BLM Public Domain Lands: Volume of Timber Offered for Sale Has	 
Declined Substantially Since Fiscal Year 1990 (19-JUN-03,	 
GAO-03-615).							 
                                                                 
For several decades, debate over how to balance timber sales with
resource protection and recreational use on federally managed	 
lands has been at the heart of controversy surrounding federal	 
land management. The Department of the Interior's Bureau of Land 
Management (BLM) is one of the federal agencies that manages some
of the nation's forests--about 53 million acres--under its public
domain forestry management program and offers timber for sale	 
from these lands. With regard to BLM's offerings of timber for	 
sale, congressional requesters asked GAO to determine (1) the	 
statutory framework for BLM timber sales, (2) the trend in BLM	 
timber volume offered for sale, and (3) factors contributing to  
any observed trends. GAO reviewed laws, regulations, and BLM	 
policy governing BLM timber sales. GAO obtained and reviewed data
on the volumes and composition of BLM timber sale offerings from 
fiscal years 1990 through 2002 and met with agency officials and 
others to identify factors affecting timber sale offering trends 
and their importance.						 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-03-615 					        
    ACCNO:   A07268						        
  TITLE:     BLM Public Domain Lands: Volume of Timber Offered for    
Sale Has Declined Substantially Since Fiscal Year 1990		 
     DATE:   06/19/2003 
  SUBJECT:   Forest conservation				 
	     Forest management					 
	     National forests					 
	     Timber sales					 
	     Land management					 
	     Environmental law					 
	     Environmental monitoring				 

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GAO-03-615

Report to Congressional Requesters

United States General Accounting Office

GAO

June 2003 BLM PUBLIC DOMAIN LANDS

Volume of Timber Offered for Sale Has Declined Substantially Since Fiscal
Year 1990

GAO- 03- 615

A variety of land management and other environmental laws provide the
statutory framework for timber sales on BLM public domain land. In
particular, the Federal Land Policy and Management Act permits timber
sales as one of several uses for BLM public lands. Timber sales also must
comply with other environmental laws, such as the National Environmental
Policy Act, the Endangered Species Act, and the Clean Water Act.

From 1990 to 2002, the volume of timber offered for sale by BLM declined
about 74 percent. Declines were experienced for each of the timber*s
components* sawtimber (trees or logs suitable for conversion into lumber)
and other wood products (small logs used to make firewood, posts, and
poles). Consequently, in 2002, the proportion of sawtimber in the total
volume offered for sale was less than it was in 1990.

The principal factor contributing to the decline in timber volume was the
governmentwide shift in forestry program emphasis beginning in the late
1980s from timber production to enhancing forest ecosystem health. This
shift was based on the need to provide more protection for nontimber
resources and to place a greater emphasis on the removal of smaller trees
to reduce the risks of insects, fire, and disease. As a result, according
to BLM officials, timber became a by- product rather than the focus of
BLM*s management of its public domain forests.

BLM Public Domain Timber Offered for Sale by Type, Fiscal Years 1990
through 2002

Note: BLM could not provide volume data for other wood products for fiscal
years 1994 through 1996.

For several decades, debate over how to balance timber sales with resource
protection and recreational use on federally managed lands has been at the
heart of controversy surrounding federal land management. The Department
of the Interior*s Bureau of Land Management (BLM) is one of the federal
agencies that manages some of the nation*s forests* about 53 million
acres* under its public domain forestry management program and offers
timber for sale from these lands.

With regard to BLM*s offerings of timber for sale, congressional
requesters asked GAO to determine (1) the statutory framework for BLM
timber sales, (2) the trend in BLM timber volume offered for sale, and (3)
factors contributing to any observed trends.

GAO reviewed laws, regulations, and BLM policy governing BLM timber sales.
GAO obtained and reviewed data on the volumes and composition of BLM
timber sale offerings from fiscal years

1990 through 2002 and met with agency officials and others to identify
factors affecting timber sale offering trends and their importance.

www. gao. gov/ cgi- bin/ getrpt? GAO- 03- 615. To view the full product,
including the scope and methodology, click on the link above. For more
information, contact Barry T. Hill at (202) 512- 3841 or hillbt@ gao. gov.
Highlights of GAO- 03- 615, a report to Congressional Requesters

June 2003

BLM PUBLIC DOMAIN LANDS

Volume of Timber Offered for Sale Has Declined Substantially Since Fiscal
Year 1990

Page i GAO- 03- 615 BLM Timber Sales Letter 1 Results in Brief 1
Background 3 Federal Land Policy and Management Act and Other

Environmental Laws Provide the Statutory Framework for BLM Timber Sales 4
The Volume and Composition of BLM Timber Sale Offerings from Public Domain
Lands Have Changed Significantly Since 1990 5 Shift in Program Emphasis
Was the Primary Cause of the Decline in Timber Offered for Sale 7 Agency
Comments and Our Evaluation 12 Scope and Methodology 12 Appendix I Public
Domain Forest and Woodland Acres by BLM

