**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**FORM      10-K**

**For      the fiscal year ended October 31, 2005 **

** **

**Longview      Fibre Company**

| **Washington**                                                                                | **91-0298760**                     |
|-----------------------------------------------------------------------------------------------|------------------------------------|
| (State                or other jurisdiction of                                                | (I.R.S.                Employer    |
| incorporation                or organization)                                                 | Identification                No.) |
|                                                                                          |                               |
| **300                Fibre Way, Longview, Washington**                                        | **98632**                          |
| (Address                of principal executive offices)                                       | (Zip                Code)          |
|                                                                                          |                               |
| **(360)                425-1550**                                                             |
| (Registrant's                telephone number, including area code)                           |
|                                                                                          |
| **Securities                registered pursuant to Section 12(b) of the                Act:** |

| Title                of each class                | Name                of each exchange on which registered |
|---------------------------------------------------|----------------------------------------------------------|
| Common                Stock, $1.50 Ascribed Value | New                York Stock Exchange                   |
| Rights                to purchase Common Stock    | New                York Stock Exchange                   |
|                                              |                                                     |

**Securities      registered pursuant to Section 12(g) of the Act:**

**None**

----

----

| **Longview                Fibre Company** |
|-------------------------------------------|
| **FORM                10-K**              |
| **TABLE                OF CONTENTS**      |
|                                      |   |   |
|                                      |   |   |
| **PART                1**                 |   |   |
| Item                1                     | Business | 4 |
| Item                1A                    | Risk                Factors | 12 |
| Item                1B                    | Unresolved                Staff Comments | 12 |
| Item                2                | Properties | 13 |
| Item                3                     | Legal                Proceedings | 14 |
| Item                4                     | Submission                of Matters to a Vote of Security Holders | 14 |
|                                      | Executive                Officers of the Registrant | 14 |
|                                      |   |   |
| **PART                II**                |   |   |
| Item                5                     | Market                for Registrant's Common Equity, Related |   |
|                                      | Stockholder                Matters and Issuer Purchases of Equity |   |
|                                      | Securities | 16 |
| Item                6                     | Selected                Financial Data | 17 |
| Item                7                     | Management's                Discussion and Analysis of Financial |   |
|                                      | Condition                and Results of Operation | 18 |
|                                      | Critical                Accounting Policies | 30 |
|                                      | Forward-Looking                Statements | 31 |
|                                      | Risk                Factors | 32 |
| Item                7A                    | Quantitative                and Qualitative Disclosures About |   |
|                                      | Market                Risk | 42 |
| Item                8                     | Financial                Statements and Supplementary Data | 43 |
|                                      | Quarterly                Financial Data | 57 |
| Item                9                     | Changes                in and Disagreements With Accountants on |   |
|                                      | Accounting                and Financial Disclosure | 58 |
| Item                9A                    | Controls                and Procedures | 58 |
| Item                9B                    | Other                Information | 61 |
|                                      |   |   |
| **PART                III**               |   |   |
| Item                10                    | Directors                and Executive Officers of the Registrant | 61 |
| Item                11                    | Executive                Compensation | 62 |
| Item                12                    | Security                Ownership of Certain Beneficial Owners and |   |
|                                      | Management                and Related Stockholder Matters | 62 |
| Item                13                    | Certain                Relationships and Related Transactions | 62 |
| Item                14                    | Principal                Accountant Fees and Services | 62 |
|                                      |   |   |
| **PART                IV**                |   |   |
| Item                15                    | Exhibits                and Financial Statement Schedules | 62 |
|                                      |   |   |
|                                      | SIGNATURES | 63 |
|                                      | INDEX                OF EXHIBITS | 64 |

----

**PART      I**

*This        Annual Report on Form 10-K contains forward-looking statements. Forward-looking        statements in some cases can be identified by the use of words such as “may,”“will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,”“anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,”“would,” “project,” “predict,” “continue,” “plan,” “believe,” “propose” or other        similar words or expressions. Forward-looking statements are based on certain        assumptions or estimates, discuss future expectations, describe future plans        and        strategies, contain projections of results of operations or of financial        condition or state other forward-looking information. Our ability to predict        results or the actual effect of future plans or strategies is inherently        uncertain. Although we believe that the expectations reflected in such        forward-looking statements are based on reasonable assumptions, actual results        and performance could differ materially from those set forth in the        forward-looking statements. See Item 7, “Management's Discussion and Analysis of        Financial Condition and Results of Operation—Forward-Looking        Statements" for a list of some factors that could have a material adverse        effect on our operations and future prospects or that could cause events        or circumstances to differ from the forward-looking        statements.*

*When        considering forward-looking statements, you should also keep in mind the        risk        factors and other cautionary statements and factors noted throughout this        Annual        Report on Form 10-K that could cause our actual results to differ significantly        from those contained in any forward-looking statements. Readers are cautioned        not to place undue reliance on any of these forward-looking statements, which        reflect our management’s views as of the date of this Annual Report on Form        10-K. We cannot guarantee future results, levels of activity, performance        or        achievements. Except to the extent required by law, we do not undertake any        obligation to update any of the forward-looking statements contained in this        Annual Report on Form 10-K.*

***Item      1. Business.***

**General**

----

**Business        Segments**

|                                |   | 2005 | 2004 | 2003 |
|-------------------------------------|--------|------|------|------|
| Timber                              |   | 21%  | 23%  | 21%  |
| Paper                and Paperboard |   | 29%  | 27%  | 26%  |
| Converted                Products   |   | 50%  | 50%  | 53%  |

**Timber**

**Timberlands.        **

**Timber        Resource Management.**

----

**Sales        and Customers.**

**Paper        and Paperboard**

----

**Manufacturing.**

**Raw        Materials and Suppliers.**
* *

----

**Sales        and Customers. **

**Converted        Products**

**Manufacturing**
**.        **

----

**Raw        Material Sources and Supply. **

**Sales        and Customers. **

**Energy**

**Competition**

----

| Segments                                |   | Principal                Competitors           |
|-----------------------------------------|--------|------------------------------------------------|
| Timber                                  |   | Weyerhaeuser                Corporation        |
|                                    |   | Guistina                                       |
|                                    |   | Hancock                                        |
|                                    |   | Campbell                Group Managed Holdings |
|                                    |   |                                           |
| Paper                and Paperboard     |   |                                           |
| Paper                                   |   | International                Paper             |
|                                    |   | Eurocan                                        |
|                                    |   | Canadian                Forest Products        |
|                                    |   | Georgia-Pacific                                |
|                                    |   | Smurfit-Stone                                  |
|                                    |   | Tolko                                          |
|                                    |   | Cascades                                       |
|                                    |   | Carter,                Holt, Harvey            |
|                                    |   |                                           |
| Paperboard                              |   | Smurfit-Stone                                  |
|                                    |   | Georgia-Pacific                                |
|                                    |   | Weyerhaeuser                Corporation        |
|                                    |   | International                Paper             |
|                                    |   | Temple-Inland                                  |
|                                    |   |                                           |
|                                    |   |                                           |
| Converted                Products  |   | Smurfit-Stone                                  |
|                                    |   | Georgia-Pacific                                |
|                                    |   | Weyerhaeuser                Corporation        |
|                                    |   | International                Paper             |
|                                    |   | PCA                                            |
|                                    |   | Temple                Inland                   |
|                                    |   | Green                Bay Packaging             |

**Seasonality**

**Regulation**

----

**Timberlands**

**Endangered      Species.**

**Cluster      Rule.**

**Air      Quality.**
* *

**Water      Quality and Wastewater.**

**Fiscal      Year 2006 Environmental Expenditures for Mill Operations**

**Timber      Exports.**

----

**Energy.      **

**Employees**

**Available      Information**

| ·   | Code                of Ethics for our CEO and financial                officers; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | Code                of Business Conduct and Ethics; |
|--------------------|-----------------------------------------------------|

| ·   | Corporate                Governance Guidelines; and |
|--------------------|-----------------------------------------------------|

| ·   | our                Executive Committee, Audit Committee, Nominating/Governance Committee                and                Compensation Committee charters. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Item      1A. Risk Factors.***

***Item      1B. Unresolved Staff Comments.***

----

**Item      2. Properties**

|                                                                              |        |                       | **Building** |
|-----------------------------------------------------------------------------------|-------------|----------------------------|--------------|
|                                                                              | **Approx.** | **Approx.**                | **Leased/**  |
| **Production                Facilities**                                          | **Acres**   | **Sq.                Ft.** | **Owned**    |
|                                                                              |        |                       |         |
| PULP,                PAPER AND PAPERBOARD PRODUCTION                              |        |                       |         |
| Longview,                Washington (a)                                           | 358         | 3,115,080                  | Owned        |
|                                                                              |        |                       |         |
| CONVERTED                PRODUCTS PRODUCTION                                      |        |                       |         |
| Amsterdam,                New York (Corrugated Containers)                        | 11          | 219,840                    | Owned        |
| Bowling                Green, Kentucky (Corrugated Containers)                    | 20          | 306,486                    | Owned        |
| Cedar                City, Utah (Corrugated Containers)(b)                        | 22          | 143,000                    | Owned        |
| Cedar                Rapids, Iowa (Corrugated Containers)                         | 21          | 388,000                    | Owned        |
| Fridley,                Minnesota (Corrugated Containers)                         | 17          | 291,000                    | Owned        |
| Grand                Forks, North Dakota (Corrugated Containers)(b)               | 27          | 85,000                     | Owned        |
| Longview,                Washington (Corrugated and Solid Fibre Containers)       | (a)         | (a)                        | Owned        |
| Milwaukee,                Wisconsin (Corrugated and Solid Fibre Containers)(b)(c) | 15          | 493,700                    | Owned        |
| Oakland,                California (Corrugated Containers)                        | 7           | 215,500                    | Owned        |
| Seattle,                Washington (Corrugated Containers)                        | 3           | 132,300                    | Owned        |
| Seward,                Nebraska (Corrugated Containers)(b)                        | 18          | 85,000                     | Owned        |
| Spanish                Fork, Utah (Corrugated Containers)                         | 25          | 519,000                    | Owned        |
| Twin                Falls, Idaho (Corrugated Containers)                          | 12          | 446,000                    | Owned        |
| West                Springfield, Massachusetts (Corrugated Containers)(b)         | 11          | 230,460                    | Owned        |
| Yakima,                Washington (Corrugated Containers)                         | 18          | 419,000                    | Owned        |
|                                                                              |        |                       |         |
| WOOD                CHIP PRODUCTION                                               |        |                       |         |
| Cle                Elum, Washington                                               | 74          | (d)                        | Owned        |
| Clarkston,                Washington                                              | 19          | (d)                        | Leased       |
| Clatskanie,                Oregon                                                 | 23          | (d)                        | Owned        |
| Kalama,                Washington                                                 | 12          | (d)                        | Leased       |
|                                                                              |        |                       |         |
| SAWMILL                                                                           |        |                       |         |
| Leavenworth,                Washington (also log sorting)                         | 69          | 125,000                    | Owned        |

| (a)   | Our                Longview facility is used for pulp, paper and paperboard production,                converted products production and as our corporate                headquarters. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Corrugated                sheet plant. |
|-----------------|----------------------------------------|

| (c)   | Solid                fiber sheet plant. |
|-----------------|-----------------------------------------|

| (d)   | Chip                production facilities do not have significant covered building space.                Buildings consist of office and shop buildings and special purpose                structures over chipping equipment. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Item        3. Legal Proceedings.***

***Item        4. Submission of Matters to a Vote of Security        Holders.***

**Executive        Officers of the Registrant**

| **Name**                        | **Age** | **Office**                                                                      | **Executive                Officer Since** |
|---------------------------------|---------|---------------------------------------------------------------------------------|--------------------------------------------|
| R.                H. Wollenberg | 52      | President,                Chief Executive Officer and Chairman of the Board     | 1996                                       |
|                            |    |                                                                            |                                       |
| R.                J. Parker     | 57      | Senior                Vice President-Production and Mill Manager                | 1994                                       |
|                            |    |                                                                            |                                       |
| K.                D. Gettman    | 57      | Senior                Vice President-Container Group                            | 2001                                       |
|                            |    |                                                                            |                                       |
| L.                J. McLaughlin | 50      | Senior                Vice President-Finance, Secretary, Treasurer and Director | 1991                                       |
|                            |    |                                                                            |                                       |
| R.                B. Arkell     | 75      | Senior                Vice President-Industrial Relations and General Counsel   | 1986                                       |
|                            |    |                                                                            |                                       |
| W.                C. Boyd       | 64      | Senior                Vice President-Timber                                     | 2004                                       |
|                            |    |                                                                            |                                       |
| F.                V. McShane    | 53      | Senior                Vice President-Supply Chain Management                    | 2004                                       |

----

**Richard        H. Wollenberg**

**President,        Chief Executive Officer and Chairman of the Board**

**Richard        J. Parker**

**Senior        Vice President-Production and Mill Manager**

**Ken        D. Gettman**

**Senior        Vice President-Container Group**

**Lisa        J. McLaughlin**

**Senior        Vice President-Finance, Secretary, Treasurer and Director**

**Robert        B. Arkell**

**Senior        Vice President-Industrial Relations and General Counsel**

**Wade        C. Boyd**

**Senior        Vice President-Timber**

**Frank        V. McShane**

**Senior        Vice President-Supply Chain Management**

----

**PART        II**

***Item        5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer        Purchases of Equity Securities.***

| Fiscal  |   | 2005   |   | 2004   |   |
|---------|--------|--------|--------|--------|--------|
| Quarter |   | High   |   | Low    |   | High |   | Low |   |
| 1st     |   | $      | 18.44  |   | $      | 14.92 |   | $ | 13.42 |   | $ | 10.12 |   |
| 2nd     |   |   | 20.00  |   |   | 15.48 |   |   | 13.96 |   |   | 10.26 |   |
| 3rd     |   |   | 23.10  |   |   | 18.11 |   |   | 14.82 |   |   | 9.98 |   |
| 4th     |   |   | 22.50  |   |   | 16.73 |   |   | 16.18 |   |   | 11.65 |   |

|    |   | 2005   |   | 2004   |   | 2003 |   |
|---------|--------|--------|--------|--------|--------|------|--------|
| January |   | $      | 0.02   |   | $      | -    |   | $ | - |   |
| April   |   |   | 0.02   |   |   | -    |   |   | 0.02 |   |
| July    |   |   | 0.02   |   |   | -    |   |   | 0.02 |   |
| October |   |   | 0.02   |   |   | 0.05 |   |   | - |   |
|    |   | $      | 0.08   |   | $      | 0.05 |   | $ | 0.04 |   |

