Consequences of the Ruling by the 11th Circuit Court of Appeals on Forest
Management Projects (Correspondence, 11/30/2000, GAO/GAO-01-51R).

The decision by the United States Court of Appeals for the 11th Circuit
resulted in the Forest Service's suspending or maintaining the
suspension of 49 projects within Georgia's Chattahoochee-Oconee National
Forests--11 for contracted timber sales and 27 for vegetative management
actions. The appeals court's decision did not result in the suspension
of projects in other national forests in Alabama and Florida. According
to Forest Service officials and other stakeholders, the appeals court's
decision has had various consequences for timber sales and vegetative
management projects in the Chattahoochee-Oconee National Forests. In
some cases, such as the suspended timber sale projects, the consequences
could be quantified in terms of monetary claims against the Forest
Service and reduced receipts to local communities. In other cases, such
as the suspended vegetative management projects, the consequences are
more qualitative. According to Forest Service officials, the suspensions
affected the Forest Service's ability to control for wildfires,
sedimentation, and southern pine beetle infestations; to protect
endangered species; and to ensure habitat diversity. Although the
environmental group that filed the lawsuit against the Forest Service
could not provide any data on the consequences of the suspended timber
sales and vegetative management projects, it generally believed that
suspending these projects would improve soil stability, decrease runoff,
and increase species diversity.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  GAO-01-51R
     TITLE:  Consequences of the Ruling by the 11th Circuit Court of
	     Appeals on Forest Management Projects
      DATE:  11/30/2000
   SUBJECT:  Environmental impact statements
	     Forest management
	     Environmental policies
	     National forests
	     Litigation
	     Timber sales
	     Endangered species
IDENTIFIER:  Forest Service Chattahoochee-Oconee Forest Plan
	     Forest Service Land and Resource Management Plan
	     Chattahoochee-Oconee National Forest (GA)

******************************************************************
** This file contains an ASCII representation of the text of a  **
** GAO Testimony.                                               **
**                                                              **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced.  Tables are included, but    **
** may not resemble those in the printed version.               **
**                                                              **
** Please see the PDF (Portable Document Format) file, when     **
** available, for a complete electronic file of the printed     **
** document's contents.                                         **
**                                                              **
******************************************************************
GAO-01-51R

GAO- 01- 51R Forest Management Projects

November 30, 2000 The Honorable Jeff Sessions United States Senate

Subject: Consequences of the Ruling by the 11 th Circuit Court of Appeals on
Forest Management Projects

Dear Senator Sessions: In February 1999, the United States Court of Appeals
for the 11 th Circuit (the appeals court); which consists of Alabama,
Florida, and Georgia; reversed a January 30, 1998, district court decision
on the Forest Service's management of timber- cutting projects in the
Chattahoochee National Forest. The Sierra Club challenged the Forest
Service's approval of eight timber sale projects in this forest and alleged
that the Forest Service lacked the required inventory or population data on
(1) the proposed, endangered, threatened, or sensitive species of plants and
animals and (2) the management indicator species (selected representative
species used to estimate the effects of forest plans on forest ecosystems)
required by the Chattahoochee- Oconee Forest Plan and the Forest Service's
own regulations. The appeals court held that the Forest Service's approval
of these projects was arbitrary and capricious because the agency lacked the
required inventory or population data.

Originally, we undertook this work at the request of the late Senator Paul
D. Coverdell. You requested that we continue this work. As agreed with your
office, this report addresses (1) the number of the Forest Service's timber
sales and vegetative management projects (such as trail construction work
and prescribed burning) suspended as a result of the appeals court's
decision and (2) the types of financial, economic, environmental, and other
consequences that the Forest Service and other stakeholders have attributed
to the appeals court's decision. As agreed, we obtained data describing the
suspended projects and the related consequences when available. When data
were unavailable, we obtained the opinions of Forest Service officials and
other stakeholders, including environmental, community, and recreational
groups, about the potential consequences. When possible, we provide
quantitative information on the consequences attributed to the appeals
court's decision.

Results in Brief

The decision by the United States Court of Appeals for the 11 th Circuit
resulted in the Forest Service's suspending or maintaining the suspension of
49 projects within

United States General Accounting Office Washington, DC 20548

GAO- 01- 51R Forest Management Projects 2 Georgia's Chattahoochee- Oconee
National Forests- 22 for contracted timber sales and

27 for vegetative management actions. The appeals court's decision did not
result in the suspension of projects in other national forests in Alabama
and Florida. Since the court's decision, the Forest Service has advertised
new timber sales in Florida, but it has not advertised any new timber sales
in Georgia or Alabama except for timber salvage sales resulting from the
damage caused by southern pine beetles.

According to information obtained from and the views of Forest Service
officials and other stakeholders, the appeals court's decision has had
various financial, economic, environmental, and other consequences relating
to timber sales and vegetative management projects in the Chattahoochee-
Oconee National Forests. In some instances- such as the suspended timber
sale projects- the consequences could often be quantified in terms of
monetary claims against the Forest Service and reduced receipts to local
communities. For example, as of August 2000, three purchasers involved with
8 of the 22 suspended timber sales had filed claims against the Forest
Service totaling nearly $1.3 million. In other instances- such as the
suspended vegetative management projects- the consequences are more
qualitative. According to Forest Service officials, the suspensions affected
the Forest Service's ability to control for wildfires, sedimentation, and
southern pine beetle infestations; to protect endangered species; and to
ensure habitat diversity. Although the environmental group representatives
could not provide us with any data related to the consequences associated
with the suspended timber sales and vegetative management projects, they
generally believed that suspending these projects would improve soil
stability, decrease runoff, and increase species diversity.

Background

Established in 1905 within the U. S. Department of Agriculture, the Forest
Service manages about 192 million acres of public lands in national forests
and grasslands. Under the Multiple- Use Sustained- Yield Act of 1960, the
Forest Service manages national forests for a variety of uses, including
outdoor recreation, grazing, timber, and wildlife and fish. The Forest
Service's lands are located in 44 states, the Virgin Islands, and Puerto
Rico. Annually, the Forest Service spends about $3 billion to operate and
manage its organization and lands and generates about $576 million in
receipts from its various operations. The National Forest System includes
155 national forests that are managed by nine regional offices and numerous
individual forest offices and district offices. The Forest Service's
Southern Regional Office, located in Atlanta, Georgia, has responsibilities
in 13 states (including Alabama, Florida, and Georgia) and for the national
forests within those states, including the Chattahoochee- Oconee National
Forests in northern Georgia. The Chattahoochee National Forest covers about
749,550 acres, and the Oconee National Forest covers about 115,483 acres.
Figure 1 shows the location of the nine national forests in Alabama,
Florida, and Georgia.

GAO- 01- 51R Forest Management Projects 3

Figure 1: National Forests in Alabama, Florida, and Georgia

Source: GAO's presentation of data provided by the Forest Service's Southern
Regional Office.

The National Forest Management Act of 1976 requires the Forest Service to,
among other things, (1) develop a plan to manage the lands and the resources
of each national forest in coordination with the land management planning
processes of other federal agencies, states, and localities and (2) revise
each plan at least every 15 years. The Land and Resource Management Plan
(the forest plan) establishes how various land areas within a forest may be
used and, as such, is analogous to a zoning ordinance. An individual project
or activity, such as building a road or harvesting timber, may take place
only if it is consistent with the plan and after site- specific
environmental review, which often includes public notice, comment, and
administrative appeal. The Forest Service's planning regulations establish
detailed procedures for developing a forest plan. These

GAO- 01- 51R Forest Management Projects 4 regulations require the agency to,
among other things, provide for a diversity of plant and

animal communities and tree species consistent with the objectives of the
forest plan. Forest plans are developed in accordance with the National
Environmental Policy Act (NEPA), and the process provides opportunities for
public involvement.

