74 



concerning the sale offering plan could effectively put the 

 contract above the land management plan. Language in Section 

 2(c)(3) and 2(e) would put into law volume requirements currently 

 disputed in litigation. Language in Section 2(c)(4) requiring that 

 contract stumpage rates not place the purchases at a "competitive 

 disadvantage to similar enterprises in the Pacific Northwest" is 

 legally inexact and would likely generate extensive litigation. 

 Language in Section 2(c)(7) would compromise the Chief's ability to 

 terminate the contract to prevent "serious environmental damage, 

 serious damage to cultural resources" or should the contract be 

 "significantly inconsistent with land management plans adopted or 

 revised. " 



Background 



Several fifty-year timber sale contracts were used in Alaska to 

 promote rural development and economic stability. We believe that 

 the long-term contracts in Alaska accomplished their objectives in 

 facilitating the establishment of a timber industry in Southeast 

 Alaska and contributing to the early growth and development of 

 Southeast Alaska's economy. 



The economic climate has changed dramatically since Ketchikan Pulp 

 Company's contract was signed in 1951. Recreation and tourism now 

 draw over 600,000 visitors a year to Southeast Alaska -- more than 

 double the visitation in the past 15 years. Sport and commercial 

 fishing are also significant elements of the economy of Southeast 

 Alaska and one of the top producers of jobs and revenues. 