----

***Item        6. Selected Financial Data.***

| (dollars                  in thousands except per share)                                            |   | 2005   |      | 2004   |   | 2003      |   | 2002   |      | 2001   |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|
| **STATEMENT                  OF INCOME**                                                            |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
| Net                  sales                                                                          |   | $      | 898,092   |   | $      | 831,166   |   | $      | 773,337   |   | $      | 769,281 |   | $ | 875,955 |   |
| Timber                                                                                         |   |   | 186,783   |   |   | 192,840   |   |   | 163,000   |   |   | 172,178 |   |   | 161,129 |   |
| Paper                  and paperboard                                                               |   |   | 264,733   |   |   | 225,682   |   |   | 202,549   |   |   | 174,920 |   |   | 195,765 |   |
| Converted                  products                                                                 |   |   | 446,576   |   |   | 412,644   |   |   | 407,788   |   |   | 417,451 |   |   | 441,975 |   |
| Power                                                                                               |   |   | -         |   |   | -         |   |   | -         |   |   | 4,732 |   |   | 77,086 |   |
| Cost                  of products sold, including outward freight                                   |   |   | 742,686   |   |   | 689,470   |   |   | 656,581   |   |   | 657,434 |   |   | 728,062 |   |
| Gross                  profit                                                                       |   |   | 155,406   |   |   | 141,696   |   |   | 116,756   |   |   | 111,847 |   |   | 147,893 |   |
| Selling,                  administrative and general expenses                                       |   |   | 93,559    |   |   | 82,752    |   |   | 72,154    |   |   | 71,570 |   |   | 72,146 |   |
| Loss                  on asset abandonmentoss                                                       |   |   | 9,692     |   |   | -         |   |   | -         |   |   | - |   |   | - |   |
| Operating                  profit (loss)                                                            |   |   | 52,155    |   |   | 58,944    |   |   | 44,602    |   |   | 40,277 |   |   | 75,747 |   |
| Timber                                                                                              |   |   | 84,792    |   |   | 90,039    |   |   | 64,145    |   |   | 71,212 |   |   | 65,238 |   |
| Paper                  and paperboard (a)                                                           |   |   | (11,269   | )      |   | (13,611   | )      |   | (10,780   | )      |   | (18,214 | ) |   | 2,173 |   |
| Converted                  products (a)                                                             |   |   | (21,368   | )      |   | (17,484   | )      |   | (8,763    | )      |   | (12,721 | ) |   | 8,336 |   |
| Interest                  expense                                                              |   |   | (37,044   | )      |   | (37,493   | )      |   | (43,099   | )      |   | (44,858 | ) |   | (39,626 | ) |
| Other                  income                                                                  |   |   | 1,423     |   |   | 1,450     |   |   | 7,051     |   |   | 7,914 |   |   | 1,546 |   |
| Income                  before income taxes                                                    |   |   | 16,534    |   |   | 22,901    |   |   | 8,554     |   |   | 3,333 |   |   | 37,667 |   |
| Provision                  for taxes on income                                                 |   |   | 6,180     |   |   | 9,000     |   |   | 3,200     |   |   | (1,800 | ) |   | 13,000 |   |
| Net                  income                                                                    |   |   | 10,354    |   |   | 13,901    |   |   | 5,354     |   |   | 5,133 |   |   | 24,667 |   |
|                                                                                                |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
| **PER                  SHARE**                                                                      |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
| Net                  income                                                                    |   | $      | 0.20      |   | $      | 0.27      |   | $      | 0.10      |   | $      | 0.10 |   | $ | 0.48 |   |
| Dividends                                                                                      |   |   | 0.08      |   |   | 0.05      |   |   | 0.04      |   |   | 0.03 |   |   | 0.48 |   |
| Shareholders’                  equity at year-end                                        |   |   | 8.81      |   |   | 8.69      |   |   | 8.46      |   |   | 8.40 |   |   | 8.33 |   |
| Average                  shares outstanding (thousands)                                        |   |   | 51,077    |   |   | 51,077    |   |   | 51,077    |   |   | 51,077 |   |   | 51,152 |   |
| Shares                  outstanding at year-end (thousands)                                    |   |   | 51,077    |   |   | 51,077    |   |   | 51,077    |   |   | 51,077 |   |   | 51,077 |   |
|                                                                                                |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
| **BALANCE                  SHEET DATA**                                                             |   |   |      |   |   |      |   |   |      |   |   |   |   |   |   |   |
| Total                  assets                                                                  |   | $      | 1,211,695 |   | $      | 1,270,930 |   | $      | 1,255,404 |   | $      | 1,306,442 |   | $ | 1,324,448 |   |
| Working                  capital                                                               |   |   | 83,981    |   |   | 58,266    |   |   | 40,609    |   |   | 37,116 |   |   | 38,059 |   |
| Capital                  assets                                                                |   |   | 867,954   |   |   | 922,023   |   |   | 939,107   |   |   | 989,293 |   |   | 1,025,833 |   |
| Deferred                  tax liabilities - net                                                |   |   | 210,029   |   |   | 204,783   |   |   | 195,410   |   |   | 191,742 |   |   | 184,947 |   |
| Long-term                  debt                                                                |   |   | 407,386   |   |   | 442,148   |   |   | 462,903   |   |   | 510,195 |   |   | 540,400 |   |
| Shareholders’                  equity                                                    |   |   | 449,922   |   |   | 443,654   |   |   | 432,307   |   |   | 428,996 |   |   | 425,395 |   |
| (a)                  Includes allocated results from power sales in 2002 and                  2001. |

----

| (dollars                in thousands except per share)                                                                              |   | 2005   |      | 2004   |   | 2003    |   | 2002   |    | 2001   |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|---------|--------|--------|---------|--------|--------|
| **OTHER                DATA**                                                                                                       |   |   |      |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Sales:                    Logs,                thousands of board feet                                     |   |   | 272,332   |   |   | 269,372 |   |   | 259,466 |   |   | 278,166 |   |   | 235,053 |   |
| Lumber,                thousands of board feet                                                                                      |   |   | 68,067    |   |   | 96,447  |   |   | 95,565  |   |   | 93,893 |   |   | 99,919 |   |
| Paper,                tons                                                                                                          |   |   | 326,354   |   |   | 302,429 |   |   | 280,919 |   |   | 243,946 |   |   | 251,751 |   |
| Paperboard,                tons                                                                                                     |   |   | 167,257   |   |   | 121,987 |   |   | 92,353  |   |   | 79,885 |   |   | 105,961 |   |
| Converted                products, tons                                                                                             |   |   | 543,433   |   |   | 511,923 |   |   | 505,797 |   |   | 519,652 |   |   | 535,183 |   |
| Logs,                $/thousand board feet                                                                                          |   | $      | 595       |   | $      | 566     |   | $      | 503     |   | $      | 509 |   | $ | 548 |   |
| Lumber,                $/thousand board feet                                                                                        |   |   | 364       |   |   | 419     |   |   | 340     |   |   | 327 |   |   | 323 |   |
| Paper,                $/ton FOB mill equivalent                                                                                     |   |   | 582       |   |   | 562     |   |   | 569     |   |   | 568 |   |   | 590 |   |
| Paperboard,                $/ton FOB mill equivalent                                                                                |   |   | 342       |   |   | 348     |   |   | 346     |   |   | 328 |   |   | 348 |   |
| Converted                products, $/ton                                                                                            |   |   | 822       |   |   | 806     |   |   | 806     |   |   | 803 |   |   | 826 |   |
| Primary                production, tons                                                                                        |   |   | 1,009,669 |   |   | 915,857 |   |   | 838,216 |   |   | 872,536 |   |   | 954,328 |   |
| Employees                                                                                                                      |   |   | 3,200     |   |   | 3,200   |   |   | 3,250   |   |   | 3,500 |   |   | 3,700 |   |
| Funds:                  Used                for plant and equipment                                                       |   | $      | 31,500    |   | $      | 45,796  |   | $      | 31,815  |   | $      | 40,382 |   | $ | 115,530 |   |
|                               Used for timber and timberlands |   |   | 10,180    |   |   | 24,946  |   |   | 4,970   |   |   | 3,584 |   |   | 4,101 |   |

***Item        7. Management’s Discussion and Analysis of Financial Condition and Results of        Operation.***

**Our        Business**

----

----

***The          REIT Conversion***

| ·   | a                  reduction in provision for income                  taxes; |
|--------------------|------------------------------------------------------------------------------|

| ·   | an                  increase in the number of outstanding shares of our common stock                  relative                  to prior periods as a result of the common stock portion of the                  E&P                  distribution, which increase will not be reflected in such prior                  periods                  and will therefore affect period-to-period comparisons of per-share                  financial information; and  |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an                  increase in the dividends we pay on our common stock, pursuant                  to our new                  dividend policy described under “-Liquidity and Capital Resources,”                  below. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Change        in Fiscal Year***

----

***Results        of Operations***

|                                                                                     |   | Audited                                        |    |
|------------------------------------------------------------------------------------------|--------|------------------------------------------------|---------|
|                                                                                     |   | Fiscal                  Years Ended October 31 |    |
| (thousands)                                                                              |   | 2005                                           |    | 2004 |   | 2003 |   |
| Net                  sales                                                               |   | $                                              | 898,092 |   | $ | 831,166 |   | $ | 773,337 |   |
| Timber                                                                                   |   |                                           | 186,783 |   |   | 192,840 |   |   | 163,000 |   |
| Paper                  and paperboard                                                    |   |                                           | 264,733 |   |   | 225,682 |   |   | 202,549 |   |
| Converted                  products                                                      |   |                                           | 446,576 |   |   | 412,644 |   |   | 407,788 |   |
| Cost                  of products sold                                              |   |                                           | 742,686 |   |   | 689,470 |   |   | 656,581 |   |
| Selling,                  administrative  and                  general expense |   |                                           | 93,559  |   |   | 82,752 |   |   | 72,154 |   |
| Loss                  on asset abandonment                                          |   |                                           | 9,692   |   |   | - |   |   | - |   |
| Operating                  profit (loss)                                            |   |                                           | 52,155  |   |   | 58,944 |   |   | 44,602 |   |
| Timber                                                                                   |   |                                           | 84,792  |   |   | 90,039 |   |   | 64,145 |   |
| Paper                  and paperboard                                                    |   |                                           | (11,269 | ) |   | (13,611 | ) |   | (10,780 | ) |
| Converted                  products                                                      |   |                                           | (21,368 | ) |   | (17,484 | ) |   | (8,763 | ) |
| Interest                  expense                                                   |   |                                           | (37,044 | ) |   | (37,493 | ) |   | (43,099 | ) |
| Provision                  for taxes on income                                           |   |                                           | 6,180   |   |   | 9,000 |   |   | 3,200 |   |
| Net                  income                                                         |   | $                                              | 10,354  |   | $ | 13,901 |   | $ | 5,354 |   |

**Fiscal        Year 2005 Compared to Fiscal Year 2004**

***Consolidated        Results***

**Net        sales.**

**Cost        of products sold. **

**Selling,        administrative and general expenses. **

**Loss        on asset abandonment. **

**Operating          profit.**

**Income        before income taxes.**

**Provision        for taxes on income. **

**Net        income.**
*** ***
*** ***

----

***Selected        Segment Results***

*Timber*

|                                                       |   |  Fiscal                  Years EndedOctober                  31 |    |  PercentageIncrease/(Decrease) |   |
|------------------------------------------------------------|--------|----------------------------------------------------------------------|---------|-------------------------------------|--------|
|                                                       |   | 2005                                                                 |    | 2004                                |   |
| Timber                  net sales, $ millions              |   | $                                                                    | 186.8   |                                | $      | 192.8 |   |   | (3.1) | % |
| Timber                  operating profit, $  millions |   |                                                                 | 84.8    |                                |   | 90.0 |   |   | (5.8) | % |
| Logs,                  thousands of board feet             |   |                                                                 | 272,332 |                                |   | 269,372 |   |   | 1.1 | % |
| Lumber,                  thousands of board  feet     |   |                                                                 | 68,067  |                                |   | 96,447 |   |   | (29.4) | % |
| Logs,                  $/thousand board feet               |   | $                                                                    | 595     |                                | $      | 566 |   |   | 5.1 | % |
| Lumber,                  $/thousand board feet             |   |                                                                 | 364     |                                |   | 419 |   |   | (13.1) | % |

*Paper        and Paperboard*

|                                                                          |   |  Fiscal                Years EndedOctober                31 |    |  PercentageIncrease/(Decrease) |   |
|-------------------------------------------------------------------------------|--------|------------------------------------------------------------------|---------|-------------------------------------|--------|
|                                                                          |   | 2005                                                             |    | 2004                                |   |
| Paper                and paperboard net sales,                $ millions      |   | $                                                                | 264.7   |                                | $      | 225.7 |   |   | 17.3 | % |
| Paper                and paperboard operating                loss, $ millions |   |                                                             | (11.3   | )                                   |   | (13.6 | ) |   | - |   |
| Paper,                tons                                                    |   |                                                             | 326,354 |                                |   | 302,429 |   |   | 7.9 | % |
| Paperboard,                tons                                               |   |                                                             | 167,257 |                                |   | 121,987 |   |   | 37.1 | % |
| Paper,                $/ton FOB mill equivalent                               |   | $                                                                | 582     |                                | $      | 562 |   |   | 3.6 | % |
| Paperboard,                $/ton FOB mill  equivalent                    |   |                                                             | 342     |                                |   | 348 |   |   | (1.7)% |  |

----

*Converted        Products*

|                                                                        |   |  Fiscal                Years EndedOctober                31 |    |  PercentageIncrease |   |
|-----------------------------------------------------------------------------|--------|------------------------------------------------------------------|---------|--------------------------|--------|
|                                                                        |   | 2005                                                             |    | 2004                     |   |
| Converted                products net sales, $                millions      |   | $                                                                | 446.6   |                     | $      | 412.6 |   |   | 8.2 | % |
| Converted                products operating loss,                $ millions |   |                                                             | (21.4   | )                        |   | (17.5 | ) |   | - |   |
| Converted                Products, tons                                     |   |                                                             | 543,433 |                     |   | 511,923 |   |   | 6.2 | % |
| Converted                Products, $/ton                                    |   | $                                                                | 822     |                     | $      | 806 |   |   | 2.0 | % |

