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delivery system has resulted In a continuing failure of the Forest Service to meet its 

 timber volume commitment to KPC. TTRA also irrationally altered the contract's 

 pricing structure. 



It is extremely costly to operate our pulp mill on an intermittent basis, which is 

 why we require a steady, certain supply of raw material. Since the passage of TTRA, 

 the Forest Service has repeatedly failed to meet its contractual requirement to make 

 timber available in a timely fashion. Delays at every step of the timber-delivery process 

 are now the rule rather than the exception. During calendar year 1993, the Forest 

 Service released only 45 million board feet (MMBF) of new timber to KPC (147.5 MMBF 

 below the contract standard). In calendar year 1994. the Forest Service released 176 

 MMBF to KPC, but 40 MMBF was held up by an Injunction in litigation brought by the 

 Sierra Club Legal Defense Fund. Shortly after the Forest Service canceled Alaska Pulp's 

 contract in April 1994, it presented KPC with a revised timber release schedule. The 

 Forest Service agciin revised the KPC timber offering schedule a year later. These 

 changes are causing major problems for our operations. We have been forced from our 

 Primary Sale Area, and the planned release volume has been substantially below that 

 called for in the contract. 



New harvest restrictions imposed since the passage of TTRA have slowed and 

 disrupted our rate of harvest. It now takes us at least an additional year to build access 

 roads and harvest the timber on a typical offering. The pipeline of timber made 

 aveiilable has averaged far less than that mandated by the contract. As a result of this 

 failure by the Forest Service to meet its contractual obligations, we have experienced 



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