Truck LoggerBC - Volume 47, Number 3 by Truck Loggers Association

LIDAR CAN PROVIDE INSIGHT INTO PTSA’S PATCHY INVENTORY ]

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[ INSIDE

Fall 2014

Three

Different Islands,

Three Different Tales:

Trying To Log on BC’s South Coast

PM # 40010419

Natural Resource Sector Roads: Learning to Share the Costs Logging Rate Negotiation: When David Meets Goliath Fall 2014 Truck LoggerBC 1

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CONTENTS

FALL 2014 Volume 37 Number 3 www.tla.ca

Columns & Departments 7 8

TLA President’s Message

Fighting Strong on All Fronts: Rates, Labour and Safety Don Banasky

TLA Executive Director’s Message

Forestry is the Heart and Soul of BC’s Coastal Communities: Let’s Keep It That Way Jim Girvan

10 NWLA Message

Looking Forward By Looking Back: Logging Associations at Work Bill Sauer

11 ILA Message

Boots on the Ground: More Forestry Training Coming to the Interior Wayne Lintott

12 Legal Report

The Evolution of WorkSafeBC: Understanding Due Diligence, Past, Present and Future Gavin Marshall

14 Safety Report

Coast Harvest Advisory Group: An Update on Progress Ken Higginbotham

18 Market Report

Log Exports—Is There Another Option? TLA Editorial

21 Business Matters

How Much Could You Save...If You Didn’t Go To Arbitration? James Byrne

Cover 40 Three Different Islands, Three Different Tales: Trying to Log on BC’s South Coast Sandra Bishop

Features 22 Meet Kelsey Pelegrin, Poster Child for Tomorrow’s Forest Industry Workforce Hans Peter Meyer

24 Logging Rate Negotiation: When David Meets Goliath TLA Editorial

30 Natural Resource Sector Roads: Learning to Share the Costs Ian McNeill

33 LiDAR Can Provide Insight into PTSA’s Patchy Inventory Jean Sorensen

37 Collaboration or Chaos? Robin Brunet

45 The TLA Seeks New Executive Director 46 TLA Golf Tournament & Barn Dance: Great Success!

Cover photo: Brenda Martin

Fall 2014 Truck LoggerBC 3

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The Truck Loggers Association 2014 Executive & Directors

Interior Logging Association 2014 – 2015 Board of Directors

Chairman Reid Hedlund Don Banasky First Vice Chairman Randy Spence Jacqui Beban Bill Markvoort Second Vice Chairman Len Gudeit Past Chairman Ed Smith Jim Girvan Directors Terry Brown Ted Beutler Lee Callow Dave McNaught Mike Closs Lukas Olsen Dennis Cook Clint Parcher John Drayton Mike Richardson Randy Durante Barry Simpson Matt Edmondson Doug Sladey Frank Etchart Matt Wealick Scott Horovatin Associate Directors George Lambert Jeff Kineshanko Tim Lloyd Hedley Larson Brian Mulvihill Bill McDonald Ed Petersen Burns Thiessen Editorial Board Don Banasky Ron Volansky Jacqui Beban General Manager Wayne Lintott James Byrne Administration Nancy Hesketh Graham Lasure Wayne Lintott Interior Logging Association Bill Markvoort 3204 - 39th Avenue Brenda Martin Vernon, BC V1T 3C8 Brian Mulvihill Tel: 250.503.2199 Fax: 250.503.2250 Bill Sauer

President Vice President Past President Executive Director Industrial Directors

E-mail: info@interiorlogging.org Website: www.interiorlogging.org

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FALL 2014 / VOLUME 37 / NUMBER 3

Heading down an unhealthy path?

Editor Brenda Martin Contributing Writers Don Banasky

Sandra Bishop Robin Brunet James Byrne Jim Girvan Ken Higginbotham

It’s not too late to change direction. The road to better health

We care about the health of your employees. That’s why we’ve introduced a new health resource site called My Good Health. Full of valuable health information, it will help your employees get on the road to better health.

For editorial information, please contact the Truck Loggers Association: Tel: 604.684.4291 Email: trucklogger@tla.ca For advertising, please contact Advertising In Print: Tel: 604.681.1811 Email: info@advertisinginprint.com Truck LoggerBC magazine is published four times a year by the Truck Loggers Association, with content and support from the Interior Logging Association and the North West Loggers Association. Its editorial content seeks to reflect issues facing the industry and to provide readers with current information on B.C.’s forest industry. All rights reserved.

Advertising Sales & Design Layout office:

Advertising In Print 200 - 896 Cambie Street, Vancouver, BC V6B 2P6 Tel: 604.681.1811. Fax: 604.681.0456 Publication Mailing Agreement No. 40010419. For subscriptions, contact office@tla.ca or 604.684.4291. Send change of address notices and covers of undeliverable copies to:

0385.007 03/11

4 Truck LoggerBC Fall 2014

CUPE 1816

Wayne Lintott Gavin Marshall Ian McNeill Hans Peter Meyer Bill Sauer Jean Sorensen

The Truck Loggers Association Suite 725-815 West Hastings Street Vancouver, BC V6C 1B4 E-mail: contact@tla.ca

Tel: 604.684.4291 Fax: 604.684.7134 Website: www.tla.ca

from the Editorial Board DESK...

elcome to the fall issue of Truck LoggerBC. After a hot, dry summer, hopefully everyone is safely back to work and geared up for the last quarter of the year! Our number one priority is always safety. Gavin Marshall gives us an inside look at what logging contractors must do to ensure their due diligence around worker safety post the sawmill explosions. In our Safety Report, Ken Higginbotham gives an update on the Coast Harvest Advisory Group’s work including emergency evacuation of injured workers, faller training program, faller supervisor training and logging truck driver training. Looking to logging rate negotiations, the article “Logging Rate Negotiation: When David Meets Goliath” addresses several questions including: How do you negotiate a rate that will sustain your business, allow you to pay your employees and suppliers and return a profit? What domino effect ripples through the industry, including suppliers and communities, when a contractor goes bankrupt? James Byrne, in his regular Business Matters report, looks at the cost and process of arbitration and whether it’s still a viable option in an industry that has changed significantly over the last 30 years. Photo courtesy of The Boys & Girls Club

Our provincial feature discusses road access policies and how the Natural Resource Road Act would solve many problems in relation to forest roads province-wide. In our coastal feature we examine the ongoing struggle our industry faces when harvesting in the urban-rural interface on the south coast the importance of protecting the working forest and how much forestry contributes to the economy and communities. Finally, our Interior feature reviews the Supreme Court’s Tsilhqot’in First Nation decision and what key industry leaders are speculating the impact could be on forestry in BC. New ideas are always welcome in this ever-evolving industry. In our Market Report, we review a new idea around log exports that was published in a Fraser Institute report this summer. We also have an article about LiDAR technology. This new technology could help provide an accurate inventory of BC’s forests and also assist companies in determining species, ground layout and road development. Mark your calendars! The Truck Loggers Association Annual Convention and Trade Show is being held in Victoria from January 21-23, 2015, with a great line up of speakers, panels, dancing and french fries. You don’t want to miss it! Registration opens October 6! As always, we hope you enjoy our magazine and find it informative. If you have any feedback or comments, please contact Brenda Martin, Director of Communications, at 604.684.4291 ext.2 or email brenda@tla.ca

Jacqui Beban, Nootka Sound Timber Co. Ltd Editorial Board Chair

Forestry Fishes for Kids This year TLA Vice President, Jacqui Beban, attended Forestry Fishes for Kids, the second annual charity fishing tournament supporting the Boys & Girls Club of South Coast BC. The event raised over $42,000 for Camp Potlatch. Funds from this event will be used at Boys and Girls Clubs of South Coast BC’s Camp Potlatch, to educate 1,000 urban kids, their families and the young staff of BGC annually about the role of forests and the forest industry, giving them a sense of connection to the natural world outside of the city and an understanding of the things forests provide them.

Jacqui Beban with the biggest Chinook of the derby—her 32 lb Chinook salmon! Jacqui won the $10,000 grand prize and then donated the winnings back to the Boys & Girls Club.

Fall 2014 Truck LoggerBC 5

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6 Truck LoggerBC Fall 2014

Don Banasky

TLA President’s MESSAGE

Fighting Strong on All Fronts: Rates, Labour and Safety

fter a blistering summer, we are now entering the logging industry’s busy season on BC’s coast. We must move into this busy time cautiously and ensure we are focused on all things business. Here are three critical aspects of the industry we must focus on. Fair Contractor Rates Today it is more important than ever to run a good business, protect ourselves and make enough money to reinvest and grow our companies. Each forestry business is different in the product or service it sells. Quality logging for value, production logging for volume, forest product manufacturers, equipment suppliers, product support—each company fills its own niche. It’s the individual business owners that must know their own costs, agree on suitable payment terms and conditions and make sure that changes to the work or order are reflected and acknowledged in the rate. I know it’s difficult when there are only a handful of customers in town and they may not listen to reason. That said, providing a platform in which loggers, suppliers and licensees can be successful in all areas of this industry should be a no-brainer. Developing a respectful relationship with the people we do business with is another step toward the goal of safety, sustainability and keeping BC’s forest industry’s competitive edge. Whatever your relationship is to the industry, it is critical that you charge appropriately for your service or product and recognize when the deal is not for you. The power of NO may save you, your suppliers and the communities you work in, a lot of missed opportunity and potential heartache. Strong Employee Support Do your employees know where to get support if their personal lives are affecting their work? Let’s get out of the Stone Age and invest in our employees, contractors and the industry as a whole.

We need to provide employees tools to assist in managing personal issues, such as finances and personal relationships. We need to show them what we already know—they are more than just a number and forestry is a local, community-minded industry that cares about its employees. There are companies already in place to assist us in this area. Two I know about are Switchback Systems (www.switchbacksafe.com) and Safemap North America (www.safemap. com). Switchback is a Canadian safety and leadership training company focused on the mental engagement of the work force. Safemap focuses on strategic safety management with emphasis on safety strategies, change management and competency-based safety. Another side to employee support includes training obligations, safety systems and the corresponding documentation. All this can be assessed by one of the BC Forest Safety Council’s safety advisors. This is an opportunity to have an experienced individual provide confidential feedback and enhance your safety performance, while ensuring you are meeting legal requirements and documentation needs. This service is provided over the phone or, if needed, during a site visit. For more information, contact the BC Forest Safety Council at 1.877.741.1060 and ask to speak to a safety advisor. Tough Industry Safety Everyone is all for safety…until the conversation moves to rates. Then a how-low-can-you-go attitude prevails on the coast. Some licensees are flexible after a good rates/safety conversation and presentation, while others are only focused on the bottom line. When rates are too tight or conditions change without amendments to the contract, safety may be compromised. Another serious aspect of safety that isn’t well understood by contractors or well applied by licensees is the roles and responsibilities of being a prime con-

tractor and how the role is meant to work on-the-ground. WorkSafeBC often puts on short informative seminars that will define your roles and responsibilities in a clear and tangible way. The TLA is hosting one of these session during our convention on Wednesday, January 21. This isn’t a sleeper training course and should be attended by all coastal business operations to clearly understand your roles and responsibilities. Taking a look back over this article, I realize that strong employee support and tough industry safety—two aspects of a healthy industry listed here—can’t be fully realized until we secure fair rates for services provided. We have two articles in this issue that address contactor rates. You’ll find them on page 21 and 24. It’s proving to be a long, hard struggle. But it’s an area we must improve on behalf of our whole industry and the coastal communities we operate in.

