Nicola -Similkameen Innovative Forestry Society 2011 ... 2011_FP_3.pdf · SBFEP - Ministry of Forests Small Business Forest Enterprise Program : in the Merritt Timber Supply Area

For Submission to Regional Executive Director Ministry of Forests, Lands and Natural Resource Operations Southern Interior Forest Region 441 Columbia Street Kamloops, British Columbia V2C 2T3 Prepared for Innovative Forestry Practices Agreements Merritt Timber Supply Area

The members of the Nicola-Similkameen Innovative Forestry Society Incorporation Number S-39030 www.nsifs.webfactional.com Prepared by: Forsite Consultants Ltd. October 24, 2011

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Nicola-Similkameen Innovative Forestry Society 2011 Forestry Plan

Table of Contents

List of Tables iii

List of Figures............................................................................................... iv

Glossary v

Glossary of Acronyms ................................................................................ vii

Executive Summary...................................................................................... 1

1.0 2005 Forestry Plan Introduction ......................................................... 3 Nicola Similkameen Innovative Forestry Society’s Vision and Strategic Objectives......4 Nicola-Similkameen Innovative Forestry Society............................................................5

2.0 NSIFS Working Relationships............................................................. 9

3.0 Nicola Similkameen Innovative Forestry Society History.............. 11

4.0 IFPA Area of Interest .......................................................................... 13

5.0 IFPA Legislation ................................................................................... 18 5.1 What are Innovative Forestry Practices? ..................................................................18 5.2 Carrying Out Innovative Forest Practices.................................................................20 5.3 Forest Act and IFPAs................................................................................................21

6.0 IFPA Members......................................................................................21 6.1 Commitment to Creating Innovation for the Five IFPAs to a Similar Standard ......21 6.2 Overview of the Merritt IFPA Holders.....................................................................22 6.3 AAC Apportionment.................................................................................................22 6.4 Merritt TSA Timber Processing Facilities................................................................22 6.5 Current Employment.................................................................................................23 6.6 First Nations Employment and Contract Opportunities in the Forest Industry ........23 6.7 NSIFS Members Overview.......................................................................................24

7.0 Funding Source ..................................................................................... 31 7.1 FRBC Contribution...................................................................................................32 7.2 FIA Contribution.......................................................................................................32 7.3 Short-Term Funding Programs .................................................................................32 7.4 Land Based Investment Strategy –Current Government Funding Envelope............32 7.4 Membership Contribution.........................................................................................32

8.0 NSIFS AAC History.............................................................................. 33 8.1 NSIFS 2003 AAC Application Summary.................................................................33

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8.2 NSIFS 2005 MPB Uplift Application Summary ......................................................34 8.3 NSIFS 2007 IFPA Extension Application Summary................................................34

9.0 NSIFS IFPA Conditions ....................................................................... 35 August 2, 2007 IFPA Conditions....................................................................................35

10.0 Merritt TSA Values, Issues and Opportunities ............................... 40 10.1 Opportunities provided by the IFPA agreements....................................................40 10.2 Integrated Resource Management...........................................................................40 10.3 Forest Management.................................................................................................41 10.4 Environmental.........................................................................................................58 10.5 Tourism...................................................................................................................63 10.6 Community .............................................................................................................64 10.7 Cultural Heritage Values and Archaeological Resources.......................................64 10.8 First Nations............................................................................................................65 10.9 Recreation ...............................................................................................................66 10.10 Agriculture/Ranching............................................................................................66 10.11 Ecosystem Management .......................................................................................67 10.12 Botanical Forest Products .....................................................................................68 10.13 Mining...................................................................................................................68 10.14 Summary of Innovative Activities and link to Section 59.1 (6) of the Forest Act.........................................................................................................................................68 10.15 Summary of Other Activities and link to Section 59.1 (6) of the Forest Act .......76 10.16 Upward Pressures on Timber Supply ...................................................................85 10.17 Downward Pressures on Timber Supply...............................................................87

11.0 Workplan and Five Year Schedule ................................................... 90

Appendix 1 – IFPA Section 59.1 of Forest Act........................................... 1

Appendix 2 – Innovative forestry practices regulation............................. 1

Appendix 3 – Merritt TSA Map.................................................................. 1

Appendix 4 - NSIFS Membership and Contact Numbers ........................ 1

Alternate Members ....................................................................................... 2

Appendix 5 – NSIFS Share Agreement ...................................................... 1

Appendix 6 - Merritt Timber Supply Area Rational fo r AAC Determination................................................................................................ 1

Appendix 7 - Rationale for the NSIFS AAC Increase and Determination 1

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Appendix 8 -Forestry Plan References and Information Sources ........... 1

Appendix 9 - Ministry Of Forests Forestry Plan Checklist...................... 1

Appendix 10 – NSIFS 2011 AAC Application............................................ 1

Appendix 11 – NSIFS Forestry Plan II with Appendix 1-12.................... 1

Appendix 12 - NSIFS 2001 AAC Application ............................................ 1

List of Tables

Table 1: Population Profile for the Merritt TSA.

Table 2: AAC Apportionment by Major Licensee

Table 3: Type and location of the major timber processing specifics for each Licensee

Table 4: Average Annual Employment Years based on Period 2006 - 20081

Table 5: History of IFPA Licensee Uplift and First Nations Employment

Table 6: Weyerhaeuser’s Merritt TSA business initiatives and partnerships

Table 7: Aspen Planers’ Merritt TSA business initiatives and partnerships

Table 8: Ardew’s Merritt TSA business initiatives and partnerships

Table 9: Tolko’s Merritt TSA business initiatives and partnerships

Table 10: Stuwix’s Merritt TSA business initiatives and partnerships

Table 11: BCTS Average Annual Billed Harvest (Period 2006 – 2008)

Table 12: BCTS’ Merritt TSA business initiatives and partnerships

Table 13: Allocation of Smallwood Licensees2

Table 14: Non-recoverable losses during the Base Case planning horizon

Table 15: Annual Harvest Volume Merritt TSA IFPA Licensees

1 Employment numbers as of March 31, 2011 2 Source: Ministry of Forest and Range – Apportionment System

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Table 16: Upward Pressure on Timber Supply

Table 17: Downward Pressures on Timber Supply.

Table 18: NSIFS Strategic 5-Year Budget

List of Figures

Figure 1 NSIFS Structure Overview

Figure 2 Distribution of Total TSA Area

Figure 3 Classification of Productive Land base

Figure 4 Merritt Timber Supply Area within the Cascades Forest District

Figure 5 NSIFS Project Funding History 2004 - 2011

Figure 6 TSA current age and species distribution

Figure 7 TSR 4 Base Case Sensitivity Analysis, VRI Projection – VDYP7

Figure 8 Base Case - Harvest volume by stand leading species

Figure 9Area of pine killed by Mountain Pine Beetle in the Merritt TSA up to 1999

Figure 10 History of Mountain Pine Beetle in the Merritt TSA from 1991 to 2004, showing area affected

Figure 11 MOFR models projecting annual Pl volumen killed on the THLB in the Merritt TSA

Figure 12 MOFR models projecting cumulative volume killed on the THLB in the Merritt TSA

Figure 13 MPB Infestation Severity Classes 2001 - 2010

Figure 14 MPB Annual Changes in Total Infestation for Mod – V. High Severity Class

Figure 15 Map of Community Watersheds in the Merritt TSA

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Glossary

AAC – Allowable Annual Cut: The allowable rate of timber harvest from a specified area of land as determined by the Chief Forester BCTS – British Columbia Timber Sales: BCTS originated from the MOFR SBFEP. CWD - Coarse Woody Debris DFAM – Defined Forest Area Management ESA - Environmentally Sensitive Area: is defined during a forest inventory as an area that is sensitive to disturbance and/or is significantly valuable for fisheries, wildlife, water and recreation resources. FRBC - Forest Renewal British Columbia FIA – Forest Investment Account IDF - Interior Douglas fir : a zone of the biogeoclimatic ecosystem classification system IFPA - Innovative Forestry Practices Agreement: Innovative Forestry Practices Agreements are a provincial government initiative designed to test and pilot alternative and new approaches to forest resource management. IWMS - Identified Wildlife Management Strategy LRUP - Local Resource Use Plan LU – Landscape Unit MHA - Minimum Harvestable Age MOE – Ministry of Environment FLNR – Ministry of Forests, Lands and Natural Resource Operations. Formerly part of the Ministry of Forests and Range MSRM - Ministry of Sustainable Resource Management: Formerly part of the Ministry of Environment, Lands and Parks. MWLAP - Ministry of Water, Land and Air Protection: Formerly part of the Ministry of Environment, Lands and Parks.

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NDT4 - Natural Disturbance Type 4: Forested zones that historically have been subject to frequent, low intensity disturbances (i.e. fires). NTHLB - Non-timber Harvesting Landbase: The portion of the landbase that is not considered available for harvest. OAF - Operational Adjustment Factors: The factors applied to projected timber yields generated from computer models to account for losses of timber volumes as a result of pests, diseases, brush competition and other factors. OGMA - Old Growth Management Area: areas which contain, or are managed to replace, specific structural old-growth attributes and which are mapped out and treated as special management areas. PEM - Predictive Ecosystem Mapping: PEM is a method of predicting ecosystem occurrence at a BGC site series level on the landscape given basic inventory information and expert knowledge that includes stratification of a landscape into map units, according to a combination of ecological features, primarily climate, physiographic, surficial material, bedrock geology, soil, and vegetation. . Regional Executive Director MOFR Southern Interior Forest Region: This title and position replaces the MOFR Regional Manager. RIC - Resources Inventory Committee: Represented by the MOFR, MSRM and MWALP and responsible to develop provincial standards for landbase resource inventories in British Columbia. SIBEC - Site Index Biogeoclimatic Ecosystem Classification SBFEP - Ministry of Forests Small Business Forest Enterprise Program: in the Merritt Timber Supply Area. SBFEP has been changed to British Columbia Timber Sales (BCTS). TEM - Terrestrial Ecosystem Mapping: Terrestrial Ecosystem Mapping is the stratification of a landscape into map units according to a combination of ecological features, primarily climate, physiographic, surficial material, bedrock geology, soil, and vegetation. THLB - Timber Harvesting Landbase: The portion of the landbase that is considered available for harvest. TSA - Merritt Timber Supply Area : The Merritt Timber Supply Area contained in the Cascades Forest District within the MOFR Southern Interior Forest Region.

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TSR - Timber Supply Review: This is the process by which the Chief Forester, after considering all ecological, social and economic factors determines the allowable annual cut within the TSA’s. VRI - Vegetation Resource Inventory: Vegetation Resources Inventory is a process for assessing the quantity and quality of BC’s timber and other vegetation resources. When it is operational, the Vegetation Resources Inventory will replace BC’s current forest inventory. WHA - Wildlife Habitat Area WTP - Wildlife Tree Patch

Glossary of Acronyms

AAC Allowable Annual Cut BCTS British Columbia Timber Sales BGC Biogeoclimatic BOD Board of Directors FPC Forest Practices Code FRBC Forest Renewal BC FIA Forest Investment Account IFPA Innovative Forestry Practices Agreement LRMP Land Resource Management Plan LU Landscape Unit MOFR Ministry of Forests and Range MPB Mountain Pine Beetle NSIFS Nicola Similkameen Innovative Forestry Society NTA Nicola Tribal Association OAF Operational Adjustment Factor OGMA Old Growth Management Area OGSI Old Growth Site Index PEM Predictive Ecosystem Mapping PHR Post-Harvest Regenerated PSP Permanent Sample Plot PY Person Years SBFEP Small Business Forest Enterprise Program SFMS Sustainable Forest Management Strategy TSA Timber Supply Area TUS Traditional Use Study UNIB Upper Nicola Indian Band USIB Upper Similkameen Indian Band VRI Vegetative Resource Inventory

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Executive Summary Maximizing harvest to minimize losses resulting from the MPB epidemic during the worst downturn in the softwood lumber market has never made it more challenging for our forest industry than it is today. The time is now to support TSA Community Models that support local communities both during good and bad economic times. What better model can best serve communities interests on forests, environment, social and economical values than one that was designed by the TSA community themselves. The forest industry in now in an era where innovative practices of yesterday, are common practices today. Only through continued innovative approaches can the forest industry meet the demand and challenges for tomorrow. Since 1998, the Merritt IFPA Licensees have been implementing innovative forestry practices to change the way forest resources are managed in the Merritt Timber Supply Area (TSA). Through Innovative Forest Practices Agreement (IFPA), the Province of British Columbia has made it possible to increase long-term investments in the forest resource. The Jobs and Timber Accord3 stated, “the government will enter into innovative forest practices agreements to test new and innovative forestry practices.“ The IFPAs make it possible for industry to practice eligible innovative forest management in return for corresponding gains in AAC as outlined in Section 59.1 (7) of the Forest and Range Practices Act. In March 1998, the five major licensees4 in the Merritt Timber Supply Area (TSA) signed Innovative Forestry Practices Agreements (IFPAs) with the Ministry of Forests and Range (MOFR) based on the licensees July 31, 1997 proposal. These agreements provided the licensees a unique opportunity to practice innovative sustainable forest management in return for long-term corresponding gains in the Annual Allowable Cut (AAC) in the Merritt TSA. The five Licensees, in co-operation with the Nicola Tribal Association (NTA), the Upper Similkameen Indian Band (USIB), and the Merritt Small Business Forest Enterprise Program (SBFEP)5 formed the Nicola-Similkameen Innovative Forestry Society (NSIFS) to collectively implement and manage conditions of all five IFPAs. In October 2001, a new Forest License FLA65006 sixth IFPA was issued to the First Nations community. Today, Merritt TSA First Nations participate in the sharing of AAC increases and have successfully established themselves as a respected Forest Industry partner, Stuwix Resources Joint Venture. Stuwix is an integral part of the NSIFS, and embodies the NSIFS’ vision of co-management and sharing of forest resources with First Nations. The NSIFS has set a precedent at the TSA level for co-operation and long-term perspective on forest management planning with Licensee, agency and First Nations. At the same time, the NSIFS has established a Technical Advisory Committee made up of NSIFS member

3 Forest Jobs for BC – Jobs and Timber Accord: http://www.for.gov.bc.ca/pab/jobs/accord/accord.htm, May 15, 1998. 4 These include Ardew Wood Ltd., Aspen Planers Ltd., Riverside Forest Products Ltd., Tolko Industries Ltd., and Weyerhaeuser Company Ltd. 5 SBFEP has recently become BC Timber Sales

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representatives to identify and implement innovative project methods that support co-management of the forest resources. The NSIFS members are working together to create productive, grassroots partnerships within the communities to lead to locally designed solutions. The NSIFS is adapting new tools that allow the integration of a full range of local forest values into the initial stages of forest planning. A Share Agreement, dated April 2, 2001, represents the efforts of the NSIFS Board of Directors (BOD) to define working relationships amongst the NSIFS members. Key points include consensus decision-making and the ongoing development of a proposal to the Ministry of Forests Kamloops Regional Manager for sharing any future increases in the AAC, along with a commitment to integrate non-timber and First Nations land use interests into sustainable strategic and stand level planning. Forestry Plan I, approved by the Regional Manager in his letter of January 12, 2001, outlined these points and the innovative practices the NSIFS proposed to undertake to fulfill their IFPA obligations and apply for an AAC increase. In the spring of 2003, information from five years of innovative forestry practices was assembled in an uplift application to the MOFR. As of January 01, 2004, the Southern Interior Forest Regional Executive Director6 completed his determination on the NSIFS Forestry Plan I amendment for an AAC application and subsequently awarded an uplift of 330,700 m3 per year to the NSIFS partners. This increase was assigned to the IFPA-holders and was subject to a number of conditions to support sustainable forest practices in the Merritt TSA. The NSIFS is committed to work with the Ministry of Forests, Lands, and Natural Resource Operations (formerly MOFR) to ensure long-term sustainability of the existing AAC uplift and future AAC uplifts to IFPA holders in the Merritt TSA. Forestry Plan III outlines the NSIFS commitments to develop innovative new conditions and recommendations leading to opportunities in the Merritt TSA. The Strategic Objectives for Forestry Plan III are:

1. Create an innovative forest management environment;

2. Support First Nation’s communities;

3. Increase the sustainable harvest;

4. Enhance environmental values;

5. Strengthen forest inventories and support tools; and

6. Maintain effective community involvement.

The NSIFS continues to work on new tools that allow it to integrate a full range of local forest values into the initial stages of forest planning. These values include;

• biodiversity, • wildlife habitat, • water quality, • fish habitat,

6 FLNR Southern Interior Forest Region is an amalgamation of Kamloops, Nelson and Cariboo Forest Regions

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• First Nations traditional uses, • timber supply analysis; and • spatial modeling with Predictive Ecosystem Mapping tools.

This approach to innovative planning will lead to healthier, more productive working forests and will benefit all who depend upon them.

1.0 2005 Forestry Plan Introduction

Forestry Plan III amendment follows the previous plans and decisions: • Forestry Plan II, in response to the January 1, 2004, Chief Forester’s Uplift

Determination; and • Forestry Plan I amendment in support of the NSIFS Uplift Application to the Chief

Forester, December 31, 2001. The main purpose of Forestry Plan III is to outline the ongoing work in support of the uplift and identify the program areas the NSIFS will continue to work on. Since Forestry Plan I and II, the forest sector has undergone:

• significant policy and tenure change;

• significant shift to salvage harvesting in response to the MPB;

• significant reduction in government funded programs; and

• significant downturn in the softwood lumber market.

These have influenced the changes incorporated into Forestry Plan III.

Forestry Plan III outlines the strategic objectives to meet the NSIFS vision and provides the NSIFS history and plans related to the:

1. Nicola-Similkameen Innovative Forestry Society (NSIFS);

2. Innovative Forest Practices Agreement (IFPA) Area of Interest;

3. IFPA Legislation;

4. IFPA Members;

5. Funding Source;

6. NSIFS AAC History;

7. NSIFS IFPA Conditions;

8. Merritt TSA values, issues and opportunities related to each value; and

9. NSIFS preliminary five-year work plan to meet the strategic objectives

During the term of Forestry Plan III, new information will be collected, analysis completed and recommendations developed to address the new and innovative strategies developed. Forestry Plan III will outline opportunities for new and updated AAC analysis leading to strategic and stand level changes to achieve the IFPA and NSIFS objectives.

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Forestry Plan III will include a request for an increase in the AAC and provide further direction for innovative activities that supports such an increase. A new NSIFS AAC application with supporting timber supply analysis is included in Appendix 10. Furthermore, Forestry Plan III is intended to support the NSIFS uplift and IFPA extension application. As part of the NSISF uplift request, the NSIFS Board of Directors request an opportunity to permanently allocate any AAC increase decision among renewable forest licenses of the five IFPA Licensees.

Nicola Similkameen Innovative Forestry Society’s Vision and Strategic Objectives

The Nicola Similkameen Innovative Forestry Society is comprised of eight members, five of which hold Innovative Forest Practices Agreements (IFPAs) and carry out the requirements of those agreements through the consensus of the Society.

Vision The Society developed the following vision in order to achieve their strategic objectives. NSIFS uses innovative forest management practices that incorporate Aboriginal knowledge and values and public involvement in order to increase the productivity of a healthy and resilient working forest. These local forests provide increased forest values, additional investment and enhanced employment opportunities while assuring environmental, economic, and social sustainability for communities in the Nicola-Similkameen region.

Strategic Objectives Based on the key issues and opportunities identified, the NSIFS Board of Directors has adopted six key strategic objectives. The objectives strongly reflect the NSIFS’s vision of the future for the Merritt TSA, and will continue to guide the development of annual business planning priorities for program investments. These updated objectives were approved by the Board of Directors (BOD) on June 23, 2003 and are: 1. Create an innovative forest management environment

1.1. Create an effective administrative structure that optimizes the benefits of investments.

1.2. Include First Nations in the management decision-making process. 1.3. Maintain a Technical Advisory Committee to support project initiatives. 1.4. Manage timber and non-timber values in an integrated manner. 1.5. Create an environment for creative technical innovation. 1.6. Create a central resource database that is available to all resource users. 1.7. Identify opportunities to improve administrative efficiencies in forest management in

the TSA. 1.8. Identify suitable funding models to support NSIFS initiatives.

2. Support First Nation’s communities

2.1. Ensure First Nation’s role in the management of the NSIFS. 2.2. Incorporate First Nation’s values in the management of the IFPAs.

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2.3. Increase forest sector business opportunities for First Nations. 3. Increase the sustainable harvest

3.1. Develop a sustainable forest management plan that supports the long-term security of the Merritt TSA core AAC uplift.

3.2. Increase the volume, value, and health of second growth forests. 3.3. Set forest management goals supported by timber supply analysis and sound

scientific principles. 3.4. Increase the amount of land available for commercial timber production. 3.5. Support more informed silviculture investment decisions incorporating

environmental and First Nation’s values. 3.6. Maximize access to forest resources under threat from forest pest and disease.

4. Enhance environmental values

4.1. Promote environmental stewardship. 4.2. Use ecological planning tools. 4.3. Develop and support integrated environmental programs that include:

4.3.1. Help manage timber; 4.3.2. Help manage biodiversity; 4.3.3. Identify, protect, and manage important wildlife areas; 4.3.4. Identify and protect water quality and fish habitat; and 4.3.5. Incorporate First Nation’s Traditional Ecological Knowledge.

5. Strengthen forest inventories and support tools

5.1. In co-operation with agencies, develop reliable timber and non-timber inventories. 5.2. Support the development of strategic resource planning and decision-making

information and tools. 5.3. Promote the society’s information model to future land use processes.

6. Maintain effective community involvement

6.1. Maintain an effective communications plan. 6.2. Maintain a Local Public Stakeholders Advisory committee. 6.3. Increase public understanding of the Society’s IFPAs forest practices.

The NSIFS believes that by developing implementation strategies to achieve the above strategic objectives, the NSIFS will meet the requirements and opportunities of the Innovative Forest Practices Agreements (IFPA).

Nicola-Similkameen Innovative Forestry Society

Society Membership The groups and individuals that constitute the Society in order to manage and implement the IFPAs are as follows:

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1. Board of Directors (BOD)

2. Chief Executive Officer (CEO) and Director of Operations

3. NSIFS Technical Advisory Committee

4. Merritt TSA First Nation Communities

5. Merritt TSA Stakeholders

Figure 1 NSIFS Structure Overview

CONTRACTORS AND CONSULTANTS

MERRITT TSA IFPA HOLDERS

Weyerhaeuser Company

Tolko Industries

Aspen Planers

Stuwix Resources

Ardew Wood Products

NSIFS MEMBERSHIP


Tolko Industries

Aspen Planers

Stuwix Resources

Ardew Wood Products

BC Timber Sales

Upper Similkameen Band

Nicola Tribal Association

NSIFS TECHNICAL ADVISORY COMMITTEE


Tolko Industries

Aspen Planers

Stuwix Resources

Ardew Wood Products

BC Timber Sales



Ministry of Forests, Lands, and Natural Resource Operations, Cascades Forest District

Ministry of Environment

NSIFS CHIEF EXECUTIVE OFFICER

FIRST NATION COMMUNITIES

MERRITT TSA STAKEHOLDERS

NSIFS BOARD OF DIRECTORS


Tolko Industries

Aspen Planers

Stuwix Resources

Ardew Wood Products

BC Timber Sales



NSIFS DIRECTOR OF OPERATIONS

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A brief description of these groups and their key functions are contained in the following sections.

1. Board of Directors The Board of Directors (BOD) has one representative and one alternative for each member of the Society. The BOD’s purpose, on behalf of the members, is to provide overall management direction and oversight to ensure the NSIFS effectively implements Forestry Plan III. The BOD support the development of innovative forest practices to increase the productivity of a healthy and resilient working forest within the Merritt TSA and avoid unacceptable actions and situations. The BOD’s responsibilities are outlined under a BOD Governance Policies, which includes the following:

1.1. Approval of the annual operating plan;

1.2. Establishment of spending and contract award limits;

1.3. Hiring/appointing of IFPA manager (CEO);

1.4. Setting of political policy and direction;

1.5. Approval of annual workplans; and

1.6. Consensus decision-making.

2. Chief Executive Officer (CEO) The Society’s CEO is responsible for the overall administrative and financial aspects of the NSIFS, while the Director of Operations looks after the implementation of NSIFS programs. The CEO:

2.1. Reports directly to the Board of Directors;

2.2. Is responsible for translating the direction of the Board of Directors to the appropriate members of the IFPA;

2.3. Manages technical provincial initiatives such as legislation and Provincial funding;

2.4. Manages and administers the NSIFS, including the financials and funding;

2.5. Reports to the Board of Directors on the progress of the IFPA;

2.6. At all times is aware of the progress of the technical programs of the IFPA and ensures that they meet Society objectives and schedules;

2.7. Solicits the Request for Proposals for IFPA projects and awards the contracts to the most qualified organization. This is be done in conjunction with the Director of Operations;

2.8. Is responsible for producing progress reports. These reports detail all on-going projects that are associated with the IFPA. Each consultant working on the IFPA will be requested to submit a monthly work summary to the CEO for inclusion in the monthly report; and

2.9. Ensures all contract administration is completed to limitations policies and standards with agencies and liaises with the First Nations Bands.