State Office 15

Appendix II Volume of Timber Offered for Sale from BLM Public Domain
Forests and Woodlands, Fiscal Years 1990 through 2002 16

Appendix III Volume of Timber Offered for Sale from Public Domain Lands by
BLM State Office, Fiscal Years 1990 and 2002 17

Appendix IV Comments from the Department of the Interior 18

Appendix V GAO Contacts and Staff Acknowledgments 22 Contents

Page ii GAO- 03- 615 BLM Timber Sales Tables

Table 1: Public Domain Forest and Woodland Acres by BLM State Office 15
Table 2: Annual Volume of Timber Offered for Sale from BLM

Public Domain Forests and Woodlands, Fiscal Years 1990 through 2002 16
Table 3: Volume of Timber Offered for Sale from Public Domain

Lands by BLM State Office, Fiscal Years 1990 and 2002 17 Figures

Figure 1: BLM Public Domain Timber Offered for Sale by Type, Fiscal Years
1990 through 2002 5 Figure 2: Proportion of BLM Public Domain Timber
Offerings by

Type, Fiscal Years 1990 and 2002 6 Abbreviations

BLM Bureau of Land Management FLPMA Federal Land Policy and Management Act
of 1976 This is a work of the U. S. Government and is not subject to
copyright protection in the

United States. It may be reproduced and distributed in its entirety
without further permission from GAO. It may contain copyrighted graphics,
images or other materials. Permission from the copyright holder may be
necessary should you wish to reproduce copyrighted materials separately
from GAO*s product.

Page 1 GAO- 03- 615 BLM Timber Sales

June 19, 2003 Congressional Requesters: Currently, federally managed
forests provide an estimated 7 percent of the nation*s domestically
produced timber and wood products while serving several other functions,
such as providing habitat for over a third of all threatened and
endangered species, serving as the nation*s single largest source of
water, and providing increasingly popular recreational destinations. For
several decades, debate over how to balance timber sales with resource
protection and recreational use on federally managed lands has been at the
heart of controversy surrounding federal forest land

management. While the Forest Service manages most federal forest lands,
the Department of the Interior*s Bureau of Land Management (BLM) also
manages some of these federal forests* encompassing about 53 million
acres* located primarily in 12 western states, under its public domain
forestry management program. BLM refers to lands under this program as
public domain lands.

In relation to BLM*s offerings of timber for sale under its public domain
forestry management program, you asked us to determine (1) the statutory
framework for BLM timber sales, (2) the trend in BLM timber volume offered
for sale, and (3) factors contributing to any observed trends.

To meet these objectives, we reviewed laws, regulations, and policy
documents governing BLM*s timber sales; obtained and reviewed information
on the volumes and composition of timber offered for sale from BLM*s
annual statistical report and its timber sale information system; and met
with BLM headquarters officials and contacted several BLM state and field
offices to identify the factors and their importance.

BLM*s timber sales under its public domain forestry management program are
governed by a statutory framework that consists of a land management
statute and other environmental laws. The Federal Land Policy and
Management Act of 1976* the principal law under which BLM manages its
public domain forestry management program* requires BLM to manage its
public lands in accordance with the principles of multiple use and
sustained yield, that is, at levels that can be achieved and maintained in
perpetuity. The act gives BLM broad management discretion over how it
emphasizes one use in relation to another. BLM*s timber sales on public
domain lands must also comply with the requirements of other

United States General Accounting Office Washington, DC 20548

Results in Brief

Page 2 GAO- 03- 615 BLM Timber Sales

environmental laws, including the National Environmental Policy Act, the
Endangered Species Act, and the Clean Water Act.

The total volume of timber offered for sale from BLM*s public domain lands
has declined from 101 million board feet of timber in fiscal year 1990 to
26 million board feet in 2002. 1 BLM*s offerings consist of two
components* sawtimber (trees or logs suitable for conversion into lumber)
and other wood products (small logs used to make firewood, posts, and
poles). The volume of each component also declined in the same time
period. Sawtimber declined from 80 million board feet to 14 million board
feet and other wood products declined from 21 million board feet to 11
million board feet. Consequently, in 2002 the proportion of sawtimber in
the total volume offered for sale was less than it was in 1990.

A shift in program emphasis from timber production to enhancing forest
ecosystem health that took place in the late 1980s was the principal
factor contributing to the decline in BLM*s timber volume offered for
sale. Federal officials made the shift in order to (1) provide more
protection for nontimber resources such as recreation, water quality, and
species habitat, which timber harvesting can adversely affect and (2)
focus forest management on the removal of smaller trees and brush to
reduce the risks of insects, disease, and wildfire. According to BLM
officials, responding to these needs has resulted in timber production
becoming a by- product,

rather than a focus, of BLM*s management of its lands. In responding to a
draft of this report, the department pointed out that the report achieved
its three objectives. The department also said that BLM has begun to act
on some of the findings in the draft report, including recruiting new
foresters, in part to support the National Fire Plan. Furthermore, the
department said that the President*s fiscal year 2004 budget proposes a $1
million increase in funding for the public domain forests and woodlands
management program. The increased funding, according to the department,
will be used to improve utilization of small- diameter wood materials,
improve forest health, and provide entrepreneurial opportunities in the
wood product industry.

