56 • Chapter 3 Kuiu Timber Sale FEIS

3.4 Issue 3 – Timber Sale Economics 

Timber purchasers and affected communities are concerned about the 

quantity, quality, frequency, and profitability of timber offered for sale 

from the Tongass National Forest. Additionally, there is a concern how 

an unstable supply affects communities through primary and 

secondary employment and support. 

Some comments that were received during the scoping period offered 

suggestions for improving overall timber harvest economics on the 

Tongass National Forest. Suggestions included: 1) meet the Forest 

Plan Allowable Sale Quantity to ensure adequate supply; 2) provide 

economic sales that allow adequate profit for both small and mediumsized businesses; 3) limit the use of helicopter yarding; 4) minimize 

the use of partial harvest; and 5) minimize road construction. 

3.4.1.1 Methods 

Data used in preparation of this analysis was gathered through field 

evaluations, GIS analysis and mapping and Region 10 approved 

models. 

NEPA Economic Analysis Tool Residual Value (NEAT_R) 

NEAT_R (Version 2.10) was used to analyze the alternatives based on 

the Residual Value Appraisal (RV) (FSH 2409.22) information 

combined with project-specific information to produce an estimate of 

net volume, costs, jobs, and relative bid value for the alternatives 

presented. At the time of this FEIS, the NEAT_R model was updated 

to reflect the new residual value appraisal system and the Limited 

Interstate Commerce Shipping policy. NEAT_R is a model designed to 

show the financial differences between alternatives to help the 

decision maker see the economic implications of the decision. 

NEAT_R is not intended to display a final appraised stumpage of an 

individual timber sale. Before a timber sale is advertised, it is 

appraised to estimate the fair market value and when a timber sale is 

offered, it is offered competitively with the contract normally awarded 

to the highest bidder. These requirements help ensure that the 

government receives a fair market value for any timber it sells. For 

further details on the NEAT_R model, see the Timber Economics 

Resource Report available in the planning record.

Road Construction Costs/Logging Costs 

The economic analysis process calculates net stumpage values from 

costs collected from current timber sale purchasers. The estimated 

stumpage value for any given sale is based on these collected costs, 

with adjustments for sale specific data. Logging costs (stump-to-truck 

3.4.1 

Introduction 
Issue 3: Timber Sale Economics 3 

Kuiu Timber Sale FEIS Chapter 3 • 57 

costs) vary by quality and quantity of timber per acre. Logging costs 

include timber falling, bucking, and yarding. The net stumpage values 

vary by volume and species composition, timber quality, silviculture 

prescriptions, logging systems, and type and amount of road 

construction.

3.4.1.2 Analysis Area 

The Kuiu Timber Sale analysis area includes approximately 46,102 

acres of land. This land is comprised of the project unit pool, along 

with all surrounding forestland that, if harvested, would logically be 

brought to the project’s road system and hauled to either Rowan Bay 

LTF or Saginaw Bay LTF. For a detailed description of the Project 

Area refer to Chapter 1, Description of the Project Area (1.6). 

Changes identified between the Draft and Final EIS have made it 

necessary to update the logging system and timber sale economics 

analysis for the Kuiu Timber Sale. These changes included the 

exclusion of MMI-4 soils from certain alternatives and within units, 

and the changes in economics (see Changes Made Between the Draft 

EIS and the Final EIS in Chapter 2). 

The changes in the economic condition have made the most significant 

impact to the economic feasibility of the alternatives analyzed for the 

Kuiu Timber Sale. In the DEIS all action alternatives were 

economically positive. While all alternatives are now economically 

negative, the relative ranking of the alternatives has not changed. 

Alternative 5 remains the most economical. 

As shown between the DEIS and the FEIS, timber markets and values 

tend to fluctuate dramatically. Because of these market fluctuations, it 

is good management to have timber volume cleared through the NEPA 

process to be available for sale when favorable markets exist. 