3. Director of Operations

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The Society’s Director of Operations is responsible for project development and implementation. The Director of Operations:

3.1. Ensures that contracts are in place for all consultants working for the NSIFS;

3.2. Ensures payment for services to the consultants;

3.3. Supervises the consultants and mediates any disputes between consultants and the NSIFS;

3.4. Ensures that all appropriate standards are in place prior to the start of any work on NSIFS projects;

3.5. Develops project recommendations that will be submitted to the Society for evaluation;

3.6. Ensures that all First Nations concerns are brought to the Society and considered in the NSIFS planning;

3.7. Aids the CEO in soliciting the Request for Proposals and awarding the contracts to the most qualified organization;

3.8. Is responsible for providing quarterly updates to the CEO; and

3.9. Understands the roles and responsibilities of the CEO and be capable to act on behalf of the CEO in their absence.

4. NSIFS Technical Advisory Committee The Technical Advisory Committee (TAC):

4.1. Has representation from each member of the Society along with representation from Ministry of Environment, Ministry of Forests, Lands and Natural Resource Operations and non NSIFS First Nation communities; and

4.2. Provides technical expertise to focus NSIFS’ annual workplan and for implementation support for NSIFS projects.

5. Communication Strategy The NSIFS continues to look at ways of improving communications with stakeholders and Firs Nation communities. Currently communications is focused through the NSIFS Technical Advisory Committee inclusive of First Nations, licensees, BC Timber Sales, and government representatives. Each of the representatives are provided opportunities for input into NSIFS projects, strategic planning, standards, policies guidelines and share information from TAC meetings with members of their communities or organizations. NSIFS is looking at possibilities of expanding their TAC to include additional representatives from key local stakeholder groups. In addition, looking at ways of working closer with First Nation representatives, perhaps through a sub-committee, to have First Nation Elder’s participation, review and input on particular NSIFS projects, management recommendations and strategies.

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2.0 NSIFS Working Relationships

Identity statement

The NSIFS brings together TSA Forest Licensees7, Nicola Tribal Association (NTA), Upper Similkameen Indian Band (USIB) and British Columbia Timber Sales (BCTS) in an effort to co-manage the forest resources of the Merritt Timber Supply Area. The NSIFS sees the implementation of the IFPAs as a process that complements the mandates of existing line agencies and incorporates licensee and First Nations mutual interests. Both line agencies, the Ministry of Forests, Lands and Natural Resource Operations (FLNR) and the Ministry of Environment (MOE) currently participate on the TAC.

1. Ministry of Forests, Lands, and Natural Resource Operations, Ministry of Environment and the Land Based Investment Strategy As the IFPAs’ implementation proceeds, the IFPA Handbook8 establishes specific performance goals for the line agencies that act as a system of measurement in the successful direction and application of IFPA activities. These include: In determining an AAC increase, the MOFR Regional Executive Director is responsible for9:

1.1. Considering IFPA holder’s activities;

1.2. Reviewing IFPA holder’s timber supply analysis (or conducting the analysis)

1.3. Granting the AAC increase, if any;

1.4. Imposing any limitation or conditions associated with the AAC increase; and

1.5. Where required under the IFPA, providing the IFPA holder with a rationale for the results of the determination.

The Ministry of Environment will measure contributions of the IFPA based on:

1.6. The measurable results of activities carried out in accordance with the approved Forestry Plan designed to enhance and protect non-timber values.

1.7. Achieving the requirements of the Environmental Management Act.

In addition to the success factors noted above, the NSIFS will strive to work with the FLNR in meeting their service performance measures by:

1.8. Providing best returns from investments and activities on the forest and range land base.

7 Forest Licensees refers to Merritt TSA renewable Forest Licensees with Innovative Forest Practices Agreements within the TSA. 8 Ministry of Forests - Innovative Forestry Practices Agreements Handbook (April, 2000). 9 Ministry of Forests – Innovative Forestry Practices Agreement Handbook pg 14

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1.9. Encouraging investments to benefit forest and range resources.

1.10. Managing impacts on forest and range resources from pests, disease, and wildfire.

1.11. Mitigating mid-term timber supply shortfalls.

1.12. Maximizing timber growth in the provincial forests.

2. Licensees Expectations

The overall expectations of the five IFPA holder licensees are to continue to develop, maintain, and foster long-term, mutually beneficial, social and economic relationships within the Merritt TSA and to explore cost-effective innovative solutions for forest stewardship. The NSIFS itself does not have forest tenure obligations; therefore, the Forest Licensees are looking to the NSIFS to develop innovative approaches and recommendations to help address forest stewardship issues and opportunities within the TSA.

3. First Nations Expectations

Ongoing discussions and legal action between Government, NSIFS Licensees and First Nations will undoubtedly have an impact on future resource management and land claim issues, however, in the short term, the BOD have agreed to ensure all discussions and information sharing will be maintained in an atmosphere of mutual respect and focused at making the NSIFS a success. First Nations view provincial initiatives to increase investment in the forest resource and increases to the AAC as a non-confrontational opportunity to gain access to the forest sector leading to new co-management opportunities within the forest industry. The overall objectives of First Nation communities are:

3.1. To work within the NSIFS to develop new co-management opportunities with Forest Licensees and BCTS that supports a sustainable forest economy for First Nation communities.

3.2. To ensure forest development protects and respects First Nations’ heritage, traditional practices, and culture.

3.3. To support existing employment and tenure opportunities in the Merritt TSA.

3.4. To work towards building a process that supports more direct involvement in the management and control of natural resources (i.e. forests and the environment within traditional territories of both the 7 Nlaka’pamux Nation bands and the 2 TSA bands with the Okanagan Nation).

3.5. To continue to work with the NSIFS to identify and develop long-term meaningful employment and training opportunities for their communities with the IFPA Forest Licensees.

3.6. To contribute to the development of a stable economy within traditional territories and to be part of the continuing development of the forest industry.

4. British Columbia Timber Sales (BCTS) Expectations

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BCTS plays a special role in the Merritt IFPA with their willingness to participate in NSIFS programs and with the fact that they currently cannot benefit from IFPA AAC gains under current legislation. BCTS is a legal member of the NSIFS within the statutory limitations of the BC Not for Profit Society Act. BCTS contributes funding to the NSIFS to support mutually agreed upon projects and activities that support the Forestry Plan. The overall expectations of BCTS are:

4.1. To continue to work with the NSIFS to develop opportunities to share the AAC increases under the terms of the NSIFS share agreement10.

4.2. To support NSIFS activities that lead to better forest stewardship on the land base and have access to information developed by the NSIFS.

3.0 Nicola Similkameen Innovative Forestry Society History

Fore several years, increased constraints and social issues have led to downward pressures on timber supply throughout B.C. However, unlike other areas in the Province, Merritt maintains a relatively stable timber supply. Even with this favored wood supply, unemployment remains a major concern within the TSA, resulting in future industry and re-investment concerns. Through Innovative Forest Practices Agreement projects, the Province of British Columbia has made it possible to increase long-term investments in the forest resource. The Jobs and Timber Accord11 stated that “the government will enter into innovative forest practices agreements to test new and innovative forestry practices.“ The Innovative Forestry Practices Agreements (IFPAs) make it possible for industry to practice eligible innovative forest management in return for corresponding gains in AAC as outlined in Section 59.1 (7) of the Forest and Range Practices Act. Weyerhaeuser Company Ltd., Tolko Industries Ltd., Aspen Planers Ltd., Ardew Wood Products Ltd. and Riverside Forest Products Ltd., NTA12, USIB, and the Merritt Forest District Small Business Forest Enterprise Program (SBFEP) presented a written proposal to the Forest Minister on July 31, 1997, setting out the innovative forestry practices which were proposed to be carried out in the Merritt Timber Supply Area13. With changes to the Ministry of Forest SBFEP, the Society has since removed the MOFR SBFEP and replaced it with British Columbia Timber Sales (BCTS). The five major Licensees each signed an IFPA14 on March 25, 1998 with the Minister of Forests. In order to facilitate the implementation of the IFPAs, the five licensees, the NTA, the USIB, and the Merritt SBFEP formed the Nicola Similkameen Innovative Forestry

10 NSIFS Share Agreement Appendix 5. 11 Forest Jobs for BC – Jobs and Timber Accord: http://www.for.gov.bc.ca/pab/jobs/accord/accord.htm, May 15, 1998. 12 The Nicola Tribal Association consists of the Lower Nicola Band, Upper Nicola Indian Band, Nooaitch Band, Shackan Band, Siska Band, Cooks’ Ferry Band and the Coldwater Band. 13 Appendix 3 Map Merritt TSA. 14 As defined under 59.1 of the Forest and Range Practices Act.

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Society (NSIFS or Society). The Society was incorporated under the BC Societies Act15 on November 9, 1998 and has a constitution that provides the legal framework for its operation. Over the last two years, efforts to support a new Forest License FLA65006 and obtain a sixth IFPA issued to the First Nations community have proven successful. This action allows First Nations to participate in the sharing of AAC increases and other benefits in the Merritt TSA. The sixth IFPA issued to Stuwix Resources Ltd. was signed on December 1, 2001 with the Minister of Forests and innovative practices with this IFPA are facilitated through the NSIFS. Note in 2005, Riverside Forest Products was purchased by Tolko Industries Ltd. reducing the number of IFPA holders from six to five. The IFPAs are for a term of 10 years and require the submission of a Forestry Plan once every five years (or more frequently if the Regional Executive Director deems it necessary). In January 2007, the Ministry of Forests and Range authorized the regional managers to accept applications to extend agreements to August 31, 2011. This subsequently enabled the IFPA recipients extend their annual allowable cut increases. On May 8, 2007 the NSIFS submitted an application to extend the current level of allowable annual cut increase of 830, 700 cubic metres to August 31, 2011. On July 31, 2007 the Ministry of Forests and Range authorized the extension16. The Society works to develop a new level of cooperation between licensees, the various government agencies and First Nations, which results in the successful implementation of the Merritt IFPAs’ objectives. The Society is responsible for ensuring all innovative approaches to manage the area’s forests will be examined and appropriate forest management regimes will be selected. The NSIFS acts on behalf of the five Licensees with IFPAs and incorporates nine Indian Bands and BCTS in consensus decision-making. To oversee all the NSIFS activities, a Board of Directors has been established with a representative from each of the five Licensees, BCTS, the NTA, and the USIB. The BOD’s “intent is to assure all partners of the NSIFS obtain a fair share of the resulting AAC increase and other benefits. A key focus of the NSIFS is to work to develop a new level of cooperation between licensees, First Nations and the various government agencies. To do this the NSIFS supports the following principles:

1. All five IFPA agreements are managed together through the NSIFS, effectively ensuring the Crown portion of the Merritt TSA is managed as one IFPA.

2. There is full participation of First Nations in the management and decision-making of the NSIFS and IFPAs through the Society membership.

3. The Licensees with IFPAs are committed to supporting the principle of equitable sharing and distribution of opportunities amongst the members of the NSIFS.

15 Incorporation Number S-39030. 16 Merritt IFPA Increase Rationale (August 2007) http://www.for.gov.bc.ca/rSi/IFPA/Merritt_2007.pdf

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All members of the Society recognize the need for full participation of First Nations in the management and decision-making of the forests. The BODs have First Nations representation and have implemented a policy for full quorum on all decisions relating to society business. The NSIFS prepared Forestry Plan I and amendments, along with the Forestry Plan II and III for MOFR Regional Executive Director approval to support a co-ordinated implementation of a wide scope of innovative projects. These projects ranged from updating inventory and growth and yield information to mapping wildlife habitat suitability and First Nations’ resource values. The Society has been commended for the scope of its projects. Forestry Plan I was submitted by the NSIFS on July 14, 2000 and was approved by the MOFR Regional Executive Director with conditions on January 12, 2001. On December 31, 2001 the NSIFS applied to the Regional Executive Director for an AAC increase as allowed under section 59.1 of the Forest Act. Following the review of the increase application, the process was postponed until supplementary information was received. On April 30, 2003, supplementary information was received and the process recommenced. During the review of the application, at the request of government staff, the NSIFS provided further supporting information that lead to a significant increase in the Merritt AAC17. The AAC increase is subject to a number of conditions and recommendations set by the MOFR statutory decision maker in his July 2003 AAC determination. Forestry Plan I expired on September 30, 2004, Forestry Plan II was submitted on August 24, 2005 and Approved by the Regional Manager on February 24, 2006. Forestry Plan II expires on August 31, 2011 and will pave the way for development and submission of Forestry Plan III.

4.0 IFPA Area of Interest

The IFPAs’ areas comprise approximately 1,129,08618 hectares of land whose geographic boundaries correspond to the same area of the Merritt TSA (figure 4). The TSA extends from the USA border in the south to beyond Nicola Lake in the north and borders the Fraser and Lillooet TSA’s to the west, the Kamloops TSA to the north and the Okanagan TSA to the east19. The Merritt TSA includes the mountainous terrain and steep river valleys of the Cascade Mountains in the west and the relatively dry Thompson Plateau in the east. Administratively, the IFPA area is located in the Cascades Forest District within the Southern Interior Forest Region. The Merritt TSA is administered by the Cascades Forest District in Merritt, with a field services office in Princeton. BCTS operations are administered and managed out of Kamloops with support staff and resources located out of the Cascades Forest District Office.

17 MoF AAC Determination Appendix 7. Determination is available on Cascades Forest District Website. 18 Merritt TSA, TSR 4 Timber Supply Analysis Report, April 2010. Forsite Consultants Ltd. for the NSIFS http://www.for.gov.bc.ca/hts/tsa/tsa18/tsr2009/Merritt_TSR4_Analysis_Report.pdf 19 Figure 4 - Map of Merritt TSA Cascades Forest District Website 2003.

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The major population centers are Merritt and Princeton, where approximately 60% of the TSA’s population resides. Other smaller communities include Upper Nicola Indian Band, Lower Nicola Indian Band, Shackan Indian Band, Coldwater Indian Band, Nooaitch Indian Band, Lower Similkameen Indian Band, Hedley, Tulameen, Brookmere, Missezula Lake, Douglas Lake, Lower Nicola, Osprey Lake, Aspen Grove, Quilchena, Allison Lake and on the west side of the TSA, Cooks Ferry Indian Band and Spences Bridge. Within the IFPA boundaries are the operating areas of the five IFPA holders, the BCTS Program, and nine companies holding non-replaceable forest licenses operating in Smallwood Lodgepole Pine stands, up from five in 2004. Almost 71% of the TSA is considered productive Crown forest land (803,558 hectares). Currently, 78 percent of the productive forest is considered available for timber harvest and this represents 55 percent of the TSA land. Excluded areas make up about 16% of the Productive Land Base and consist of: 20

• Parks and protected areas, 10,915 ha • Terrain and ESAs, 46,521 ha • Inoperable, 24,392 ha • Problem Forest Types / Non-merchantable, 20,729 ha • Archaeological / Cultural Values, 535 ha • Riparian reserves, 19,851 ha • Heritage trails, 115 ha • Water intakes, 3 ha • Wildlife Tree Patches, 9,727 ha • Old Growth Management Areas, 45,692 ha

Approximately 44% of the available harvesting land base has special management requirements for wildlife habitat, community watersheds and visual quality. While the NSIFS’s mandate excludes many of these areas, inventory activities or strategic planning will generally include them. The land base description used to support Forestry Plan III was derived from the TSR 4 Analysis (Forsite, 2010) and the Merritt TSR 4 Data Package (Timberline, 2009). The land base data consisted of crown forested land base (CFLB) and timber harvest land base (THLB) data. The land base data along with forest inventory, management practices, and forest dynamics was used to develop both aspatial and spatial benchmark analysis. Additional description of netdowns regarding the THLB data can be found in the Merritt TSR 4 Data Package (Timberline, 2009). In preparation of the TSR 4 Analysis, NSIFS Innovative land base data and practices were integrated with the analysis. The following sections summarize the main characteristics of the NSIFS Innovative land base description as part of the TSR 4 Analysis Report.

20 Merritt TSA, TSR 4 Timber Supply Analysis Report, April 2010. Forsite Consultants Ltd. for the NSIFS http://www.for.gov.bc.ca/hts/tsa/tsa18/tsr2009/Merritt_TSR4_Analysis_Report.pdf

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Land Base Classification The NSIFS has classified the Merritt TSA crown forest land base into one of the following four broad categories:

1. Unproductive areas for forest management purposes;

2. Inoperable areas, either currently or in the future, under the assumptions of the analysis;

3. Areas unavailable for harvest for other reasons than above (e.g. wildlife habitat or preservation of visual quality); or

4. Areas available for integrated use (including harvesting).

The classification of the Merritt TSA land base is summarized in the following figures. Figure 2 illustrates the distribution of the total TSA area between productive and non-productive or non-forested areas.

Figure 2 Distribution of Total TSA

Merritt TSA (1,129,086 ha)

Parks, Ecological Reserves

1%

Non-Productive, Non-Forest, Non-

Commercial, 10%

Non-Crown 19%

Productive (excluding parks

eco. reserves) 70%

October 24, 2011 16


Figure 3 Classification of Productive Land Base

Figure 4 Merritt Timber Supply Area within the Cascades Forest District

Merritt TSA Productive Land Base(625,080 ha)

Parks and protected areas (1%)

Archaeological / cultural (0%)

Inoperable (3%) PFT / Non-

Merchantable (3%)

WTP reserves (1%)

Biodiversity: OGMA (6%)

Water intakes (0%)

Heritage trails (0%)

Riparian reserves (2%)

Terrain and ESAs (6%)

Current Timber Harvesting Land

Base (78%)

October 24, 2011 17


Merritt TSA Communities The Merritt TSA contains two incorporated communities, City of Merritt and the Township of Princeton, as well as many small unincorporated communities:

• Tulameen • Brookmere • Missezula Lake • East Gate • Douglas Lake • Lower Nicola • Spences Bridge • Allison Lake

• Keremeos • Cawston • Olalla • Granite City • Coalmont • Blakeburn • Hedley

Merritt is located at the confluence of the Nicola and Coldwater rivers, and where Highways 5, 8, 5A and 97C meet. The area has a resource-based economy with forestry, mining, and agriculture comprising the leading sources of employment and income. Princeton is located in the Similkameen Valley at the juncture of the Tulameen and Similkameen Rivers, and at the intersection of Highways 3 and 5A. Princeton’s economy largely depends on mining, forestry, and agriculture.

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Logan Lake in the Highland Valley area is just outside the Merritt TSA, but provides an employment base to Merritt TSA communities through its copper mining activities. Many of the smaller TSA communities are rich in history and home to past prospectors in search of gold, copper and coal. Table 1 Population Profile for the Merritt TSA21

Areas 2009 Population

2005 Population

2000 Population

change ’09 over ‘05

change’09 over ‘00

City of Merritt 7 450 7 327 7 461 1.7 -0.1

Merritt rural-residential 4 268 3 946 3 912 8.2 9.1

Merritt Local Health Area 11 718 11 273 11 373 3.9 3.0

Town of Princeton 2 757 2 661 2715 3.6 1.5

Princeton rural-residential 2 302 2 225 2 012 3.5 14.4

Princeton Local Health Area 5 059 4 886 4 727 3.5 7.0

Merritt TSA22 16 777 16 159 16 100 3.8 4.2

BC 4 455 207 4 196 788 4 039 230 6.2 10.3

Source: BC Stats

5.0 IFPA Legislation

5.1 What are Innovative Forestry Practices?

The IFPA Regulations and Guidebook23 provides direction on the types of activities that may be considered as innovative forestry practices that subsequently may be eligible for Land Based Investment funding. The NSIFS has reviewed this concept of defining innovative in considerable detail, and although this document provides a good starting point in describing innovative forestry practices, the NSIFS believes that a number of rather simple, yet challenging, considerations will define innovation for the Merritt TSA. These range from the very large global approach, to the very technical aspects of our innovative programs. At a global perspective, new innovation conducted by the Merritt IFPAs through the NSIFS, provide the opportunity for BC to exhibit new opportunities in forest estate planning that demonstrate how First Nations communities are involved as key players in the management of the forest resources. The technical aspects include TSA-wide Predictive Ecosystem Mapping (PEM), new site productivity estimates linked to PEM polygons, new fisheries, plant and wildlife ecological

21 Table Data from “Social Economic Assessment”, TSR 4, (Forsite Consultants, 2010) 22 Figures were based on Merritt Local Health Area (LHA) and Princeton LHA providing closes match to the Merritt TSA Boundary 23 Ministry of Forests - Innovative Forestry Practices Agreements Guidebook (April 15, 1998).

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spatial models tied to PEM polygons and the integration of Traditional Use and Cultural information into models for strategic and stand level planning. At a provincial level, the NSIFS’s degree of co-operation and long-term perspective on forest management planning will set a new standard for Licensee, agency, and First Nations co-operation to resolve forest management issues in the TSA and strengthen the long-term outlook for all the communities. The ongoing efforts of the BOD to develop a fiber share formula24 between existing Licensees, First Nations and BCTS is an excellent example of this new co-operation. The Society has examined a number of issues and opportunities in the Merritt TSA and without limiting future innovation, the Society considers the following innovative approaches:

1. A society, whose members represent a wide variety of perspectives, work as the NSIFS to develop innovative opportunities for all five IFPAs jointly. Innovative projects undertaken by the NSIFS are developed in a consensus format to ensure each project reflects the interests of all NSIFS members.

2. To develop a complimentary role of our forest management programs with FLNR that lead to innovative changes in the TSA.

3. Co-operation with MOE programs at all levels ensures good communications, cost-effectiveness, and better forest management to promote innovative approaches incorporating non-timber interests with updated forest inventories to support sustainable forest planning and analysis.

4. To work toward establishment of innovative management goals, that reflects the TSA.

5. To develop innovative programs that support integrated land based planning of new ecological and First Nation Cultural information in support of opportunities related to spatial and aspatial analysis within the TSA.

6. To develop programs using the best information we have today, knowing we have the funding and programs in place to confirm the information to achieve specific future forest management objectives.

7. To continue to work with the public in the Merritt TSA utilizing the various partner’s experience, with new ideas to reflect the local issues and situations.

At the same time, on a more technical level, the NSIFS believes that innovation is defined by utilizing cost-effective methodologies to collect the information necessary for good forest management decisions and to address the issues and opportunities that are further identified in Section 10 of this document. These include, amongst others:

1. Utilizing Predictive Ecosystem Mapping (PEM) to develop an efficient approach to ecological mapping for the TSA that will be used to integrate growth & yield, inventory, wildlife, biodiversity, silviculture, and First Nation’s information.

2. Developing a cost-effective integrated sampling and monitoring program to collect new and update existing information for Mountain Pine Beetle spread, wildlife and plant

24 Appendix 5 NSIFS Share Agreement –share agreement developed by NSIFS.

October 24, 2011 20


modeling for biodiversity netdown estimates, silviculture practices and the development of updated Manage Stand Yield Estimates and updating VRI and growth & yield information.

3. Developing and supporting existing spatially-based timber supply analysis scenarios to explore alternative forest management programs to address the key issues in the TSA.

Ultimately, innovative forestry practices will result in recommendations for change at the field/ operational level. These recommendations will include activities that enhance forest productivity, and ensure environmental stewardship goals and Forestry Plan objectives are obtained. These recommendations will consider:

1. Incorporating new cultural and ecological information to develop spatial distribution of values in the TSA.

2. Developing changes to harvest plans to reflect new information for TSA planning processes that support spatial distribution of values for sustainable harvesting scenarios within the TSA.

3. Developing innovative changes to silviculture practices to support development of updated information related to free to grow and site index adjustments.

4. Developing non-timber and timber related innovative practices to improve forest management practices that promote sustainable access to the THLB.

Lastly, at the community level, innovation will include but not be limited to:

1. Ensuring meaningful public input and through public information programs, IFPA reports, and open houses. Although this does not support AAC levels, the NSIFS believes public input is critical to implementation of innovative practices in the TSA.

2. Developing innovative sustainable forest management practices and plans that consider local issues and opportunities with a focus of addressing the needs of the communities.

3. Work with government agencies to develop higher level strategic planning for the TSA.

5.2 Carrying Out Innovative Forest Practices

Section 59.1 (5) of the Forest Act requires “a person may only carry out an innovative forestry practice or other activity referred to in subsection (1) if the person (a) has prepared and obtained the Regional Executive Director’s approval of a forestry plan that meets the requirements of subsection (6) and is carrying out the practice or activity in accordance with the plan.” As all of these initiatives have provided a significant head start in the implementation of the IFPAs, the NSIFS believes that all of these projects and initiatives should be considered innovative and eligible for AAC increases under Sec 59.1 of the Forest Act.

October 24, 2011 21


5.3 Forest Act and IFPAs

Section 59.1 of the Forest Act25 enables the Regional Executive Director to increase the current AAC associated with the license of an IFPA. Prior to such approval, the Regional Executive Director must have approved a Forestry Plan in which the innovative forestry practices or activities are identified. Eligible categories of innovative forestry practices and activities are described in the Innovative Forestry Practices Regulation26. These categories include improvements due to harvesting or silvicultural systems, silvicultural treatments, collection and analysis of new data on forest composition and expected growth, and management activities to enhance and protect other resource values. To be eligible, the practices and activities must be within the Forestry Plan approved by the Regional Executive Director. Additionally, the collection and analysis of new data must be in accordance with the specifications of the Chief Forester. An increase in AAC must be justified based on timber supply analysis methodology approved by the Chief Forester. The Chief Forester has made known his approved timber supply analysis methodology in a memorandum dated April 6, 2001 to the Regional Executive Directors. This memorandum provides the general principles of timber supply analysis methodology that is required to justify an increase in AAC to the license of an IFPA. Under section 59.1 of the Forest Act, the Regional Executive Director can limit an AAC increase to a period of time, area of land, type of timber or any other condition. The Regional Executive Director also can reduce or eliminate an increase at any future time given new information or for non-compliance with the Forestry Plan or the conditions set. Further, the Regional Executive Director is enabled to suspend or cancel an innovative forestry practices agreement if the holder is not complying with the agreement, Forestry Plan, conditions, or the Forest Act Practices Act or Forest Practices Code of British Columbia Act. Section 59.1 of the Forest Act, the Innovative Forestry Practices Regulation, and the memorandum on timber supply methodology from the Chief Forester are reprinted in the appendices.