1 A board foot is a measure of timber volume equal to a board one inch
thick and one foot in both length and width.

Page 3 GAO- 03- 615 BLM Timber Sales

BLM, within the Department of the Interior, and the Forest Service, within
the Department of Agriculture, are the two primary federal agencies
involved with timber sales. In terms of acreage, the Forest Service
manages over 192 million acres of national forest system land. In
contrast, BLM manages about 261 million acres of public lands, of which
about 55 million acres are forests and woodlands. BLM administers two
forestry programs: one on public domain lands and one in western Oregon. 2
BLM*s

public domain forestry management program covers 53 million acres* about 9
million acres of forests and about 44 million acres of woodlands. 3
Appendix I provides a detailed listing of forest and woodland acreage

administered under BLM*s public domain forestry management program. BLM*s
forests and woodlands on public domain lands are primarily in 12 western
states. Much of these lands tend to be in small, isolated parcels that are
not as productive as BLM*s western Oregon lands or the larger forests
managed by the Forest Service. BLM manages its public domain lands through
a multilevel organization* national office, 12 state offices, and about
130 field offices* that carries out a variety of agency programs and
activities including recreation and fish and wildlife protection, in
addition to timber.

BLM*s public domain forestry management program received a small portion
of the agency*s $1.8 billion annual budget for fiscal year 2002. The
Congress appropriated about $6.2 million for the public domain forestry
management program in fiscal year 2002. 4 Timber offered for sale on
public domain lands includes sawtimber and

other wood products. Sales of sawtimber and some other wood products are
initiated by soliciting bids from prospective buyers. In addition, BLM
offers other wood products to the public through a permit process.

2 BLM*s program for forests and woodlands in western Oregon covers about
2.4 million acres that are highly productive. 3 BLM defines forests as
those lands dominated by tree species that are typically used commercially
by the forest products industry, and woodlands as those lands dominated by
other tree species. Woodlands typically have significantly lower
productivity than forests.

4 The appropriation included an additional $1.4 million for the Headwaters
Forest Reserve in California. According to BLM, this amount was not
available for the public domain forestry management program. Background

Page 4 GAO- 03- 615 BLM Timber Sales

BLM manages its public domain forestry management program within a
statutory framework consisting of a land management statute and various
other environmental laws. The Federal Land Policy and Management Act

of 1976 (FLPMA)* the principal law under which BLM manages its public
domain forestry management program* requires BLM to manage its public
lands under the principles of multiple use and sustained yield. 5 FLPMA
gives BLM broad management discretion over how it emphasizes one use, such
as offering timber for sale, in relation to another, such as providing
recreation. Among other things, multiple use management aims at a
combination of balanced and diverse resource uses that take into account
the long- term needs of future generations for renewable resources (for

example, timber) and nonrenewable resources (for example, minerals). FLPMA
states that BLM should consider fish and wildlife; recreation; minerals;
range; ecological preservation; timber; watershed; natural scenic,
scientific, and historical values; and other resources, as it balances
public land uses. Under the principle of sustained yield, BLM seeks to

achieve and maintain high output levels of all renewable resources in
perpetuity. Under FLPMA, BLM has broad discretion in managing its timber
sales. During its land use planning process, BLM identifies areas that are
available and have the capacity for planned, sustained- yield harvest of
timber or other forest products.

BLM timber sales on public domain lands must also comply with the
requirements of other environmental laws, including the National
Environmental Policy Act, the Endangered Species Act, and the Clean Water
Act. For major federal actions that may significantly affect the quality
of the human environment, the National Environmental Policy Act requires
all federal agencies, including BLM, to analyze the potential
environmental effects of a proposed project, such as a timber sale.
Regulations implementing the National Environmental Policy Act require
agencies to include a discussion of how to mitigate adverse impacts and a
discussion of those impacts that cannot be avoided under the federal
action. Under the Endangered Species Act, BLM must ensure that its actions
are not likely to jeopardize the continued existence of species listed as
threatened or endangered or to destroy or adversely modify habitat
critical to their survival. Similarly, the requirement to meet standards
for water quality under the Clean Water Act may limit the timing,
location, and volume of timber sales.