Change at the TLA

As you are likely aware by now, Dwight Yochim is no longer with the TLA. As Executive Director, Dwight was hard-working, forward-thinking and innovative. The TLA has seen excellent progress made in areas such as the labour market initiative, training and education, First Nations relations and many other key areas. All of us within the association thank Dwight for his work and wish him success in his future endeavours. The TLA is now seeking a new permanent Executive Director. For more details, please see the advertisement on page 45.

Don Banasky, President, TLA Tel: 250-714-6670 Email: dbanasky@copcan.ca

Fall 2014 Truck LoggerBC 7

Jim Girvan

TLA Executive Director’s MESSAGE

FORESTRY IS THE HEART AND SOUL OF BC’S COASTAL COMMUNITIES: LET’S KEEP IT THAT WAY

or more than 35 years now, I have watched the forest industry evolve through the highs and lows of its ever changing market cycles. The provincial economy was built by the forest industry and it remains a significant contributor to many local community economies. With 50 per cent of jobs in forestry being in the forest, not having a mill doesn’t mean your community isn’t supported by the forest industry. In fact, forestry could very well be the number one unseen workforce in your community. Many forest workers are often up before the crack of dawn and not home until well into the evening. While they don’t have recognizable logos on their trucks, they are an important part of your community workforce. Campbell River is a great example of this situation. It doesn’t have a mill anymore; but it is home to over eighty TLA member companies who employ hundreds of forest sector employees. Needless to say, forestry plays an important role in Campbell River’s local economy. TLA members also see the benefits of giving back to the communities in which they live—and give they do— sponsoring local sports teams and community events. Over the last ten years the TLA, through generous donations from its members, donated an average of $60,000 a year to support scholarships at every coastal forestry school, two high school forestry programs, trades programs, teacher educational programs and public events sponsorships, just to name a few. Despite these contributions to local jobs and community donations, there is a perception that forestry isn’t important or that other industries add more value to local economies. While the industry is smaller than it was thirty years ago, it is still critical to coastal communities. We’ve been logging for over two centuries now and the forests are still growing, providing jobs and government revenues. Forestry truly is

8 Truck LoggerBC Fall 2014

BC’s greenest and most obviously sustainable industry. BC’s contract loggers are all local business people as well. They hire locally. They invest and spend locally. And they donate locally. They contract their services to companies who have the rights to harvest the trees. It is these companies that set the logging rates. Rates dropped to an all-time low during the recession and have barely moved since. As a result, many of BC’s contract loggers are fighting to remain solvent as highlighted in the articles on page 21 and page 24. If we continue to keep the rates at rock-bottom levels, BC’s coastal communities will remain at risk as contractors struggle to survive and seek protection from local community creditors in order to stay solvent.

without impacting local tourism businesses and the contribution they make to the economy—a win-win. Sustainability does not only refer to the environment and the forest we rely on as the anti-logging crowd might have us believe. It refers to social and economic sustainability as well. In order to have sustainable communities you need a sustainable working forest land base, sustainable rates that allow contractors to hire and train employees to work safely and a sustainable allowable cut that will allow revenues to flow to community and government at all levels. As I return to the TLA in an interim capacity, I once again look forward to advocating for the issues important to our members while at the same time supporting the continued devel-

We only have to look at how the working forest has shrunk since 1990 to understand the need to protect what we have. At the same time, there is and likely always will be pressure not to log certain areas. Local pressure continues to stop two proposed woodlots on Gambier Island. Opponents use terms like pristine forest and massive clearcuts to emphasize their concerns. Why worry about such a small area some may question? Why can’t you just log somewhere else? We only have to look at how the working forest has shrunk since 1990 with a drop in the allowable annual cut by 23 per cent to understand the need to protect what we have. However, as Sandra Bishop writes on page 40, areas even as small as the one recently harvested on Maurelle Island contribute significantly to our economy and to the communities where loggers live. She points out the Maurelle Island block alone contributed $8.75 million to the local and provincial economies. As a result of both industries working together, it was economically harvested

opment of a sustainable and vibrant coastal forest industry. The foundation laid by Dwight Yochim, a past TLA Executive Director, over the past two years with respect to recruitment, training, forest worker safety and protection of the working forest land base will allow the TLA board, its committees and staff to continue the work needed to meet those goals. I look forward to once again working with the TLA. Jim Girvan, RPF, MBA, Interim Executive Director, TLA Tel: 604.684.4291 ext. 1 Email: jim@tla.ca

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Bill Sauer

North West Loggers Association’s MESSAGE

Looking Forward By Looking Back: Logging Associations at Work

uring the summer months in our province, people undertake a variety of activities in addition to their regular work such as holidays, gardening, fairs, camping and a phenomenon called yard or garage sales. While getting ready for my own garage sale, I came across some old editions of the BIG WHEEL magazine. Some old timers might remember the magazine. It billed itself as covering four of BC’s independent trucking & logging associations. These four associations were the Western Independent Log Haulers’ Association based out of Ladysmith, the Interior Logging Association based out of Kelowna, the Prince George & District Truck Loggers Association based out of Prince George and the North West Loggers Association based out of Terrace. Reading through some of the issues, I came across some interesting articles and tid-bits that could have been written today and are just as relevant. The first headline that caught my eye was “Drug-caused accidents are common.” “Many of today’s industrial accidents are directly or indirectly caused by drug abuse,” wrote then WCB medical officer, Dr. R.M. Hayes. “Ignorance of the effects of drugs and the interactions of drink and foodstuffs, and the cumulative effects of poor discipline, poor training, apathy, highballing, and other factors produce an unnecessarily high accident rate.” Side effects of commonly used drugs include drowsiness, loss of muscle co-ordination, unsteadiness, double-vision and myopia,” wrote Dr. Hayes. Another heart stopper was “Joint Safety Conference Largest Ever.” “Plans are well under way for the Workman’s Compensation Board sponsored “Search 71,” the largest joint management-labour safety conference ever held in British Columbia. More than 1,000 delegates are expected to attend the two day session. The main aim of the conference is to reduce work injuries

10 Truck LoggerBC Fall 2014

and deaths in BC, through ever increasing co-operation between labour, management and other interested groups. It will confine its activities to on the job safety, and is unique in that it will be broken down into major industrial groups. This conference is not designed to be an arena to air labour-management differences, but rather a forum to discuss mutually how safety hazards may be best corrected.”

shared so all may benefit. “An association is only exactly what it says it is—a group of individuals or businesses with common goals and problems trying to better conditions for themselves and each other by the sharing of efforts and ideas. I would remind you of what we have achieved by cooperating in the inter-changing of ideas with the other logging associations in the province,” concluded Howard.

An association is only exactly what it says it is— a group of individuals or businesses with common goals and problems trying to better conditions for themselves and each other by the sharing of efforts and ideas. It was during the year this back issue was published that the Prince George & District Truck Loggers Association ceased to exist and formally changed their name to the Central Interior Logging Association. I came across an editorial comment by then CILA President Howard Lloyd, which is so very applicable in today’s harvest and hauling climate. Howard wrote, “The value of associations such as ours in the future will be indispensable as the loggers and truckers find themselves dealing with ever larger companies, militant labour unions, increasing government regulations and the mounting pressure of the public concerned over pollution and the multi-use of forests. It must be agreed by all that with today’s ever increasing demands on an individual’s time, the necessity is self-evident belonging to an association where logging methods, equipment accounting procedures, proper contract forms, insurance problems, financing and the multiple other problems facing the independent logger or trucker may be discussed impartially and the knowledge and experience

With the demise of the CILA earlier this year, I remind all contractors that there are still three strong harvest-based associations within the province. The TLA on the coast, the ILA in the Interior and us, the NWLA, located in the northwest of BC. If you aren’t a member of one of these three associations, I encourage you to check them out and join the one that you are most comfortable with. The words and articles above are from the year 1971 and ring as true today as they did 43 years ago. Only by working together can we overcome the many hurdles that continue to face our industry.

Wayne Lintott

Interior Logging Association’s MESSAGE

Boots on the Ground: More Forestry Training Coming to the Interior

orestry equipment operator and log truck driver training remains at the top of our priority list for the Interior Logging Association. We have partnered with Thomson Rivers University and applied for a funding grant under the Project Based Training Grant Funding Program. Our application, if approved, will train an additional 16 operators over and above the 84 that have already attended three previous grant sponsored programs at TRU Williams Lake and TRU Kamloops. We are also pleased to be involved and see a new three-month training program being offered by Selkirk College’s Community Education and Workplace Training Division. This course will provide participants with entry level training or skills updating for some of the more than 75 job openings in the next several years with logging contractors and operators working in the North Selkirk College area—Nelson Forest District Region. Local contractors in the forestry industry indicate that there is high demand for new employee recruitment, training and skills development—

employment opportunities in entry level jobs and forestry equipment operation exist with most logging contractors in the region. Upon completing 13 weeks of training and skills development, participants will be job-ready to carry out entry and semiskilled job functions in overhead cable logging operations and conventional ground logging operations. Design of the training program has involved logging contractors and operators who will track and evaluate the program through an Industry Advisory Committee and a Placement Board which will track participant progress through the training program and provide job links to employers in the area. The program will be offered in 4 modules: 1. Orientation to the logging and forestry industry (one week) – Job paths and opportunities, job readiness and workplace skills, and site visit to logging operations. 2. Basic Forestry Employment Skills (four weeks) – Safety in resource industry certifications (first aid-

WorkSafeBC, radio communications, environment and hazards, others), logging rigging, fire suppression, chainsaw safety and operations, log species and grades, navigation (map and compass, GPS and geo-referenced maps), and job site orientation—hazards and safety, and job shadowing. 3. Basic Logging Skills (four weeks) – Orientation and on-site work experience in overhead cable and conventional ground logging operations. 4. On-the-Job Training (four weeks) – Working on-site in a logging operation to practise safety and hazard recognition, and to develop skills on-the-job in a controlled production setting. Selkirk College continues to work with industry representatives to develop the training program and is awaiting word about possible provincial funding for a pilot project this fall. For more information, contact Gregg Neelin at 250.365.9334.