6.0 IFPA Members

6.1 Commitment to Creating Innovation for the Five IFPAs to a Similar Standard

The five Licensees that hold IFPAs are committed to ensuring innovative approaches are developed and standards to accommodate all five IFPAs. This will be accomplished by:

1. Utilizing the NSIFS to manage the IFPA implementation process;

2. Provide linkages to support forest certification;

3. Agreeing to develop consistent operating procedures that support implementation of new innovations developed by NSIFS;

25 Appendix 1 Forest and Range Practices Act Section 59. 26 IFPA legislation – MoF Forest Act Section 59.1.

October 24, 2011 22


4. Ensuring that the standards support the timber supply assumptions and commitments made in this Forestry Plan;

5. Developing mechanisms to support financial implementation of innovative new projects to support the Forestry Plan; and

6. In addition, as a member of the NSIFS, the BCTS will participate and support new operating procedures.

6.2 Overview of the Merritt IFPA Holders

As stated previously, the Merritt IFPA area comprises approximately 1.13 million hectares27. Within the IFPA boundaries are the operating areas of the five IFPA holders, the BCTS operations, and several companies holding non-replaceable forest licenses operating in Smallwood Lodgepole Pine stands.

6.3 AAC Apportionment

The total AAC for the Merritt TSA, as of January 1, 2002, set by the FLNR Chief Forester is 1,508,050 cubic meters28. The following table outlines the IFPA Forest Licensees AAC apportionments prior to the IFPA uplift, apportionment of the IFPA uplift and combined volume for each TSA Forest License. Table 2 AAC Apportionment by Major Licensee.

Core AAC FL m3

% of total TSA AAC

IFPA AAC Jan 1, 2004

Uplift

IFPA AAC July 13, 2005 Beetle

Uplift

Vol. adj. for secondary

agreements m3

IFPA AAC Uplift Total

Total AAC Commitment

m3

Licensee

Ardew 35,100 3.81% 19,015 10,354.00 - 29,369 64,469

Aspen 132,744 14.42% 92,596 57,404.00 190,000 340,000 472,744

Riverside (now Tolko) - 0.00% - - - - -

Tolko 338,255 36.74% 39,684 86,667.00 - 126,351 464,606

Weyerhaeuser 413,556 44.92% - 70,575.00 - 70,575 484,131

Stuwix 950 0.10% 179,405 275,000.00 190,000) 264,405 265,355

Totals 920,605 100.00% 330,700 500,000.00 - 830,700 1,751,305

6.4 Merritt TSA Timber Processing Facilities

The Merritt TSA has four major mill facilities, three in Merritt and one in Princeton. There are several smaller mill operations, including a pellet plant in Princeton and a planned pellet plant in Merritt. Table 3 below provides recent information on timber processing facilities in the Merritt TSA.

27 Merritt TSA, TSR 4 Timber Supply Analysis Report, April 2010. Forsite Consultants Ltd. for the NSIFS http://www.for.gov.bc.ca/hts/tsa/tsa18/tsr2009/Merritt_TSR4_Analysis_Report.pdf 28 TSR II Chief Forester Merritt TSA Determination.

October 24, 2011 23


Table 3 Type and Location of Main Timber Processing Facilities in the Merritt TSA Timber Processing Facility Location Main Products Annual output capacity 29

Ardew Wood Products Ltd. Merritt Dimension lumber 68 million bd. ft. Aspen Planers Ltd. Merritt Dimension lumber

Poles Posts

275 million bd. ft. 960 000 pieces 480 000 pieces

Tolko Industries Ltd. Merritt Dimension lumber 240 million bd. ft. Weyerhaeuser Company Ltd. Princeton Dimension lumber 275 million bd. ft. NMV Lumber Merritt boards - MWP Cascade Post and Rail Princeton Posts 480 000 pieces Coldwater Post and Rail Merritt Poles 960 000 pieces Princeton Post and Rail Co. Ltd. Princeton Posts

Poles 528 000 pieces 144 000 pieces

Nicola Post and Rail Merritt Posts, rails, pressed fire logs - Upper Nicola Post and Rail Douglas Lake Posts - Princeton Wood Preservers Ltd. Princeton Utility poles 29 000 pieces Nicola Log Works Ltd. Merritt Log and timber frame homes - Princeton Pellets, animal bedding 90 000 tonnes Source: SEA for Merritt TSA, TSR 4 Timber Supply Analysis Report, April 2010. for NSIFS

6.5 Current Employment

The average total direct job employment in the Merritt TSA forest industry between 2006 and 2008 is 1,397 PYs. Opportunities to support innovative practices through government and NSIFS member contributions generated on average 4 PYs of employment over the same time period. Table 4 below provides a breakdown of sources of employment and PYs by forest industry sectors. Table 4 Annual Average Employment Years based on Period 2006 - 2008

Ardew Aspen Tolko Weyerha

euser Stuwix Other

Manufac NSIFS

Contract Total

Harvesting, Planning and Admin 26.9 100.0 63.9 56.0 67.3 314.1

Silviculture 1.7 18.9 10.6 4.1 6.8 42.1

Mill, Processing 55.3 161.7 195.0 244.0 105.2 133.0 894.2

Log Transport 14.6 35.1 28.0 15.0 25.9 118.6

Road Construction and Maintenance

5.3 3.2 4.6 6.0 8.6

27.7 Govt. and NSIFS Funded Projects

4.2 4.2

Summary 103.8 318.9 302.1 325.1 213.8 133.0 4.2 1400.9

Source: SEA for Merritt TSR 4, and NSIFS Employment Records

6.6 First Nations Employment and Contract Opportunities in the Forest Industry

In 2001, the NSIFS IFPA members established AAC uplift Share Agreement that outlined the sharing of AAC increases in the Merritt TSA and subsequently the new employment

29 Based on 480 8-hour shifts per year

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generated. Although not all IFPA holders signed the Share Agreement, all IFPA members have participated in sharing information on First Nations employment created in response to IFPA uplifts. The NSIFS is committed to monitoring and reporting on the annual employment created through IFPA uplifts. Table 5 below provides a summary of First Nations employment by IFPA Licensee since the first uplift in 2004. Table 5 History of IFPA Licensee Uplift and First Nations Employment FNs Person days: Logging, Construction, Pre harvest, Engineering, Post harvest

IFPA AAC Uplift Total

m3 Total AAC

Commitment m3 05-06 06-07 07-08 08-09 09-10 10-11 Total PDs % PDs

Licensee

Ardew 29,369 64,469 146 148 97 199 89 199 878 0.91%

Aspen 340,000 472,744 3,385 5,582 6,679 6,570 5,314 5,085 32,615 33.89%

Tolko 126,351 464,606 843 1,964 1,702 1,039 2,377 1,567 9,492 9.86%

Weyerhaeuser 70,575 484,131 737 829 1,302 2,547 793 1,364 7,572 7.87%

Stuwix 264,405 265,355 3,130 9,430 8,863 8,468 11,432 4,354 45,677 47.46%

Totals 830,700 1,751,305 8,241 17,953 18,643 18,823 20,005 12,569 96,234 100.00%

6.7 NSIFS Members Overview

Nicola Tribal Association: The total membership of the Nicola Tribal Association (NTA) communities is currently 3,568 members. The eight communities that make up the NTA are situated within a 115 km radius of the city of Merritt. They are located in the Nicola Valley, along the Thompson River and in the Fraser Canyon. The communities of the NTA are: Coldwater Indian Band; Cook’s Ferry Indian Band; Nicomen Indian Band; Nooaitch Indian Band; Shackan Indian Band; Siska Indian Band; and Upper Nicola Indian Band; and Lower Nicola Indian Band. The NTA works with the individual bands and their companies to help the Bands manage their individual Forest tenures. These tenures include Woodlot Licenses, Timber Sales Licenses, and Small Scale Salvage Licenses. The Forest Tenures have provided a variety of opportunities for First Nations in the Merritt TSA including;

• Employment for band members and their companies; • Forest revenues for the Bands; and • First Nation participation to forest resources.

The NTA membership in general are economically involved with farming, ranching and logging. There are a number of people also involved in commercial retail ventures, industrial, general and residential construction.

Upper Similkameen Indian Band: The Upper Similkameen Indian Band (USIB) covers an area from Hedley to Princeton and begins 30 kilometers west of Keremeos in the Similkameen District. The USIB has the smallest population with approximately 74 members. The USIB has a land base of 2,708.5

October 24, 2011 25


hectares and seven reserves, with the main community residing on Chuchuwaya I.R. No.2, on the Similkameen River30. The Upper Similkameen Indian Band (USIB) has been involved in the business community for the past seventeen years and has become one of the largest employers in the area. The Band is very community-minded and employs both native and non-native people within the various operations. The Band employs approximately thirty-five people on a full-time basis and employees exceed one hundred and fifty during the peak summer season. The Band is registered with BCTS as a logging company, and has joint Forest Licenses and partnerships with Princeton Wood Preserves and Princeton Forest Products. The Bands Forestry Department owns and operates heavy equipment required to develop roads and landings related to forest harvesting activities. The Band has 80 acres of crown land that is used as an industrial park/log sort yard. In 2010, USIB changed the business structure of their forestry services and established their forestry company, Chuchuwayha Forestry Ltd. The company continues to provide forest development planning and layout services for Band licenses as well as other forest tenures. In addition, Chuchuwayha Forestry Ltd also provides silviculture services such as pruning, slashing, tree planting and other post harvest activities.

Weyerhaeuser Company Ltd: Weyerhaeuser began Canadian operations in 1965 with Kamloops Pulp. The company has grown since and has manufacturing operations in British Columbia, Alberta, Saskatchewan, Ontario and New Brunswick, producing a range of pulp, paper, recycled packaging, lumber, and composite wood products for Canadian and International markets. Weyerhaeuser Company (Weyerhaeuser) has a AAC commitment in the Merritt TSA of 504,131 m3. The company owns a saw mill, planermill, and dry kilns located in Princeton. In addition to its Forest Licenses, the company manages several other Merritt TSA licenses.31 It is the town’s biggest private sector employer. In 2007, Weyerhaeuser announced that it was closing its Okanagan Falls saw mill and re-investing in its Princeton operation. The company made several large capital investments in its Princeton operation in 2007 and 2008: $5.2 million for a replacement trimline, $4 million for a grade optimizer, $1 million for a stacker strip system and $ 250,000 for logyard scales. The company’s Princeton operation consumed approximately 700,000 m3 of timber per year on average based on the 2006-2008 production records. Weyerhaeuser is a large multi-national, publicly-traded forestry company headquartered in Tacoma, Washington, which has approximately 20,000 employees worldwide and 65 production facilities.32 Weyerhaeuser’s business initiatives and partnerships in the TSA are summarized in the following Table 6 below.

30 Source: Okanagan Nation Alliance 31 Source: TSR 4 Timber Supply Analysis Report (Forsite, 2010) 32 As of 2008

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Table 6 Weyerhaeuser’s Merritt TSA business initiatives and partnerships Company Location Business initiative Princeton Wood Preservers Princeton Supplying fibre for round wood products Princeton Post and Rail Princeton Supplying fibre for round wood and rail

products MWP Cascade Wood Products Princeton Supplying fibre for round wood and rail

products Princeton Cogen Princeton Supplying sawdust for bedding and pellets Upper Similkameen Indian Band Princeton Supplying logs for manufacturing Lower Similkameen Indian Band Princeton area Cooperative working agreement, road use

agreement, and log purchase agreement Upper Similkameen Indian Band Princeton Strategic partnership for tree planting SBC Firemaster. Princeton Supplying pulp logs for firewood Source: 2009 Merritt TSA SFM Monitoring Report

Aspen Planers Ltd.: Aspen Planers Ltd. (Aspen) is an independent, family-owned business founded in 1959 by the Ghog family. Aspen Planers Ltd. (Aspen) holds two forest licenses with a total commitment33 of the Merritt TSA AAC of 282,000 m3. Additionally, Aspen has five non-replaceable Forest Licenses with a total commitment of 191,372 m3. Over the years, the business has grown to include an additional Planer mill (formerly Weyerhaeuser Company Ltd.) and the completion of a major upgrade to the existing breakdown facility in 2003/04 at the Merritt Mill and construction of a Dry Kiln. The company’s Merritt operation consumed approximately 1,000,000 m3 of timber per year on average based on their 2006-2008 production records. In addition to the lumber mill, Aspen owns and operates post and rail facilities in Merritt, (Coldwater Post and Rail Ltd.) and in Princeton (MWP Cascade Post and Rail Ltd.). These post and rail facilities produce untreated round products consisting of posts, rails, grape stakes and various other products. Members of Local First Nation Bands comprise the majority of the workforce at the Coldwater Post and Rail plant located on the Coldwater Indian Band reserve south of Merritt. Mego Wood Products (1989) is another Aspen owned company that holds a non-replaceable Forest License in the Princeton area and is a supplier of the logs and raw materials for the Princeton operation. In addition to holding a replaceable Forest License, Aspen is also a joint venture partner with four First Nation Bands: Cooks Ferry; Coldwater; Nooaitch; and Siska. This consortium holds a non-replaceable Forest License under the company Qwa’eet Forest Products Ltd. First Nations people are directly involved in the harvesting, road development and planning operations of this company.

33 Includes IFPA Uplift volumes

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Aspen works cooperatively with the Lower Nicola Band through Shulus Enterprises in the management of Small Scale Salvage opportunities in the Operating area. A summary of Aspen Planers business partnerships in the TSA are summarized in Table 7

below.

Table 7 Aspen Planers’ Merritt TSA business initiatives and partnerships Company Location Business initiative Nicola Valley Log Homes Ltd. Merritt Supplies trim blocks for sorting Qwa’eet Forest Products Ltd. Merritt area Joint venture non-replaceable Forest

Licence Shulus Enterprises Merritt area Facilitates its Small Scale Salvage

harvesting Coldwater Post and Rail Ltd. Merritt Manufacture and sale of round wood

products MWP Cascade post and Rail Ltd. Princeton Manufacture and sale of round wood

products Stuwix Resources Ltd. Merritt Forest License Management Trace Resources Merritt Biofuel Supply Pine Ideas Merritt Lumber Sales and Manufacturing Source: 2009 Merritt TSA SFM Monitoring Report

Ardew Wood Products Ltd.: Ardew Wood Products Limited is a family-owned and operated business that was established in Merritt in 1966. Ardew pioneered Smallwood conversion in Merritt, and focuses on the use of small diameter Lodgepole pine for the production of premium quality structural lumber for the Japanese pre-fabricated housing market. In addition, Ardew provides lumber to a local value-added pine furniture manufacturer and North American markets. Ardew Wood Products Ltd. (Ardew) owns a saw mill, planermill, and dry kilns operations in Merritt. The company is privately owned by the Norgaard family, which built a large log single line saw mill in 1975. The company led the utilization of small diameter in the TSA and was awarded a licence focused on small diameter pine in 1986. Subsequently, in 1988 Ardew added a small log line to its mill. In 2002-03, Ardew invested $3.2 million for a planer addition and upgrade to their mill. The company’s operations in Merritt consumed approximately 200,000 m3 of timber per year on average based on the 2006-2008 production records. All of the fibre input for Ardew’s Merritt operation comes from the Merritt TSA. Ardew is a partner with the Upper Nicola Indian Band in a successful joint venture company named Nicola Pacific Forest Products Ltd, which was established in 1996. This company manages a 15 year non-replaceable Smallwood Forest License in the Merritt TSA and directly employs First Nations people in all areas of operation.

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In 1996, the Norgaard family and Curtis Sloan jointly started Pine Ideas Ltd., a Merritt manufacturer of pine wood products, such as wine racks, storage racks, shelving and wood components for other manufacturers. Ardew’s business initiatives and partnerships in the TSA are summarized in the Table 8 below. Table 8 Ardew’s Merritt TSA business initiatives and partnerships Company Location Business initiative Pine Ideas Merritt Supply fibre for furniture stock Nicola Post and Rail Merritt Supply fibre for round wood products Nicola-Pacific Forest Products Merritt Joint venture non-replaceable Forest

Licence Upper Nicola Post and Rail Douglas Lake Supply fibre for round wood products Source: 2009 Merritt TSA SFM Monitoring Report

Tolko Industries Ltd.: Founded in 1956, Tolko has grown from a small sawmill in Lavington, British Columbia, to a company diversified by geography and product. Tolko manufactures lumber, unbleached kraft papers, panel products, co-products, biomass power, and a growing number of specialty wood products in its operations across Canada. Tolko Industries Ltd. (Tolko) has three replaceable Forest Licenses in the Merritt TSA’s with a total AAC commitment of 464,606 m3 and two non-replaceable Forest Licenses with a total commitment of 40,000 m3. The company owns a saw mill, planermill, and dry kilns located in Merritt that produced an annual average of approximately 240,000 bd. ft. of SPF dimension lumber over the 2006-08 period. The mill complex is the city’s biggest private sector employer. The company’s Merritt operations consumed approximately 900,000 m3 of timber per year on average based on the 2006-2008 production records. Tolko invested $4.6 million in capital improvements (dry kiln and planer improvements) at its Merritt mill over the same period. Tolko’s business initiatives and partnerships in the TSA are summarized in Table 9 below. Table 9 Tolko’s Merritt TSA business initiatives and partnerships Company Location Business initiative

NMV Lumber Merritt Partnership to purchase NMV’s chips Highland Block Sort Merritt Joint venture with Nicola Mill, providing trim

blocks for sorting, chopping, and marketing of product through Tolko brokerage.

Upper Nicola Band Merritt area MoU and contract to manage the Band’s Salvage Non-Replaceable Forest License through a Forest and Range Agreement.

Upper Similkameen Indian Band Princeton Annual tree planting agreement and forest management contracts.

Ska-Lu-La Merritt Community based program for the disabled. Manufacture of lath and dunnage for all of

Nicola’s products. Source: 2009 Merritt TSA SFM Monitoring Report

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Stuwix Resources Ltd.: Stuwix Resources Ltd. (Stuwix) is a private forest management company owned by the following 8 local Indian Bands in the Merritt TSA: Coldwater, Lower Nicola, Upper Similkameen, Upper Nicola, Nooaitch, Shackan, Cook’s Ferry, and Siska. The company began operations in 2004 and operates as a market logger. To operate and manage the forest license the Bands formed a joint venture – “Stuwix Resources Joint Venture” in which all but the Upper Nicola Band, by choice, has representation on the joint venture Management Committee. The purpose of the company and joint venture is to create jobs and business opportunities for shareholder Band communities and their citizens. Stuwix holds a replaceable Forest Licence with a commitment of 950 m3 and an IFPA Uplift volume of 264,405 m3. In addition, it shares an IFPA Uplift volume of 190,000 m3 with Aspen. A the time this Forest Licence acquired, it was the only one of its kind held in BC by a First Nation organization. Stuwix obtained an IFPA in December 2001 to join the TSA’s other Forest Licensees in holding an IFPA. A NSIFS member supported Share Agreement stipulated that Stuwix Resources receive 50% of any AAC increase resulting from IFPA based uplifts and this arrangement facilitated 2004 and 2005 increases in the AAC commitment for Stuwix’s Forest Licence (Walkem March 13, 2006). The name ‘Stuwix’ represents both the Nlaka’pamux and Okanagan name for their mutual ancestors who moved into the Nicola area from the north, generations ago. Table 10 below summarizes the initiatives and partnerships with Stuwix. Table 10 Stuwix’s Merritt TSA business initiatives and partnerships Company Location Business initiative

Nicola Post & Rail Merritt Supplies fibre for roundwood products Princeton Post & Rail Princeton Supplies fibre for roundwood products Renew Resources Merritt Supplies fibre Cascades Wood Chips Merritt Chip supply Source: 2009 Merritt TSA SFM Monitoring Report

British Columbia Timber Sales (BCTS) The BCTS promotes the growth of small business in the forest industry and provides opportunities for these businesses to acquire timber for their operations. The program strives to stimulate the production of specialty and high value forest products, and to generate employment opportunities. Approximately 456,870 m3 of AAC in the Merritt TSA are apportioned to the BCTS. Their average harvest volume over the 2006 – 2008 period was 347,124 m3. 2009 was an exceptionally strong year for MPB timber with a billed harvest volume of 571,096 m3. An outline of BCTS apportionments and tenures are listed in Table 11 below.

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Table 11 BCTS Average Annual Billed Harvest (Period 2006-2008) Harvest ACC Apportionment Annual average billed harvest 2009 Billed Harvest

Total m3 456 870 375 124 571 096

Companies that acquired the largest volume of BCTS timber in 2008 and 2009 included:

• 489581 Ltd. (Dan Eaton), Merritt, BC

• Gane Eneterprises Inc., Kamloops, BC

• Eli Lennea, Barriere, BC

• M.L. Brown Lumber Ltd., Merritt, BC

• Thompson Okanagan Log, Kamloops, BC

Table 12 BCTS’ Merritt TSA business initiatives and partnerships Company Location Business initiative

Nine separate First Nation Bands Merritt/Princeton Service Agreements Turtle Track, Alpha Designs, Haulrite Transportation, Lawes Forest Management

Merritt/Princeton Service Contracts

Princeton Post and Rail, Weyerhaeuser, Haulrite, Nadina

Merritt/Princeton Timber Sales

Source: 2009 Merritt TSA SFM Monitoring Report

Smallwood Licensees In 1996, the Chief Forester partitioned the AAC of the Merritt TSA to include 250,000 m3/year of “problem forest type” Smallwood stands. From this 250,000 m3/year, 212,500 m3/year34 was advertised and awarded through non-replaceable 15-year licenses, 35,000 m3/year in the BCTS program and 2,500 m3/year is under the Forest Service reserve. Smallwood forest types consist primarily of short, densely stocked and repressed Lodgepole pine stands and occupy in excess of 104,000 hectares in the Merritt TSA. Handling and milling techniques have evolved to accommodate small logs and markets have developed for the tight-grained, high strength wood found in these stands. At this point the long-term future of the Smallwood operating areas are not clearly defined. Although Smallwood licensees are not eligible for an IFPA and are not part of the NSIFS, this group of tenure holders contributes to the Merritt TSA current and future AAC. Smallwood stands currently do not significantly contribute to the Timber Harvest Landbase (THLB), but through the silviculture efforts of Smallwood Licensees, these stands are being replaced with productive forest stands for future generations. A summary of Smallwood

34 Merritt TSA Rationale for AAC Determination January 1, 2002.

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Licensees has been included as these groups of tenure holders represent a significant portion of the TSA land base and harvest levels and will ultimately contribute to increases in the productive Timber Harvest Land Base. The Society has worked closely with the MoFLNRO on how to monitor and model these areas for analysis considerations such as most recently for the Merritt TSA, Timber Supply Review 4. A special note, that although most of the Smallwood Licensees are not direct members of the NSIFS, many of them have contributed FIA funding towards NSIFS projects. The NSIFS recognizes their contributions to the Merritt TSA and will continue to involve them on NSIFS initiatives. The following table shows the current allocation of the Smallwood volume in the Merritt TSA. Table 13 Allocation of Smallwood Licensees35

Forest Licenses, non-replaceable (Smallwood)

Cubic Meters

Nicola-Pacific Forest Products 67,500

Qwa’eet Forest Products 60,000

BCTS 35,000

Princeton Wood Preservers/USIB 30,000

Princeton Community Forest 20,000

Aspen Planers 100,000

USIB 19,253

Sungate Timber 40,000

Nooaitch First Nation 20,000

Coldwater First Nation 30,000

Total 386,753

7.0 Funding Source

NSIFS funding is the responsibility of the BOD. To date, the NSIFS has relied upon funding from Provincial, Federal, non-profit organizations and NSIFS membership contributions for implementation of projects. The BOD is committed to maintaining the innovative forest management programs outlined in the Forestry Plan. Figure 5 provides a historical overview of funding through the NSIFS for the period 2004-2011.

35 Apportionment and tenure holder supplied by Len Marsh Area Forester Merritt Field Team BCTS June 24, 2004.

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7.1 FRBC Contribution

FRBC funded NSIFS annual projects for the period of 1998 to 2002. All projects completed by NSIFS met FRBC eligibly guidelines and standards and final deliverables for each project have been supplied to FLNR and MoE.

7.2 FIA Contribution

FIA funded NSIFS annual projects for the period of 2002 to 2009. All projects completed by NSIFS met FIA eligibly guidelines and standards and final deliverables for each project have been supplied to FLNR and MoE.

7.3 Short-Term Funding Programs

During 2008 and 2009, the NSIFS applied for funding through a couple of new government initiatives to stimulate the economy and employment in communities throughout BC. These included the Community Adjustment Fund (CAF), a federally funded program, and the Jobs Opportunity Fund (JOP), a Provincially funded program. In addition, funding from the Provincial Ecosystem Restoration Program and in-kind support from the Grasslands Conservation Council of BC helped with a large Ecosystem Restoration Project in 2010. All together, the NSIFS secured $740,000 and generated 2,849 person-days of employment between June 15 and December 31, 2010.