In 1991, the Forest Service proposed eight timber sales (involving
approximately 2,000 acres) within the Chattahoochee National Forest. In
addition to the logging, the timber projects would require a total of 18
miles of road construction. After studying the projected impact of the
sales, the Forest Service determined that there would be no adverse impact
and approved the sales between 1992 and 1995. In April 1996, the Sierra Club
filed suit ( Sierra Club v. Martin), contending that these timber- cutting
projects would harm plant and animal species in the forest. The Sierra Club
argued that, among other things, the Forest Service did not obtain, and
therefore did not consider, population inventory and trend data for
proposed, endangered, threatened, or sensitive species of plants and animals
(collectively referred to as "PETS species" and “management indicator
species” (selected representative species used to estimate the effects
of the forest plans on forest ecosystems), as required by the National
Forest Management Act, applicable regulations, and the forest plan. Without
these data, the Sierra Club claimed that the study of the affected area was
inadequate, making the decision to proceed with the timber sales arbitrary
and capricious.

In April 1996, the Forest Service agreed to suspend the eight timber sale
projects for 20 days. As a result of a preliminary injunction in this
litigation, work on the sales was suspended in May 1996. In January 1998,
the U. S. District Court for the Northern District of Georgia ruled that the
Forest Service's population inventory and trend data for PETS species were
adequate and therefore the Forest Service could proceed with the sales. In
February 1999, the United States Court of Appeals for the 11 th Circuit in
Atlanta reversed the district court's decision. 1 The appeals court held
that the Forest Service's decision to approve the timber sales was arbitrary
and capricious because the agency lacked the required inventory or
population data on (1) PETS species of plants and animals and (2) management
indicator species. According to the Chattahoochee- Oconee Forest's Natural
Resources Staff Officer- the individual the Forest Service designated as our
principal contact regarding issues related to the appeals court's decision-
the eight timber sale projects were initially suspended in April 1996 and,
except for a short period, have remained in suspension since. The appeals
court's decision applied, at a minimum, to the Oconee National Forest in
Georgia and other national forests in Alabama and Florida. In May 1999, the
Forest Service suspended additional timber sale projects and other
vegetative management projects in the Chattahoochee- Oconee National Forests
to ensure these projects also met the species data requirements and to
reduce the risk of further litigation, according to the Forest Service's
Southern Regional Director of Planning.

1 Sierra Club v. Martin, 168 F. 3d 1 (11 th Cir. 1999).

GAO- 01- 51R Forest Management Projects 5 The Forest Service planned to
resume its suspended timber sales and other projects

during the late summer or early fall of 2000. However, in July 2000,
environmental groups sued the Forest Service ( Sierra Club v. Estill)
alleging, among other things, that the agency had approved numerous projects
both within the Chattahoochee- Oconee National Forests and in other forests
in the Southern Region without obtaining species population data as required
by the National Forest Management Act, applicable regulations and forest
plans, and the appeals court's decision in Sierra Club v. Martin. According
to the Forest Service, the challenged projects are all within the Southern
Region. At the time of our review, the government had not yet responded to
the complaint. 2

Number of Timber Sales and Vegetative Management Projects Suspended as a
Result of the Appeals Court's Decision

The appeals court's decision resulted in the Forest Service's suspending or
maintaining an earlier suspension of 22 contracted timber sales and 27
vegetative management projects within the Chattahoochee- Oconee National
Forests. The court's decision did not result in the Forest Service
suspending any projects in the national forests in Alabama and Florida. 3
The Forest Service has advertised new timber sales in Florida, but it has
not advertised any new timber sales in Georgia or Alabama since the court's
decision, except for timber salvage sales resulting from damage caused by
southern pine beetles.

Suspended Contracted Timber Sales in the Chattahoochee- Oconee National
Forests The Forest Service's records indicate a total of 22 suspended
contracted timber sales in the Chattahoochee- Oconee National Forests that
can be attributed either directly or indirectly to the appeals court's
ruling. The purpose of the 22 timber sales was to meet the forest plan's
goals and objectives, address forest health issues, meet wildlife and
habitat needs, supply a continuous and predictable output for the timber
industry, maintain diversity of habitat and plants, and manage the
ecosystem. The timber sales would also allow for the construction and
maintenance of additional roads, which could be used by others, such as
recreationalists.

The original district court case involved the suspension of eight timber
sales in the Chattahoochee National Forest. While three of these timber
sales were never advertised or contracted, the Forest Service had entered
into contracts for the remaining five sales

2 According to the Forest Service, an amended complaint adding new national
forests and projects was filed on October 10, 2000, and a motion for
preliminary injunction was filed that same date. The government's answer and
response are due on December 1, 2000.

3 The Bankhead, Conecuh, Talladega, and Tuskegee National Forests in Alabama
encompass about 664,000 acres of public land, and the Apalachicola, Ocala,
and Osceloa National Forests in Florida cover about 1. 25 million acres.

GAO- 01- 51R Forest Management Projects 6 and the timber was being harvested
at the time of the litigation. In April 1997, the Forest

Service and the respective purchaser mutually agreed to terminate one of the
five timber sales contracts, leaving four suspended timber sales. In April
1999, environmental groups demanded that the Forest Service refrain from
conducting timber- harvesting projects that were being conducted in the
absence of the PETS and management indicator species population inventory
and trend data required by Sierra Club v. Martin. In May 1999, the Southern
Regional Forester determined that the conditions in all of the
Chattahoochee- Oconee National Forests timber sales were the same as, or
nearly the same as, the conditions in the timber sales involved in the
original district court case. As a result, 16 additional timber sales from
the Chattahoochee- Oconee National Forests were suspended. The Forest's
Natural Resources Staff Officer stated that the appeals court's ruling also
resulted in a decision to continue the suspension of two timber sale
projects that had been subject to other litigation in 1993 and 1998, thus
making a total of 22 suspended timber sales. 4 See enclosure I for a
description of these timber sales.

Suspended Vegetative Management Projects in the Chattahoochee- Oconee
National Forests

The Forest Service suspended 27 projects in the Chattahoochee- Oconee
National Forests that dealt with modifying vegetation and habitat. In April
1999, in addition to insisting that the Forest Service refrain from timber-
harvesting projects, environmental groups demanded that it refrain from
conducting other vegetative management projects that were being conducted in
the absence of data and trend analyses on (1) PETS species of plants and
animals and (2) management indicator species, as required by Sierra Club v.
Martin. In May 1999, the Forest Service responded to the environmental
groups' demands and stated that it was reviewing its processes and documents
related to monitoring compliance for these data. As part of the review, on
May 14, 1999, the Forest Service decided to suspend 27 other projects in the
Chattahoochee- Oconee National Forests that dealt with the modification of
vegetation and habitat. According to the Forest's Natural Resources Staff
Officer, the purpose of each of the 27 suspended vegetative management
projects was either not accomplished or has been delayed. Table 1 summarizes
information about these projects, and enclosure I provides additional
information about them.

3 In December 1999, the number of suspended active timber sales decreased
from 22 to 20 sales because the Forest Service and the respective purchaser
mutually agreed to terminate 2 of the suspended sales.

GAO- 01- 51R Forest Management Projects 7

Table 1: The Type and Purpose of 27 Suspended Vegetative Management Projects
Project type Purpose Number

Trail/ campsite construction Protect soil and water resources, increase
access, and improve recreation opportunities.

5 Prescribed burning Lessen the impact and the potential devastation
associated

with wildfires; reduce thick underbrush (which helps eliminate hiding and
ambushing cover for predators); and promote new growth of grasses, brush,
and tree sprouts that are nutritional and palatable to wildlife.

6 Timber stand improvement Free selected crop trees from competing
vegetation that is

surrounding or overtopping vegetation, which also improves forest health.
According to the Forest Service, precommercial thinning has a preferred
window, which, if missed, increases the total cost to accomplish the work.

7 Shooting range Provide a safe, controlled area for public safety. 3
Wildlife opening These openings- maintained parcels of habitat (usually 1 to

3 acres) within wildlife management areas that are scattered throughout a
forest- are seeded and fertilized to produce a supplemental food source that
is nutritional. Once an opening is established, mowing a few times a year is
usually all that is required for maintenance. The Forest Service also uses
herbicides on wildlife openings to eliminate unwanted invasive grasses and
weeds.

