43 



Under the Endangered Species Act, if conviction is made, the 

 Fish and Wildlife Service has the discretion to deny Pacific Lumber 

 Company the privilege of a take permit under the habitat conserva- 

 tion plan. Perhaps this is why it is a very sticky area to talk about 

 prosecuting them for their illegal violations. 



At any rate, I believe H.R. 2866 will require sustainable manage- 

 ment of these lands. 



The rehabilitation of the logged lands is essential because they 

 form the linkages between the core areas of ancient forests, and as 

 we have heard over and over, agency biologists are increasingly 

 concerned about the loss and impoverishment of biodiversity, and 

 the lack of "functional element" in the managed landscape, 

 biodiversity, and functional elements that are necessary to keep 

 our forests healthy. 



Under the jurisdiction of the Forest Service, the management 

 plan would be developed with full public review and input, which 

 we have not had under the California Forest Practices Act, and our 

 local communities would be involved in determining their future. 

 Removing Maxxam's control over this priceless national treasure is 

 vital to the long-term productivity and economy of our region. 



Please vote yes on H.R, 2866. With your vote of confidence. Con- 

 gressman Hamburg can open negotiations with a meaningful vision 

 and work toward a solution which will reflect concern for the long- 

 term health of the forest and our timber-dependent communities. 



This is the first step toward ending the timber wars in northern 

 California. The Headwaters Forest Act offers us this last chance to 

 protect vital and rich species, as well as turn the tide in the decline 

 of our timber-dependent communities in northern California. 



Thank you very much. 



[The prepared statement of Ms. Lanman appears at the conclu- 

 sion of the hearing.] 



Mr. Rose. Dr. Stewart. 



STATEMENT OF WILLIAM STEWART, SENIOR RESEARCH ASSO- 

 CIATE, PACIFIC INSTITUTE FOR STUDIES IN DEVELOPMENT, 

 ENVIRONMENT, AND SECURITY 



Mr. Stewart. Mr. Chairman and subcommittee members, thank 

 you for the opportunity to appear before this subcommittee to dis- 

 cuss the Headwaters Forest Act. My name is William Stewart, £ind 

 I am presently a senior research associate with the Pacific Institute 

 in Oakland. I was requested by Representative Dan Hamburg to 

 summarize some of the key economic trends regarding forest and 

 local emplojrment in the Headwaters Forest area. 



I recently completed a detailed analysis of the relationship be- 

 tween timber harvest, timber jobs, and the local economies using 

 county level data covering the past 20 years across the State of 

 California. The econometric models I developed for this analysis 

 highlight two fundamental trends not captured in the standard 

 models built upon requirements in the 1970's, rather than the 

 1990's. 



Since the supporting evidence is in my statement, I would just 

 summarize two of the msdn trends. 



The first key trend is the impact that new investment has on 

 jobs in the forest industry. Even though harvests in the late 1980's 



