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nature of this transaction. A standard Forest Service timber sale is a sale of specifically 

 identified timber. The KPC long-term sale is not; instead, it is a sale of a quantity of 

 timber, not yet specifically identified on the ground, which can be selected from a broad 

 area. If environmental concerns arise in a particular location, selection can be steered 

 away from that area or, if timber has already been selected in that area, substitutions 

 can be made. Our mutually agreed-to contract provided ample authority and flexibility 

 for the Forest Service to address the concerns which the unilateral termination clause 

 purportedly seeks to meet. The unilateral termination clause is simply unnecessary. 

 Were the Forest Service to invoke it, the practical effect of doing so would be a 

 declaration that no timber whatsoever was to be sold from the Tongass National Forest. 

 Needless to say. Section 2(c)(7) of the legislation is important to us because we are 

 reluctant to expend $200 million only to then have the Forest Service invoke the 

 unilateral termination clause of the Unilateral Terms. 



KPC and the Environment 



Our opponents have raised the subject of our environmentcil record. It is true we 

 have had problems in the past and for those we apologize: However, KPC has new 

 management and we are excited about the future and are ready to move forward. 



I would be remiss if I did not address the many and exaggerated claims of the 

 extreme environmentalists who have expounded repeatedly concerning KPC's 

 environmental record. I have attached a detailed analysis of KPC's comprehensive 

 environmental program (see Attachment B). 



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