180 



their accomplishment being non-sawlog material. This includes fuelwood. post and poles and . 

 some pulpwood, but not anything that could be run through a sawmill. This is a far cry from the 

 10 percent "other wood" level projected in the Plan. 



Almost a year ago, the President signed into law the Rescissions Bill that included a provision. 

 Section 2001 (k), which released previously sold timber sales. The total \olume covered by this 

 section - about 650 million board feet sold over the last five years - is slightly over half of what 

 the President's Northwest Forest Plan promised every year. To date, only about 350 million 

 board feet of these old sales have been released. It is also interesting to note that most of these 

 sales were assumed to have been already harvested in the biological assessment for the 

 President's Northwest Forest Plan. 



These timber sales are critical to the region's forest products companies. Of the companies 

 holding contracts, about a dozen have closed mills while awaiting the release of these sales. This 

 volume sold in prior years could go a long way toward mitigating the economic hardship caused 

 by reductions in the federal timber sale program, while helping the Administration meet its 

 promise to timber dependent communities in the Pacific Northwest. 



The Consequences of the Administration's Failed Northwest Forest Plan 

 The future of the forest products industry in the Pacific Northwest rests with a sustainable, 

 predictable supply of timber sales. It is clear that the Clinton Administration has been unwilling 

 and unable to meet this need. As a consequence, federal timber sale volume under contract is at 

 an all time low. Historically, a two-year supply of volume under contract was considered a 

 minimimi for efficient management, to accommodate changes in the market, and to secure capital 

 for continued operations and investments in facilities and equipment. Mills and other business 

 that rely on an adequate supply of timber have difficulty securing financing for these activities 

 . from lending institutions without demonstrating future viability through adequate volumes under 

 contract. 



Exhibit #7 shows the relationship of volume under contract and number of operating mills in the 