This section compares the costs and benefits than can be quantified in 

terms of actual dollars spent or received with the sale of any 

alternative. These costs consider the following factors: volume offered, 

logging costs, stumpage values (predicted bid per unit of measure), 

and direct employment. 

3.4.3.1 ASQ and Non-Interchangeable Components (NIC) 

The allowable sale quantity (ASQ) is the amount of timber that can be 

sold from lands suitable for timber production by decade for a 

National Forest. It is divided into two non-interchangeable 

components (NIC I and NIC II) based on economic factors. Timber 

harvest is more economic on NIC I lands than it is on NIC II lands. For 

the Project Area all of the proposed timber harvest units are on NIC I 

lands (see the Transportation section in this chapter). Refer to 

Appendix A for more information about the ASQ. 

3.4.2 

Changes 

between DEIS 

and FEIS 

3.4.3 

Environmental 

Consequences 
3 Environment and Effects

58 • Chapter 3 Kuiu Timber Sale FEIS 

3.4.3.2 Payments to the State of Alaska 

Prior to 2000, in states with national forests, 25 percent of the returns 

to the US Treasury from revenue producing activities such as timber 

sales were returned to each state for distribution to counties (or in 

Alaska, boroughs) having national forest within their boundaries. 

Those payments were commonly referred to as the 25 percent fund and 

by law were dedicated to funding schools and roads. Under that 

approach, as specific revenues from national forest lands increased or 

decreased so did the payments to states. 

In October 2000, the Secure Rural Schools and Community SelfDetermination Act was enacted to stabilize those federal payments to 

states in response to declining federal receipts from national forests. 

The legislation was originally authorized for implementation from 

2001 through 2006. In May 2007, emergency supplemental legislation 

extended the legislation for one year, for fiscal year 2007. 

Under the Secure Rural Schools legislation, payments to the state are 

not linked to actual annual revenues from national forest lands, rather 

they are based on a high 3 year historic average. As a result during the 

period 2001 through 2006, Alaska received payments of 

approximately $9 million per year, primarily for schools and roads, 

with provisions for special project funding to boroughs who decide to 

convene citizen committees, called RACs, or Resource Advisory 

Committees. 

For fiscal year 2007, payments to states continue to follow the 

direction in the Secure Rural Schools legislation. Under that approach, 

funding to states is based on a historic high 3 year average. If that 

legislation is not extended or reauthorized, payments will revert back 

to the 25 percent approach, which means funding amounts would 

increase or decrease as revenue generating activities, like timber sales, 

increase or decrease. 

3.4.3.3 Volume Estimates 

Volume calculations for this economic analysis are based on 

information from stand exams and historic timber sale cruise statistics. 

Volumes for the alternatives are displayed in thousand board feet 

(mbf) in Table 3-52 in the Timber and Vegetation section of this 

chapter. The sum of unit volumes by species is also factored into the 

economic analysis. Table 3-52 also displays the species composition in 

proposed harvest units for each action alternative. 

Based on averages for the Petersburg Ranger District, volume 

classification for the suitable and available productive forest land is 

estimated for the Project Area and is displayed in Table 3-18. 
Issue 3: Timber Sale Economics 3 

Kuiu Timber Sale FEIS Chapter 3 • 59 

Detailed explanations of the rationale for considering timber harvest in 

the Project Area and market demand for wood products is located in 

Appendix A. More information can also be found in the Forest Plan 

FEIS, Part 1 (pp. 3-248 to 3-307). 

Table 3-18. Suitable and available productive forest land strata and 

volume estimates for the Kuiu Project Area 

Volstrata Percentage Acres Sawlog 

mbf/acre

Sawlog 

mmbf 

Sawlog & 

utility 

mbf/acre 

Sawlog 

& Utility 

mmbf 

Low 2% 454 16.9 27 18.9 31 

Medium 18% 3,790 24.1 123 27.5 140 

High 78% 16,082 29.3 482 33.4 549 

Nonea 2% 382 

Total 100% 20,708 632 720 

a These acres are “holes” in the GIS layer and represent forested areas of unknown volume quality or 

small inclusions of non-forest land.