7.3.1 Community Adjustment Fund

The CAF was designed as a two-year employment stimulus program funded by the Federal Government to support community projects and take advantage of co-funding opportunities through non-profit groups.

7.3.2 Jobs Opportunity Funding (through the Community Development Trust Program) As a three-year initiative, the Community Development Trust program was established in 2008 as an immediate helping hand to forest and resource workers affected by the economic downturn. Job Opportunities, supported activities that provided short-term employment for impacted resource workers while helping to meet government objectives that benefitted resource-dependent communities.

7.4 Land Based Investment Strategy –Current Government Funding Envelope

Although the FLNR have developed a 5-year investment plan, funding will be very limited and for the most part focused on managing for the mid-term timber supply. The objectives and strategies don’t cover all of the NSIFS priorities and interests, so there is no doubt other funding sources will need to be sought.

7.4 Membership Contribution

The NSIFS members have supplied funding to support a variety of NSIFS projects, especially those that did not qualify for government funding. The NSIFS members are currently exploring new concepts and opportunities to fund future IFPA activities.

Figure 5 NSIFS Project Funding History 2004 - 2011

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NSIFS Project Funding (2004- 2011)

$-

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

04-05 05-06 06-07 07-08 08-09 09-10 10-11

Fiscal Year

Society Operating Costs (includes costsfor Annual Report and IFPABusiness/Plans)

NSIFS Member Funded Projects

Government Project Funds

8.0 NSIFS AAC History

8.1 NSIFS 2003 AAC Application Summary

In the spring of 2003, information from five years of innovative forestry practices was assembled in an uplift application to the MOFR Kamloops Regional Manager. The application from NSIFS requested an increase to the AAC of the Merritt TSA by 549,000 m336. The application contained a composite analysis that combined all innovative forestry practices that NSIFS considered relevant for their proposed AAC increase. Several months of detailed review ensued by government agencies, First Nations and the public. On September 25, 2003, a determination meeting was held with the Regional Executive Director and government agency staff to discuss the technical merits, risks and uncertainties of the application. Further meetings were held with staff experts to discuss the technical details and implications of each factor identified in the composite analysis. After reviewing and considering all the factors and associated uncertainties that were described in the document, the MOFR Kamloops Regional Manager determined that innovative practices developed by the NSIFS identified 330 700 m3 per year from within the Merritt IFPA boundaries that would not have been known or made available within the current AAC for the Merritt TSA. The MOFR Kamloops Regional Manager did not allocate the additional volume of 218,300 m3 to the NSIFS. The NSIFS will continue to develop innovative approaches leading to a new determination that supports award of the unallocated volume to the Merritt IFPA holders.

36 NSIFS AAC Application For further info see nsifs.webfactional.com.

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The AAC increase was assigned to the IFPA-holders as follows and was subject to conditions outlined in the ‘Determination’ section of the document:

A18695 – Aspen Planers Ltd. by 16,535 m3 per year;

A18696 – Tolko Industries Ltd. by 36,377 m3 per year;

A18697 –Tolko Industries Ltd. by 3,307 m3 per year;

A18698 – Weyerhaeuser Company Ltd. by 76,061 m3 per year;

A18039 – Ardew Wood Products Ltd. by 19,015 m3 per year; and

A65006 – Stuwix Resources Ltd. by 179,405 m3 per year.

The NSIFS AAC Determination37 was effective January 1, 2004 - December 31, 2007; however, the NSIFS was approved for an extension to August 31, 2011.

8.2 NSIFS 2005 MPB Uplift Application Summary

On March 30, 2005 the NSIFS made an application for an additional uplift of 500,000 m3 to apply innovative solutions to enhance efforts to suppress the Mountain Pine Beetle (MPB) infestation. On July 13, 2005 the Regional Manager accepted the uplift request and determined, along with several conditions, that the allowable annual cut increase under Section 59.1 of the five IFPA licensees to be a total of 830,700 m3. The combined core AAC of 330,700 m3 and MPB uplift AAC of 500,000 m3 was allocated to the six IFPA licensees accordingly: A18695 – Aspen Planers Ltd. by 56,649 m3 per year; A18696 – Tolko Industries Ltd. by 118,711 m3 per year; A18697 –Tolko Industries Ltd. by 7,640 m3 per year; A18698 – Weyerhaeuser Company Ltd. by 160,926 m3 per year; A18039 – Ardew Wood Products Ltd. by 29,369 m3 per year; and A65006 – Stuwix Resources Ltd. by 454,405 m3 per year.

8.3 NSIFS 2007 IFPA Extension Application Summary

The Innovative Forest Practices Agreements issued for Merritt on March 25, 1998 were initially set up for a 10-year term ending December 31, 2007. However, in order to maximize suppression efforts regarding the MPB, the NSIFS submitted an application on May 8, 2007 to the Regional Manager for an extension of their current AAC. On July 31, 2007 the Regional Manager approved the extension of the current AAC of 830,700 m3 to August 31, 2011. NSIFS believes the IFPA uplift should be permanent and is working with the FLNR to develop changes that support the permanent award of IFPA AAC increases (non-MPB volume) to existing replaceable Forest Licenses. The NSIFS is committed to work with FLNR to ensure long-term sustainability of the existing AAC uplift to IFPA holders in the Merritt TSA.

37 Appendix 7, 2003 MoF AAC Rational.

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9.0 NSIFS IFPA Conditions

This section provides an update on the progress to latest uplift conditions issued by the Chief Forester, August 2, 2007, as part of the NSIFS uplift award to August 31, 201138. The first set of uplift conditions were issued with the January 1, 2004 AAC Determination for the Merritt TSA39 and updated with the July 13, 2005 AAC Determination40. The NSIFS is committed to meeting their IFPA conditions and have summarized their progress below.

August 2, 2007 IFPA Conditions

Condition 1

Submission of an annual report by April 30th of each year that summarizes the activities completed by the society in the past calendar year, the expected activities in the upcoming year, how conditions of this award have been met, and any other requirements identified in the below conditions.

Condition 1 Accomplishments

Since 2004, the NSIFS has been reporting annually on Forestry Plan projects, First Nations employment and their involvement with innovative forest planning. Also, as part of the NSIFS Annual Report, an annual project budget is submitted with a description of proposed projects that support the NSIFS Forestry Plan and IFPA conditions. Progress on meeting all IFPA conditions is provided through the NSIFS Annual Report. The NSIFS also provides access to project data via the NSIFS website (previously www.nsifs.bc.ca, now www.nsifs.factional.com). In 2007, the NSIFS developed a website tutorial and implemented training to support government, public and partners utilization of the information completed by the NSIFS. The NSIFS has been managing their website and providing training at their cost to First Nation, government, and licensee members since 2007.

Condition 2

Continue with the development and implementation of a detailed, peer reviewed monitoring plan and submit a summary of monitoring results with the annual report. The plan components are to include:

• growth and yield monitoring that will identify deviations from expected overall average site productivity estimates for, but not limited to, low elevation, high elevation, and smallwood stands;

• silviculture monitoring that enables comparison of actual silviculture and harvest operations with the regimes modeled in the allowable annual cut increase application.


38 Rationale for Increase in AAC, August 2, 2007, (BC Ministry of Forests) 39 Rationale for Increase in AAC, January 1, 2004, (BC Ministry of Forests) 40 Rationale for Increase in AAC, July 13, 2005, (BC Ministry of Forests)

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The NSIFS has completed a comprehensive monitoring strategy and field implementation plan. The monitoring strategy is available on the NSIFS website at www.nsifs.factional.com. The Change Monitoring Inventory plan and methodology was submitted to the MOFR 2005 including an NSIFS innovative standard approved by MOFR for sampling Smallwood stands. The project started in 2005 and had established 37 standard CMI plots and 30 Smallwood innovative standard plots by 2008. All field inventory work completed by 2008 had passed an independent quality assurance requirement to provincial standards. The last work completed in support of growth and yield/ silviculture monitoring was QA for Change Monitoring Inventory work on low-mid elevation PSP’s and Smallwood PSP’s completed in the 2008-2009 fiscal year. Results below: Results of field quality assurance confirmed that all CMI and Smallwood sample plots passed the minimum provincial standards (As per National Forest Inventory BC Change Monitoring Procedures and National Reporting Version 1.4 March 2005 and Change Monitoring Inventory - Ground Sampling Quality Assurance Standards Version 2.1, May 2007) 41 In the 2007-2008 fiscal year, a final report indicated that the similarities in actual and modeled TIPSY input and resulting culmination MAIs in the analysis, supported the assumptions used to develop the MSYTs for the 2003 AAC Uplift Application (Timberline, March 2008) 42 First measurements of high elevation plots are planned and included as part of the NSIFS commitment in the Forestry Work Plan.

Condition 3

Identify within the annual report changes in legislation, land base composition and forest management practices that would result in changes to timber supply. This includes completion of conditions in 2005 rationale around old growth management areas and mule deer winter range. Where changes are likely to significantly impact the modeled harvest flow increases (i.e., greater than 10 000 cubic meters per year), the impacts of the innovative forestry practices should be re-assessed by updated timber supply analysis.


TSR 4, Final Base Case Analysis and Report As part of the on-going TSR 4 work in the Merritt TSA, all wildlife identified under section 7 (2)FPPR are being assessed to understand impacts to timber supply. This will include an

41 Summary Report for Quality Assurance of Change Monitoring Inventory and Smallwood Inventory Plots Contract Number: 49840008-08-01, Silent Water Forestry Consulting, 2008 42 Merritt Timber Supply Area Change Monitoring Inventory: First Measurement, Timberline, March 2008

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understanding of impacts to harvest flows based on the best OGMA and ungulate winter range data. Results of TSR 4 concluded a 7.8% decrease in THLB over the Merritt TSA 43(625,080 ha in TSR 4 vs 678,250 ha in TSR 3). The major changes to forest management and timber supply projections recognized in the base case for TSR 4 vs TSR 3 were:

• Spatially explicit old growth management areas (OGMA), (45,692 ha) are implemented instead of broad seral constraints for biodiversity.

• Ungulate winter range (UWR) is now managed under a new set of approved objectives (i.e. a new UWR map and forest cover requirements).

• The area under approved VQOs is now larger (105,649 ha) compared to TSR3 (70,002).

• The current AAC level (2.8 million m3/yr) includes a larger uplift to address the MPB infestation relative to the AAC in place at the time of TSR3 (2.13 million m3/yr).

• The MPB epidemic has impacted substantially more area than at the time of TSR3.

Analysis and supporting data was provided in the TSR 4, Timber Supply Analysis Report for the Chief Forester’s considerations in their AAC determination for the Merritt TSA.

Condition 4

Update as necessary the report describing the Mountain pine beetle strategy that (a) describes the co-ordinated beetle response and management strategy to be used by IFPA-holders, (b) methodology and schedule for forecasting beetle spread, (c) identifies biodiversity features at risk due to beetle spread or increased harvest associated with beetle management, and the recommended actions to mitigate threats, and (d) describes the strategy for a "roads ahead program". This report with updates is to be provided annually by January 31.


The NSIFS has been submitting their Annual MPB Strategy since 2005 in a commitment of meeting 2005 Uplift Conditions. The current Annual MPB Strategy can be viewed on the NSIFS website at http://nsifs.webfactional.com/plans&accomplishments.php. Previous copies of the MPB Strategy Annual Report can be viewed on the NSIFS FTP site.

Condition 5

Report annually by January 31 on the beetle management strategy and activities for the previous fiscal year. This report will include harvest activities, past and future projections of beetle spread, current beetle spread as identified from surveys, operational plans for next fiscal year.


43 Merritt TSA – Timber Supply Review #4, Timber Supply Analysis Report, Forsite, April 2010

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Similar to condition 4, information on harvest activities, past and future projections of the MPB spread along with current spread based on surveys, operational plans for the following fiscal year are described in the NSIFS MPB Strategy Annual Report.

Condition 6

Report how the awarded volume was distributed to holders through secondary agreements and identify the direct benefits to First Nations. This will include tracking and summarizing First Nation employment in relation to commitments made within forestry plans and within the Jobs Plan identified in the April 2, 2001 share agreement. This information should be submitted with the April 30th annual report.


Awarded volume through secondary agreements and First Nations’ employment summary is reported annually as part of the NSIFS Annual Report. The most recent NSIFS Annual Report can be viewed on the NSFIS website http://nsifs.webfactional.com/plans&accomplishments.php. Previous reports can be accessed on the NSIFS FTP site.

Condition 7

Inform affected First Nations (Indian Bands) on a quarterly basis about the location of proposed and current harvesting, the status of the beetle infestation, how First Nations are being involved in the planning process in order to incorporate their interests, any harvesting economic opportunities available to First Nations, and on an annual basis about the general administration and operations of the society. Copies of the above communications updates will be filed annually with the April 30th annual report .


Since 2009, funding has not been available from the MoFR to implement the NSIFS First Nations communications strategy and employ a First Nation Liaison. Communications on current and proposed harvesting and degree of MPB infestation has been completed by licensees in conjunction with each of their operational plans and referral requirements. Some local First Nation bands have representation on the Merritt TSA Steering Committee and District Forest Health Committee to keep informed on MPB infestation within their traditional use areas. The NSIFS also posts a copy of the Merritt TSA MPB Annual Report on their website for anyone to review. The NSIFS is planning to restart a NSIFS Newsletter through in-kind resources and funding contributions from NSIFS Members. The newsletters will be coordinated by the NSIFS manager and include opportunities for First Nations input regarding their involvement that helps support the NSIFS Forestry Plan Objectives. The intent is to start a newsletter issue on a quarterly basis regardless of available government funding and have First Nation representatives on the NSIFS Technical Advisory Committee involved with the content. This initiative is identified in the Forestry Work Plan.

Condition 8

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Involve First Nations to a very high degree in the planning and harvest monitoring for the Stoyoma Mountain area.


IFPA licensees implement this as part of their operational information sharing and referral processes.

Condition 9

Provide to the MFR and First Nations with interest in the Merritt TSA, a budget approved by the society that details how NSIFS will fund the collection and use of traditional use information within their cultural value models and management. This budget for the 2007/2008 fiscal year should be provided within 8 weeks of this decision. In future years, this budget should be provided with the April annual report. Additionally, the NSIFS must deliver a detailed plan that identifies specifics around this budget. Details are to include: (a) study description, (b) area of study, (c) methodology, (d) timelines, (e) budget, (f) confidentiality/information sharing agreements, (g) how the information gathered will be used in planning to effectively address First Nations interests, and (h) how the information gathered will be catalogued. This plan is to be provided initially within 6 months of this decision and thereafter with the April annual report.


The NSIFS submitted their budget and projects regarding collection and use of traditional use information for the 2007/2008 fiscal year on October 5, 2007. Since 2007, the NSIFS has been sharing approved project budgets as part of their annual reporting with First Nations. This helps communicate to First Nation communities the NSFIS initiatives and project opportunities in the upcoming fiscal year.

Condition 10

Submit a proposal for the hiring of a First Nations Liaison person. The First Nations Liaison person would communicate with potentially affected First Nations in the Merritt TSA on proposed harvesting, the status of beetle infestations, and identify economic opportunities. The First Nations Liaison person would also assist First Nations involvement in the planning process and assist with the administration of traditional use data collection. The ministry will consider entering into an agreement with the NSIFS to provide up to $30,000 annually, subject to availability of funding, over the duration of the allowable annual cut increase to support this proposal. The proposal submitted by NSIFS would require the support of First Nations and must be submitted no later than December 31 in order to be funded the following fiscal year.


The NSIFS has been submitting a funding proposal for a First Nations Liaison person to support our NSIFS communications on MPB harvesting, economic opportunities, government funding opportunities and also share news between First Nation communities on their success with projects. The First Nations Liaison position has provided a permanent distribution list of First Nation communities and organizations that NSIFS shares information with. Although the NSIFS has not been successful in receiving funding since 2009, we

October 24, 2011 40


continue to communicate to First Nation representatives our initiatives through our BOD and Technical Advisory Committee meetings. Proposals for funding are submitted as an addendum to the NSIFS Annual Report along with all other IFPA conditions. These can be viewed on the NSFIS website at http://nsifs.webfactional.com/ .

10.0 Merritt TSA Values, Issues and Opportunities As with most TSA’s, there are many issues that require further work to develop an integrated forest estate planning process. The values and issues identified in the Merritt TSA provides the NSIFS with opportunities to develop innovative new approaches in forest management. The following sections outline the NSIFS’s areas of interest and provide a look into the potential value, issues and opportunities for each area of interest. The key areas to be incorporated into future innovative work will focus on the collection and linkage of data related to timber and non-timber issues and methods to compliment fiber access and AAC analysis. Items described in this section support the current AAC Determination and are the basis to support NSIFS efforts in future timber supply analysis and AAC uplift applications.

10.1 Opportunities provided by the IFPA agreements

The IFPA pilot, FIA funding and NSIFS provides the following:

1. The opportunity to improve inventories and expand growth & yield programs to support new information related to stand productivity and future timber supply analysis.

2. Expand First Nation’s cultural land use practices and interests in resource management, explore, and expand information relevant for incorporation into timber supply analysis. Develop new ways to incorporate cultural values and interests into timber supply analysis to support future cooperative access to the forest and promote forest sector business opportunities for TSA communities.

3. The opportunity to develop spatial models linking known resource and cultural values into landscape level planning and apply this to timber supply analysis to generate new information related to access on the THLB and potential AAC opportunities.

4. The opportunity to work together to develop sustainable forest management strategies for the TSA by gathering and incorporating cultural and social resource values and applying this information to generate updated harvest scenario models.

5. Supporting community solicitation to ensure IFPA innovative activities consider local information and interests and integrate this information into sustainable planning and analysis when applicable.

10.2 Integrated Resource Management

The IFPA agreements and the establishment of the NSIFS have created opportunities for new approaches in forest management in a Forest License environment that include:

1. Providing opportunities to develop integrated approaches for managing wildlife, biodiversity, First Nation’s and timber values into a comprehensive sustainable forest management strategy that leads to better management and access to the THLB;

October 24, 2011 41


2. Continued cooperative and consensus decision-making by the NSIFS membership and incorporating input from FLNR and MOE that supports proactive management and access to the THLB; and

3. Monitoring of timber supply analysis information utilized in the 2003 NSIFS AAC application to support existing AAC gains and development of new information that promotes updates in timber supply analysis scenarios to support the development of future timber supply analysis and AAC applications.

10.3 Forest Management

From the knowledge of local practitioners, TSR analysis and through efforts of the NSIFS activities to date, a number of forest management issues and opportunities identified within the Merritt TSA are being addressed. Many of these issues have been the target of NSIFS initiatives over the last four years and have lead to new information that supports the NSIFS AAC application, analysis and AAC uplift. New forest management issues and outstanding issues will be further explored and developed in future years to provide better management and access to the THLB. These are summarized below.

10.3.1 Age Class structure

The forest age class distribution for the Merritt TSA is identified as older stands with significant value for a number of activities including harvesting. The forest stand late age class distribution lends itself to considerable risk from naturally occurring fires and insects. In TSR I the Chief Forester stated, “The inventory is heavily weighted to late seral age classes, raising management concerns related to continued long term stability of these older stands. Mature pine, Douglas-fir and spruce stands are prone to beetle infestations and fires than younger stands and, if left unharvested for long, may be lost to these natural forces. It appears that for at least the next several decades catastrophic infestations and fires in these older stands will remain very real possibilities and a concern to forest managers.” 44

The following graph outlines the current TSA age profile by leading species.

Figure 6 TSA current age and species distribution45

44 Merritt Timber Supply Area Rationale for AAC Determination. Ministry of Forests, January, 1996, p. 14. 45 TSR 4(Forsite, 2010)

October 24, 2011 42


0

50,000

100,000

150,000

0 1 2 3 4 5 6 7 8 9

Age Class

Are

a (h

a)Deciduous

Fir, Larch

Cedar, Hemlock

Spruce, Balsam

Pine

The Silviculture Strategy (Type 2) Strategy (Timberline, 2007) further confirmed that an inventory age gap exists on the THLB essentially in the 31 to 60 year range. The Type 2 reviewed the base case with MPB harvest sensitivities to best understand silviculture management options and support innovative ways to mitigate the continued MPB losses in late seral age classes. TSR 4 analysis stated “the age class distribution of the majority of the THLB becomes more and more evenly distributed, over time, due to harvesting a more-or-less constant number of hectares each year. In the far future the age class distribution of the THLB becomes concentrated within the age classes under 70 years old. These stands are those that are harvested and re-harvested with minimum harvest ages less than 70 years. Some stands in the THLB end up with very high minimum harvest ages and these stands become very old. This is an artifact of the stands dynamics associated with the MPB modeling assumptions.” “In the long term, the modeling of natural disturbances within the non-THLB (NHLB) stands creates a relatively uniform age class distribution. The average rate of natural disturbance is approximately 318 years, so a uniform age class distribution would take approximately 318 years to develop, which has not yet completed during the TSR 250 year reporting period.”46

46 See TSR 4 Analysis Report, (Forsite, 2010), for age class distribution snap-shots over reporting period

October 24, 2011 43


The NSIFS will continue to look at the current inventory and monitor for potential changes in seral stage distribution as a result of the MPB epidemic. The NSIFS is proposing remeasurement of VRI plots to better understand the degree and distribution of MPB impacted stands. Implementation would be subject to approved funding.

10.3.2 Forest Inventory and Timber Supply

The Merritt TSA supports a wide array of values, each with various issues and opportunities. The NSIFS will develop innovative approaches related to monitoring and integration of new inventory results into spatial timber supply analysis. Many areas of key focus are related to local expertise and comments from TSRII. In TSR 2003, the Ministry of Forests Timber Supply Review stated, “An audit conducted in 1998 found the inventory statically acceptable …an average volume underestimate of 6 percent in stands over 60 years of age. For immature components of the inventory (younger than 60 years) the audit indicated that site index derived using inventory heights and age was significantly (more than 3 meters) lower than ground-measured site index for almost half the stand sampled. Site index information has been adjusted by NSIFS. New estimates have been incorporated in the NSIFS AAC application and reflected in the July 2003 AAC determination. The NSIFS will continue monitoring these estimates and their relation to the increase in the TSA AAC levels. 2009 VRI Statistical Adjustment, TSR 4 Sensitivity. The results of the 2009 VRI phase 2 adjustments indicated some stands were under estimated in the forest cover inventory while others were over estimated.47 The TSR 4 Base Case sensitivity using the adjusted VRI values and VDYP7 reflected a large increase in the young (<121 year old) pine stands (see figure 7). The initial harvest rate was increased by 10 years versus 6 in the Base Case. This results in an increase of the short-term volume harvested by 9.5%, in turn increasing the mid-term fall down (i.e. the total volume harvested is decreased by 4.9 %), and the change in long-term harvest flow is negligible 0.4%.48 The NSIFS proposes remeasurements of the VRI plots as many of them were established prior to 1999 and do not reflect the current extent of MPB impacts. Upon further VRI work to account for MPB impacts, the NSIFS will update their inventory and ensure this information is incorporated into future timber supply analysis.

47 Documentation of Analysis for Vegetation Resources Inventory Statistical Adjustment (Jahraus and Associates, 2009) 48 TSR 4 (Forsite, 2010)

October 24, 2011 44



0.000

1.000

2.000

3.000

0 5 10 15 20 25Decades from present

Har

vest

(MM

m3/

yr)

VRI projected_1

Base Case 2008

VRI projected_1 (grey line)Initial harvest of 2.81 MM decreasing to 1.81 MM in year 11decreasing to 1.64 MM in decade 4decreasing to 1.50 MM in decade 5increasing to 1.64 MM in decade 10

Base Case 2008 (heavy solid line)Initial harvest of 2.81 MM decreasing to 1.81 MM in year 7 decreasing to 1.58 MM in decade 5 increasing to 1.65 MM in decade 12

In addition, the NSIFS will continue to work with FLNR to monitor site productivity estimates for Smallwood stands, Lodgepole pine and Douglas fir stands to support existing AAC increase. New information will be utilized for inclusion in future NSIFS AAC analysis subject to fiscal funding levels.

10.3.3 Seed Selection and Reforestation Practices

The NSIFS has developed historic silviculture reforestation practices for the licensees in the Merritt TSA to further understand the AAC opportunities related to genetically improved seed stock and regeneration delay. In TSRII the Chief Forester stated, “ …based on current levels of select seed use, it is estimated that long-term timber supply would be 2.1 percent higher than that in the base case. The NSIFS will continue to monitor licensee reforestation practices, specifically stocking levels and superior seedling reforestation practices to ensure green up and free to grow target estimates used in the 2003 IFPA AAC analysis are accurate. New information related to stocking levels, green-up adjustments and free to grow targets will be incorporated into future timber supply analysis. In 2009 it was assumed in the base case for future managed stands that the effective genetic gains (based on tree improvement statistics) were 2% for pine and 13% for spruce. These estimates are an improvement over those estimated for TSRIII where 0.9%-1.2% was used for pine and 3.2% for spruce.49

49 Merritt TSA, TSR 4 Data Package (Timberline, 2009)

October 24, 2011 45


10.3.4 Douglas Fir Forest Management

In TSR 4, the Chief Forester stated, “Dry-belt fir forest types will play a significant mid-term role. I encourage the MNRO, MFLM and licensees to monitor and research the dry-belt Douglas-fir forest types so their level of contribution to the timber supply can be more accurately assessed50”. Several studies completed by Weyerhaeuser and the FLNR to examine the growth & yield of Douglas-fir stands in the Merritt TSA suggest there are significant opportunities in these stand types. There are lots of questions on the role of Douglas fir in mixed species stands and also their role for habitat requirements which lead to different opinions on how to manage for theses forest types. Information available to support changes in Douglas-fir growth & yield and silviculture practices was brought forward in the 2003 NSIFS uplift request. The findings in TSR 4 base case, figure 8, illustrating Douglas fir contribution to the mid-term is further supported by the findings in the enhanced Silviculture Type 2 Strategy for the Merritt TSA51. The NSIFS will continue to monitor Douglas-fir harvest levels, growth and yield estimates and silviculture practices in these stands.