**Fiscal        Year 2004 Compared to Fiscal Year 2003**

***Consolidated        Results***

**Net        sales. **

**Cost        of products sold. **

**Selling,        administrative and general expenses. **

**Operating        profit. **

**Income        before income taxes. **

**Provision        for taxes on income. **

**Net        income. **

***Selected        Segment Results***

*Timber*

|                                                     |   |  Fiscal                Years EndedOctober                31 |    |  PercentageIncrease |   |
|----------------------------------------------------------|--------|------------------------------------------------------------------|---------|--------------------------|--------|
|                                                     |   | 2004                                                             |    | 2003                     |   |
| Timber                net sales, $ millions              |   | $                                                                | 192.8   |                     | $      | 163.0 |   |   | 18.3 | % |
| Timber                operating profit, $  millions |   |                                                             | 90.0    |                     |   | 64.1 |   |   | 40.4 | % |
| Logs,                thousands of board feet             |   |                                                             | 269,372 |                     |   | 259,466 |   |   | 3.8 | % |
| Lumber,                thousands of board  feet     |   |                                                             | 96,447  |                     |   | 95,565 |   |   | 0.9 | % |
| Logs,                $/thousand board feet               |   | $                                                                | 566     |                     | $      | 503 |   |   | 12.5 | % |
| Lumber,                $/thousand board feet             |   |                                                             | 419     |                     |   | 340 |   |   | 23.2 | % |

----

*Paper        and Paperboard*

|                                                                              |   |  Fiscal                  Years EndedOctober                  31 |    |  PercentageIncrease/(Decrease) |   |
|-----------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|---------|-------------------------------------|--------|
|                                                                              |   | 2004                                                                 |    | 2003                                |   |
| Paper                  and Paperboard net sales,                  $ millions      |   | $                                                                    | 225.7   |                                | $      | 202.5 |   |   | 11.4 | % |
| Paper                  and Paperboard operating                  loss, $ millions |   |                                                                 | (13.6   | )                                   |   | (10.8 | ) |   | - |   |
| Paper,                  tons                                                      |   |                                                                 | 302,429 |                                |   | 280,919 |   |   | 7.7 | % |
| Paperboard,                  tons                                                 |   |                                                                 | 121,987 |                                |   | 92,353 |   |   | 32.1 | % |
| Paper,                  $/ton FOB mill equivalent                                 |   | $                                                                    | 562     |                                | $      | 569 |   |   | (1.2) | % |
| Paperboard,                  $/ton FOB mill equivalent                            |   |                                                                 | 348     |                                |   | 346 |   |   | 0.6 | % |

----

| Fiscal                2003 |   | Sales  |   | Tons   |   |
|----------------------------|--------|--------|--------|--------|--------|
| 1st                Quarter |   | $      | 3,613  |   |   | 7,419 |   |
| 2nd                Quarter |   |   | 3,067  |   |   | 6,478 |   |
| 3rd                Quarter |   |   | 4,128  |   |   | 8,613 |   |
| 4th                Quarter |   |   | 7,376  |   |   | 16,888 |   |
|                       |   |   |   |   |   |   |   |
| Fiscal                2004 |   |   |   |   |   |   |   |
| 1st                Quarter |   | $      | 5,029  |   |   | 12,545 |   |
| 2nd                Quarter |   |   | 3,657  |   |   | 8,359 |   |
| 3rd                Quarter |   |   | 4,138  |   |   | 8,599 |   |

*Converted      Products*

|                                                                        |   |  Fiscal                Years EndedOctober                31 |    |  PercentageIncrease |   |
|-----------------------------------------------------------------------------|--------|------------------------------------------------------------------|---------|--------------------------|--------|
|                                                                        |   | 2004                                                             |    | 2003                     |   |
| Converted                products sales, $                millions          |   | $                                                                | 412.6   |                     | $      | 407.8 |   |   | 1.2 | % |
| Converted                products operating loss,                $ millions |   |                                                             | (17.5   | )                        |   | (8.8 | ) |   | - |   |
| Converted                products, tons                                     |   |                                                             | 511,923 |                     |   | 505,798 |   |   | 1.2 | % |
| Converted                products, $/ton                                    |   | $                                                                | 806     |                     | $      | 806 |   |   | - |   |

**Liquidity        and Capital Resources**

| ·   | improvements                  to manufacturing equipment to meet environmental requirements and                  to                  continue to burn less expensive biomass                  fuel; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | costs                  associated with further implementation of our ERP;                  and |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | improvements                  to our Yakima box plant material handling system to improve throughput                  and                  reduce costs. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | new                  equipment with in-line graphics capabilities in our Yakima, Washington                  and                  Bowling Green, Kentucky box plants; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | upgrades                  to the #11 paper machine to improve the quality of our                  TEA-Kraftâ                  high-performance paper; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an                  expansion and an upgrade to our OCC recycling plant to increase                  capacity                  from approximately 800 tons per day to approximately 1,000 tons                  per day;                  and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | adding                  electrostatic precipitators on our hogged fuel boilers to continue                  to burn                  less expensive bio mass fuel and meet environmental                  requirements. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Contractual        obligations***

| Fiscal                Year                               |   | Total  |    |  2006 |   |  2007-08 |   |  2009-10 |   | 2011                & Beyond |   |
|----------------------------------------------------------|--------|--------|---------|------------|--------|---------------|--------|---------------|--------|----------------------------------|--------|
| Long-term                 debt                (a)   |   | $      | 354,000 |       | $      | 85,500        |   | $             | 24,000 |                             | $      | 230,000 |   | $ | 14,500 |   |
|                                                     |   |   |    |       |   |          |   |          |   |                             |   |   |   |   |   |   |
| Credit                 Agreement                (b) |   |   | 63,500  |       |   | 13,500        |   |          | 50,000 |                             |   | - |   |   | - |   |
|                                                     |   |   |    |       |   |          |   |          |   |                             |   |   |   |   |   |   |
| Reforestation                                            |   |   | 4,500   |       |   | 4,500         |   |          | -      |                             |   | - |   |   | - |   |
|                                                     |   |   |    |       |   |          |   |          |   |                             |   |   |   |   |   |   |
| Total                                                    |   | $      | 422,000 |       | $      | 103,500       |   | $             | 74,000 |                             | $      | 230,000 |   | $ | 14,500 |   |
|                                                     |   |   |    |       |   |          |   |          |   |                             |   |   |   |   |   |   |

| (a)   | Includes                the following amounts under senior notes prepaid on December 30,                2005:                $124.5 million (total), $85.5 million (2006), $24.0 million (2008)                and                $15.0 million (2010). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Reflects                obligations under our 2004 credit agreement, which we replaced with                a new                credit agreement on December 30, 2005, as described under “- New Credit                Agreement,” below. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**New        Credit Agreement**

| ·   | a                  $200.0 million revolving facility, including provisions for (i)                  loans that                  may be requested on an expedited basis, called swingline loans,                  in a                  maximum aggregate amount of up to $20 million and (ii) letters                  of credit                  in an aggregate undrawn face amount of up to $50 million;                  and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a                  $200.0 million term facility. |
|--------------------|--------------------------------------------------|

| ·   | base                  rate loans bear interest at a rate equal to the sum of (i) the                  higher of                  (a) the applicable prime commercial rate and (b) the applicable                  Federal                  Funds rate plus 0.50%, referred to as the alternate base rate,                  and (ii) a                  margin, referred to as the applicable margin, that varies according                  to the                  ratio of (A) our consolidated funded indebtedness to (B) our consolidated                  total capitalization; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | eurodollar                  rate loans, for which we may elect interest periods of one, two,                  three or                  six months, bear interest at a rate equal to the sum of (i) the                  applicable                  eurodollar interest rate and (ii) the applicable margin;                  and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | swingline                  loans, at the applicable Borrower’s option, bear interest at a rate equal                  to, at our option, either (i) the sum of (A) the alternate base                  rate and                  (B) the applicable margin or (ii) such other interest rate as to                  which we                  may agree with the swingline lender at the time of the                  borrowing. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 50%                  of the net cash proceeds we receive from sales of our property                  and assets                  (subject to customary exclusions);                  and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 50%                  of the net cash proceeds we receive in excess of a specified annual                  threshold amount in connection with a casualty, condemnation or                  eminent                  domain proceeding (subject to customary                  exclusions), |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 100%                  of the net cash proceeds we receive from the issuance or incurrence                  of any                  indebtedness; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 50%                  of the net cash proceeds we receive from the issuance of additional                  equity                  interests, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | from                  the closing date to but not including the date of the declaration                  of the                  E&P distribution, 75% of our consolidated net worth as of July 31,                  2005; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | from                  the date of the declaration of the E&P distribution to but not                  including the first business day after the date on which we deliver                  to the                  lenders financial statements and compliance certificates for the                  fiscal                  quarter in which the E&P distribution occurred, 75% of our                  consolidated net worth as of July 31, 2005, less the amount by                  which our                  consolidated net worth is reduced as a direct result of the declaration                  of                  the E&P distribution; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | from                  the first business day after the date on which we deliver financial                  statements and compliance certificates for the fiscal quarter in                  which the                  declaration of the E&P distribution occurred and thereafter, 75% of                  our consolidated net worth as of the last day of the fiscal quarter                  during                  which the date of the declaration of the E&P distribution                  occurred. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Other**

----

**Critical        Accounting Policies**

**Pension**

**Long-Lived        Assets**

----

**Depletion**

**Forward-Looking        Statements**

| ·   | our                  ability to achieve our strategies and the results of these                  strategies; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | actual                  log harvest levels and customer and product                  focus; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | our                  dependence on timber resources; |
|--------------------|------------------------------------------------------|

| ·   | changes                  or growth in the general domestic and foreign economy, the forest                  products                  industry*** ***or                  the specific markets into which we sell                  products; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                  ability to achieve anticipated improvements in operating results                  and                  earnings and expected*** ***cost                  reductions; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                  having sufficient resources to fund operations and meet debt payment                  obligations and*** ***capital                  expenditure requirements; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                  working capital needs, including inventory levels and raw material                  requirements; |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | unanticipated                  changes in pricing and market conditions for our products, energy                  and                  certain*** ***raw                  materials, including changes in log, paper, paperboard and converted                  products pricing and*** ***demand; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                  ability to achieve anticipated reductions in the amount of natural                  gas                  purchased from third*** ***parties; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                  ability to improve reliability and uptime of equipment, creating                  a more                  steady operation and*** ***better                  management of raw material                  purchases; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                  ability to achieve anticipated savings and improvements from various                  business*** ***improvement                  projects and programs within the expected time frames or at                  all; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | unexpected                  capital expenditures and the timing of completion and results of                  capital                  expenditure*** ***projects; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                  ability to reduce debt and prioritize the use of excess cash to                  reduce                  debt; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | expected                  sales of power; |
|--------------------|-------------------------------------------|

| ·   | possible                  effects of changes in currency exchange rates between the U.S.                  dollar and                  currencies*** ***of                  important export markets (particularly                  Japan); |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | cost                  of compliance with environmental regulations and effects of environmental                  contingencies,*** ***litigation                  and regulations on our financial condition and results of operations                  and                  our*** ***competitive                  position;*** *** |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | developments                  in the world, national, or regional economy or involving our customers                  or                  competitors affecting supply of or demand for our products, energy                  or raw                  materials, including the level of interest rates and new housing                  starts; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | implementation                  or revision of government policies affecting the environment, import                  and                  export*** ***control                  and taxes; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                  in harvest conditions or regulations effecting our timber                  operations; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | adverse                  weather conditions; |
|--------------------|----------------------------------------------|

| ·   | availability                  of excess cash to pay dividends and existence of contractual limitations                  on our ability to pay dividends; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                  need to obtain board approval of dividends and other distributions                  to our                  shareholders, which approval could be granted or withheld based                  on, among                  other things, our results of operations, cash flow and prospects                  at the                  time; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | unforeseen                  maintenance on capital assets; |
|--------------------|------------------------------------------------------------|

| ·   | unforeseen                  developments in our business; |
|--------------------|-----------------------------------------------------------|

| ·   | our                  ability to remediate material weaknesses in our internal control                  over                  financial reporting; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | adverse                  changes in the capital markets or interest rates affecting the                  cost or                  availability of*** ***financing; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | disasters                  and other unforeseen events; |
|--------------------|---------------------------------------------------------|

| ·   | potential                  changes in tax laws affecting REITs that could reduce the tax benefits                  associated with*** ***being                  a REIT; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                  occurrence of events that require a change in the timing of the                  REIT                  election; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                  actual pre-REIT earnings and profits could vary from estimates                  resulting                  in a lower or*** ***higher                  shareholder distribution; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our                  ability to satisfy complex technical rules in order to qualify                  for or                  maintain REIT status and*** ***to                  operate effectively within the limitations imposed by those rules;                  and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                  expected heightened sensitivity of our stock price to the level                  of*** ***dividends                  on our common stock. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Risk        Factors**

*You        should carefully consider the risk factors set forth below and in other reports        that we file from time to time with the Securities and Exchange Commission,        and        the other information in this Annual Report on Form 10-K. The matters discussed        in the risk factors could have a material adverse effect on our business,        financial condition and operating results and could cause the trading price        of        our common stock and other securities to decline. In connection with the        forward-looking statements that appear in this Annual Report on Form 10-K,        you        should carefully review the discussion, and the cautionary statements to        which        reference is made, under “Management’s Discussion and Analysis of Financial        Condition and Results of Operation—Forward-Looking        Statements.”*

***Cyclical        industry conditions and commodity pricing have adversely affected and may        continue to adversely affect our financial condition and results of        operations.***

----

***Our        industries are highly competitive and subject to wide price fluctuations        that        could adversely affect our results of operations.***

***Price        fluctuations in raw materials could adversely affect our ability to cost        effectively obtain the materials needed to manufacture our        products.***

***Our        operations require substantial capital and our capital resources may not        be        adequate to provide for all of our cash requirements.***

----

***We          are subject to significant environmental regulation and environmental compliance          expenditures and liabilities.***

***High        energy costs could adversely affect our results of        operations.***

----

***Changes        in the value of the U.S. dollar relative to other currencies and offshore        manufacturing could result in fluctuations in the price of and the demand        for        our products.***

***Natural        disasters or other events may cause losses to our timber holdings or limit        our        ability to harvest our timber.***

***Our        business and financial performance may be harmed by future labor disruptions        and        economically unfavorable collective bargaining        agreements.***

***Our        pulp and paper mill and all of our paper machines are located at a single        complex in Longview, Washington.***

| ·   | prolonged                  power failures; |
|--------------------|--------------------------------------------|

| ·   | a                  breakdown of our continuous pulp digesters or recovery furnaces; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | chemical                  spill or release; |
|--------------------|---------------------------------------------|

| ·   | disruption                  of raw material supply; |
|--------------------|-----------------------------------------------------|

| ·   | disruptions                  in the transportation infrastructure including railroad tracks,                  bridges,                  pipelines, tunnels and roads; or |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | fires,                  floods, earthquakes, volcanic eruption or other disasters. |
|--------------------|------------------------------------------------------------------------------------|

