The sustainable timber yield principle has been complied with. The project is not in compliance with the Act in that it is not listed in the National Forest Plan for development. A significant proportion (10%) of the forest is classified by the Office of Environment and Conservation as fragile . The harvestable volume is hugely overstated in the FMA document, creating landowner expectations which will cannot be met. The potential sustainable annual cut is too small to support a financially efficient logging investment, or a conventional stand alone log export project. The right of the PNGFA to implement conservation set-asides has not been bought forward into the draft Project Agreement.