I

104TH CONGRESS

2D SESSION H. R. 3659

To amend the Tongass Timber Reform Act to ensure the proper stewardship

of publicly owned assets in the Tongass National Forest in the State

of Alaska, a fair return to the United States for public timber in

the Tongass, and a proper balance among multiple use interests in

the Tongass to enhance forest health, sustainable harvest, and the general economic health and growth in southeast Alaska and the United

States.

IN THE HOUSE OF REPRESENTATIVES

JUNE 13, 1996

Mr. YOUNG of Alaska introduced the following bill; which was referred to the

Committee on Agriculture, and in addition to the Committee on Resources, for a period to be subsequently determined by the Speaker, in

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Tongass Timber Reform Act to ensure the

proper stewardship of publicly owned assets in the

Tongass National Forest in the State of Alaska, a fair

return to the United States for public timber in the

Tongass, and a proper balance among multiple use interests in the Tongass to enhance forest health, sustainable

harvest, and the general economic health and growth

in southeast Alaska and the United States.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Environmental Im3 provement Timber Contract Extension Act of 1996’’.

4 SEC. 2. MODIFICATION OF LONG-TERM CONTRACT RE5 GARDING TONGASS NATIONAL FOREST.

6 Title III of the Tongass Timber Reform Act (Public

7 Law 101–626; 104 Stat. 4430) is amended by adding at

8 the end the following new section:

9 ‘‘SEC. 302. 1996 CONTRACT MODIFICATIONS.

10 ‘‘(a) DEFINITIONS.—In this section:

11 ‘‘(1) The term ‘board feet’ means net scribner

12 long-log scale for all sawlogs and all hemlock and

13 spruce utility grade logs.

14 ‘‘(2) The term ‘contract’ means the timber sale

15 contract numbered A10fs–1042 between the United

16 States and the Ketchikan Pulp Company.

17 ‘‘(3) The term ‘contracting officer’ means the

18 Regional Forester of Region 10 of the United States

19 Forest Service.

20 ‘‘(4) The term ‘mid-market criteria’ means an

21 appraisal that ensures an average timber operator

22 will have a weighted average profit and risk margin

23 of at least 60 percent of normal in a mid-market sit24 uation, representative of the most recent 10 years of

25 actual market data.
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1 ‘‘(5) The term ‘proportionality’ means the pro2 portion of high volume stands (stands of 30,000 or

3 more board feet per acre) to low volume stands

4 (stands of 8,000 to 30,000 board feet per acre).

5 ‘‘(6) The term ‘purchaser’ means the Ketchikan

6 Pulp Company.

7 ‘‘(b) FINDINGS.—Congress finds the following:

8 ‘‘(1) On July 26, 1951, the Forest Service, on

9 behalf of the United States, and the purchaser en10 tered into a contract to harvest 8,250,000,000 board

11 feet of timber from the Tongass National Forest in

12 the State of Alaska. While the contract is scheduled

13 to end June 30, 2004, it acknowledges an intention

14 on the part of the Forest Service to supply adequate

15 timber thereafter for permanent operation of the

16 purchaser’s facilities on a commercially sound and

17 permanently economical basis. This legislation is

18 necessary to effectuate that intent.

19 ‘‘(2) A pulp mill or similar facility is necessary

20 in southeast Alaska to optimize the level of year21 round, high-paying jobs in the area, to provide high

22 value added use of low-grade wood and by-product

23 material from sawmilling operations, and to main24 tain a stable regional economy.
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1 ‘‘(3) The purchaser plans to make environ2 mental and operational improvements to its pulp

3 mill, including conversion to an elementally chlorine

4 free bleaching process, expansion of wastewater

5 treatment facilities, relocation of the existing

6 wastewater outfall, and improvements to chemical

7 recovery and power generation equipment. Total

8 capital expenditures are estimated to be

9 $200,000,000, $25,000,000 of which the purchaser

10 has already invested.

11 ‘‘(4) Extension of the contract for 15 years is

12 the minimum reasonable extension period to allow

13 amortization of these environmental improvement

14 and energy efficiency projects.

15 ‘‘(5) Ketchikan is the fourth largest city in

16 Alaska. Its economic and job base are extremely de17 pendent upon the continuation of the contract, which

18 provides the principal source of year-round employ19 ment in the area. The purchaser has stated among

20 its goals and objectives the following:

21 ‘‘(A) Continuation of a long-term commit22 ment to Ketchikan and southeast Alaska, in23 cluding maintenance of a stable Alaskan

24 workforce, utilization of Alaskan contractors,
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1 vendors, and suppliers to permit those busi2 nesses to hire and maintain Alaskan employees.

3 ‘‘(B) Participation in the Forest Service’s

4 land management planning process with other

5 users so that the process may be completed ex6 peditiously with maximum information.

7 ‘‘(C) Adherence to sound principles of mul8 tiple-use and sustained yield of forest resources

9 providing for the production of sustainable con10 tract volumes for the purchaser and the other

11 timber operators in southeast Alaska and the

12 protection and promotion of other forest uses,

13 including tourism, fishing, subsistence, hunting,

14 mining, and recreation.

