16 



The Chairman. Congress tried to avoid that. What we are doing 

 is set up a high-grade system. 



Mr. Janik. Well, sir, we are doing a complete Tongass revision 

 in September. That is the target for signing a record of decision. 

 And again, it has been stated clearly that the bill as written is un- 

 acceptable. 



The Chairman. Well, let me interrupt you a minute, though, be- 

 cause you said how big the TLMP pile of wood is going to be. You 

 stated it is going to be 297 million board feet. 



Mr. Janik. That is currently what is under public review. That 

 is not yet a decision. 



The Chairman. Are the woods going to grow smaller or larger? 



Mr. Janik. I have no idea, sir. That was 



The Chairman. Who makes that decision? 



Mr. Janik. I will make the ultimate decision. 



The Chairman. You will make that? 



Mr. Janik. With recommendations from the forest supervisors 

 after we review public comment. 



The Chairman. It gives you an awful lot of God power, doesn't 

 it? 



Mr. Janik. It gives me power I take seriously, sir. 



The Chairman. OK, the second thing is who — you control the 

 cost of sales, do you not, the Forest Service? 



Mr. Janik. Within certain parameters, sir. We have our ap- 

 praisal system that we must comply with. Mr. Walk can address 

 that. 



The Chairman. The company has nothing to do with it. 



Mr. Janik. I am sorry? 



The Chairman. The company has nothing to do with it. 



Mr. Janik. Fred, do you want to address that, or Brad? 



The Chairman. The company has nothing to do with it. You set 

 the price. That is it. 



Mr. Walk. We determine the advertised price of the timber sale. 

 On the independent program it is put out for competitive bidding 

 and then the bidders determine the final price. We establish the 

 minimum accepted bid. All of our timber sale appraisals in the 

 Alaska region are developed using the residual value process 

 whereby we collect costs and selling value data from participating 

 industries, including the Ketchikan Pulp Company, and do analysis 

 of their records. 



The Chairman. What I am trying to stress here is the companies 

 and those biddings do not set the price. They bid or in the contract 

 you set the price for the timber, is that correct? 



Mr. Walk. We set the price using data we collect from 



The Chairman. Now under the present contract, the price can 

 only be adjusted upward, but not downward, is that correct? 



Mr. Walk. The long-term contract provides for an upward or 

 downward emergency rate determination. 



The Chairman. Has it ever gone downward? 



Mr. Walk. Yes, sir. 



The Chairman. It has? 



Mr. Walk. Yes, sir. 



The Chairman. All right, what I am suggesting to you, Mr. 

 Janik, is that you ought to be offering some suggestions to this leg- 