0.000

0.500

1.000

1.500

2.000

2.500

3.000

1 3 5 7 9 11 13 15 17 19 21 23 25

Decade

Har

vest

(MM

m3/

yr)

Cedar/Hemlock

Spruce/Balsam

Fir/Larch

Pine

Contingent on approved fiscal funding, the NSIFS intends to continue research that supports better data to refine Douglas fir yield curves and subsequently better predict their contribution to the mid-term supply. Weyerhaeuser Company Limited and the

50 Merritt TSA Rationale for AAC Determination December 2, 2010 Pp. 25, 26. 51 Enhanced Type 2 Silviculture Strategy Analysis, p. 38 (Timberline, 2007)

October 24, 2011 46


NSIFS have been completing research work focused on better understanding Douglas fir growth and yield since 1997.

10.3.5 Roads and Access

Road development and road access provide great opportunities for recreational growth in the Merritt TSA. However, there are differences in opinion on wildlife species habitat requirements and the opportunities or impacts related to developing roads and maintaining road access. Subject to funding, the NSIFS is looking to incorporate licensee and BCTS SFMP reported data on in-block roads to support analysis that better estimates impacts to the THLB from future roads and landings over the TSA. Also, NSIFS is proposing an integrated road, landing and trail inventory project utilizing previous research, operational data and new field surveys that would support better road net down data for analysis of existing roads, landings and trails.

10.3.6 Mountain Pine Beetle

Background

The Mountain Pine Beetle (MPB) (Dendroctonus ponderosae) is the most destructive insect of pine forests in western North America52. In spite of the efforts from licensees and the FLNR, the problem in British Columbia and its impact on all resource values continues to escalate. This places the long-term survival of susceptible pine trees in jeopardy and increases the downward pressure on the mid-term harvest levels as a large component of the TSA is comprised of susceptible host trees. Since the 1970’s, (figure 9) the Merritt TSA has experienced several mountain pine beetle outbreaks of varying magnitude. There has even been some mention of epidemic beetle outbreaks in historical records from the early 1900’s. Generally these outbreaks were confined to a limited number of watersheds over a relatively short period of time and did not affect the entire TSA at once. There also appears to be a trend where each subsequent outbreak becomes more significant in size than the previous outbreak, which may be linked to the aging of the extensive pine forests within the Merritt TSA. Another factor influencing mountain pine beetle populations is the changing climatic conditions in which winters have tended to be milder and summers being drier leading to increased drought stress of trees.

52 Susceptibility of Lodgepole pine stands to Mountain Pine Beetle; Testing a Rating System. T.L. Shore, I. Safranyik, and J.P. Lemieux.

October 24, 2011 47


Figure 9 Area of pine killed by Mountain Pine Beetle in the Merritt TSA Up to 1999

Area of Mature Pine Killed by Mountain Pine Beetle in the Merritt TSA by Year

0

2,000

4,000

6,000

8,000

10,000

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

Year

Are

a (h

ecta

res)

Mature pine, Douglas fir, and spruce stands are more prone to beetle infestations and fires than younger stands. As these stands age they become increasingly more vulnerable and susceptible to these natural processes. TSR4 base case applied a 143,626 m3/yr for years 41+ and 74,785 m3/yr for years 0-40 for non-recoverable losses. MPB NRLs is projected to make up 48% of the total losses in the 41+ years planning horizon, see table 14 below.

Table 14 Non-recoverable losses during the Base Case planning horizon

Disturbance Agent

Annual loss for years 1 to 40

(m3/yr)

Annual loss for years 41+ (m3/yr)

Spruce bark beetle 25,000 25,000 Wind 18,565 18,565 Fire 31,220 31,220 Mountain pine beetle 0 68,841 Total 74,785 143,628

Note that the annual unsalvaged losses above donot account for the losses associated with immature stands. The recent history of MPB is illustrated in Figure 1053. Three distinct MPB outbreak periods are evident (1, 2 &3). The second outbreak period occurred mainly within the Southern part of the TSA. Several watersheds, primarily in the south of the TSA, were experiencing exponential beetle expansion. Despite allocating 100% of the harvest effort towards the salvage effort for several years, the beetle population was continuing to expand at a rapid rate. Recognizing the urgent situation that was developing and that more harvesting effort were required, an uplift of 550,000 m3/yr was approved for the period of 1999-2001. The uplift allowed for increased and aggressive levels of harvesting in MPB-infested stands to occur and by 2002, the number of beetle infestations within the TSA had returned to a level that were manageable within the existing AAC’s of licensees.

53 Merritt TSA MPB information supplied by the Merritt MoF 2004.

October 24, 2011 48


Figure 10 History of mountain pine beetle in the Merritt TSA from 1991 to 2004, howing area affected.

The exponential spread of the MPB identified in the 2004 and 2005 overview mapping, prompted the Chief Forester to approve an increase in AAC over the next 5 years of 1,000,000 m3 per year of which 500,000 m3 was approved and managed through 6 IFPAs. In an innovative approach to coordinating the TSA and IFPA MPB uplifts, the NSIFS licensees and BCTS annually monitor, and report collectively their progress on MPB harvest and mitigating the MPB spread. This was in support of the Provincial government MPB Action Plan to mitigate the impacts of the beetle on the forest values, communities and the economy in the short term, and to implement measures to ensure their sustainability in the long term.

By 2006, the spread and severity of the MPB infestation was indicative of an extended outbreak. The large component of Pine in mature age classes exposed to mild winters and dry summers provided favorable conditions for the MPB and placed all mature pine stands at risk. Other factors that influenced the spread included unmanaged infestations from private lands, municipal properties, parks as well as the economic impact to licensees as a result of the continued downturn in softwood lumber exports.

NSIFS MPB Modeling

In Forestry Plan 2 (2005), it was discussed that the MPB infestation would peak within the next 6 years based on Provincial models, figure 11. The NSIFS applied further modeling to account for an aggressive rate of spread, the modeling predicted that the AAC uplift volume would mitigate the beetle epidemic down to a level, which could be managed with the current AAC by approximately 2008-2009. The NSIFS predictions were based on the experience gained during the period of the last volume uplift for MPB (1999-2001) in the Merritt TSA where by the AAC had a dramatic effect reducing the volume impacted by the MPB. No

October 24, 2011 49


increase in AAC was also modeled and results showed continuing exponential growth of the epidemic consistent with the MOFR modeling, figure 12. The licensee modeling illustrated that the IFPA AAC uplift will support the expeditious harvesting and consumption of MPB volumes and has potential to reduce or slow the exponential spread forecasted in the MOFR models as shown in figures 11 and 12. This in turn would extend the time in which it will take the MPB to consume the mature pine component.

Figure 11 MOFR models projecting annual Pl volume killed on the THLB in the Merritt TSA 54.

A nnual Vo lume Killed o n the T H LB in the M errit t T SA

-

2

4

6

8

2004 2010 2016 2022

Ye a r

Vol

ume

(mill

ions

m^3

)

No BM @ Current Cut

BM @ Current Cut

BM @ Double Cut

Figure 12 MOFR models projecting cumulative volume killed on the THLB in the Merritt TSA.

Cumulative Vo lume Kille d o n the THLB in the Me rritt TS A

-

20

40

60

80

2004 2010 2016 2022

Y ear

Vol

ume

(mill

ions

m^3

)

No BM @ Current Cut

BM @ Current Cut

BM @ Double Cut

54 M. Eng MoF MPB Predictive Spread Model Fall 2004.

October 24, 2011 50


Current Situation and MPB Strategy Consistent with the licensees’ 2005 prediction on annual volume impacts peaking in 2008/2009 figure 1055 illustrates the annual spread of MPB infestation dropping by 8% in 2009 and about 60% in 2010 from its peak in 2008.

Figure 10 MPB Infestation Severity Class 2001 - 2010

0

50,000

100,000

150,000

200,000

250,000

300,000

He

cta

res

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

Merritt TSA MPB Severity

Very Severe

Severe

Moderate

Light

Trace

According to the 2011/2012 Forest Health Strategy, 11 of the 12 beetle management units in the Merritt TSA are currently designated for MPB salvage. Figure 11 illustrates the percent change in total severity classes (moderate – very high) for hectares infested with the MPB between 2001 and 2010. Although the overall severity peaked in 2008, figure 10, on a year – year basis the moderate to v. high severity infection classes saw their biggest increases from 2003 to 2004 and 2005 to 2006. In contrast, the biggest decrease in these classes occurred from 2009 to 2010, dropping by 88%.

Susceptibility Ratings Identifying stands susceptible to MPB infestation and being able to rate them was significant in developing and updating the NSIFS MPB Strategy. Modeling factors such as stand age, susceptible pine basal area, stand density and location are all consider in this analysis. The 2005-2006 Forest Health Strategy identified 33% (372,196 ha) of the pine stands in the moderate to high susceptibility class. By 2010, this number had dropped to 25 % (284,275 ha).

55 Courtesy of the Cascades Forest District, Martin Ponsioen, Forest Health Specialist

October 24, 2011 51


Figure 11 MPBAnnual Change in Total Infestation for Mod – V.High Severity Class

MPB Severity Trend 2002-2010

-150.00%

-100.00%

-50.00%

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

300.00%

350.00%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

% C

hang

e (h

ecta

res)

Moderate - Severe MPBClass

What Made it Work In 2005, the TSA Licensees took a different approach in the interpretation of the beetle overview flight information. Through the use of the overview information refined with local knowledge, licensees have quantified and qualified the current MPB outbreak into two categories; 1) heavily infested pine stands 2) high risk pine stands (outlined in Table 656).

1) Heavily infested pine stands are infested at an intensity of greater than 200 green attacks per 20 ha area. At these infestation levels, dramatic expansion into new areas is possible and for this reason it is preferred that these stands be harvested prior to the next beetle flight. All stands falling into this Category 1 would be prioritized for harvest dependent upon numerous criteria including percent green (current) attack in stand.

2) High risk pine stands are infested at an intensity of 1-200 green attacks per 20

ha area and are located within 2 km of either a currently or past heavily infested stand. Although the infestation levels are low, the infestations must be increasing at an exponential rate (e.g. green/red ratio’s greater than 4:1) as

56 Table developed by Licensees and Merritt Forest District TSA Operational Uplift Committee.

October 24, 2011 52


this category is not meant to capture endemic or stagnant infestations. Many stands in Category 2 may be elevated to Category 1 after the next beetle flight. These stands would then be prioritized for harvest with existing Category 1 stands.

This interpretation translates overview flight information of hectares affected into estimates of volumes of priority beetle stands requiring harvest. While the licensee information is applicable to a short time frame looking forward, it does quantify the problem from an operational perspective, which allows for a better understanding of the deficiency of AAC to allocate to the problem MPB Strategy Results to Date IFPA licensees have been diligent in following the MPB Strategy, often increasing harvesting and utilizing uplift volume to reduce beetle numbers and keep unsalvageable losses to a minimum. The following table illustrates the history of IFPA licensees’ percentage of AAC and uplift committed to salvage efforts on MPB impacted stands. Table 15 Annual Harvest Volume Merritt TSA IFPA Licensees 2006 2007 2008 2009 2010

MPB Heavily MPB Infested 93.4% 93% 90% 92% 81% Pl Volume at Risk 2.5% 3% 8% 1% 0% Blocks >70% Pl N/A 77% 84% 91% 72% HI + Vol @ Risk (MPB) 95.9% 96% 98% 93% 81% Other Other Salvage (mostly Fire

and Sx beetle) 2.3% 3% 1% 3% 19%

Other (green wood) 1.8% 1% 0% 4% 0% Given the history on rapid spread and severity of the MPB, licensees had focused almost exclusively on heavily impacted stands, with little investments made on “at risk” stands. In 2010, harvesting to address Spruce beetle infested and fire impacted stands were carried out shifting some harvest from MPB salvage. During 2006 to 2009, 95.7 % of licensee harvest was focused on high infested and “at risk” pine stands. In conjunction with the MPB strategy, BC Timber Sales, the FLNR, First Nations and forest partnerships all play a role in supporting the Merritt TSA IFPA licensees in maximizing salvage opportunities. It should be noted that small scale salvage, small woodlot licenses, forest revenue opportunities and non-replaceable forest license volumes also contribute significantly to mitigating the impacts of the MPB, but are not accounted for in the above table.

October 24, 2011 53


Innovative Practices In 2005 innovative practices were initiated to immediately respond to mitigating the impacts of the MPB. Although the beetle profile has advanced substantially since then, some of these practices still apply today and innovative methods are being implemented to prioritize attacked stands for harvest and maximize salvage opportunities. The Merritt IFPA Licensees continue to harvest MPB impacted stands as a top priority. The NSIFS is working with TSA licensees to continue developing innovative approaches that promote rapid response and harvesting of MPB infested stands. Currently the majority of Merritt TSA is in Salvage BMUs with some Holding ones in the southeast part of the TSA, and no Suppression (Aggressive BMUs)57. The innovative approach for early detection described below was an efficient way of coordinating and implementing harvest strategies that help control the spread of the MPB infestations during the earlier years of the epidemic. By 2007, many of the BMUs did not require detailed aerial surveys as Lodge pole pine already had red attack component. In addition, by this time licensees had a surplus of heavily infested stands where detailed overview flights were not necessary in prioritizing harvest priorities. Section 2 of the IFPA regulation58 lists the authorized innovative forestry practices and activities that allows for this action. Section 2(a) (i) states that: “(a) the implementation of harvesting methods or silviculture systems that may

(i) increase the total amount of timber available to harvest in the timber supply area over the amount available under standard practices.”

The following innovated practices have and will continue to be done by the NSIFS and IFPA licensees in the Merritt TSA to address mountain pine beetle: 1. Early, detailed detection of priority beetle infested stands.

a. Licensees will conduct early overview flights when the majority of fading attacked trees are visible (approx. July 1-15 when >50% fade will have occurred) and follow up with ground surveys.

b. Overview flights will be conducted over those areas having the greatest risk of outbreak or continued exponential expansion. These flights will be primarily focused in areas with a Holding strategy (not covered by FLNR detailed aerial surveys) where by definition there are higher levels of beetle activity.

57 Based on the MPB EBBMA map, June 15, 2010, http://www.for.gov.bc.ca/hfp/mountain_pine_beetle/maps/ebbma/ 58 See Appendix II Forest Act IFPA Regulations.

October 24, 2011 54


c. Detailed information from overview flights will be available to licensees for use in operational planning as early as July 15 and no later than September 1.

The current regional overview flight information is of insufficient detail for operational planning but provides good direction as to where to focus the detailed aerial surveys. The detailed overview flights conducted by the district have delivered information to licensees late in the year when there is little opportunity to respond with development in time to harvest by the next beetle flight. Also, District flights are only conducted in Suppression Beetle Management Units (BMU’s) and not Holding or Salvage BMU’s. These practices are innovative as they achieve a dramatic improvement in the timeframe of making critical detection information of sufficient detail available for operational planning. By having the detailed information earlier, layout and development can commence providing the best opportunity for an infested stand to be available for harvest prior to the next beetle flight. 2. Maximize the harvest of priority beetle infested stands by critical dates (using a

harvest priority rating system to identify the heaviest infested areas for removal first).

a. Using the detailed overview flight information to quickly develop beetle infested stands.

b. Establish highest priority stands for harvest before the next beetle flight by reviewing newly developed beetle stands and infested development contained within licensees Standing Timber Inventory.

c. Apply available AAC and the IFPA volume uplift towards the highest priorities within the Holding and Suppression BMU’s.

Similar to point 1, majority of the BMUs are now salvage strategy and that the focus for the Merritt TSA is to maximize salvage opportunities. The MPB Strategy is innovative as it supports recovering more value from the volume harvested as the stands will have a higher component of sawlog as opposed to degraded dead wood. This will generate more revenue to both the crown in the form of stumpage, and licensees in the form of higher value products.

The current level of cut within the TSA will result in a balance of heavily infested, priority beetle stands going through several beetle flights before being harvested. This will result in negligible beetle management, increased levels of infestation in surrounding stands, lower value wood being harvested and an increase in unsalvaged losses. Post 2005, several studies were conducted on the shelf-life of MPB impacted stands across BC through MOFR and SIBAC research. Further work on lumber recovery in the Princeton area looked at the change in log grade recovery since year of attack. The data provided a unique approach in modeling for shelf life in the TSR 4 base case that presumably best reflected stand harvest priorities and harvest flows.

October 24, 2011 55


The NSIFS will be working more with licensees and the FLNR to further improve on innovative approaches that better account for the shelf life of pine, and subsequently better understand its affects on the timber supply.

Since 1999, the annual milling capacity within the TSA has increased from 1.8 million cubic meters to over 2.0 million cubic meters. This increased and available TSA milling capacity supports the NSIFS’s innovative approach to expedient harvesting of MPB infested stands. 3. Improve silviculture performance on areas within the TSA affected by beetle.

a. NSIFS licensees are committed to reduce regeneration delays. TSR 3 applied an average of 3.4 years for regen delay, TSR 4 applied 2-yr regen delay for clearcut stands, 0 yrs for STS stands assuming 75m3/ha residual volume is left after each harvest (Supported by licensee SFMP reporting and MoFR check)59

b. NSIFS licensees will actively manage and regenerate under licensee free growing obligations the areas which had stands that would otherwise have been written off as a non-recoverable losses and left to regenerate with questionable success.

The uplift in AAC to the NSIFS licensees will result in areas being reforested sooner than if harvested through NRFL’s. The opportunity for NSIFS members to mitigate, enhance and protect other resource values by expedient harvesting of MPB and prompt silviculture practices is enabled with immediate on-the-ground harvesting, and increases the ability to deliver the yields based on predicted MSYT’s. An added benefit will be an upward pressure in mid to long-term timber supply relative to a strategy that allows high non-recoverable losses. Details of activities for incorporation into uplift application in support of the innovative practices are outlined below: 4. Forecasting beetle spread on an annual basis by analyzing:

4.1. Current attack populations, locations, intensity; coupled with stand susceptibility;

4.2. Current harvest activity within MPB affected and susceptible areas;

4.3. Stand susceptibility (e.g. target stands with >40& pine);

4.4. Informed opinion on spread patterns (FLNR, CFS, industry, others); and

4.5. Build a monitoring or feedback process to track actual spread vs. predicted and adjust forecasts accordingly (part of on-going NSIFS MPB Strategy).

5.0. Building a coordinated beetle response and management strategy for the TSA that is

repeatable annually based on forecasted and actual beetle spread (part of on-going NSIFS MPB Strategy).

59 Merritt TSR 4 Data Package, p.26 (Timberline, 2009)

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6.0. Identify heavily infested stands in holding and suppression BMU’s that are high

priorities for harvesting or offer sufficient opportunity for delaying harvest until after subsequent beetle flight through a harvest priority system based on;

6.1. risk to surrounding stands from a cutblock should harvesting not occur prior to the next beetle flight.

6.2. risk to be determined by the green attack infestation levels, rate of population growth, adjacent stand MPB hazard.

6.3. Highest priority stands are Category 1 stands with the highest infestation levels with extensive areas of high hazard pine stands in close proximity.

7.0 Identify biodiversity features or standards at risk as a result of beetle spread, with

recommended actions to mitigate the threats. 8.0 Develop a “roads ahead program” to support road construction and access plans to

accelerate harvesting operations providing that there is available AAC above needs to address heavily infested stands requiring harvesting (this is currently incorporated into the NSIFS MPB Strategy).

9.0 The NSIFS has been preparing an Annual Beetle Management Strategy and

Operational update reporting process for:

9.1. Harvest plans and summary of beetle priority volumes;

9.2. Current spread and population information;

9.3. Information improvements from the past year;

9.4. Roads ahead strategy update;

9.5. Summary of previous years salvage performance; and

9.6. Planned harvesting and year ahead outlook

The NSIFS model works closely with First Nation’s representation in all NSIFS activities and the innovative new approaches to develop sustainable forest management practices that incorporate First Nation’s values in an increased AAC. Society members are actively involved in the development of co-management planning regimes, where First Nation’s resource values are identified, respected and incorporated at the onset of planning. Working with First Nations partners through IFPA licensees and representatives on the NSIFS TAC, provides an overview to First Nations on MPB issues and subsequently opportunities for them to participate in managing forest resources. Our co-management of forest resources has lead to an expedited process allowing for prompt harvest operations in the MPB infested pine stands while respecting First Nation’s values. The NSIFS will continue to work with First Nations to develop innovative approaches related to MPB issues and to promote rapid access to MPB infested stands.

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The IFPA licensees are committed to continuing with the MPB Strategy and current innovative practices that support First Nation’s co-management of natural resources. These are integral to maximizing salvage opportunities and mitigating beetle impacts while respecting and protecting First Nation cultural – heritage values. Just as significant, is the continued work with First Nations, the FLNR, MOE, IFPA licensees, and BCTS in updating our land base data and forest practices in ensuring the best management of the Merritt TSA timber supply. TSR 4 incorporated some of the best a latest data available on current and forecasted MPB impacts, including “age since death” shelf life data in developing the TSR base case. The NSIFS will be monitoring timber supply conditions carefully to minimize the impacts to the mid-term timber supply. It is important that the AAC level is maintained at a level that best minimize the shortfalls of the mid-term timber supply; and to sustain a long-term harvest level that reflects managed stand yield projections and non-timber management objectives60.

10.3.7 Smallwood Licenses

The 1995, AAC determination identified an opportunity to manage Smallwood pine stands categorized as problem forest type for timber supply. From the 1995 determination, 250,000 cubic meters were classified as Smallwood and another 62,000 cubic meters were classified as big Smallwood and partitioned for harvesting. In TSR II the Chief Forester stated, “..many of these stands are defined as having a site index less than 14 with less than a 3 height class”61. Limited site productivity information is available for these regenerating stands that comprise a significant portion of the Merritt TSA. The NSIFS included site productivity estimates for Smallwood stands in the 2003 analysis package. In April 2007, the MOFR approved the NSIFS program methods to sample smallwood lodgepole pine.During 2007, plots were established, measured and site index was reported as an audit of the “potential site index” used in the uplift application. The findings indicated there was no evidence that the field SIs from the sample were different from the PSIs used in the 2003 AAC Uplift Application62. Current silviculture practices in Smallwood non-renewable tenures are replacing Smallwood problem forest stands with viable forests. These newly forested stands appear to have higher than anticipated site productivity. Subject to funding, NSIFS will continue to monitor site productivity on these new stands in an effort to generate updated site index estimates to support future AAC gains for the TSA.

60 TSR 4 Base Case Harvest Flow Objectives, Merritt TSA TSR 4 (Forsite, 2010) 61 Merritt TSA Rationale for AAC Determination January 1, 2002 Page 12. 62 Smallwood Population Site Index Audit (Timberline, 2008)

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10.3.8 Forestry/Range Interactions

A number of issues relating from impacts of cattle grazing on reforestation programs, to cattle damage on stream banks, spread of invasive alien plants and the encroachment of the forest on the grasslands have been identified as important issues in the TSA. Subject to funding, NSIFS will develop projects to understand the issues and opportunities related to overlapping range and forest tenures specifically related to silviculture obligations and impacts from invasive plant species. New information will be linked with the PEM dataset to develop spatial analysis tools to determine impacts to green-up and free to grow estimates that will be incorporated into future timber supply analysis. Little integration of data between the NSIFS and FLNR Invasive Alien Plant program has occurred to date. Subject to funding and access to FLNR data, the NSIFS will work with the FLNR and the Thompson-Nicola Regional District to develop processes to link the Invasive plant database with the TSA PEM database. The combined data will support the development of strategic and stand level management practices within the Sustainable Forest Management Strategy in an effort to mitigate negative impacts from invasive plants on biodiversity, forage production for domestic and wildlife species and on green up and free to grow targets.

10.3.9 Visual Quality Objectives

The traveling corridors throughout the Merritt TSA provide visitors and locals with spectacular viewscapes. These sites support new opportunities in economic growth in tourism, recreation and outdoor sporting activities. Many of the visually sensitive areas are associated with travel corridors, communities and recreational use areas. The accessibility, recreational appeal and increase of recreational developments in the area make visual quality an important consideration in forest management planning. The identification of VQOs has been established for the TSA, including all the classified lakes. The NSIFS supports efforts to determine and outline visually sensitive areas to support economic growth in the TSA and will work with the FLNR to support minimizing impacts to VQOs from MBP harvesting areas. The Chief Forester’s comment regarding visually sensitive areas in TSR 4 stated, …. in subsequent timber supply reviews, I request that the visual quality requirements used for the timber supply review consider the cumulative effect of harvesting over the entire forecast period and reflect the advice provided by visual management experts.” Subject to funding, the NSIFS will incorporate the cumulative effects of harvesting over the entire harvest projection and work closely with FLNR experts in consideration of future timber supply reviews.

