The Dixie National Forest in southern Utah spent $657,441 more managing its timber sale program in fiscal year 1991 than it generated in timber sales, according to a just-released federal report.
"With all the environmental challenges and appeals and threatened litigation, it is driving my costs up," said Dixie forest supervisor Hugh Thompson. "That's why we are a below-cost forest."Thompson said the cost of going through environmental processes has tripled in the last seven or eight years.
But don't blame environmental watchdogs, says Ken Rait, issues coordinator for the Southern Utah Wilderness Alliance. "Statements like (Thompson's) have no place because environmental analysis is the law, period. And they are required to meet the law, period."
"Bottom line: It is traditionally a money-losing forest, and analysis shows the more they cut the more they lose. They didn't lose as much (as some past years) because they didn't harvest as much."
Thompson, however, said it has become a Catch-22 situation. They are criticized by environmental groups for having timber costs that exceed revenues, but the Forest Service is then threatened by the same organizations with litigation and appeals that drive up those very costs.
But there probably won't be a profit in fiscal year 1992. The continued closure of the Escalante Sawmill in Garfield County throughout 1992 greatly reduced the amount of timber harvested on the Dixie National Forest, meaning 1992 revenues will likely be even lower than 1991.
"When there is less volume through the sawmill, it will make our situation worse as far as being a below-cost forest," Thompson said. "The best we could hope for is to be what we were in 1991."
According to the Dixie National Forest Annual Report, "despite a strong lumber market during this period (1991), revenues decreased by nearly $270,000 because of a 24 percent reduction in harvested timber, from 28.5 million board feet in 1990 to 21.8 million board feet in 1991."
Total management expenses on the forest also increased, especially those costs associated with timber sale preparation and analysis. The Dixie National Forest also paid local counties $363,875 through a federal revenue-sharing program.
The report states that the Dixie National Forest generated $8.4 million in local income taxes (not including U.S. Forest Service personnel) and $1.2 million in federal income taxes. The forest sustained 181 jobs in the local private sector.
Thompson emphasized there are values other than a positive balance on the timber sale balance sheet. He noted that proper timber management improves wildlife habitat, watershed and recreation. The Dixie National Forest placed a positive net value of $324,900 on those items in 1991.
The balance sheet, however, shows $1.4 million in revenues and $1.7 million in expenses before any payments to the counties.
The Dixie National Forest currently has only 6 million board feet of timber under contract. Another 9 million board feet sale is currently under appeal.