Oregon daily emerald. (Eugene, Or.) 1920-2012, April 01, 1982, Page 4, Image 4

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Timber companies
may receive relief
PORTLAND — Price rollbacks
and voluntary contract termina
tions may be needed soon for
timber sold but yet to be har
vested from national forests,
says the assistant secretary of
agriculture in charge of the U S.
Forest Service.
John Crowell made the com
ment in a speech to the down
town Rotary Club Tuesday
•'Unless substantial im
provements in economic condi
tions for the forest products
industry and its workers are
evident fairly soon, authorizing
legislation for price rollbacks
and contract terminations will
have to be given very serious
consideration by us and Con
gress," Crowell said
The Forest Service already
has granted contract exten
sions to some timber companies
who were in danger of default
ing on timber sales purchases
The companies purchased the
timber at high prices several
years ago, and are unable to get
their money back when the
timber is harvested due to low
prices and the depressed
lumber and plywood market.
"We have not closed the door
on more drastic relief.” said
Crowell, an Oregonian who is
former general counsel for
Louisiana-Pacific Corp., the na
tion's second-largest lumber
producer.
Crowell said about 8 billion
board feet of timber, half the
amount under contract in
Oregon and Washington na
tional forests, cannot be econ
omically harvested under cur
rent conditions
Meanwhile, the Oregon
Department of Forestry said
Tuesday it will not meet a self
imposed Friday deadline to
decide on regulations for price
rollbacks and contract exten
sions for sales of state-owned
timber Department spokesman
Jim Fisher said it is not known
when the department will deter
mine the specifics of the
regulations
PUC grants utilities
gas price increases
SALEM - Public Utility Com
missioner John Lobdell has
granted rate increases to three
natural gas companies serving
Oregon customers, including
one that serves Eugene
On Wednesday, Lobdell
authorized rate increases for
Northwest Natural Gas Co.,
Cascade Natural Gas Corp and
CP National Corp All of the in
creases were to reflect the
higher cost the companies must
pay for the natural gas they buy
from their supplier. Northwest
Pipeline Co.
Lenny
has 55<t -
Lowenbrau
The increase granted North
west Natural Gas goes into ef
fect Thursday and will raise $3 4
million in additional revenue for
the company, said Lobdell At
the same time, the
commissioner denied a com
pany proposal to spend
$411,000 on an advertising
campaign to promote more ex
tensive use of natural gas
"Given the depressed econ
omy and diminished energy
demand forecast," Lobdell said,
“the company proposal to
promote fuel switching con
tained in the filing is untimely "
He authorized a general rate
increase of 4 percent to offset
higher labor, material and oper
ating costs He approved an
additional 5 7 percent rate hike
reflecting the increase in the
cost of wholesale natural gas
APRIL 4tb SUNDAY
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