5 43 U. S. C. S:S: 1701( a)( 7), 1732( a). Federal Land Policy

and Management Act and Other Environmental Laws Provide the Statutory
Framework for BLM Timber Sales

Page 5 GAO- 03- 615 BLM Timber Sales

BLM*s annual volume of timber offered for sale from public domain lands
declined 74 percent from 101 million board feet of timber in fiscal year
1990 to 26 million board feet in 2002. Over the same period, the volume of
the two components of BLM offerings* sawtimber and other wood

products* also declined: sawtimber from 80 million to 14 million board
feet (81 percent) and other wood products from 21 million to 11 million
board feet (46 percent). See figure 1. Figure 1: BLM Public Domain Timber
Offered for Sale by Type, Fiscal Years 1990 through 2002

Note: BLM could not provide volume data for other wood products for fiscal
years 1994 through 1996. Appendix II includes more detailed information on
the volume of BLM public domain timber offered for sale from fiscal year
1990 through 2002. Mirroring the overall national decline, each BLM state
office experienced declines in the volume of timber offered for sale from
fiscal year 1990 The Volume and

Composition of BLM Timber Sale Offerings from Public Domain Lands Have
Changed Significantly Since 1990

Page 6 GAO- 03- 615 BLM Timber Sales

through 2002. Eastern Oregon experienced the sharpest decline* from 56
million to 8 million board feet* representing nearly two- thirds of the
overall decline. A BLM official explained that eastern Oregon offered an
abnormally high volume of timber for sale in fiscal years 1990 and 1991,
primarily due to a large salvage logging effort following a mountain pine
beetle epidemic. For perspective, from fiscal years 1985 through 1989,
eastern Oregon offered an average of 22 million board feet of timber per
year. Appendix III shows the volume of timber that each BLM state office
offered for sale in 1990 and in 2002 and the amount of decline.

As a consequence of the decline in the volume of timber offered for sale
during fiscal years 1990 through 2002, the proportion of the volume*s two
components also changed. As shown in figure 2, sawtimber represented over
three- quarters of the total volume in fiscal year 1990, but had decreased
to slightly more than one- half of the total volume by

fiscal year 2002. In contrast, the proportion of other wood products
increased from about one- fifth of the total volume in 1990 to about one-
half of the total volume in fiscal year 2002.

Figure 2: Proportion of BLM Public Domain Timber Offerings by Type, Fiscal
Years 1990 and 2002

Page 7 GAO- 03- 615 BLM Timber Sales

Beginning in the late 1980s, the program emphasis on BLM public domain
lands, like that on most other federal forests, increasingly shifted from
timber production to emphasizing forest ecosystem health. 6 This shift in
emphasis, required by changing forest conditions and needs, helped cause a
reduction in the volume of timber removed from all federal lands,
including BLM public domain lands. As a result of this decline in supply

volume, some sawmills that formerly processed BLM timber have closed,
making it more difficult for BLM to market timber in some areas. In
addition, the emphasis on forest ecosystem health has increased some of
the costs associated with timber sales preparation, as staff must now
prepare more extensive analysis of the effects of the timber harvest on
other resources. Faced with generally declining funding levels and fewer
foresters to prepare timber sales, and subsequently fewer sales, BLM*s
volume of timber offered for sale from its public domain lands declined.

The 74 percent decline in the volume of timber sale offerings from BLM
public domain lands since 1990, according to BLM officials, was primarily
due to the shift in program emphasis to forest ecosystem health. We
previously reported that this shift in emphasis caused large declines in
timber production from all federal forests. 7 BLM*s decline mirrored a
similar decline in offerings from the 155 national forests. For example,
between 1990 and 1997 the volume of timber offered for sale from the
national forests managed by the Forest Service declined about 65 percent,
from 11 billion to 4 billion board feet.

Since the late 1980s, growing concerns over declining ecological
conditions on federal lands* such as poor animal habitat and water
quality* resulted in federal agencies adopting a new, more scientifically
based management approach, referred to then as ecosystem management. BLM
officially adopted this approach to implementing its land

6 Several terms have been used when referring to this program emphasis and
its various dimensions, including *ecosystem management,* *forest health,*
*land health,* and *forest ecosystem health.* These terms (1) all
generally refer to approaches for managing timber and other resources in
relation to one another or desired overall conditions of forest
ecosystems, (2) have no generally accepted definitions, and (3) are
sometimes, but not

always, used interchangeably. In this report we have used the term *forest
ecosystem health* because, in our view, it broadly reflects important
dimensions of the shift in program emphasis discussed and it encompasses
both the program objective (forest health) and the management approach
used to achieve it (ecosystem management).

7 Forest Service Priorities: Evolving Mission Favors Resource Protection
Over Production, GAO/ RCED- 99- 166 (Washington, D. C.: June 17, 1999).
Shift in Program

Emphasis Was the Primary Cause of the Decline in Timber Offered for Sale
Shift in Program Emphasis

to Forest Ecosystem Health Has Contributed to Reduced Timber Sale
Offerings

Page 8 GAO- 03- 615 BLM Timber Sales

management responsibilities in 1994 to sustain resource usage in an
ecosystem* including timber production* while maintaining, and restoring
where damaged, the natural functioning of interdependent communities of
plants and animals and their physical environment (soil, water, air). 8 In
revising forest management policy for public domain lands, BLM increased
its emphasis on managing for forest ecosystem conditions, in addition to
providing for sustained yield of its forests and woodlands. This new
policy recognized the role that insects, disease, fire, and other
disturbance mechanisms, as well as noncommercial plant species, play in
ecosystems.