10.4 Environmental

Many environmental issues link to forest management issues and have direct consequences on sustainable harvest levels and access to timber. In better understanding environmental values, issues, and relationships to timber and non-timber resources, the NSIFS established a PEM data base to support strategic and stand level management practices. In 2007, the NSIFS began integrating resource features to support spatial planning of timber and non-

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timber land features. By 2008, the NSIFS had developed their Sustainable Forest Management Strategy (SFMS) database that with access to 166 plant and wildlife habitat models. The SFMS provides both reporting and spatial functionality utilizing latest forest development plan, ecological, MPB and base mapping data. The SFMS supports both licensee and First Nation interests in understanding potential habitat impacts resulting from MPB salvage strategies. The NSIFS operates SFMS from their website and has provided class room training annually to licensees, BCTS, FLNR and First Nations on use and benefits of the web-based spatial tool. The NSIFS is currently updating their SFMS platform to coincide with their previously completed SIBAC website at http://nsifs.webfactional.com/ . It should be noted that the NSFIS members financially support all website development and maintenance related to the NSIFS data and web tools, as these components were never eligible for funding through government funded programs. The SFMS database is only partially complete, as one of the primary objectives is to recognize cultural values over the Merritt TSA through the database. Enough cultural models have been completed by Merritt TSA First Nations to start developing innovative approaches with First Nations on incorporating cultural information into the SFMS. This will subsequently support all harvest planning, and to a greater degree support First Nations in managing their cultural values through use of traditional ecological data they developed. Subject to funding, further work on resource management issues will be identified and habitat modeling using PEM will be expanded to further support innovative approaches to forest planning in an effort to increase access to the forests, while integrating a number of non-timber interests. A short summary of these issues and innovative approaches the NSIFS plans on undertaking is as follows:

10.4.1 ESA

FLNR District staff have indicated that more sophisticated methodologies of surficial geology mapping and terrain hazard mapping are necessary to accurately locate problem soil areas that should be exempt from harvesting. There is reason to expect that the greater precision offered by these mapping processes will lead to the inclusion of more areas in ESAs. However, it is also possible that certain areas now included in ESAs will be returned to the timber harvesting land base. Terrain stability mapping has lead to the reduction of the operable land base by approximately 40,000 ha. In TSRII the Chief Forester stated, “..it is reasonable to expect that the values and risks associated with ESA2s can be accounted for by appropriate management action through either exclusion or modification of harvesting”63. During TSR 4, the NSIFS incorporated newer terrain stability mapping where it existed in the Merritt TSA. In TSR 4 the determination, the Chief Forester stated, “…the

63 Merritt TSA Rationale for AAC Determination January 1, 2002, p.12

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assumptions used in the base case for environmentally sensitive areas based on the forest inventory result in a 0.5 percent underestimation in the size of the THLB.”64 The Chief Forester goes on to suggest further work on terrain stability mapping in order to improve estimates of the land base available for timber harvesting and other strategic and operational planning purposes. Subject to funding, NSIFS will incorporate any additional terrain stability information that supports future timber supply analysis.

10.4.2 Stand-Level Biodiversity

The TSR 4 base case accounted for the following stand-level requirements: wildlife tree retention, coarse woody debris retention, and a 15 m3 per hectare on-block Douglas Fir retention. The resulting assessment by the Chief Forester was a 1 percent overestimation of the THLB in TSR 4 analysis based on FREP monitoring data. The Chief Forester encouraged further work with First Nations with respect to their concerns about wildlife tree patches. The NSIFS believes more work needs to be done to better account for future WTPs. FREP monitoring data was based on blocks not managed under FRPA or with spatial OGMA’s designated across the TSA65. Subject to funding, the NSIFS proposes conducting a TSA-level inventory on WTPs to better understand WTP net downs and work closely with First Nations in understanding their WTP retention concerns.

10.4.3 Protected areas

There are a number of proposed Protected Areas of interest that have been defined within the Merritt TSA for a total of 31,600 hectares in the THLB66. Until these areas are officially established impacts to land use designation cannot be speculated. The NSIFS will continue to monitor the agencies’ work with Protected Areas and new information will be included in future AAC analysis to capture changes to the land base.

10.4.4 Identified Wildlife and Plants (red, blue listed species and species of interest)

Management issues that require special attention include the loss of habitat for red, blue, Species at Risk (SARA) and local species of interest of plants and wildlife. The Cascades Forest District has 52 Red, Blue and legally designated plant and wildlife species67. To date, 60 WHAs have been established in the Merritt TSA68. The provincial goal is to limit WHA impact on timber supply to 1 percent.

64 Merritt TSA, Rational for AAC Determination December2, 2010, p.11 65 TSR 4 Data Package Issues, Merritt TSA, (Timberline, 2009), p.4 66 Merritt TSA Rationale for AAC Determination January 1, 2002, p. 14 67 BC Species and Ecosystems Explorer; http://a100.gov.bc.ca/pub/eswp/ current to July 21, 2011 68 Merritt TSA, Rational for AAC Determination December2, 2010, p. 15

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The North Cascade Grizzly Bear Recovery Plan includes a significant part of the western portion of the TSA. Road access and potential impacts to THLB will be considered as new Grizzly Bear information becomes available. The NSIFS is currently developing spatial models defining wildlife habitat suitability and capability by utilizing the PEM database for the Merritt TSA. The intent of developing these spatial models is to create stand level planning approaches to minimize THLB impacts to 1 percent. NSIFS will incorporate spatial habitat models into strategic and stand level harvest scenarios to support improved management of identified wildlife and plants in the TSA. It is not anticipated this will support future AAC increases or decreases but updated spatial data will support better management and access within the THLB. Subject to funding, the NSIFS will also be look at completing BEC revisions over the Merritt TSA and update the existing NSIFS PEM.

10.4.5 Ungulate Winter Range

Large areas of the TSA have been identified as ungulate winter range through efforts of the NSIFS and MOE. Updated planning and mapping of ungulate winter range planning cells have been developed for mule deer and have been incorporated in the recent TSR 4 analysis. The NSIFS will continue to work closely with the MOE on future refinements of UWR mapping for mule deer and inventory mapping and management guidelines for other ungulate species in the Merritt TSA.

10.4.6 Community Watersheds

The Merritt TSA contains 10 designated community watersheds that cover 1.6 percent of the THLB69 (see figure 12). Subject to funding, NSIFS will monitor ECA and green-up within these watersheds as MPB harvesting creates changes therein. NSIFS will utilize PEM to develop innovative mapping techniques that in turn will be used to recommend and develop innovative approaches to reduce impacts within community watersheds. The NSIFS is currently working closely with the MOE on opportunities of modeling hydrological risks on watershed resource values. The intent of the modeling is to establish a prioritization tool upon which further, more detailed assessments can be completed to protect timber and non-timber resources.

10.4.7 Hydrological concerns

The NSIFS continues to focus on addressing hydrological concerns within the Merritt TSA. In March 2011, the NSIFS participated in a workshop in Merritt on hydrological changes in the Nicola Watershed. This was a collaboration of responses from a variety of stakeholders and government agencies on issues regarding management of water resources, understanding current management practices, and discussions on future ones.

69 Merritt TSA, Timber Supply Review 4, (Forsite, 2010) p.12

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Similar for Community Watersheds, the NSIFS is working closely with the MOE to develop a hydrological overview risk model to understand the watershed values (social and environmental). Results of the model will facilitate planning with licensees, First Nations, stakeholders and government agencies to identify sustainable water management strategies and practices. Also, the results of the modeling will provide inventory and spatial data to consider in future timber supply analysis.

Figure 12. Map of Community Watersheds in the Merritt TSA

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10.4.8 Riparian Management - Temperature Sensitive Streams

The NSIFS will be working with licensees, First Nations and MOE to better understand retention practices for riparian management and consider new information on designated temperature sensitive streams for future timber supply analysis.

10.4.9 Fisheries

One red-listed species, the Umatilla dace (Rhinichthys Umatilla), is found in the Similkameen River and is considered rare within the Similkameen Watershed. Blue listed species, the chiselmouth, bull trout, and mottled sculpin, exist within the TSA. The Thompson River summer steelhead run is a major conservation issue within the region. These stocks spawn in the Coldwater and Nicola rivers and to a greater extent in the tributaries of these two systems. Coho, chinook, and pink salmon spawn in tributaries of the Fraser River. Coho salmon are very sensitive to land use practices since their habitat is usually small side streams. High value fish-stream systems are Nicola River, Nicola Lake, Thompson River, Coldwater River, and associated tributaries. Rainbow Trout populations in watersheds such as Willis, Whipsaw, Siwash and Lawless are vulnerable to environmental changes. Subject to funding, NSIFS will incorporate new fish and riparian inventory information in future analysis.

10.4.10 PEM

The NSIFS relies on the latest base mapping information to complete analysis, inventories and identify issues and priorities. Contingent on funding and availability of latest BEC revisions, the NSIFS will update their PEM map base.

10.5 Tourism

The Coquihalla Highway and the Okanagan Connector have increased the accessibility to the TSA. Merritt receives roughly 500,000 visitors per year. While the Princeton-Hedley area receives fewer visitors, outdoor opportunities, coupled with the area ghost towns including Allenby, Granite City and Blakeburn, attract many visitors. Due to reduced travel time to the Lower Mainland and lower cost of housing retirees are making this area their home. Increased construction activity has created an expansion of Merritt’s accommodation and restaurant facilities to cater to the increased traffic. VQOs in the Merritt TSA have been approved and VQOs for inside lakeshore management zones for Class A, B and C lakes have been formally established by the MOFR Cascades

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District Manager70. The NSIFS has incorporated known VQOs into the current AAC analysis. NSIFS will incorporate new information in future analysis.

10.6 Community

The Merritt TSA has a resource-based economy with forestry, mining, and agriculture as important sources of employment and income.71 While provincial government revenues generated from local forests are estimated to be $36.9 million a year72, TSA residents continue to experience low average incomes, and high unemployment rates. Unemployment on First Nations’ reserves commonly exceeds 60%. The development of the Coquihalla and Okanagan Connector highways has opened the area up to increased economic growth for the tourism, but, has also increased operation constraints on the Timber Harvest Land base. At the same time, the TSA’s major communities of Merritt and Princeton are formulating strategies to diversify their economy, which includes promoting value-added manufacturing, recreation and tourism opportunities. The communities of the Merritt TSA depend on the forest sector to support economic stability. The NSIFS has generated an increase in the AAC and the economic returns from this will support increases in long and short term employment in the TSA. The Society supports employment opportunities to all groups in the TSA including meeting the NSIFS share agreement73.

10.7 Cultural Heritage Values and Archaeological Resources

Cultural Heritage Resources refer to archaeological and traditional use sites in which there is physical evidence (artifacts) of past human existence. The Merritt TSA has a rich cultural history. To date, over 700 archaeological sites have been identified in the area74 compared to 300 in 200275. In addition, the TSA is home to a number of traditional First Nations travel corridors and historic fur trading routes that make up numerous cultural and heritage trail systems within the area including the Hudson Bay Brigade, the Hatch, the Dewdney and the Hope Pass. The NSIFS has supported Archeological surveys and mapping of key cultural trails in the northern half of the TSA and will incorporate this information with other cultural information in the Sustainable Forest Management Strategy to support spatial management of this historic value. To date, the NSIFS has worked extensively with nine First Nation bands to complete full coverage archaeological overview assessments across the Merritt TSA. More impressively, First Nation bands and the NSIFS have established data share agreements for managing intellectual property and sensitive cultural-heritage data. This lead to the first of its kind breakthrough, whereby the provincial government recognized the agreement and

70 Merritt TSA Rationale for AAC Determination January 1, 2002. 71 January 1995. Robinson Consulting & Associates Ltd. Merritt Timber Supply Area Socio-Economic

Analysis. Prepared for the Economics and Trade Branch, British Columbia Ministry of Forests. 72 Summary of stumpage paid by each licensee for 2003 fiscal. Information supplied by each licensee and

summaries by Nesoo Watchie Resource Management July 28, 2004. 73 NSIFS Share Agreement Appendix 5 – new share agreement under development. 74 Merritt TSA Rationale for AAC Determination December , 2010 75 Merritt TSA Rationale for AAC Determination January 1, 2002.

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management protocols to approve FIA funding in support of cultural modeling in the Merritt TSA. Innovative Approach in Managing for Archaeological and Cultural Values The NSIFS plan to incorporate First Nations’ cultural values beyond the existing practice of referrals and consultation started in 2002 with First Nations training and work on completing interim ecological models with plant and wildlife biologists. Between 2002 and 2007, First Nations completed 167 interim plant and wildlife models. These models were finalized through field checks in 2009 and incorporated into the NSIFS sustainable forest management strategy (SFMS). Today, the NSIFS continues working with First Nations in a new chapter of plant and wildlife modeling, utilizing the existing ecological models. Through the NSIFS Technical Advisory Committee, First Nation bands have a significant role in selecting plant and wildlife species for cultural modeling work. By 2009, the NSIFS completed 42 species models, representing approximately 168 independent species models completed by First Nation bands. The NSIFS believes by having this valuable information organized and integrated into their sustainable forest management strategies it will expedite decisions surrounding harvest planning for both licensees and First Nations. Subject to funding, the NSIFS will coordinate planning and develop methods with First Nations to incorporate cultural resource data to support NSIFS management strategies.

10.8 First Nations

There are six First Nation bands with communities in the Merritt TSA and four other Bands have reserves in the TSA. High unemployment rates exist within the First Nations communities and the NSIFS has developed strategic objectives to support the development of employment and economic opportunities for First Nations in the Merritt TSA. A survey of eight Regional Bands was conducted in order to determine their outlooks and concerns regarding their role in the forest industry.76 Concerns included the current rate of harvest, management practices, the protection of special interest areas and the availability of timber for economic and cultural use. Most First Nation bands expressed interest in becoming more involved in forestry activities including silviculture, harvesting, range use, survey work and, most importantly co-management that incorporated First Nation’s land uses into strategic and stand level planning initiatives. Innovative Approach to Co-management of Natural Resources and the NSIFS SFMS The NSIFS has developed and continues work on spatial modeling of cultural values, recognizing this is a significant step forward in achieving a sustainable co-management environment in the TSA.

76 Merritt Timber Supply Area Socio-Economic Analysis, (January 1995). Robinson Consulting & Associates.

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The NSIFS is currently developing methods with First Nations on incorporating cultural plant and wildlife models into the NSIFS SFMS data base and spatial model. A review of First Nations' resource concerns and objectives has been undertaken with the community elders. Innovative processes are underway that will support the development and implementation of TSA Sustainable Forest Management Strategies in efforts to create co-management planning between Agencies, Licensees and First Nations. Efforts are focusing on:

1. Maintaining support related to the Stuwix IFPA and the NSIFS partnership;

2. Developing a First Nation’s land-use inventory and modeling database leading to TSA strategic and stand level co-management planning with Agencies and Licensees;

3. Participating in the employment opportunities related to the IFPA and the AAC uplift as outlined in the NSIFS Share Agreement77, (see Table 5, p. 24 for summary of employment to date created);

4. Development of a economically viable renewable forest license tenure; and

5. Development of internal capacity to support meaningful participation of First Nations in resource management planning and access to forest sector employment opportunities.

First Nations’ Employment Success through NSIFS Innovative Projects 1998-2009:

• Archaeology Overview Assessment: 3,592 person-days

• Cultural and Ecological Modeling: 9,732 person-days

• Sustainable Forest Management Strategies: 159 person-days

• First Nations Communications Liaison: 492 person-days

It should be noted that about 90% of the funding for the above projects came from government funded programs; the remaining 10% came directly from NSIFS member contributions. Without government funding support there is little opportunity to support First Nation innovative projects and strategies.

10.9 Recreation

The Cascades Forest District manages 90 Forest Service Recreation Sites within the TSA, and maintains 12 trails totaling 107 kms. The Recreation Features Inventory has now been updated and converted to new standards and digital requirements. The major activities are fishing and camping, with canoeing, horseback riding, snowmobiling and cross country skiing, hunting and guiding also being popular pastimes.

10.10 Agriculture/Ranching

The Nicola Valley is one of the best-known cattle ranching areas in B.C. Crown range is used during the months of May-October with animals wintering on private lands. Virtually all Crown range in the TSA is presently committed (94% of the land is covered by grazing tenures). At present, demand for Crown range exceeds the supply. Environmental factors, as 77 NSIFS Share Agreement Appendix 5.

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well as uncertainty around land claims and Protected Areas has led to increased concerns within the livestock industry. Merritt is particularly dependent on the ranching industry. Range management activities in the Merritt TSA are expected to maintain the forage harvesting production target of 125,000 Animal Unit Months (AUMs).

10.11 Ecosystem Management

Ecosystem restoration (ER) is internationally defined as the process of assisting with the recovery of an ecosystem that has been degraded, damaged, or destroyed by re-establishing its structural characteristics, species composition, and ecological processes. Ecosystem restoration is aimed at restoring ecosystem structure and function in order to restore rates of decomposition, nutrient cycling, and net primary production (the amount of vegetative matter produced) to natural levels. It is also designed to reintroduce frequent, low-intensity fire into these ecosystems – a process which regulates the density, species composition, and amount and structure of dead biomass, and promotes nutrient cycling in forested ecosystems. Wildfire frequency and intensity has decreased significantly over the last several decades within fire-maintained ecosystems of British Columbia. Human induced acts of fire suppression, coupled with reduced harvest disturbance have contributed to trees encroaching onto historic grasslands and excessive ingrowth of trees in previously open forests. Province-wide, this ecological change has affected hundreds of thousands of hectares, causing a reduction of ecosystem resiliency to climate change pressures and a host of other related negative trends in open forest and grassland ecosystems. These trends include:

• reductions in available First Nations traditional plants and ecosystem values;

• increased risk of catastrophic wildfire, which includes impacts to air quality;

• degraded native grassland integrity and associated critical wildlife habitats;

• reduced timber quality, and increased susceptibility to insects and disease;

• reduced quantity and quality of forage for wildlife and livestock;

• increased risk to community watershed health; and,

• reduced recreational and aesthetic values.

In 2010, the NSIFS secured federal and provincial funding to undertake ecosystem restoration in the Merritt TSA. The project was a huge success treating over 352 ha of open forest types to restore grassland ecosystems and opportunities to reintroduce manageable grass fires to control larger fuel types. The project employed 25 First Nation workers from June to December 2010, and created 2,584 person-days of employment. The NSIFS will continue to work closely with the Cascades Forest District and provincial ecosystem restoration team leader to prioritize areas in the Merritt TSA for continued ecosystem restoration and funding opportunities.

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10.12 Botanical Forest Products

Botanical forest products include: wild edible mushrooms; floral and greenery products; medicinal and pharmaceutical products; wild berry; fruit; herb and vegetable products; landscaping; and craft products. Numerous botanical forest products have significance to First Nation’s culture. Many of these traditional plants are used for spiritual purposes and some form of protection is required for specific areas. The demand for botanical forest products is expected to increase in the future. In 2002, the Siska First Nation established the Siska Traditions Society. The society uses non-timber forest products combined with traditional ecological knowledge to promote the benefits of native plants. This has become a sustainable economic benefit to the Siska community and their success provides encouragement and opportunities for other First Nations with botanical forest products. Siska Traditions Society provide:

• Jams, jellies and syrup • Herbal teas, • Soaps, and • Healing salves

10.13 Mining

There is a history of metallic mines within the Merritt TSA and mining remains an important source of regional employment in both Princeton and Merritt. While the mining industry has gone through a period of gains and losses due to depressed metal prices, competition from outside jurisdictions and the impact of land planning initiatives on exploration incentives, the overall mineral potential of the area is high. There are two large mining companies in the Merritt area, Highland Valley Copper Mine, and Craigmont Mines and one in the Princeton area, Copper Mountain Mining.

10.14 Summary of Innovative Activities and link to Section 59.1 (6) of the Forest Act

A number of alternative resource management activities and scenarios will be explored to test innovative management practices and help provide further understanding of each. This will include completing a range of both timber and non-timber activities and developing analysis scenarios that are not presently modeled as current management practices, but may be consider by the NSIFS to be of importance to redefine current management practices. Section 4 of the Forestry Plan outlines the management areas where the innovative forest practices and other NSIFS activities will be carried out. Section 10 of the Forestry Plan outlines when each activity will be carried out along with an overview of fiscal funds to conduct each activity. As per Section 59.1(6) of the Forest Act, the NSIFS Forestry Plan III:

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a) Must contain a description of the management area where the innovative forestry

practices or other activities will be carried out (FP III section 4.0);

b) Must specify the particulars of the innovative forestry practices or other activities (titled “Innovative Activity” below);

c) Must contain a description of how the innovative forestry practices or other

activities will be carried out (titled “Process” below);

d) Must contain a schedule of when the innovative forestry practices or other activities will be carried out (FP III section 10.0);

e) Must specify how the innovative forestry practices or other activities will

contribute to improved productivity of the forest resource (titled “Potential Forest Productivity Impacts” below);

f) Must specify how the innovative forestry practices or other activities will justify

an increase in the allowable annual cut of the participant’s license or agreement referred to in subsection (2)(a) (titled “Potential AAC Impacts” below); and

g) May include other terms and conditions that:

i. The Regional Executive Director believes are necessary to effectively carry

out the agreement referred to in subsection (1); and ii. Are consistent with this Act and the regulations and the Forest Practices Code

of British Columbia Act, and the regulations and standards made under that Act.

Note: For the purposes of this document the Regional Executive Director has not specified any additional terms and conditions.

The particular innovative activity with a summary of the above (b, c, e, f) listed points is listed in the following sections.

Manage Stand Yield Tables (MSYT)

a) Innovative Activity – New Silviculture Regimes (FP Reg. 2(e)): i) Monitor licensee silviculture activities and develop new MSYT’s. Section 10.3.3

provides an overview of the NSIFS approach to silviculture practices and opportunities related to genetically improved seed trees.

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b) Process: i) The NSIFS will develop preliminary estimates based on new silviculture practices

that include information such as orchard, genetic gains and proportion of class A seeds planted.

ii) The NSIFS will establish an annual silviculture reporting/monitoring strategy with licensees.

iii) Further work will explore new silviculture regimes that reflect current licensee practices and this information will replace the current regimes for the MSYTs.

iv) Silviculture practices and updated MSYTs will be developed for the TSA that include: (1) New site series defined silviculture regimes based on current management

practices and analysis of practices to determine opportunities in mid and long term timber flow;

(2) Tree improvement information will be obtained from the FLNR Tree Improvement Program. Estimates of genetic gain will be used to develop a new series of MSYTs.

v) Analysis will be completed on this work and linked with field monitoring of reforested stands (RESULTS data) to derive new MSYTs. The NSIFS will continue to monitor licensee reforestation practices, specifically stocking levels and superior seedling reforestation practices to ensure green up and free to grow target estimates used in the 2003 IFPA AAC analysis are accurate. New information related to stocking levels, green-up adjustments and free-to-grow targets will be incorporated into future timber supply analysis for potential increased AAC opportunities.

c) Potential Forest Productivity Impacts:

i) A commitment by licensees to continue new silviculture practices that include rapid reforestation with class A seeds will lead to genetic gains in site productivity.

d) Potential AAC Impacts:

i) Gains in site productivity and changes in green-up and free-to-grow periods will provide AAC opportunities in the mid and long term harvest flow.

Managed Stand Yield Tables

a) Innovative Activity - Monitor Site Productivity and Revise Site Index Estimates (FP Reg. 2(e)): i) Review revised site index estimates using new monitoring information78 within

Lodgepole pine stands, smallwood pine stands, high elevation stands (ESSF) and Douglas-fir (IDF) stands. Section 10.3.2

b) Process:

78 NSIFS has collected new site index and stand yield information through their growth and yield program.

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i) Continue to update and revise monitoring strategies within the Lodgepole pine stands, Douglas-fir, Pl Smallwood and high elevation (ESSF) stands.

ii) Collect/compile/update monitoring information to confirm site productivity estimates used in the last AAC calculation.

iii) Explore new site-index adjustment opportunities in stands not reviewed in the last AAC calculation.

iv) Increase the number of monitoring plots within the site index adjustment stands with stands not previously available (i.e. stands that now fit into the SI (site index) target criteria) due to factors such as age prior to the last AAC calculation.

v) Provide new MYST’s that reflect the latest monitoring data available.

c) Potential Forest Productivity Impacts: i) The NSIFS will continue to update site index information to support changes in

SIA (site index adjustment) estimates for the Merritt TSA, by providing up-to-date information on currently established monitoring plots and by establishing new plots in target stands. SIA is a measure of forest productivity. Any changes to the SIA will directly affect forest productivity estimates. The NSIFS has established 37 PSP for change monitoring inventory, and 30 PSP for smallwood growth and yield monitoring.


i) The SI adjustments provided a large gain for the Merritt TSA AAC calculation in the 2003 analysis package. Adding new information and increasing the number of monitoring plots will reduce the risk inherent in AAC calculations by confirming the actual site index for the target stands. Providing additional SI strategies with new information on SI target stands may result in AAC increased opportunities in Lodgepole pine, Smallwood pine, Douglas-Fir and high elevation (ESSF) stands.

