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PRICING OF STUMPAGE 



Stumpage appraisal values for every sale of timber from the 

 Tongass National Forest are determined in the identical manner, 

 using the same Forest Service handbook procedures and data. 



Many factors influence the price of stumpage paid on 

 individual timber sales, including supply, demand, quality of 

 timber, utilization standards, location, physical factors, 

 volume per acre, cost of access and facilities, etc. The 

 Forest Service, in materials previously submitted to the House 

 Committee on the Interior, stated the following: 



The appraisal method and data does not 

 differ between the two types of sales. Both 

 use the same appraisal process and the most 

 recent selling price and cost data available 

 at the time of the appraisal. Short-term 

 sales are generally of better quality, 

 contain a greater proportion of higher value 

 species and have less difficult access, camp 

 and road requirements (emphasis added) . 



Later in the same submission, the Forest Service states; 



It must be remembered that the long-term 

 sales were sold with much different 

 requirements and financial responsibilities 

 than are short-term sales. First, the 

 holders of the long-term sales were required 

 to build and continue operation of a pulp 

 mill. In addition, they must meet maximum 

 and minimum cutting schedules, as well as 

 face uncertain harvest areas and logging 

 requirements in future rate periods. The 

 price set through the rate redetermination 

 process cannot be refused such as in the 

 case of a short-term sale bidder. The small 

 sale operator has the flexibility of 

 choosing the sales on which to bid, and can 

 select those which appear to provide a 

 desired economic return at the price bid. 



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