unprocessedlogsharvestedfromFederallands,thedeterminationsweredeemed
necessarytomaintainavitaldomesticwoodprocessingindustrycapableof
processingthesustainedyieldoftimberfromselectedareas(seefootnote4).
ThedeterminationsprovidedforU.S.primaryprocessingofallbutanannuallypre-
determined350mmbf(about1.6millionm3)ofFederaltimber,harvestedinwestern
WashingtonandwesternOregon(andafewareasintheeasternportionsofthetwo
states).
19
Anycantssawnontwosides,squaresthatwere8inches(20.32cm)or
lessinthicknessthroughthesawndimension,smallersawnproducts,veneer,pulp,
orchips,wereconsideredtohavereceivedprimaryprocessing.
20
Logexports
originatingonFederallandswithintheGraysHarborFederalSustainedYieldUnitand
theSheltonCooperativeUnitwerenotincludedinthe350-mmbf(1.6-millionm3)
exemptionbecausethesustainedyieldagreementsalreadymandated95percent
primarymanufacturewithintheunits.
Aplanaddressingtheoperatingandadministrativedetailsofthedeterminations
accompaniedthejointdeterminations.Theplanincludedadefinitionofprocessed
productsandproceduresfordeclaringcertainspeciesexempt.Subsequently,the
SecretariesexemptedAlaska-cedarandsalvagePort-Orford-cedar(exceptforselect
arrow-shaftmaterial),becausethosespecieswereconsideredsurplustodomestic
needs.
TheSecretaryofAgriculturebasedhisauthorityforissuingthejointdeterminationon
the1897OrganicAct.
21
TheSecretaryoftheInteriorbasedhisauthorityonthe
OregonandCaliforniaRailroadAct.
22
Below,aswithsubsequentactsdiscussed,aretheactionstakenbytheprimary
overseeingagencies,theUSDAForestServiceandtheUSDIBureauofLand
Management(BLM).TheagencyactionsforAlaskadifferandwillbeaddressedlater.
19
SecretaryofAgriculture.1968.Adeterminationbythe
SecretaryofAgricultureconcerningprimaryprocessingof
timberfromNationalForestsofthePacificNorthwest.
SpecifiedintheSecretaryofAgriculture’sApril16,1968,
memorandumtotheChiefoftheForestService. Onfilewith:
PacificNorthwestResearchStation,4043RooseveltWay,
NE,Seattle,WA 98105.
20
Austin1969:1(Seefootnote3).
21
Therehasbeenmuchconfusionoverwhatauthoritymany
oftheseactionsreflect.TheSecretariesconsideredissuing
thejointdeterminationunderthepreviouslymentionedActof
1926(seefootnote10). However,theywerecounseledthat
therewasnojustificationintheactbecauselocaltimber
supplieswouldnotbeendangered.Notuntil1976,whenthe
NationalForestManagementAct(seefootnote11)was
passed,withitsrepealofpreviousinterstate-salerestrictions,
didtheOrganicActbecomerelevant.
22
OregonandCaliforniaRailroadActof1866,July26,1866
c.242;14Stat.239.
7
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Agencyregulations23
AlthoughthejointdeterminationswerescheduledforreviewandrenewalinJune
1969,therulesweresupersededbytheMorseAmendment,effectiveJanuary1,1969.
MorseAmendmenttotheForeignAssistanceActofOctober8,1968
24
Keyprovisions
ExtendedexportprohibitiontoallStateswestofthe100thmeridian,including
Alaska.
Distributed350mmbf(1.6millionm3)allowableexportallotmentamong
Washington,Oregon,andCalifornia.
PermittedtheSecretariesofAgricultureandtheInteriortodeclarecertain
amountsofspecificspeciessurplustodomesticneeds.
AuthorizedtheSecretariestoissuerulesandregulationsregardingsubstitution.
AuthorizedtheSecretariestoexcludesalesoflessthanUS$2,000attheir
discretion.
