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The Delegation is touting proposed legislation as a 15-year KPC contract "extension " But in 

 testimony before this Committee on May 28 and 29 in Ketchikan and Juneau, L-P CEO Mark 

 Suwyn made it clear that L-P would not be satisfied with its current contract terms, and required 

 a new contract, starting right now 



The Delegation also claims that Governor Knowles supports this bill Is the Governor here 

 supporting this bill^ The answer is no! This is not his bill, it is your bill The Governor said he 

 could support a contract "extension" but only if several conditions were met Furthermore, this 

 bill does not embody anything close to the conditions the Governor laid down in his letter 

 to L-P. 



SEACC strongly opposes this bill because it: 



• Replaces the current KPC timber contract, set to expire in 2004, with a new, 23-year 

 monopoly contract starting right now and continuing through 2019, with the 

 intention to continue in perpetuity . 



• States Congress" intent to keep KPC in business, at a profit, permanently. 



• Mandates increased clearcutting, regardless of impacts to any other Tongass 

 resource. The bills force the Forest Service to provide an average of 192 5 million board 

 feet (mmbf) yearly to KPC, and require KPC to cut it, regardless of impacts to commercial 

 and sport fishing, hunting, subsistence, tourism, recreation, fish and wildlife habitat. This 

 is 33.5 mmbf higher than KPC's 15-year average annual cut of 159 mmbf This means a 

 mandate for a total of nearly 160,000 acres of clearcuts— 130,000 football fields of 

 clearcuts, or 5,650 football fields of clearcuts a year — in the heart of the world's most 

 intact remaining temperate rainforest This totals a line of football-field-sized clearcuts 

 from Ketchikan to Washington, DC —and back This would severely damage key fish and 

 wildlife areas important to Ketchikan residents and other Alaskans— Cleveland Peninsula, 

 Honker Divide, East Kuiu, Port Houghton, Poison Cove, and other areas. 



• Allows L-P to shut the pulp mill down, and replace it with a difTerent facility (if the 

 facility uses pulp logs for any part of its process), even if the new facility provides 

 fewer jobs. This would undermine the federal government's basic interest in the 50-year 

 contract, which is the provision of local jobs A basic premise for this bill is L-P's 

 claim that it must have time to amortize the costs of adding pollution upgrades and 

 improvements to the pulp mill. But in fact, the bill would allow L-P to shut the pulp 

 mill down. 



• Guarantee that no matter what kind of mill KPC decides to run, the Forest Service 

 must provide KPC timber at a rate that does not place the company at a 

 "competitive disadvantage" to a similar mill in the Pacific Northwest. 



