198 



First, these are not long term contracts 

 anymore - there is only 15 years left on one 

 contract and 22 years on the other; 



Second, these contracts and the related pulp 

 mills are the foundation to the industry 

 today. They are essential because 50% of the 

 timber stands is over mature timber suitable 

 only for pulping; and they provide a market 

 for the pulp logs from the independent sawmill 

 operators and private Native landowners. They 

 provide a market for chips from sawmilling 

 operations. 



Third, cancellation of the contracts obviously 

 would cost the taxpayer hundreds of millions 

 of dollars. The proponents of cancellation 

 have not explained to you the full extent of 

 the government's exposure. While the Alaska 

 Loggers Association does not know the full 

 extent of this exposure, clearly it would cost 

 in the hundreds of millions of dollars to 

 purchase the rights and pay damages for the 

 mills of these contracts. This says nothing 

 about the indirect cost to the government of 



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