Results are reported of a preliminary investigation of feasibility of using wood residue to meet energy and raw material needs in the Pacific Coast States. Magnitude of needs was examined and volume of logging-residue and unused mill residue was estimated. Costs of obtaining and preprocessing logging residue for energy and pulp and particle board raw material were estimated and compared with selling values of mill residue fuel, pulp chips, and particle board. Marginally feasible energy use seemed best suited for inplant steam and power production by the wood industry, Although raw material selling values make wood residue use for products more attractive than for electric power generation, even these returns are seldom sufficient to meet the high costs of delivering logging residue for such use alone. Production of higher valued products or public absorption of extra costs of utilization can make these residue management alternatives more feasible.