258 



Regional Office 

 630 Sansome Street 

 San Francisco, CA 94111 



Reply To: 5410 Date: September 13, 1993 



Subject: The Pacific Lumber Company 



Appraisal of the Headwaters Forest 



To: Regional Forester 



APPRAISAL REVIEW 



A narrative appraisal report dated January 1, 1993, was prepared by Janes E. 

 Fleming for a 4,488-acre property located in the redwood-producing region of 

 northwestern California. Owned by The Pacific Lumber Company, the property 

 contains 2,738 acres of old-growth forest. Including the largest tract of 

 virgin, old-growth redwood timber in private ownership. The heavily timbered 

 tract is known as the Headwaters Forest because of Its location at the 

 headwaters of the Salmon Creek and Little South Fork of Elk River watershed 

 drainages. The purpose of the appraisal was to estimate the fair market value 

 of the property. Jim Fleming, the appraiser, holds the MAI designation with 

 the Appraisal Institute and Is a Registered Professional Forester (RPF) in the 

 State of California. A summary of the property appraised Is as follows: 



APPRAISAL SUHHARY 



Property size - 4,488 acres 



Net timber volume - 610.7 million board feet 



Improvements - Bridge/existing roads 



Estate appraised - Fee simple 



Highest and Best Use - Timber harvest 



Outstanding rights - One-half mineral rights 



Reservations - Roads, rock quarry 



Market value estimate - $499,000,000 



Date of valuation - January 1, 1993 



Scope of Review - Hy review of the appraisal was based on the data and 

 information contained within the report, discussions with real estate 

 appraisers and foresters, and a general knowledge of the subject property and 

 market area. I also visited the property as a part of this review. 



Property Data - The property is a single 4,488 acre tract located about four 

 air miles northeast of the community of Fortuna and about 12 air miles 

 southeast of Eureka, the Humboldt County seat. The property is about 12 miles 

 from Humboldt Bay and the Pacific Ocean and about 10 miles due north of The 

 Avenue of the Giants along Highway 101 in Humboldt Redwoods State Park. Access 

 from Highway 101 is over a good quality, gravel-surfaced road beginning at the 

 end of a county maintained road near Fortuna. The road is owned by The Pacific 

 Lumber Company. A fairly well developed network of logging roads provide 