Open Letter from Tim Menning, Past Chair, CILA As many of you will have heard by now, the CILA has closed its door and will not reopen. Tim Menning, Past Chair of the CILA, sent the letter below to his fellow CILA members. We appreciate Tim’s support in this time of transition in the Interior. Dear CILA members, Like many of you, I was a member of the Central Interior Logging Association for many years, and I also served as its Chairman for several years. With the CILA now shut down, I am already discovering that getting logging and trucking concerns addressed in this part of the Interior has become much more difficult—I can’t just pick up the phone, dial the CILA number and have someone there take on my problem. There is no chance of recovery for the CILA, and after looking at all options, I’ve decided to take out a membership in the Interior Logging Association, based in Vernon. I believe we need a strong logging association across the Interior of BC because many of our issues are different than those shared by loggers and truckers on the Coast. With a strong ILA in the Interior and a strong Truck Loggers Association along with the North West Loggers Association representing the coastal industry, those of us across the harvest sector can once again have the ability to influence regulatory agencies and government policy on our issues and opportunities. Please think about the advantages that membership in the CILA gave you, and seriously consider joining the ILA, as I have done. Tim Menning, Past Chair, CILA

Fall 2014 Truck LoggerBC 11

Gavin Marshall

Legal REPORT

The Evolution of WorkSafeBC: Understanding Due Diligence, Past, Present and Future ince the tragic workplace catastrophes at the Babine Forest Products and Lakeland Mills sawmills, the entire forest products industry has been under unparalleled scrutiny by WorkSafeBC regulators. Previously unforeseen concerns about the hazards of combustible dust have led to special programs, focused on lumber manufacturers, to ensure compliance and safe working environments for workers throughout the province. It was broadly reported that the Babine and Lakeland accidents resulted in some of the largest and most complex WorkSafeBC investigations in the history of British Columbia’s Workers’ Compensation Act (WCA). The WCA contains regulatory offense provisions (WCA Division XV) that are sometimes applied where the OHS rules have been breached, where a serious workplace accident or fatality is deemed avoidable, and where an employer or other responsible person showed a lack of due diligence in managing a foreseeable workplace risk. In the sawmill accidents, the recommendations to pursue regulatory offences were delivered to Crown Counsel for assessment for prosecution. To proceed, the Crown had to conclude that there was “a substantial likelihood of conviction” for an offence, on a high standard of proof. In the sawmill accidents, the Crown’s charge approval assessment found that procedural flaws in WorkSafeBC’s investigation process, plus strong evidence of each employers’ “due diligence” in managing the hazards that were foreseeable at the time, resulted in the Crown refusing to press charges available under the WCA. That outcome led to the Macatee Report released in July 2014, which recommended renovation of the investigation model and approach used by WorkSafeBC for serious accidents. The Report proposes that prosecution-style investigations for serious accidents, be divided from those where administrative penalties are being considered, as well as oth-

12 Truck LoggerBC Fall 2014

Photo: Dreamstime

er changes in the worker’s compensation investigation regime. All of this has highlighted the importance of due diligence in the OHS legal regime, and the forest products industry in particular. Whether getting the trees out of the woods, or in the downstream manufacturing process, forestry is a dangerous business. The first line of defense to prosecution or penalty is also the best—taking every reasonable step that a responsible diligent employer may take to ensure the health and safety of workers. However, if an accident occurs, and when WorkSafeBC investigates, it is not sufficient to have taken reasonable care. The system is designed to require employers to show the step-by-step evi-

ing efforts of your business to ensure safety and record those efforts is to retain a consultant or other professional to review what is in place against the required regulations. At the end of the day, employers will ask: Do our efforts amount to compliance? Are we being as diligent as the law requires? One way of getting some comfort is by doing a stress test—by actually walking through an imaginary accident or serious incident, step-by-step, and assessing the way your organization would respond—to the immediate crisis, to an “investigation”, and with the documents and evidence that can be provided to show due diligence. Ideally, refining the due diligence efforts of your business to ensure com-

The first line of defense to prosecution or penalty is also the best—taking every reasonable step that a responsible diligent employer may take to ensure the health and safety of workers. dence of efforts made to comply with OHS rules and to ensure that workers were properly prepared and trained to know the hazards around them. Every operation should have a strong, functioning Health and Safety Committee that meets regularly and records its meetings; a recording system where hazards are brought to the attention of management and promptly remedied; job safety assessment protocols; and, where required, registered site safety plans. The best way to assess the exist-

pliance with the closer scrutiny we can expect of the forest products industry, will contribute to making the industry safer, as well as being a vital line of legal defense if the worst happens. Gavin Marshall is a partner at the law firm Roper Greyell LLP, and specializes in workplace law of all kinds. He represented Babine Forest Products and Lakeland Mills Inc. during the investigations by WorkSafeBC of the fatal sawmill fires that destroyed those facilities.

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Fall 2014 Truck LoggerBC 13

Ken Higginbotham

Safety REPORT

COAST HARVEST ADVISORY GROUP: AN UPDATE ON PROGRESS

oncern during the fall of 2012 about trends in serious accidents and fatalities associated with various phases of logging on the BC coast led to the formation of the Coast Harvest Advisory Group (CHAG). The group is made up of managers from the five largest producers on the coast, two contractors and a safety specialist from the United Steelworkers. The work of CHAG is directed and overseen by a group of CEOs from the organizations involved. The BC Forest Safety Council (BCFSC) acts as a secretariat for the work. Their CEO and staff contribute greatly to the success of the work of CHAG. CHAG began its work in early 2013 with development of a listing of activities that we felt had the potential to significantly reduce the risk of serious ac-

cidents or fatalities in a relatively short time period and, at the same time, have a positive impact on entrenching a culture of safety among all people involved in coastal logging. Significant progress has been made but the list is long and CHAG’s work continues. The CHAG organizations have all agreed they will implement all recommendations made by CHAG and approved by the CEO steering committee. What follows are a few highlights from our work so far. A central focus of CHAG’s work has been on reduction of phase congestion which happens when falling, bucking, skidding, road construction and hauling are all going on at the same time in the same location. The greatest impact made on phase congestion is through planning activities. We believe that no

Did you know?

When there is an injury at work, an employer must file that information with WorkSafeBC within 3 days. Currently the forestry industry takes 21 days on average. Prompt claim filing means the best outcomes for the injured worker and the company, saving industry tens of millions of dollars in costs. Safety is good business.

Learn more at www.bcforestsafe.org 14 Truck LoggerBC Fall 2014

stacking of activities should occur on the same slope. CEOs have been asked to approve somewhat higher levels of log inventory to help reduce overlapping of logging phases. Significant work has been done on making sure that all workers have the right to refuse work that they feel is unsafe. A phase congestion video has been completed in order to provide visual material on what is meant by prevention of phase congestion. A poster series is being developed on the subject. The BC government and the Federal Department of Fisheries and Oceans have been asked to consider the issue when timelines for plan approvals are being set. Several actions are underway under the title of “fit to log.” They include subjects such as fallers’ (and other workers’)

nutrition and hydration, sleep deprivation (fatigue), degraded imagery and Switchback training. Experts have been engaged and are in the process of training both contractor and licensee employees. While CHAG is not a formal member of the recently-formed provincial Trucking Advisory Group (TAG), we are staying up-to-date on their work and provide input back to TAG based on briefings that we receive. Access to aircraft for emergency evacuation of badly injured workers in remote locations has been a problem for many years in the industry. CHAG has formed a sub-committee to examine ways to deal with the issue. We now know that Emergency Health Services should be accessed early in trying to evacuate an injured worker. They have the ability to â&#x20AC;&#x153;push the right buttonsâ&#x20AC;? to get a federal search and rescue helicopter dispatched quickly. Communication of this mechanism to all coastal operators is underway. We are working with

the rural doctors in the BC Medical Association towards an eventual dedicated provincial helicopter capability to help with these instances. Several areas are being worked on associated with faller safety. As of CHAGâ&#x20AC;&#x2122;s June meeting, 56 faller supervisors had been safety certified through the BCFSC. A further 61 have indicated interest in becoming certified. A curriculum and course materials have been approved for qualifying supervisor trainers and two courses will be run before the end of 2014. A program for re-certification of fallers on a rotating basis is being developed by the BCFSC with the input of experienced falling supervisors. An initiative is underway to expand funding and capability to train new fallers for work under coastal conditions. Extensive discussion and planning associated with making certain that danger tree blasting is accepted across the industry as a tool for management of dangerous canopies has been carried

out. This includes both training of fallers or faller supervisors in the technique but also has dealt with issues such as transportation of powder and blasting caps and the possibility of sharing magazines amongst companies. A final piece of important and ongoing work is the sharing of data on incidents, near misses, etc. between operators on the coast. There is agreement that sharing of data and best practices needs to occur on an ongoing basis but we are still in the midst of determining which metrics we should use so comparisons across the industry are made on the same basis. The CEO group has given specific instruction that we need to resolve this issue so we will come up with a solution. Ken Higginbotham is a Project Manager. Questions or comments about the work of CHAG are welcome and can be directed at higgassoc@gmail.com.

Fall 2014 Truck LoggerBC 15

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Fall 2014 Truck LoggerBC 17

TLA Editorial

Market REPORT

LOG EXPORTS—IS THERE ANOTHER OPTION?

18 Truck LoggerBC Fall 2014

rent export policies ban the export of yellow cedar. Without a domestic market, there is no market at all and BCTS sales with high levels of yellow cedar are

market whatsoever, we should be able to market those logs internationally. The TLA supports a diverse market for BC’s logs, both domestically and in-

Opponents argue that a log exported is a job exported. The reality is a log not exported is a tree not logged.

Photo: Dreamstime

o allow for an open export of market logs or none at all seems to have been the only options discussed in British Columbia. That is until Joel Wood of the Fraser Institute released a report on log exports this summer and proposed a third option. What if BC considered a quota system which would allow log producers to export a fixed volume of logs? This has some merit. It gives domestic log buyers some assurance of volume and allows exporters to secure long-term contracts, sort logs per customer request and reduce time delays the current system creates which can be six weeks to three months. The report studied the impact of various export policies on the coastal industry and, not too surprisingly, it concluded that an outright ban on exports would have the most detrimental impact on BC’s forestry and logging industry not to mention the families and communities that rely upon those jobs. Coastal loggers have known this all along. During the recent downturn, exports supported the coastal logging industry and the communities our members work in. An outright ban would have compounded the impact on the logging industry of the domestic market for logs suddenly diminished. Opponents argue that a log exported is a job exported. The reality is a log not exported is a tree not logged. During the downturn, lumber prices plummeted as did log prices. The demand for BC lumber dropped as US housing starts dropped to World War II levels. The price offered by domestic buyers would not even cover the cost to harvest and deliver the logs to the mills in many cases. If we weren’t able to export logs, harvesting would have been dramatically reduced and thousands of loggers would have lost their jobs. This situation continues today. Quite often the logs exported help pay for the logs that are sold locally. How restricting markets can have detrimental effect was driven home loud and clear when a recent crash in the yellow cedar market resulted in reduced milling of yellow cedar and a growing stockpile of yellow cedar logs. The cur-

going unsold. What was once a sought after and valuable species became a liability. This policy needs to change. At the very least, when there is no domestic

ternationally. We need a vibrant domestic forest products industry just as we need a diverse and strong international customer base for all our products, both

Photo: TLA Staff

logs and other wood products. This was reinforced lately when the China market slowed down significantly. Local log producers were able to sell some of their product domestically reducing the impact the China market slowdown had on their businesses. Without strong domestic and international markets for logs and forest products, the industry is at the mercy of a single market. We saw what that looked like—merciless—when the US housing market crashed. A change in government policy, any policy, will be beneficial to some and negatively impact others. It is the net gain or loss that is important. The current policy is working but as the report points out it has its draw backs. Time delays and the potential for mismatched log lengths create problems. However, when comparing log prices you have to ensure you are comparing apples to apples. For example, very few if any pulp logs are exported. When comparing domestic log prices to export prices you must look at the same logs. An aggregated log price of $108.35 per cubic metre for export compared to $74.28 domestically as the report points out, doesn’t take into account pulp log prices. It is clear that there are other options that could be explored by government on the issue of log exports and there is a potential to improve upon what we currently have. The TLA supports that so long as there is a thorough analysis of the options, there is an apples-to-apples comparison of the options and results are a vigorous and diverse markets for logs both domestically and internationally. This kind of balance ensures longterm stability for BC and the communities that rely upon our industry and allows for the full utilization of BC’s coastal allowable annual cut.

