Opponentsofthevariousstatutoryandadministrativeprovisionsprohibitingexportsof
logsharvestedonWesternStatelandsincludedStateagenciesthemselves.Several
Statesholdlargeacreagesoftimberland,intrustforschools,universities,andother
stateinstitutions.Revenueswereaffectedsharplybyremovalofexportmarkets.Even
theStateForesterofOregon,whooversawfairlystrictexistingStatelogexport
policiesstatedthat:
39
Implementationoftheserulesmayreducecompetitionfortimbersalesat
auctionsandcouldreducethepricesbidforStatetimbersales.Reduced
timbersalepricescouldresultinreducedrevenueflowstotheStateCom-
monSchoolFund,tothecountiesandlocaltaxingdistrictswithBoardof
Forestrytimber,andtotheStateDepartmentofForestry.Itisimpossible
toestimatethemagnitudeofpossiblepriceandrevenuereductions...[or]to
estimatewhatbenefitsmayresulttolocaleconomiesbymakingmore
timberavailablefordomesticprocessing.
Stateagenciestookumbragewiththewaytheactwasworded.TheFRCSRA1990
statedthatthe“GovernorofeachStatetowhichthistitleapplies,orsuchotherState
officialastheGovernormaydesignate,
SHALL
...issueregulationstocarryoutthe
purposesofthissection”[emphasisadded].
40
Therefore,severalWashingtonState
counties,andtheWashingtonStateBoardsofEducationandNaturalResources
soughtajudicialdeclarationholdingthatsomeoftheprovisionsofFRCSRA1990
wereunconstitutional.
TheDistrictCourtsupportedtheFederalbanonlogexportsfromWashingtonState
lands.ButonMay4,1993,theNinthCircuitCourtofAppealsinSanFranciscore-
versedthislowercourt’sdecision.
TheunanimousdecisionbytheNinthCircuitCourtfoundunconstitutionaltwopartsof
theFRCSRA1990provisionlimitingexportsfromStatelands.Thefirstsectioniden-
tifiedbannedexportsofpublictimberfromStatesinthewestwithexportvolumesless
thanorequalto400mmbf(1.8millionm
3
;section620c(b)(1)).Theothersectionpro-
hibitedtheexportof75percentofthelogsharvestedfromWashingtonState-owned
timberlandsandallowedtheSecretaryofCommercetobanexportsofunprocessed
timberfromWashingtonStatepubliclands(section620c(b)(2)-(c)).Thecourtruled
thattheseprovisionsviolatedtheTenthAmendmenttotheU.S.Constitution,which
39
Beyerle,J.Michael.1990.Statementissuedinthematter
oftheadoptionofrulesgoverningtheexportofunprocessed
logsfromstatelands,October15:ReportingStatutory
Authority,StatementofNeed,PrincipalDocumentsRelied
Upon,andStatementsofFiscalImpact.MichaelJ.Beyerle,
DeputyStateForester.Salem,OR:OregonStateDepartment
ofForestry:1-2.
40
FRCSRA1990:17(seefootnote33).
18
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BureauofIndianAffairs
TheBureauofIndianAffairs(BIA)overseesthe56.2millionacres(22.7millionha)of
landthatisheldintrustbytheUnitedStatesgovernmentforNativeAmericansand
AlaskaNatives.Becausetheselandsareheldintrustforprivategroupsandindivid-
uals,thelandsarenotsubjecttoFederalrestrictionsbanninglogexports.Ofthe278
FederalIndianreservations,140areentirelytriballyownedandtherebynotsubjectto
FederalrestrictionsapplyingtoFederallands.
ExportsfromNativeAmericanlandsarequitesmallincomparisontothetotalexports
fromthePacificNorthwest.ThereservationsheldintrustbytheGovernmentthatare
harvestingtimberinthePacificNorthwest,Idaho,Montana,andCaliforniacurrently
donotexportlogs.Thelargestharvestingreservation,aprivatelyownedNativecor-
porationinCalifornia,iscurrentlyexportinglogs,however,andtakingadvantageof
thedifferenceinthemarketvaluesbetweentheexportanddomesticmarkets.
