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expense, and the "450" timber supply goal threatens key fish and wildlife 

 habitat and subsistence use areas. 



At the very foundation of this impossible situation are the two 

 50-year timber contracts held by Alaska Pulp Corporation (APC) in Sitka and 

 Ketchikan Pulp Company (KPC) . ANILCA Sec. 705(a) has served to exacerbate the 

 problems created by these contracts. 



THE TONGASS TIMBER SUPPLY FUND IS ECONOMICALLY UNSOUND . From full 

 implementation of the Tongass Timber Supply Fund in FY 1982 until 1988, 

 expenditures for the Tongass timber program have amounted to $386 million. 

 This expenditure includes the Tongass Timber Supply Fund plus other monies for 

 road building and timber management. Including stumpage fees and all other 

 money the Forest Service claims as receipts, the return to the federal 

 Treasury amounted to only $32 million in this period. This is a gap of $354 

 million between expenditures and receipts. In other words, the Tongass timber 

 program has cost American taxpayers an average of $50 million a year since the 

 full implementation of ANILCA. 



TONGASS TIMBER PROGRAM -- TOTAL EXPENDITURES AND RECEIPTS 



receipts gap 



$21,622,763 $60,521,237 



5,365,915 47,854,085 



4,063.188 46,526,812 



209,231 48,263,769 



1,967,239 51,113,761 



-2,033,575 58,070,575 



1,232,671 41,225,329 



TOTAL $386,003,000 $32,427,432 $353,575,568 



AVERAGE GAP BETWEEN EXPENDITURES AND RECEIPTS PER YEAR: $50,510,795. 