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James Byrne

Business MATTERS

HOW MUCH COULD YOU SAVE... IF YOU DIDN’T GO TO ARBITRATION?

Photo: Dreamstime

ogging contractors and their relationships with tenure holders go back to processes and concepts developed in the 70s and 80s, when margins were large and profitability was significant enough that the two groups could negotiate agreements between themselves without financial ruin being a typical outcome. Today things are different. Long gone are the days of negotiating over a bottle of whiskey; instead negotiating involves accountants and lawyers, and often poor settlements are taken as an alternative to bankruptcy. With timber and lumber bouncing back from the record lows, the industry outlook is improving. While the logging industry is recovering, the economic environment and demographics have shifted. Today the average age of a camp crew is 50 plus, which doesn’t bode well for the long-term sustainability of the industry. Although the forestry industry in British Columbia is still an economic driver, it is not the same economic force that it used to be. Today high school graduates no longer debate which contractor or mill job to take when they graduate; they debate whether they should be going to university or the oil patch. If so many things within the industry have changed, can the same methodology of negotiating and resolving disputes

still be in the best interest of both parties, considering the razor-thin margins and limited workforce? Today the focus shouldn’t be on what an arbitration proceeding will cost; the focus should be on is how much could be saved if we didn’t go to arbitration. Within the details of the Forest Act, the Timber Harvesting Contract and Subcontract Regulation (Part 5, Division 4) spells out the steps in rate disputes, along with the timing requirements. There is no doubt that there is a cost to going to arbitration. How much will it be? Much like the fabled “market rate” there is no answer to what the specific cost will be. The simple answer is that going to arbitration will cost more than you want to spend—and it will be draining both mentally and financially. When I’m asked how much will the arbitration process cost, it seems the more relevant and important question that both contractors and tenure holders should be asking themselves is this: How much could we be saving if we didn’t go to arbitration?

we will want to ensure that this is done safely and in an environmentally sustainable fashion. But at the end of the day, we want to maximize the return on our investment and our equity that has been built up over years of hard work. If we feel we aren’t maximizing our profitability, what is left? Go to arbitration and pound on the other side? Here’s a novel concept that may lead some to question my sanity: Why can’t both parties work together and identify how they are able to maximize their profit and work together to achieve both customer and supplier goals? Reliability, quality, dependability, financial success, all the buzz words; however, when these concepts are defined by each party, they can become tangible and defined. If the success and sustainability of the forestry industry is to be defined by more than just the immediate profitability reported by each party, the two groups need to work to understand each other’s needs. If we choose just to arbitrate and not identify business needs, the average age of the camp crew will

Under the system that is currently in place for Bill-13 contractors and tenure holders, the ability to operate independently and without influence of your customer and your supplier is limited. Under the system that is currently in place for Bill-13 contractors and tenure holders, the ability to operate independently and without influence of your customer and your supplier is limited. You can’t pick and choose someone else to work with and you simply can’t deal with the other party. As I’m an accountant, my focus may be a bit skewed, but I always thought that everyone’s objective as business owners was to maximize the profitability of their operations. I would think this is a common objective of both tenure holders and contractors? Of course,

soon be 65. There will always be a place for veterans of the industry. Their experience is invaluable. But it’s time to revitalize the industry, bring in younger workers and fresh thinking. It may well be that the old system is broken and it’s time to think outside of the box! By James Byrne, MBA, CPA, CA is the Business Advisor and Regional Leader Forestry Services. Tel: 250.753.8251 Email: james.byrne@mnp.ca

Fall 2014 Truck LoggerBC 21

MEET KELSEY PELEGRIN, POSTER CHILD FOR TOMORROW’S FOREST INDUSTRY WORKFORCE By Hans Peter Meyer Photo: Hans Peter Meyer

Kelsey Pelegrin (centre), an Aboriginal woman and a talented machine operator, is part of the new workforce the forest industry needs to attract.

elsey Pelegrin is the kind of employee the forest industry needs to attract. As a young aboriginal woman she’s part of a demographic that could help meet the industry’s labour market needs. She’s also talented and ambitious, coming second in a class of 17 heavy equipment trainees. But it wasn’t talent or force of will alone that got Pelegrin into the operator’s seat at K&L Contracting as soon as she graduated. She had some help with a targeted training program. It’s this kind of support that others in the industry are hoping will lead to more jobs for First Nations men and women in the near future. A Labour Force Crisis The near future is where the industry is focused when it comes to recruitment. A recent study by the TLA underlines what most members already know: it’s hard to find trained employees.

22 Truck LoggerBC Fall 2014

Anyone familiar with the industry knows how and why we’ve lost some of our best and brightest to other industries in the past decade. One of these is the perception that there’s no future in the forest industry. The TLA study suggests otherwise: It’s estimated that within 10 years attrition alone will create 5,000 jobs. If the super-cycle kicks in, the number could be a lot higher. How to Fill the Gap? One way to fill the gap is to work more closely with First Nations communities. Home to the youngest and fastest growing demographic in BC, these communities represent a wealth of raw talent. Additionally, many of these communities are located in remote parts of the coast—next door to forest industry operations. With strong geographical and family ties, there’s the hope that First Nations workers will welcome the op-

portunity of working close to home. Anna Celesta works with First Nations through Sto:lo Aboriginal Skills & Employment Training (SASET). “There’s still a gap in awareness for First Nations’ youth,” she says. Like so many others, First Nations youth are generally not aware that forestry is on the ‘upswing’ as an employment opportunity. For those that do see the opportunity, SASET is there to help. SASET: Helping Raw Talent Become Job-Ready Operators Pelegrin says her interest in running machinery wasn’t inspired by the opportunities in the forest industry. Instead, it was stories about excavator operators laying live pipelines. “They became my idols,” she says. She signed up for a HEO program being offered at Seabird College in partnership with Thompson Rivers University. As a member of the Bridge

River Indian Band residing in the SASET catchment area, Pelegrin was eligible for funding to support her training. The importance of SASET can’t be overemphasized. K&L Contracting’s Lincoln Douglas has commented that more than skills training is needed to transform the raw talent in First Nations communities into job-ready workers. Stepping into a non-Native working context can be very challenging for young men and women from First Nations communities. SASET helps, by finding the right “fit” for clients. Celesta says that “fit” is based on employability/ life skills, training, labour market analysis, and individual’s strengths and interests. “This helps individuals, whether they’re status or non-status, on- or offreserve successfully take the next steps on their career paths.” In Pelegrin’s case, SASET helped her beat a significant funding challenge. It

also matched her passion to be an excavator operator with a program that gave her classroom time plus lots of hands-on, in-the-field experience with excavators, front-end loaders, dozers, graders, rock trucks, and backhoe. Louie Edwards, Pelegrin’s supervisor at K&L Contracting, is impressed with the results. “I can’t say enough good things about her as a worker,” Edwards says, “When I give her instructions, she visualizes the big picture on how it’s supposed to look. She’s very successful at whatever we throw at her.” Growing Demand, Shrinking Training Capacities When it comes to transforming raw talent into job-ready worker, Kelsey Pelegrin is a success story that bodes well for the forest industry. But Celesta is cautious about being too optimistic. SASET has experienced financial cuts from the prov-

ince this year, and ASET agreements with the federal government have not seen a budget increase in 20 years. “We know there are labour force shortages and labour market opportunities in the forest industry,” she says, “but limited funding on the training side is a challenge.” Pelegrin may be a poster child for the future of the forest industry, an example of the growing pool of young talent in First Nations communities. Organizations like SASET certainly have a record of helping these men and women become valuable employees. The question remains, can these organizations meet growing demand, given their limited capacities? For contact information for the Aboriginal Skills & Education Training Services program (ASETS) in your area, visit www.tla.ca/training.

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Fall 2014 Truck LoggerBC 23

LOGGING RATE NEGOTIATION: WHEN DAVID MEETS GOLIATH By TLA Editorial

n a government press release on April 30, 2014, Premier Christy Clark said, “BC is on the right path to bring home the generational opportunity of LNG—an industry that will create 100,000 jobs and enough revenue to eliminate our debt.” Rich Coleman, Minister of Natural Gas Development went on to note that “By supporting the development of this new export industry, we are creating unprecedented economic opportunities for the people of British Columbia.” The provincial government knows that the increased use of natural resources, like LNG, will strengthen the provincial economy and provide people in rural communities with jobs and infrastructure, a core objective in promoting the use of our natural resources globally. But while LNG may turn out to be a resource that benefits communities, the

same cannot be said for the forest industry where consolidation of harvesting rights and forest policy changes have allowed some to benefit while others pay a price. We all know the background now. A global economic recession led to contractors accepting lower rates in order to survive, rates that have not rebounded with markets. As discussed by a group of veteran loggers at the Interior Logging Association (ILA) convention this past spring, “Everyone took a hit, but some say the hardest hit were BC’s logging contractors.”1 On the other side of the coin, market improvements and growing demand for forest products has led to significant profits for the major licensees. Western Forest Products reported 2013 EBITDA (adjusted) of $129 million. Q1 of 2014 saw adjusted EBITDA

Specializing in Mechanical Falling and processing on the BC Coast

of $32.8 million.2 With lumber shipments of 218 million board feet (estimated to require 780,000 cubic metres of logs) and log shipments of 581,000 cubic metres, a total of 1,361,000 cubic metres of logs were processed to generate the average adjusted EBITDA, or an estimated $24 per cubic metre of log processed and sold. The trend continued into Q2 with a reported adjusted EBITDA of $40.9 million3. Interfor saw similar results, although their operations are not restricted to BC. Their 2014 Q1 adjusted EBITDA was $39.2 million on lumber sales of 439 million board feet4 , estimated to require 1.6 million cubic metres of logs, plus log sales of 398,000 cubic metres. This equates to an adjusted EBITDA of an estimated $19 per cubic metre of log processed and sold. Interfor’s Q2 of 2014 results were even better.

