150 



The following chart indicates amounts harvested by KPC 

 under the Contract since its inception: 



Period (CY) Volume (MBF) 



1954-1978 (24 + years) 3,776,089 



1979-1983 (5 years) 596,720 



1984-1988 (4 years) 747.652 



TOTAL 1954-1988 5.12Q.4fil 



This clearly shows contract performance by KPC in maintaining 

 timber harvest levels. 



Thus, at the end of 1988, a total of 3,129,539 MBF remained 

 to be harvested during the next 15 years. During calendar year 

 1989, KPC expects to harvest an additional 220,000 MBF (220 

 million board feet). Utility log scale volumes are counted as 

 part of the KPC long-term sale volume. 



For administrative and management purposes, the Contract 

 term is broken into five-year periods, pursuant to Section 1(b) 

 of the Contract. Currently, at least 960,000 MBF must be 

 offered to KPC during each five-year term, or 192,000 MBF per 

 year. 



Pursuant to the Contract, the timber offered must be 

 economically viable. Given the pricing mechanism under the 

 Contract (under which KPC must pay no less than base rates for 

 timber to be harvested, even if the appraised value is lower). 



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