5 Helispot Support prescribed burning and wildfire suppression efforts

by improving the efficiency of projects and response times to wildfires.

1 Source: GAO's presentation of information provided by the Forest Service.

Suspended Projects in Other National Forests The appeals court's decision
did not result in any suspended projects within the national forests in
Alabama and Florida. The Forest Service has continued to advertise new
timber sales in Florida, but it has not advertised any new timber sales in
Alabama or Georgia. The Forest Service decided, because of the appeals
court's ruling, to limit existing timber- harvesting projects in the Alabama
national forests to either sales contracts made before the appeals court's
decision or timber salvage sales resulting from the damage caused by
southern pine beetles. According to a Forest Service forest planner in
Florida, the Forest Service did not suspend any timber sale projects in
Florida as a result of the appeals court's decision because the Florida
Forest Plan was revised in the spring of 1999 with language clarifying the
implementation of the regulation on species population surveys at the
project level. In August 1999, an environmental group appealed the plan's
revision and alleged it failed to comply with the National Forest Management
Act and the requirements of the Sierra Club v. Martindecision in terms of
ensuring the viability of PETS species. As of October 25, 2000, the Forest
Service had not made a final decision on the environmental group's appeal.

GAO- 01- 51R Forest Management Projects 8

Financial, Economic, Environmental, and Other Consequences Associated With
the Appeals Court's Decision

The appeals court's decision has had various consequences related to the
suspended timber sales and vegetative management projects in the
Chattahoochee- Oconee National Forests in Georgia. With respect to the
suspended timber sales, the consequences have primarily been financial and
economic and, secondarily, environmental and operational. With regard to the
vegetative management projects, the consequences have been mostly
environmental and, to a lesser extent, financial and economic, and
operational.

Consequences of Suspended Timber Sales The suspended timber sales have
primarily had financial and economic consequences and, to a lesser extent,
have affected the environment and the Forest Service's operations. For
example, their suspension resulted in monetary claims against the Forest
Service and reduced the receipts that go to local communities.

Financial Impacts Numerous purchasers of small amounts of timber rely on a
portion of their wood supply from the Chattahoochee- Oconee National
Forests. In the northern Georgia counties, only a limited supply of private
timber has been available to these purchasers for replacement timber
purposes, according to the Forest Service Southern Regional Director of
Planning. The 22 suspended timber sales involved 13 timber purchasers (some
purchasers were involved in more than one sale). We attempted to contact
each of the 13 purchasers to discuss the suspended sales and were successful
in reaching either the purchaser or a legal representative in 10 instances.
In these discussions, the timber purchaser or legal representative indicated
that financial losses were incurred because the Forest Service suspended the
timber sales. Three of the timber purchasers filed formal claims, specifying
the amounts lost, against the Forest Service. Another purchaser agreed to
settle his claim informally as part of a negotiated settlement with the
Forest Service, and the other six purchasers did not provide supporting
evidence that losses were incurred and have not filed a claim against the
Forest Service.

As of August 2000, three purchasers had filed claims (involving eight timber
sale contracts in the Chattahoochee- Oconee National Forests) against the
Forest Service that totaled nearly $1.3 million. Their claims alleged that
the Forest Service is in material breach of their contracts by the wrongful
suspension and interruption of them. Each of the three purchasers used a
different method to calculate the damages claimed. One calculated the
damages according to the net income lost due to the suspension. Another
calculated the damages according to the difference between the cost of
timber from the Forest Service and the cost paid for replacement timber. The
third calculated the damages according to the difference in the revenues it
received from the replacement timber and the revenues it would have received
from the Forest Service's timber. For

GAO- 01- 51R Forest Management Projects 9 the eight timber sale contracts,
the amount of each filed claim ranged from about $6,000

to about $388,000. The purchaser that agreed to settle his claim informally
as part of a negotiated settlement with the Forest Service said that the
suspension of his two timber sales caused him to go out of business. This
purchaser accepted a negotiated settlement with the Forest Service for about
$100,000 that included nearly $93,000 for out- of- pocket expenses incurred
plus some other claims and costs. The purchaser stated that he settled for
less than the amount claimed because he was about to lose his house. This
purchaser declared that 85 percent of his business depended on timber from
the National Forest System. When the Forest Service paid these claims, the
sales were mutually terminated. Because of the cancellations, some of the
objectives associated with the projects were not achieved, such as fuel
reduction and habitat enhancement opportunities, according to the Forest's
Natural Resources Staff Officer. If the Forest Service elected to
readvertise and sell this timber at a later date, there would be potential
costs associated with any additional analysis required by NEPA, as well as
sale preparation work, preparation of new contracts, and advertising the
sales.

Economic Impacts Fiscal year 2000 timber receipts in Georgia were reduced,
in part, because of the suspension of timber sales related to the Sierra
Club v. Martinruling, according to the Forest's Natural Resources Staff
Officer and the Forest Service Southern Regional Finance Manager. Similarly,
the lack of new timber sales in Alabama contributed to a decrease in fiscal
year 2000 timber receipts for Alabama counties, according to the Forest
Service Staff Officer for Land Management Planning and Natural Resources in
Alabama. However, according to Forest Service officials, budget constraints
and a shift in the Forest Service's mission from timber harvesting to forest
stewardship also contributed to the recent downward trend in timber sales
and related receipts. Enclosure II provides information on timber cut and
sold in fiscal years 1996 through 2000.

According to 11 of the county representatives we spoke with from the
affected counties in Georgia and Alabama, the economic impact on their
counties was minimal because timber receipts are a relatively small part of
their budgets. However, three county officials stated that the loss of the
timber receipts would hurt their local county budgets. The Twenty- Five
Percent Fund Act of 1908 (16 U. S. C. 500) requires the Forest Service to
return 25 percent of the gross receipts from each national forest to the
states in which those lands are located. The states must spend these funds
on schools and roads within the counties in which the national forests are
situated. According to the Forest's Natural Resources Staff Officer, the
states traditionally distribute these funds to counties according to the
amount of national forest acreage in that county. While the majority of
these funds (between 85 percent and 90 percent) are generated from timber
sales, funds

GAO- 01- 51R Forest Management Projects 10 are also generated from receipts
from grazing, recreation special uses, recreation user

fees, minerals, and land special uses. While the Chattahoochee- Oconee
National Forests returned a total of about $261,000 from gross timber-
related receipts to Georgia in fiscal year 1999, the Forest Service
estimates that receipts from these forests will total about $18,000 in
fiscal year 2000. For Alabama, the Forest Service returned a total of about
$627,000 from timber- related sales in fiscal year 1999 and estimates that
the receipts from them will total about $467,000 in fiscal year 2000. We
could not determine the portion of the projected decrease in timberrelated
receipts attributable to the suspended timber sales because several other
factors, such as budget constraints and an increase in forest stewardship
projects to promote forest health, also contributed to the decrease in
timber sales and receipts from national forests in Georgia and Alabama.
Enclosure III lists the receipts by county within Georgia and Alabama.

Environmental Impacts Data are generally not available to precisely
determine the environmental impacts of the suspended timber sales. Among the
stakeholders we contacted, opinions differ. The Forest's Natural Resources
Staff Officer stated that suspending the timber sales adversely affected the
environment by reducing the Forest Service's ability to protect the soil and
water from sedimentation coming from roads. The Chattahoochee- Oconee
National Forests have approximately 1,250 miles of road that need to be
maintained. The majority of road use is for recreational purposes, such as
camping, fishing, and hunting. Stipulations in timber sale contracts require
timber purchasers to pay deposits, which are later used to perform
maintenance on the roads they use to access the timber sale.

In contrast, environmental group representatives, such as one group's
legislative director and an attorney who represented the plaintiffs, told us
that suspending timber sales would have a positive effect on the
environment. In general, these representatives said timber harvesting and
related projects (such as road maintenance) disturb the soil, increase the
runoff into waterways, decrease visual quality, fragment the forest, and
decrease the regeneration of native trees and recreational resources.
Environmental groups believe that eliminating timber harvesting and its
related activities would avoid these problems.