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Canfor too was profitable, although like Interfor their operations are not restricted to BC. For 2013 Canfor reported an operating income of $285 million for their lumber sales alone on approximately 4.7 billion board feet of lumber shipments.5 This equates to an estimated $17 per cubic metre of log processed into lumber. Profits continued into 2014 with 2014 Q2 EBITDA of $141 million.

ging contractors had to seek insolvency protection and/or were forced into bankruptcy in the last few years and more than 10 companies faced rate mediation or arbitration as a result of an inability to negotiate improved rates for work with their employers. Both trends have continued into 2014. Ironically, this record of struggling contractors, primarily as a result of un-

For coastal contactors, however, the story is much different. Research done in late 2013 showed more than 25 logging contractors had to seek insolvency protection and/or were forced into bankruptcy in the last few years. For coastal contactors, however, the story is much different. Research done in late 2013 showed more than 25 log-

sustainable rates comes at a time when the BC Forest Sector Labour Market & Training Needs Analysis, completed in

October 2013, projects 4,700 job openings between now and 2022 in the coastal forest industry alone. Logging contractors employ a significant number of people in the industry and if they cannot afford to hire and train the needed people, it puts the entire strategy to attract workers and the industry as a whole at risk. So what is really going on here? A recent discussion with a group of coastal contractors reveals some interesting perspectives. Many believe that the core of the issue rests with the 2003 coastal restructure which allowed consolidation of the licensees that has created an unequal playing field when it comes to contract rate negotiation. There are simply fewer companies with which to do business and those who control the resource are successfully keeping rates artificially low.

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Fall 2014 Truck LoggerBC 25

Contractors were weakened through the recession and are being forced to continue to accept rates that cannot sustainably support their businesses. At the same time, there are increased costs for fuel, steeper ground that requires more expensive logging techniques, repair or replacement of “tired iron” and increased costs to ensure safe operations, recruitment and training, none of which are typically acknowledged in rate discussions. A case in point is the unfortunate circumstances of Malaspina Enterprises, an otherwise hard working coastal contractor that was forced to seek insolvency protection and make a proposal to its creditors to keep from going bankrupt in the spring of 2014. In the Notice of Proposal to Creditors for Malaspina Enterprises6 (the Notice), it was stated by the trustee that: “The company began experiencing financial difficulty in 2008 with the decline of the forest industry in British Columbia. During that time, logging contractor rates plummeted as contractors strug-

gled to obtain work and started to underbid jobs. Low bidding, high labour and operating costs have led to declining gross margins and negative cash flow. Although the company continued operating, they remained unprofitable for the last 4 years.” The Notice went on to detail the 49 unsecured debtors that were owed $2.5 million accrued by Malaspina, many of which were local community businesses that tried to support Malaspina as it struggled with low rates. A communitybased traffic control firm, a wire rope firm, other logging contractors, equipment suppliers, fuel suppliers, tug boat service providers, truckers, an auto repair shop, a crane company, they all had to pay a price when Malaspina sought insolvency protection as the eventual settlement proposal agreed to by the debtors did not provide sufficient funds to cover all debts completely. Some were paid as little as $0.12 per dollar of debt owed to them. And there are other similar stories across the coast. Kip Brown Trucking’s

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low rate driven insolvency ($1.45 million in unsecured debts to 45 creditors) was compounded as noted by the trustee since: “In 2010 fuel prices soared and contracts the company previously bid on were non-negotiable for increasing fuel costs.”7 Clayoquot Forest Management Ltd. in their Notice of Proposal to Creditors owed close to $1.6 million to 51 creditors and Cold Stone Logging Ltd. in their proposal listed 93 creditors who were owed $1.5 million. One might suggest that the continued use of contractors in this poor financial situation, effectively transferred wealth from the contractors and small community businesses that tried to support the contractors to the major companies that used their services, now that we have seen the outcome of the various insolvency proposals. As previously stated by Dwight Yochim, a past TLA Executive Director, “People knew these companies were in trouble. They knew the rates were unsustainable. …If logging companies knew, the licensees must have known.”8

That said, many community-based businesses provided credit as they endeavoured to operate with low rates, only to get burned in the end. To make matters worse, the licensees continue to try to impose these types of rates on the remaining contract logging industry by suggesting that they are the prevailing market rate. One has to ask if rates that assume the need for ongoing losses that are inevitably borne by local community businesses via insolvency, really reflects BC’s logging “market.” We all operate within the current legislative and regulatory framework that unfortunately and inevitably lead to contractor insolvency; however, should we as a community be supportive of those rates that reflect “the market” and all contractors should support them? If so, then it means that we must also accept that the contractors, and by extension the small community businesses who are inevitably damaged when they are caught in an insolvency proposal, should be burdened with funding licensee operations.

So what has this continued trend resulted in other than the profitable use of a public resource by the licensees?

can have on their members when they recently ratified their agreement with Western Forest Products (WFP). “The

Utilization of public natural resources to create “economic opportunities for the people of British Columbia,” as stated by Rich Coleman, should not be limited to those who achieve control of the resource. The difficulty in operating their business with unsustainable rates has forced many contractors to downsize or to turn down new opportunities that they would otherwise try to secure. Many simply cannot afford to invest in new equipment or to pay the costs to train new recruits to work and operate equipment safely within the current rate environment. The last thing any contractor wants is an injury or fatality. This trend does not bode well when the need to attract 4,700 new recruits to this industry looms on the horizon. Even the United Steelworkers recognized the significant impacts this issue

agreement offers members protection when working with contractors. The company (WFP) agreed to implement holdback provisions if any of their contractors become delinquent in health and welfare or pension payments.”9 They have seen it happen already and are obviously concerned it will happen again. Utilization of public natural resources to create “economic opportunities for the people of British Columbia,” as stated by Rich Coleman, should not be limited to those who achieve control of the resource. It is a reasonable premise to suggest that there should be balance in the economic benefits that flow from

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provincial natural resource use and that the regulatory and operating environment that frames business operations should reflect this. In 2005, the TLA predicted that the changes brought about by the Forest Revitalization Act would bring hardship to contractors and communities as a whole, but agreed to them having been

told by government that if things don’t work out, changes would be made. Ten years later, our prediction is all too evident and change is needed once again. As the TLA approaches its 75th anniversary of advocating for loggers’ issues (it will come as no surprise that rate issues were the catalyst for TLA’s creation in 1943), we can be sure that our mem-

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bers will adapt and survive in an effort to protect the personal investments they have in their companies. This trend has already started as was noted by ILA panel members, where some are diversifying to other resource sectors, some are downsizing and many are simply going to retire. If there is no profit in contract logging, TLA members will also adapt and move along. Without change to rates, the framework within which they are negotiated in the logging sector or the insolvency process that allows continued operation of insolvent companies after their debts have been absorbed by community businesses, it is now predicted that there will not be enough loggers to deliver logs, a trend already being acknowledged in the BC Interior by some licensees and for the same reasons. As the super-cycle approaches, the entire forest industry may be at risk because of rates. We would hate to be correct in our prediction…again! The TLA has long been an advocate for loggers and community-based business. All community-based businesses that support the logging sector should, however, be cautious when you are asked to extend credit to a logging contractor. Ask if they have been insolvent in the past (an indicator of the impact of low rates) and confirm for yourself the likelihood of you being paid. The evidence to the contrary is mounting as low rates force more contractors to struggle. Should this continue, then LNG better pay off as the forest industry and the BC communities that rely on it may need the economic support. Truck LoggerBC, Summer 2014, “Loggers Not Out of the Woods Yet” 2 Western Forest Products Inc. 2014 First Quarter Report 3 Western Forest Products Press Release July 31, 2014 4 Interfor Press Release May 6, 2014 5 Canfor 2013 Annual Report 6 District: British Columbia, Division No: 03Vancouver, Court No: B140488, Estate No: 11-1848863: April 25, 2014 7 Creditors Package Proposal April 20, 2014 – www.bowragroup.com 8 Truck LoggerBC, Summer 2014, “Like Ripples in a Pond” 9 Alberni Valley Times, August 5, 2014. 1

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NATURAL RESOURCE SECTOR ROADS: LEARNING TO SHARE THE COSTS By Ian McNeill

Photo: TLA Staff

t seems hard to imagine, but estimates on the extent of “resource” roads in British Columbia range from 450 to 600 thousand kilometres. That’s enough to get to the moon and at least halfway back! They come in all shapes and sizes, ranging from well-used and diligently maintained two-lane semi-highways serving both industrial and recreational users to brushed-in tracks you’d need a machete to get through even on foot. Often they come and go, getting laid down to access timber, mineral and petroleum resources, and then getting “deactivated” for environmental and safety reasons. As different as the landscape they often meander through, these roads share one thing in common, they are expensive to build and they are expensive to maintain. But of course if they’re going to be used productively and safely somebody has to do it, and pay for it, and while industrial road users and licence holders in the interior have managed to cobble together a workable system for sharing costs and responsibilities—see part two of the article—the situation on the coast

30 Truck LoggerBC Fall 2014

remains chaotic and contentious at best, with both capital and maintenance costs getting unevenly distributed between licensees and other industrial users, particularly market loggers. According to one contractor interviewed by Truck LoggerBC who asked to remain anonymous, some licensees are implementing road-use charges—$2.40 a cubic metre in some cases—but not conducting adequate or in some cases any maintenance, leaving contractors in the position of having to pay for both road use and repair. Fighting for fairness has proven to be difficult. “There used to be measures to repeal these charges but the district managers won’t get involved in these kinds of discussions anymore, so you’re at the whim of these companies. If you don’t sign on for the road-use charges you can’t haul your logs on their roads,” reports the contractor, who describes the charges as little more than a “cash grab.” Keep in mind these roads are built on public land and are simply under a road-use permit to the licensee, as such the TLA believes the licensee should not be mak-

ing money off the use of the road. Sometimes the arm twisting gets painful. “I’ve seen companies arbitrarily break contracts,” he adds. “Then their lawyers hand you a new contract with higher road-use charges and say ‘sign it and log or stay off our roads.’ They’re using bullying tactics.” Even the language of the contracts has changed. The fees used to be defined as “road-maintenance charges.” Now they’re simply called “road-use charges.” Appeals to reason with the companies involved typically fall on deaf ears. “It is what it is, they tell you.” Court action remains an option. However, as anybody who has gone that route can testify, legal action costs time, money and a significant amount of energy. Also even getting a judgement in your favor does not guarantee payment and can result in consequences elsewhere such as increases in log dump and sorting fees. “We need a shared maintenance program where costs are actually shared the way we do it in places where roads are not controlled by majors,” our source suggested. “And if companies want to

charge road-use fees then they should have to show costs on that stretch of road to justify it. Also, district managers should be involved in mediation talks.” As it happens, a remedy may be on the way. According to Wayne Hagel, a resource road policy specialist with the Ministry of Forests, Lands and Natural Resource Operations, the government is currently working on legislation to address these problems, which it hopes to have in place by the fall of 2016. He says the government is well aware of the inequities and conflicts over road use, many of which were outlined a decade ago in a report released by the Forest Practices Board in 2005. Part of the problem, he said, is that there are no fewer than a dozen regimes in BC that apply to resource road administration, including the Forest and Range Practices Act, the Oil and Gas Activities Act, the Water Act, and the Land Act. “All touch on the administration of resource roads,” he said. The Natural Resource Road Act (NRRA) would bring consistency to all industrial users and have within it a process for resolving conflicts and disputes between

“landowners and tenants.” In fact, the legislation is modeled on the Residential Tenancy Act, which itself was designed to resolve conflicts between landowners and tenants. In simplest terms, the legislation would require the identification of one road maintainer, “that’s one person with a permit per road,” says Hagel—who would be responsible for maintenance. Anyone who met the threshold for industrial use would be obligated to notify the maintainer five days prior to use, and then “the maintainer will get back to you as to what should be your contribution to maintenance. “ As to how much they’ll pay, that’s still an open question, but Hagel says it’s likely to take the form of a rate per kilometre per ton. It’s worth noting that the act will only apply to public lands—private lands will be exempt. However, says Hagel, the legislation will serve as a “benchmark” for costs. “The costs for maintenance will be known, so road users will be able to say if it’s two dollars here why are we being charged five dollars over there?”