***Changes        in supply, caused by changes in the policies of governmental agencies, may        affect timber prices and our revenues.***

----

***Our        operating and financial performance are dependent upon key        personnel.***

***A        significant portion of the timberlands that we own and manage is concentrated        in        a limited geographic area.***

***We        have material weaknesses in our internal control over financial        reporting.***

***We        are subject to different risks than REITs in other        industries.***

***If        we fail to qualify as a REIT or fail to remain qualified as a REIT, we will        have        reduced funds available for distribution to our shareholders and our income        will        be subject to taxation at regular corporate rates.***

| ·   | we                  would not be allowed a deduction for distributions to shareholders                  in                  computing our taxable income; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we                  would be subject to federal income tax, including any applicable                  alternative minimum tax, on our taxable income at regular corporate                  rates. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Our        cash dividends are not guaranteed and may fluctuate***
***;        we could reduce or eliminate dividends on our common        stock.***

| ·   | we                  would be required to pay the tax on such gains at regular corporate                  rates; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | our                  shareholders, although required to include their proportionate                  share of                  the undistributed capital gain in income, would receive a refundable                  credit for their share of the federal income tax paid by us;                  and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                  basis of a shareholder’s stock would be increased by the amount of the                  undistributed capital gains (minus the amount of the federal income                  tax on                  capital gains paid by us which was included in income by the                  shareholder). |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***As        a REIT, we will be limited in our ability to fund dividend payments using        cash        generated through Longview TRS.***

***The        historical market price of our common shares may not be indicative of the        market        price of our commo***
***n        shares following the E&P distribution and REIT        conversion.***

***Because        the timing of the REIT conversion is not certain, we may not realize the        anticipated tax benefits from the REIT conversion effective January 1,        2006.***

----

***There        are uncertainties relating to the estimate of the E&P        distribution.***

***We        intend that the E&P distribution will be a taxable dividend, notwithstanding        any elections by shareholders to receive all or part of their portion of        the        E&P distribution in the form of stock rather than        cash.***

***The        E&P distribution could be treated for tax purposes as a nontaxable stock        dividend, which would preclude an effective distribution of        E&P.***

***The        extent of our proposed use of Longview TRS may affect the price of our common        shares relative to the share price of other REITs.***

***Our        management has never operated a REIT, and our future performance could be        impaired as a result.***

***Lack        of shareholder ownership and transfer restrictions in our articles of        incorporation may affect our ability to qualify as a REIT.***

----

***Certain        of our business activities are potentially subject to prohibited transactions        tax or corporate-level tax.***

***We        will have potential deferred and contingent tax        liabilities.***

***Legislative        or other actions affecting REITs could have a negative effect on        us.***

***An        investment in our common shares involves other tax        issues.***

*We        may face other tax liabilities as a REIT that reduce our cash        flow*

*State        tax laws may not conform to federal tax law*

*Capital        gains distributions to non-U.S. shareholders are generally subject to        withholding*

----

***Since        the total cash payable to shareholders in the E&P distribution will be        limited, a shareholder’s receipt of cash may be dependent on the election of        others.***

***Our***
** **
***inability        to obtain third party consents may have a material adverse        effect.***

***We        could lack access to funds to meet our distribution and tax obligations.***

***Complying        with REIT requirements may cause us to forego otherwise attractive        opportunities.***

***The        E&P distribution is expected to be taxable to our shareholders and could        lead to increased selling pressure on our common        stock.***

***The        tax treatment for our dividends may fluctuate and may vary among different        types        of investors, which may change their value to some        investors.***

***We        have substantial debt that could reduce the effectiveness of our        operations.***

| ·   | making                  it more difficult for us to satisfy our obligations, including                  debt                  service requirements; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | placing                  us at competitive disadvantage compared to our competitors that                  have less                  debt; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | limiting                  our ability to borrow additional amounts for working capital, capital                  expenditures and debt service                  requirements; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | limiting                  our ability to use cash flow from operations for capital expenditures,                  working capital, dividends to shareholders and other                  purposes; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increasing                  our vulnerability to general adverse economic and industry conditions;                  and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | limiting                  our ability to capitalize on business opportunities, including                  our ability                  to make strategic acquisitions, and to react to competitive pressures                  and                  adverse changes in our business, our industry or government                  regulation. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Our        indebtedness imposes restrictions on us that may adversely affect our business        operations and our ability to service our debt.***

| ·   | incur                  additional indebtedness and issue preferred                  stock; |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | pay                  dividends or make other distributions on capital                  stock; |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | repurchase                  capital stock; |
|--------------------|--------------------------------------------|

| ·   | make                  loans and investments; |
|--------------------|----------------------------------------------|

| ·   | allow                  restrictions on the ability of certain subsidiaries to make                  distributions; |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | dispose                  of assets; |
|--------------------|-------------------------------------|

| ·   | merge                  or consolidate with other entities; |
|--------------------|------------------------------------------------------------|

| ·   | enter                  new lines of business; |
|--------------------|-----------------------------------------------|

| ·   | enter                  into transactions with affiliates;                  and |
|--------------------|--------------------------------------------------------------------------------|

| ·   | create                  liens on our assets. |
|--------------------|----------------------------------------------|

***Provisions        in our organizational documents, applicable laws and debt instruments and        other        contractual arrangements could delay or prevent a takeover of us by a third        party.***

| ·   | permit                  our board of directors to issue one or more series of preferred                  stock with                  rights and preferences designated by our                  board; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | impose                  advance notice requirements for shareholder proposals and nominations                  of                  directors to be considered at shareholder                  meetings; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | divide                  our board of directors into three classes of directors serving                  staggered                  terms; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | limit                  the ability of shareholders to remove                  directors; |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | allow                  the board of directors to fill any vacancies on our                  board; |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | limit                  shareholders' ability to call special meetings of shareholders                  and to take                  action by written consent without a                  meeting; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | prohibit                  us from consummating a “significant business transaction” with any person                  who acquires 10% of our voting stock for a period of five years                  from the                  date such acquiring person makes such an acquisition unless the                  transaction or acquisition of shares is approved by a majority                  of our                  board of directors prior to the time of the                  acquisition; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | with                  certain exceptions, require an affirmative vote of two-thirds of                  our                  shareholders to approve a merger, share exchange or a sale of all                  or                  substantially all of our assets not in the ordinary course of business                  and                  provide for dissenters’ rights under several of the same                  circumstances; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | provide                  that any amendment to our articles of incorporation reducing to                  less than                  two-thirds the percentage of votes necessary to approve a merger,                  share                  exchange, sale of assets not in the ordinary course of business                  or                  dissolution is not effective unless such amendment is approved                  by                  two-thirds of all the votes entitled to vote, and this provision                  is                  protected by the same supermajority voting                  provision; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | require                  that, in many potential takeover situations, rights issued under                  our                  shareholder rights plan become exercisable to purchase our common                  stock                  and potentially other securities at a price substantially discounted                  from                  the then applicable market price;                  and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | may                  require upon specified types of change in control that we repurchase                  our                  outstanding debt securities. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Item        7A - Quantitative and Qualitative Disclosures About Market        Risk.***

----

***Item        8. Financial Statements and Supplementary Data.***

| Index                  to Consolidated Financial Statements                                                                       | Page   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|
| Audited                  Consolidated Financial Statements:                                                                       |   |
| Report                  of Independent Registered Public Accounting Firm                                                          | 43     |
| Consolidated                  Statement of Income for the three years ended October 31,                  2005                     | 46     |
| Consolidated                  Statement of Shareholders’ Equity for the three years ended October 31,                  2005 | 46     |
| Consolidated                  Balance Sheet at October 31, 2005, 2004 and 2003                                                    | 47     |
| Consolidated                  Statement of Cash Flows for the three years ended October 31,                  2005                 | 48     |
| Notes                  to Consolidated Financial Statements                                                                       | 49     |

**Financial        Statement Schedules**

**Report          of Independent Registered Public Accounting Firm**

*Internal          Control - Integrated Framework*

----

*Insufficient          personnel with appropriate accounting knowledge and training. *

*Ineffective          controls over supplies inventories*

*Ineffective          controls over workers’ compensation claims liability.*

----

*Ineffective        controls over postretirement medical benefits liability*

*Internal        Control - Integrated Framework*
*Internal        Control - Integrated Framework*

----

**CONSOLIDATED        STATEMENT OF INCOME**

|                                                              |   | Years                  Ended October 31 |    |
|-------------------------------------------------------------------|--------|-----------------------------------------|---------|
| (thousands                  except per share)                     |   |  2005                              |    | 2004 |   | 2003 |   |
| **NET                  SALES**                                    |   | $                                       | 898,092 |   | $ | 831,166 |   | $ | 773,337 |   |
| Timber                                                            |   |                                    | 186,783 |   |   | 192,840 |   |   | 163,000 |   |
| Paper                  and paperboard                             |   |                                    | 264,733 |   |   | 225,682 |   |   | 202,549 |   |
| Converted                  products                               |   |                                    | 446,576 |   |   | 412,644 |   |   | 407,788 |   |
| Cost                  of products sold, including outward freight |   |                                    | 742,686 |   |   | 689,470 |   |   | 656,581 |   |
| **GROSS                  PROFIT**                                 |   |                                    | 155,406 |   |   | 141,696 |   |   | 116,756 |   |
| Selling,                  administrative and general expenses     |   |                                    | 93,559  |   |   | 82,752 |   |   | 72,154 |   |
| Loss                  on asset abandonment (see Note 4)           |   |                                    | 9,692   |   |   | - |   |   | - |   |
| **OPERATING                  PROFIT (LOSS)**                      |   |                                    | 52,155  |   |   | 58,944 |   |   | 44,602 |   |
| Timber                                                            |   |                                    | 84,792  |   |   | 90,039 |   |   | 64,145 |   |
| Paper                  and paperboard                             |   |                                    | (11,269 | ) |   | (13,611 | ) |   | (10,780 | ) |
| Converted                  products                               |   |                                    | (21,368 | ) |   | (17,484 | ) |   | (8,763 | ) |
| Interest                  income                                  |   |                                    | 286     |   |   | 188 |   |   | 327 |   |
| Interest                  expense                                 |   |                                    | (37,044 | ) |   | (37,493 | ) |   | (43,099 | ) |
| Miscellaneous                                                     |   |                                    | 1,137   |   |   | 1,262 |   |   | 6,724 |   |
| **INCOME                  BEFORE INCOME TAXES**                   |   |                                    | 16,534  |   |   | 22,901 |   |   | 8,554 |   |
| **PROVISION                  FOR TAXES ON INCOME (see Note 8)**   |   |                                    |    |   |   |   |   |   |   |   |
| Current                                                           |   |                                    | 1,688   |   |   | 123 |   |   | (126 | ) |
| Deferred                                                          |   |                                    | 4,492   |   |   | 8,877 |   |   | 3,326 |   |
|                                                              |   |                                    | 6,180   |   |   | 9,000 |   |   | 3,200 |   |
|                                                              |   |                                    |    |   |   |   |   |   |   |   |
| **NET                  INCOME**                                   |   | $                                       | 10,354  |   | $ | 13,901 |   | $ | 5,354 |   |
| Per                  share                                        |   | $                                       | 0.20    |   | $ | 0.27 |   | $ | 0.10 |   |

**CONSOLIDATED        STATEMENT OF SHAREHOLDERS' EQUITY**

|                                                     |   |                            |   | Additional |   |     |   | Total               |   |
|----------------------------------------------------------|--------|---------------------------------|--------|------------|--------|----------|--------|---------------------|--------|
|                                                     |   | Common                    Stock |   | Paid-In    |   | Retained |   | Shareholder’s |   |
| (thousands                    except per share)          |   | Shares                          |   | Amounts    |   | Capital  |   | Earnings            |   | Equity |   |
| **Balance                    at October 31, 2002**       |   |                            | 51,077 |       | $      | 76,615   |   | $                   | 3,306  |   | $ | 349,075 |   | $ | 428,996 |   |
|                                                     |   |                            |   |       |   |     |   |                |   |   |   |   |   |   |   |   |
| Net                    income                            |   |                            | -      |       |   | -        |   |                | -      |   |   | 5,354 |   |   | 5,354 |   |
| Cash                    dividends:                       |   |                            |   |       |   |     |   |                |   |   |   |   |   |   |   |   |
| Common                    stock ($0.04 per share)        |   |                            | -      |       |   | -        |   |                | -      |   |   | (2,043 | ) |   | (2,043 | ) |
| **Balance                    at October 31, 2003**       |   |                            | 51,077 |       |   | 76,615   |   |                | 3,306  |   |   | 352,386 |   |   | 432,307 |   |
|                                                     |   |                            |   |       |   |     |   |                |   |   |   |   |   |   |   |   |
| Net                    income                            |   |                            | -      |       |   | -        |   |                | -      |   |   | 13,901 |   |   | 13,901 |   |
| Cash                    dividends:                       |   |                            |   |       |   |     |   |                |   |   |   |   |   |   |   |   |
| Common                    stock ($0.05 per share)        |   |                            | -      |       |   | -        |   |                | -      |   |   | (2,554 | ) |   | (2,554 | ) |
| **Balance                    at October 31, 2004**  |   |                            | 51,077 |       |   | 76,615   |   |                | 3,306  |   |   | 363,733 |   |   | 443,654 |   |
|                                                     |   |                            |   |       |   |     |   |                |   |   |   |   |   |   |   |   |
| Net                    income                            |   |                            | -      |       |   | -        |   |                | -      |   |   | 10,354 |   |   | 10,354 |   |
| Cash                    dividends:                       |   |                            |   |       |   |     |   |                |   |   |   |   |   |   |   |   |
| Common                    stock ($0.08 per share)        |   |                            | -      |       |   | -        |   |                | -      |   |   | (4,086 | ) |   | (4,086 | ) |
| **Balance                    at October 31, 2005**       |   |                            | 51,077 |       | $      | 76,615   |   | $                   | 3,306  |   | $ | 370,001 |   | $ | 449,922 |   |