ForestService
SomeoftheForestService’searliestreg-
ulationsonlogexportrestrictionsinthe
lower48Statesoriginatedasaresultof
the350-mmbf(1.6-million-m
3
)exportex-
emptionallocatedintheSecretaries’joint
determinationsof1968.TheForestSer-
vicewasallotted290mmbf(1.3million
m
3
)anddistributedthisexportallowance
throughouttheNationalForestsin
WashingtonandOregonbasedonthe
timberexportsfromthoseforestsinthe
previousyear.Ofeligibletimbersales
overUS$2,000,Washingtonreceived
199mmbf(900,000m
3
)andOregon’s
NationalForestswereallocated91mmbf
(410,000m
3
).
TheForestServicedidstipulatethatifa
restricted(ornonexempt)timbersaledid
notreceiveanybidswhenoffered,then
thesalecouldbeofferedagainwithout
theprimarymanufacturingrequirement.
BureauofLandManagement
ThefirstregulatoryactionsbyBLMon
logexportrestrictionsstemmedfromthe
1968jointdeterminations.TheBLMchose
todistributethe60mmbf(270,000m
3
)of
exemptsalestofivewesternOregondis-
tricts(becausemostBLMlandisin
Oregon)inproportiontoeachdistrict’sal-
lowablecut.Theexportabletimberallow-
ancewasallocatedtosales>100,000
boardfeet(bd.ft.;450m
3
)withstrictcon-
ditions.Allsalesunderthatvolumewere
requiredtoreceive95to100percentof
theirprimary,completedmanufacturenot
justdomestically,butwithintheStatesof
Washington,Oregon,andCalifornia.
Poles,pilings,andstructuraltimberswere
consideredexportablebyboththeForest
ServiceandBLM;however,BLMrequired
writtenapprovalbeforethematerials
couldbeshippedfromtheregion.
23
Austin1969:6(seefootnote3).
24
ForeignAssistanceActof[October8]1968,82Stat.966,
pt.IV.
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ScheduledtoexpireonDecember31,1971,theprovisionsestablishedintheMorse
Amendmentwererenewedthroughtheendof1973byCongressasanamendment
totheHousingandUrbanDevelopmentActof1970.
25
DepartmentoftheInteriorandRelatedAgenciesAppropriationsActs—
Keyprovisions
Alaskanolongerincludedinexportrestrictions.
Secretariesdirectedtoenactregulationstodefineandpreventsubstitutions.
AlllogexportsfromFederallandsprohibited.
Duringthelast2yearsoftheMorseAmendment,economicconditionsagainchanged
thetimbermarket.AnunprecedentedhousingboomoccurredinboththeUnited
StatesandJapan,whichcausedthedemandfortimbertobemuchgreaterthanthe
supplyavailable.Bytheearly1970s,correctingforthesubsequentdomesticshortage
oftimberbecameatopicofgreatdebate.Manyproposalsforlimitinglogorlumber
exports,orboth,fromstate,Federal,andevenprivatelandsweresubmittedto
Congressforconsiderationaspossiblesolutions.
FinallyinOctober1973,ariderwasattachedtotheDepartmentoftheInteriorand
RelatedAgenciesAppropriationsActof1973,
26
whichcompletelybannedtheuseof
fundsappropriatedtoFederalagenciesforprocessingFederaltimbersaleswherethe
timbermaybeexported.ThefirstAppropriationsActriderstated:
NopartofanyappropriationunderthisActshallbeavailabletotheSec-
retariesoftheInteriorandAgricultureforuseforanysalehereaftermade
ofunprocessedtimberfromFederallandswestofthe100thmeridianinthe
contiguous48StateswhichwillbeexportedfromtheUnitedStatesor
whichwillbeusedasasubstitutefortimberfromprivatelandswhichis
exportedbythepurchaser.
Inessence,theprovisionbannedtheexportofanyunprocessedtimberfromall
Federallandswestoflongitude100W.inthecontinentalUnitedStates.TheAp-
propriationsActdidnotapplytoAlaska,sotheauthorityforAlaska’stimberregula-
tionsrevertedtotheActof1897(16U.S.C.475;seefootnote7).
