Exhibit 10.7.4






Exhibit 10.7.4




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 NORSKECANADA]




June 27, 2005




Western Forest Products Inc.

3rd Floor, 435 Trunk Road

Duncan, British Columbia

V9L 2P9




	 	 	 
	Attention:

	 	Mr. John Dalton
	 

	 	General Manager, Log Supply






Dear John:



Amended Chip Supply Arrangement




We refer to our letter of February 1, 2005 and Schedule of Revised Terms attached to that letter
regarding changes to the Chip, Sawdust and Hog Fuel Supply Agreements originally between British
Columbia Forest Products Limited and Doman Industries Limited now between NorskeCanada and Western
Forest Products Inc. (“Western”).



NorskeCanada is currently entitled to an annual commitment of Chips produced at Western’s
Ladysmith, Cowichan Bay and Western Lumber sawmills (Saltair and Nanaimo) as set out in the
Schedule of Revised Terms. In addition NorskeCanada has the first right to purchase all other
chips (“Surplus Chips”) produced by Western’s Ladysmith, Cowichan Bay, Duke Point, Vancouver and
Western Lumber (Saltair and Nanaimo) mills that are surplus to the needs of the Woodfibre Pulp Mill
as set out in the fifth bullet point in the Chip and Sawlog Agreement portion of the Schedule of
Revised Terms.



We understand that Western may wish to have the right to those Surplus Chips. In order for that to
occur we agree to the following further amendments to the terms and conditions of the September 8,
1980 Chip and Sawlog Agreement (as amended to the date of this letter):




	 	1.	 	the volume of Chips to be sold to NorskeCanada by Western for the period from July
29, 2005 to December 31, 2005 will be (***) Volumetric Units (i.e. based on an annual
commitment of (***) Volumetric Units for that five month period);




 


 









 











	 	2.	 	should Western give notice to NorskeCanada by December 31, 2005 that Western wishes
to terminate NorskeCanada’s right to any Chips in excess of the annual commitment of (***)
Volumetric Units, then:






	 	(a)	 	as of the date of receipt of Western’s notice, NorskeCanada will cease to
have the first right to purchase the Surplus Chips; and






	 	(b)	 	the annual commitment of Chips to be sold to NorskeCanada by Western will
continue at (***) Volumetric Units per year for the balance of the Term; and






	 	3.	 	otherwise, the annual commitment of Chips to be sold to NorskeCanada for the period
from January 1, 2006 to July 28, 2006 will be (***) Volumetric Units (i.e. based on an
annual commitment of (***) Volumetric Units for that 7 month period), (***) Volumetric
Units per year for each of the next two years after July 28, 2006 and (***) Volumetric
Units per year for the balance of the Term.





Capitalized terms used but not defined in this letter and defined in the Chip and Sawlog Agreement
have the meanings specified in that agreement. The Chip and Sawlog Agreement, as amended to the
date of this letter and as further amended by this letter, remains in full force and effect.



If the above is acceptable, please acknowledge your agreement with the above by signing and
returning the enclosed copy of this letter to us.



Yours very truly,




NORSKE SKOG CANADA LIMITED

as managing partner for and on behalf of

NORSKECANADA




	 	 	 	 	 
	Per:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Brian Nordman	 	 
	 

	 	Vice-President, Fibre Supply
	 	 






Confirmed and agreed this                      day of June, 2005




	 	 	 	 	 
	WESTERN FOREST PRODUCTS INC.	 	 
	 
	 	 	 	 
	Per:
	 	 	 	 
	 

	 	 

	 	 







 


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