15 ‘‘(D) Protection of air, water, and land, in16 cluding fish and wildlife habitat, through com17 pliance with applicable Federal, State, and local

18 laws.

19 ‘‘(E) Commitment to continue to explore

20 new processes and technology to maximize the

21 use of timber harvested and increase the value

22 of products manufactured in southeast Alaska.

23 ‘‘(6) The national interest is served by a policy

24 that accomplishes the proper stewardship of publicly

25 owned assets in the Tongass National Forest, a fair
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1 return to the United States for public timber in the

2 Tongass National Forest, and a proper balance

3 among multiple use interests in the Tongass Na4 tional Forest to enhance forest health, sustainable

5 harvest, and the general economic health and growth

6 in southeast Alaska and the United States in order

7 to improve national economic benefits. The national

8 interest is best achieved by fostering domestic forest

9 product markets and by modifying the terms of the

10 contract pursuant to subsection (c).

11 ‘‘(c) CONTRACT FAIRNESS CHANGES.—The contract

12 is hereby modified as follows:

13 ‘‘(1) EXTENSION.—The term of the contract is

14 extended by 15 years from June 30, 2004.

15 ‘‘(2) SALE OFFERING PLAN.—The contract

16 shall include a plan describing the amount of vol17 ume, location, and the schedule by which the pur18 chaser shall receive the timber required by para19 graph (3) for the remainder of the contract term.

20 The plan shall be coordinated with the Tongass

21 Land Management Plan.

22 ‘‘(3) VOLUME REQUIREMENTS.—The volume of

23 timber required under the contract shall be provided

24 in 5-year increments of 962,500,000 board feet,
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1 which the purchaser shall be obligated to harvest in

2 an orderly manner, subject to the following:

3 ‘‘(A) Until March 1, 1999, when the next

4 5-year increment is provided to the purchaser,

5 the Forest Service shall provide the purchaser

6 with at least 192,500,000 board feet per year

7 of available timber at a date certain each year

8 and shall maintain a supply of timber adequate

9 to insure the purchaser can reasonably harvest

10 192,500,000 board feet each year.

11 ‘‘(B) To ensure harvest in an orderly man12 ner, the contracting officer shall provide for the

13 construction by the purchaser of roads in por14 tions of the 5-year increment area of timber in

15 advance of the 5-year operating period by in16 cluding such roads in the environmental impact

17 statement prepared for the 5-year operating pe18 riod.

19 ‘‘(C) Timber selected for inclusion in the

20 5-year increment shall meet the mid-market cri21 teria.

22 ‘‘(4) APPRAISALS AND RATES.—The contracting

23 officer shall perform appraisals using normal inde24 pendent national forest timber sale procedures and

25 designate rates for the increments of timber to be
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1 provided. The rates shall not be designated at a level

2 that places the purchaser at a competitive disadvan3 tage to a similar enterprise in the Pacific Northwest

4 and those rates shall be the sole charges the pur5 chaser shall be required to pay for timber provided.

6 ‘‘(5) MEASUREMENT OF PROPORTIONALITY.—

7 The Forest Service shall measure proportionality

8 using the following criteria:

9 ‘‘(A) Measure for groups of all contiguous

10 management areas.

11 ‘‘(B) Measure proportionality by acres.

12 ‘‘(C) Measure proportionality over the en13 tire rotation age.

14 ‘‘(6) CONVERSION OR REPLACEMENT OF PULP

15 MILL.—The purchaser may convert or replace, in

16 part or in whole, its pulp mill with a facility the

17 manufactures any other value added product that

18 utilizes pulp logs as a raw material component.

19 ‘‘(7) UNILATERAL TERMINATION.—The unilat20 eral termination clause of the contract is eliminated.

21 ‘‘(8) SUBSEQUENT MODIFICATIONS.—Any

22 clause in the contract, as modified by this sub23 section, may be further modified only by mutual

24 agreement of the Forest Service and the purchaser
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1 and may be so modified without further Act of Con2 gress.

3 ‘‘(d) EFFECTIVE DATE FOR CONTRACT MODIFICA4 TION.—

5 ‘‘(1) EFFECTIVE DATE.—The modifications

6 made by subsection (c) shall take effect 45 days

7 after the date of the enactment of the Environ8 mental Improvement Timber Contract Extension Act

9 of 1996.

10 ‘‘(2) MINISTERIAL DUTY TO MODIFY THE CON11 TRACT.—Not later than such effective date, the con12 tracting officer shall revise, as a ministerial function,

13 the text of the contract to conform with the modi14 fications made by subsection (c) and implement the

15 modified contract. The contracting officer shall

16 make conforming changes to provisions of the con17 tract that were not modified by subsection (c) in

18 order to ensure that the modifications made by such

19 subsection are implemented.

20 ‘‘(e) TRANSITION TIMBER SUPPLY.—Timber volume

21 available or scheduled to be offered to the purchaser under

22 the contract in effect on the day before the date of the

23 enactment of the Environmental Improvement Timber

24 Contract Extension Act of 1996 shall continue to be of25 fered and scheduled under the contract as modified by
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1 subsection (c) along with such additional timber volume

2 as is necessary to satisfy the timber volume requirement

3 of 192,500,000 board feet per year.’’.

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