February 27, 2009

Alice Carlton

Forest Supervisor, PlumasNational Forest

PO Box 11500

Quincy, CA95971

Kathleen Morris

Forest Supervisor, LassenNational Forest

2550 Riverside Drive

Susanville, CA 96130

Dear Ms Carlton and Morris:

After our initial discussions on the matter of 25% receipts that should have come to PUSD from the Storrie settlement, I would like to relate our further concern over this matter. After reviewing the court documents that were prepared for the Forest Service by Dave Stone (Case 2:06-cv-01740-FCD-KJM Document 58-6 Filed 10/12/2007 Pages 1-11) and Ron O’Hanlon (Case 2:06-cv-01740-FCD-KJM Document 72-2 Filed 10/12/2007 Pages 1-93), we would like to pursue further the request we made for consideration for a share of the Storrie fire settlement for the 25% receipts.

We find in the above documents some points that you and your agency should have taken into account for this consideration. First the Lassen NF lost 154,371 mbf and the Plumas 244,774 mbf of commercial conifers with diameters of 12 inches and greater (total volume lost is 399,145 mbf), and the estimated value of this loss was calculated at $121,916,774. Given these facts and the additional fact that $50,000,000 of the settlement was actually to cover this loss, PUSD is requesting their appropriate share of this amount since it was provided to your Forest as timber revenue.

There are a couple of key points that we would like to raise in relation to this issue. They both are relevant to fact that if the fire had not happened and the Forest Service had harvested this commercial conifer volume over time, you would have been required to deposit 25% of the revenues into the County road and schools fund. The following two Responses to Admission and Request come from Exhibit B, pages 4-14 of Case 2:06-cv-01740-FCD-KJM Document 72-2 Filed 10/12/2007 Pages 1-93.

Request for Admission No. 13:

Admit that Exhibit E, attached hereto, contains a true and correct copy of Appendix A to the SNFPA ROD adopted by the USDA Forest Service, Region 5, in January 2001 and archived by the USDA Forest Service at http:

Given the fact that the Lassen and Plumas NF now are under the guidance of the 2004 SNFPA ROD and that this document allows more flexible harvest practices and thus more potential harvest volumes, again, this information illustrates the fact that if the Storrie fire had not happened, projects over time would have generated 25% funds at a higher rate than that realized at the time of the fire.

Request for Admission No. 23:

Admit that some of the lost sawtimber for which a claim is made could not have been sold by the USDA Forest Service as of August 16, 2000.

Response to Request for Admission No. 23:

Admitted with the clarification that although the sawtimber within “offbase” or “deferred” areas could not be sold, it continued to have market value. Once the trees were killed by the fire, that value was lost.

The important information to be considered in relation to the above No. 23 statements is the fact that the QLG is currently discussing the fact that many if not most of the “deferred” areas should be harvested and possibly some specific “offbase” locations may also warrant such consideration. This is especially true within the Mill and Deer Creek drainages on the Lassen NF where reducing threat from catastrophic wildfire may be beneficial in the protection of water quality for the salmon populations. Again, given this information and possibility, projects and harvest value and revenue would have been realized in these areas and generated 25% funds.

It is our understanding as mentioned above that $50,000,000 of the $107 million settlement as for lost timber revenue. As stated in my January ???, 2009 letter, consideration to address some of the social, economic and educational impacts from the Storrie fire is not unreasonable and should now be calculated and provided to Plumas County Roads and Schools.

We would enjoy the opportunity to discuss this matter with you at our March ???, 2009 regularly scheduled Board Meeting.

Thank you for your consideration in this extremely important matter in the education needs of all the students of PlumasCounty

Plumas Unified and Plumas County Schools Board Member

Cc.

Plumas CountyBoard of Supervisors

Fran Peace, District Director , Congressman Wally Herger , 55 Independence Circle, Ste. 104 , Chico, CA95973

??????, Congressman McClintock Field Representative

Senator Diane Feinstein, One Post Street, Suite 2450

San Francisco, CA94104