Exhibit 10.7.5





Exhibit 10.7.5




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.









October 10, 2006




Western Forest Products Inc.

3rd Floor, 435 Trunk Road

Duncan, British Columbia

V9L 2P9




Attention: Mr. Duncan Kerr




Dear Sirs:



Chip and Sawlog Supply Agreement




We understand that Western wishes to restart the operations of its Saltair sawmill, permanently
close the former Cascadia New Westminster Division and then supply chips from the Saltair sawmill
to Harmac Pacific to replace chips that were previously supplied to Harmac Pacific from the New
Westminster Division.



Under the Chip and Sawlog Supply Agreement dated the 8th day of September, 1980 (as
amended to the date of this letter) now between Catalyst Paper and Western, all Chips produced at
Western’s Ladysmith, Cowichan Bay, Saltair and Nanaimo mills (“Designated Mills”) are delivered to
Catalyst. Catalyst is entitled to an annual commitment of (***) Volumetric Units of Chips from the
Designated Mills and the volume of Chips in excess of the annual commitment is delivered back to
Western.



As long as Western meets its annual volume commitment to Catalyst from the Designated Mills under
the Chip and Sawlog Supply Agreement, Western would be able to use the equivalent volume of Chips
from the Designated Mills in excess of the Catalyst annual commitment to sell to others, including
Harmac Pacific. As a result we don’t believe it necessary to make any changes to the Chip and
Sawlog Supply Agreement at this point.



Given the expectation that there will be an increased volume of Chips to be delivered back to
Western under the Chip and Sawlog Agreement, we think it would be useful to clarify the delivery
procedure for those Chips as follows:




	 	1.	 	Except as provided in paragraph 2, Chips will be delivered back to Western by
delivery of the Chips by barge at a loading facility per current practice. Delivery will
occur, and title to the Chips will transfer to Western, on the earlier of (i) when the
towing agent’s Master has placed a line aboard a barge fully loaded, trimmed and made
ready for towing, and (ii) 48 hours after Catalyst notifies Western or the towing agent
that the loaded barge is ready for towing. Western will be responsible for paying all
barge hire and other transportation costs associated with transporting Chips from the
loading facility.





 


 









 











	 	2.	 	If the truck unloading facilities at the Crofton pulp mill experience difficulties in
handling the truck volume due to mechanical breakdown or other reasons,
Catalyst and Western will work together in an effort to deal with that difficulty. In
order to do so, Catalyst may, where Catalyst and Western agree, deliver Chips back to
Western by directing Chips that would otherwise be delivered to Catalyst from the
Designated Mills to third parties specified by Western. Since those Chips will not be
delivered to Catalyst, Catalyst will not be responsible for paying the purchase price or
trucking allowance associated with such Chips.







	 	3.	 	Chips delivered back to Western will be in the same proportion of quality and species
as the Chips delivered to Catalyst by Western under the Chip and Sawlog Supply Agreement.







	 	4.	 	Payment for Chips delivered to Catalyst in any period will be made by Catalyst at the
price payable for those Chips under the Chip and Sawlog Supply Agreement after setting off
the amount payable by Western for Chips delivered back to Western in that period.






Terms used in this letter which are defined in the Chip and Sawlog Supply Agreement have
corresponding meanings. The Chip and Sawlog Supply Agreement, as amended to the date of this
letter, remains in full force and effect.



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



Yours very truly,




CATALYST PAPER CORPORATION

as managing partner for and on behalf of

CATALYST PAPER




	 	 	 	 	 
	Per:
	 	 	 	 
	 

	 	 

Brian Nordman

Vice-President, Fibre Supply
	 	 






Acknowledged and agreed this
 _____ 
day of
 _____ 
October, 2006



	 	 	 	 	 
	WESTERN FOREST PRODUCTS INC.
 	 	 
	Per:
	 	 	 	 
	 

	 	 

	 	 







 


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