43 



Mr. Lewis. OK, the lack of material was what I just talked 

 about. And maintenance, I would say, we usually average any- 

 where from 15 to 25 days, so I would say we were somewhere in 

 that area. 



Mr. Miller. They are your scheduled 



Mr. Lewis. That is a year, yeah. That is scheduled maintenance. 



Mr. Miller. Scheduled. Were you down more than you were 

 scheduled for? 



Mr. Lewis. Yes. We have had some upsets where we went down. 

 We had some areas that we went down for four or five days and 

 started back up. I mean, things like that. 



The Chairman. I want to thank the panel. You know, this is a 

 hard nut to crack here, and I hope we can get some suggestions, 

 as I told the Forest Service and even yourselves, so we can come 

 to some solution to this problem. I happen to agree with you. I 

 would not invest if I didn't have a supply in a chicken picking plant 

 or any other kind of plant — if I knew they were short of a supply. 

 If there was some private timber there, we wouldn't have a prob- 

 lem. We would have timber, not as convenient as — by the way, the 

 mills in New York — if you want to have some fun sometime, go 

 visit those 37 mills in New York and see what kind of contract they 

 have, what kind of environmental qualities they have, too. This 

 mill is ten times cleaner than that because we are a clean area. 

 That is unfortunate. 



You are excused. I want to thank each one of you for traveling 

 so far to testify to the committee. 



The next panel up is panel four: Mr. Scott Estey, Vice President 

 of Corporate and Investment Analysis; Mr. David Roets, Southeast 

 Regional Sales Manager from Arkansas; Mr. Al Knapp, The Indus- 

 trial Company, Steamboat Springs, Colorado; and Mr. Samuel 

 Mabry, Vice President of Government Affairs, Hercules, Incor- 

 porated, Washington, D.C. Would you gentlemen please take the 

 witness stand. 



Mr. Scott Estey, you are up. I apologize for the long wait, by the 

 way, but this is one of the problems we have when we have these 

 hearings. It takes a long period of time. 



STATEMENT OF J. SCOTT ESTEY, VICE PRESIDENT OF COR- 

 PORATE AND INVESTMENT ANALYSIS, JAAKKO POYRY CON- 

 SULTING, TARRYTOWN, NEW YORK 



Mr. Estey. Thank you, Mr. Chairman. My name is Scott Estey. 

 I am Vice President of Corporate and Investment Analysis with 

 Jaakko Poyry Consulting North America. Jaakko Poyry provides 

 management consulting and investment advisory services to the 

 pulp and paper and forest products industry, as well to suppliers 

 of equipment, raw materials, or capital to the industry. 



I have been retained by Ketchikan Pulp Company to provide tes- 

 timony regarding typical financial return and project life require- 

 ments for capital expenditure within the pulp and paper industry. 

 This testimony is made in light of KPC's request for an extension 

 of its timber supply contract with the U.S. Forest Service, stating 

 that the extension is required in order to ensure that fiber supply 

 is available for a sufficient period of time to allow KPC to earn an 

 adequate return on capital expenditures at its mill in Ketchikan. 



