-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 joyMCBDxHJ1tJB72uX8f7w==

<SEC-DOCUMENT>0000922996-06-000147.txt : 20060607
<SEC-HEADER>0000922996-06-000147.hdr.sgml : 20060607
<ACCEPTANCE-DATETIME>20060607162224
ACCESSION NUMBER:		0000922996-06-000147
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060525
FILED AS OF DATE:		20060607
DATE AS OF CHANGE:		20060607

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Burry Michael J
		CENTRAL INDEX KEY:			0001342573

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-03924
		FILM NUMBER:		06891822

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		408-441-3601

	MAIL ADDRESS:	
		STREET 1:		20400 STEVENS CREEK BLVD., SUITE 840
		CITY:			CUPERTINO
		STATE:			CA
		ZIP:			95014

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MAXXAM INC
		CENTRAL INDEX KEY:			0000063814
		STANDARD INDUSTRIAL CLASSIFICATION:	PRIMARY PRODUCTION OF ALUMINUM [3334]
		IRS NUMBER:				952078752
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1330 POST OAK BOULEVARD
		STREET 2:		SUITE 2000
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77056-3058
		BUSINESS PHONE:		7139757600

	MAIL ADDRESS:	
		STREET 1:		1330 POST OAK BOULEVARD
		STREET 2:		SUITE 2000
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77056-3058

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MCO HOLDINGS INC
		DATE OF NAME CHANGE:	19881115

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MCCULLOCH OIL CORP
		DATE OF NAME CHANGE:	19800630

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MCCULLOCH OIL CORP OF CALIFORNIA
		DATE OF NAME CHANGE:	19691118

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SCION CAPITAL LLC
		CENTRAL INDEX KEY:			0001182422
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-03924
		FILM NUMBER:		06891823

	BUSINESS ADDRESS:	
		STREET 1:		20400 STEVENS CREEK BLVD.
		STREET 2:		SUITE 840
		CITY:			CUPERTINO
		STATE:			CA
		ZIP:			95014
		BUSINESS PHONE:		408-441-8400

	MAIL ADDRESS:	
		STREET 1:		20400 STEVENS CREEK BLVD.
		STREET 2:		SUITE 840
		CITY:			CUPERTINO
		STATE:			CA
		ZIP:			95014
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>form4_mxm-6606ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-05-25</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0000063814</issuerCik>
        <issuerName>MAXXAM INC</issuerName>
        <issuerTradingSymbol>MXM</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001182422</rptOwnerCik>
            <rptOwnerName>SCION CAPITAL LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>20400 STEVENS CREEK BLVD.</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 840</rptOwnerStreet2>
            <rptOwnerCity>CUPERTINO</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>95014</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001342573</rptOwnerCik>
            <rptOwnerName>Burry Michael J</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>20400 STEVENS CREEK BLVD., SUITE 840</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>CUPERTINO</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>95014</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2006-05-25</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>546541</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>31.70</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>Through managed funds</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2006-05-25</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>157559</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>31.70</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>Through managed funds</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <ownerSignature>
        <signatureName>Dr. Michael J. Burry</signatureName>
        <signatureDate>2006-06-07</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----