Summary: Congress appropriated up to $250 million to preserve the Headwaters Forest in Humboldt County, California, by acquiring the 4,500-acre Headwaters Forest and about 3,000 acres of adjoining timberland. The Headwaters Forest includes the largest grove of virgin, old-growth redwood trees in private ownership. The 7,500 acres are owned by the Pacific Lumber Company and the Elk River Timber Company. In September 1996, the federal government, the state of California, Pacific Lumber's parent company, and Pacific Lumber signed an agreement for the federal and California governments to acquire the properties in exchange for $380 million in cash and assets from the United States and California. As part of the agreement, California will contribute $130 million to buy the properties. GAO reviewed the appraisals of the Headwaters and Elk River properties and did not identify areas in which the appraisals deviated from federal appraisal standards. GAO also did not find that the use of assumptions in the appraisal was unreasonable given the imprecision involved in appraising timber properties and the unique circumstances of this property.
