Abitibi Consolidated, owner of the now-idled paper mill in Lufkin, Texas, will be writing a check to the county soon, since no apparent progress has been made on restarting the aging paper mill.

Angelina County commissioners on Tuesday voted to declare Abitibi Consolidated's 1999 tax abatement for the Lufkin paper mill in default as of Sept. 2.

The original tax abatement was granted by the county to Donahue Industries, the mill's former owner, on March 3, 1999, according to Angelina County Judge Joe Berry. Abitibi Consolidated Inc. "inherited" the abatement, he said.

Berry read commissioners the letter he was sending Abitibi on the decision.

"Angelina County fully supports the area's economic development efforts and has fully supported the ... incentive agreement for the Lufkin mill," Berry read. "However, due to the extended idling of the mill ... Abitibi has 120 days from the date of this letter to cure such default. ... We sincerely hope to be able to work with Abitibi Consolidated in curing this incident of default and if so will thereafter continue our history of support for your facility as a major asset to our community."

If the mill re-opens, Berry said, the court would consider a new abatement agreement; meanwhile, the Canadian company will need to pay about $300,000 in abated taxes for 2004-2005 in addition to interest and penalties, Berry said.

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