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United States Forest Rocky Box 25127 



Department of Service Mountain Lakewood, CO 80225-0127 



Agriculture Region Delivery: 740 Sinuns St. 



Golden, CO 80401 



Reply to: 2420 



Date: August 13, 1993 



Potential Purchasers of National Forest Timber 

 and Other Interested Parties : 



Several years ago, in consultation with the timber industry, all the 

 intermountain Regions of the Forest Service implemented the use of transaction 

 evidence appraisals (TEA) as the principle tool to appraise National Forest 

 timber offerings. As each Region worked with their respective timber interest 

 groups, somewhat different processes evolved. Although txmber in competitive 

 markets has been bid at comparable values, the appraised values of these timber 

 offerings has varied. 



In recent months, the disparity between the appraised value has created some 

 problems. The Forest Service began receiving criticism from purchasers, 

 environmental organizations and the public over these differences. 

 Concurrently, the Forest Service is facing some significant budget limitations, 

 which demand we search out aind implement all opportunities for additional 

 savings . 



In an effort to be responsive to both the criticism and the need for improved 

 efficiency. Regions 2, 3 and 4 of the Forest Service agreed to work toward 

 simplifying and bringing each of their TEA systems into more uniformity. This 

 was no easy task, since each Region has used their version of TEA successfully 

 for many years, and their timber industry had come to know it well. However, 

 through considerable give and take, the mandate for simplicity and efficiency 

 prevailed, and the three Regions reached agreement on the principles of a more 

 common TEA proposal . 



It is important to us that all interested parties have an understanding of the 

 agreed upon proposal and take an opportunity to critique it. For this reason, 

 we have scheduled an information meeting for 9:00 am, Friday, August 27, 1993, 

 at the new Forest Service offices located at 740 Simms Street in Lakewood. At 

 this meeting, we will provide information packets about the proposal, cover the 

 changes this proposal makes from the current TEA process used in the Region and 

 answer your questions. Then we will ask those of you with comments to return 

 them to us no later than September 15, 1993. From your comments and those 

 received by Regions 3 and 4, the three Regions will jointly determine if it is 

 necessary to modify the proposal. Each Region's objective is to implement the 

 new proposal for the next scheduled update which, for R-2, is due to be 

 published November 1, 1993. 



We hope you will be able to attend on August 27. 



Sincerely, 



GLEN E . HETZEL 



Director, Renewable Resources 