It’s also important to point out that the legislation will apply to commercial users only—non-commercial users on natural resource roads will not have to worry about getting handed a bill on the way to their favorite fishing hole or campsite. According to Dwight Yochim, a past Executive Director of the Truck Loggers Association, the proposed legislation has the full support of the membership. “TLA members and others logging contractors from around the province support the implementation of the NRRA simply because it would level the playing field for everyone and clarify the rules around multiple users of resource roads,” he says. For more information on the Natural Resource Road Act, including discussion papers, news releases and FAQs, go to www.for.gov.bc.ca/mof/nrra. See Part 2 on page 32: Natural Resource Road Act: Interior Users Show the Way

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Part Two: Natural Resource Road Act: Interior Users Show the Way Although operating on a smaller scale, Einfeldt says he runs a program that we currently have working examples of runs all the weight and assessment data road use agreements operating between and generates answers as to who owes licensees and contractors in the Interior. how much, and for what. “If somebody According to Flemming Einfeldt of In- spent $500,000 fixing up a road, doing dustrial Forestry Service, groups like grading and maintenance for example, the Prince George Forest Road Mainte- that cost will get submitted and then nance Committee have a management whoever ran on the road will pick up a group that’s made up of representatives pro rata piece of the cost.” from industry, WorkSafeBC, the BC The beauty of it all is that with the Forest Safety Council and pretty much overall structure in place it easily acanyone else with an interest in using commodates new users, which these resource roads. The committee meets days increasingly includes companies in twice a year to “set the rules,” and over- the gas and oil sector. “They can simply sees subcommittees, including a safety be added to the roster,” he says, and by and maintenance committee and a road and large they’re welcomed with open user committee that handles the finan- arms because they have deep pockets and are not reluctant to spend on infracial matters. “We have an agreement between all structure. Other road user groups with licensees that they will share all road similar mandates exist in Quesnel, Fort maintenance costs, and that’s done on a St. James, McKenzie and Vanderhoof, pro-rata basis, and divided up section by and the message is spreading. “We’ve section,” he says. “Road user agreements been talking to people in the Lytton/ are issued to other [industrial] users Merrit area lately, and when they call we who want to operate on the shared road, give them all the information because and there may be a cost depending on we want it all to be standardized.” Andre Stauble, Harvesting Supervisor what they are doing, and that cost will at Sinclar Group Forest Products, says be measured by tonnage and distance.”

overall the system is working well for licensees. “It’s been good value for the money,” he says. “Maintenance has been good and safety is at a higher level. The meetings have proven to be good forums for industry, drivers and even members of the general public to express concerns about safety and high-traffic issues.” There are occasional problems, he says. Some users—the railways being a prime example—refuse to chip in. There are also woodlot owners and small business operators that come and go. But even when that happens no one company takes a bit hit for the loss because all costs are shared. Marty Hiemstra of Lo-Bar Log Transport in Prince George says his company has no complaints about the system whatsoever. “We are paid to harvest and deliver volume; road maintenance is covered by the licensee that owns the road permit or road-use permit on that road. The “users” (i.e. licensees) sort out the cost sharing when multiple users are involved. This is simpler than us paying to use the road and then recouping that through higher logging/hauling rates.”

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LIDAR CAN PROVIDE INSIGHT INTO PTSA’S PATCHY INVENTORY

By Jean Sorensen

LiDAR is the enhanced, more accurate, inventory tool providing users with information never had before. So, why isn’t BC’s forest ministry, charged with getting the highest revenue from forests, not using this tool, especially in the cobbled-together Pacific Timber Sale Area now undergoing its first timber supply review?

PTSA. LiDAR, Boelk said, has been used by BCTS in more remote TSA areas, but has not been acquired for much of the PTSA. It is a more expensive technology. “BCTS is still looking at where the cost benefit lies,” she said.

The chief forester will consider gathered information alongside the social and economic needs of the province to determine future AAC. “It is not so much a calculation as a judgment,” said Boelk. Dwight Yochim, a past TLA Executive All LiDAR Images: Chartwell Consultants Ltd.

ight Detection and Ranging (commonly called LiDAR) is the aircraft-borne laser scanning tool that is providing users with a mother lode of forest and topographical inventory data. The Canadian Forest Service in Victoria issued a 2013 best practices guide based on 25 years of research and BC forest companies are snapping up the new technology. Even Alberta’s forest ministry has embraced the technology, flying it province-wide. Yet, BC’s Ministry of Forests Lands and Natural Resources Operations (MFLRO), charged with reviewing all 38 timber supply areas (TSA) to ensure sustainable annual allowable cuts (AAC), has been slow to adopt LiDAR. The Truck Loggers Association has made the recommendation to the ministry that it deploy LiDAR in its Pacific Timber Sales Area (PTSA) review as the TFL take-backs have made the inventory patchy. Created in 2009, the PTSA is cobbled-together from take-backs, with 30 blocks shot-gunned throughout Vancouver Island, mainland coastal areas and Douglas Channel. Erin Boelk, RPF, works at BC Timber Sales (BCTS) and is spearheading the PTSA timber supply review. She said the Forest Act mandates reviews at least every 10 years. The take-back areas of the PTSA were most recently reviewed in 2001 and “this will be the first timber supply review on the PTSA as a unit,” she said. The PTSA’s current AAC is 1,507,119 cubic metres. LiDAR isn’t playing a big role in the

Using a visualization technique called hillshade, this image shows what the terrain looks like with vegetation removed—drainage patters and roads are now clearly visible. The unit’s timber supply profile will rely upon using vegetation resources inventory (VRI) which is an aerial photobased, two-phase vegetation system consisting of aerial photo interpretation and then ground sampling. Boelk said that such inventory information will be combined with current information acquired by TFL holders during the take-backs.

Director, said the inventory issue facing areas such as the PTSA is one of forest sustainability, an image BC projects worldwide. “Yet, how can we determine how we are doing in terms of sustainability if we do not have good inventory information?” he asked. It has long been known that BC’s inventory information is lacking. Forest

Fall 2014 Truck LoggerBC 33

Photo: TLA Staff

consultant Ian Moss’s inventory report for the Association of BC Forest Professional in 2011 indicated that “approximately 41.9 per cent of the province is represented by inventories that were completed prior to 1990 and 29.9 per cent prior to 1980”. Yochim said: “Without a full inventory, it becomes difficult to determine if we are really sustainable and if our AACs are at the appropriate levels.”

by the LiDAR sensor, which records inertial movement, GPS data and the amount of time it takes for a rebound signal. Such information is transformed by specialized software into 3D points. After calibration and classification, the data is turned over to consultants such as Chartwell, which has developed programs to analyze and interpret the information according to a client’s needs. “LiDAR can be super-dense,” said

LiDAR can identify where dense brush may pose a problem for planting new trees or show accurately the heights of regenerating stands. BC forest companies are using LiDAR and are aware of the demand from international customers for sustainable forest products. Chartwell Consultants, a natural resource consultancy firm based in North Vancouver, builds client groups to use LiDAR making it more affordable for businesses. Cliff Roberts, RFT, General Manager at Chartwell confirmed, “Industry is well ahead of government use; industry is just zooming ahead.” BC has a number of aerial survey companies that fly LiDAR, which emits pulses of laser light from the aircraft to the ground below. As the laser pulses strike objects below (albeit rock, brush, the lower branches of a tree or the tree’s crown), reflected energy is registered

34 Truck LoggerBC Fall 2014

Roberts. “We are talking up to 12 pulses or more per square metre.” As a result, forest planners and managers are collecting detailed information that they haven’t been able to previously. BC’s ministry has traditionally used VRI, but it provides little topographical or geological information. The alternative is to “put boots on the ground,” but it is a process that is “slow and labor intensive,” said Roberts. Interpreting LiDAR’s data is also faster and more accurate; it is done by computers rather than individuals interpreting traditional VRI photo imagery, a process subject to human error. Such errors can be carried forward into programs such as the MFLNRO’s growth

simulator model, which attempts to project a stand’s growth. “LiDAR is multi-purpose,” said Roberts. While LiDAR does not identify species, it does provide tree height information and can provide indicators of canopy biomass. It can aid reforestation efforts identifying where dense brush may pose a problem either for planting new trees or show accurately the heights of regenerating stands. The information can also indicate areas that have the characteristics of a specific species habitat. More importantly, the inventory information collected is placed in the context of elevation and topography of an area, said Roberts. A Chartwell generated schematic shows trees of different height color-coded. Such information, said Roberts, as he points to grouping of mature trees clustered in an area surrounded by high slope and limited access, can help plan harvesting methods such as heli-logging. LiDAR information can be manipulated to also show old roads or road that may have been built by a company several years ago. He points to a schematic’s broken line, which translates into a slide breaking a road, something otherwise not readily apparent unless boots touched ground. Another diagram details streams and slopes. “This gives us an indication of streams and where drainage areas are,” he said.