Metlakatla,Alaska— InAlaska,theMetlakatlaTribeonAnnetteIsland,whichcon-
tractsouttimberandlabor,isontheonlyNativeAmericanreservationinthatState.
TheMetlakatlacommunity,locatednearKetchikan,istriballyownedandthusnotsub-
jecttoeitherFederaltimberexportrestrictionsoroversightbyBIA.AllotherAlaska
NativetimberlandsinAlaskaareheldbyNativecorporationsorindividuals,asare-
sultoftheNativeClaimsSettlementAct;
44
therefore,thereisnoneedforanyBIA
regulationsregardingtimberexportsfromNativeAmericanlandsinAlaska.
BecauseBIAoverseessalesforNativeAmericanandAlaskaNativetrustlands,ithas
noexportregulationsofitsown;however,eachindividualreservationhastherightto
autonomouslyimposerestrictions.Inthatlight,ascertaintribeshavebeenrecognized
recentlyandhaveacquiredFederalland,ortreatydisputeshavebeensettled,some
tribesandreservationshaveimposedtheirownrestrictionstocompletethetransac-
tionwithouthobblingthelocaleconomy.TheseagreementshavebeenbetweenBIA
andthetribesoftheWarmSpringsIndianReservation(centralOregon),theGrand
RondeReservation(westernOregon),andtheQuinaultReservation(westernWash-
ington):thelogexportrestrictionsappliedtothefirsttwowereimposedbythetribes
involved;thethirdwasbycongressionalmeasures.
WarmSpringsReservation— TheMcQuinnStripbordersonthenorthandwest
sidesoftheWarmSpringsIndianReservationincentralOregon.TheMcQuinnStrip
regulationscameaboutasaresultofasurveydisputesettlementagreeduponin
1972.Inthesettlement,thetitleoftheformerFederalland,whichformedpartsoftwo
NationalForests,wasdeededtotheConfederatedTribesoftheWarmSprings
Reservation.Yet,toretainpreviousmarketingpatternsandavoidsevereeconomic
changesintheareaafterthesettlement,anagreementwasdrawnupspecifyingthat
thestripbedesignatedfordomesticprimarymanufactureuntilJanuary1,1992.
45
Sincetheexpirationofthisagreement,logshavebeenexportedfromtheselands,
takingadvantageofthehigherpricetobegainedfromtheexportbuyer.
44
AlaskaNativeClaimsSettlementActofDecember18,
1971,P.L.92-203,asamended;85Stat.688;43U.S.C.
1601etseq.
45
Hines1987:7(seefootnote5).
21
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GrandRondeReservation— TheGrandRondeTribewasformallyrecognizedbythe
Federalgovernmentin1986,whichallowedfortheformationofareservationonland
acquiredfromBLM.Thereservationfacedoppositionfromlocaltimbermillsandorga-
nizationsbecauseitwastakingawaypartoftheirformertimbersupply.Theopposition
wasinsistingthataprimarymanufactureclausebeincorporatedintothetribe’sreser-
vationact.Whileclaimingthistypeofactionwasillegal,thetribevolunteeredaMem-
orandumofAgreementstatingthattheywouldnotexportlogsfromthereservationfor
asettime.SignedbytheBIA,theagreementisnowinfullforceandeffectfor20
yearsfromthedateoftheformationoftheGrandRondeReservationin1988.The
20-yeartimeframewillexpireaboutwhentheadjacentTillamookForestisexpected
toreachharvestableage.
ThisagreementandtheonefortheMcQuinnStriporiginatedthroughsettlementof
courtaction;theQuinaultReservationhasadifferentstory.
QuinaultReservation— TheQuinaultReservationacquiredadditionallandasaresult
ofaboundarydisputedatingbacktothetreatysettlementforthenorthernboundary.
