155 



Short-term sales normally occur on areas where some portion 

 of the road systems previously has been completed by a 

 long-term or other sale operator. The Forest Service has 

 concentrated preroading expenditures to benefit short-term 

 sales. Such benefits properly should be reflected in higher 

 appraisals and stumpage prices. 



A very important stumpage price difference exists due to 

 differences in utilization standards. Several years ago the 

 standards of SBA and independent timber sales were relaxed to 

 require removal only of all material in excess of 50 board 

 feet. KPC removes all material down to the earlier more rigid 

 10 board foot standard. This difference should produce a 

 difference in stumpage prices. 



A number of provisions of the KPC contract bear directly on 

 the valuation of stumpage. Notable among them are: 



Section 1(d) — Puget Sound clause; 



Section 2(a) — Initial Rates and Adjusted Rates; 



Section 2(b) 1 — Scheduled Rate Redetermination; 



Section 2(b)2 — Periodic Rate Adjustment; 



Section 2(c) — Emergency Reappraisals; 



Section 2(d) — Minimum Stumpage Rates; and 



Section 2(e) — Contract Modifications. 



Nearly all of the remaining provisions of the contract 

 ultimately have some bearing on the stumpage value. This is 

 not unlike most commercial contracts. 



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22-148 0-89-5 



