HEMP DOWNER

DEA SEIZURE OF STERILE HEMP SEEDS ILLEGAL, LOCALS SAY

The seizure of 39,000 pounds of sterilized Canadian hemp seed at the
Detroit International Airport eight weeks ago has several severely
bummed-out Colorado companies jonesing for an explanation.

The sterilized seed, which was produced by Kenex, Inc. of Ontario,
Canada, was seized in Detroit on Aug. 9 by U.S. Customs agents acting
on orders from the U.S. Drug Enforcement Agency. According to the DEA,
the seed was found to contain minute amounts of THC, which is
classified as an illegal drug under the federal Controlled Substances
Act.

The DEA, beyond simply confiscating the 39,000 pounds of seed still
sitting in Detroit, promptly ordered Kenex to recall all of the hemp
products that it has shipped to some 17 different companies throughout
the United States. Moreover, the U.S. Justice Dept. has ordered these
17 companies to turn over all of their records pertaining to their
dealings with Kenex and some of the companies have been served with
summons to explain their "marihuana-related products."

Although no portion of the confiscated Kenex seed had been purchased
by any Colorado-based company, the seizure and its aftermath have
intimidated and angered local businesses that utilize hemp products.

"What the DEA did with the Canadian seed is completely illegal," said
Kathleen Chippi, co-owner of the Boulder Hemp Company. "We weren't
using any of the Kenex seed, so we haven't been subpoenaed or had
anything confiscated yet, but our concern is that the DEA is
accountable to no one."

Chippi, whose company markets hemp tortilla chips and a host of other
foods, noted that sterilized hemp products have always been completely
legal in the U.S. in the past.

"Sterilized hemp seeds, stalks, and any products made with derivatives
of sterilized seeds have always been legal -- no matter how much THC
they contain," Chippi said.

Chippi and other local hemp products merchants base that conclusion
largely on a 1991 affidavit, in which DEA agent Charles Metcalf
testified about the use of sterilized marijuana seeds as birdfeed.

"Sterile marijuana seeds are specifically excluded from the definition
of 'marijuana,' and are not a controlled substance under federal
statute," Metcalf stated in his affidavit. "The DEA, and my office in
particular, is aware that sterile marijuana seed ... is likely to
contain residue .... which will test positive for THC, the active
ingredient of marijuana."

By that standard, Chippi said, the recent seizure in Detroit is
completely illegal.

"The DEA is all of a sudden saying that they've changed the law, and
there's a 'zero tolerance' for THC in sterilized hemp products,"
Chippi said. "They're just making up the rules as they go along, and
everyone is on edge, because we don't know what they're going to do
next."

According to Chippi, the Kenex seed confiscated in Detroit tested
positive for THC in the amount of .00148 parts per million -- a level
far too low to give human consumers of hemp tortilla chips any kind of
a buzz.

DEA spokeswoman Rogene Waite said that didn't matter.

"Basically, the issue is whether there is THC or not," Waite said. "If
there is, then it's a schedule I drug -- it's illegal."

Waite wouldn't comment on the subject of Metcalf's affidavit, which
would seem to support Chippi's position. Instead, the DEA sent the
Colorado Daily a prepared statement on the subject.

"Recently, DEA and other federal agencies have become aware that
sterilized cannabis seed has been imported into the United States for
use in food products for human consumption," the statement declares.
"Under federal law, THC is a schedule I controlled substance.
Therefore, any product containing any amount of THC can only be
imported into the United States by a company that is appropriately
registered with DEA."

According to Waite, companies that voluntarily register with the DEA
"might" be able to utilize hemp products containing measurable levels
of THC.

"If there is any THC, then a company wishing to import something would
need to register with DEA, and they would start by contacting their
local DEA office," Waite said. "I can't speculate on whether a company
would meet the registration requirements or not."

Asked to elaborate on just what, exactly, the "registration" procedure
would entail, Waite said, "There would be requirements for information
providing, bonafide use of the company or group, and security
requirements," she said. "Companies interested in that you can call
their local DEA office."

Chippi was quick to question that explanation.

"Register? Is that their new policy?" Chippi asked incredulously. "No
one has ever been required to register anything with the DEA before,
and they've never provided anyone with any paperwork to do so.

"Our company abides by the federal Controlled Substances act, and it
doesn't say anything about registering," Chippi added. "We're not
going to register, and we'd like to hear more about who rewrote the
law."

Blair Wilson of the Nederland-based High Country Hemp Company said the
Detroit seizure and the newly implemented "registration" process are
both indicative of the DEA's true agenda.

"The public knows that kids aren't getting high off of smoking hemp
hats or hemp seeds," Wilson said. "It's time to expose the real
motivations of the DEA -- this is the DEA's last-ditch attempt to kill
the developing hemp industry."

Representatives from Kennex, Inc. could be not be reached by press
time Wednesday.

PHOTO CAPTION: Kathleen Chippi is vice president and co-owner of
Heavenly Hemp, which manufactures tortilla chips that include ground
hemp seeds in the flour. Chippi believes the recent DEA confiscation
of 39,000 pounds of sterile hemp seeds is an illegal attack on the
fledgling hemp industry.