Operational Impacts The appeals court's decision also resulted in changes to
the Forest Service's related forest plans and in shifting staff to work in
other areas or to address the appeals court's findings. The Forest Service
developed amendments for the forest plans for Georgia and Alabama and
incorporated changes in the Florida Forest Plan that was under revision at
the time of the decision. According to the Forest Service's Southern
Regional Director of Planning, the amendments clarify the implementation of
the regulation in how species

GAO- 01- 51R Forest Management Projects 11 inventory data are collected.
Another impact the Forest's Natural Resources Staff

Officer cited was a shift in workload requirements. With traditional work in
the resource areas unavailable as a result of suspending the projects, some
Forest Service employees, such as timber markers, were reassigned to work in
such other areas as recreation and wilderness management. In other
instances, employees had to go on numerous and extended details away from
their families to other forests, both in and outside the Southern Region.
However, funding constraints and the suspension contributed to this shift in
workload requirements. In total, the Forest Service reassigned approximately
25 employees to work in other program areas not affected by the appeals
court's ruling. Forest Service officials, such as the Forest Service Staff
Officer for Land Management Planning and Natural Resources in Alabama, also
noted that the agency has incurred additional costs because professionals
from both the Alabama and Georgia national forests have focused their staff
resources on addressing the findings of the appeals court. For example, the
Forest's Natural Resources Staff Officer told us wildlife biologists,
silviculturists, and other employees have been unable to devote their time
to achieving the goals and objectives of the forest plan because they have
had to focus their time on addressing the findings of the appeals court.

Identified Consequences of Suspended Vegetative Management Projects
Generally, data are not available to conclusively determine the consequences
associated with suspending vegetative management projects, such as
prescribed burning. However, according to the viewpoints of Forest Service
officials and other stakeholders, the consequences have been mostly
environmental and, to a lesser extent, financial and economic and
operational. For example, according to Forest Service officials, some of the
suspended projects affected the Forest Service's ability to control for
wildfires, sedimentation, and southern pine beetle infestations; to protect
certain nesting colonies of the red- cockaded woodpecker (an endangered
species) because of the damage to trees by southern pine beetle
infestations; and to ensure habitat. In contrast, according to environmental
group representatives, suspending the projects could improve soil stability,
decrease runoff, and increase species diversity.

Environmental Impacts Forest Service officials stated that the suspension of
prescribed burning and cut- andremove operations to control southern pine
beetles has limited the agency's ability in the Chattahoochee- Oconee
National Forests to actively manage infestations of them, offset suppression
costs, and protect the red- cockaded woodpecker. For example, the Forest's
Natural Resources Staff Officer stated that the agency agreed not to use the
preferred management technique, cut and remove, because of an oral agreement
with the plaintiffs out of a concern that they would challenge the actions
and allege the Forest Service lacked adequate data. According to a Forest
Service Threatened and Endangered Species Specialist, the effects of the
southern pine beetle infestations on both the numbers of trees and the red-
cockaded woodpecker would not begin to be known until next year.

GAO- 01- 51R Forest Management Projects 12 The Chattahoochee- Oconee
National Forests and the national forests in Alabama have a

history of southern pine beetle infestations and storm damage. According to
Forest Service officials, both Georgia and Alabama experienced southern pine
beetle infestations at an epidemic level this past year. The Forest Service
prefers to use the cutand- remove control method, which it says is about 90
to 95 percent successful in controlling the southern pine beetle
infestations. Instead, it is using the cut- and- leave control method, which
is about 75 percent successful, because of demands from environmental groups
(including the Sierra Club, the Wilderness Society, the Georgia Forestwatch,
the Rabun County Coalition to Save the Forest, the Armuchee Alliance, and
the Friends of Georgia) that are related to the appeals court's ruling.
These environmental groups favor this method because they view it as less
destructive to the environment.

According to the Forest's Natural Resources Staff Officer, the accumulation
of dead and dying vegetation from using the cut- and- leave control method
increases the potential risk of wildfires. He also told us that the
potential exists for the problems caused by infestations of southern pine
beetles to spread onto private property because of the Forest Service's lack
of action to more effectively treat these problems. These infestations are
threatening the habitat of the red- cockaded woodpecker in the Oconee
National Forest. Although the Forest Service suspended southern pine beetle
control cut- and- remove operations forestwide in the Chattahoochee- Oconee
National Forests, the agency advertised for two cut- and- remove timber
sales for the section of the Oconee National Forest damaged by the southern
pine beetle infestation that was threatening the habitat of the red-
cockaded woodpecker.

On an annual basis, the Forest Service had previously conducted prescribed
burns on 30,000 to 40,000 acres a year in the Chattahoochee- Oconee National
Forests to remove combustible vegetation because fuel reduction lessens the
potential for major fires during periods of drought or high fire danger. 5
In addition, prescribed burns reduce the thick underbrush, which helps
eliminate hiding and ambushing cover for the predators of some species and
provides a food source for wildlife. According to Forest Service officials,
suspending these activities has increased the chances for wildfires and
adversely affected the habitats of certain species.

In addition to the environmental impacts associated with suspending the
prescribed burning projects, a related project that was suspended-
developing a helicopter landing and take- off area- has affected the
efficiency of fire suppression during the initial attack of wildfires and
the agency's prescribed fire program. According to the Forest's Natural
Resources Staff Officer, other suspended projects, such as the relocation of
off- highway vehicle trails and camping sites, also affected the soil and
water resources in the Chattahoochee- Oconee National Forests.

5 See Reducing Wildfire Threats: Funds Should Be Targeted to the Highest
Risk Areas( GAO/ T- RCED- 00296, Sept. 13, 2000) for a discussion of
previous GAO work dealing with wildfire issues.

GAO- 01- 51R Forest Management Projects 13 Although some of the
environmental group representatives told us that not enough time

has passed to observe any impact, in general, they said that over time the
suspended vegetative management projects, much like the suspended timber
sale projects, would be environmentally damaging. They felt these projects
would disturb the soil, increase the runoff into waterways, fragment the
forest, and adversely impact the regeneration of native trees and
recreational resources.

Financial and Economic Impacts While the cost of using the cut- and- remove
method to control southern pine beetle infestations is partially offset by
the revenues from the sale of salvaged timber, the cutand- leave method does
not. For example, the Forest Service spent about $170,000 from October 1999
through July 2000 to control southern pine beetle infestations in the Oconee
National Forest through the cut- and- leave method. It estimates it could
have earned about $301,000 by selling the timber, if not for the appeals
court's ruling.

Suspending vegetative management projects also reduced the number of service
contracts the Forest Service annually awarded to local contractors for such
services as timber stand improvement, reforestation, and site preparation.
According to the Forest's Natural Resources Staff Officer, suspending
vegetative management projects caused the cancellation of 10 service
contracts for herbicide spraying, planting, and thinning. These contracts,
involving 2,695 acres with a total value of about $121,000, would have been
made with local small businesses and private individuals.

Operational Impacts According to the Forest's Natural Resources Staff
Officer, suspending the projects has affected the Forest Service's ability
in the Chattahoochee- Oconee National Forests to meet its obligations with
many of its external partners. These obligations include wildliferelated
projects, such as food plot development and maintenance, prescribed burning,
and shooting range construction, that were planned with state and local
conservation groups, such as the Georgia Department of Natural Resources,
the National Wild Turkey Federation, the Georgia Bounty Runner's Club, and
the Southern 4- Wheel Drive Association. Several trail construction and
reconstruction projects planned with recreational user groups have been put
on hold. Because of budget constraints, the Forest Service has had to
increasingly rely on partnerships and cooperative agreements with other
public and private entities that have an interest in conservation and the
management of national forest lands.