----

**CONSOLIDATED      BALANCE SHEET**

|                                                                |   | October                31 |      |
|---------------------------------------------------------------------|--------|---------------------------|-----------|
| (dollars                in thousands except per share)              |   |  2005                |      | 2004 |   | 2003 |   |
| **ASSETS**                                                          |   |                      |      |   |   |   |   |   |   |   |
| Current                assets:                                      |   |                      |      |   |   |   |   |   |   |   |
| Accounts                and notes receivable                        |   | $                         | 106,844   |   | $ | 111,723 |   | $ | 99,754 |   |
| Allowance                for doubtful accounts                      |   |                      | 1,000     |   |   | 1,350 |   |   | 1,350 |   |
| Taxes                on income, refundable                          |   |                      | 3,931     |   |   | - |   |   | - |   |
| Inventories                (see Note 2)                             |   |                      | 72,110    |   |   | 83,523 |   |   | 65,348 |   |
| Other                                                               |   |                      | 9,869     |   |   | 7,800 |   |   | 7,109 |   |
| Total                current assets                                 |   |                      | 191,754   |   |   | 201,696 |   |   | 170,861 |   |
| Capital                assets:                                      |   |                      |      |   |   |   |   |   |   |   |
| Buildings,                machinery and equipment at cost           |   |                      | 1,812,933 |   |   | 1,828,195 |   |   | 1,815,959 |   |
| Accumulated                depreciation                             |   |                      | 1,177,306 |   |   | 1,139,390 |   |   | 1,094,266 |   |
| Costs                to be depreciated in future years (see Note 3) |   |                      | 635,627   |   |   | 688,805 |   |   | 721,693 |   |
| Plant                sites at cost                                  |   |                      | 3,549     |   |   | 3,549 |   |   | 3,549 |   |
|                                                                |   |                      | 639,176   |   |   | 692,354 |   |   | 725,242 |   |
| Timber,                at cost less depletion                       |   |                      | 195,031   |   |   | 196,440 |   |   | 185,216 |   |
| Roads,                at cost less amortization                     |   |                      | 9,053     |   |   | 8,631 |   |   | 8,481 |   |
| Timberlands,                at cost                                 |   |                      | 24,694    |   |   | 24,598 |   |   | 20,168 |   |
|                                                                |   |                      | 228,778   |   |   | 229,669 |   |   | 213,865 |   |
| Total                capital assets                                 |   |                      | 867,954   |   |   | 922,023 |   |   | 939,107 |   |
| Pension                and other assets (see Note 10)               |   |                      | 151,987   |   |   | 147,211 |   |   | 145,436 |   |
|                                                                |   | $                         | 1,211,695 |   | $ | 1,270,930 |   | $ | 1,255,404 |   |

**LIABILITIES      AND SHAREHOLDERS' EQUITY**

| Current                liabilities:                                                                                                               |   |   |      |   |   |      |   |   |      |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|
| Payable                to bank resulting from checks in transit                                                                                   |   | $      | 10,299    |   | $      | 12,370    |   | $      | 11,190    |   |
| Accounts                payable (see Note5)                                                                                                       |   |   | 63,527    |   |   | 66,063    |   |   | 53,132    |   |
| Short-term                borrowings (see Note 6)                                                                                                 |   |   | 9,500     |   |   | 10,000    |   |   | 44,000    |   |
| Payrolls                payable                                                                                                                   |   |   | 15,906    |   |   | 15,897    |   |   | 13,465    |   |
| Other                taxes payable                                                                                                                |   |   | 8,541     |   |   | 9,100     |   |   | 8,465     |   |
| Current                installments of long-term debt (see Note 7)                                                                                |   |   | -         |   |   | 30,000    |   |   | -         |   |
| Total                current liabilities                                                                                                          |   |   | 107,773   |   |   | 143,430   |   |   | 130,252   |   |
| Long-term                debt (see Note 7)                                                                                                        |   |   | 407,386   |   |   | 442,148   |   |   | 462,903   |   |
| Deferred                tax liabilities - net (see Note 8)                                                                                        |   |   | 210,029   |   |   | 204,783   |   |   | 195,410   |   |
| Other                liabilities (see Note 10)                                                                                                    |   |   | 36,585    |   |   | 36,915    |   |   | 34,532    |   |
| Commitments                and contingencies (see Note 11)                                                                                        |   |   | -         |   |   | -         |   |   | -         |   |
| Shareholders'                equity:                                                                                                              |   |   |      |   |   |      |   |   |      |   |
| Preferred                stock; authorized 2,000,000 shares                                                                                       |   |   | -         |   |   | -         |   |   | -         |   |
| Common                stock, ascribed value $1.50 per share; authorized 150,000,000 shares;                issued 51,076,567 shares (see Note 13) |   |   | 76,615    |   |   | 76,615    |   |   | 76,615    |   |
| Additional                paid-in capital                                                                                                         |   |   | 3,306     |   |   | 3,306     |   |   | 3,306     |   |
| Retained                earnings                                                                                                                  |   |   | 370,001   |   |   | 363,733   |   |   | 352,386   |   |
| Total                shareholders' equity                                                                                                         |   |   | 449,922   |   |   | 443,654   |   |   | 432,307   |   |
|                                                                                                                                              |   | $      | 1,211,695 |   | $      | 1,270,930 |   | $      | 1,255,404 |   |

----

**CONSOLIDATED      STATEMENT OF CASH FLOWS**

|                                                                     |   | Years                  Ended October 31 |    |
|--------------------------------------------------------------------------|--------|-----------------------------------------|---------|
| (thousands)                                                              |   |  2005                              |    | 2004 |   | 2003 |   |
| **CASH                  PROVIDED BY (USED FOR) OPERATIONS:**             |   |                                    |    |   |   |   |   |   |   |   |
| Net                  income                                              |   | $                                       | 10,354  |   | $ | 13,901 |   | $ | 5,354 |   |
| Charges                  to income not requiring cash:                   |   |                                    |    |   |   |   |   |   |   |   |
| Depreciation                                                             |   |                                    | 71,729  |   |   | 70,906 |   |   | 70,737 |   |
| Depletion                  and amortization                              |   |                                    | 10,775  |   |   | 8,612 |   |   | 7,510 |   |
| Deferred                  taxes - net                                    |   |                                    | 4,492   |   |   | 8,877 |   |   | 3,326 |   |
| (Gain)                  loss on disposition of capital assets            |   |                                    | 898     |   |   | 5,039 |   |   | (3,368 | ) |
| Loss                  on asset abandonment                               |   |                                    | 9,692   |   |   | - |   |   | - |   |
|                                                                     |   |                                    |    |   |   |   |   |   |   |   |
| Change                  in:                                              |   |                                    |    |   |   |   |   |   |   |   |
| Accounts                  and notes receivable - net                     |   |                                    | 4,529   |   |   | (11,969 | ) |   | 2,176 |   |
| Taxes                  on income, refundable                             |   |                                    | (3,931  | ) |   | - |   |   | 2,293 |   |
| Inventories                                                              |   |                                    | 11,413  |   |   | (18,175 | ) |   | 6,241 |   |
| Other                                                                    |   |                                    | (1,315  | ) |   | (195 | ) |   | 691 |   |
| Pension                  and other noncurrent assets                     |   |                                    | (4,776  | ) |   | (1,775 | ) |   | (10,590 | ) |
| Accounts,                  payrolls and other taxes payable              |   |                                    | (2,618  | ) |   | 14,254 |   |   | 7,984 |   |
| Other                  noncurrent liabilities                            |   |                                    | (283    | ) |   | 2,436 |   |   | 3,727 |   |
| Cash                  provided by operations                             |   |                                    | 110,959 |   |   | 91,911 |   |   | 96,081 |   |
|                                                                     |   |                                    |    |   |   |   |   |   |   |   |
| **CASH                  PROVIDED BY (USED FOR) INVESTING:**              |   |                                    |    |   |   |   |   |   |   |   |
| Additions                  to: Plant                  and equipment |   |                                    | (31,500 | ) |   | (45,796 | ) |   | (31,815 | ) |
| Timber                  and timberlands                                  |   |                                    | (10,180 | ) |   | (24,946 | ) |   | (4,970 | ) |
| Proceeds                  from sale of capital assets                    |   |                                    | 2,655   |   |   | 3,269 |   |   | 12,092 |   |
| Cash                  used for investing                                 |   |                                    | (39,025 | ) |   | (67,473 | ) |   | (24,693 | ) |
|                                                                     |   |                                    |    |   |   |   |   |   |   |   |
| **CASH                  PROVIDED BY (USED FOR) FINANCING:**              |   |                                    |    |   |   |   |   |   |   |   |
| Additions                  to long-term debt                             |   |                                    | 191     |   |   | 192 |   |   | 191 |   |
| Reduction                  in long-term debt                             |   |                                    | (30,000 | ) |   | - |   |   | (62,400 | ) |
| Short-term                  borrowings                                   |   |                                    | (35,500 | ) |   | (25,000 | ) |   | (5,000 | ) |
| Payable                  to bank resulting from checks in transit        |   |                                    | (2,071  | ) |   | 1,180 |   |   | 3,726 |   |
| Accounts                  payable for construction                       |   |                                    | (468    | ) |   | 1,744 |   |   | (5,862 | ) |
| Cash                  dividends                                          |   |                                    | (4,086  | ) |   | (2,554 | ) |   | (2,043 | ) |
| Cash                  used for financing                                 |   |                                    | (71,934 | ) |   | (24,438 | ) |   | (71,388 | ) |
|                                                                     |   |                                    |    |   |   |   |   |   |   |   |
| Change                  in cash position                                 |   |                                    | -       |   |   | - |   |   | - |   |
| Cash                  position, beginning of year                        |   |                                    | -       |   |   | - |   |   | - |   |
| Cash                  position, end of year                              |   | $                                       | -       |   | $ | - |   | $ | - |   |
|                                                                     |   |                                    |    |   |   |   |   |   |   |   |
| **SUPPLEMENTAL                  DISCLOSURES OF CASH FLOW INFORMATION:**  |   |                                    |    |   |   |   |   |   |   |   |
| Cash                  paid (received) during the year for:               |   |                                    |    |   |   |   |   |   |   |   |
| Interest                  (net of amount capitalized)                    |   | $                                       | 37,604  |   | $ | 36,822 |   | $ | 40,859 |   |
| Capitalized                  interest                                    |   |                                    | 610     |   |   | 876 |   |   | 1,278 |   |
| Income                  taxes                                            |   |                                    | 5,782   |   |   | 113 |   |   | (2,394 | ) |

----

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note        1 - Summary of accounting policies:**

**Nature        of Business**

**Principles        of consolidation**

**Accounts        Receivable and Allowance for Doubtful Accounts**

**Inventories**

**Property        and depreciation**

**Timberlands,        depletion and amortization**

----

**Financial        instruments**

**Earnings        per share**

**Revenue        recognition**

**Recent        Accounting Developments**

----

**Reclassifications**

**Use        of estimates**

**Note        2 - Inventories:**

|                                      |   | October                31 |    |
|-------------------------------------------|--------|---------------------------|---------|
| (thousands)                               |   | 2005                      |    | 2004 |   | 2003 |   |
| Finished                goods             |   | $                         | 31,843  |   | $ | 38,358 |   | $ | 34,450 |   |
| Goods                in process           |   |                      | 34,519  |   |   | 35,410 |   |   | 25,539 |   |
| Raw                materials              |   |                      | 5,227   |   |   | 6,412 |   |   | 7,054 |   |
| Supplies                (at average cost) |   |                      | 42,404  |   |   | 43,376 |   |   | 39,562 |   |
|                                      |   |                      | 113,993 |   |   | 123,556 |   |   | 106,605 |   |
| LIFO                Reserve               |   |                      | (41,883 | ) |   | (40,033 | ) |   | (41,257 | ) |
|                                      |   | $                         | 72,110  |   | $ | 83,523 |   | $ | 65,348 |   |

**Note        3 - Buildings, machinery and equipment:**

|                                         |   | October                31 |    |
|----------------------------------------------|--------|---------------------------|---------|
| (thousands)                                  |   | 2005                      |    | 2004 |   | 2003 |   |
| Buildings                - net               |   | $                         | 79,801  |   | $ | 81,497 |   | $ | 84,938 |   |
| Machinery                and equipment - net |   |                      | 555,826 |   |   | 607,308 |   |   | 636,755 |   |
|                                         |   | $                         | 635,627 |   | $ | 688,805 |   | $ | 721,693 |   |

**Note        4 - Loss on asset abandonment:**

**Note        5 - Accounts Payable:**

**Note        6 - Short-term borrowings:**

----

| (thousands)                                             |   | 2005   |    | 2004   |   | 2003    |   |
|---------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
| Short-term                  borrowings October 31       |   | $      | 63,500  |   | $      | 99,000  |   | $ | 124,000 |   |
| Reclassification                  to long-term debt (a) |   |   | 54,000  |   |   | 89,000  |   |   | 80,000 |   |
| Short-term                  borrowings                  |   |   | 9,500   |   |   | 10,000  |   |   | 44,000 |   |
| Interest                  rate October 31               |   |   | 7.5     | %      |   | 4.9     | %      |   | 5.4 | % |
| Average                  daily amount of short-term     |   |   |    |   |   |    |   |   |   |   |
| borrowings                  outstanding during year     |   | $      | 94,351  |   | $      | 113,912 |   | $ | 115,213 |   |
| Average                  interest rate during year (b)  |   |   | 7.0     | %      |   | 5.3     | %      |   | 5.7 | % |
| Maximum                  amount of short-term           |   |   |    |   |   |    |   |   |   |   |
|                    borrowings at any month end     |   | $      | 122,000 |   | $      | 125,000 |   | $ | 132,000 |   |

**Note          (a)**

**Note          (b)**

**Note          7 - Long-term debt:**

|                                                                                         |   | October                    31 |    |
|----------------------------------------------------------------------------------------------|--------|-------------------------------|---------|
| (thousands)                                                                                  |   | 2005                          |    | 2004 |   | 2003 |   |
| Senior                    notes due through 2010                                             |   |                          |    |   |   |   |   |   |   |   |
|                      7.25%-8.83%) - Note (a)                                            |   | $                             | 124,500 |   | $ | 154,500 |   | $ | 154,500 |   |
| Revenue                    bonds payable through                                             |   |                          |    |   |   |   |   |   |   |   |
|                      2018 (floating rates, currently                                    |   |                          |    |   |   |   |   |   |   |   |
|                      2.70%-2.85%) - Note (b)                                            |   |                          | 14,500  |   |   | 14,500 |   |   | 14,500 |   |
| Senior                    subordinated notes due                                             |   |                          |    |   |   |   |   |   |   |   |
|                      2009 (10.00%) - Note (c)                                           |   |                          | 215,000 |   |   | 215,000 |   |   | 215,000 |   |
| Notes                    payable - credit                      agreement - Note 6 above |   |                          | 54,000  |   |   | 89,000 |   |   | 80,000 |   |
|                                                                                         |   |                          | 408,000 |   |   | 473,000 |   |   | 464,000 |   |
| Less                    current installments                                                 |   |                          | -       |   |   | 30,000 |   |   | - |   |
| Less                    unamortized debt discounts                                      |   |                          | 614     |   |   | 805 |   |   | 997 |   |
|                                                                                         |   |                          | 407,386 |   |   | 442,195 |   |   | 463,003 |   |
| Fair                    value adjustments -                                                  |   |                          |    |   |   |   |   |   |   |   |
|                      mark-to-market - Note (d)                                          |   |                          | -       |   |   | (47 | ) |   | (100 | ) |
| Net                    long-term debt                                                        |   | $                             | 407,386 |   | $ | 442,148 |   | $ | 462,903 |   |

| Scheduled                    maturities (thousands) |   |   |    |
|-----------------------------------------------------|--------|--------|---------|
| 2006                                                |   | $      | -       |   |
| 2007                                                |   |   | -       |   |
| 2008                                                |   |   | 24,000  |   |
| 2009                                                |   |   | 215,000 |   |
| 2010                                                |   |   | 154,500 |   |
| 2011-2018                                           |   |   | 14,500  |   |
|                                                |   | $      | 408,000 |   |

