The need for additional sources of energy and raw material in the forest products industry enhances the opportunity to improve timber utilization by reducing logging residue. This is particularly true on the Pacific Coast where some 14 million tons of logging residue accumulate each year and where some 3 million tons of unused bark create a disposal problem at mills. The need to replace natural gas and oil to generate process steam or for drying with hot gases has given impetus to improved wood and bark combustion to provide needed energy without violating air quality standards. Cylindrical furnaces burning finely ground (minus 1/8 inch) bark or wood are being installed for lumber and veneer drying. New emission control systems and predriers are being adapted to fire large furnaces with wood or bark. The projected annual growth rate of 5 percent in U.S. and world pulp production has focused attention on forest residues as a source of fiber. Recent increases in chip prices help offset the high cost of logging residue, particularly if former disposal costs are credited to residue removal. Changes in timber sale procedures to facilitate more complete timber utilization are considered essential. Such proposed changes as negotiated lump sum sales, service contracts, and compound contracts are described briefly to indicate types of sale modifications that have been proposed. In summary, more complete timber utilization on the Pacific Coast may: (1) Add substantially to the available raw material supply8.4 million tons additional raw, (2) Add another energy source to that currently available as mill residue4.0 million bone-dry tons for fuel annually. (3) Protect thin soils by restricting or eliminating the amount of slash burning required. (4) Decrease air pollution by reducing the required amount of slash burning. (5) Reduce the debris that could interfere with streamflow and affect water quality. (6) Improve scenic values by reducing visible debris. (7) Improve recreational opportunities by providing easier access and a more acceptable environment. (8) Reduce public criticism of land management policies and much of the basis for public pressure to restrict clearcutting.