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have partnered on northern Vancouver Island, the Okanagan and a project involving the UBC’s research forest at Knife Creek. The government’s role has been participatory but it has not contributed financially for LiDAR data acquisition, said Moss, although it has contributed to ground plot data collection. Still, BC continues to spend on its own systems. VRI inventory cost ranges from $1.50 to $2.50 per hectare. Including ground plots, LiDAR based inventories can be produced at similar costs in moderately rough terrain in areas of 400,000 hectares or more, Moss said. The branch has been developing a photo sampling based inventory known as Landscape Vegetation Inventory (LVI), which costs $0.30 per hectare. It uses Landsat, plus other imagery, with a lowelevation digital camera system. According to MFLNRO, the tool is used in areas where VRI is “not justifiable or cost-effective, such as lower forest complexity, areas outside the timber harvesting land base, parks or areas heavily impacted by mountain pine beetle are considered the primary targets for this type of inventory.” Rationalizes Moss: “What they should

Prince George, BC

Island Timberlands is using LiDAR on its Vancouver Island holdings following a 2009 trial project and subsequent data collection throughout 2010-2011. “It provided the opportunity to enhance our inventory knowledge and be more efficient. The surprise came after the trial on the bare-earth model. It detected a wide variety of ground features beyond roads to smaller streams, rock out-croppings and holes such as old mine shafts,” said Brad Rodway, RPF, Production Planning Manager. Island Timberlands is considering further LiDAR opportunities in resource planning, such as wildlife habitat. “We are going to see what works for us and what does not work as the company moves forward,” said Rodway. Island Timberlands has also considered the technology as an aid to dealing with weather changes in the coastal region. Company sustainability manager Morgan Kennah, RPF, said LiDAR’s ability to show slope and drainage details can aid in determining not just best harvesting methods, but also in road construction planning such as where larger diameter culverts for rainwater runoff should be placed.

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Moss said that the Forest Analysis and Inventory Branch’s failure to pursue better technology hinges on funding. It’s an old story. The branch’s budget of $6 million, not even half of the $15 million Moss estimated was needed in his 2011 report. He said some ministry LiDAR pilots have been done. Companies and BCTS

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Information from LiDAR can also be downloaded as geo-fencing information onto hand-held devices or onto GPS guided machines to indicate when harvesting equipment is crossing a boundary, moving into an environmentally sensitive area or venturing onto a grade steepness that violates WorkSafeBC regulations.

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This image shows a cross section of points that are colour coded to indicate their height above ground, illustrating LiDAR’s ability to map both the canopy and the ground beneath.

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This image is made up of a hillshade image combined with LiDAR points to show a model of forest from top to bottom. LiDAR “point cloud” datasets can be very dense. do is drop VRI. VRI is not accurate at an operational scale. Just use the LVI but with the money left over prioritize the TSAs that are most at risk and use LiDAR to do inventories there.” He said that government could retrieve extra value out of a more detailed, accurate, and higher resolution inventory, especially as today’s forest users are diversified.

This image is a modified aerial photo draped over a digital surface model. It is an example of how LiDAR data can be combined with other datasets to model stands and also to communicate with stakeholders by means of realistic and detailed 3D visualizations of a particular area.

“Essentially, a poor inventory leads to It is a stance that Yochim agrees as the poor utilization and poor environmenPTSA review progresses. “Why not be a tal protection practices. It can’t be othleader and invest in the best technology? erwise. There is a tremendous opportuThe majority of our forests are publicly nity cost due to the uncertainty in the owned. I know there is a cost and the current inventories andWood our leaders to balance other things CIBC Gundy have 3/17/08government 1:27 PM has Page 1 been short-sighted in identifying inforhappening in this province. But, you are mation needed to preserve the provgoing to have this resource long after ince’s forests’ well-being,” Moss said. LNG is gone.”

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COLLABORATION OR CHAOS? By Robin Brunet

Will Tsilhqot’in inspire government and First Nations to work together, or will it cause a big investment chill?

ourt decisions involving First Nations inevitably inspire dramatic newspaper headlines The Supreme Court of Canada granting the Tsilhqot’in First Nation title to 1,700-square-kilometres of traditional land outside its reserve is no exception. According to CBC News, the June 26 8-0 ruling is ‘A game-changer for all’ and will apply wherever there are unresolved land claims. Pamela Palmater, a Mi’kmaq lawyer with the Centre for Indigenous Governance at Ryerson University, told reporters: “This clarification really changes everything across the country. It’s not just about the duty to consult anymore, this really changes it to a requirement to get consent over all unceded territory in this country.” Observers worry that the ruling will complicate high-profile energy projects such as the Northern Gateway pipeline, as well slow the permitting process for logging. “So far the flow of cutting permits is normal, but there’s a great deal of uncertainty about the future, and frankly I think my job will become more complicated,” says Bill Markvoort, TLA Past President and Vice President of Probyn Log Ltd. However, Roy Nagel, former Executive Director of the Central Interior Logging Association, said, “Within five weeks of the court decision, contractors began reporting that the issuance of cutting permits out of the Williams Lake forest district had come to a virtual halt as Ministry staff tried to assess the implications to forestry operations.” Nagel continued, “Our hope is that the Ministry gets clarification quickly, before logging operations under the current cutting permits are completed and the industry grinds to a complete stop.” Observers also think the decision will weigh heavily on unresolved land claims in BC, which unlike other provinces has not signed treaties with most First Nations. From an Aboriginal perspective, of course, the ruling is long overdue. Keith

Atkinson, CEO of the BC First Nations Forestry Council, says, “It validates the fair treatment we’ve been asking from government for decades. It’s a huge win because the highest court in the land basically portrayed the provincial government as a bad kid dragging its feet. Now we have to implement the decision and move forward.” But those who have studied the decision are not convinced it represents a massive win for First Nations or a huge loss for the resource industries. “Is the ruling historic? Without a doubt. Has it changed the law of the land? Not much, at least in terms of Aboriginal title claims,” says Jeff Waatainen, a forestry lawyer and associate of Davis LLP. “It’s just an application of the law that exists, and the Court makes it clear that the Crown still holds underlying title to Aboriginal lands.” The Tsilhqot’in ruling is the first time in Canada a declaration of Aboriginal title has been granted outside a First Nations reserve. Unlike previous judgments, it states that title can extend to all traditional territories and is not limited to specific village sites. Moreover, once Aboriginal title has been recognized, project development will require the consent of the First Nation holding title, except where the government can demonstrate a compelling public purpose for the project. The ruling caps a battle that began in 1983, when BC granted a logging licence on land southwest of Williams Lake that was the Tsilhqot’in’s traditional hunting grounds outside the boundaries of the reserve. The Xeni Gwet’in government (one of six bands that make up the seminomadic Tsilhqot’in Nation) sought a declaration prohibiting logging; subsequently, the Tsilhqot’in launched a claim for Aboriginal title. Although a five year BC Supreme Court trial found that the First Nation was in principle entitled to a declaration of title to portions of land within and outside the claim area, it refused to make the declaration. The BC Court of

Appeal subsequently decided that the claim to title had not been established. In overruling this decision, the Supreme Court of Canada laid out how to determine whether a First Nation can prove title. Drawing heavily on the 1997 Delgamuukw decision (which established that Aboriginal title gives “the right to exclusive use and occupation of the land . . . for a variety of purposes,” not confined to traditional or “distinctive” uses) as well as the Constitutional Act of 1867 and other sources, a quorum of judges stated that the provisions are: “sufficient pre-sovereignty occupation; continuous occupation (where present occupation is relied on); and exclusive historic occupation.” Chief Justice Beverley McLachlin wrote, “To justify overriding the Aboriginal title-holding group’s wishes on the basis of the broader public good, the government must show: (1) that it discharged its procedural duty to consult and accommodate, (2) that its actions were backed by a compelling and substantial objective; and (3) that the governmental action is consistent with the Crown’s fiduciary obligation to the group.” McLachlin also wrote, “I agree with the Court of Appeal that the compelling and substantial objective of the government must be considered from the Aboriginal perspective as well as from the perspective of the broader public…… Aboriginals and non-Aboriginals are “all here to stay” and must by necessity move forward in a process of reconciliation. To constitute a compelling and substantial objective, the broader public goal asserted by the government must further the goal of reconciliation, having regard to both the Aboriginal interest and the broader public objective.” The general consensus amongst forest industry leaders is that their sector is in a far better position to move forward than other resource industries. “We’ve developed good relationships and partnerships with First Nations and will continue to improve upon them,” says James Gorman, President and CEO of

Fall 2014 Truck LoggerBC 37

the Council of Forest Industries. But Gorman declined to speculate on how the Tsilhqot’in decision would affect business, stating that COFI needs to study the Supreme Court’s findings further: “The sooner there’s clarity, the better it’ll be for investment.” The same cautious stance has been taken by Rick Jeffrey, President and CEO of the Coast Forest Products Association. He referred Truck LoggerBC to a June 26 CFPA press release, which states: “While the decision adds further direction regarding aboriginal title and how the application of provincial law and regulation will apply on First Nations title lands, the case is complex. An in-depth analysis is needed to fully assess the implications for BC’s coastal forest industry as well as for the people and communities who depend on it.”   The release also states that the coastal forest industry has been cooperatively engaged with coastal First Nations to negotiate and implement numerous business agreements: “We believe this model of engagement and reconciliation is a practical and proven path that is supportive of aboriginal rights and title interests that exist in Canada.” As for the nightmare prospect of the Tsilhqot’in decision creating havoc for investors, a BC forest policy analyst speaking on condition of anonymity told Truck LoggerBC, “I tend to agree that our industry has positioned itself well, and partnerships with First Nations are thriving. And even on a larger scale, I don’t see the decision as a clear win for Aboriginal peoples. For one thing, they still have to demonstrate use of land and prove exclusive use of land in order to gain title, and this will be very hard to do.

38 Truck LoggerBC Fall 2014

“Complicating the situation for them is the fact that most land claims in this province overlap and are competing against each other. In other words, this practically ensures long and expensive court battles—and I doubt the government will be willing to fund more cases of the magnitude of Tsilhqot’in. I think the idea of more court battles may even inspire some bands to opt for the treaty process.” The analyst offers further food for thought. “The Tsilhqot’in decision could lead to interesting outcomes. For example, if an Aboriginal group gains title of land, perhaps the government would no longer be required to build or maintain roads on that land. If there was another infestation like the mountain pine beetle, would the government have a right to infringe on Aboriginal land? And who would have the right to fight forest fires? “There’s a lot of potential give and take that Tsilhqot’in has opened the door to. Frankly, I believe Aboriginal peoples want to give resource investors certainty just as much as we do, simply because as land owners they’ll be beneficiaries to any business activity.” Jeff Waatainen agrees with some of these points. “I think many First Nations will be more inclined to settlement rather than dragging cases through the courts. We have to keep in mind that a lot of their notices of eviction and so forth are merely designed to draw attention to serious issues. In reality, there’s no doubt they want to participate in resource development: unemployment in some of their communities is as high as 80 per cent.” To which Keith Atkinson remarks, “We want to avoid conflict and gain engagement, be more involved in operational issues and land management.” Atkinson says Premier Christy Clark

celebrating the Tsilhqot’in decision publicly would be an indication that BC is taking the Supreme Court’s ruling seriously, “and it could be the leadership the forest sector needs to break through the barriers of uncertainty created by unresolved treaties and titles in BC.” Waatainen remarks, “A challenge for First Nations will be to decide who’s in charge of the land they hold title to: Will it be the hereditary chiefs, the elected chief and council, or other bodies? Because aboriginal title rights are collectively held rights according to the Tsilhqot’in decision, and aboriginal title can’t be exploited in a manner that would prevent future generations from profiting from it.” The best intentions of all parties notwithstanding, there’s a palpable expectation that in the short-term at least, Tsilhqot’in will create a chill on business activity if the provincial permit system slows down. “I don’t think the prospect of more court battles will inspire bands to reach settlements, because they’ve been fighting tooth and nail in the courts for decades at both the taxpayer and First Nations’ expense,” says Bill Markvoort, who is well respected for his ability to broker deals with First Nations and non-First Nations loggers alike. Markvoort adds, “I want the best for both sides too, but I think it’s inevitable that we’ll see more cases and more lawyers, which will guarantee time and expense at a time when our industry has been trying to reduce the cost of doing business.” Like his counterparts at the Council of Forest Industries and Coast Forest Products Association, Dwight Yochim, a past TLA Executive Director, is hesitant to speculate on what impact this court decision may have on the forest industry. However, he will say this: “TLA members, and the forest industry in general, have worked hard over the last twenty years to build long-term, respectful business partnerships with First Nations. On top of that, we currently have successful First Nations forest companies operating within the industry. I believe this gives forestry an edge. We’re farther down this path than other natural resource industries.”

