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Headwaters Forest Appraisal Review - Page 4 



public agencies have not sold old-growth redwood since 1989. No private 

 stumpage sales were found since landowners prefer to sell logs delivered to the 

 mill rather than "on the stump." The sales were used to develop value 

 estimates for old-growth and young-growth Oouglas-fir, young-growth redwood, 

 grand fir and hemlock. The sales, which all occurred between January and 

 November 1992, were adjusted for time, to reflect change in indices from 

 appraisal date to contract date, and dollar differences in logging, road, and 

 sale preparation costs, log quality, and yield taxes. The stumoage values were 

 then correlated with those obtained by the delivered log method, resulting in 

 value estimates by species. Including special culls and utility logs, 

 summarized as follows: 



Species 



Old-growth redwood 

 Young-growth redwood 

 Old-growth Douglas-fir 

 Young-growth Douglas-fir 

 Grand fir & hemlock 

 Sub-Total 



Culls & Utilitv Loos 

 Old-growth redwood 

 Young-growth redwood 

 Old-growth Douglas-fir 

 Sub-Total 



The contributory value of the loggable timber component was then estimated to 

 be $496,386,930. 



Land and Remaining Trees - To value the land component, the appraiser selected 

 five recent timber land transactions for comparison to the appraised property as 

 if cutover. These properties varied in size from 433 to 1,783 acres and sold 

 between June 1990 and July 1992; selling prices varied from $421 to $4,966 per 

 acre. All are located in HurAoldt County and have similar potential to grow 

 future crops of redwood trees. Elements of comparison were time, size, 

 terrain, access, timber resource, timber site and highest and best use. The 

 comparable sales were all cutover, but the remaining timber varied from heavily 

 cutover to fairly well-stocked stands of young-growth redwood and Oouglas-fir 

 trees, as well as a limited volume of residual old-growth redwood. Four of the 

 transactions were cash sales; the fifth sold with terms considered equivalent 

 to cash. 



The land component was appraised as if cutover, but with 18,849 MBF of 

 merchantable timber in trees with a dbh (diameter breast high) of 7 inches and 

 larger. This was an average of 4.2 MBF per acre, with 80% in old-growth 

 redwood, 10% in young-growth redwood, 7% in old-growth Oouglas-fir and the 

 remainder in young-growth Douglas-fir, grand fir and hemlock trees. The 

 timberland sales were compared to the subject properties and adjusted for 

 factors that were identified as affecting value. After adjusting the sales, 

 the values ranged from $575 to $640 per acre, with a midpoint of $607.50 and an 

 average of $614. With the elimination of the least comparable sale, the 

 remaining four suggested a value near $625 per acre. Based on this analysis, a 

 value of $625 per acre was estimated for the land and remaining trees, or 

 $2,805,000 for the 4,488-acre property. 



