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cost in excess of the loaned anjount. The FtnHA was well aware of this plan , even asking for 

 details about the timber contracts, and requesting a copy of one of the contracts. Approval of the 

 loan by the FmHA was based in large part on this Federal timber supply that the company had 

 under contract. 



Well, it did not work out as planned. In late 1992 the Forest Service stopped all operations on 

 cur Section 3 IS timber sales due to supposed Marbled Muirelet flybys. It has now been nearly 

 four years; the four sales, with over 14,000,000 board feet of timber, are still held up. With the 

 most recent ruling by the 9th Circuit Appeals Pan^I, jt would seem that these sales will never be 

 logged by Mayr Bros. 



In 1993 the President came out to Portland, Oregon to hold a forest conference. As a result of 

 that conference, the Secretary of Agriculture Mike Espy and Secretary of Interior Bruce Babbitt 

 indicated the Forest Service and BLM would sell 2 billion board feet in 1994 and then would 

 ramp down to about a tallion board feet. In 1994. when the President's Forest Plan was finaCzed, 

 we found just the opposite. These ageodes were telling us they would ramp up to 1 .053 KQion 

 board feet by the end of 1 997, but that only 948 million board feet (MMBF) would be sawtiniber. 

 That is the type of material we need to run our mill. Additionally, that 948 (MMBF) would have 

 to be shared by compaines in three States. 



The impact to the solid wood products industry manufacturing capacity in the Pacific Northwest 

 has been devastating. Attached to my statement are some charts developed by Mr. Paul Etunger 



