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Headwaters Forest Appraisal Review - Page 5 



Reconciliation To Total Property Value - The sum of the value components, 

 loggable timber and land with remaining trees, suggested the following total 

 value for the property: 



Value Component ContrlbVltOrY Val«g 



Loggable Timber $496,386,930 

 Land & Remaining Trees 2.805.000 



Total Property Value $499,191,930 



In his reconciliation and final value estimate, the appraiser recognized that 

 consideration must be given to the period of tine that would be required to 

 harvest the timber, in this case, 12 to 16 years. He noted, however, that the 

 desirability of a reliable supply of high quality, old-growth redwood and 

 Oouglas-flr timber and the anticipation of future price Increases, among other 

 things, tended to offset the affects of time on the overall property value. The 

 appraiser, therefore, concluded that the market property value of the 4,488-acre 

 Headwaters Forest property was $499,000,000, as of January 1, 1993. 



REVIEWER^S COHMENTS 



The appraisal report provided a well -supported market value estimate for the 

 Headwaters Forest property. The market was thoroughly researched, and a wide 

 array of relevant data and market evidence was collected, analyzed and evaluated 

 by the appraiser In the development of the value estimate. The report was well 

 written and thorough. The many charts Included In the appraisal were very 

 helpful in following and understanding the appraiser's valuation processes and 

 methodology. 



CONCLUSION 



The market value estimate was adequately supported by the market evidence 

 presented in the report and the appraiser's analysis of the data. The appraiser 

 used appropriate appraisal methods and techniques to develop a supportable and 

 reasonable conclusion of market value. In my opinion, the appraisal meets 

 Agency standards. It also meets the requirements of the Uniform Appraisal 

 Standards for Federal Land Acquisition, 1992, and the Uniform Standards of 

 Professional Appraisal Practice (USPAP). 



Based on the findings of my review, I approve the January 1, 1993, appraisal 

 report with a market value estimate of $499,000,000 for the 4,488-acre 

 Headwaters Forest property. 



Ronald 8. Cecchi Date 



Regional Appraiser 



