Public Library, P.O. Box 157, Southwest Harbor, ME 04679.

Condolences may be expressed at www.jordanfernald.com