 In order to pay off the costs associated with the $900 million purchase of the company, Pacific Lumber increased the pace of cutting on the more than of timber it owned which included clusters of old-growth California redwoods.This more aggressive logging incurred the opposition of environmental groups, which staged protests aimed at stopping Pacific Lumber's logging efforts.In 1999, Pacific Lumber's parent, Maxxam Inc., signed the Headwaters agreement, in which Pacific Lumber sold to the federal government and the State of California for $480 million, and the firm agreed to stricter environmental restrictions on logging on its remaining land.