InthisandinsimilarifnotidenticalridersattachedtotheensuingDepartmentofthe
InteriorandRelatedAgenciesAppropriationsActs,theSecretariescouldnotauthorize
logexportsincasesdeterminedtobesurplustodomesticneeds,ashadbeenallowed
bytheActofApril12,1926(seefootnote10).TherideralsodirectedtheSecretaries
toenactregulationstodefineandpreventsubstitution,versusmerelyauthorizingthem
todoasprescribedintheMorseAmendment.
SubstitutionrestrictionswerenowsoughttodeterFederaltimberpurchasersfromsub-
stitutingFederaltimberforprivatetimberintheprofitableexportmarket.Thecongres-
sionalintentregardingsubstitutionwasnottocontrolapurchaser’sbuyingandselling
25
HousingandUrbanDevelopmentActof1970,P.L.91-609,
TitleIX,84Stat.1817(1970).
26
DepartmentoftheInteriorandRelatedAgencies
AppropriationActof[October4]1974,Sect.301.
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orincreasedexportswhilecontinuingto
purchaseFederaltimberwithinthemar-
ketarea.TheincreaseinFederaltimber
purchasesorexportswasbasedona
purchaser’s“historicallevel,”definedas
110percentoftheaverageannualvol-
umeoftimberpurchasedandexported
bythebuyerduring1971,1972,and
1973.Potentialpurchasers,therefore,had
toprove,beforetheywouldbeallowedto
bidonFederaltimber,thattheywerenot
practicingsubstitution.Andtheonlyway
togainortransferthe“historicallevel”
wastoacquireaqualifiedpurchaser’s
entirecompany.
Tofurtherclarifytheregulationsand
incorporatechanges,inApril1981,the
ForestServiceupdatedTitle36inthe
CodeofFederalRegulations,again.The
ForestServicepublishedrevisedregula-
tionsintheFederalRegisterregarding
theexportoftimberfromNationalForest
Systemlands,substitutionofsuchtimber,
clarificationofthedefinitionoftributary
area,andadefinitionofunprocessed
westernredcedar(
Thujaplicata
Donnex
D.Don).
27
Threeyearslater,in1984,theForest
Serviceaddressedanddefinedthird-party
substitutionandassessedthefeasibility
ofprohibitingthatpractice.TheActing
AssociateDeputyChiefoftheForestSer-
vicedefinedthird-partysubstitutionas
“theacquisitionofNationalForesttimber
fromaNationalForesttimbersalepur-
chaserbyafirmwhichisnoteligibleto
purchasetheNationalForesttimber
directlybecausedirectpurchasewould
constitutesubstitutionunder36CFR
223.160.”
28
27
Hines1987:4-5(seefootnote5).
28
U.S.DepartmentofAgriculture,ForestService.
1984.LetterofJanuary11fromActingAssociate
DeputyChief,ForestService,toGeneralAccount-
ingOffice,askingthefeasibilityofenforcingthird-
partysubstitution.Onfilewith:PacificNorthwest
ResearchStation,4043RooseveltWayNE,
Seattle,WA98105.
12
Itwasdecidednottoprohibitthepractice,
however,forfearthatiswouldbetoo
difficulttoenforceandwouldinhibitdo-
mestictrade.“ TheForestServicebe-
lievesitcouldnotenforceabanonthird-
partysubstitutionwithoutadditionallegal
authorityandstaff.”
29
TheBLMagreedwiththisfinding.Itwas
alsobelievedthatifthepracticewere
banned,somecompaniescouldacquire
NationalForesttimberatlowerprices
becauseofdecreaseddemandandcom-
petition,andhencethelowerpriceswould
resultinlessgovernmentrevenueand
disrupttraditionallogmarketsandbusi-
nesspractices.
30
Thefollowing,thoughsupersededby
theregulationsaccompanyingthe
ForestResourcesConservation and
ShortageReliefActof1990and
1993,isstillcontainedinthecodeof
regulations:TheDepartmentofthe
InteriorandRelatedAgenciesAp-
propriationAct,1976(P.L.94-165)
prohibitstheuseoffundsappropriated
thereunderforsaleofunprocessed
timberfromFederallandswestofthe
100thmeridianinthecontiguous48
Stateswhichwillbeexportedfromthe
UnitedStatesorwhichwillbeused
asasubstitutefortimberfromprivate
landswhichisexportedbythe
purchaser.Thelawalsoprovidesthat
theexportrestrictionshallnotapply
tospecificquantitiesofgradesand
speciesoftimberwhichtheSecretary
oftheInteriordeterminestobe
surplustodomesticlumberand
plywoodmanufacturingneeds.