Conditionalona1988Federalcourtactiongranting11,905acres(4762ha)tothe
QuinaultReservationfromtheOlympicNationalForest,timberfromthislandwasre-
quiredtoundergoprimaryprocessingintheGraysHarborarea(nearthereservation)
for20years.ThisagreementwasaccomplishedbyanactofCongressandnot
throughajudicialsettlement,astheothershadbeen.
Becauseoftheseprimaryprocessingdesignations,BIAadoptedtheForestService’s
definitionofprocessedversusunprocessedtimbertodefineprimarymanufactured
items:thatis,lumber,chipsorpulp,greenveneer,pilesandpiling,orcants8-3/4
inches(22.2cm)thickorlessareconsideredprocessedtimberproductsbyBIAfor
NativeAmericanlands.
Alaska
Keyprovisions—
OrganicAdministrationActof1897isthepredominantrestriction.Logexports
fromFederallandsinAlaskaincludeallroundlogsbeingsoldoutsidethe
State’sboundaries.
FederalForestServiceandBLMregulationsforAlaskadifferfromthecon-
tinentalUnitedStatesbecauseof(1)adifferenteconomicsituationand(2)the
omissionofAlaskafromFederalregulationssince1926(exceptfor1969-73).
MorseAmendmentprohibitedlogexportsfromAlaskabetween1969and1973.
TheBureauofIndianAffairs(BIA)overseesFederallandsfortribalreserva-
tions.BIAdoesnotlimitorprohibittheexportoftimberfromtheselands.
TheonlyFederalbaninthepast25yearsonlogexportsthatappliestoNationalFor-
estlandsinAlaskawastheMorseAmendment,whichspecificallyincludedtheState
duringitsenactmentbetween1969to1973.Asaresult,theauthorityforagencyreg-
ulationsregardinglogexportsfromAlaskaforallotheryearshasbeenbasedonthe
OrganicAdministrationActof1897(16U.S.C.475,551;seefootnote7),although
22
otherlawsandregulationssuchastheNationalForestManagementActof1976(See
footnote11)andtheMultipleUseAct
46
havefurtherrefinedtheprovisionsofthe1897
act.AsspecifiedintheOrganicAdministrationActof1897,logexportsfromFederal
landsincludeallroundlogexportsfromtheState,notjustthoseboundforforeign
ports.SologsshippedfromAnchoragetoSeattle(orotherlower48andHawaiian
ports)wereandarestillconsideredanillegalexport.
ForestService— TheForestServiceimposedthefirstlogexportregulationsre-
gardingAlaskain1928.ThepurposewastoprovideafoundationfortheState’s
localmarkets:jobs,communities,andproducts.“Theestablishmentofnewandthe
expansionofexistinglocalwood-usingplantsshouldbefosteredenergeticallyas
Alaskaisbadlyinneedofmoreindustries,”waswrittenin1928,
47
justifyingtheFor-
estService’spolicyregardingAlaska.Eventoday,ForestServicelogexportpolicyfor
Alaskarecitesneedstoensurethedevelopmentandcontinuedexistenceofadequate
woodprocessingfacilities;toaccommodatetheNationalForestsofAlaska;tomeet
thestandardsofthemarketsserved;andtoencouragedomesticeconomicgrowth
anddevelopmentwithinAlaska.
Thefirstrestrictions,basedontheActofApril13,1926,prohibitedspruceand
hemlockexportsfromtheStateunlessthetimberhadreceivedprimarymanu-
facturing.ThispointiselaboratedonbyW.B.Greeleyinthememorandumof1928
(seefootnote47):
Westernhemlock[
Tsugaheterophylla
(Raf.)Sarg.]andSitkaspruce[
Picea
sitchensis
(Bong.)Carr.]aretheimportantcommercialtreesoftheNational
ForestsofAlaska.Thesespeciesnowfurnishmostoftherawmaterialfor
thelocalsawmillindustryandtheyaretheoneswhichwillsup-
portthepulpandpaperindustrywhichisnowdeveloping.Whilethereisa
largesupplyofspruceandhemlock,onlyasmallpercentofthesespecies
consistsofhighgradematerialsuitableforexport.Thisbettermaterial,
however,addsvaluetothelargequantityoflessdesirablematerialand
shouldbeheldsothatthelocalpaperandlumberindustrywillhavea
moreattractivefieldtoworkin.