Subject to funding, NSIFS will establish 19 high elevation plots and continue to monitor established plots. As in TSR 4, the NSIFS will apply new SI data in support of future timber supply analysis.

Integration of Biodiversity values into Timber Supply Analysis

a) Innovative Activity (FP Reg. 2(f)): i) Develop better information and approaches for managing listed wildlife (SARA,

IWMS, etc.), biodiversity and First Nations values to ensure long-term access to the THLB. The NSIFS will develop innovative processes that utilize the NSIFS PEM database to create spatial habitat mapping techniques that will provide for developing new opportunities to refine Environmentally Sensitive Areas (ESAs) within the TSA. The NSIFS has worked extensively with the MOE to develop, identify and stratify OGMA’s and incorporate this information with the PEM to develop new biodiversity netdowns to Merritt TSA THLB. Sections 10.4.1, 10.4.2, 10.4.4, and 10.4.5.

b) Process:

i) The NSIFS has completed ecological mapping of the land base.

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ii) The NSIFS has developed methods to predict the occurrence of valued and rare resources on the land. These methods have been used successfully to define draft ungulate winter ranges and old growth management areas.

iii) The NSIFS intends to build and expand upon the previous successes and develop integrated management strategies for rare wildlife and plant resources and resources important to First Nations into the licensees’ forest development and silviculture plans to ensure long term access to the land base. To date, the NSIFS has completed 167 plant and wildlife habitat models for the Merritt TSA.


i) A commitment by licensees to develop new silviculture practices that incorporate improved management practices for fish, wildlife, plants, biodiversity and First Nations will lead to potential changes in forest productivity.

ii) Overall productivity and resilience of the forest ecosystem will be improved through this process.


i) Good information on the location and value of all forest resources will be used to reduce the constraints placed on timber harvest as opposed to previous practices of using the old, very conservative “precautionary approach” when dealing with environmental issues.

ii) Initial data is indicating potential decreases of area within the THLB as a result of the biodiversity features, which will result in lowering the AAC. The AAC impact could be positive or negative, but will not be finalized until biodiversity studies are completed and approved.

Mountain Pine Beetle Innovative Management

a) Innovative Activity (FP Reg. 2(a)(i)): i) Early, detailed detection of priority beetle infested stands. ii) Maximize the harvest of priority beetle infested stands by critical dates. iii) Improve silviculture performance on areas within the TSA affected by beetle. A detailed overview of the NSIFS MPB innovative strategy is in Section 10.3.6.

b) Process: i) Early, detailed detection of priority beetle infested stands.

(1) Licensees will conduct early overview flights when the majority of fading attacked trees are visible (approx. July 1-15 when >50% fade will have occurred) and follow up with ground surveys.

(2) Overview flights will be conducted over those areas having the greatest risk of outbreak or continued exponential expansion. These flights will be primarily focused in areas with a Holding strategy (not covered by FLNR detailed aerial surveys) where by definition there are higher levels of beetle activity.

(3) Detailed information from overview flights will be available to licensees for use in operational planning as early as July 15 and no later than September 1.

ii) Maximize the harvest of priority beetle infested stands by critical dates. (1) Use the detailed overview flight information to quickly develop beetle infested

stands for harvesting.

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(2) Establish highest priority stands for harvest before the next beetle flight by reviewing newly developed beetle stands and infested development contained within licensees Standing Timber Inventory.

(3) Apply available AAC and the IFPA volume uplift towards the highest priorities within the Holding and Suppression Beetle Management Units’ (BMUs).

iii) Improve silviculture performance on areas within the TSA affected by beetle. (1) Using the detailed overview flight information to quickly develop beetle

infested stands with appropriate silviculture treatments.

c) Potential Forest Productivity Impacts: i) This activity does not result in any forest productivity impacts, although, there

may be some impacts to the productivity of the red-attacked stands not regenerating as quickly as planted stands.


i) Increased cut levels in the short-term will result in downward pressures to the AAC over the mid to long-term timber supply.

Integration of First Nations Resource Interests in Timber Supply Analysis

a) Innovative Activity (FP Reg. 2(f)): i) Develop First Nation’s land use inventories and spatial modeling to support

innovative approaches to sustainable co-management and access to the THLB in the Merritt TSA. Use of spatial models linking known resource and cultural values into landscape level planning will lead to new silviculture and harvesting practices. Changes to green-up, stocking levels, stocking densities and harvest methodology will be monitored to develop new MSYT’s within these culturally managed stands. New information will be applied to future timber supply analysis to generate information related to mid and long term harvest flow. Sections 10.7 and 10.8 of the Forestry Plan provide an overview of the NSIFS’s approach to developing and integrating First Nation’s resource features in forest planning.

b) Process:

i) Work with First Nation’s communities to identify resource features and species of interest to each community.

ii) Develop modeling techniques to link resource features with the NSIFS PEM database.

iii) Merge ecological and cultural models using the Sustainable Forest Management Strategy79 (SFMS) by PEM site series polygon.

iv) Develop GIS analysis tools to spatially determine areas of cultural importance by BEC variants for each Landscape in the TSA.

79 SFMS – Process that links habitat suitability and capability ecological and cultural models utilizing PEM to develop analytical scenarios by BEC site series entity for strategic and stand level planning.

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v) Based on analysis outcomes, develop strategic and stand level silviculture and harvesting practices incorporating First Nation’s cultural values with forest development plans.

vi) Conduct spatial analysis to determine impacts or opportunities arising from changes related to silviculture and harvest practices that incorporate cultural values.

vii) Monitor site productivity related to changes from harvesting and silviculture practices and develop MSYT within areas of First Nation’s cultural management.

viii) Conduct timber supply analysis with new MSYTs to determine impacts or opportunities on the THLB from the spatial integration of multiple First Nation’s resource features.


i) Integration of First Nation’s resource features based on ecological principles of sustainability provides an innovative new approach to strategic and stand level forest planning.

ii) Changes to silviculture practices to incorporate a multiple array of forest values that include stocking levels, stocking densities, species selection and genetic stock will promote improved forest productivity and the development of new MSYTs for these stands.

iii) Changes in harvesting techniques and areas of harvesting to integrate known cultural resource features, will promote sustainable forest management and forest productivity.


i) Good information on the location and value of all forest resources will be used to reduce the constraints placed on timber harvest as opposed to previous practices of using the old, very conservative “precautionary approach” when dealing with First Nation’s resource issues. Changes to harvesting and silviculture practices to integrate First Nation’s cultural values will have positive and/or negative impacts to the short, mid and long term timber flow.

ii) The NSIFS will develop short term spatial harvest scenarios that incorporate First Nation’s cultural management considerations.

iii) The NSIFS will develop spatial timber supply analysis to determine opportunities and/or impacts related to new MSYTs associated with innovative silviculture and harvest practices.

Roads and Landings Netdowns

a) Innovative Activity (FP Reg. 2(a)(ii)): i) The NSIFS is committed to completing a road and trail inventory and building a

spatial model to determine current and future opportunities relating to road and landing reductions in the Merritt TSA. Section 10.3.5 FP provides a general overview of the NSIFS roads and landing process.

b) Process: i) Utilize existing road information sources, primarily from licensees’ and BCTS’s

SFM monitoring framework to develop a TSA-wide roads and landing database.

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ii) Complete and maintain a road, road buffer and landing spatial database for the TSA.

iii) Monitor the amount of roads and landings rehabilitated within the spatial database.

iv) Build a spatial model to: (1) Assess the area impacts of rehabilitation on the current timber harvesting

landbase. (2) Provide “future” road and landing netdown area summaries. (3) Assess the impacts of changes in road construction within different harvesting

practices (e.g. roadside vs. traditional landings).

c) Potential Forest Productivity Impacts: i) The road and landing area netdown from the AAC is a direct result of converting

productive forestland to nonproductive roads and landings. Minimizing the productivity impacts to these areas as well as increasing rehabilitation efforts will increase the productivity and therefore the AAC.


i) In both TSR3 and TSR 4, the uncertainty in the road netdown methods employed raised concerns on the accuracy of generated estimates for existing roads and trails. Combination of aspatial methods and professional judgment between the two reviews showed a difference of 15,586 ha in TSR 4 vs 11,745 ha inTSR3 for netdowns.

TSR3 estimated a 6.9% volume loss for future roads, trails and landings in the land base in order to account for future harvesting activity. For TSR 4, based on licensee input, the NSIFS estimated that a 3.5% volume reduction to be applied to the yield curves based on SFMP reporting (includes in-block roads only) and professional judgement. SFMP reporting has shown a significant decline every year since 2003, from 5% productivity loss by area, down to 2.8% in 2008. An additional 0.5% was estimated for permanent road outside of blocks within the THLB and to account for the future trend away from large salvage blocks that have a relatively low percentage of permanent access structures.

Reducing the area removed from the AAC due to roads and landing areas will provide reduction in loss of AAC. In order to accomplish this current planning and construction practices need to be reviewed. These may include; a. Maximizing use of existing infrastructure; b. Access planning to accommodate multiple interests; c. Revising current harvesting practices relating to road and landing construction

(impact the short term). d. Reducing the netdown for roads and landings through rehabilitation (results in

impacts in the AAC after the first rotation).

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Subject to funding, the NSIFS will complete a spatial roads and landings inventory for the Merritt TSA to reduce the uncertainty associated with the netdowns and maintain a consistent method of tracking and analyzing the data for consideration in future timber supply analysis.

10.15 Summary of Other Activities and link to Section 59.1 (6) of the Forest Act

The following activities will be incorporated into future analysis pending funding.

Monitoring Age Class Structure a) Activity (FP Reg. 2(e)):

i) The NSIFS will continuously monitor the spread of MPB and update harvesting/wildfire activity as they relate to the age class structure within the Merritt TSA. Section 10.3.1 and 10.3.6 FP.

b) Process:

i) Maintain a current data set (annually) containing updates for harvest depletion and wildfire activity.

ii) Receive from the FLNR (annually) MPB spread/attack digital maps. iii) Prior to undertaking another timber supply analysis, these digital files will be

added to the resultant to better estimate the age class structure over the IFPA area.

c) Potential Forest Productivity Impacts: i) Maintaining the current forest inventory for harvest, wildfire and MPB depletions

will not have an impact on forest productivity.

d) Potential AAC Impacts: i) The age class structure is weighted to older mature stands, which provide much of

the AAC. The long term stability of these stands due to harvesting, wildfire and MPB is of concern. Maintaining the forest inventory for harvest, wildfire and MPB depletions will provide forest managers current data as age class structure evolves. The AAC may be increased temporarily to mitigate catastrophic depletion events but will have to be reduced to compensate over the mid to long-term rotation.

Forest Inventory and Timber Supply

a) Activity (FP Reg. 2(e)): i) The NSIFS will continuously update the forest cover in conjunction with FLNR.

Updating the forest cover will directly provide improved data for timber supply analysis. Updating will include adding harvesting, wildfire and MPB depletion areas, monitoring the site index information used in the 2003 analysis and monitoring site productivity estimates for Smallwood stands, Lodgepole pine and Douglas fir stands to support the existing AAC increase. Section 10.3.2 FP.

b) Process:

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i) Maintain a current data set (annually) containing updates for harvest depletion and wildfire activity.

ii) Receive from the FLNR (annually) MPB spread/attack digital maps. iii) Prior to the next timber supply analysis being done these digital files will be

added to the resultant to better estimate the age class structure over the IFPA area iv) Change Monitoring Inventory (CMI) program has been implemented to monitor

site index/productivity estimates used in the July 2003 analysis including Smallwood stands, Lodgepole pine and Douglas fir stands.


i) Continuing with the CMI and Smallwood growth and yield programs will provide data to improve/ confirm the site index/productivity estimates used in the July 2003 uplift analysis. The forest productivity impacts may be positive or negative but the data will provide a more accurate representation.


i) Improving site index/productivity estimates will provide a more accurate representation of the AAC whether it is positive or negative.

Select Seed (Tree Improvement)

a) Activity (FP Reg. 2(d)): i) The tree improvement program for the Merritt TSA is expected to increase the

stem volume by no less than 10% depending on the species, however, the seedlings from the tree breeding program comprise only a portion of all seedlings planted. Section 10.3.3 FP.

b) Process:

i) Increase the portion of seedlings from the tree-breeding program into the Merritt TSA planting program.

ii) Estimate the proportion of tree improvement estimates for each analysis unit planted.

iii) Estimate the proportion of tree improvement estimates for each analysis unit planted using historic records.

iv) Monitor licensee reforestation practices, specifically, stocking levels and superior seedling reforestation practices, to ensure green up and free to grow target estimates used in the 2003 NSIFS analysis.

v) Incorporate tree improvement opportunities into the revised silviculture regimes.

c) Potential Forest Productivity Impacts: i) The impact on forest productivity would be a positive gain as a direct result of

using seed from the tree improvement program. As noted in the process section the amount of gain would be dependant on the portion of improved seedlings planted.


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i) In TSRII the Chief Forest stated: “…based on current levels of select seed use, it is estimated that long-term timber supply would be 2.1 percent higher than that in the base case.”

For TSR 4, no genetic gain was applied to the yield curves for existing managed stands, as the seven most recent years couldn’t be considered to accurately represent all managed stands. Average historical class ‘A’ seed use was assumed for future managed stands (16% and 76% for pine and spruce respectively), and average genetic gain factors of 14% and 17% was applied. This resulted in effective genetic gain on future stands of 2% and 13% for pine and spruce respectively. Overall, these were higher than TSR 3, Pl (0.9% to 1.2%) and (3.2%) for Sx.

Douglas Fir Forest Management

a) Activity (FP Reg. 2(e)): i) Information available to support changes in Douglas-fir growth & yield and

silviculture practices was brought forward in the 2003 NSIFS analysis. NSIFS will continue to monitor Douglas-fir harvest levels, growth and yield estimates and silviculture practices in these stands. Section 10.3.4 FP.

b) Process:

i) Improve the forest cover inventory in the dry-belt Douglas-Fir stands. ii) CMI program is being implemented to monitor site index/productivity estimates

used in the 2003 NSIFS analysis including Smallwood stands, Lodgepole pine and Douglas fir stands.

iii) NSIFS will continue working towards completion of a number of research projects initiated by Weyerhaeuser to support innovative opportunities that may arise from new information related to Douglas-fir growth and yield estimates.


i) In TSRII, the MOF considered the complete exclusion of the approximately 101,000 ha of dry-belt Douglas-fir stands due to the uncertainty of the merchantability of these types of stands. Growth and Yield studies are suggesting these stands are in fact growing at higher rates80 than originally estimated. Through new management methods, these stands will realize more of the inherent stand productivity over current selection zone approaches81. These studies are suggesting productivity gains, at minimum, will provide more accurate data on current site productivity impacts.


i) The TSRII imposed a minimum harvest age and a minimum cutting cycle of 30 years with a harvest of 25% of the standing volume. Any change to these numbers

80 J.S. Thrower & Associates Ltd. 1999. Summary of Douglas-fir Growth & Yield in the Merritt TSA. Contract report for Weyerhaeuser Canada Ltd. and Ministry of Forests Merritt Forest District. Pg. 12. 81 J.S. Thrower & Associates Ltd. 1998. Protocols for Managing Interior Dry-belt Douglas-fir – Draft report for Weyerhaeuser Canada Ltd. and Ministry of Forests Merritt Forest District. Pg. 61.

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from the Weyerhaeuser studies and the CMI program could result in either positive or negative impacts to the AAC in either case the results will provide a more accurate number to use in the timber supply analysis.

Smallwood Licenses

a) Activity (FP Reg. 2(e)): i) From the 1995 AAC determination approximately 300,000 cubic meters were

classified as Smallwood and partitioned for harvesting. The NSIFS included site productivity estimates for the Smallwood stands in the 2003 NSIFS analysis package. In 2007, the NSIFS developed and implemented their Smallwood monitoring strategy. Section 10.3.7 FP.

b) Process:

i) Use PEM to define an ecologically based Smallwood potential site index estimate. ii) CMI program is being implemented to monitor site index/productivity estimates

used in the 2003 NSIFS analysis including Smallwood stands, Lodgepole pine and Douglas fir stands. Limited Smallwood stands are suitable for sampling and as sites become available they will be incorporated into the CMI program.


The MOFR base case site index estimate for these stands was 11.7 meters based on FIP estimates. In 2002, the MOFR undertook some limited field sampling of these stands and found an average site index of 18.8 meters. Although this study concluded that further studies were needed to substantiate the data, the MOFR concluded that the Smallwood stand site index was significantly underestimated. The NSIFS has chosen 16.4 meters in the 2003 NSIFS analysis, the same as used in TSRII. Further studies may result in increasing the potential forest productivity by approximately 2 meters.


The results of the TSA Smallwood reconnaissance and the MOFR Timber supply review indicate the site index for Smallwood stands is significantly underestimated suggesting a possible future gain in AAC.

Forestry/Range Interactions

a) Activity (FP Reg. 2(f)): i) The NSIFS will develop projects to understand the issues and opportunities

related to overlapping range and forest tenures specifically related to silviculture obligations, management objectives for grassland habitat and impacts from invasive alien plant species.

b) Process:

i) Utilize the Invasive Alien Plant Program Application (IAPP) Provincial data base to coordinate treatment opportunities through the FLNR.

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ii) Subject to access to IAPP data the NSIFS will develop processes to link the invasive plant database with the TSA PEM database

iii) Develop spatial analysis tools to determine impacts to green-up and free to grow estimates.

iv) Data will be used to develop a sustainable Forest Management Strategy to mitigate negative impacts from invasive plants on biodiversity, forage production for domestic and wildlife species and on green up and free to grow targets.

c) Potential Forest Productivity Impacts: i) Currently, land management practices resulting in the introduction and/or spread

of invasive plants and issues relating to impacts of cattle grazing in reforestation programs, and damage to stream banks all have negative impacts on forest productivity. Mitigating these impacts would result in positive gains in productivity.


i) Currently, land management practices resulting in the introduction and/or spread of invasive plants and issues relating to impacts of cattle grazing in reforestation programs, and damage to stream banks all have negative impacts on forest productivity. Mitigating these impacts would result in positive gains in productivity.

Visual Quality Objectives

a) Activity (FP Reg. 2(e)): i) The identification of Visual Quality Objectives (VQO’s) have been established for

the TSA, including all the classified lakes. The NSIFS supports efforts to determine and outline visually sensitive areas to support economic growth in the TSA and will work with the FLNR to support minimizing impacts to VQO’s from MPB harvesting areas. Section 10.3.9 FP.

b) Process:

i) The NSIFS will support the FLNR to minimize the impact of visually sensitive areas as a result of harvesting MPB areas.

ii) Test volume recovering factors in VQO’s of Partial Retention.

c) Potential Forest Productivity Impacts: i) This activity does not result in any forest productivity impacts.


i) The NSIFS will support studies to better understand volume recovery opportunities in VQO’s of Partial Retention, and possibility in increase of available AAC.

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Environmentally Sensitive Areas (ESA)

a) Activity (FP Reg. 2(f)): i) Due to technical advances in the mapping process and more sophisticated

techniques of surficial geology and terrain hazard mapping, problem areas that may be exempt from harvesting are more accurately located. Section 10.4.1 FP.

b) Process:

i) Use the PEM database to create spatial mapping techniques to refine ESA’s within the Merritt TSA.


i) This activity does not result in any forest productivity impacts.

d) Potential AAC Impacts: i) Increasing the precision of the ESA mapping in the Merritt TSA may result in

either positive or negative impacts on future timber supply analysis based on the removal or inclusion of ESA areas.

Protected Areas

a) Activity (FP Reg. 2(f)): i) A number of Protected Areas of Interest have been defined within the Merritt

TSA (31,900 hectares in the THLB). These areas have not been “officially” established. Section 10.4.3 FP.

b) Process:

i) NSIFS will monitor the agencies’ work with Protected Areas. ii) As the Protected Areas are established, the information will be included in future

AAC analysis.



i) Until proposed Protected Areas are officially established, the positive or negative AAC impacts can only be speculated upon.

Identified Wildlife and Plants a) Activity (FP Reg. 2(f)):

i) NSIFS will incorporate spatial habitat models into strategic and stand level harvest scenarios to support improved management of identified wildlife and

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plants in the Merritt TSA. The intent of developing these spatial models is to create stand level planning approaches to minimize THLB impacts to 1 percent.

b) Process: i) Develop spatial models defining wildlife habitat suitability and capability by

utilizing the PEM database for the Merritt TSA. ii) NSIFS will monitor the agencies’ work on identifying the change in habitat for

red, blue, Species at Risk (SARA) and local plant and wildlife species of interest. To date, five Wildlife Habitat Areas (WHAs) have been established in the Merritt TSA.



d) Potential AAC Impacts: i) It is not anticipated that this activity will support future AAC increases or

decreases but updated spatial data will support better management within the THLB.

Ungulate Winter Range

a) Activity (FP Reg. 2(e)): i) Through efforts of the NSIFS and MOE, large areas of the TSA have been

identified for ungulate winter range and have established winter range planning cells. Section 10.4.5 FP.

b) Process:

i) Maintain/ update ungulate winter range planning cells for mule deer. ii) Develop winter range guidelines and maps for moose, elk, mountain goat and

sheep. iii) Develop draft Deer Winter Range (DWR) netdowns by creating a harmonized

coverage from MOE DWR maps and the NSIFS spatial DWR model. iv) Develop new DWR netdowns using new winter range information by updating

DWR sensitivity scenarios.



i) Impacts to AAC will depend on the resulting area designated as ungulate winter range.

Community Watersheds

a) Activity (FP Reg. 2(f)):

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i) There are 10 designated community watersheds within the Merritt TSA. ECA and green-up values will be monitored within these watersheds as MPB harvesting may create changes. Section 10.4.6 FP.

b) Process: i) Monitor ECA and green-up within the community watersheds as MPB harvesting

may create changes. ii) NSIFS will utilize PEM to develop innovative mapping techniques that in turn

will be used to recommend and develop innovative approaches to reduce impacts within community watersheds.



d) Potential AAC Impacts: i) This activity will not impact the AAC except for the possible removal of a portion

the volume due to MPB activity. The total area of the 10 designated community watersheds will remain the same.

Hydrological Concerns

a) Activity (FP Reg. 2(f)): i) Several watersheds are approaching current Equivalent Clear-cut thresholds.

Harvesting in MPB areas will add to concerns regarding water quality. The NSIFS has completed a Stream Classification model for the TSA and will continue to support improvements in watershed inventories and risk assessments. Section 10.4.7 FP.

. b) Process:

i) Continue to feed information into the Stream Classification model. ii) Continue to develop watershed models to support improvement in watershed

inventories and risk management. iii) Continue to monitor ECA data in all the watersheds as harvesting pressures

increase.

c) Potential Site Productivity Impacts: i) This activity does not result in any forest productivity impacts.


i) As harvested areas within watersheds reach ECA thresholds, AAC’s will be reduced. However, several NSIFS programs will accelerate critical attributes, such as green-up, resulting in reduced ECA factors and, therefore, increasing the AAC.

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Temperature Sensitive Streams

a) Activity (FP Reg. 2(f)): i) Temperature sensitive stream designations and the importance of maintaining

riparian vegetation have been identified as an issue. Section 10.4.8 FP.

b) Process: i) The NSIFS will continue to work on designating portions of Spius Creek as

temperature sensitive. ii) The NSIFS will incorporate any new information into future analysis.



d) Potential AAC Impacts: i) Depending on the increase or decrease of riparian areas along temperature

sensitive streams, the AAC may be negatively or positively impacted, respectively.

Fisheries

a) Activity (FP Reg. 2(f)): i) One red listed species and three blue listed species exist within the TSA.

Salmonids also spawn within the watersheds of the Merritt TSA. These species of fish are very sensitive to land use practices along their habitat, which also include small side streams. Section 10.4.9 FP.

b) Process:

i) Then NSIFS will incorporate any new fisheries information into future analysis.



i) The AAC may be potentially reduced with the inclusion of new information on identified locations of fish habitat.

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10.16 Upward Pressures on Timber Supply

Table 16 Upward pressures on Timber Supply Expanded Operability There may be a limited opportunity to expand the timber

harvesting land base to access timber currently considered inoperable.

Commercial Thinning Commercial thinning programs, beyond those identified for the MPB scenario, may have some positive impacts on areas with seral stage constraints. Two commercial thinning trials have been established in the Merritt TSA.

Unrecoverable Losses In the AAC Rationale for TSR4, the Chief Forester indicated for the next timber supply review to revisit the estimate of non-recoverable losses and implications of such losses on the mid-term timber supply through sensitivity analysis. Currently the Southern Interior Forest Region is working on a new method for estimating NRLs. This may lead to a positive or negative impact to the AAC. TSR 4 NRLs were less in the first 40 years by 48% when compared to TSR 3 (74,785 m3/yr TSR4 vs 143,626 m3/yr TSR3).

Community Watersheds This activity will not impact the AAC except for the possible removal of a portion the volume due to MPB activity. The total area of the 10 designated community watersheds will remain the same. TSR 4 base case applied a 30% maximum young seral limit vs 20% in TSR 3.

Douglas Fir Types In TSR 4, the Chief Forester indicated to complete monitoring and research on dry-belt Douglas Fir to better understand their level of contribution to the timber supply. The NSIFS will use previous research on dry-belt Douglas Fir completed by Weyerhaeuser and expand their CMI program to quantify Douglas Fir data. New analysis of this information may lead to a positive or negative impact to the AAC.

