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The power company told Maine DEP that proposed fish passage standards for a new water quality certificate were massively expensive and legally dubious.
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Under the deal The Nature Conservancy will buy four dams on the river that have blocked sea-run fish for generations.
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Pembroke residents and Passamaquoddy tribal members have expressed concerns about the project's impacts.
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Bucksport Mill LLC sought to surrender ownership of the dams that impound Silver Lake, Toddy Pond and Alamoosook Lake.
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The owner of three dams in the Bucksport area wants to give up ownership of the dams.
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Federal regulators will hold two public hearings this week on the relicensing for four dams along the Kennebec River.
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A coalition of local and national conservation groups is criticizing a new opinion from NOAA fisheries that finds endangered Atlantic salmon aren't jeopardized by four hydropower dams on the Kennebec River.
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The four groups say they've obtained data showing the dam's owner remains in violation of the Endangered Species Act
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The announcement from Sappi North America came two days after the mid-term election, where the future of the Skowhegan mill itself had been a flashpoint in Maine's gubernatorial race.
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Once the project is complete, more than 2,000 acres of lake and pond habitat and 75 miles of rivers and streams will be reopened to migratory fish such as alewives, shad, eels, and endangered Atlantic salmon.