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Continental Lumber Co. Inc. is a legitimate small business entity located 

 in the heart of the Black Hills of South Dakota, just east of Hill City, six 

 miles north-west of Mt. Rushmore. 



Continental purchased our current location and an antiquated sawmill in 

 1983. Beginning in 1985, and over a five year period, we completely re-built 

 and renovated to achieve a modern, state-of-the-art lumber manufacturing 

 facility. Currently we employ 86 full time employees plus provide employment 

 for another 40 contractors - loggers, log haulers, road builders, chip, shaving, 

 sawdust, and bark, haulers, and lumber haulers. We operate on a gross budget 

 of approximately $20 million dollars annually. 



Being located in the middle of the Black Hills National Forest, the future 

 of our operation, our employees, and the surrounding rural area is wholly 

 dependent on Public Land resources, laws, regulations, and management philosophies. 

 At this particular point in time, that is not a particularly re-assuring 

 reality when assessing our long term potential and hopes for the future. 



We support, encourage and need a continued A.S.Q. from the Black Hills 

 National Forest of at least 118 mmbf. 



When we began our investment and modernization program in 1985, we based 

 our business plan on an assured supply of Forest Service timber in the amount 

 of 128 mmbf (million board feet) per year. Before construction was complete 

 that volume dropped to 118 mmbf. Several months ago the Black Hills Forest 

 Supervisor announced a further reduction to 100 mmbf for fiscal year 1994. And 

 now, preliminary estimates of future resource supply are + 85 mmbf - a loss 

 of one-third of the total program. All this reduction is coming at a time 

 when Forest timber growth is in excess of 150 mmbf /year! 



An unnecessary reduction by 30% of available raw material has an adverse 

 impact on all operations in the area. The most severe impact, however, is 

 on the smaller mills which are not diversified, have no other available raw 

 material, and do not have other operations to subsidize one through tough times. 



We do not support, and are adamently against, designation of any futher 

 Wilderness areas. 



The Black Hills National Forest has increased visitors, deer, elk, turkeys, 

 and a variety of other wildlife due to the diversity of a 100 years of wise 

 management. The only areas showing decreases in numbers are the existing Black 

 Elk Wilderness and the Norbeck Wildlife Reserve which has been precluded from 

 management by countless frlvilous appeals over the last five to ten years. 



We support more reasonable and realistic cash and bonding requirements 

 for small business concerns. 



The cash and bonding requirements for bidding, executing, and bonding 

 Federal timber sales have progressively become more prohibitive over the last 

 ten years. Average sales routinely require in excess of a quarter million 

 dollars in cash, letter of credit, or bonding. Larger offerings run in excess 

 of half million dollars. This seriously depletes cash flow and balance sheets, 

 detours cash and credit from facility improvements, and receives no interest 

 from the Forest Service for the time it is held. 



