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Natural Resources

Sales Methods

The Division of Forestry can sell timber under the five methods listed in Table 5. Most sales are sold by competitive bid, but timber sales can be negotiated under certain circumstances. Larger sales can be negotiated to foster economic development. The state maintains a regular competitive sale program. Most sales over 160 acres are listed in a five-year schedule of timber sales. The schedule provides basic information on the volume, location and sale dates of offerings. If not on the schedule, additional sales can be requested and the schedule can be modified based on comments and requests.

The required review process ranges from one month to about eighteen months if the sale must be listed in the schedule. Current schedules are designed to meet local needs, which account for less than 10 percent of the allowable cut. All state timber harvest is subject to the Alaska Forest Resources and Practices Act.

Table 5
Sale type Regular Competitive Regular Negotiated Distressed Areas Value Added Salvage
Sale method Bid Negotiated Negotiated Negotiated or competitive proposals Bid or negotiated
Maximum volume None 500 MBF None 10 MMBF per year None
Maximum term None 1 year 25 years 10 years None
Minimum time for sale review procedure 1 1/2 years if > 160 ac. 1 month 1 month 1 1/2 years if > 160 acres No
Special Requirements None Max 500 MBF per year per individual Local manufacture in areas of high unemployment, unused mill capacity, and unused allowable cut Local manufacture of high value- added products None

Private landowners and other public land managers use competitive, sealed bid procedures that are standard for the forest products industry. A regular sale schedule is not currently utilized, but landowners respond to market conditions and offer sales during more favorable economic periods. Timber sales on private land are reviewed for compliance with the Forest Resources and Practices Act.

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