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Conversion or Replacement 



This provision is intended to clarify KPC's right to accomplish the pulpwood 

 processing and related employment goals with a more competitive and sustainable 

 facility should that opportunity present itself in the future. Section 2(c)(6) of this 

 legislation would make a clear congressional statement in support of allowing full and 

 state-of-the-art manufacturing processes on the Tongass National Forest. 



Unilateral Termination 



Our bilateral contract with the Forest Service contained no clause dealing with 

 unilateral contract termination at the whim of the Forest Service. Any right to 

 terminate was governed by federal common law and, if invoked, would be dependent 

 on the peuticulcu- facts eind circumstances involved. TTRA did nol direct the Forest 

 Service to include a unilateral termination clause, but in drafting the Unilateral Terms 

 the Forest Service included a unilateral termination clause (Section B0.7). Section 

 2(c)(7) of this legislation would correct this overreaching and return the contract to its 

 origincil status while maintaining consistency with TTRA. 



KPC's long-term sale is not a federal procurement contract; hence there is no 

 need for a clause paralleling the familiar termination-for-convenience-of-the-govemment 

 clause in typical government contracting. While the Forest Service since the 1970's has 

 included language in stcindard timber sales reserving the right to cancel for 

 environmental reasons, no such reservation is necessary here because of the particular 



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