Question-and-Answer Session
Operator
(Operator Instructions) Your first question will be from the line of Mark Bishop with RBC Capital.
Mark Bishop - RBC Capital
Thank you, Good Morning, Jimmy, just a couple of quick questions, first on the Celgar mill, may be, you can just give us a little bit more color into the nature of your current fiber supply contracts with The Pope and Talbot Mills and what, I guess, if those mills shut down, but if any obligations are to the new owner to supply fiber?
Jimmy Lee
Well, as you know, presently there is a sale with these conditional, of course, certain conditions being finalized, of the two saw mills through Interfor. We, of course, under the bankruptcy Interfor as the conditional that the acquisition has essentially not, or has proposed not to have any contracts, essentially assumed under the purchase agreement.
We are in discussions with Interfor in regards to, I guess the situation subsequent to their ownership and we are hoping that of course prior to all of these conditions being realized and them being the formal owner, that arrangement would be met in regards to the fiber contract. At this time, our expectations are that whatever the outcome is, the reality is these saw milling activity whether it's owned by Pope and Talbot or Interfor, at those mills will be quite insignificant because of the present condition of the lumber industry as a whole.
So, I think the focus is really to increase the amount of whole log chipping, that would be available to us from the sawmills, and of course that is something which is very outside of the existing type of arrangement and therefore there will be new type of short term arrangements which would have to be made. So to a large degree, although we don’t really expect any real issues, but clearly because of the state of the lumber industry, the reality is the bulk of the fiber moving forward likely for Celgar will come from whole log chipping.
Mark Bishop - RBC Capital
Okay. That’s fair enough. What was the whole log chipping percent of your fiber supply for Celgar in 2007?
Jimmy Lee
David do you have that number?
David Gandossi
No, I don’t. I don’t have it exactly, but I would say, going back in time, Mark. We were probably 90% sawmill residuals and over the course of the last couple of years that has continued to shift and really as Jimmy mentioned, what's happening is more and more our sawmills are making more chips than they are lumber and so that percentage has grown quite a bit and we are also ramping up our wood room significantly to fill in where the sawmills can't keep up. So, don’t know the percentage but it's significant.
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