46
TheActof1897(seefootnote7)statesthat“forthe
purposeofpreservingthelivingandgrowingtimberand
promotingtheyoungergrowthonnationalforests,the
SecretaryofAgricultureundersuchrulesandregulations
asheshallprescribe,maycausetobedesignatedand
appraisedsomuchofthedead,matured,orlargegrowthof
treesfounduponsuchnationalforestsasmaybecompatible
withtheutilizationoftheforeststhereon....”Section2ofthe
MultipleUseActprovidesthat“theSecretaryofAgricultureis
authorizedanddirectedtodevelopandadministertheremov-
ablesurfaceresourcesoftheNationalForestsformultiple
useandsustainedyieldoftheseveralproductsandservices
obtainedtherefrom.”CitationfromGeneralCounselOpinion
No.126,December31,1964,p.15-16,byJohnC.Bagwell,
GeneralCounsel,citing36CFR221.3(c)inthe1946CFR.
47
Greeley,W.B.1928.MemorandumdatedJanuary6
addressedtoandapprovedbyW.M.Jardine,Secretaryof
Agriculture.Copyonfilewith:PacificNorthwestResearch
Station,4043RooseveltWayNE,Seattle,WA98105.
23
Thiswasthefirstwrittenpolicythatbannedallspruceandhemlockexports,which
hadactuallybeenbannedinpracticesince1926.Thispolicycontributedtothedevel-
opmentoftheratherill-fatedpulpandpaperindustryinAlaskaduringthe1920s.The
GreeleymemovoicedforestindustryandForestServicefearsthatif“unlimitedexport
ofthelogs[was]permittedfromtheTerritory...thelocaldevelopmentofthepaperin-
dustry[was]likelytoberetardedmaterially.”Pulpandpapercompanieshadtobuild
millsinAlaskatogettheirsupplies,becausetheForestServicestaunchlysupported
theexistinglogexportban.Unfortunatelyforthepulpandpaperinvestors,although
lumberwasvaluedattwicethevalueofrawlogs,andnewsprintpaperatsixtimes
(seefootnote46),transportationfromthesemillstoPugetSoundandBritishCol-
umbiasoonproveduneconomical.Withanunstablefinancialbasisfortheseven-
tures,
48
thepulpandpapermillsclosedbythetimeoftheGreatDepressionin1929.
Federalpolicyneverthelesshasreliablyencouragedeconomicdevelopmentin
Alaska.ThesamememorandumtoAgriculturalSecretaryJardine(seefootnote46)
requestingpermissiontoregulatetheexportoflogsfromtheAlaskaTerritory,stated
thatthereasonregulationwasneeded“wastoprotectthedevelopmentofthe
Territory’spioneereconomy.”
Greeley’srequesttoprohibittheexportoftimber,especiallyspruceandhemlockfrom
publiclandsinAlaska,wasgranted.Andalthough“logshipmentfromAlaskatothe
StateofWashington,BritishColumbiaandtheOrient[had]beendiscussed...inthe
pastsevenoreightyears”(seefootnote46),theForestServiceinAlaskawashoping
tomaintainandestablishmoreindustriesinthiseconomicallyvolatileregion.Iflogex-
portswereallowed,thatwouldleadtofewerjobandmarketopportunitiesinthelocal
market.