3.4.3.4 Road Construction Costs/Logging Costs 

This analysis compares estimated costs and net stumpage values for 

transporting the logs to both Rowan Bay LTF (Table 3-19) and 

Saginaw Bay LTF (Table 3-20) and estimates a relative bid value for 

each action alternative (Table 3-21). 

The differences in logging costs and the estimated bid among the 

action alternatives can be attributed to multiple factors, including: 

• Differences in species composition, volume per acre harvested, and 

timber quality, 

• Differences in harvest prescriptions, 

• Differences in yarding systems, 

• Amount of temporary road construction, 

• Differences in haul distances, and 

• Unique costs associated with the alternative. 

The towing/barging cost is appraised to the nearest production site for 

all sawlogs and utility wood. All alternatives were appraised assuming 

towing/barging to the same production site in Sawmill Cove, 

Wrangell, Alaska, which is the closest facility that could handle the 

total sale volume. Road costs include the construction of new NFS and 
3 Environment and Effects

60 • Chapter 3 Kuiu Timber Sale FEIS 

temporary roads and the reconditioning and maintenance of NFS 

roads. 

Table 3-19. NEAT_R logging costs by alternative for haul to Rowan Bay LTF 

Alternatives 

Cost Item 

Alt 1 Alt 2 Alt 3 Alt 4 Alt 5 

Stump-to-truck $ per mbf N/A $168.36 $172.90 $181.96 $171.30 

Haul, barge, tow $ per mbf N/A $126.70 $132.48 $126.96 $134.18 

Road 

Maintenance $ per mbf N/A $29.70 $20.38 $23.54 $7.41 

Unusual 

Adjustmentsa $ per mbf N/A $12.31 $11.77 $11.34 $11.37 

Road Costs $ per mbf N/A $59.94 $79.52 $49.28 $54.09 

Total $ per mbf N/A $397.01 $417.05 $393.08 $378.35 

a

 Unusual adjustments are estimates for surface replacement deposits, camp days, and camp setup costs. 

Table 3-20. NEAT_R logging costs by alternative for haul to Saginaw Bay LTF 

Alternatives 

Cost Item 

Alt 1 Alt 2 Alt 3 Alt 4 Alt 5 

Stump-to-truck $ per mbf N/A $168.36 $172.90 $181.96 $171.30 

Haul, barge, tow $ per mbf N/A $111.53 $116.52 $112.98 $119.34 

Road Maintenance $ per mbf N/A $23.23 $15.29 $19.14 $5.19 

Unusual Adjustmentsa $ per mbf N/A $12.31 $11.77 $11.34 $11.37 

Road Costs $ per mbf N/A $59.94 $79.52 $49.28 $54.09 

Total $ per mbf N/A $375.37 $396.00 $374.70 $361.29 

a Unusual adjustments are estimates for surface replacement deposits, camp days, and camp setup costs and include costs 

associated with the reconstruction of Saginaw Bay LTF. 
Issue 3: Timber Sale Economics 3 

Kuiu Timber Sale FEIS Chapter 3 • 61 

Table 3-21. Volume by alternative and expected bid to Rowan Bay and Saginaw 

Bay LTFs 

Volume Indicated Bid/MBF Expected Bid/MBF 

Alternative 

MBF NEAT_R Rowan NEAT_R Saginaw 

Alt 1 0 $0.00 $0.00 

Alt 2 9,617 $(157.99) $(136.27) 

Alt 3 15,859 $(179.99) $(158.94) 

Alt 4 33,300 $(155.11) $(136.71) 

Alt 5 31,354 $(141.28) $(126.92) 

3.4.3.5 Harvest Prescriptions 

In general, the more volume per acre removed from a stand, the lower 

the per-unit logging cost. Table 3-22 displays the acres of harvest by 

prescription for each alternative. 

