19 



The next page is fertilization. We would be able to get some of 

 that large carryover work done with the economic stimulus pack- 

 age, but that remains to be a fairly large workload that we face. 



Let me emphasize that these intensive practices were prescribed 

 for treatment based on assumptions made in our 1980 timber man- 

 agement plans where rotation of 80 to 100 years was assumed. The 

 uncertainty of restrictions on our land base due to northern spotted 

 owl protection and the other species that we are trying to recover, 

 the outcome of the forest conterence and the result of our forest 

 management plans £ind the completion of that, obviously are going 

 to have a lot of effect on where it makes sense to make investments 

 on these lands. 



I would like to reiterate that the investment in our forestlands 

 is necessary if BLM is to meet its statutory commitment to manag- 

 ing ecosystems for the sustained yield and all the other species 

 that are important in those ecosystems out there. The practices 

 used by BLM are the most scientifically advanced practices avail- 

 able and are highly cost effective when implemented timely. Quite 

 frankly, we are pretty proud of what we have done out there, Mr. 

 Chairman. 



And this concludes my prepared remarks. I would be happy to 

 answer any questions. 



Mr. Vento. Thank you, Mr. Penfold. 



[Prepared statement of Mr. Penfold follows:] 



Statement of Michael Penfold, Assistant Director for Lands and Renew- 

 able Resources, Bureau of Land Management, United States Department 

 OF the Interior, Before the Subcommittee on National Parks, Forests, and 

 Public Lands of the Committee on Natural Resources, on Rehabiutation, 

 Reforestation and Reinvestment on Public Lands and National Forests of 

 THE Pacific Northwest 



I appreciate the opportunity to appear here today to discuss the Bureau of Land 

 Management's (BLM) forest management in the Pacific Northwest. Coming as it 

 does just a few days before the Forest Conference, this hearing presents an excellent 

 opportunity to set forth the BLM's programs and to correct some misconceptions. 



The BLM manages approximately 2.2 million acres of forestland in western Or- 

 egon. This land, referred to as the Oregon and California Railroad Grant Lands, or 

 O&C lands, is valuable for many resources, including timber, wildlife and fisheries 

 habitat, water, and recreational uses. The O&C lands are managed under authori- 

 ties in the Federal Land Policy and Management Act, the O&C Act of 1937, and 

 the Coos Bay Wagon Road Act. 



We believe, as do the 18 western Oregon counties that share receipts from these 

 lands with the Federal Government, that, in general, these forests are healthy and 

 productive. Key factors contributing to this have been good stewardship and public 

 investment. The O&C Act provides for 75 percent of receipts to go to the counties. 

 However, since 1952, the counties have returned 25 percent of the receipts, amount- 

 ing to over $1 billion, to the Federal Government to be reinvested in development 

 and management of these lands. 



From 1937 until the early 1980's, the O&C lands were managed using the 25 per- 

 cent government share and the 25 percent returned funds from the counties. This 

 method of funding worked well, but was subject to the normal market cycle of the 

 forest products industry and resulted in unacceptable fluctuations and uncertainty 

 in funding. The Congress determined that the long-term nature of forest invest- 

 ments could not tolerate such fluctuations and in 1982 started directing appropria- 

 tions for the management of these lands. Since then, the returned portion of the 

 O&C Fund is deposited in the United States Treasury. 



We consider tne reforestation and forest development programs to be of highest 

 priority and are proud of the outstanding success we have had in this area. Our 

 silviculturists ana technicians are highly trained and have some of the most ad- 

 vanced adaptive reforestation research at their disposal. Their skill and dedication 

 are evidenced by the fact that, despite the harvest of 48 billion board feet of timber 



