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suitable for saw logs if the pulp mill contracts were cancelled and 

 the pulp mills ceased to exist because they did not have timber? 



Mr. Thomas. Well, presently we sell some into Canada, but we 

 like the idea of having the two pulp mills there for competition 

 reasons. It does return us a higher value on the pulp logs. 



Senator Murkowski. You sell the pulp logs wherever you can get 

 the best price? 



Mr. Thomas. Yes, sir. That, we feel, is our mandate from the 

 shareholders on profitability. 



Senator Murkowski. Where are you currently selling your pulp 

 now? 



Mr. Thomas. We have not made an obligation to sell this year. 

 There is what we call a bidding war going on between the two 

 major pulp companies, and I believe two Canadian firms, and pulp 

 is going up. I believe it was 110 to 115. We are looking at 150,000. 

 The last bid, I think, was 145. 



Senator Murkowski. If you did not have the two Alaska mills, 

 then I assume the alternatives would be to export your logs from 

 private lands to pulp mills in Canada or grind them up in chips 

 and export the chips? 



Mr. Thomas. Yes, sir. Right now we are sending them to Canada, 

 quite a bit of them. 



Senator Murkowski. But then if you were dependent on coming 

 in and bidding on public sales which require primary manufactur- 

 ing, then you could not ship those logs out of the state, could you, 

 under current law? 



Mr. Thomas. No, sir. 



Senator Murkowski. If you did not have the two pulp mulls, 

 what would you do with those logs? 



Mr. Thomas. We would have to chip them. Then, hopefully, they 

 would buy them from us like they do. 



Senator Murkowski. We do not know yet whether there is a 

 mandate against chipping and exporting our forest service. Does 

 anybody know? 



Mr. Thomas. I think you are allowed to export chips from Forest 

 Service sales. 



Senator Murkowski. I have no further questions. 



I want to thank you both for preparing this hearing and accom- 

 modating all of our witnesses, and you have been very patient. You 

 have two weeks that the record will remain open. On behalf of the 

 Subcommittee Chairman, Senator Bumpers, I want to thank all of 

 the witnesses and particularly thank our court reporter, who has 

 been very patient and wish you all a good day. 



[Whereupon, at 1:45 p.m. the hearing was adjourned.] 



[Due to the voluminous nature of the materials submitted, addi- 

 tional documents have been retained in subcommittee files.] 