The reduction in the volume of timber offered for sale also resulted from
environmental statutes and their judicial interpretations arising from
lawsuits brought by environmental and recreational organizations. In order
to increase protection of wildlife habitat, recreation, and stream
quality, the volume of timber offered for sale was reduced for the
following reasons: (1) some forest areas where timber sales had been
planned could not be used for this purpose; (2) in some areas where trees
could be harvested, fewer trees could be removed because of limitations on
clear- cutting; and (3) in some cases, BLM would not offer timber for sale
where the removal costs were too expensive for buyers. BLM officials cited
several instances where an increased emphasis on

providing greater protection to forest ecosystem resources from the
adverse effects of timber harvesting had resulted in reductions of timber
offerings on BLM public domain lands since 1990. For example, an official
in the BLM Idaho state office noted that harvesting timber by clear-
cutting is no longer performed in many locations. Likewise, concerns about

potential harm to the habitat of threatened or endangered species, such as
lynx and bull trout, led to a reduced volume of timber offered for sale.
In addition, some current harvesting methods cost more and result in less
volume, but potentially cause less harm to the species and its habitat.
BLM officials told us that in eastern Oregon they offered sales in areas
where there were fewer concerns about the harm to habitat in order to
reduce the probability of public challenge. Additionally, BLM officials in
Idaho and Oregon told us that the need to sometimes use helicopters to
remove harvested trees, in order to protect other resources from effects
that would result, for example, from constructing roads to access and
remove

8 Ecosystem Management in the BLM: From Concept to Commitment (Department
of the Interior, Bureau of Land Management, January 1994).

Page 9 GAO- 03- 615 BLM Timber Sales

timber, drove up costs and further reduced the amount of timber they could
offer for sale. In the 1990s, growing concerns about changes in forest
structure and

composition, and the long- term threats that these changes posed to forest
ecosystem health, further contributed to the declines in the volume of
timber offered for sale from federal forests, including from BLM public
domain lands. The principal change in forest structure that was of concern
was the increasing density of tree stands in forests, especially of
smaller trees and brush. Among the changes in forest composition of most
concern was a reduction in the diversity of tree species. Both types of
change stemmed largely from decades of previously accepted forest
management practices, such as the exclusion of naturally occurring
periodic fires that removed smaller trees and undergrowth; replacement,
after clear- cutting, of mixed native species with a single species; and a
failure to carry out planned thinning of forests.

Overly dense, less diverse forests can lead to increasingly widespread
insect and disease infestations and greatly increase the risk of
catastrophic wildfires. Such wildfires can severely damage tree stands,
wildlife habitat, water quality, and soils, and threaten human health,
lives, property, and

infrastructure in nearby communities. According to BLM, the need to reduce
forest density and restore composition diversity in forest ecosystems has
necessitated a refocusing of federal forest management activities,
including timber sale offerings, on the removal of smaller trees and
materials that generate less volume than the larger trees more commonly
offered for sale in prior years.

BLM program management officials stated that the need to restore the
structure and composition of forests is currently the primary reason that
the timber removed from public domain lands will have to continue to be
more heavily weighted towards nonsawtimber and small- diameter trees. In
many cases, the materials that need to be removed have little or no

commercial value, and thus do not affect the overall volume of timber
offered for sale. For example, a BLM official in a Colorado field office
told us that any increase in funding would first concentrate on a backlog
of areas that were overstocked following harvests several years ago, but

were never thinned of small trees that had no commercial value. BLM
officials could not quantify the effect of the shift to forest ecosystem
health on the overall decline in the volume of timber sale offerings since
1990. They noted, however, that the shift had resulted in timber becoming

Page 10 GAO- 03- 615 BLM Timber Sales

largely a by- product, rather than a focus, of the public domain forestry
management program. The decline in the volume of timber sale offerings
from federal forests as

a result of the shift in emphasis to forest ecosystem health has resulted
in a reduced supply of materials for sawmills in many areas. According to
two reports 9 principally authored by The University of Montana*s Bureau
of Business and Economic Research and the Forest Service, the volume of
timber from national forests received by mills in Idaho and Montana
declined in the 1990s. For example, in Idaho, the volume declined from
about 729 million board feet in 1990 to 301 million board feet in 1995,
representing a decline of 59 percent. In Montana, the volume declined from
about 318 million board feet in 1993 to 215 million board feet in 1998,
representing a decline of 32 percent. According to these reports, the
reduced mill capacity in these states was due primarily to the decline in
timber availability from national forests. Furthermore, these reports
indicated that the decline in timber volume from the national forests was
a contributing factor to the closure of at least 30 sawmills in these two
states. Other factors mentioned by these reports as contributing to
sawmill closures included fluctuations in lumber prices, changes in the
volume of exports and imports of lumber, and changes in the structure of
the industry. According to BLM officials, the primary reason for sawmill
closures was

the decline in the supply of timber from the larger, more productive
Forest Service lands near BLM lands. However, they noted that purchasers
of timber from BLM public domain lands also used these mills. For example,
officials in some field offices in Colorado and Idaho said several nearby
mills had closed, leading purchasers to transport timber to more distant
mills for processing. As a result, the officials noted that the purchasers
of timber from these offices have experienced higher transportation costs,
thereby reducing the attractiveness of purchasing timber from BLM public
domain lands. The officials told us that because of the relatively small
volume of timber offered for sale from BLM public domain lands, a return

