395 



These differences a 

 inequity results, i 

 stumpage prices are 

 influenced as much 

 the minimum adverti 

 addition, the price 

 to pay is substanti 

 used in coming to i 



re illustrated below in Table 1. This 

 n part, from the fact that the long-term 



held constant for longer periods and are not 

 by improving markets conditions which raise 

 sed price for competitive timber sales. 8 In 



that long-term contract holders are willing 

 ally less than the price the Forest Service 

 ts conclusions in the AMS. 



1 Alaska Pulp Corporation. 



2 Louisiana Pacific-Ketchikan 



While recent contract modifications have been made to 

 periodically raise the stumpage rates for the long-term con- 

 tracts, price increases for the contracts are not subject to 

 competitive bidding. If they were, the willingness to pay for 

 long-term timber would increase by another 35 to 50 percent. 



6 



Thla i«ltr»cort«  fundamental flaw In the Foreat Service tfflber appr.i.al proceee for the Toogass 

 National Foreat. Tha eppraleel procaaa fa underpinned by tha aaauaptfon of fre« competition for national 

 foreat tietoer, which la not applicable to tha Tongaaa due to tha long-tar* tiatoer aalea. 



