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First Test of Maine's Dam Abandonment Law Stalls Over Who Pays

American Iron and Metal now has until June 17 to file its report as Bucksport-area towns and companies dispute who should cover the aging dams' upkeep.

By Maine Business Wire Staff

Portland, Maine, seen from the water
File photo: Portland, Maine, seen from the water. Photo: Seasider53 / CC BY 4.0 via Wikimedia Commons

The transfer of three aging dams near Bucksport to local owners will not happen before summer, the Bangor Daily News reported.

The state granted Montreal-based American Iron and Metal, whose subsidiary bought the former Verso Paper mill's holdings, a 180-day extension on a consultation report required for the handoff. The new deadline is June 17. The company filed in 2024 to abandon the dams on Silver Lake in Bucksport and on Alamoosook Lake and Toddy Pond in Orland, which were constructed in the early 1900s for papermaking.

In November 2025, voters in Blue Hill, Orland, Surry and Penobscot created two quasi-municipal watershed districts to assume ownership of the Alamoosook and Toddy dams. Bucksport postponed its own vote on the Silver Lake dam. The town argues that Bucksport Generation, which owns the old mill's power plant, and the utility Maine Water have profited from the dams and should help pay for deferred maintenance. Both have said they would not release their rights to the water without compensation, according to the town's attorney.

Toddy district trustee Marc Restuccia said the delay gives the new districts some "breathing room," though they want ownership in 2026 so repairs such as clearing embankments and erosion control can start.

The process is the first test of Maine's dam abandonment law.

This story was first reported by Bangor Daily News.

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