9 Idaho*s Forest Products Industry: A Descriptive Analysis 1979- 1996 (The
Bureau of Business and Economic Research, School of Business
Administration, The University of Montana, December 1997) and Montana*s
Forest Products Industry: A descriptive analysis, 1969- 2000 (The Bureau
of Business and Economic Research, School of Business Administration, The
University of Montana, September 2001). Shift in Program Emphasis

Has Led to Mill Closures, BLM Staffing Changes, and Insufficient Inventory
Data During a Period of Declining Budgets

Page 11 GAO- 03- 615 BLM Timber Sales

to previous BLM sale offering levels would not result in sufficient supply
for the mills to reopen.

The shift in emphasis has also contributed to a need for more extensive
analysis and the hiring of more resource protection specialists during the
time that BLM*s funding for its public domain forestry management program
was generally declining. Consequently, less volume of timber was offered
because it takes longer and costs more to prepare a given volume of timber
for sale. According to officials, over the past decade, BLM has hired more
resource protection specialists, such as wildlife biologists, botanists,
and hydrologists, in order to better analyze the effects of potential
timber sales on other resources, such as wildlife habitat. At the same
time, many foresters, who are the primary staff involved in identifying
and preparing timber sales, have departed the agency either

through retirement or other means in recent years and have not been
replaced. For example, the number of BLM foresters decreased from 72 to 53
between fiscal year 1991 and fiscal year 2002. We were told that at some
field units there are no foresters remaining that have the skills needed
to

prepare timber sales. Furthermore, using constant 2002 dollars, BLM*s
appropriations for the public domain forestry management program declined
from $8.5 million in fiscal year 1990 to $6.2 million in 2002. Thus,

the higher preparation costs and smaller budgets have left BLM less able
to prepare timber sales. According to BLM, it has begun recruiting new
foresters and has requested an increase of $1 million in funding in fiscal
year 2004 for the public domain forestry management program.

In addition, BLM officials told us that for the past few years the agency
has not had the funding to develop better inventory information about
forests and woodlands in order to adequately assess the effects of timber
sales on the forest ecosystem. For example, they do not have current
information on the condition of forests and woodlands, such as tree
density, species composition, and the extent of forests and woodlands
affected by insects and disease* information needed to identify potential
timber sale offerings. According to the officials, some timber sales
cannot be prepared because BLM does not have credible inventory data
needed to justify

trade- offs between timber harvesting and other concerns, such as impacts
on animal species habitat. Agency officials said that the lack of
knowledge of its inventory has been a long- standing problem.

Page 12 GAO- 03- 615 BLM Timber Sales

We provided a draft of this report to the Department of the Interior for
review and comment. The department pointed out that the report achieved
its three objectives and that we had incorporated information based on
informal discussions with staff. The department said that BLM has begun to
act on some of the findings in the draft report, including recruiting

new foresters, in part to support the National Fire Plan. According to the
department, these foresters will help ensure that forest health
considerations, such as species composition, stand structure, and insect
or disease occurrence, are fully considered, in addition to hazardous fuel
reduction. BLM state directors have submitted detailed action plans to
meet state- specific needs for renewed emphasis on forests and woodlands
management. Furthermore, the department said that the President*s fiscal
year 2004 budget proposes a $1 million increase in funding for the public
domain forests and woodlands management program. The increased funding,
according to the department, will be used to improve utilization of small-
diameter wood materials, improve forest health, and provide
entrepreneurial opportunities in the wood product industry. We included
information in the report regarding BLM*s recruiting efforts and its
request

for additional funding. The department also made technical clarifications,
which we incorporated as appropriate. The department*s comments are
reprinted in appendix IV. To determine the legal framework for BLM timber
sales on public domain

lands, we reviewed laws and regulations governing BLM*s timber sales
activities. We also reviewed policy documents issued by headquarters and,
if available, supplemental guidance issued by state and field locations as
it relates to timber sales activities.

To determine the trend in the volume of timber that BLM offered for sale
from public domain lands, we obtained BLM information on the volumes and
composition* sawtimber, firewood, posts, poles, and other wood products*
of timber offered for sale by state office for fiscal years 1990 through
2002. We reviewed information contained in BLM*s Timber Sale Information
System and its annual publication, Public Land Statistics.

