ANNOTATION: The goal of this project is to estimate the cost of harvesting and transporting forest residues to processing centers in the northern Rocky Mountains. Regionwide estimates are to be made based on the detailed analyses of the volumes and types of forest residues available to selected individual manufacturing centers. The results of the analysis of the first manufacturing center are presented in this paper. The initial study area selected was Lincoln County, Montana, with Libby, Montana as the processing center. It appears from the analysis that substantial volumes of logging residue material would be available at a cost which would allow for its use in fuel and reconstituted wood fiber products as well as solid wood products.