NootherlegislativeactivityoccurredregardingAlaskalogexportregulationsuntilthe
1940s.In1946,theForestServicecodifiedtheregulationsthatincorporatedthepro-
visionsandspecificexportallowancestobegivenforcertainproductconsiderations
(seefootnote46):
TimbercutfromtheNationalForestsinAlaskamaynotbeexportedfrom
Alaskaintheformoflogs,cordwood,bolts,orothersimilarproducts
necessitatingprimarymanufactureelsewherewithoutpriorconsentofthe
RegionalForesterwhenthetimbersaleprojectinvolvediswithinhis
authorizationtosellortheChiefoftheForestService,whenalarger
timbersaleprojectisinvolved.Indeterminingwhetherconsentwillbe
giventotheexportofsuchproductsconsiderationwillbegiven,among
otherthings,towhethersuchexportwill(1)permitamorecomplete
utilizationofmaterialonareasbeingloggedprimarilyforproductforlocal
manufacture,(2)preventlossorseriousdeteriorationoflogsunsalable
locallybecauseofanunforeseenlossofmarket,(3)permitthesalvageof
timberdamagedbywind,insectsorfire,(4)bringintouseaminorspecies
oflittleimportancetolocalindustriesdevelopment,(5)providematerial
requiredtomeetnationalemergenciesortomeeturgentandunusual
needsoftheNation.
48
Rakestraw,LawrenceW.1981.HistoryoftheUnitedStates
ForestServiceinAlaska.Anchorage,AK:AlaskaHistorical
Commission:108-113.
24
Theforemostreason,quotedintheGreeleymemorandum,forallowingexportcon-
siderationswastosalvagetimberharvestedforlocalmills,whichhadbecomeun-
salableforreasonssuchasasawmillfireorsuddenmarketdepression(seefootnote
47).Thefifthprovisionwasaddedspecificallytoaddressthetimberexportsallowed
tothelower48StatesduringWorldWarII.
DuringWorldWarII,FederalregulationsallowedfortheexportofSitkaspruce,which
washarvestedtotakeadvantageofitssturdinessandlightweight—keyfactorsinthe
airplaneindustryatthetime.TheForestServiceoversawtheremovaloflogsfromthe
TongassNationalForest,insoutheastAlaska,whichwereraftedtoPugetSoundfor
processing.Variousexportvolumeshavebeenreported,fromalmost40mmbfto100
mmbf(180,000to450,000m
3
)ofSitkasprucebetweenJune1942andOctober1944.
Afterthewar,anotherlulloccurredinregulationactivityregardingAlaska,which
lasteduntilNovember1958.Untilthen,Alaskahadbeensuccessfulinmaintainingthe
primaryprocessingrequirementswithinitsterritory.Buttomaintainthelocaleco-
nomy,“fromatimbermanagementpointofviewalone,itisdesirablethattimberhar-
vestingbeincreasedtocapacityassoonaspossible.Theexportpolicy,ascurrently
applied,tendstoworkagainstthisobjective.”
49
AccordingtocurrentForestServiceregulationsregardingtimberharvestedinAlaska,
theemphasisremainsonpromotingthelocaleconomybycontinuingthelogexport
prohibitiontootherStatesandtoforeignbuyers.Stillineffect,theregulationsof
October1974
50
differfromthepreviousrulesinthemethodofapprovalrequiredfor
exportexception.ApprovalnowrestssolelywiththeAlaskaRegionalForester,re-
gardlessofthesizeofthetimbersale,whereasthelargesalespreviouslyweresub-
jecttoapprovalbytheChiefoftheForestService.
TheregulationsofOctober1974alsorequiretheprimarymanufacturefortimberhar-
vestedinAlaskatomeetthesamespecificationsdefinedbytheForestServicefor
timberfromNationalForestsinthelower48States.Again,becausethetimberishar-
vestedinAlaska,theFederalprimaryprocessingrequirementappliestoexportsto
bothoverseasanddomesticdestinationsoutsideAlaska.
Stipulationswereaddedtothe1974regulationstoallowownersofharvestedtimber,
whocannotlocateabuyerintheirmarketarea,toapplyforanexportexemption.
Accordingtotheseregulations:
51
UnprocessedtimberfromNationalForestSystemlandsinAlaskamaynot
beexportedfromtheUnitedStatesorshippedtootherStateswithoutprior
approvaloftheRegionalForester.Thisrequirementisnecessarytoensure
thedevelopmentandcontinuedexistenceofadequatewoodprocessing
capacityintheStateforthesustainedutilizationoftimberfromtheNational
Forestswhicharegeographicallyisolatedfromotherprocessingfacilities.
