A10
LOCAL
Wallowa County Chieftain
Wednesday, September 22, 2021
Biomass processor prevails in fi re insurance dispute
By MATEUSZ
PERKOWSKI
Capital Press
WALLOWA — A federal
judge has ruled that an Ore-
gon woody biomass proces-
sor is entitled to insurance
compensation for business
income lost due to a fi re.
In 2019, a fi re caused
extensive damage to build-
ings and machinery owned
by Integrated Biomass
Resources, a company in
Wallowa that makes heat
logs, campfi re wood, poles
and electricity from forest
project byproducts.
The biomass company
fi led a lawsuit against the
Delaware-based AIX Insur-
ance Co. for refusing to pay
for income lost due to sus-
ZAC KNAPP
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campaign for the W his first two races — the
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team. Knap
per on Sept. 10, and,
Catherine Creek Scam allowa County Invitational
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on Sept
80 seconds ahead
16:20.2, more than of second place.
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Pro onsore d b y
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A BIG THANKS
E TOURNAMEN
C
A
R
T
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DOUG MCKINNIS &
20 RA
CLUBHOUSE CREW
JO HARDWARE
STEIN DISTILLERY
QUAIL RIDGE COURSE/
CLARKSTON
WALLOWA LAKE TRAMWAY
MAIN STREET MOTORS
ANTON’S HOME & SPIRITS
MOONLIGHT GRAPHICS
BUFFALO PEAKS GOLF CLUB
BANK OF EASTERN OREGON
SPORTS CORRAL
MATTERHORN VILLAGE
LAGRANDE COUNTRY
GOLF CLUB
Co-Chairs:
Terry & Cheri Lamb
Gary & Carol Marr
income from damaged “out
in the open” machinery.
U.S.
District
Judge
Michael Mosman has now
rejected the insurance com-
pany’s objections, ruling
that he agrees with the mag-
istrate judge’s “well-rea-
soned opinion” and adopts it
as his own.
Though Integrated Bio-
mass Resources has pre-
vailed in the dispute over
insurance coverage, the rul-
ing does not decide the
amount of damages owed to
the company.
Integrated
Biomass
Resources was started in
2009 with the goal of pro-
cessing small-diameter logs
after larger timber became
unavailable in the region
due to stricter environmen-
tal regulations.
The company largely
relies on woody biomass
from wildfi re mitigation and
forest health projects on fed-
eral lands in Northeast Ore-
gon. Last year, it was bought
for an undisclosed sum by
Heartwood Biomass LLC.
Chieftain staff
JOSEPH — The Hur-
ricane Creek Grange of
Joseph has been busy this
summer handing out dona-
tions to ben-
efi t
local
institutions
and
indi-
viduals,
according
to a press
Melville
release.
On July
20, the grange presented a
check for $1,000 to the Wal-
lowa County Museum in
Joseph. The donation will go
toward the purchase of three
televisions and three chairs,
the release stated. The TVs
are to be used to inform the
public about the Nez Perce
Hurricane Creek Grange/Contributed Photo
The Hurricane Creek Grange of Joseph donated $1,000 to the Wallowa County Museum this
summer to cover the cost of a variety of items. Presenting the check July 20, 2021, were, from
left, Grange President David McBride, Claudia Boswell, Jude Graham, Bernice Bernatot and
Darrell Witty.
Tribe, World War II and local
farms and ranches.
Also, the grange pre-
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Capital Press, File
A portion of the Integrated Biomass operation in Wallowa. It is now owned by Heartwood
Biomass LLC.
Grange donates to museum, young scholars
to the following for the success of the couple’s
PANKY HAUXWELL
BILL WILLIAMS
CHUCK HAINES J.D. HAGEN & GROUNDS CREW
COPPER CREEK MER.
MIKE & KATHY REYNOLDS
STUBBORN MULE
ROCHELLE DANIELSON
CHIEF JOSEPH DAYS
CINDY PARKS &
ECHO GOLF COURSE
BOB WILLIAMS
TONY CHRISMAN HURRICANE COFFEE CO.
RAHN’S SANITARY
MARVIN GIBBS
RICK PRINCE
JEFF BIRKSHIRE
COMMUNITY BANK
ALPINE MEADOWS
GOLF COURSE
ARROWHEAD CHOCOLATE
DAVE’S GOLF/CLARKSTON
pended business operations
in the fi re’s aftermath.
The complaint sought at
least $670,000 in damages
for the insurance company’s
alleged breach of contract.
AIX claimed the dam-
aged equipment was cov-
ered under a portion of the
insurance policy that did not
provide compensation for
lost business income, but a
federal magistrate judge dis-
agreed with that interpreta-
tion of the contract earlier
this year.
“The court fi nds no ambi-
guity in the terms of the
policy — business income
coverage is provided for
losses to those buildings,
which includes permanently
installed machinery and
equipment, and to personal
property located within 100
feet of the buildings,” said
U.S. Magistrate Judge Patri-
cia Sullivan.
The insurance company
objected to the magistrate
judge’s fi ndings and recom-
mendations, arguing it had
already paid for destroyed
property under the policy
but that its coverage didn’t
extend to lost business
Sale Ends 9/30/21
sented three local youths
with college scholarships of
$500 each. They went to:
• Aubrina Melville, who
graduated from Enterprise
High School. She is attend-
ing South Dakota State
University to study ani-
mal science and agriculture
business.
• Brianna Micka, who
g r a d u -
ated from
Joseph High
School. She
is going to
Eastern Ore-
gon Univer-
Micka
sity to study
agriculture
education and elementary
education.
• Casidee Harrod, who
graduated
from Enter-
prise High
School. She
is going to
the Oregon
Institute of
Harrod
Te c h n o l -
ogy to study
dental hygiene.