Agency Comments

We provided a draft of this report to the U. S. Department of Agriculture's
Forest Service for its review and comment. The Forest Service commented that
much of the

GAO- 01- 51R Forest Management Projects 14 information in the draft report
was correct and offered some technical clarifications,

which were incorporated into the final report as appropriate. The Forest
Service's comments also discussed a number of other matters, such as the
role of monitoring for various species and changes in its monitoring role.
In addition, the Forest Service reaffirmed its commitment to implement
direction in the Southern Region's Land and Resource Management Plans
regarding the circumstances under which it is appropriate to conduct
inventories for proposed, endangered, threatened, and sensitive species. The
Forest Service also maintained its commitment to implementing direction in
its planning regulation stating that “Population trends of management
indicator species will be monitored and relationships to habitat changes
determined.” We did not revise the report to reflect these comments
because they do not specifically address the objectives we examined or the
information we present in this report. However, we include the Forest
Service's comments in appendix IV.

Scope and Methodology

We focused our efforts on identifying the projects the Forest Service
suspended because of the February 1999 decision by the appeals court, which
has jurisdiction in Alabama, Florida, and Georgia. Our work was limited to
the Forest Service's national forests within those states.

To meet our objectives, we interviewed officials at the Forest Service's
Southern Regional Office and the responsible forest offices and obtained
data on timber sales and vegetative management projects from them. We relied
on Forest Service staff to identify the projects that were suspended and
sought concurrence with plaintiff representatives that the projects
identified as suspended were the only affected projects.

To determine the type of consequences that could be associated with the
appeals court's ruling, we met with or contacted Forest Service officials in
the Southern Region (including officials in the Alabama, Florida, and
Georgia forest offices); environmental, timber industry, and community
representatives; and the regional general counsel for the U. S. Department
of Agriculture. The environmental groups we contacted included the Sierra
Club, the John Muir Project, the Wilderness Society, the Georgia
Forestwatch, the Southern Appalachian Forest Coalition, and the Chattooga
Conservancy. The timber industry groups we contacted included the Southern
Timber Council and the Alabama Forestry Association. The community
representatives included commissioners and administrators from counties in
Georgia and Alabama that have national forests. We also contacted
conservation and recreation organizations in a partnership relationship with
the Forest Service, such as the Georgia Department of Natural Resources, the
Georgia Bounty Runner's Club, the Southern 4- Wheel Drive Association of
Georgia, and the National Wild Turkey Federation. Whenever actual impacts
were identified, we requested supporting information. For example, we
obtained documentation from four timber purchasers describing the impact of
suspending the timber sales. When such data

GAO- 01- 51R Forest Management Projects 15 were unavailable, we obtained the
opinions of Forest Service officials and other

stakeholders about the potential consequences. Whenever possible, we provide
quantitative information on the consequences attributed to the appeals
court's decision. We did not independently verify the reliability of the
data provided nor did we trace the data to the systems provided by the
Forest Service or others. We conducted our work from April through October
2000 in accordance with generally accepted government auditing standards.

---- As arranged with your office, unless you publicly announce its contents
earlier, we plan no further distribution of this report until 15 days after
the date of this letter. At that time, we will provide copies to the
appropriate congressional committees, interested Members of Congress, and
other interested parties. The letter will also be available on GAO's home
page at http:// www. gao. gov. If you have any questions about this report,
please contact me at (202) 512- 3841. Other key contributors to this report
were Gene Barnes, John Hunt, Rich Johnson, and Gary M. Malavenda.

Sincerely yours, Barry T. Hill Director, Natural

Resources and Environment Enclosures - 4

Enclosure I

GAO- 01- 51R Forest Management Projects 16

Suspended Projects Within the Chattahoochee- Oconee National Forests and
Related Impacts

This enclosure provides information on those projects within the
Chattahoochee- Oconee National Forests that were suspended by the Forest
Service as a result of the decision in Sierra Club v. Martinby the United
States Court of Appeals for the 11 th Circuit. In total, there were 49
suspended projects: 22 for timber sales, 5 for trail or campsite
construction, 6 for prescribed burning, 7 for timber stand improvement, 3
for shooting ranges, 5 for wildlife opening development, and 1 for a
helispot. The projects are presented by ranger district, and the
descriptions include their location by county (and by compartment for timber
sale projects 6 ), their purpose, and the impacts attributed to their
suspension. Information describing the timber sales projects was obtained
from the Forest Service and relevant timber purchasers.

Armuchee Ranger District

Timber Sale Projects

ï¿½ Chattooga County (Compartments 920, 921, and 922): The purpose was to (1)
manage high- quality hardwood and pine saw- timber size trees and (2)
provide for diversity of plant and animal communities while managing
wildlife habitats to maintain viable populations of the native vertebrate
species and providing the public with a wide range of hunting, fishing, and
nonconsumptive opportunities to enjoy wildlife. The remaining 261,000 board
feet from the sale has a value of $22,630. We were unsuccessful in
contacting the purchaser to discuss the impact.

ï¿½ Whitfield and Walker counties (Compartments 903, 904, and 905): The
purpose was to (1) manage high- quality hardwood and pine saw- timber size
trees and (2) provide for diversity of plant and animal communities while
managing wildlife habitats to maintain viable populations of the native
vertebrate species and providing the public with a wide range of hunting,
fishing, and nonconsumptive opportunities to enjoy wildlife. The remaining
1,924,000 board feet from the sale has a value of $142,293. We were
unsuccessful in contacting the purchaser to discuss the impact.

Timber Stand Improvement

ï¿½ Walker County (involving 169 acres): The purpose was chemical release and
planting. Two small business contracts totaling $4,370 were cancelled as a
result of the project's suspension.

6 A compartment is an administrative division of a ranger district that is
created to help organize records. Its size is about 1,000 acres, and its
boundaries should be permanent features that can be recognized on the
ground, such as roads, trails, streams, or ridges.

Enclosure I

GAO- 01- 51R Forest Management Projects 17

Brasstown Ranger District

Timber Sale Projects

ï¿½ Towns County (Compartments 329, 330, 331, 332, and 333): The purpose was
to (1) sustain a high annual or regular periodic output of various renewable
resources (including timber products and wildlife habitat); (2) provide
opportunities to improve fisheries habitat; (3) provide for diversity of
plant and animal communities and tree species to meet multiple- use
objectives; (4) manage fish and wildlife habitats to maintain viable
populations of the existing native vertebrate species and to maintain and
improve the habitat of management indicator species; (5) provide the public
with a wide range of hunting, fishing, and nonconsumptive opportunities to
enjoy wildlife; and (6) manage for the production of high- quality hardwood
and pine saw- timber size trees. The remaining 315,000 board feet from the
sale has a value of $21,262. The timber sale was terminated on December 31,
1999, and the timber purchaser said he went out of business because of the
suspended timber sale. A negotiated settlement was reached with the Forest
Service that cancelled the timber sale contract and relieved the purchaser
from any liability under the contract. The purchaser declared that 90
percent of his business depended on Forest Service timber and that he
settled for less than the amount claimed because he was about to lose his
house.

ï¿½ Towns County (Compartments 315, 317, and 326): The purpose was to (1)
sustain a high annual or regular periodic output of various renewable
resources (including timber products and wildlife habitat); (2) provide
opportunities to improve fisheries habitat; (3) provide for future forest
health; (4) provide for diversity of plant and animal communities and tree
species to meet multiple- use objectives; (5) manage fish and wildlife
habitats to maintain viable populations of the native vertebrate species and
to maintain and improve the habitat of management indicator species; (6)
provide the public with a wide range of hunting, fishing, and nonconsumptive
opportunities to enjoy wildlife; and (7) manage for the production of high-
quality hardwood and pine saw- timber size trees. The remaining 70,000 board
feet from the sale has a value of $3,343. The sale was terminated on
December 31, 1999. See preceding sale for related information.

Trail Construction

ï¿½ Union County (involving 50 acres near Beasley Knob and Davenport Mountain
northwest of Blairsville): The purpose was to relocate off- road vehicle
trails to locations that would lessen resource damage, to close and
revegetate sections that were causing resource damage, and to perform needed
maintenance on those sections that the Forest Service plans to retain.

Enclosure I

GAO- 01- 51R Forest Management Projects 18 Prescribed Burning

ï¿½ Towns County (involving 12 acres, 6 miles east of Hiawassee): The purpose
was to improve wildlife.