31
29
U.S.GeneralAccountingOffice.1985.[Title
unknown].ReportpublishedJanuary28.Onfile
with:PacificNorthwestResearchStation,4043
RooseveltWayNE,Seattle,WA98105.
30
U.S.DepartmentoftheInterior,BureauofLand
Management.1985.Potentialimpactsoftightening
ForestServicelogexportrestrictions.Washington,
DC:Resources,Community,andEconomic
DevelopmentDivision.34p.
31
U.S.CodeofFederalRegulations.Title43,
ChapII,Part5400throughSec.3(c)(October1,
1992)50.
13
Whiledemandforlogexportswasincreasingexponentiallythroughoutthe1970sand
early80s,environmentalistswerearguingthatlargeareasofwildlifehabitatwere
beingharvestedandexportedtoforeignmarkets,andsmallmillswereclamoringthat
theycouldnotcompetitivelybidforprivateorStatetimberagainstthelargerfirmsand
Japaneseinvestors.Inresponsetotheseconcerns,Congressbeganconsideringfur-
thercurbsonlogexports.Numerousbills,somesimilartothosedraftedintheearly
1970s,wereintroducedintotheHouseandSenatetolimitlogexports.
Onebilleventuallydidpass.ApprovedAugust20,1990,andeffectiveJanuary1,
1991,theForestResourcesConservationandShortageReliefActof1990(FRCSRA
1990;seefootnote33)essentiallyprohibitedlogexportsfromallpubliclandswestof
longitude100W.inthelower48States,exceptforaconditional25percentof
WashingtonState-ownedtimber.Withtheexceptionoftheexportrestrictionapplying
specificallytounprocessedwesternredcedarenactedin1982,FRCSRA1990was
thefirstFederalattempttoimposeablanketrestrictiononunprocessedtimberfrom
FederalandStatelands.
Basedon“evidenceofashortfallinthesupplyofunprocessedtimberinthewestern
UnitedStates”(seefootnote33),thegoalofFRCSRA1990wastopromoteconser-
vationofforestresources,ensurethattheforestresourcesintheUnitedStateswere
notexhausted,andguaranteeaconstantandavailablesupplytomeetdomestic
needs.Inessence,FRCSRApermanentlyrenewedtheprovisionintheDepartmentof
theInteriorandRelatedAgenciesAppropriationsActs(seefootnote26)prohibiting
exportsonFederallands,therebyeliminatingtheriskoflegalactionforlegislating
withinanappropriationprovision.Thisactalsofurtherrefinedandrestrictedvarious
methodsofsubstitutionandprohibitedthepurchaseofStatetimberwiththeintentto
exportitinunprocessedform:
35
NopersonwhoacquiredunprocessedtimberoriginatingfromFederallands
westofthe100thmeridianinthecontiguous48Statesmayexportsuch
timberfromtheUnitedStates,orsell,trade,exchange,orotherwisecon-
veysuchtimbertoanyotherpersonforthepurposeofexportingsuchtim-
berfromtheUnitedStates,unlesssuchtimberhasbeendetermined...tobe
surplustotheneedsoftimbermanufacturingfacilitiesintheUnitedStates.
TheactprovidedfortheSecretaryofCommercetodeclarecertainvolumes,quanti-
ties,andspeciessurplusonFederallands,ascantheSecretariesofAgricultureand
theInterior.Allspeciesdeterminedtobesurplusaretobesubjecttoreviewatleast
onceevery3years.Theblanketprohibitionalsoincludedindirect(forexample,third
party)substitution,inadditiontodirectsubstitution,forthefirsttimeinthehistoryof
theFederalregulations.
