271 



Section 2 (c) (6) needs to set a reasonable time period for conversion or replacement of 

 the pulp mill if the company elects to do so. It should also specify what activities under the 

 contract are permitted during the conversion or replacement period. 



Finally, KPC has a number of outstanding and potential claims against the Government 

 arising from past contract operations and the Tongass Timber Reform Act. I believe it is 

 appropriate to condition the contract extension on the waiver of these claims, at least as they may 

 accrue from future contract operations. 



Continued operation of a pulp mill or other facility to permit economic utilization of 

 utility logs and low quality sawlogs is essential if the timber resource on the Tongass is to 

 continue to contribute to employment and the economic well-being of the communities in 

 southeast Alaska. Please let me know if I can be of further assistance. 



Sincerely, 



Geori 