ï¿½ Union, Towns, and Lumpkin counties (involving 3,914 acres): The purpose
was to reduce the risk of wildfires.

Timber Stand Improvement

ï¿½ Located districtwide in Union and Towns counties (involving 497 acres):
The purpose was crop tree release with hand tools. A small business contract
totaling $29,820 was cancelled as a result of the project's suspension.

Wildlife Opening Maintenance

ï¿½ Rabun, Stephens, White, Fannin, Habersham, Towns, Union, and Lumpkin
counties (involving 140 acres): The purpose was to apply herbicides to
control pests.

Chattooga Ranger District

Timber Sale Projects

ï¿½ Habersham County (Compartments 249 and 252): The purpose was to (1)
emphasize a sustained high- annual or regular periodic output of various
renewable resources (including timber products and wildlife habitat); (2)
provide for diversity of plant and animal communities and tree species to
meet multiple- use objectives; (3) manage fish and wildlife habitats to
maintain viable populations of the native vertebrate species and to maintain
and improve the habitat of management indicator species; (4) provide the
public with a wide range of hunting, fishing, and nonconsumptive
opportunities to enjoy wildlife; (5) manage the production of high- quality
hardwood and pine saw- timber size trees; and (6) recognize and meet the
visual quality objectives for all distance zones. The remaining 969,000
board feet from the sale has a value of $50,767.

ï¿½ Habersham County (Compartment 232): The purpose was to (1) emphasize a
sustained high- annual or regular periodic output of various renewable
resources (including timber products and wildlife habitat); (2) provide for
diversity of plant and animal communities and tree species to meet multiple-
use objectives; (3) manage fish and wildlife habitats to maintain viable
populations of native vertebrate species and to maintain and improve the
habitat of management indicator species; (4) provide the public with a wide
range of hunting, fishing, and nonconsumptive opportunities to enjoy
wildlife; (5) manage for the production of high- quality hardwood and pine
sawtimber size trees; (6) recognize and meet the visual quality objectives
for all distance

Enclosure I

GAO- 01- 51R Forest Management Projects 19 zones; and (7) construct a
permanent wildlife opening of 1 to 2 acres. The remaining

526,000 board feet from the sale has a value of $71,341. The purchaser for
this sale was the same as for Compartments 32 and 59.

ï¿½ Habersham County (Compartment 229): The purpose was to (1) provide for a
regular periodic output of renewable resources for wildlife habitats and
timber products; (2) reduce the potential for attack from the southern pine
beetle and for the spread of infestation to adjacent stands or private land;
(3) improve saw- timber quality by improving the growth rate of pine and
hardwood trees; (4) maintain or enhance diversity by managing for Table
Mountain pine and encouraging the hardwood component in pine stands; and (5)
provide present and future areas for early-, middle-, and late- successional
species of plants and animals. The remaining 1,047,000 board feet from the
sale has a value of $60,808.

Trail Construction

ï¿½ Stephens County (involving less than a mile of a trail, 3.5 miles west of
Toccoa): The purpose was to relocate the Locust Stake Trail to protect soil
and water resources.

Shooting Range Construction

ï¿½ Stephens County (involving 5 acres in Lake Russell Wildlife Management
Area, 6 miles east of Cornelia): The Forest Service planned to accomplish
the land clearing for the construction of this shooting range through a
small timber sale. The project was to include parking facilities. This
project was in partnership with the Georgia Department of Natural Resources.

Prescribed Burning

ï¿½ Habersham and Stephens counties (involving 2,067 acres): The purpose was
to reduce the risk of wildfires and improve wildlife habitat.

Wildlife Opening Development

ï¿½ Lumpkin County (involving 4 acres, 12 miles northeast of Dahlonega): The
purpose was to expand a wildlife opening.

Timber Stand Improvement

ï¿½ Stephens and Habersham counties (involving 628 acres): The purpose was
chemical release and mechanical preparation. Two small business contracts
totaling $25,050 were cancelled as a result of the project's suspension.

Enclosure I

GAO- 01- 51R Forest Management Projects 20

Cohutta Ranger District

Prescribed Burning

ï¿½ Murray County (involving 2,241 acres northeast of Chattsworth): The
purpose was fuel reduction, wildlife habitat improvement, and ecosystem
restoration.

Timber Stand Improvement

ï¿½ Murray County (involving 400 acres): The purpose was to free a selected
crop tree from competing vegetation that was surrounding or overtopping it.
Two small business contracts totaling $24,000 were cancelled as a result of
the project's suspension.

Helispot Development

ï¿½ Murray County (involving 7 acres, six miles southeast of Chattsworth): The
purpose was to support and improve the efficiency and reduce the costs of
prescribed fire and suppression efforts; it also would have provided a 7-
acre wildlife opening.

Oconee Ranger District

Timber Sale Projects

ï¿½ Jasper County (Compartments 101 and 105): The purpose was to (1) develop a
sustained high- level of annual or periodic regular yield of products and
services resulting from multiple- use management; (2) protect and improve
the quality of renewable resources; (3) provide for diversity of plant and
animal communities and tree species to meet multiple- use objectives; (4)
maintain a healthy forest not at risk to sudden or widespread change due to
insects, disease, or other agents; and (5) have fish and wildlife habitats
that maintain viable populations of the native vertebrate species and
maintains or improves the habitat of management indicator species; and
construct 2 acres of permanent wildlife openings. The remaining 16,000 board
feet from the sale has a value of $1,520. The timber purchaser filed a claim
against the Forest Service. The claim alleges the purchaser was prevented
from harvesting and reselling the timber as planned. In addition, the claim
alleges the purchaser's subcontract logger was interrupted and suspended and
also deprived of the income which it other wise would have made from
harvesting the sale.

ï¿½ Jasper County (Compartments 107, 114, and 115): The purpose was to (1)
develop a sustained high- level of annual or periodic regular yield of
products and services resulting from multiple- use management; (2) protect
and improve the quality of renewable resources; (3) provide for diversity of
plant and animal communities and tree species to meet multiple- use
objectives; (4) maintain the forest's health to prevent sudden or widespread
change due to insects, disease, or other agents;

Enclosure I

GAO- 01- 51R Forest Management Projects 21 (5) manage fish and wildlife
habitats to maintain viable populations of the native

vertebrate species and to maintain or improve the habitat of management
indicator species. The remaining 2,105,000 board feet from the sale has a
value of $43,985. The purchaser for this sale was the same as Compartments
101 and 105 (see above for related comments).

ï¿½ Putnam County (Compartments 161, 162, and 163): The purpose was to (1)
maintain a healthy forest; (2) provide a diversity of plant and animal
communities and tree species; (3) improve the quality of resources; (4) have
fish and wildlife habitats that maintain viable populations the existing
native vertebrate species and maintains or improves habitat of management
indicator species; and (5) construct a 1- acre grassed wildlife opening. The
remaining 182,000 board feet from the sale has a value of $10,113. The
purchaser for this timber sale was the same as Compartments 101, 105, 107,
114, and 115 (see above for related comments).

ï¿½ Putnam and Jasper counties (Compartments 137, 139, 140, and 142): The
purpose was to (1) maintain a healthy forest not at risk to sudden or
widespread change due to insects, disease, or other agents; (2) provide for
diversity of plant and animal communities and tree species to meet multiple-
use objectives; (3) protect and improve the quality of renewable resources;
(4) protect and improve the habitat of threatened and endangered plant and
animal species; and (5) construct 5 acres of wildlife openings. The
remaining 1,576,000 board feet from the sale has a value of $226,132. The
purchaser estimated that about 50 percent of their business was from
harvesting national forest timber.

ï¿½ Greene County (Compartment 181): The purpose was to (1) provide a high
level of renewable resource outputs for wildlife habitat and timber
products; (2) improve the quality of resources; (3) provide a diversity of
plant and animal communities and tree species; (4) maintain a healthy
forest; (5) have viable populations at the forest level of existing native
vertebrate and desired non- native species and maintenance or improvement of
the habitat of management indicator species; and (6) construct 4 acres of
wildlife openings. The remaining 467,000 board feet from the sale has a
value of $9,660. The purchaser said that amount of its business from
harvesting national forest timber was minimal.