Congressalsodeterminedthatnopersoncould“purchasefromanyotherperson
unprocessedtimber...ifsuchpersonwouldbeprohibitedfrompurchasingsuchtimber
directlyfromadepartmentoragencyoftheUnitedStates”(seefootnote33),thus
makingindirectsubstitutionillegal.
35
FRCSRA1990,TitleIVSect.489(seefootnote33).
15
Undertheappropriationsridersofthe1970sand80s,directsubstitutionhadbeen
allowed,dependingonthesupervisoryagencywithcertainspecificationsinregardto
theirhistoriclevel.Theproportionofallowablesubstitutionavailabletopurchasersin
earlieryearsthroughpurchasingandexportingquotaswasprecludedwiththislegisla-
tion,thoughalimitedtransitionperiodwasincorporated.Sourcing(ormarket)areas
arethealternativesinFRCSRA1990tothehistoricalquotas.
Thesourcingareas,establishedinpredeterminedgeographiclocations,alloweda
purchaserwithmultipleoperationsinmorethanonegeographicregiontopurchase
publictimberfordomesticprocessing,whilepurchasingprivatetimberforexportas
longasithadbeenharvestedinadifferentmarketorsourcingarea.
Bydefiningsourcingareas,theactallowedapurchaserwithmultipleoperationsto
purchaseFederaltimberandprivatelyownedtimberwithoutcommittingsubstitution.
Forexample,firmswithtimberoperationsinbothOregonandinWashingtoncanpur-
chaseFederaltimberinasourcingareaofeasternOregonforprimarymanufacture
whilealsopurchasingprivatetimberinWashingtonforexport.Thisisconsideredfeasi-
blebecauseitwouldbeuneconomicaltotransporttimberfromOregontoWashington
inordertosubstituteitforprivatetimberexports.
AccordingtotheinterimrulesestablishedwithinFRCSRA1990,tobeapprovedfora
sourcingarea,aperson(company)mustnothaveexportedunprocessedtimberfrom
privatelandswithinthatsourcingareaintheprevious24months;theyalsocouldnot
exportthattimberfromthatareaonceapproved.
Duringthefirstyearafterenactment,somepurchasersofpublictimberwereableto
exporttheirtimberunderagrandfatheringclauseofsortsapplyingtotheShelton
CooperativeSustainedYieldUnit,whichharvestsFederalandprivatetimber.
36
The
grandfatherclausepermittedtheSimpsonTimberCompany,thecorporatepartnerin
theonlyFederalcooperativeagreement,tosubstituteavolumeequalto66percentof
theirhistoricalexportquotaduringfiscalyear1989.By1995,theSheltonCooperative
Unitwastohavegraduallyreducedsubstitutionvolumefromthecooperativeforest
untilnomoreFederaltimberwassubstitutedforexportinunprocessedform.
ThemostdrasticmeasureofFRCSRA1990,however,wastheprovisionprohibiting
State-ownedtimberfromexportwithoutfirstundergoingprimaryprocessing.Thiswas
thefirstFederalprovisionabsolutelyprohibitingtheexportofState-ownedtimber.
Washington,becauseitwassellingmorethan400mmbf(1.8millionm3)annually,
wastheonlyStateallowedtocontinuetosellsomeofitstimbertoexportingpur-
chasers.AllotherStateswestofthe100thmeridianinthecontinentalUnitedStates
wereorderedbytheSecretaryofCommercetoprohibittheexportofunprocessed
timberoriginatingfrompubliclands,effectiveJanuary1,1991.
Washingtonwasorderedtoprohibit75percentofitsannualsalesfromexportunless
thetimberfirstmettheprimaryprocessingrequirement.Determiningthespecies,
grade,andgeographicoriginofunprocessedtimber,representativeofitstotaltimber
salesprogram,wasuptotheState.Yet,ifthesalesvolumesfortheStatefellbelow
36
Theactactuallyappliestocooperativesustainedyieldunits
ingeneral;however,theSheltonUnitistheonlyonecreated
beforeoppositionfromotherprivatecompaniesstopped
formationofadditionalcooperativeunits,becausethe
companiesclaimedinequitiesinbiddingpracticeswere
imposedbysuchagreements.
16
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