Table 3-22. Acres of harvest prescriptions by alternative 

Alternative 

Harvest System 

Alt 1 Alt 2 Alt 3 Alt 4 Alt 5 

Even-aged management 

(clearcut) 0 197 409 1,025 1,208 

Two-aged management 

(clearcut with reserves) 0 175 286 128 0 

Uneven-aged management 

(single tree selection) 0 87 72 193 0 

Uneven-aged management 

(group selection) 0 19 19 41 0 

Total 0 478 786 1,387 1,208 

3.4.3.6 Logging Systems 

Three different yarding systems are proposed in the Project Area. 

Total acres by yarding system are shown in Table 3-23. Proposed 
3 Environment and Effects

62 • Chapter 3 Kuiu Timber Sale FEIS 

yarding methods for individual units are noted on the unit cards 

(Appendix B). 

Table 3-23. Acres of proposed timber harvest by yarding 

system 

Alternative 

Harvest System 

Alt 1 Alt 2 Alt 3 Alt 4 Alt 5 

Cable 0 395 751 1,092 1,059 

Shovel 0 83 35 147 149 

Helicopter 0 0 0 148 0 

Total 0 478 786 1,387 1,208 

Cable yarding 

Cable yarding systems are best suited for steep slopes and wet soils. 

Cable systems minimize soil disturbance by partially or fully 

suspending the logs over the ground. Cable yarding is not suitable for 

all silvicultural prescriptions. Cable systems can be more limited when 

compared to the other systems because a clear path is needed to pull 

the logs to the landing.

Cable yarding is most efficient with clearcut systems. Two-aged and 

uneven-aged silvicultural systems are possible, but the tower for the 

cable system needs to be moved more often, which increases costs. 

Downhill yarding with cable yarding systems require open areas to 

reduce the risk of injury to logging crews, since there is less control of 

the logs as they approach the landings. Uphill yarding gives more 

flexibility, especially if a lateral carriage is used to bring the logs from 

the sides to the middle of the corridor. Extra care is needed to protect 

the remaining trees in a partial harvest. 

Among the action alternatives, Alternative 4 proposes the most cable 

logging, followed in descending order by Alternative 5, Alternative 3, 

and Alternative 2. 

Shovel yarding 

Track mounted log loaders (shovels) have been used throughout the 

Tongass National Forest where the slope is generally less than 20 

percent. Placing slash underneath the tracks as the loader moves 

through the unit provides a mat to displace the weight of the 

equipment over a larger surface area, which minimizes the possibility 

of soil compaction. 
Issue 3: Timber Sale Economics 3 

Kuiu Timber Sale FEIS Chapter 3 • 63 

Shovel yarding is limited to roadsides. The average yarding distance 

on each side of the road has been 700 feet. Recently, however, 

distances of up to 900 feet have been shovel yarded. In many units, 

shovel yarding is used for the timber near the road and the rest of the 

unit is cable logged. Shovel logging does provide flexibility in the 

selection of trees to be harvested. Shovel yarding is the least costly 

yarding method used in this analysis. 

Among the action alternatives, Alternative 5 proposes the most shovel 

logging, followed in descending order by Alternative 4, Alternative 2, 

and Alternative 3. 

Helicopter yarding 

Helicopter yarding is the most expensive yarding method due to the 

high costs associated with operating and overhead. Many factors 

influence the economic viability of helicopter yarding. They include, 

but are not limited to: yarding distance, turn time, fuel costs, and the 

value of the timber harvested. 

Helicopter yarding can have an extreme effect on the economic 

viability of an alternative. However, higher quality timber in 

combination with short yarding distances could result in an economic 

alternative with helicopter yarding requirements. 

Helicopter yarding is best suited for units where NFS or temporary 

roads cannot be constructed to access suitable timber areas and is the 

least ground disturbing yarding method. Helicopter yarding also 

allows for partial harvest silviculture prescriptions. 

