176 



administration of these and other sales cost the US Treasury over $50 million a year. At the same 

 time, the timber program threatened many Tongass special fish, wildlife and recreation areas 



The Tongass Reform Law replaced this unwise and costly mandate with a flexible instruction 

 authorizing the Forest Service to sell timber in response to market demand, but only to the extent 

 consistent with the National Forest Management Act and all other applicable forest management 

 laws, and only "to the extent consistent with providing for the multiple use and sustained yield of 

 all renewable forest resources "5— including fish and wildlife and the commercial, sport, and 

 subsistence uses thereof 



Your bill would turn back the clock, and reinstate inflexible, unnecessary and costly logging 

 mandates It would also institutionalize this mandate as part of the Tongass Land Management 

 Plan This contractual logging requirement will require the Forest Service to emphasize satisfying 

 KPC's long-term contract over other multiple uses of the Tongass and over the sustainable 

 management offish and wildlife, hunting, sport and commercial fishing, and subsistence. 



Section 301. Section 301 of the Tongass Reform Law modified the KPC long-term contract 

 Congress unambiguously expressed its intent behind imposing these unilateral modifications to the 

 contracts in Sec 301(b)(1): 



[I]t is in the national interest to modify the [long-term contracts] in order to assure that 

 valuable public resources in the Tongass National Forest are protected and wisely 

 managed Modification of the long-term timber sale contracts will enhance the balanced 

 use of resources on the forest and promote fair competition within the southeast Alaska 

 timber industry 



These unilateral modifications, which your bill seeks to roll back, were based upon 

 recommendations from the Forest Service's own internal review team following their investigation 

 into the 1981 antitrust scandal— in which KPC was convicted of utilizing its contractual 

 advantages to monopolize the Tongass timber industry Thus, your bill rewards a monopoly 

 for monopolizing the industry and illegally driving others out of business. 



Your bill effectively repeals (among other TTRA subsections): 



TTRA Sec 301(c)(1), in which Congress sought to modify the long-term contracts "to resemble, 

 to the greatest possible degree, short-term, independent sales " (TTRA Conference Report at 

 18 ) By reinstating 5-year plans and other special considerations for KPC, S 1877 again makes 

 two classes of citizen in the Tongass timber industry and harms the interests of independent 

 timber operators 



TTRA Sec. 301(c)(3) . in which Congress sought to end the "back-log" and "pick-and-choose" 

 abuses under the 50-year contracts As noted in the Conference Report (at 18), this provision 



'Tongass Timt)er Reform Act Sec 101. 

 ■•Tongass Timber Reform Act Conference Report. 



