Peachland District Mayor and Council Presentation June 13 th , 2017
Okan Okanagan gan For orest est Licensee Licensees • Ntityix Resources LP, (WBFN) – Dave Gill • BC Timber Sales – Colin Johnston • Gorman Brothers – Kerry Rouck • Tolko Industries Ltd – Michael Bragg
Peachland CWS – Tenures and Ownership Peachland Community Watershed – 12,553 ha; Forested Land base 11,266 ha
Peachland CWS Major Licensees
Ntityix Resources LP • Who we are: • A Westbank First Nation (WFN) owned Company that manages WFN forest tenures. • Employs a staff of four and manage the contracts of five WFN member-owned Companies who employ the equivalent of 32 FTE’s. • Annually harvest approximately 90,000m 3 of timber, sold to Tolko and Gorman Brothers. • Community owned and managed for community interests.
Road Maintenance • All licensee-held permitted roads are risk-rated. • Risk rating determines inspection frequency (i.e. a High risk-rated road may require inspections every year or after an “event” whereas a low risk - rated road may require an inspection once every 2 or 3 years). • Road Inspections usually completed in the spring to ensure road components functioning properly (i.e. culverts/ditches working, road surface shedding water adequately, signage, cut and fill slope stability, grass-seeding required, etc). • Problem areas identified and entered into a Maintenance Schedule .
Watershed Assessments • Before harvesting is conducted in a Community Watershed a Hydrology Assessment must be completed by a Qualified Registered Professional (usually a Professional Engineer or Geoscientist). • The assessment provides recommendations regarding forestry activities that could potentially result in a material adverse impact on the quantity and/or the quality of water, or the timing of the flow of water. • The licensee must then ensure cutblocks and roads are consistent with the recommendations of the hydrologic assessment.
Watershed Assessments (cont’d) • Peachland Watershed Assessment completed in 2009. Opinion Paper, 2016. • Special consideration given to creek crossings (Sediment Evaluation Protocol completed at time of construction) • Equivalent Clearcut Area (ECA) Assessment updated annually. Peachland Watershed: 18% ECA, 22% in Snow Sensitive Zone, Peak Flow Hazard identified as Moderate (Okanagan Sustainable Forest Management Plan, Monitoring Report, June 2017)
WFN Operating Area (C (CFLB) ) = 1,583ha
WFN Remaining unlogg gged = 1,540 ha
Semi-autonomous program within the Ministry of Forests, Lands and Natural Resource Operations Created in 2003 Manage and Auction 20% of the provincial Crown Allowable Annual Cut Goal to support the provincial timber market pricing system (MPS) through supplying benchmark cost and pricing data
BCTS is made up of 12 business areas selling 13.5 million cubic metres of timber per year 1. Okanagan Columbia (TOC) is one Business Area 2. Each year, TOC auctions 900,000m3 3. TOC sells 35-50 timber sales per year 4. Timber is available to all qualified bidders 5. TOC develops timber, builds road, and reforests harvested blocks 6. BCTS is a significant economic driver to communities
Our team of Professionals focus on: ◦ Building outstanding plans that address the values and meet the objectives in the forest for communities, government, industry, public and First Nations ◦ Multiple use is a cornerstone of BCTS forest management ◦ BCTS has achieved third-party certification for safety and sustainable forest management on all of the timber volume it manages
The ‘Working Forest’ is the key ◦ Team of forest professionals must consider and balance all of the values of the working forest in our plans including: water, timber harvest, recreation, wildlife, forest health, visuals, First Nations cultural and archaeological, soils and terrain, forest fuels, ecological and many others ◦ BCTS does this by engaging experts and referring plans to key stakeholders and incorporating their feedback
Logging prior to 2007 MPB = 49ha
Logging post 2007 MPB = 37ha
Total Logging = 86ha
BCTS 5 Year Planned = 240ha
Remaining Unlogged CFLB 76%
If you have questions or want more information about our plans please call Tony Zanotto Planning Officer BCTS at 250 558 1793
The Gorman Group of f Companies Overview 27
28
Customer focused value ‘chasers’ The Gor he Gorman Edge man Edge • Medium Volume • High Cost • Price Setters • Strong Brand Recognition • Margin Driven by Securing Extra Commodity Producers Value from Market • High Volume • Driven By Low Costs • Price Takers Customer Driven Strategy to extract • Margin driven by: highest value • Low Unit Costs • Market Pricing Operational Excellence Strategy to drive down costs Being different is our strength! 29
Gorman Group Statistics Division Products Consumption Contribution # of Jobs Gorman Bros. 1” SPF Boards 12,500 Loads $130 million 440 Lumber Ltd. 605,000m3 150 MMBF Canoe Forest Douglas-fir Veneer 6,250 Loads $50 million 320 Products Ltd. and Plywood 300,000m3 175 MM msf Downie Cedar, Genban , 1” 10,000 Loads $140 million 325 Timber Boards 500,000m3 Ltd. 140 MMBF Lumby Cedar Utility Poles 25,000 pieces $10 million 15 Pole Division Oroville Reman & 1” SPF Boards 120 MMBF $30 million 110 Reload Cedar Products Finishing Reload Services Totals $360 million 1,210 30
Global Sales Trends Other 2% Canada 19% Canada 34% Other 30% USA 79% 2017/18 1996/97 USA 36% Gorman Group Sells Products into 29 Countries 31
Canoe 32
Peachland CWS Licensees – GBL (600ha) 32 ha
Munro FSR 2017 Slides
Munro FSR April 28 Slide Location
Headscarp of 2017 Slide
Peachland Creek - 2016
2017 Geo-technical Report - Conclusions
2017 Geo-technical Report - Recommendations
M i c h a e l B r a g g , R P F Wo o d l a n d s M a n a g e r, F o r e s t r y – S o u t h e r n I n t e r i o r O p e r a t i o n s June 13 th , 2017
Tolko Woodlands • Family owned company that was established in 1956 • Vernon based • Operate in the 3 western provinces • Core holdings in the Okanagan are located in Kelowna, Lavington, Armstrong and Lumby • Tolko’s Economic Impact from the SI Operations in 2016 $300M (direct employment, economic spin off, taxes, stumpage, community donations etc.) • Woodlands manages the forest with a integrated team of professionals that manage everything from planning through to the establishment of successful planation's supported by 3 rd party experts (consultants and academics) to assist in implementing the effective and scientifically bound plans
Peachland CWS Crown Forested Landbase (Tolko) = 7,753ha
Peachland CWS Logging prior to 2007 MPB outbreak (Tolko) = 748ha
Peachland CWS MPB Logging post 2007 (Tolko) = 1,618ha
Peachland CWS Tolko Planned (next 5 years) = 734ha
Peachland Remaining mature CFLB in Tolko Op Area after planned Blocks (4,653ha)
Roll Up of Watershed WFN Gorman BCTS Tolko Total Operating Area (CFLB) 1583 600 1,330 7,753 11,266 Pre-2007 Harvest - 3 * 49 748 800 Post 2007 harvest 238 106* 37 1,618 1,999 Planned Blocks/Harvest next 5 years 28 0 240 734 1,002 Remaining unlogged 1,540 491 1,004 4,653 68% * Gorman’s took over Tolko Op Area in 2013 and harvesting reported was Tolko’s
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