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THREE DIFFERENT ISLANDS, THREE DIFFERENT TALES: TRYING TO LOG ON BC’S SOUTH COAST By Sandra Bishop

ontroversy is not new to BC’s forest industry, especially on the coast where cottage dwellers, recreational boaters, tourism, fish farms, marinas and yacht clubs, to name a few, all have a stake in our supernatural British Columbia. But the level of controversy can change depending on where you’re operating and how you consult. Three different islands—Maurelle, Gambier and Nelson—tell us three different logging tales.

Currently, BC’s coastal working forest makes up 2.5 million hectares, a smaller area than the 3.14 million hectares that has been conserved through the establishment of parks, ecological reserves and protected areas. “The Crown portion of Gambier Island is part of BC’s working forest, along with areas of Maurelle Island and Nelson Island—all located within the Sunshine Coast Forest District,” states Dwight

Markvoort compares BC’s working forest to the Agricultural Land Reserve which gives priority to farmers by preventing encroachment on farm land by other users. Recently, timber harvesting has come under fire on islands like Maurelle where a BC Timber Sale was recently logged and Gambier, which is in the process of being awarded two new woodlots to complement the existing woodlot there. Critics are vocally opposing logging on Gambier Island while more and more loggers are saying enough is enough; it’s time to stand up and protect the working forest, a timber harvesting land base that has been gradually chipped away at on the coast.

Photo series: Ministry of Forests, Lands and Natural Resource Operations

40 Truck LoggerBC Fall 2014

Yochim, a past TLA Executive Director. Since 1990, the allowable annual cut on the coast has fallen more than 23 per cent. “That’s pretty much the equivalent of the Interior’s loss from the mountain pine beetle infestation,” Yochim points out. “People in the Interior are up in arms over the impact of this, the loss of jobs, the economic fallout. Here on the coast, we’re having the same loss and hardly anyone’s aware of it.”

Past TLA President Bill Markvoort’s company, JWM Forestry, was responsible for harvesting Maurelle Island and has a bid in on Gambier’s woodlots. He compares BC’s working forest to the Agricultural Land Reserve which gives priority to farmers by preventing encroachment on farm land by other users. He says the TLA’s objective is to maintain the working forest in British Columbia. “The working forest is allocated through BC’s Forest Act. These low elevation forestlands with high quality second growth timber and relatively low harvesting costs that are accessible on Maurelle and Gambier Islands can be compared to the high quality farm land we have in the Fraser Valley. The working forest, much like the ALR, needs this high value land to help balance the very remote and rugged terrain on the coast with lower quality timber and higher cost harvesting.” Even though Gambier Island has been heavily logged since the early 1900s and until Bill 28’s take-back in 2004 was part of Canfor’s operation, groups like the Gambier Island Conservancy are opposed to the two smallscale woodlots of 6,000 cubic metres

per year combined replacing that longstanding forest licence. Warren Hansen worked for Canfor as a registered professional forester when the company had harvesting rights on Gambier. An avid mountain biker who still lives and works in the area, Hansen says “the woodlot program is the right tenure for the island because it is naturally tailored to be specific to local issues, is more likely to be locally owned and to operate with local contractors that live in the surrounding community.” Furthermore, woodlots generate a significant amount of full-time, parttime and seasonal employment including jobs in planning, harvesting, road construction and maintenance, reforestation, silviculture and small-scale timber processing. But once again timber and tourism is at odds. Opponents worry that Gambier Island is located in a prime recreational area where the mostly weekend cottagers enjoy its beaches, trails and lakes. But registered professional foresters like Hansen and BC Timber Sales’ Norm Kempe say most often timber harvesting operations improve recreation in these areas.

As you can see from the photos below, the Maurelle Island harvesting is very difficult to spot from the water. The photo in the background is of Gambier Island.

Fall 2014 Truck LoggerBC 41

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42 Truck LoggerBC Fall 2014

Map courtesy of BCTS

used, no doubt about it, but the area along Okisollo Channel has a history of logging, too, that dates back probably to the late 1800s.” Kempe’s planning work for the cutblocks on Maurelle Island spanned two years, planning and consulting with stakeholders. Still, harvesting was delayed about six to eight months to improve dialogue and address concerns raised by the tourism industry through the consultation process. In the end, Kempe reflects it was “a bit of an education” for both sectors. “We didn’t appreciate the extent of the tourism sector in the area. We had a sense of the groups we needed to consult, but we lacked an accurate understanding of who all the participants were. Plus, to complicate matters the sector wasn’t very organized at the 85 more units in stock at start.” A d m i t t e d l y, www.internationalmachinery.com forestry is a comSpecializing in quality used heavy spec trucks. plicated business Now offering truck & trailer painting & sandblasting. and was not well understood by the other stakeholders. “They weren’t familiar with the planning requirements and regulations that are in place to manage the visual landscape so we wanted to show them

Bill Errico who owns the existing woodlot on Gambier Island agrees. “The people I see and talk to on Gambier support my woodlot. When I build roads I leave them there for the future. People like it because they can walk through the forest. More people are coming over to the Island now because of the openings and the trails the woodlot creates.” As BC Timber Sales’ Planning Forester for the Sunshine Coast, Kempe has 30 years’ experience in forestry engineering and was the planning forester for the cutblocks on Maurelle Island, which also faced substantial opposition. “The tourism industry, particularly the kayak industry, was using the channel pretty extensively for their business,” he recalls. Situated on the Okisollo Channel in the Discovery Islands, Maurelle Island is “one of the few areas where you have inland waters that are protected and it attracts a lot of boaters and, more recently, the kayaking industry,” Kempe explains. “There are marine parks and whale watching. Cruise ships pass by and so do BC Ferries. It’s an area that’s heavily

visually through our modelling what the area would look like from the water after harvesting,” explains Kempe. Along all scenic corridors in BC the visual landscape is managed by visual quality objectives that limit the amount of visible harvesting allowed. Maurelle Island was restricted by a partial retention objective which limited the visible harvesting to between one to seven per cent, which means “there’s recognition that it’s a visually sensitive landscape for tourism stakeholders and the public.” Consultation was constructive and, in the end, improved the outcome. “When we first started modeling, we worked with the tourism industry to determine key viewpoints along the Okisollo Channel. We had discussions on where their primary kayaks routes were and where they stopped for picnics and camping. Then we incorporated that information into our planning so we would have minimal impact on the viewscapes from those locations.” By both industries working together and communicating concerns, solutions were reached. “There were substantial buffers put along the foreshore, which means you’re leaving more timber behind than we would normally,” said Kempe. “We also incorporated numer-

ous retention patches into the design of the cutblocks so they would blend in with the natural rock terrain features.” But of greater significance was the decision to barge the logs off the Island instead of using a log dump, which eliminated the booming ground construction and logging activity near the water. “In addition to the barging, when the tourism season was at its height in July and August we committed to no log barging during those months.” Kempe goes on to say, “I was very happy with the outcome of this project. The post-harvest viewscape closely matched what we had modeled. Both the licensee and the contactor, Alpine Logging, also did an excellent job of road building, harvesting and tidying up the barge loading area and log storage site. I think this will help us build trust with the tourism sector.” Doug Sladey’s company, Sladey Timber Ltd., has logged Nelson Island for 30 years with little resistance from the community so he struggles to understand the heated controversy over Gambier’s woodlots. Located directly across from Pender Harbour, Nelson Island is

its viewscape and is also home to some high profile cottagers, including some well-known environmentalists. Sladey harvests up to 35,000 or 40,000 cubic metres annually on Nelson Island. In contrast, over five years Gambier’s woodlots combined will harvest a maximum of 30,000 cubic metres. “Heck, I could take that out in a wheelbarrow!” laughs Sladey. “All it’s going to do is improve things on Gambier.” In July, the Minister of Forests, Lands and Natural Resource Operations toured the Discovery Islands with the Minister of State for Tourism and Small Business to view tourism and logging operations. Minister Yamamoto commented, “I was pleased to see the economic contributions of both the tourism and forestry sectors in the area. We do understand that for regional economies to thrive both of these sectors need to successfully co-exist. My staff continues to work with the Ministry of Forests, Lands and Natural Resource Operations to ensure the concerns of all stakeholders are considered.”

Markvoort concurs, emphasizing the importance of not losing sight of these considerations. Harvesting the 85,000 cubic metres on Maurelle Island alone contributed $8.75 million to the provincial and local economies. “Broken down, JWM Forestry paid $3.6 million in stumpage and fee in lieu taxes of $300,000 to the province, $2.85 million went to harvesting and road building costs, $1 million to the marine transportation sector for barging and towing and another $1 million to the sorting operation on the Sunshine Coast.” Yochim reiterates, “If we continue to chip away at the size of our sustainable working forest, BC’s coastal communities and the province will give up real jobs and lose millions of dollars of local revenue that pays for schools and hospitals. I keep saying: It’s not tourism or forestry; it’s tourism and forestry.”

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GOLF TOURNAMENT AND BARN DANCE: GREAT SUCCESS!

This year at the tournament we raised $1,646 for the TLA Forestry Education Fund which included $1,116 raised at the Nootka Sound Timber

shooter bar and $530 raised by MNP at their golf challenge. Finally, thank you to all our generous sponsors. We really appreciate your continued support! Photo: TLA Staff

he TLA annual golf tournament was a resounding success again this year. The sun shone and everyone had a great day. Crown Isle was a gracious and accommodating host. Their staff really got behind the theme and they were very supportive of our new barn dance. As always, TLA members enjoyed the great forestry history Crown Isle displays throughout the venue. This year’s tournament was western themed and lots of people dressed up in costumes. Best costumed or not, everyone had a great time at the dinner and barn dance later that evening. We had real live cow girls branding people as they came in the door and a great DJ kept people dancing until the police arrived! We’ll be back at Crown Isle again next year for our 19th annual members’ tournament. If you weren’t able to get a foursome registered this year, we hope to see you on June 12, 2015.

This year’s tournament winner was SeaSpray Log Scaling Ltd. Left to right: Stewart Wheatley, Phil Getz, Dave McNaught, Darrell Knowles, Wes Schmidt.

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