103 



Alaska Environmental Lobby, Inc. ^ 



" Ption*: 907-463 3 Hi 



P.O. lox 22tSI ^jncau. AUsVa 99002 fai: 907^6)-]1l2 



The Haines Long Term Timber Sale 

 Lost Millions of Dollars 



The State lost more than dgbt mlllioii dollars betweeo 1979 and 

 1985 In a Haine* loog tern contract Thii money was lost in noad credits, 

 subsidies. infnslnKtnn. aod tnanagciDeot oosti. After Ac mill closed several 

 times, tbe state canceled the contract in 1985. 



DNR's briefing paper on long-term timber tzlet claims that the DNR 

 Division of Forestry made a profit on this sale. However, the attached 

 documenls show that the Division of Forestry clearly lost money 

 on the Haloes long term dmber sale. 



*DNR spent more than $1 millioo dollars for the Haines 

 Forestry Offlce related to the sak of timber during five 

 years of that sale. Before bankrupcy. DNR owed tbe contracter 

 more than S388,000 in purchaser credits due to road construction. 

 In otber words, dve costs of road oontructioo exceded tbe timber 

 stumpage due to the sUte by $388,000. 



*In addition, the state spent and lost aboot $7 million dollars 

 more in mill-related investments, via the Alaska Resource Coiporation, 

 which is similar to AIDEA. 



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