Alternative 4 is the only alternative that proposes helicopter yarding. 

3.4.3.7 Small Sales 

Maintaining a consistent small sale offering is a component of the 

Petersburg Ranger District timber sale program. Due to the distance of 

the Project Area from processors, it is unlikely individual units would 

be offered for sale. 

Small Business Administration Program 

The Forest Service and the Small Business Administration review 

market demand and supply and agree on an annual amount of volume 

to be offered to small businesses from the Tongass National Forest. 

Once the Record of Decision is signed, any changes in timber sales 

offered would be reflected in an update to the Tongass National Forest 

5-year sale schedule and the Periodic Timber Sale Announcement for 

timber sale schedules which is available upon request. All of the mills 

in Southeast Alaska currently qualify as small businesses. 
3 Environment and Effects

64 • Chapter 3 Kuiu Timber Sale FEIS 

3.4.3.8 Employment 

Any of the proposed action alternatives could generate or maintain 

employment and income in Southeast Alaska as a result of timber 

harvest, if timber is offered and sold (Table 3-24). All action 

alternatives would provide diverse opportunities, including direct and 

indirect employment. Direct jobs are logging, construction, marine 

transport, and processing. Indirect employment refers to businesses 

supporting the wood products industry. Historically, Alaska yellowcedar has been exported and it is unlikely this pattern will change in 

the near future. In March 2007 the Regional Forester approved a new 

limited interstate commerce shipping policy. Shipments will be limited 

on each sale to a maximum of 50 percent of total sawlog contract 

volume harvested of all species; including western redcedar and 

Alaska yellow-cedar, unless the Regional Forester expressly grants an 

exception in advance on case-specific unusual circumstances. 

In Southeast Alaska, sawmilling results in 4.31 annualized jobs per 

MMBF and logging results in 2.07 annualized jobs per MMBF. This 

data is based on 2000 to 2004 data and on total volume sold on the 

Tongass National Forest (Alexander 2006). The estimate of the 

sawmilling jobs was taken into account by the NEAT_R analysis 

model (Version 2.10). 

Predictably, the higher the volume of timber available and sold, the 

more jobs and income generated. The Forest Plan FEIS, which bases 

its employment figures on the Tongass-wide timber base, has indicated 

the estimated number of available jobs expected for the planning 

period. 

Table 3-24. Logging and Milling Related Employment and Income 

Alt 2 Alt 3 Alt 4 Alt 5 

A. Direct employment (Job Years) 61 100 111 198 

B. Total Direct income (Millions $) 3.39 5.60 9.95 8.54 

A = Job year (one year job = full time 12 month job equivalent) per harvest. Averages on file with 

Regional Economist. Range accounts for the interstate commerce policy. 

B = Gross income per harvest estimate. Average on file with Regional Economist. 

3.4.3.9 Administrative Project Costs 

The costs and management expenses include environmental analysis, 

sale preparation, sale administration, and engineering support. Forest 

Service cost per thousand board feet (mbf) is based on the Region 10 

average budget allocation of $48.16/mbf for analysis, $25.76/mbf for 
Issue 3: Timber Sale Economics 3 

Kuiu Timber Sale FEIS Chapter 3 • 65 

sale preparation, $10.08/mbf for sale administration, and $28.00/mbf 

for engineering support. 

Environmental Analysis 

Environmental analysis costs include field inventory and the analysis 

of data, public involvement, and the preparation of a document that 

satisfies the requirements of the National Environmental Policy Act. 

Although it is based on timber volume, the cost fluctuates more with 

the amount of area to be examined and the accessibility of that area. 

The Project Area is accessible by helicopter, floatplane or boat, and is 

located on Kuiu Island on the Petersburg Ranger District. The 

environmental analysis cost is constant based on the proposed action 

and applies to all alternatives, including the No-Action alternative. 

