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PR0VI3IONS OF THE KPC CONTPA CT WITH THP; UNITKn STATFg 



The KPC Contract with the United States has been 

 mischaracterized at times during recent discussions about 

 pending legislation affecting the Tongass National Forest. A 

 copy of the current agreement is available and should be 

 reviewed closely. The following comments are accurate as to 

 the KPC agreement itself. 



VOLUME REOUIREMENT.q 



The KPC Contract provides, both in the Preamble and in 

 Section 1, that the Government will provide KPC no less than 

 1.5 billion cubic feet (or 8.25 billion board feet) of timber 

 from designated areas of the Tongass National Forest during the 

 initial 50-year period of the contract. The designated sale 

 area, also called the primary area, is located generally on the 

 northern half of Prince of Wales Island and the northwest 

 corner of Revilla Island in Southeast Alaska. Provision is 

 made in Section 1(a) of the Contract for additional areas 

 (called contingency areas), if the requisite volume is not 

 found in the primary area. Section 1(e) of the Contract gives 

 the Regional Forester the right to sell two percent of the 

 volume in any value comparison unit (VCU) in the primary sale 

 area to others for ultimate use in Southeast Alaska, if such 

 sale will not materially interfere with the operations of KPC. 



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