**Note            (a)**

**Note            (b)**

**Note            (c)**

**Note            (d)**

----

**Note            8 - Income taxes:**

|                                                              |   | Years                ended October 31 |   |
|-------------------------------------------------------------------|--------|---------------------------------------|--------|
| (thousands)                                                       |   | 2005                                  |   | 2004 |   | 2003 |   |
| Current:                                                          |   |                                  |   |   |   |   |   |   |   |   |
| Federal                                                           |   | $                                     | 725    |   | $ | - |   | $ | - |   |
| State                                                             |   |                                  | 963    |   |   | 123 |   |   | (126 | ) |
| Total                current tax                                  |   |                                  | 1,688  |   |   | 123 |   |   | (126 | ) |
|                                                              |   |                                  |   |   |   |   |   |   |   |   |
| Deferred:                                                         |   |                                  |   |   |   |   |   |   |   |   |
| Federal                                                           |   |                                  | 4,475  |   |   | 8,200 |   |   | 4,388 |   |
| State                                                             |   |                                  | 17     |   |   | 677 |   |   | (1,062 | ) |
| Total                deferred tax                                 |   |                                  | 4,492  |   |   | 8,877 |   |   | 3,326 |   |
|                                                              |   |                                  |   |   |   |   |   |   |   |   |
| Total                provision for taxes on                income |   | $                                     | 6,180  |   | $ | 9,000 |   | $ | 3,200 |   |

|                                            |   | Years                ended October 31 |   |
|-------------------------------------------------|--------|---------------------------------------|--------|
|                                            |   | 2005                                  |   | 2004 |   | 2003 |   |
| Expected                federal income tax rate |   |                                  | 35     | % |   | 35 | % |   | 35 | % |
| State                income taxes less          |   |                                  |   |   |   |   |   |   |   |   |
| federal                income tax benefit       |   |                                  | 3      |   |   | 2 |   |   | (9 | ) |
| Credits                                         |   |                                  | (3     | ) |   | (1 | ) |   | (7 | ) |
| Other                                           |   |                                  | 2      |   |   | 3 |   |   | 18 |   |
|                                            |   |                                  |   |   |   |   |   |   |   |   |
| Effective                income tax rate        |   |                                  | 37     | % |   | 39 | % |   | 37 | % |

|                                          |   | October                31 |    |
|-----------------------------------------------|--------|---------------------------|---------|
| (thousands)                                   |   | 2005                      |    | 2004 |   | 2003 |   |
| Deferred                tax assets:           |   |                      |    |   |   |   |   |   |   |   |
| Alternative                minimum tax        |   | $                         | (398    | ) | $ | (13,391 | ) | $ | (17,186 | ) |
| State                credits and other assets |   |                      | (8,985  | ) |   | (8,534 | ) |   | (8,317 | ) |
| Total                deferred tax assets      |   |                      | (9,383  | ) |   | (21,925 | ) |   | (25,503 | ) |
|                                          |   |                      |    |   |   |   |   |   |   |   |
| Deferred                tax liabilities:      |   |                      |    |   |   |   |   |   |   |   |
| Depreciation/depletable                assets |   |                      | 176,783 |   |   | 185,924 |   |   | 183,869 |   |
| Employee                benefit plans         |   |                      | 36,955  |   |   | 35,793 |   |   | 32,555 |   |
| Other                liabilities              |   |                      | 217     |   |   | 288 |   |   | 282 |   |
| Total                deferred tax liabilities |   |                      | 213,955 |   |   | 222,005 |   |   | 216,706 |   |
|                                          |   |                      |    |   |   |   |   |   |   |   |
| Deferred                income taxes - net    |   | $                         | 204,572 |   | $ | 200,080 |   | $ | 191,203 |   |

|                                                                                 |   | October                31 |    |
|--------------------------------------------------------------------------------------|--------|---------------------------|---------|
| (thousands)                                                                          |   | 2005                      |    | 2004 |   | 2003 |   |
| Deferred                tax assets - included in                Other current assets |   | $                         | 5,457   |   | $ | 4,703 |   | $ | 4,207 |   |
|                                                                                 |   |                      |    |   |   |   |   |   |   |   |
| Deferred                tax liabilities                                              |   | $                         | 210,029 |   | $ | 204,783 |   | $ | 195,410 |   |

**Note        9 - Segment information:**

|   |   |
|--------|--------|

----

|                                                          |   | Years                ended October 31 |      |
|---------------------------------------------------------------|--------|---------------------------------------|-----------|
| (thousands)                                                   |   | 2005                                  |      | 2004 |   | 2003 |   |
| **Net                sales:**                                 |   |                                  |      |   |   |   |   |   |   |   |
| Timber                                                        |   | $                                     | 186,783   |   | $ | 192,840 |   | $ | 163,000 |   |
| Paper                and paperboard                           |   |                                  | 264,733   |   |   | 225,682 |   |   | 202,549 |   |
| Converted                products                             |   |                                  | 446,576   |   |   | 412,644 |   |   | 407,788 |   |
| Net                sales                                      |   |                                  | 898,092   |   |   | 831,166 |   |   | 773,337 |   |
|                                                          |   |                                  |      |   |   |   |   |   |   |   |
| **Income                before income taxes:**                |   |                                  |      |   |   |   |   |   |   |   |
| Operating                profit (loss)                        |   |                                  |      |   |   |   |   |   |   |   |
| Timber                                                        |   |                                  | 84,792    |   |   | 90,039 |   |   | 64,145 |   |
| Paper                and paperboard                           |   |                                  | (11,269   | ) |   | (13,611 | ) |   | (10,780 | ) |
| Converted                products                             |   |                                  | (21,368   | ) |   | (17,484 | ) |   | (8,763 | ) |
| Interest                expense and other - net               |   |                                  | (35,621   | ) |   | (36,043 | ) |   | (36,048 | ) |
| Income                before income taxes                     |   |                                  | 16,534    |   |   | 22,901 |   |   | 8,554 |   |
|                                                          |   |                                  |      |   |   |   |   |   |   |   |
| **Identifiable                assets at October 31**          |   |                                  |      |   |   |   |   |   |   |   |
| Timber                                                        |   |                                  | 272,458   |   |   | 273,252 |   |   | 263,028 |   |
| Paper                and paperboard                           |   |                                  | 364,375   |   |   | 416,779 |   |   | 352,973 |   |
| Converted                products                             |   |                                  | 574,862   |   |   | 580,899 |   |   | 639,403 |   |
| Total                assets                                   |   |                                  | 1,211,695 |   |   | 1,270,930 |   |   | 1,255,404 |   |
|                                                          |   |                                  |      |   |   |   |   |   |   |   |
| **Depreciation,                depletion and**                |   |                                  |      |   |   |   |   |   |   |   |
| **                 amortization:**                       |   |                                  |      |   |   |   |   |   |   |   |
| Timber                                                        |   |                                  | 13,729    |   |   | 11,618 |   |   | 10,978 |   |
| Paper                and paperboard                           |   |                                  | 24,435    |   |   | 26,185 |   |   | 22,277 |   |
| Converted                products                             |   |                                  | 44,340    |   |   | 41,715 |   |   | 44,992 |   |
| Total                depreciation, depletion and amortization |   |                                  | 82,504    |   |   | 79,518 |   |   | 78,247 |   |
|                                                          |   |                                  |      |   |   |   |   |   |   |   |
| **Additions                to capital assets:**               |   |                                  |      |   |   |   |   |   |   |   |
| Timber                                                        |   |                                  | 11,813    |   |   | 29,631 |   |   | 5,649 |   |
| Paper                and paperboard                           |   |                                  | 9,508     |   |   | 19,470 |   |   | 12,250 |   |
| Converted                products                             |   |                                  | 20,359    |   |   | 21,641 |   |   | 18,886 |   |
| Total                additions to capital assets              |   | $                                     | 41,680    |   | $ | 70,742 |   | $ | 36,785 |   |

**Note        10 - Retirement plans and other postretirement benefits:**

**Retirement        plans**

|                                               |   | Years                    ended October 31 |    |   |   |
|----------------------------------------------------|--------|-------------------------------------------|---------|--------|--------|
| (thousands)                                        |   | 2005                                      |    | 2004   |   | 2003 |   |
| Change                    in benefit obligation:   |   |                                      |    |   |   |   |   |   |   |   |
| Benefit                    obligation at beginning |   |                                      |    |   |   |   |   |   |   |   |
| of                    year                    |   | $                                         | 415,210 |   | $      | 376,616 |   | $ | 354,959 |   |
| Service                    cost                    |   |                                      | 9,403   |   |   | 8,499 |   |   | 8,095 |   |
| Interest                    cost                   |   |                                      | 24,413  |   |   | 23,986 |   |   | 23,229 |   |
| Amendments                                         |   |                                      | 82      |   |   | 21 |   |   | 335 |   |
| Change                    in assumptions           |   |                                      | -       |   |   | 24,280 |   |   | 11,071 |   |
| Actuarial                    (gain) loss           |   |                                      | 1,538   |   |   | 1,708 |   |   | (2,406 | ) |
| Benefits                    paid                   |   |                                      | (21,693 | )      |   | (19,900 | ) |   | (18,667 | ) |
| Benefit                    obligation at end       |   |                                      |    |   |   |   |   |   |   |   |
| of                    year                         |   | $                                         | 428,953 |   | $      | 415,210 |   | $ | 376,616 |   |

|                                                          |   | Years                    ended October 31 |    |   |   |
|---------------------------------------------------------------|--------|-------------------------------------------|---------|--------|--------|
| (thousands)                                                   |   | 2005                                      |    | 2004   |   | 2003 |   |
| Change                    in plan assets:                     |   |                                      |    |   |   |   |   |   |   |   |
| Fair                    value of plan assets at               |   |                                      |    |   |   |   |   |   |   |   |
| beginning                    of year                     |   | $                                         | 462,167 |   | $      | 437,193 |   | $ | 365,270 |   |
| Actual                    return on plan assets          |   |                                      | 60,444  |   |   | 41,872 |   |   | 90,587 |   |
| Employee                    contribution                      |   |                                      | -       |   |   | 2 |   |   | 3 |   |
| Employer                    contributions                     |   |                                      | -       |   |   | 3,000 |   |   | - |   |
| Benefits                    paid                              |   |                                      | (21,693 | )      |   | (19,900 | ) |   | (18,667 | ) |
| Fair                    value of plan assets at               |   |                                      |    |   |   |   |   |   |   |   |
|                          end of year |   | $                                         | 500,918 |   | $      | 462,167 |   | $ | 437,193 |   |

|                                                 |   | October                    31 |    |
|------------------------------------------------------|--------|-------------------------------|---------|
| (thousands)                                          |   | 2005                          |    | 2004 |   | 2003 |   |
| Funded                    status                     |   | $                             | 71,965  |   | $ | 46,957 |   | $ | 60,577 |   |
| Unrecognized                    net actuarial loss   |   |                          | 42,032  |   |   | 57,108 |   |   | 27,760 |   |
| Unrecognized                    prior service cost   |   |                          | 24,159  |   |   | 29,964 |   |   | 35,893 |   |
| Pension                    asset recognized in the   |   |                          |    |   |   |   |   |   |   |   |
|                      Consolidated Balance Sheet |   | $                             | 138,156 |   | $ | 134,029 |   | $ | 124,230 |   |

|                                                         |   | Years                    ended October 31 |   |   |   |
|--------------------------------------------------------------|--------|-------------------------------------------|--------|--------|--------|
| Benefit                    obligation                        |   | 2005                                      |   | 2004   |   | 2003 |   |
| Discount                    rate                             |   |                                      | 6.00   | %      |   | 6.00 | % |   | 6.50 | % |
| Rate                    of compensation increase   |   |                                      | 4.75   | %      |   | 4.75 | % |   | 4.75 | % |

|                                                   |   | Years                    ended October 31 |   |   |   |
|--------------------------------------------------------|--------|-------------------------------------------|--------|--------|--------|
| Net                    Periodic Pension Cost           |   | 2005                                      |   | 2004   |   | 2003 |   |
| Discount                    rate                       |   |                                      | 6.00   | %      |   | 6.50 | % |   | 6.75 | % |
| Rate                    of compensation increase  |   |                                      | 4.75   | %      |   | 4.75 | % |   | 4.75 | % |
| Expected                    long-term rate of return   |   |                                      |   |   |   |   |   |   |   |   |
|                       on plan assets    |   |                                      | 8.75   | %      |   | 9.00 | % |   | 9.00 | % |

|                                                        |   | Years                    Ended October 31 |    |
|-------------------------------------------------------------|--------|-------------------------------------------|---------|
| (thousands)                                                 |   | 2005                                      |    | 2004 |   | 2003 |   |
| Service                    cost - benefits earned           |   |                                      |    |   |   |   |   |   |   |   |
|                      during the year              |   | $                                         | 9,403   |   | $ | 8,499 |   | $ | 8,095 |   |
| Interest                    cost on benefit                 |   |                                      |    |   |   |   |   |   |   |   |
|                      obligation                   |   |                                      | 24,413  |   |   | 23,986 |   |   | 23,229 |   |
| Expected                    return on plan assets      |   |                                      | (43,830 | ) |   | (45,234 | ) |   | (44,452 | ) |
| Recognized                    net actuarial gain       |   |                                      | -       |   |   | - |   |   | (1,735 | ) |
| Amortization                    of prior service cost  |   |                                      | 5,887   |   |   | 5,950 |   |   | 6,020 |   |
| Net                    periodic benefit income         |   | $                                         | (4,127  | ) | $ | (6,799 | ) | $ | (8,843 | ) |