ï¿½ Greene and Oglethorpe counties (Compartments 166, 167, 168, 172, 175, 176,
179, 182, 183, 184, 185, 187, 188, and 191): The purpose was to (1) have
successful regeneration; (2) prevent overstocking of loblolly pine seedlings
in the stands; (3) reduce the threat of diseases and insect infestations;
(4) increase the availability of light, nutrients, and water for the
residual stand; (5) improve wildlife habitat; and (6) improve diversity. The
remaining 955,000 board feet from the sale has a value of $293,475. The
purchaser estimated that about 4 percent of its business was from harvesting
national forest timber.

Enclosure I

GAO- 01- 51R Forest Management Projects 22

ï¿½ Putnam County (Compartments 144 and 145): The purpose was to (1) maintain
a healthy forest not at risk to sudden or widespread change due to insects,
disease, or other agents; (2) provide for diversity of plant and animal
communities and tree species to meet multiple- use objectives; (3) protect
and improve the quality of renewable resources; (4) protect and improve the
habitat of threatened and endangered plant and animal species; and (5)
construct 5 acres of wildlife openings. The remaining 2,212,000 board feet
from the sale has a value of $97,147. The purchaser for this sale was the
same as Compartments 101, 105, 107, 114, 115, 161, 162, and 163 (see above
for related comments).

ï¿½ Putnam County (Compartments 146, 149, and 150): The purpose was to (1)
maintain a healthy forest not at risk to sudden or widespread change due to
insects, disease, or other agents; (2) provide for diversity of plant and
animal communities and tree species to meet multiple- use objectives; (3)
protect and improve the quality of renewable resources; (4) protect and
improve the habitat of threatened and endangered plant and animal species;
and (5) construct of 3 acres of wildlife openings. The remaining 1,661,000
board feet from the sale has a value of $156,179. The purchaser for this
sale was the same as Compartments 137, 139, 140, and 142 (see above for
related comments).

Trail Construction

ï¿½ Greene County (involving 10 miles of trails, located 9 miles north of
Greensboro): The purpose was to reconstruct an old horse trail and construct
a new trail. Failure to implement this project would result in soil and
water issues and sediment concerns not being addressed, according to a
Forest Service official. This project also included the construction of
parking facilities to provide more convenience and access to the public.

ï¿½ Jones County (involving 10 miles of trails, six miles south of Hillsboro):
The purpose was to construct a trail for all- terrain vehicles. A total of $
56,000 in federal funds made available under the Transportation Enhancement
Act for the 21 st Century was lost as result of the project's suspension.

Shooting Range

ï¿½ Putnam County (involving 4- 6 acres, 7 miles southwest of Eatonton): The
purpose was to provide a facility for shooting enthusiasts in the Putnam
County area.

ï¿½ Greene County (involving 7 acres, 8 miles northwest of Greensboro): The
purpose was to construct a facility to ensure public safety.

Enclosure I

GAO- 01- 51R Forest Management Projects 23 Timber Stand Improvement

ï¿½ Greene, Jasper, Jones and Putnam counties (involving 402 acres): The
purpose was to free a selected crop tree from competing vegetation that was
surrounding or overtopping vegetation. A small business contract totaling
$10,450 was cancelled as a result of the project's suspension.

Tallulah Ranger District

Timber Sale Projects

ï¿½ Rabun County (Compartment 32): The purpose was to (1) provide for the
sustained yield of products and services resulting from multiple- use
management; (2) manage for a diversity of plant and animal communities and
tree species to meet multiple- use objectives; (3) manage for the production
of high- quality saw- timber; and (4) provide the public with a wide range
of hunting, fishing, and other opportunities to enjoy wildlife. The
remaining 358,000 board feet from the sale has a value of $17,794. The
purchaser estimated that about 75 percent of their business was from
harvesting National Forest timber. The purchaser obtained additional timber
to replace the volume contained in the suspended sale in order to continue
to supply its mills. In addition, the purchaser has a claim against the
Forest Service.

ï¿½ Rabun County (Compartment 5): The purpose was to (1) emphasize a sustained
high annual or regular periodic output of various renewable resources
(including timber products and wildlife habitat); (2) manage for the
production of high- quality hardwood and pine saw- timber size trees; (3)
provide a diverse and productive habitat for wildlife and fish, clean water
and air, recreation opportunities, valuable wood products, and long- term
stability of the ecosystem; (4) provide the public with a wide range of
hunting, fishing, and nonconsumptive opportunities for enjoying wildlife;
and (5) provide for the diversity of plant and animal communities and tree
species to meet multiple- use objectives. The remaining 1,694,000 board feet
from the sale has a value of $209,533. This sale was one of the sales
subject to the original litigation. The purchaser estimated that about 30
percent to 50 percent of their business was from harvesting National Forest
timber. The purchaser has filed a claim against the Forest Service for lost
revenue because it was forced to use white and red oak in its mill in lieu
of the white pine, completed roadwork, and had bonding costs.

ï¿½ Rabun County (Compartment 59): The purpose was to (1) emphasize a
sustained high annual or regular periodic output of various renewable
resources (including timber products and wildlife habitat); (2) provide for
diversity of plant and animal communities and tree species to meet multiple-
use objectives; (3) manage fish and wildlife habitats to maintain viable
populations of the native vertebrate species and to maintain and improve the
habitat of management indicator species; (4) provide the public with a wide
range of hunting, fishing, and nonconsumptive opportunities to

Enclosure I

GAO- 01- 51R Forest Management Projects 24 enjoy wildlife; and (5) manage
for the production of high- quality hardwood and pine

saw- timber size trees. The remaining 1,292,000 board feet from the sale has
a value of $169,428. This sale was one of the sales subject to the original
litigation. The purchaser for this compartment was the same as Compartment
32 (see above for related comments).

Camp Site Renovation

ï¿½ Rabun County (involving 40 acres, 15 miles northwest of Clayton): The
purpose was to address existing soil and water issues. Sedimentation
resulting from heavy public use was causing resource degradation and
lessening the recreation experience for users. Plans were to close some
existing camping sites and to develop new ones in areas that would have less
impact on Sarah's Creek.

Prescribed Burning

ï¿½ Rabun County (involving 4,156 acres): The purpose was to reduce the risks
of wildfire and restore the Table Mountain Pine species.

Wildlife Opening Maintenance

ï¿½ Rabun County (involving 8 acres, 10 miles northeast of Clayton): The
purpose was to improve wildlife habitat and remove rough for discing.

Timber Stand Improvement

ï¿½ Rabun County (involving 325 acres): The purpose was to free a selected
crop tree from competing vegetation that was surrounding or over- topping
vegetation. A small business contract totaling $19,500 was cancelled as a
result of the project's suspension.

Toccoa Ranger District

Timber Sale Projects

ï¿½ Fannin County (Compartments 646, 647, 665, and 666): The purpose was to
(1) emphasize a sustained high- level annual or regular periodic output of
various renewable resources; (2) provide a sustained yield of products and
services resulting from multiple- use management; (3) manage for the
production of high- quality hardwood and pine saw- timber size trees; (4)
provide diversity of plant and animal communities and tree species to meet
multiple- use objectives; (5) manage fish and wildlife habitats to maintain
viable populations of the native vertebrate species and to maintain and
improve the habitat of management indicator species; (6) provide the public
with a wide range of hunting, fishing, and nonconsumptive opportunities to
enjoy wildlife; and (7) construct 3 wildlife openings. The remaining 864,000
board

Enclosure I

GAO- 01- 51R Forest Management Projects 25 feet from the sale has a value of
$113,889. We were unsuccessful in contacting the

purchaser to discuss the impact.

ï¿½ Fannin County (Compartment 617): The purpose was to (1) provide a
sustained yield of products and services resulting from multiple- use
management and emphasize a sustained high level annual or regular periodic
output of various renewable resources (including timber products and
wildlife habitat); (2) provide a diversity of plant and animal communities
and tree species to meet multiple- use objectives; and (3) manage fish and
wildlife habitats to maintain viable populations of the native vertebrate
species and to maintain and improve the habitat of management indicator
species. The remaining 611,000 board feet from the sale has a value of
$88,311.