Sale Administration 

Sale administration costs are higher when helicopter logging is 

involved because of the increased cost of accessing the timber harvest 

for administration. Scattered and smaller harvest areas are more costly 

to visit. Alternative 4 would have higher costs than the other action 

alternatives because of the higher sale administration costs for 

helicopter yarding. Alternative 5 would be the next most costly. 

Sale Preparation 

Unit layout and cruising costs increase significantly when partial 

harvest is prescribed compared to clearcutting. The Alternatives-toclearcutting Research Study on Kupreanof Island required about eight 

times more person-days to prepare a unit that involved marking 

individual trees throughout the unit compared to a clearcut unit. 

Designation of two-acre patches took about four times longer than a 

clearcut. Accessibility to the units is another major cost factor. 

Helicopter access and steeper terrain increase sale preparation costs 

compared to areas with existing road access. 

Using these cost factors, Alternative 2 would be the least costly to 

prepare. Alternatives 3 and 5 would be more costly than 2. Alternative 

4 would be the most costly because it has the most acres of two-aged 

and uneven-aged management stands.

3.4.4.1 Financial Analysis 

Economic efficiency analysis or cost/benefit analysis is best done at a 

scale much larger than a project area. A regional scale economic 

analysis is presented in the Forest Plan FEIS Part 2, which balances 

resource uses and values for the Tongass National Forest. The 

economic analysis compares the costs and benefits of all resources, 

whether or not these costs and benefits are realized as an explicit 

3.4.4 

Direct and 

Indirect 

Effects 
3 Environment and Effects

66 • Chapter 3 Kuiu Timber Sale FEIS 

market price. This analysis considers a variety of positive and negative 

resource-related external factors, passive use, non-consumptive use, 

and opportunity costs at various scales. 

An economic efficiency analysis includes benefits and costs that are 

not easily valued through the market or exchange of money, and can 

be difficult to quantify or summarize. Often, the same impact may be 

considered a cost to some and a benefit to others, depending on 

individual values. The analysis in this document tiers to the analysis 

done in the Forest Plan for non-commodity resources. Direct effects of 

the Kuiu project for economic sectors are displayed in the previous 

tables to the extent that they are known. 

Alternative 1, No-Action, would maintain the current level of 

opportunities other than timber harvest for resource use. Those people 

interested in maintaining unroaded areas, primitive recreation 

opportunities, current levels of roaded access, and scenery would have 

the same condition in the near future as they have now. Those 

interested in using or expanding roaded recreation and access, or 

increasing wood product resource uses, would also have the same 

opportunities in the near future as they do now. 

All action alternatives would cause changes to the existing economic 

conditions. These changes are described as increases or decreases in 

opportunities, benefits, or costs. In general, alternatives with lower 

harvest levels tend to have less impact on other resources when 

compared to those with higher levels. Many of the costs are shortterm, lasting only as long as the timber sale is active. Noise, LTF 

activity, and increased traffic are examples of short-term impacts. 

Other costs have more long-term effects. Road development, visual 

changes to harvest units, increased access, and scenery changes are 

impacts that would remain after timber harvest. 

3.4.4.2 Effects common to all action alternatives 

Alternatives 2, 3, 4, and 5 were designed to satisfy the Purpose and 

Need and address the significant issues. This project is consistent with 

the management goals and desired conditions for Timber Production 

LUDs. Unit designs address specialists concerns, such as wildlife 

habitat, visual landscape, and sensitive soils. Yarding systems were 

assigned through field verification and cost considerations. The current 

export policy for the Tongass National Forest allows for the export of 

Alaskan yellow cedar and limited interstate shipments. 

In all alternatives, no NIC II ground is harvested. All action 

alternatives would include small roadside landings constructed to 

widen existing roads for log yarding and decking operations. The 

timber from all action alternatives was analyzed assuming it would be 
Issue 3: Timber Sale Economics 3 

Kuiu Timber Sale FEIS Chapter 3 • 67 

barged or rafted to Wrangell from either Rowan Bay or Saginaw Bay 

LTF. 

