stratus_020202 good point however...
There are questions asked about almost everything. When in doubt, throw it out. There is a question about some plastics (BPA) that may or may not be in the plastics around your collection. White paper products may (likely do in fact) contain one or more of the various dioxin compounds. They are arguably the most toxic industrial by product known at 0.0006 mg/kg (LD50 lethal dose that kills 50% of a given population of guinea pigs) Your paper towels may contain dioxin an argument could be made about that too.
I guess my point is almost everything can be called into question in a modern society. You can't just avoid all things that maybe an issue so the question is how much of an issue is it?
That I think is part of the point of this thread. Pine has questions of how toxic is it, so does all papers and almost everything else. As I stated I would be concerned about using raw air dried pine and I would always question if my chips I was being supplied with were kiln or air dried ones. It is a cheap absorbent and more environmentally responsible choice. Personally I have questions and locally for me kiln dried pine chips shavings is next to impossible to find anyway. So I'll not use pine at all, I can see the attraction to it.