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Constitutional Law Keyed to Choper
South-Central Timber Development, Inc. v. Wunnicke
Citation:
467 U.S. 82 (1984)Facts
In 1980, the Alaska Department of Natural Resources announced the sale of approximately 49 million board-feet of timber in the Icy Cape area. The sale contract included a requirement that the timber undergo “primary manufacture” within Alaska before export. This requirement, imposed by contract pursuant to Alaska regulations, aimed to protect local industries and derive revenue from timber resources. The primary method of compliance was converting logs into “cants” (logs slabbed on at least one side). South-Central Timber Development, an Alaska corporation that purchased timber for export as unprocessed logs primarily to Japan, challenged this requirement. The company did not operate a mill in Alaska and typically sold unprocessed logs. Evidence suggested that processing the timber into cants within Alaska was economically inefficient, as the slabs removed in processing were valuable but often wasted, making the cants worth less than unprocessed logs. Additionally, there was virtually no interstate market for Alaska timber due to high shipping costs, with over 90% of Alaska timber exported to Japan.
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