574 



Mr. Metcalf. Not that is documented. 



Senator Wirth. Let me ask you a final question that relates to 

 what I gather is called residual. The question goes something like 

 this, and I do not understand this and I would like you to help me 

 out on it. If a timber company has or agrees to a sale with the 

 Forest Service, say timber of 1,000 acres only the timber is 750 

 acres, the remainder is 250 acres or, to put it another way, if a 

 company agreed with the Forest Service to cut 100,000 board feet 

 and only cut 75,000 board feet what happens to that residual, that 

 residual of 250 acres or that residual of 25,000 board feet of timber? 



Mr. Metcalf. I am not exactly sure. It would depend on the spe- 

 cific contract but a lot of that is — well, the term is "carry-over. ' 



Senator Wirth. That is called carryover. Who owns that carry- 

 over? 



Mr. Metcalf. I am not exactly sure. 



Senator Wirth. Do most contracts that the Forest Service makes 

 to these companies deal with the carry-over issue or is it not specif- 

 ically dealt with? 



Mr. Metcalf. I do not know, sir. 



Senator Wirth. It seems to me that we might be heading in one 

 direction with a piece of legislation and then could find that there 

 is an enormous bank of carry-over residual out here where compa- 

 nies could come around and say, "Hey, we have all of this that we 

 did not cut up," but I do not know. I guess one of our jobs is to say 

 "What if." What is in the pipeline out there? 



Well, we can ask the staff to present that to the Forest Service. I 

 think that would be a very interesting question. Do either of you 

 have any final comments you would like to make? 



Mr. Sever. Yes, I would like to bring a thought that one of the 

 previous panel members made as far as the issue of 12(k) in the 

 long term contract. That is the local hiring provision in the APC 

 long term contract. He said that they have been called on that 

 many times and met the test. What I would like to do, I would like 

 to read you an excerpt of a letter on information I sent to Ken Rob- 

 erts, the Forest Supervisor of Region 10, U.S. Forest Service. What 

 I would like to read is two of the questions that I asked him and 

 his reply to my questions. 



My question was, "What efforts were made by APC and its affili- 

 ates, subsidiaries, or subcontractors to recruit individuals employed 

 in the conduct of logging operations, mills, and the manufacturing 

 process conducted under the contract of record in southeast 

 Alaska?" His reply was, "There is no Forest Service documentation 

 showing the effort APC or its affiliates made to recruit southeast 

 Alaska residents by use of newspaper advertisements, radio an- 

 nouncements, or Alaska job services." 



My next question was, "Was there any reason it made it imprac- 

 tical to recruit these employees from the residents of southeast 

 Alaska?" Mr. Roberts replied to that question, "A search of our 

 records revealed no documentation showing the reasons why APC 

 could or could not recruit employees from southeast Alaska." The 

 conclusion I arrived at here was that the questions on local hiring 

 were never asked by the Forest Service and therefore they were 

 never provided to anybody. 



Senator Wirth. Thank you. Senator Murkowski? 