To determine what factors contributed to the trend in the volume of timber
offered for sale from public domain lands from 1990 to 2002, we met with
BLM headquarters officials and visited or contacted officials at 9 of the
12 BLM state offices and six field offices* two each in the states of
Colorado, Idaho, and Montana. We discussed with these officials how their
respective offices established timber sale goals, allocated forestry
Agency Comments

and Our Evaluation Scope and Methodology

Page 13 GAO- 03- 615 BLM Timber Sales

program funding, and monitored accomplishment of planned timber sales. We
also discussed with these officials BLM*s management emphasis on improving
forest health, and the trends in (1) market conditions for timber and
other wood products and (2) BLM funding and staffing. In addition, we
reviewed BLM*s budget justifications, strategic and annual plans and
reports, land use plans, and other materials related to BLM*s timber sales
activities. To gain further perspective on the market conditions of the
timber industry, we interviewed officials and reviewed timber industry
research publications from The University of Montana. Finally, to gain a
more detailed understanding of timber sales activities on public domain
lands, we met with officials in three BLM state offices* Colorado, Idaho,
and Montana* and visited several BLM timber sale projects that were

ongoing or had been completed recently. We conducted our review from May
2002 through May 2003 in accordance with generally accepted government
auditing standards.

We will send copies of this report to the Secretary of the Interior; the
Director of the Bureau of Land Management; the Director, Office of
Management and Budget; and other interested parties. We will also make
copies available to others upon request. In addition, the report will be
available at no charge on the GAO Web site at http:// www. gao. gov. If
you or your staff have any questions, please call me at (202) 512- 3841.
Key contributors to this report are listed in appendix V.

Barry T. Hill Director, Natural Resources

and Environment

Page 14 GAO- 03- 615 BLM Timber Sales

List of Requesters

The Honorable Larry Craig Chairman Subcommittee on Public Lands and
Forests Committee on Energy and Natural Resources United States Senate

The Honorable Scott McInnis Chairman Subcommittee on Forests and Forest
Health Committee on Resources House of Representatives

The Honorable George Radanovich Chairman Subcommittee on National Parks,
Recreation and Public Lands Committee on Resources House of
Representatives

The Honorable Michael Crapo United States Senate

The Honorable Gordon Smith United States Senate

Appendix I: Public Domain Forest and Woodland Acres by BLM State Office

Page 15 GAO- 03- 615 BLM Timber Sales

Table 1 shows the number of acres of forests and woodlands and their total
for each BLM state office.

Table 1: Public Domain Forest and Woodland Acres by BLM State Office

Acres in thousands BLM state office Forests Woodlands Total

Alaska a 5,297 22,982 28,279 Arizona 20 1,054 1,074 California 204 2,004
2,208 Colorado 1,069 3,041 4,110 Eastern States 0 30 30 Idaho 512 380 892
Montana 783 27 810 Nevada 5 6,269 6,274 New Mexico 44 941 985 Oregon
(excludes western Oregon) 194 847 1,041 Utah 338 5,735 6,073 Wyoming 474
530 1,004

Total 8,940 43,840 52,780

Source: BLM. a According to BLM, much of the land in Alaska is
inaccessible or too far from established markets to make timber harvesting
feasible. Appendix I: Public Domain Forest and Woodland Acres by BLM State
Office

Appendix II: Volume of Timber Offered for Sale from BLM Public Domain
Forests and Woodlands, Fiscal Years 1990 through 2002

Page 16 GAO- 03- 615 BLM Timber Sales

Table 2 identifies the volume, in board feet, of sawtimber, cords, posts,
poles, and other wood products offered for sale from public domain lands
from fiscal years 1990 through 2002. Table 2: Annual Volume of Timber
Offered for Sale from BLM Public Domain

Forests and Woodlands, Fiscal Years 1990 through 2002

Board feet in thousands

Other wood products Fiscal year Sawtimber Cords a Posts Poles Other b
Subtotal Total timber volume

offered

1990 c 80,116 19,227 1,733 254 14 21,228 101,344 1991 86,395 18,941 465
615 7 20,028 106,423 1992 59,161 16,691 457 1,756 234 19,138 78,299 1993
28,150 18,351 571 566 14 19,502 47,652 1994 d 13,672 d d d d d d 1995 d
61,128 d d d d d d 1996 d 25,168 d d d d d d 1997 21,148 10,502 335 2,776
471 14,084 35,232

1998 e 15,635 12,353 388 1,807 78 14,626 30,261 1999 f, g 12,523 7,804 468
483 95 8,850 21,373 2000 f 12,327 8,584 454 207 585 9,830 22,157 2001 f
17,233 8,609 683 130 65 9,487 26,720 2002 f 14,427 10,463 679 303 27
11,472 25,899 Source: BLM. a Data for cords were rounded for reporting
purposes.

b *Other* includes miscellaneous wood products such as pulpwood, marginal
logs, houselogs, fence stays, and hobby wood. c Timber volume offered for
sale was not available for the Alaska State Office for fiscal year 1990.

d BLM was unable to provide information on the volumes of other wood
products for fiscal years 1994 through 1996. BLM*s publication Public Land
Statistics or its Timber Sale Information System database did not include
such information. e Data for fiscal year 1998 were originally recorded in
hundreds of cubic feet. We converted cubic feet data to thousands of board
feet using a conversion factor of 1.63 as suggested by BLM. However,

according to BLM, the cubic feet to board feet conversion is not
standardized and may be different for different sizes of logs or types of
products. f In fiscal years 1999 through 2002, sawtimber was originally
recorded in thousands of board feet, but

other wood products were originally recorded in hundreds of cubic feet. We
converted cubic feet data to thousands of board feet using a conversion
factor of 1.63 as suggested by BLM. However, according to BLM, the cubic
feet to board feet conversion is not standardized and may be different for
different sizes of logs or types of products. g Data for fiscal year 1999
do not include small sales, which were included in all other years.

