42 



supplier of the timber can say listen, we can extend this contract 

 and give you some stipulation, we are telling you what is wrong 

 with this bill and say all right, can you live with this, this and this. 

 That is all I am asking you. This is the starting point and I have 

 yet to find out any — other than the fact that it can't work. Tell me 

 what will work and then let us sit down and negotiate with Ketch- 

 ikan Pulp and see if there is something that can work unless you 

 want to kill the industry. 



Those of you who want to kill the industry — I don't, and I wish — 

 and frankly, I wish people would tell me and I would be glad to — 

 we could save a lot of time, but this gentleman, these gentlemen 

 and this lady has a problem and that is to keep those people work- 

 ing, to keep the town viable. 



I could ask another question but we're about — afraid we'll run 

 out of time here. 



Mr. Miller. Well, I just — let me just ask you, in terms of the 

 production of this facility over the last — go back a year from today, 

 this quarter. What has been the production at the facility? 



Mr. Lewis. Our production? About 480, 490. 



Mr. Miller. But in terms of your capacity, mill capacity, that is 

 what that translates to? 



Mr. Lewis. We believe our mill 



Mr. Miller. Fifty percent, 90 percent? 



Mr. Lewis. Probably about 85, 90 percent. 



The Chairman. And that is in pulp? 



Mr. Lewis. That is in pulp. Our sawmill, KSM, was down, I 

 think, almost all of last year. Hemlock, our sawmill, was running, 

 I think it was, one shift not all of last year. We — I think that has 

 been the same for a couple years. In 1993 we were down almost 

 100 days for lack of wood. And we would have been down another 

 50 or 60 days except that APC went down and we bought wood 

 from them. And basically that all came from the change in the 

 wood supply and how we got our wood and where it was released. 



The Chairman. And these are added value projects you are talk- 

 ing about? This is your sawmill? 



Mr. Lewis. Yeah, these are the sawmills that take the higher 

 value. KSM produces lumber. 



Mr. Miller. The sawmill was down 100 days? 



Mr. Lewis. Down, if I remember — the pulp mill was down 100 

 days, and I believe that when APC went down, the whole area was 

 short of wood. APC went down and we bought some of their pulp 

 logs. It kept us running or we would have been down another 60 

 days or something like that, except the wood that we bought al- 

 lowed us to work. And that is 



Mr. Miller. And then how many other days due to reasons 

 not 



Mr. Lewis. Lack of wood? Well, the sawmills have been down — 

 I bet you the sawmills have only run — I am just guessing, but prob- 

 ably 40 percent, 50 percent of the time in the last three years. They 

 never literally with wood, out of wood. Right now KSM just got 

 started back up and went back down. It has been pretty rough on 

 everybody. 



Mr. Miller. The mill — how much of the time has the pulp been 

 down due to lack of material and/or maintenance? 



