202 



Durtrrg ths prB$«nt foreit manm«m«nt plan MartDat has baen able to Mcura matarlai supply 

 eontracU in kuffldantquanHlias to supply our opantion. Howtvar.wHhtha out baak from 118 

 MMBP^ to 100 tJMBF as announeod by forast suparvlsor Robarta Moitzan (wN^ might I add 

 has baan dona bafbra avan tha draft plan has bean Issuad), the tong tann viabiB^ of this 

 supply bacomas questlonabia. This Is especiayy true given that the Black HDs National Porast 

 is aaying that the draft plan win induda an ASQ> somewhere in the rar^ of 40 IMMBP on tha 

 low side to 100 IMMBF on the h^h side. Thera are many factors that will detormina tha Ma of 

 ktortllat Industries m Rapid City, but certainly one of them Is how the reduced han^eat levels wiD 

 afttet our material suppBars. Industry must have a stable supply and predictable policy 

 decisions to survive. 



1 agree with you Senator that the USF8 should Immediately release their growth and yield data 

 from which they are assembling the plan revision so that it oan be scnjiinlzed and agreed upon 

 by all intsrastad parties, it is hard to accept the announced outo In tha A8Q when the only 

 data that is presently avalabie to the pubHc states that the suitable timber acreages m the 

 Blade HIDs National Forest is growing 148 MMBF per year, if this Is true, why would a harvest 

 of only 100 MMBF be necessary? 



Senator Presslar, thera Is also another issue that Is affecting the immediato future of the timber 

 Industry, as well as oOwr industries that rsly on the timber industry, as does Marillat The 

 budget raoentiy passed by tha Confess reduced the amount that the Fotvst Service has to 

 spend to do the required documentation to offer timber for sale. On the Black Hills National 

 Forest, supervisor Mottzen has stated that due to these budget cutbacks, tha A8Q for fiscal 

 1894 wHi be reduced from 100 MMBF as previously announced to a total of 85 MMBF. This Is 

 a 28% cut back in timber supply in one fiscal year (85 MMBF as compared to 118 MMBF, the 

 1983A8Q)1 This does not pass the test of reality. I was under the Impression that Congress 

 and the Executive Branch wanted to reduce the defteit and create Jobs. The Black Hills 

 National Forest is a profitable forest. Every board foot soM returns a positive cash flow to the 

 United States Treasury! This is not "funny money", but cold hard cash that the government is 

 turning Its back on. TDis budget cutback vi/lli actually increase the deficit and reduce Jobsl I 

 urge you Senator to worii for appropriation of the required funds, espedeily on Nattonal 

 Forests where timber is a profit making venture for tha United States government Mght I 

 point out that local governments also reap benefits from timber programs as well. 25% of the 

 gross receipte of timber sales are retumed to the county governments of the counties where 

 tha timber was hanrested. In fiscal 1882, roughly (3.5 million was retumed from the Black Hills 

 National Forest to local cointies, with Just over $1 ,000,000 going to Pennington County alone. 

 While it is at each county's discretion as to how to distribute these funds, Pennington County 

 currently aUocatas 50% to the county highway department, and 50% to tha school districts 

 based on acreage of nattonal forest land in their district As a result the Hill City School 

 District received about 9500,000 In fiscal 1902. I believe this amounte to about 25% of their 

 totel school district budget. Reduottons in the ASQ will undoubtedly have a devastating Impact 

 on these fimds. 



We also know that one factor that is driving up tiie costs in preparing these timber sales is the 

 constant fning of frivolous appeals. On the Black HDis National Forest, these appeals are 

 primarily being filed by the local group of the Sierra dub. They continue their efforts to block 



^ MMBF-mmionbosRifMt 



2 ASQ • allowsbit ssia qutrMy 



