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constructively toward a solution to the Headwaters dilerama 

 that would be satisfactory to all parties. For our part, 

 we stand ready to be creative and flexible in terms of the 

 types of consideration we would receive in addition to a 

 reasonable amount of cash. For example, this could 

 include other timberland (to protect jobs), surplus 

 Department of Defense facilities, other property, bidding 

 certificates for future use when the government disposes 

 of surplus property, government bonds or some combination 

 of the foregoing. We likewise are prepared to agree to 

 some objective mechanism to determine values. I would 

 hope that this Subcommittee and other relevant parties 

 would be equally flexible and creative, and equally 

 concerned . about the Constitutional requirement of justly 

 compensating Pacific Lumber for this taking. 



We are not, however, prepared to stand idly by and 

 have our company virtually destroyed, our employees 

 irreparably harmed and Humboldt County dealt yet another 

 economic body blow through the enactment of H.R. 2866 in 

 its present form. The very fabric of rural, northwestern 

 California — of which our company is an integral part — 

 is at stake. 



Let me describe the extent to which government 

 already owns forest land in northern California. If you 

 were to look at a map, over 60 percent of the northern 

 part of our state is forest land. Of these forest lands. 