**Plan          Assets**

|                                       |   | October                    31 |   |   |   |
|--------------------------------------------|--------|-------------------------------|--------|--------|--------|
| Asset                    Classes           |   | 2005                          |   | 2004   |   | 2003 |   |
| Large                    Cap US Equity     |   |                          | 43     | %      |   | 58 | % |   | 67 | % |
| Small/Mid                    Cap US Equity |   |                          | 23     |   |   | 22 |   |   | 21 |   |
| International                    Equity    |   |                          | 11     |   |   | 9 |   |   | 3 |   |
| Private                    Equity          |   |                          | 5      |   |   | 3 |   |   | 4 |   |
| Other                                      |   |                          | 11     |   |   | 8 |   |   | 5 |   |
| Real                    Estate             |   |                          | 7      |   |   | - |   |   | - |   |
|                                       |   |                          | 100    | %      |   | 100 | % |   | 100 | % |

----

| Asset                    Classes           |   | Target |   |
|--------------------------------------------|--------|--------|--------|
| Large                    Cap US Equity     |   |   | 36     | % |
| Small/Mid                    Cap US Equity |   |   | 25     |   |
| International                    Equity    |   |   | 12     |   |
| Private                    Equity          |   |   | 5      |   |
| Real                    Estate             |   |   | 8      |   |
| Other                                      |   |   | 14     |   |
|                                       |   |   | 100    | % |

| (thousands) |   | Payments |    |
|-------------|--------|----------|---------|
| 2006        |   | $        | 20,907  |   |
| 2007        |   |     | 21,974  |   |
| 2008        |   |     | 23,116  |   |
| 2009        |   |     | 24,908  |   |
| 2010        |   |     | 26,801  |   |
| 2011-2015   |   |     | 159,803 |   |
|        |   | $        | 277,509 |   |

**Postretirement          benefits other than pensions**

|                                                       |   | Years                    Ended October 31 |   |   |   |
|------------------------------------------------------------|--------|-------------------------------------------|--------|--------|--------|
| (thousands)                                                |   | 2005                                      |   | 2004   |   | 2003 |   |
| Change                    in benefit obligation:           |   |                                      |   |   |   |   |   |   |   |   |
| Benefit                    obligation at beginning         |   |                                      |   |   |   |   |   |   |   |   |
|                      of year                     |   | $                                         | 39,569 |   | $      | 32,780 |   | $ | 40,101 |   |
| Service                    cost                       |   |                                      | 1,377  |   |   | 1,266 |   |   | 1,133 |   |
| Interest                    cost                      |   |                                      | 2,308  |   |   | 2,297 |   |   | 2,003 |   |
| Actuarial                    (gain) loss              |   |                                      | (237   | )      |   | 5,010 |   |   | (8,924 | ) |
| Benefits                    paid                      |   |                                      | (2,021 | )      |   | (1,784 | ) |   | (1,533 | ) |
| Benefit                    obligation at end of year  |   | $                                         | 40,996 |   | $      | 39,569 |   | $ | 32,780 |   |

|                                                                                                                                                                  |   | October                    31 |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|
| (thousands)                                                                                                                                                           |   | 2005                          |    | 2004 |   | 2003 |   |
| Unfunded                    status                                                                                                                                    |   | $                             | (40,996 | ) | $ | (39,569 | ) | $ | (32,780 | ) |
| Unrecognized                    net loss                                                                                                                              |   |                          | 5,421   |   |   | 5,771 |   |   | 806 |   |
| Unrecognized                    transition                                                                                                                            |   |                          |    |   |   |   |   |   |   |   |
|                      obligation                                                                                                                                  |   |                          | 3,486   |   |   | 3,985 |   |   | 4,484 |   |
| Postretirement                    health care benefit                    liabilities recognized in the                    Consolidated Balance  Sheet  |   | $                             | (32,089 | ) | $ | (29,813 | ) | $ | (27,490 | ) |

|                                                                          |   | Years                    ended October 31 |   |
|-------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
| (thousands)                                                                   |   | 2005                                      |   | 2004 |   | 2003 |   |
| Service                    cost - benefits earned                             |   |                                      |   |   |   |   |   |   |   |   |
|                      during the year                                |   | $                                         | 1,377  |   | $ | 1,266 |   | $ | 1,133 |   |
| Interest                    cost on benefit                                   |   |                                      |   |   |   |   |   |   |   |   |
|                      obligation                                     |   |                                      | 2,308  |   |   | 2,297 |   |   | 2,003 |   |
| Amortization                    of transition                                 |   |                                      |   |   |   |   |   |   |   |   |
|                      obligation                                     |   |                                      | 499    |   |   | 499 |   |   | 499 |   |
| Amortization                    of net loss                              |   |                                      | 113    |   |   | 45 |   |   | - |   |
| Net                    periodic postretirement health care benefit cost  |   | $                                         | 4,297  |   | $ | 4,107 |   | $ | 3,635 |   |

|                                                |   | Years                    ended October 31 |   |
|-----------------------------------------------------|--------|-------------------------------------------|--------|
|                                                |   | 2005                                      |   | 2004 |   | 2003 |   |
| Health                    care cost trend rate      |   |                                      |   |   |   |   |   |   |   |   |
| Indemnity                    plan                   |   |                                      | 13.0   | % |   | 15.0 | % |   | 15.0 | % |
| HMO                    plan                         |   |                                      | 5.5    | % |   | 5.5 | % |   | 5.5 | % |
| Ultimate                    trend rate              |   |                                      |   |   |   |   |   |   |   |   |
| Indemnity                    plan                   |   |                                      | 5.5    | % |   | 5.5 | % |   | 5.5 | % |
| HMO                    Plan                         |   |                                      | 5.5    | % |   | 5.5 | % |   | 5.5 | % |
| Year                    ultimate trend rate reached |   |                                      |   |   |   |   |   |   |   |   |
| Indemnity                    plan                   |   |                                      | 2009   |   |   | 2009 |   |   | 2009 |   |
| HMO                    Plan                         |   |                                      | 2000   |   |   | 2000 |   |   | 2000 |   |

----

| (thousands)                                                                                                                                                                                              |   | 1-PercentIncrease |   | 1-PercentDecrease |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|-------------------|--------|
| Effect                    on accumulated postretirement                                                                                                                                                  |   |              |   |              |   |   |   |
| health                    care benefit obligation                                                                                                                                                        |   | $                 | 3,491  |              | $      | (3,096 | ) |
| Effect                    on aggregate service and  interest                    cost components of net periodic                    postretirement health care  benefit                    cost |   |              | 439    |              |   | (380 | ) |

|                             |   | Years                    ended October 31 |   |
|----------------------------------|--------|-------------------------------------------|--------|
|                             |   | 2005                                      |   | 2004 |   | 2003 |   |
| Discount                    rate |   |                                      | 6.00   | % |   | 6.00 | % |   | 6.50 | % |

|        |   | Postretirement |   |
|-------------|--------|----------------|--------|
|        |   | Benefit        |   |
| (thousands) |   | Payments       |   |
| 2006        |   | $              | 2,224  |   |
| 2007        |   |           | 2,516  |   |
| 2008        |   |           | 2,722  |   |
| 2009        |   |           | 2,921  |   |
| 2010        |   |           | 3,266  |   |
| 2011-2015   |   |           | 19,709 |   |
|        |   | $              | 33,358 |   |

**Savings          plans**

|        |   | Savings                    Plans |   |
|-------------|--------|----------------------------------|--------|
|        |   | Matching                         |   |
| (thousands) |   | Contributions                    |   |
| 2006        |   | $                                | 2,632  |   |
| 2007        |   |                             | 2,738  |   |
| 2008        |   |                             | 2,847  |   |
| 2009        |   |                             | 2,961  |   |
| 2010        |   |                             | 3,079  |   |
| 2011-2015   |   |                             | 17,346 |   |
|        |   | $                                | 31,603 |   |

**Note          11 - Commitments and contingencies:**

**Note          12 - Fair value of financial instruments:**

**Note          13 - Shareholder rights plan:**

----

**Note          14 - Quarterly financial data (unaudited)**

|                                            |   | Fiscal                    Year Quarters |    |
|-------------------------------------------------|--------|-----------------------------------------|---------|
| (thousands                    except per share) |   | 1st                                     |    | 2nd |   | 3rd |   | 4th |   | TotalFiscal                    Year |   |
|                                            |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **2005**                                        |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    sales                    |   | $                                       | 224,080 |   | $ | 224,409 |   | $ | 224,919 |   | $ | 224,684 |   | $ | 898,092 |   |
| Gross                    profit                 |   |                                    | 34,770  |   |   | 44,747 |   |   | 41,181 |   |   | 34,708 |   |   | 155,406 |   |
| Net                    income (loss)            |   |                                    | 2,621   |   |   | 8,759 |   |   | 5,849 |   |   | (6,875 | ) |   | 10,354 |   |
| Net                    income (loss) per share  |   |                                    | 0.05    |   |   | 0.17 |   |   | 0.11 |   |   | (0.13 | ) |   | 0.20 |   |
|                                            |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **2004**                                        |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    sales                    |   | $                                       | 169,927 |   | $ | 213,383 |   | $ | 220,486 |   | $ | 227,370 |   | $ | 831,166 |   |
| Gross                    profit                 |   |                                    | 14,074  |   |   | 39,449 |   |   | 42,029 |   |   | 46,144 |   |   | 141,696 |   |
| Net                    income (loss)            |   |                                    | (9,283  | ) |   | 5,947 |   |   | 7,905 |   |   | 9,332 |   |   | 13,901 |   |
| Net                    income (loss) per share  |   |                                    | (0.18   | ) |   | 0.12 |   |   | 0.15 |   |   | 0.18 |   |   | 0.27 |   |
|                                            |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **2003**                                        |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    sales                    |   | $                                       | 189,654 |   | $ | 181,590 |   | $ | 194,265 |   | $ | 207,828 |   | $ | 773,337 |   |
| Gross                    profit                 |   |                                    | 29,759  |   |   | 24,582 |   |   | 29,101 |   |   | 33,314 |   |   | 116,756 |   |
| Net                    income (loss)            |   |                                    | 1,413   |   |   | 494 |   |   | (177 | ) |   | 3,624 |   |   | 5,354 |   |
| Net                    income (loss) per share  |   |                                    | 0.03    |   |   | 0.01 |   |   | - |   |   | 0.07 |   |   | 0.10 |   |

**Note          15 - Subsequent events:**

**New          Credit Agreement**

----

**Conversion          to Real Estate Investment Trust**

**Change          in Fiscal Year**

***Item          9. Changes in and Disagreements With Accountants on Accounting and Financial          Disclosure.***

***Item          9A. Controls and Procedures.***

**Disclosure          Controls and Procedures**

----

**Management's          Report on Internal Control Over Financial Reporting**

| ·   | pertain                    to the maintenance of records that in reasonable detail accurately                    and                    fairly reflect the transactions and dispositions of our                    assets; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | provide                    reasonable assurance that transactions are recorded as necessary                    to permit                    preparation of financial statements in accordance with generally                    accepted                    accounting principles, and that receipts and expenditures of                    the company                    are being made only in accordance with authorizations of our                    management                    and directors; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | provide                    reasonable assurance regarding prevention or timely detection                    of                    unauthorized acquisition, use or disposition of the company's                    assets that                    could have a material effect on the financial                    statements. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Internal          Control-Integrated Framework*

| *1.  * | *Insufficient                    personnel with appropriate accounting knowledge and training.*We                    lacked a sufficient complement of personnel with an appropriate                    level of                    accounting knowledge, experience and training in the application                    of                    generally accepted accounting principles commensurate with our                    financial                    reporting requirements. In addition, we did not maintain documented                    policies to ensure the consistent application of procedures in                    our                    financial reporting process by existing personnel. This control                    deficiency                    could result in a misstatement to substantially all of our financial                    statement accounts and disclosures that would result in a material                    misstatement to the annual or interim financial statements that                    would not                    be prevented or detected. Accordingly, management has concluded                    that this                    control deficiency constitutes a material weakness. This control                    deficiency contributed to the control deficiencies described                    in items 2                    through 4 below. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| *2.  * | *Ineffective                    controls over supplies inventories*.                    We did not maintain effective controls over the existence and                    valuation of                    our supplies inventories. Specifically, we failed to perform                    an effective                    physical inventory of our fuel supplies inventory and failed                    to perform                    reconciliations of certain supplies inventories to ensure that                    all                    transactions were completely and accurately recorded. In addition,                    we                    failed to properly identify and accurately value obsolete supplies                    inventories. This control deficiency resulted in misstatements                    to our                    supplies inventories and related cost of products sold in our                    consolidated                    financial statements for the third quarter of fiscal year 2005                    which did                    not require restatement because we determined that the net impact                    of all                    identified misstatements was not material, as well as audit adjustments                    to                    our consolidated financial statements for the fourth quarter                    of fiscal                    year 2005. In addition, this control deficiency could result                    in a                    misstatement to our supplies inventories and related cost of                    products sold                    that would result in a material misstatement to the annual or                    interim                    financial statements that would not be prevented or detected.                    Accordingly,                    management has concluded that this control deficiency constitutes                    a                    material weakness. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *3.  * | *Ineffective                    controls over workers’ compensation claims liability.*We                    did not maintain effective controls over the valuation of our                    workers’                    compensation claims liability. Specifically, we failed to ensure                    that                    assumptions and data reported to us by our third-party claims                    administrator were appropriately considered in the calculation                    of our                    estimated future workers' compensation claims. This control deficiency                    resulted in misstatements to our workers' compensation claims                    liability                    and related cost of products sold in our consolidated financial                    statements                    for the third quarter of fiscal year 2005 which did not require                    restatement because we determined that the net impact of all                    identified                    misstatements was not material. In addition, this control deficiency                    could                    result in a misstatement to our workers' compensation claims                    liability and                    related cost of products sold that would result in a material                    misstatement                    to the annual or interim financial statements that would not                    be prevented                    or detected. Accordingly, management has concluded that this                    control                    deficiency constitutes a material                    weakness. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *4.  * | *Ineffective                    controls over postretirement medical benefits liability*.                    We did not maintain effective controls over the valuation of                    our                    postretirement medical benefits liability. Specifically, we did                    not                    maintain effective controls to ensure that the calculation of                    our                    postretirement medical benefits liability was properly and timely                    reconciled to the data provided by our actuary. This control                    deficiency                    resulted in misstatements to our postretirement medical benefits                    liability                    and related cost of products sold and selling, administrative                    and general                    expenses in our consolidated financial statements for the third                    quarter of                    fiscal year 2005 which did not require restatement because we                    determined                    that the net impact of all identified misstatements was not material.                    In                    addition, this control deficiency could result in a misstatement                    to our                    postretirement medical benefits liability and related cost of                    products                    sold and selling, administrative and general expenses that would                    result in                    a material misstatement to the annual or interim financial statements                    that                    would not be prevented or detected. Accordingly, management has                    concluded                    that this control deficiency constitutes a material                    weakness. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Remediation          Plan for Material Weaknesses**

