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Service has been working tirelessly over the last several years to 

 build consensus on how to manage the Tongass National Forest. We 

 are committed to completing the revision of the Tongass Land 

 Management Plan in the near future. We believe that we will be 

 better equipped to make decisions about future long-term 

 commitments to timber-related industries in Southeast -- reflecting 

 sound scientific information and extensive public input -- once the 

 revision process is completed. 



Mr. Chairman, let me provide you updated information about the 

 Forest Service's ability to meet their timber volume commitment to 

 Ketchikan Pulp Company's existing contract. From 1989 to 1994, the 

 Forest Service offered KPC 935.6 MMBF of timber. In that same time 

 period, KPC harvested 926.9 MMBF. In 1995 the Forest Service 

 offered KPC 157 MMBF and we are targeting 217 MMBF for 1996. Most 

 of the 1996 program for KPC has been offered already -- indicating 

 Forest Service efforts to meet KPC's concerns about early 

 delivery. Forest Service figures indicate KPC currently has 295 

 MMBF under contract, although as always, litigation may affect the 

 availability of some of this timber volume to KPC. 



One of the significant factors to be taken into consideration in 

 any discussion with KPC is the pending litigation against the 

 United States. KPC is currently pursuing four claims against the 

 United States claiming hundreds of millions of dollars in damages. 

 While KPC is suing the United States over the interpretation of the 

 provisions of the original contract and the changes that the 

 Tongass Timber Reform Act made to the contract in 1991, it is 



