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<H1><FONT size=4>NAPA <BR>Winery expansion sows dissension <BR>Officials look
into possible violation of erosion control ordinance</FONT></H1>
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<P class=author><FONT size=1><!-- START WRITER CREDIT--><A
href="mailto:glenmartin@sfchronicle.com">Glen Martin, Chronicle Environment
Writer</A></FONT></P>
<P class=date><FONT size=1>Monday, June 19, 2006</FONT></P>
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<P>A Napa winery's dispute with state and county officials over the unsanctioned
construction of terraced vineyards near a creek is raising concerns about the
effectiveness of efforts to control agricultural expansion into forested
mountain areas.
<P>At the heart of the issue is Palmaz Vineyards' disposal over the past three
years of as much as 100,000 cubic yards of soil and rock dug from a huge
subterranean winery complex. The "excavation spoils" were used to create about
20 acres of vineyards on the upper reaches of Hagen Creek, a small stream east
of the Napa Valley.
<P>The work was done without a county erosion-control plan and accompanying
environmental report conducted according to guidelines of the California
Environmental Quality Act.
<P>Palmaz representatives say the brouhaha is a misunderstanding because the
rules are complex and unevenly applied. But some government officials and local
engineers say the project clearly violates the county's erosion control
ordinance, a seminal conservation rule passed in 1991 that places tight
strictures on hillside vineyard development.
<P>Unless Palmaz is kept to the letter of the law, they say, the ordinance --
which generally is obeyed by vineyard owners -- could unravel.
<P>"Nobody likes regulation, but I think most people around here now feel that
planting vineyards wherever you want may not be a great idea," said Phill Blake,
the Napa field office district conservationist for the Natural Resources
Conservation Service, a subsidiary agency of the U.S. Department of Agriculture.
Blake helped write the original erosion control regulation.
<P>The problem, said Blake, "is that you see people waiting patiently for
approval to plant a 1- or 2-acre vineyard. So it's understandable if they become
upset when they see someone thumbing their nose at the ordinance, not playing by
the rules."
<P>The conflict marks the second time Palmaz has run afoul of regulators. In
2001, it was cited by the California Department of Fish and Game for removing
oaks and altering a tributary of Hagen Creek without appropriate permits. Fish
and Game required the winery to remediate the damage.
<P>Cathy Roche, an attorney for Palmaz, said that the winery has been diligent
in attempts to conform to county and state regulations, but that the process has
been complicated. She said county officials approved the Palmaz plan to dispose
of the excavated soil "under standard erosion control methods" on winery
property rather than trucking it to a disposal site.
<P>Roche said a letter that Napa County Planning Department assistant director
Patrick Lynch sent to her in the spring of 2004 stated that the vineyard work
was consistent with the winery's use permit.
<P>"We complied with the use permits, so we determined we didn't need an
erosion-control plan and (environmental) review," she said.
<P>Amalia Palmaz, the owner of the winery, said that she acted with the best of
intentions and that even the winery's attorneys didn't always agree on
interpretations of government regulations.
<P>But California Department of Fish and Game officials believe violations of
state law may have occurred with the ambitious vineyard development.
<P>"We did meet with them recently, but that's after repeated efforts were made
to contact them, dating from January," said Lt. Don Richardson of Fish and Game.
"It has been a difficult process at best."
<P>Richardson said his agency is conducting an investigation of the winery, and
that information may be filed with the county district attorney for possible
charges.
<P>Hilary Gitelman, the Napa County planning director, said an erosion control
plan with accompanying environmental report is required for any property with a
slope greater than 5 percent.
<P>"It's definitely more than 5 percent up there (on the Palmaz property)," she
said, adding that the winery did not obtain a required grading permit for the
vineyard terracing.
<P>"We view this as an ongoing investigation of possible code violations,"
Gitelman said. "Right now, we're making sure they do what's necessary to get the
grading permit. (Then) we'll have to determine what level of (environmental)
review (for the erosion control plan) is required."
<P>Roche said the approval process for new vineyard development is confusing and
onerous to growers and vintners. The process also puts a great financial burden
on vineyard owners, she said.
<P>"An environmental review for a 50- or 60-acre vineyard can easily cost
$500,000," she said. "It has become a major issue for the industry."
<P>But such an expense is nothing new for the premium wine business, said Jim
Bushey, a vineyard engineer for PPI Engineering in Napa.
<P>"It's part of the cost of doing business, and if you get into this business,
you know that," he said.
<P>Besides, said Bushey, environmental reviews are a relatively minor expense in
the moneyed world of California wine -- especially for a winery like Palmaz,
which is lavish even by Napa Valley standards.
<P>A tour of the disputed Palmaz vineyard site revealed a landscape that is
significantly altered but shows no apparent signs of erosion. Flourishing
vineyards grow on the terraced excavation spoils. While no large trees remain
around Hagen Creek, the riparian zone has been vegetated with grasses, willows
and other plants. The soils seem firmly anchored.
<P>Danny Hagans, an erosion and sediment-control specialist who is a consultant
for Palmaz, said the project is soundly engineered.
<P>"This was abandoned agricultural land, not virgin forest," Hagans said. "The
vineyards are only on the foot slopes, not along the creek. The buffers and
setbacks for the creek are generous."
<P>Hagans pointed beyond the fence to a large landslide on forested land that
occurred over the winter.
<P>"That slide dumped more than a thousand cubic yards of material into the
creek, and it happened on wooded land," he said. "By contrast, there was no
significant erosion in this vineyard."
<P>But critics say the project strayed from government rules even if it is
superb in every detail. They claim the erosion control ordinance protects the
Napa Valley's watershed as a whole -- and if variances are allowed, they say,
the damage to the county's woodlands and waterways could be extreme.
<P>"While the ordinance had some growing pains, it is now working very well,"
Bushey said. "But if it's going to continue to work, it has to be applied evenly
to everyone. Unfortunately, enforcement has been the weakest link in the
regulation since it passed in 1991. That needs to be addressed."
<P><I>E-mail Glen Martin at <A
href="mailto:glenmartin@sfchronicle.com">glenmartin@sfchronicle.com</A>.</I>
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