49
Bruce,MasonB.1958.Officememorandumdated
November4fromAssistantRegionalForesterBrucetothe
RegionalForester,AlaskaRegion.Onfilewith:Alaska
Region,USDAForestService,Box21628,Juneau,AK99802.
50
CodeofFederalRegulationsTitle36,Part223.10.
51
36CFR223.161.
25
Theregulationsalsostipulatethat“substitutiondoesnotapplytoAlaska.”
52
Inaddi-
tion,inlimitedcircumstances,logsfromsalesappraisedatlessthanUS$2,000,may
beexportedaswellasAlaska-cedarlogsandbeachlogs.
TheForestServicealsohasmadespecialeffortstoassistAlaskainparticipatingin
globalmarkets.BecauseAlaskaisfarfrommostofitsmarkets,theStateisusually
thelasttobenefitfromtheeffectsofastrongglobaleconomyandthefirsttosuffer
inarecession.ToassisttheAlaskaeconomy,theForestServicehasprovidedwood
processingfirmsinAlaskawithmarketingalternatives.Before1959,alimitation,allow-
ingnomorethan15percentofsawmillproductiontobeproducedatthicknessgreater
than6inches(15cm),hadbeengraduallyestablished.
53
Theregulationschangedin
1959toallowcantstobesawnnogreaterthan8inches(20cm)thick.Then,askedin
1974toincreasethethresholdthicknesstothatpermittedinthelower48States,the
ForestServiceinAlaskaincreasedthemaximumallowablethicknessto8-3/4inches
(22.2cm)forexportcantsuntil1986.Now,themaximumthicknessforcantsfrom
Alaska
only
is12inches(30.5cm).
Asaresultofhearingsinthe1960s,theSecretariesofAgricultureandtheInterior
foundAlaskayellow-cedarandwesternredcedartobesurplusandexportable.Yetin
theearly1970s,whentherecessionhit,smallermillsarguedthatwesternredcedar
shouldnolongerbeconsideredsurplustolocaluse,andtheForestServiceconceded
totheirargument.KetchikanPulpCompany,though,appealedtherestrictiononwest-
ernredcedarexports.Thesamesmallmillsrequestingtheactionwerethenpolled.As
aresultofthesurvey,itwasdeterminedthatnoneofthesemillswasusingwestern
redcedarandthereforetherewasnolocaldemandforthatspecies.Consequently,in
1976,anewconditionalbanontheexportofwesternredcedarwasimposed,based
solelyonwhetherornotadomesticmarketexists(heredefinedastwoormoremanu-
facturersbuyingwesternredcedar.)Since1976,westernredcedarhasbeenfreelyex-
portable.
54
ThepolicyallowingexportofAlaska-cedar(yellow-cedar)remainsineffect.
AnotherdisadvantageforAlaskaisthattheavailableoldgrowthisoftendefective,with
over50percentofsomeharvestsunsuitableforsawingandthereforeoflimitedmar-
ketvalue.Othermarketaccommodationswerethereforemade,suchasincluding
chipsintheForestServicedefinitionofprimarymanufactureinAlaska;whichhad
previouslybeenbannedfromexport.Removaloftheexportban
55
...wouldprovideanexpandedmarketopportunityforthesaleofchipsmade
fromlogsnotsuitableformanufactureintolumberproducts.Thepresent
installedmillingcapacityisnotsufficienttoutilizethevolumeofchipspro-
ducedfromtheharvestofNationalForesttimber.
52
U.S.DepartmentofAgriculture,ForestService,Alaska
Region.1987.USDAForestServiceManual;AlaskaRegion
Supplement275.
53
Bruce1958:2(seefootnote49).
54
WesternredcedarinAlaskaisnotsubjecttotheexport
restrictionsoftheExportAdministrationActof1979.
55
FederalRegister.1977.Vol.42,No.129.Wednesday,
July6.
26
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