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and in sufficient quantity to replace what was assured under 

 the contract to allow continuation of the pulp mill. Needless 

 to say, removal of 1.7 million acres from timber production on 

 the Tongass would affect this analysis. The simple fact of the 

 matter is that no such alternative assured timber supply exists 

 for KPC. In addition to the value of "replacement timber", 

 there is strong precedent supporting the inclusion in the award 

 of just compensation of amounts intended to reflect the 

 increased costs to KPC of hauling or transporting any such 

 replacement timber to its mill and its losses due to costs KPC 

 incurred in fulfilling its contract obligations — i.e. . road 

 construction and mill construction costs. Finally, it is 

 settled law that compensation for a taking must include 

 "damages for delay in payment" — commonly measured as interest 

 — running from the date of taking (here, contract 

 cancellation) until the date the full measure of compensation 

 has been paid. 



A memorandum from our attorneys detailing the legal and 

 financial amplications of proposed legislative termination of 

 the KPC contract is available for your review. 



Neither the contract damage nor the just compensation 

 formulas take into account the additional and substantial 

 amount the government should pay workers displaced and/or 

 dislocated as a result of the negative impact contract 

 termination would have on the employment situation at the KPC 

 mill facilities. 



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