153 



KPC CONTRACT AMENDMENTS STATUS 



KPC's long-term contract has been modified in all respects 

 for consistency with Section 15(b) of the National Forest 

 Management Act (NFMA) . Forest Service Chief Robertson 

 confirmed this in testimony on December 10, 1987. Even prior 

 to enactment of NFMA in 1976., a number of changes similar in 

 nature to those mandated by NFMA had been made. in 1979, 

 contract sections 1(c), 1(f), 8, 10, 20(a), 20(b), 21(a), 

 21(c), and 26 were changed with specific identification by the 

 Forest Service as being NFMA-mandated. A summary and specific 

 section-by-section language changes as submitted by the Forest 

 Service on these contract modifications is attached as Exhibit 

 D. The Forest Service has made other changes such as in 

 Section 4 which further NFMA compliance but were not identified 

 as NFMA-mandated. 



Moreover, the Forest Service has, in many cases, imposed 

 change in the management and operation of KPC's contract well 

 beyond the standards and requirements of NFMA. For example, 

 our clear-cut size has averaged about 65 acres whereas the 

 standard set by NFMA is 100 acres (or larger when consistent 

 with silviculture and environmental standards). 



Important contract provisions to the Government dealing 

 with upward stumpage price adjustment and protection for 

 species variation which were negotiated into the KPC agreement 

 effective January 1, 1987, are discussed below. 



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