| *1.  * | *Insufficient                    personnel with appropriate accounting knowledge and                    training.*                    We                    commenced a search for a new controller and financial reporting                    manager                    with an appropriate level of accounting knowledge, experience                    and training                    in the application of generally accepted accounting principles                    commensurate with our financial reporting requirements. Pending                    the                    retention of a new controller, our Senior Vice President-Finance                    assumed                    additional responsibilities as our principal accounting officer.                    During                    October 2005, we retained outside consultants to assist, under the                    supervision of our Senior Vice President-Finance, with the closing                    of our                    books and with the reporting of our financial statements as of                    and for the                    fiscal year ended October 31, 2005 and the transition period ended                    December 31, 2005. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| *2.  * | *Ineffective                    controls over supplies inventories*.                    We implemented a new procedure requiring that fuel supplies inventories                    be                    determined based on two independent inventory readings that are                    compared                    and validated by supervisory personnel, with additional analytical                    review                    prepared by the supervisor to corroborate the validation. Other                    supplies                    inventories items, including broken/excess equipment, have been                    made                    subject to additional analytical review and reconciliation procedures                    overseen directly by supervisory personnel. We also plan to implement                    a                    sampling and testing process to monitor and verify on a quarterly                    basis                    that obsolete spare parts in inventory are properly                    valued. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *3.  * | *Ineffective                    controls over workers' compensation claims liability*.                    Our remediation measures include a separate review and verification                    by                    supervisory personnel of (1) the reserve analysis process used to                    calculate the estimated additional workers’ compensation liabilities using                    loss development factors based on historical claims experience                    and                    (2) third-party estimates of workers’ compensation liabilities. A                    separate reconciliation is prepared by supervisory personnel.                    The reserve                    analysis and third-party estimates have also been made subject                    to review                    by our workers’ compensation department. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *4.  * | *Ineffective                    controls over postretirement medical benefits liability*.                    The postretirement medical benefits liability is now subject                    to review and                    verification by supervisory personnel of the reconciliation performed,                    including verification to the underlying actuarial report. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Changes          in Internal Control Over Financial Reporting**

***Item          9B. Other Information***

**PART          III**

**Item          10. Directors and Executive Officers of the Registrant.**

----

***Item          11. Executive Compensation.***

***Item          12. Security Ownership of Certain Beneficial Owners and Management and          Related          Stockholder Matters.***

***Item          13. Certain Relationships and Related          Transactions.***

***Item          14. Principal Accountant Fees and Services.***

**PART          IV**

***Item          15. Exhibits and Financial Statement Schedules.***

----

**SIGNATURES**

| By:                    **L.                    J. McLAUGHLIN** Date:                    January 17, 2006L.                    J. McLAUGHLINSenior                    Vice President-Finance, Secretary and Treasurer                                                                              |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                   |
| Pursuant                    to the requirements of the Securities Exchange Act of 1934, this                    report                    has been signed by the following persons on behalf of the Registrant                    and                    in the capacities and on the dates indicated. |
|                                                                                                                                                                                                                                                                                                   |    |
| **R.                    H. WOLLENBERG**                                                                                                                                                                                                                                                                | 1/17/06 |
| R.                    H. WOLLENBERG,                                                                                                                                                                                                                                                                   |    |
| President,                    Chief Executive Officer and Chairman of the Board                                                                                                                                                                                                                        |    |
| (principal                    executive officer)                                                                                                                                                                                                                                                       |    |
|                                                                                                                                                                                                                                                                                                   |    |
| **L.                    J. McLAUGHLIN**                                                                                                                                                                                                                                                                | 1/17/06 |
| L.                    J. McLAUGHLIN,                                                                                                                                                                                                                                                                   |    |
| Senior                    Vice President - Finance, Secretary and Treasurer and                    Director                                                                                                                                                                                            |    |
| (principal                    financial and accounting officer)                                                                                                                                                                                                                                        |    |
|                                                                                                                                                                                                                                                                                                   |    |
| **D.                    L. BOWDEN**                                                                                                                                                                                                                                                                    | 1/17/06 |
| D.                    L. BOWDEN,                                                                                                                                                                                                                                                                       |    |
| Director                                                                                                                                                                                                                                                                                               |    |
|                                                                                                                                                                                                                                                                                                   |    |
| **M.                    A. DOW**                                                                                                                                                                                                                                                                       | 1/17/06 |
| M.                    A. DOW,                                                                                                                                                                                                                                                                          |    |
| Director                                                                                                                                                                                                                                                                                               |    |
|                                                                                                                                                                                                                                                                                                   |    |
| **M.                    C. HENDERSON**                                                                                                                                                                                                                                                                 | 1/17/06 |
| M.                    C. HENDERSON,                                                                                                                                                                                                                                                                    |    |
| Director                                                                                                                                                                                                                                                                                               |    |
|                                                                                                                                                                                                                                                                                                   |    |
| **J.                    R. KRETCHMER**                                                                                                                                                                                                                                                                 | 1/17/06 |
| J.                    R. KRETCHMER,                                                                                                                                                                                                                                                                    |    |
| Director                                                                                                                                                                                                                                                                                               |    |
|                                                                                                                                                                                                                                                                                                   |    |
| **R.                    A. KIRCHNER**                                                                                                                                                                                                                                                                  | 1/17/06 |
| R.                    A. KIRCHNER,                                                                                                                                                                                                                                                                     |    |
| Director                                                                                                                                                                                                                                                                                               |    |
|                                                                                                                                                                                                                                                                                                   |    |
| **R.                    E. WERTHEIMER**                                                                                                                                                                                                                                                                | 1/17/06 |
| R.                    E. WERTHEIMER,                                                                                                                                                                                                                                                                   |    |
| Director                                                                                                                                                                                                                                                                                               |    |
|                                                                                                                                                                                                                                                                                                   |    |
| **D.                    A. WOLLENBERG**                                                                                                                                                                                                                                                                | 1/17/06 |
| D.                    A. WOLLENBERG,                                                                                                                                                                                                                                                                   |    |
| Director                                                                                                                                                                                                                                                                                               |

----

**INDEX          OF EXHIBITS**

| 3.1                                                                                                                        | Articles                    of Incorporation of Longview Fibre Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|----------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2                                                                                                                        | Bylaws                    of Longview Fibre Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.1                                                                                                                        | Long-term                    debts that do not exceed 10% of the total assets of Longview                    Fibre                    Company, details of which will be supplied to the Commission                    upon request:                    Senior                    Notes due through 2010 (7.25%-8.83% at October 31, 2005)                    $124,500,000Revenue                    Bonds payable through 2018 (floating rates, 2.70% through 2.85%                    at October                    31, 2005) $14,500,000 |
| 4.2                                                                                                                        | Indenture                    dated as of January 25, 2002 (incorporated by reference to Exhibit                    4.3 to                    the registrant’s Registration Statement on Form S-4 dated March 4,                    2002)                                                                                                                                                                                                                                                                                             |
| 4.3                                                                                                                        | Supplemental                    Indenture dated as of December 30, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.4                                                                                                                        | Rights                    Agreement dated as of March 1, 1999                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4.5                                                                                                                        | Registration                    Rights Agreement dated January 25, 2002 (incorporated by reference                    to                    Exhibit 4.4 to the registrant’s Registration Statement on Form S-4 dated                    March 4, 2002)                                                                                                                                                                                                                                                                               |
| 10.1                                                                                                                       | Form                    of Termination Protection Agreement (incorporated by reference                    to Exhibit                    10 to the registrant’s Annual Report on Form 10-K for the fiscal year                    ended October 31, 1994 (File No. 001-10061))(*)                                                                                                                                                                                                                                                     |
| 10.2                                                                                                                       | Credit                    Agreement dated as of December 15, 2003 (incorporated by reference                    to                    Exhibit 10.3 to the registrant’s Annual Report on Form 10-K for the fiscal                    year ended October 31, 2003 (File No. 001-10061))                                                                                                                                                                                                                                                |
| 10.3                                                                                                                       | Credit                    Agreement dated as of December 23, 2005 (incorporated by reference                    to                    Exhibit 99.1 to the registrant’s Current Report on Form 8-K dated December                    23, 2005 and filed December 30, 2005 (File No.                    001-10061))                                                                                                                                                                                                                    |
| 10.4                                                                                                                       | Short-Term                    Incentive Plan (incorporated by reference to Exhibit 10.3 to                    the                    registrant’s Annual Report on Form 10-K for the fiscal year ended October                    31, 2004 (File No. 001-10061))(*)                                                                                                                                                                                                                                                                  |
| 21.1                                                                                                                       | Subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 23.1                                                                                                                       | Consent                    of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 31.1                                                                                                                       | Rule                    13a-14(a)/15d-14(a) Certification by R. H. Wollenberg,                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                       | President,                    Chief Executive Officer and Chairman of the Board.                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 31.2                                                                                                                       | Rule                    13a-14(a)/15d-14(a) Certification by L. J. McLaughlin,                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                       | Sr.                    Vice President-Finance, Secretary and Treasurer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 32.1                                                                                                                       | Section                    1350 Certification by R. H. Wollenberg, President, Chief Executive                    Officer                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                       | and                    Chairman of the Board.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 32.2                                                                                                                       | Section                    1350 Certification by L. J. McLaughlin, Sr. Vice                    President-                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                       | Finance,                    Secretary and Treasurer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 99.1                                                                                                                       | Salary                    Savings Plan - Trust Agreement (incorporated by reference to                    Exhibit 99.4                    to the registrant’s Annual Report on Form 10-K for the fiscal year ended                    October 31, 2000 (File No. 001-10061))(*)                                                                                                                                                                                                                                                      |
| 99.2                                                                                                                       | Hourly                    Savings Plan - Trust Agreement (incorporated by reference to                    Exhibit 99.7                    to the registrant’s Annual Report on Form 10-K for the fiscal year ended                    October 31, 2000 (File No. 001-10061))                                                                                                                                                                                                                                                         |
| 99.3                                                                                                                       | Branch                    Hourly Savings Plan - Trust Agreement (incorporated by reference                    to                    Exhibit 99.12 to the registrant’s Annual Report on Form 10-K for the                    fiscal year ended October 31, 2000 (File No.                    001-10061))                                                                                                                                                                                                                              |
| 99.4                                                                                                                       | Salary                    Savings Plan (incorporated by reference to Exhibit 99.4 to the                    registrant’s Annual Report on Form 10-K for the fiscal year ended October                    31, 2002 (File No. 001-10061))(*)                                                                                                                                                                                                                                                                                           |
| 99.5                                                                                                                       | Salary                    Savings Plan - Amendment No. 1 (incorporated by reference to                    Exhibit 99.5                    to the registrant’s Annual Report on Form 10-K for the fiscal year ended                    October 31, 2002 (File No. 001-10061))(*)                                                                                                                                                                                                                                                      |
| 99.6                                                                                                                       | Salary                    Savings Plan - Amendment No. 2 (incorporated by reference to                    Exhibit 99.6                    to the registrant’s Annual Report on Form 10-K for the fiscal year ended                    October 31, 2002 (File No. 001-10061))(*)                                                                                                                                                                                                                                                      |
| 99.7                                                                                                                       | Salary                    Savings Plan - Amendment No. 3 (incorporated by reference to                    Exhibit 99.7                    to the registrant’s Annual Report on Form 10-K for the fiscal year ended                    October 31, 2003 (File No. 001-10061))(*)                                                                                                                                                                                                                                                      |
| 99.8                                                                                                                       | Salary                    Savings Plan - Amendment No. 4 (*)                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 99.9                                                                                                                       | Salary                    Savings Plan - Amendment No. 5 (*)                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 99.10                                                                                                                      | Hourly                    Savings Plan (incorporated by reference to Exhibit 99.7 to the                    registrant’s Annual Report on Form 10-K for the fiscal year ended October                    31, 2002 (File No. 001-10061))                                                                                                                                                                                                                                                                                              |
| 99.11                                                                                                                      | Hourly                    Savings Plan - Amendment No. 1 (incorporated by reference to                    Exhibit 99.8                    to the registrant’s Annual Report on Form 10-K for the fiscal year ended                    October 31, 2002 (File No. 001-10061))                                                                                                                                                                                                                                                         |
| 99.12                                                                                                                      | Hourly                    Savings Plan - Amendment No. 2 (incorporated by reference to                    Exhibit 99.9                    to the registrant’s Annual Report on Form 10-K for the fiscal year ended                    October 31, 2002 (File No. 001-10061))                                                                                                                                                                                                                                                         |
| 99.13                                                                                                                      | Hourly                    Savings Plan - Amendment No. 3 (incorporated by reference to                    Exhibit 99.11                    to the registrant’s Annual Report on Form 10-K for the fiscal year ended                    October 31, 2003 (File No. 001-10061))                                                                                                                                                                                                                                                        |
| 99.14                                                                                                                      | Hourly                    Savings Plan - Amendment No. 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 99.15                                                                                                                      | Hourly                    Savings Plan - Amendment No. 5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 99.16                                                                                                                      | Branch                    Hourly Savings Plan (incorporated by reference to Exhibit 99.10                    to the                    registrant’s Annual Report on Form 10-K for the fiscal year ended October                    31, 2002 (File No. 001-10061))                                                                                                                                                                                                                                                                   |
| 99.17                                                                                                                      | Branch                    Hourly Savings Plan - Amendment No. 1 (incorporated by reference                    to                    Exhibit 99.11 to the registrant’s Annual Report on Form 10-K for the                    fiscal year ended October 31, 2002 (File No.                    001-10061))                                                                                                                                                                                                                              |
| 99.18                                                                                                                      | Branch                    Hourly Savings Plan - Amendment No. 2 (incorporated by reference                    to                    Exhibit 99.12 to the registrant’s Annual Report on Form 10-K for the                    fiscal year ended October 31, 2002 (File No.                    001-10061))                                                                                                                                                                                                                              |
| 99.19                                                                                                                      | Branch                    Hourly Savings Plan - Amendment No. 3 (incorporated by reference                    to                    Exhibit 99.15 to the registrant’s Annual Report on Form 10-K for the                    fiscal year ended October 31, 2003 (File No.                    001-10061))                                                                                                                                                                                                                              |
| 99.20                                                                                                                      | Branch                    Hourly Savings Plan - Amendment No. 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 99.21                                                                                                                      | Branch                    Hourly Savings Plan - Amendment No. 5                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| ______________(*)                    Indicates management contract or compensatory plan or                    arrangement. |

----