Ketchikan Pulp Co. reaches agreement on timber supply allowing sawmills to operate for three more years.

KETCHIKAN, Alaska--(BUSINESS WIRE)--Feb. 21, 1997--Ketchikan Pulp Co. (KPC), a wholly owned subsidiary of Louisiana-Pacific Corp. (NYSE: LPX), announced today that it has reached an agreement with the federal government that will provide timber to keep KPC's two southeast Alaska sawmills operating for three more years.

Today's agreement also provides for settlement of all outstanding claims by KPC against the government for breaches of its long-term timber supply contract and Fifth Amendment takings. The agreement calls for the government to pay KPC $135 million in…