Exhibit 10.6.1






Exhibit 10.6.1




PORTIONS OF THIS EXHIBIT DENOTED WITH THREE ASTERISKS (***) HAVE BEEN

OMITTED AND WILL BE SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT

WITH THE SECURITIES AND EXCHANGE COMMISSION.




[LETTERHEAD OF CATALYST PAPER CORPORATION]




March 28, 2006




Cascadia Forest Products Ltd.

925 West Georgia Street

Vancouver, British Columbia

V6C 3L2




	 	 	 
	Attention:

	 	D. Brent Turner
	 

	 	Manager, Log Supply






Chip and Log Supply Agreement




We refer to the Chip and Log Supply Agreement made as of the 8th day of June, 1998
between MacMillan Bloedel Limited, a predecessor to Cascadia Forest Products Ltd. (“Seller”) and MB
Paper Limited, a predecessor to Catalyst Paper Corporation (“Buyer”) as amended by a letter dated
October 16, 2003.



Terms used in this letter which are defined in the Chip and Log Supply Agreement have corresponding
meanings unless the context of this letter otherwise requires or unless such terms are otherwise
defined in this letter.



We confirm our mutual agreement pursuant to Section 3.4 of the Chip and Log Supply Agreement to
replace the Formula Chip Price as the Chip Price for the period October 1, 2005 to September 30,
2007 with a pricing mechanism based on Pulp Mill Net as follows:




	(a)	 	for the purposes of this pricing mechanism “Pulp Mill Net” means, for any Quarter, the
weighted average of the gross selling price expressed in Canadian dollars on a per tonne basis
for all long fibre kraft pulp produced for sale at Buyer’s Crofton pulp and paper mill and
sold during the Quarter, after deducting all customer discounts, rebates, commissions,
freight, wharfage, handling, insurance and other similar costs that Buyer pays or allows in
order to arrive at the net selling price that Buyer receives on a per tonne basis, converted
to Canadian funds using, for each of Buyer’s fiscal months or partial fiscal months included
in the Quarter, the average of the daily exchange rate over such fiscal months of the Bank of
Canada noon rate of exchange between the Canadian dollar and the relevant currencies;







	(b)	 	for the period October 1, 2005 to September 30, 2007, the Chip Price will be determined as
follows:







	 	(i)	 	with respect to Hemlock Chips delivered during the Quarter, a price per
Volumetric Unit equal to (***) of the Pulp Mill Net for the Quarter;







	 	(ii)	 	with respect to Douglas Fir Chips delivered during the Quarter, the price in
item (i) less (***) per Volumetric Unit;





 


 









 











	 	(iii)	 	with respect to yellow Cedar Chips delivered during the Quarter, (***) of the
price in item (i); and







	 	(iv)	 	with respect to Western Red Cedar Chips delivered during the Quarter, (***) of
the price in item (i).






The parties will meet again in September, 2007 to agree to either maintain Chip pricing based on
the above mechanism or to settle a variation for the two year period commencing October 1, 2007.



This letter forms part of and is to be read together with the Chip and Log Supply Agreement. The
Chip and Log Supply Agreement, as amended by this letter, remains in full force and effect.



Please confirm your agreement with the above by signing and returning the enclosed copy of this
letter.



Yours very truly,




CATALYST PAPER CORPORATION




	 	 	 	 	 	 	 
	Per:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Confirmed and agreed this                      day of                     , 2006	 	 
	 
	 	 	 	 	 	 
	CASCADIA FOREST PRODUCTS LTD.	 	 
	 
	 	 	 	 	 	 
	Per:
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 







 


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