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real and proposed reductions in timber supply. I have a 

 series of charts which show what we are aware of in 

 California. 



First, I attach a chart which shows the decrease in 

 the volume of logs sold from the Six Rivers National 

 Forest, formerly a prime supplier of logs for our local 

 mills. We have lost over 125 million board feet of annual 

 supply in five years. Moreover, the recent draft plan 

 from the Six Rivers shows no significant relief in 

 sight. Supplies will remain tight, and prices are very 

 likely to remain high. 



Second, I attach two charts which relate to the 

 values of the two main speaies of old-growth timber found 

 on Pacific Lumber's lands. The data represent values 

 derived by the State of California for tax purposes. For 

 various, complex reasons, these state taxation values 

 cannot be used directly to show true market values. 

 However, the trends of the State's data can be used to 

 show relative price movement. 



Please note the consistently upward price trends for 

 at least the last five years. While the published yield 

 tax data only go back to 1978, longer term trend lines 

 would also show an upward trend, especially for redwood. 

 Historically, redwood and Douglas-fir timber has 

 appreciated significantly over time. This price 

 appreciation was recognized by the courts in both park 

 cases. Neither court supported any discount in value for 

 size or holding period. 