All action alternatives contribute to the Tongass National Forest’s 

orderly flow of timber by providing timber for sale that can be 

adjusted to coincide with the latest market conditions. 

3.4.4.3 Effects by Alternative 

Alternative 1 

No timber would be harvested. In order to meet the estimated demand 

for timber, more timber may need to be harvested elsewhere on the 

Tongass National Forest. This alternative would provide no 

opportunities for local wood products employment, and no return to 

the U.S. Treasury. There would be no small sales offered for local 

operators. There would be no effect on commercial recreation use, 

commercial fisheries, or the current level of opportunities, other than 

timber harvest, for resource use. Alternative 1 does not propose to do 

any timber harvest or road construction, so there would be no other 

costs. 

Alternative 2 

This alternative proposes to harvest 9,617 mbf using shovel and cable 

yarding systems. This alternative would harvest the lowest volume of 

the four action alternatives. 

Estimated logging costs to Rowan Bay LTF would be $397.10/mbf 

and $375.38/mbf to Saginaw Bay LTF. The predicted bid is a negative 

$157.99/mbf for Rowan Bay LTF and a negative $136.27/mbf for 

Saginaw Bay LTF. About 61 direct jobs would be maintained with this 

alternative.

Alternative 3 

This alternative proposes to harvest 15,859 mbf using shovel and cable 

yarding systems. This alternative represents the least economic 

alternative of the four action alternatives with an estimated logging 

cost to Rowan Bay LTF of $417.05/mbf and $396.00/mbf to Saginaw 

Bay LTF. 

The predicted bid is a negative $179.99/mbf for Rowan Bay LTF and a 

negative $158.94/mbf for Saginaw Bay LTF. About 100 direct jobs 

would be maintained with this alternative.

Alternative 4 

This alternative proposes to harvest 33,300 mbf (the highest volume of 

the alternatives) using shovel, cable, and helicopter yarding systems. It 
3 Environment and Effects

68 • Chapter 3 Kuiu Timber Sale FEIS 

is the only alternative that would require the use of helicopter yarding 

systems. 

Estimated logging costs to Rowan Bay LTF would be $393.10/mbf 

and $374.70/mbf to Saginaw Bay. The predicted bid is a negative 

$155.11/mbf for Rowan Bay LTF and a negative $136.71/mbf for 

Saginaw Bay LTF. About 211 direct jobs would be maintained with 

this alternative.

Alternative 5 

This alternative proposes to harvest 31,354 mbf using shovel and cable 

yarding systems. It is the only alternative that proposes clearcut 

prescription for all units and is therefore the most economical. 

Estimated logging costs to Rowan Bay LTF would be $378.35/mbf 

and $361.28/mbf to Saginaw Bay. The predicted bid is negative 

$141.28/mbf for Rowan Bay LTF and negative $126.92/mbf for 

Saginaw Bay LTF. About 198 direct jobs would be maintained with 

this alternative.

3.4.5.1 Alternative 1 

No timber would be harvested from the Project Area. Timber needed 

to meet estimated demand would have to be harvested from other areas 

on the Tongass National Forest. 

3.4.5.2 Alternatives 2, 3, 4, and 5 

These alternatives would help contribute to a stable timber industry in 

Southeast Alaska, which depends on a steady flow of economic timber 

sales in order for operators to make investments in machinery and to 

employ qualified workers. All action alternatives would contribute to 

supplying timber sales to meet market demand. Volume from the Kuiu 

Timber Sale Area, in combination with other timber sales offered on 

the Tongass National Forest, would contribute to a stable long-term 

timber supply. A 5-year Timber Sale Plan on Kuiu Island has been 

approved by the Forest Supervisor. 

Other timber sale projects on Kuiu Island include volume analyzed in 

the Crane and Rowan Mountain Timber Sales EIS (July 1998) and the 

Threemile EIS. 

3.4.5 

Cumulative 

Effects