IN JULY, 1985, BAYOU MARCUS LIVESTOCK AND AGRICULTURAL COMPANY PURCHASED TWO TRACTS OF PROPERTY, COMPRISING APPROXIMATELY 872 ACRES, ADJACENT TO PERDIDO BAY IN PENSACOLA, FLORIDA. THE PROPERTY CONTAINED EXTENSIVE FORESTED WETLANDS AND OTHER WATERS OF THE UNITED STATES. SOMETIME AFTER PROPERTY ACQUISITION, BAYOU MARCUS BEGAN TO PREPARE THE PROPERTY FOR USE IN A SILVICULTURE OPERATION. ROADS WERE CONSTRUCTED TO PROVIDE ACCESS FOR TRUCKS TO LOG THE PROPERTY. THIS CONSTRUCTION WAS ACCOMPLISHED BY EXCAVATING DITCHES AND USING THE SIDECAST AS FILL MATERIAL FOR THE ROADS. THE TIMBER WAS THEN REMOVED AND THE LAND WAS CLEARED TO FACILITATE CONVERSION OF THE PROPERTY TO A PINE PLANTATION.