Appendix II: Volume of Timber Offered for Sale from BLM Public Domain
Forests and Woodlands, Fiscal Years 1990 through 2002

Appendix III: Volume of Timber Offered for Sale from Public Domain Lands
by BLM State Office, Fiscal Years 1990 and 2002 Page 17 GAO- 03- 615 BLM
Timber Sales

Table 3 shows the volume, in board feet, of timber offered for sale in
fiscal years 1990 and 2002, and their differences in volume, by BLM state
office. Table 3: Volume of Timber Offered for Sale from Public Domain
Lands by BLM State

Office, Fiscal Years 1990 and 2002 Board feet in millions BLM State Office
Fiscal year 1990 Fiscal year 2002 Difference

Alaska Unavailable 0. 35 * Arizona 0.91 0.21 (0.70) California 5.35 2.22
(3.13) Colorado 3.96 1.19 (2.77) Idaho 12.96 3.98 (8.98) Montana 7.31 3.07
(4.24) Nevada 3.25 2.91 (0.34) New Mexico 2.63 1.49 (1.14) Oregon
(excludes western Oregon) 55.82 7.66 (48.16) Utah 5.45 1.96 (3.49) Wyoming
3.71 0.86 (2.85)

Total 101.35 a 25.90 (75.80) a Source: BLM. Note: BLM*s Eastern States
Office offered no timber for sale in fiscal years 1990 through 2002. a
Excludes Alaska.

Appendix III: Volume of Timber Offered for Sale from Public Domain Lands
by BLM State Office, Fiscal Years 1990 and 2002

Appendix IV: Comments from the Department of the Interior

Page 18 GAO- 03- 615 BLM Timber Sales

Appendix IV: Comments from the Department of the Interior

Note: GAO comments supplementing those in the report text appear at the
end of this appendix.

See comment 2. See comment 1.

Appendix IV: Comments from the Department of the Interior

Page 19 GAO- 03- 615 BLM Timber Sales

See comment 6. See comment 5. See comment 4.

See comment 3.

Appendix IV: Comments from the Department of the Interior

Page 20 GAO- 03- 615 BLM Timber Sales

Appendix IV: Comments from the Department of the Interior

Page 21 GAO- 03- 615 BLM Timber Sales

The following are GAO comments on the Department of the Interior*s letter
dated June 5, 2003. 1. We changed the title to be more specific to public
domain lands.

2. In accordance with our job objectives, our report addresses the trend
in the volume of timber offered for sale from both public domain forests
and woodlands. Furthermore, the report notes that woodlands typically have
significantly lower productivity than forests. 3. We deleted reference to
the federal regulations generally not requiring

mitigation of adverse impacts resulting from operations on public domain
lands. We added information to clarify that the federal regulations
referred to in the draft report were those that implement

the National Environmental Policy Act. The department agreed with this
clarification.

4. We agree that the change of emphasis has affected the volume of timber
offered for sale, which is already clearly articulated in the report.

5. We agree that both the budget and the volume of timber offered for sale
have declined significantly. We have included a reference to the budgetary
decline in a section heading.

6. We agree that the volume of timber offered for sale from BLM*s public
domain lands is small compared to offerings from Forest Service or state
or private land. As the report indicates, the Forest Service offered 4
billion board feet of timber for sale from national forests in 1997, while
BLM offered 35 million board feet* 21 million board feet of sawtimber and
14 million board feet of other wood products* from public domain lands.
Also, the report points out that about 7 percent of the nation*s
domestically produced timber and wood products come from federally managed
forests, which include BLM and Forest Service forests. Therefore, the
remaining 93 percent is from nonfederal lands, which include state and
private lands. GAO*s Comments

Appendix V: GAO Contacts and Staff Acknowledgments Page 22 GAO- 03- 615
BLM Timber Sales

Barry T. Hill (202) 512- 3841 (hillbt@ gao. gov) In addition to the above,
Andrew S. Bauck, Linda L. Harmon, Richard P. Johnson, Chester M. Joy, Roy
K. Judy, Rosellen McCarthy, Jonathan S. McMurray, Paul E. Staley, and Amy
E. Webbink made key contributions to this report. Appendix V: GAO Contacts
and Staff

Acknowledgments GAO Contacts Staff Acknowledgments

(360209)

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