ï¿½ Gilmer County (Compartments 673 and 698): The purpose was to (1) emphasize
a sustained high level annual or regular periodic output of various
renewable resources (including timber products and wildlife habitat); (2)
provide for a sustained yield of products and services; (3) manage for the
production of high- quality hardwood and pine saw- timber size trees; (4)
provide diversity of plant and animal communities and tree species to meet
multiple- use objectives; (5) manage fish and wildlife habitats to maintain
viable populations of the native vertebrate species and to maintain and
improve the habitat of management indicator species; and (6) provide the
public with a wide range of hunting, fishing, and nonconsumptive
opportunities to enjoy wildlife. The remaining 523,000 board feet from the
sale has a value of $33,634. We were unsuccessful in contacting the
purchaser to discuss the impact.

ï¿½ Fannin County (Compartment 621): The purpose was to (1) emphasize a
sustained high level annual or regular periodic output of various renewable
resources (including timber products and wildlife habitat); (2) provide a
sustained yield of products and services; (3) manage for the production of
high- quality hardwood and pine saw- timber size trees; (4) provide
diversity of plant and animal communities and tree species to meet multiple-
use objectives; (5) manage fish and wildlife habitats to maintain viable
populations of the native vertebrate species and to maintain and improve the
habitat of management indicator species; and (6) provide the public with a
wide range of hunting, fishing, and nonconsumptive opportunities to enjoy
wildlife. The remaining 258,000 board feet from the sale has a value of
$21,892. We were unsuccessful in contacting the purchaser to discuss the
impact.

Prescribed Burning

ï¿½ Union and Fannin counties (involving 4,445 acres): The purpose was to
reduce the risk of wildfires and improve wildlife habitat.

Enclosure I

GAO- 01- 51R Forest Management Projects 26 Wildlife Opening Development

ï¿½ Lumpkin County (involving 3 acres, 12 miles northwest of Dahlonega): The
purpose was to develop an opening to provide diversity and produce a
nutritional supplemental food source for the local habitat.

ï¿½ Fanin County (involving 3 acres, 16 miles southeast of Blue Ridge): The
purpose was to develop an opening to provide diversity and produce a
nutritional supplemental food source for the local habitat.

Timber Stand Improvement

ï¿½ Fannin County (involving 450 acres): The purpose was to free a selected
crop tree from competing vegetation that is surrounding or overtopping
vegetation. A small business contract totaling $27,000 was cancelled as a
result of the project's suspension.

Enclosure II

GAO- 01- 51R Forest Management Projects 27

Timber Cut and Sold From the National Forests in Alabama, Florida, and
Georgia, Fiscal Years 1996 Through June 2000

The national forests in Alabama, Florida, and Georgia experienced a decrease
in the amount of timber cut and sold for fiscal years 1996 through June
2000.

Board feet in thousands

1996 1997 1998 1999 2000 (through June) State Sold Cut Sold Cut Sold Cut
Sold Cut Sold Cut

Alabama 47,890 65,027 26,464 31,364 28,522 32,694 13,279 19,449 3,804 14,910
Florida 48,782 35,830 35,729 32,295 42,656 51,229 22,451 26,148 20,461
22,097 Georgia 34,920 40,006 11,244 27,089 19,628 13,750 3,782 9,263 335 716
Subtotal 131,592 140,863 73,437 90,748 90,806 97,673 39,512 54,860 24,600
37,723 Total for the Southern Region 678,160 847,349 606,612 571,596 667,299
636,749 406,635 594,761 294,415 360,652

Source: GAO's presentation of data provided by the Forest Service's Southern
Regional Office.

Enclosure III

GAO- 01- 51R Forest Management Projects 28

25- Percent Payments From Timber Receipts to Counties in Georgia and
Alabama, Fiscal Years 1996 Through 1999

The following two tables present the funds counties in Georgia and Alabama
received from the 25- percent payments that are based on the amount of
national forest acreage in each county.

Table III. 1: 25- Percent Payments From Timber Receipts to Counties in
Georgia, by National Forest, Fiscal Years 1996 Through 1999

National forest and county

1996 1997 1998 1999 Chattahoochee National Forest

Banks $502 $386 $208 $87 Catoosa 5 4 2 1 Chattooga 14,973 11,520 6,216 2,592
Dawson 5,220 4,016 2,167 904 Fannin 81,913 63,036 34,014 14,184 Floyd 5, 113
3,934 2,122 885 Gilmer 42,361 32,290 17,424 7,266 Gordon 6,236 4,798 2,589
1,080 Habersham 30,780 23,688 12,782 5,330 Lumpkin 43,970 33,829 18,254
7,612 Murray 39,383 30,509 16,462 6,865 Rabun 114,860 88,400 47,717 19,899
Stephens 17,995 13,845 7,471 3,115 Towns 44,430 34,183 18,445 7,692 Union
75,566 58,140 31,372 13,083 Walker 14,551 11,195 6,041 2,519 White 31,853
24,511 13,239 5,527 Whitfield 9, 049 6,962 3,757 1,567

Subtotal $578,760 $445,246 $240,282 $100,208 Oconee National Forest

Greene $59,122 $39,472 $11,354 $38,530 Jasper 63,360 42,315 12,172 41,298
Jones 34,793 23,229 6,682 22,675 Monroe 534 356 102 348 Morgan 916 611 176
597 Oconee 335 224 64 218 Oglethorpe 8,029 5,361 1,542 5,233 Putnam 79,372
52,992 15,243 51,727

Subtotal $246,461 $164,560 $47,335 $160,626 Total $825,221 $609,806 $287,617
$260,834

Source: GAO's presentation of data from the Forest Service's Southern
Regional Office.

Enclosure III

GAO- 01- 51R Forest Management Projects 29

Table III. 2: 25- Percent Payments From Timber Receipts to Counties in
Alabama, by National Forest, Fiscal Years 1996 Through 1999

National forest and county 1996 1997 1998 1999 Bankhead National Forest

Franklin $2,264 $1,351 $1,780 $1,251 Lawrence 166,643 99,475 131,085 92,065
Winston 164,536 97,998 129,137 90,696

Subtotal $333,443 $198,824 $262,002 $184,012 Conecuh National Forest

Covington $708,238 $136,482 $ 84,629 $22,915 Escambia 379,250 73,084 45,316
12,270

Subtotal $1,087,488 $209,566 $129,945 $35,185 Talladega National Forest

Bibb $93,059 $86,668 $115,523 $63,442 Calhoun 36,232 33,700 44,921 24,711
Cherokee 3,483 3,240 4,318 2,371 Chilton 35,106 32,884 43,832 24,071 Clay
98,103 91,592 122,087 67,047 Cleburne 146,899 137,033 182,658 100,310 Dallas
3, 247 3,020 4,025 2,211 Hale 43,593 40,547 54,046 29,680 Perry 50,137
46,633 62,162 34,136 Talladega 68,523 65,169 87,057 47,809 Tuscaloosa 16,341
15,199 20,259 11,125

Subtotal $594,723 $555,685 $740,888 $406,913 Tuskegee National Forest

Macon $34,224 $344 $2 $1,030

Total $2,049,878 $964,419 $1,132,837 $627,140

Source: GAO's presentation of data from the Forest Service's Southern
Regional Office.

Enclosure IV

GAO- 01- 51R Forest Management Projects 30

Comments From the U. S. Department of Agriculture

Enclosure IV

GAO- 01- 51R Forest Management Projects 31

Orders by Internet

For information on how to access GAO reports on the Internet, send an e-
mail message with “info” in the body to

info@ www. gao. gov or visit GAO's World Wide Web home page at http:// www.
gao. gov

To Report Fraud, Waste, and Abuse in Federal Programs

Web site: http:// www. gao. gov/ fraudnet/ fraudnet. htm E- mail: fraudnet@
gao. gov Automated answering system: 1- 800- 424- 5454
*** End of document. ***