ESA Increasing the precision of the ESA mapping in the Merritt TSA may result in either positive or negative impacts on future timber supply analysis based on the removal or inclusion of ESA areas.


Improving site index/productivity estimates will provide a more accurate representation of the AAC whether it is positive or negative.

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Forestry/Range Interactions

Currently, land management practices resulting in the introduction and/or spread of invasive plants and issues relating to impacts of cattle grazing in reforestation programs, and damage to stream banks all have negative impacts on forest productivity. Mitigating these impacts would result in positive gains in productivity.

Hydrological Concerns Several NSIFS programs will accelerate critical attributes, such as, green-up resulting in reduced ECA factors and potentially increasing the AAC.


Good information on the location and value of all forest resources will be used to reduce the constraints placed on timber harvest as opposed to previous practices of using the old, very conservative “precautionary approach” when dealing with First Nation’s resource issues. Changes to harvesting and silviculture practices to integrate First Nation’s cultural values will have positive and/or negative impacts to the short, mid and long term timber flow.

Monitor Site Productivity and Revise Site Index Estimates

The SI adjustments provided a large gain for the Merritt TSA AAC calculation in the 2003 NSIFS analysis package. NSIFS will continue to monitor site productivity on these new stands in an effort to generate updated site index estimates to support future AAC gains.

Monitoring Age Class Structure

The age class structure is weighted to older mature stands, which provide much of the AAC. The AAC may be increased temporarily to mitigate catastrophic depletion events.

New Silviculture Regimes

Gains in site productivity and changes in green up and free to grow periods will provide AAC opportunities in the mid and long term harvest flow. RESULTS data will be used to best quantify current species composition, ht-age data and planting densities

OAF1 Reducing the OAF1 will increase the amount of yield, providing for potential AAC increases.

Protected Areas In TSR 4, the Protected Areas Strategy (PAS) Areas of Interest and Approved Study Areas have not been excluded from the Productive Forest Land Base as there are no current plans to establish these proposed PAS areas within the Merritt TSA. The positive or negative AAC impacts can only be speculated upon. Estimated AOI within the Merritt TSA total 1,136ha or approximately 0.2% of the THLB.

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Road and Landings Netdowns

Reducing the area removed from the AAC due to roads and landing areas will decrease the loss of AAC.

Select Seed (Tree Improvement)

Using select seed will increase the AAC in the mid to long term. Silviculture type 2 completed a sensitivity analysis of utilizing genetically improved spruce over Pl in suitable ecosystems and based on available Class A seed - results indicated a potential gain of 13% volume in the mid-term and 10% in the long-term. TSR 4 applied 2% for Pl, 13% for S versus TSR3 (0.9-1.2% for Pl, 3.2% for S).

Smallwood Licenses Providing additional SI strategies with new information on SI target stands may result in AAC increased opportunities in Smallwood pine.

Utilization Standards TSR 4, the Chief Forester indicated that the base case short-term harvest levels were underestimated by 0.7 – 1.6 percent when comparing regional cruise data against pine volumes captured in the small diameter pine inventory stand types.


Depending on the increase or decrease of riparian areas along temperature sensitive streams, the AAC may be negatively or positively impacted, respectively.

Regen Delay New information for TSR 4 used 2 year regen delay for all clearcut stands, 0 years for STS stands assuming 75 m3/ha residual volume is left after each harvest entry vs an average age of 3.4 yrs. Reduction of regeneration delays and ensuring target densities are obtained could reduce rotation ages.

Visual Quality Objectives

TSR 4 indicates that VQOs are not significantly limiting harvesting over the base case planning horizon. TSR 4 applied higher maximum % limits than in TSR 3.

10.17 Downward Pressures on Timber Supply

Table 17 Downward pressures on Timber Supply Forest health losses such as root disease

Little is known about the role of root disease in the IDF forest. However, continuation of the selection system for the Douglas fir stands could result in increased losses to root disease.

Community Watersheds

This activity will not impact the AAC except for the possible removal of a portion the volume due to MPB activity. The total area of the 10 designated community watersheds will remain the same.

ESA Increasing the precision of the ESA mapping in the Merritt TSA may result in either positive or negative impacts on the timber

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supply analysis based on the removal or inclusion of future ESA areas.

Douglas Fir Forest Management

In TSR 4, the Chief Forester indicated to complete monitoring and research on dry-belt Douglas Fir to better understand their level of contribution to the timber supply. The NSIFS will use previous research on dry-belt Douglas Fir completed by Weyerhaeuser and expand their CMI program to quantify Douglas Fir data. New analysis of this information may lead to a positive or negative impact to the AAC.

Fisheries The AAC may be potentially reduced with the inclusion of new information on identified locations of fish habitat.


Improving site index/productivity estimates will provide a more accurate representation of the AAC, whether it is positive or negative.

Hydrological Concerns

As harvested areas within watersheds reach ECA thresholds AAC’s will be reduced.

Identified Wildlife & Plants

It is not anticipated that this activity will support future AAC increases or decreases but updated spatial data will support better management within the THLB.

Integration of Biodiversity Values onto Timber Supply Analysis

TSR 4 OGMA’s make up approximately 5.7% of the THLB.


As First Nations values are inventoried and management criteria defined, some losses to the timber harvesting land base are expected. At this time, no information is available to estimate the size of these areas.

Monitoring Age Class Structure

The age class structure is weighted to older mature stands, which provide much of the AAC. The AAC may be increased temporarily to mitigate catastrophic depletion events but will have to be reduced over the mid to long term rotation to compensate.

Monitor Site Productivity and Revise Site Index Estimates

The SI adjustments provided a large gain for the Merritt TSA AAC calculation in the 2003 NSIFS analysis package. Some estimates of site productivity may have been too high, resulting in downward pressures.

MPB Increased cut levels in the short-term will result in downward

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pressures to the AAC over the mid to long-term timber supply.

OAF1 Increasing the OAF1 value back to TSRII levels decreases the amount of yield, providing for potential AAC decreases.

Protected Areas In TSR 4, the Protected Areas Strategy (PAS) Areas of Interest and Approved Study Areas have not been excluded from the Productive Forest Land Base as there are no current plans to establish these proposed PAS areas within the Merritt TSA. The positive or negative AAC impacts can only be speculated upon. Estimated AOI within the Merritt TSA total 1,136ha or approximately 0.2% of the THLB.


Depending on the increase or decrease of riparian areas along temperature sensitive streams, the AAC may be negatively or positively impacted, respectively.

Ungulate Winter Range

TSR 4 identified 186,591 ha THLB in UWR (about 30% of THLB). The area that could limit further harvesting as a result of the UWR mature seral requirements range from 10+/- % to 33+/- % of the total area. A higher minimum harvest age was applied in TSR 4 121+ years vs 120+ in TSR 3.

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11.0 Workplan and Five Year Schedule

Taking into account completed and on-going activities from Forestry Plan II Workplan, Table 18 below describes the five-year project plan and NSIFS strategic budget (2011 – 2016). First Nations participation is a significant component of the NSIFS project plan and strategic budget. Based on previous involvement of First Nations with NSIFS projects, the strategic plan provides some estimates of their participation within the 5-Year Schedule. In no way does the plan limit First Nation opportunities or involvement on any of the proposed projects. Many of these projects are preliminary at this time and will vary from year – year depending on changing priorities and approved funding levels. Table 18. NSIFS Strategic 5-Year Budget

Anticipate a minimum 30 % First Nation project participation

Anticipate a minimum 80% First Nation project participation

Sections in Forestry

Plan OBJECTIVE #1 CREATE AN INNOVATIVE FOREST MANAGEMENT ENVIRONMENT 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

5 YEAR TOTAL

1.0, 5.0, 6.0, 9.0,

10.1

NSIFS MANAGEMENT also includes costs for completing the following IFPA reporting conditions: NSIFS Annual Report and Conditions Addendum, NSIFS Annual MPB Report, Roads Ahead Program, Project Budget, First Nations Communications proposal, Technical Advisory Committee meetings and plans, generate funding for innovative projects and practices. $45,700.00 $45,700.00 $45,700.00 $45,700.00 $228,500.00

1.0, 10.0, 10.1, CENTRAL DATA MANAGEMENT $10,000.00 $15,000.00 $10,000.00 $12,500.00 $12,500.00 $60,000.00

10.1, 10.2 Government investment strategies/plans $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $100,000.00

10.1, 10.2 FORESTRY PLAN UPDATES $18,000.00 $ - $ - $ - $20,000.00 $38,000.00

SUBTOTAL $93,700.00 $80,700.00 $75,700.00 $78,200.00 $98,200.00 $426,500.00

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Sections in Forestry Plan OBJECTIVE #2 SUPPORT FIRST NATION'S COMMUNITIES 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

5 YEAR TOTAL

10.1, 10.2, 10.4, 10.7, 10.8, 10.11, 10.12 First Nations Cultural Modeling $0.00 $80,000.00 $80,000.00 $80,000.00 $80,000.00 $320,000.00

10.1, 10.2, 10.4, 10.7, 10.8, 10.11 Field Testing of First Nation Modeling $0.00 $26,000.00 $26,000.00 $26,000.00 $26,000.00 $104,000.00

10.4, 10.7, 10.8 Archeology Projects and Modeling $37,500.00 $37,500.00 $37,500.00 $37,500.00 $37,500.00 $187,500.00

10.4, 10.7, 10.8 Sustainable Forest Management Strategy $65,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $165,000.00

SUBTOTAL $102,500.00 $168,500.00 $168,500.00 $168,500.00 $168,500.00 $776,500.00

Sections in Forestry Plan OBJECTIVE #3 INCREASE THE SUSTAINABLE HARVEST 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

5 YEAR TOTAL

10.3 Innovative Forest Management MPB, Forest Health Strategies, VQO, Range, Seed Tree $6,000.00 $6,000.00 $6,000.00 $6,000.00 $10,000.00 $34,000.00

10.3.5 Roads, Trails, Landings – SFM source for inblock and combined field and spatial data for other roads for spatial inventory $10,000.00 $30,000.00 $4,000.00 $4,000.00 $4,000.00 $52,000.00

10.3.5 TSA – Level Access Management and Rehabilitation Plan $0.00 $20,000.00 $20,000.00 $3,000.00 $3,000.00 $46,000.00

10.3.2 Forest Inventory – Pine, Smallwood, Douglas Fir $15,000.00 $15,000.00 $20,000.00 $50,000.00 $100,000.00

10.2, 10.3 Monitoring / updating TSA silviculture Strategy Activities $20,000.00 $10,000.00 $10,000.00 $25,000.00 $25,000.00 $90,000.00

10.2, 10.3 Stand fertilization for high yield potential stands, SI 15-25, Sp. Fd, Sx, Pl (hand treatments) $20,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $220,000.00

10.2 Timber Supply Analysis/scenario development $15,000.00 $10,000.00 $15,000.00 $15,000.00 $30,000.00 $85,000.00

SUBTOTAL $71,000.00 $141,000.00 $120,000.00 $123,000.00 $172,000.00 $627,000.00

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Sections in Forestry Plan OBJECTIVE #4 ENHANCE ENVIRONMENTAL VALUES 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

5 YEAR TOTAL

10.4 Biodiversity Monitoring – WTP, OGMA, DWR, Protected Area $12,000.00 $7,500.00 $7,500.00 $35,000.00 $35,000.00 $97,000.00

10.2, 10.4, 10.7, Wildlife and Plant Suitability Modeling $30,000.00 $30,000.00 $0.00 $0.00 $0.00 $60,000.00

10.1, 10.2, 10.3, 10.4, 10.7, 10.8, 10.9, 10.10, 10.11 Data Integration in PEM $5,000.00 $5,000.00 $0.00 $0.00 $0.00 $10,000.00

10.11 Ecosystem Restoration and ER management plan and monitoring $80,000.00 $80,000.00 $80,000.00 $30,000.00 $30,000.00 $300,000.00

10.4.6, 10.4.7, 10.4.8, 10.4.9 TSA – Level Hydrological Overview Risk Assessment $35,000.00 $50,000.00 $50,000.00 $135,000.00

10.10, Invasive weed inventory and treatment strategies, integrated data PEM data base $20,000.00 $20,000.00 $2,500.00 $2,500.00 $2,500.00 $47,500.00

10.10, Invasive weed treatments (hand treatments) $35,000.00 $35,000.00 $35,000.00 $105,000.00

SUBTOTAL $182,000.00 $192,500.00 $175,000.00 $67,500.00 $67,500.00 $754,500.00

Sections in Forestry Plan

OBJECTIVE #5 STRENGTHEN FOREST INVENTORIES AND SUPPORT TOOLS 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

5 YEAR TOTAL

10.3, 10.3.2, 10.3.4, 10.3.6 CMI, Site Productivity Monitoring G&Y, VRI $33,000.00 $16,500.00 $55,000.00 $55,000.00 $33,000.00 $192,500.00

10.3.6 VRI adjustments to account for MPB impacts $20,000.00 $20,000.00

10.3, 10.3.2, 10.3.4, 10.3.6 CMI QA $5,000.00 $5,000.00 $5,000.00 $15,000.00

10.1, 10.2, 10.4.10 Biogeoclimatic Data updates and integration to PEM $20,000.00 $20,000.00 $ - $0.00 $0.00 $40,000.00

SUBTOTAL $73,000.00 $41,500.00 $60,000.00 $60,000.00 $33,000.00 $267,500.00

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Sections in Forestry Plan

OBJECTIVE #6 MAINTAIN EFFECTIVE COMMUNITY INVOLVEMENT 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

5 YEAR TOTAL

10.1, 10.2, 10.4, 10.7, 10.8

Communication - Extension Strategy with First Nations Elders and Academic Community, and local stakeholders $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $150,000.00

SUBTOTAL $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $150,000.00

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 5 YEAR TOTAL

FISCAL AND FIVE YEAR TOTALS $552,200.00 $654,200.00 $629,200.00 $527,200.00 $569,200.00 $3,002,000.00

Funding levels and projects are subject to change to incorporate new TSA issues and develop innovative new approaches leading to opportunities in forest stewardship and co-management.

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Appendix 1 – IFPA Section 59.1 of Forest Act

Innovative forestry practices 59.1 (1) For the purpose of improving the productivity of the forest resource, the minister, at

his or her discretion, may enter into an agreement with a person referred to in subsection (2) to allow that person to carry out, subject to subsection (5) and the Forest Practices Code of British Columbia Act, one or more of the innovative forestry practices and other activities that are set out in a regulation made under subsection (4).

(2) For the purpose of subsection (1), the minister may enter into an agreement with a person who

(a) is the holder of a forest license or other agreement that is entered into under section 12 and specified in a regulation made under subsection (4) of this section, and

(b) presents a written proposal for an agreement to the minister. (3) An agreement under subsection (1) (a) must be for a term not exceeding 15 years, and (b) may include terms and conditions that

(i) the minister considers necessary to effectively carry out the purpose of the agreement and further the social and economic objectives of the government, and

(ii) are consistent with this Act and the regulations and the Forest Practices Code of British Columbia Act, and the regulations and standards made under that Act.

(4) The Lieutenant Governor in Council may make regulations specifying (a) the innovative forestry practices and other activities that may be the subject of an

agreement referred to in subsection (1), and (b) the agreements entered into under section 12, the holders of which may enter into an

agreement with the minister under subsection (1) of this section. (5) A person may only carry out an innovative forestry practice or other activity referred

to in subsection (1) if the person (a) has prepared and obtained the Regional Executive Director's approval of a forestry

plan that meets the requirements of subsection (6), and (b) is carrying out the practice or activity in accordance with the plan. (6) A forestry plan

(a) must contain a description of the management area where the innovative forestry practices or other activities will be carried out,

(b) must specify the particulars of the innovative forestry practices or other activities, (c) must contain a description of how the innovative forestry practices or other activities

will be carried out, (d) must contain a schedule of when the innovative forestry practices or other activities

will be carried out, (e) must specify how the innovative forestry practices or other activities will contribute

to improved productivity of the forest resource, (f) must specify how the innovative forestry practices or other activities will justify an

increase in the allowable annual cut of the participant's license or agreement referred to in subsection (2) (a), and

(g) may include other terms and conditions that (i) the Regional Executive Director believes are necessary to effectively carry

out the agreement referred to in subsection (1), and (ii) are consistent with this Act and the regulations and the Forest Practices Code of

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Nicola-Similkameen Innovative Forestry Society 2011 Forestry Plan British Columbia Act, and the regulations and standards made under that Act.

(7) After approving a person's forestry plan, the Regional Executive Director may increase the allowable annual cut authorized in the person's license or agreement referred to in subsection (2) (a) by an amount that is justified according to timber supply analysis methodology approved by the Chief Forester or the Chief Forester's designate.

(8) When the Regional Executive Director increases an allowable annual cut under subsection (7), the Regional Executive Director may limit the increase to a period of time, area of land and type of timber, and may make the increase subject to conditions.

(9) If an assessment of (a) the innovative forestry practices or other activities being carried out under the

forestry plan, or (b) information that was not available at the time the Regional Executive Director

increased the allowable annual cut under subsection (7) indicates that all or part of the allowable annual cut increase was not justified, the Regional Executive Director may reduce the allowable annual cut of the license or agreement referred to in subsection (2) (a) by an amount not exceeding the increase granted under subsection (7).

(10) If, with respect to an innovative forestry practice or other activity, a person is not complying with

(a) the agreement referred to in subsection (1), (b) the forestry plan approved under subsection (5), (c) any limitation or conditions imposed under subsection (8), or

(d) this Act and the regulations made under this Act, or the Forest Practices Code of British Columbia Act and the regulations or standards made under that Act, the Regional Executive Director may do one or both of the following:

(e) suspend or cancel the agreement referred to in subsection (1) and sections 76 and 77 apply with respect to that suspension or cancellation;

(f) reduce the allowable annual cut of the person's license or agreement referred to in subsection (2) (a) by an amount the Regional Executive Director determines is attributable to the default.

(11) A reduction under subsection (9) or (10) may be apportioned over a period of up to 5 years.

(12) If the forest license, or other agreement referred to in subsection (2) (a), is suspended, the agreement under subsection (1) is suspended.

(13) If the forest license, or other agreement referred to in subsection (2) (a), is cancelled or surrendered, the agreement under subsection (1) is cancelled.

(14) If the agreement referred to in subsection (1) is suspended or cancelled, the forestry plan is suspended or cancelled, as the case may be. 1996-11-9.

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Appendix 2 – Innovative forestry practices regulation

Definitions 1 In this regulation: "Act" means the Forest Act; "forestry plan" means a forestry plan required to be submitted for approval under section 59.1 (5) of the Act; "forest practice" has the same meaning as in the Forest Practices Code of British Columbia Act; "free-growing stand" has the same meaning as in the Forest Practices Code of British Columbia Act; "holder" means a person that presents a written proposal for an agreement under section 59.1 (2) (b) of the Act; "permanent access structure" has the same meaning as in the Forest Practices Code of British Columbia Act; "standard practices" means the forest practices routinely applied by licensees in the timber supply area when the forestry plan is submitted or at any other time determined by the Regional Executive Director; "stocking requirements" has the same meaning as in section 39 (1) of the Operational Planning Regulation, B.C. Reg. 174/95. Authorized innovative forestry practices and activities 2 The innovative forestry practices and other activities that may be the subject of an agreement under section 59.1 (1) of the Act are the following: (a) the implementation of harvesting methods or silvicultural systems that may (i) increase the total amount of timber available to harvest in the timber supply area over the amount available under standard practices, or (ii) reduce the loss of productivity associated with permanent access structures from the loss of productivity under standard practices for similar terrain and timber types in the timber supply area; (b) activities that result in the establishment of free-growing stands on (i) previously unforested areas, (ii) areas that are below stocking requirements and are not part of the holder's free-growing responsibilities under section 70 (3) of the Forest Practices Code of British Columbia Act, or (iii) areas that (A) have stands of timber with repressed growth or that contain brush or species that are not commercially valuable, and (B) are not part of the holder's free-growing responsibilities under section 70 (3) of the Forest Practices Code of British Columbia Act; (c) silviculture treatments on free-growing stands; (d) silviculture treatments on sites that are not free growing in order to produce stands that exceed current growth performance or standards achieved using standard practices for the timber supply area; (e) the collection and analysis of new data, in accordance with the specifications of the Chief Forester, to provide a more accurate representation of the forest composition and its expected rate of growth compared to the rate existing when the forest plan is submitted or at any other time determined by the Regional Executive Director; (f) activities that will enhance and protect other resource values, including, but not limited to, water, fisheries, wildlife, biological diversity, soil productivity and stability, forage production, grazing and recreation values. Authorized forms of agreement 3 The holders of the following agreements under section 12 of the Act may enter into an

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Nicola-Similkameen Innovative Forestry Society 2011 Forestry Plan agreement under section 59.1 of the Act: (a) replaceable forest licenses, and (b) replaceable timber sale licenses with an allowable annual cut greater than 10 000 cubic meters.

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Appendix 3 – Merritt TSA Map

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Appendix 4 - NSIFS Membership and Contact Numbers

Board of Directors Jerry Canuel Aspen Planers (250) 378-9266 W (Chairperson) PO Box 160 (250) 315-4239 Fax

Merritt, British Columbia (250) 315-5103 Cell V1K 1B8

[email protected] Dave Walkem Stuwix Investments Ltd (250) 378-4235 W (Co-Chair) Cooks Ferry Band (250) 378-9119

P.O. Box 130 (250) 458-2224 H Spences Bridge, British Columbia (250) 319-7884 C V0K 2L0

[email protected] Corey Kuromi Ardew Wood Products (250) 378-6161 W (Secretary Treasurer) Box 280, Merritt, BC V1K 1B8 (250) 378-6313 F

[email protected]

Tony Buckley Ministry of Forests, BC Timber Sales (250) 371-6523 W 1265 Dalhousie Drive (250) 828-4627 F Kamloops, British Columbia V2C 5Z5

[email protected]

David Bickerton Tolko Industries Ltd. (250) 378-1241 W Box 39 (250) 378-7440 C

Merritt BC V1K 1B8 [email protected]

Rob Marshall Weyerhaeuser (Princeton) (250) 295-3281 W Box 550 (250) 295-3287 F Princeton, British Columbia VOX 1WO [email protected]

Carmeletta Holmes Upper Similkameen Band (250) 499-2221 W Band Councilor (250) 499-5117 F Box 310 Keremeos, British Columbia V0X 1N0 [email protected]

Lennard Joe Nicola Tribal Association (250) 378-6800 c/o Grizzly Man Resource Management (250)-378-9262 F Box 2128 Merritt, BC V1K 1B8 [email protected]

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Alternate Members

Brian Drobe Weyerhaeuser (Princeton) (250) 295-3281 W Box 550 Princeton BC V0X 1W0 (250) 295-3287 F [email protected] Erik Norgaard Ardew Wood Products (250) 378-6161 W Box 280 1195 Douglas Street (250) 378-6313 F Merritt B.C. V1K 1B8 [email protected] Tom Lewis Ministry of Forests, BC Timber Sales (250) 371-6523 W 1265 Dalhousie Drive (250) 828-4627 F Kamloops, B.C. V2C 5Z5 (250) 318-4469 C [email protected]

Michael Bragg Tolko Industries Ltd. (250) 578-2181 W

6275 Yellowhead hwy (250) 578-8655 F Kamloops, BC V2H 1T8 [email protected] Tim Manuel NTA (UNIB) (250) 350-3342 W Box 3700 Stn Main, (250) 350-3311 F Merritt, BC V1K 1B8 Send Attention: Tim Manuel [email protected] Fred Sampson Stuwix Investments Ltd. (250)-455-2219 Siska Band 21 Siska siding Road PO Box 642 Lytton BC VOK 1ZO [email protected]

Kelly McKinnon USIB Capacity Forest Management Ltd. (250) 287-2120 W 1761A Redwood St. (250) 287-2125 F Campbell River, BC V9W 3K7

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Nicola-Similkameen Innovative Forestry Society 2011 Forestry Plan [email protected]

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Nicola-Similkameen Innovative Forestry Society 2011 Forestry Plan NSIFS SUPPORT PERSONNEL

CEO/Management Glenn Thiem, RFT Funding Program Coordinator Forsite #330-42nd Street SW P.O. Box 2079 Salmon Arm, B.C. V1E 4R1 P: (250) 832-3366 F: 1-888-273-0209 [email protected] Administration/Bookkeeping Diana Davidson Integrated ProAction Corp. 1425 Hugh Allan Drive Kamloops, BC V1S 1J3 P: (250) 828-7977 F: (250) 828-2183 [email protected] Accountant/Auditor Sean Wandler, BBA, CA Daley and Company 900-235 1st Ave Kamloops, B.C. V2C 3J4 P: (250) 374-5577 F: (250) 374-5573 [email protected]

Ou Augus October 24, 2011t 2011st 2011 1


Appendix 5 – NSIFS Share Agreement

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Appendix 6 - Merritt Timber Supply Area Rational fo r AAC Determination

This document can be found on the Ministry of Forests Cascades Forest website at http://www.for.gov.bc.ca/hts/tsa/tsa18/tsr2009/18ts10ra.pdf

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Appendix 7 - Rationale for the NSIFS AAC Increase and Determination

This document can be viewed on the Southern Interior Forest Region Website at http://www.for.gov.bc.ca/rsi/ under IFPA determinations.

October 24, 2011 1


Appendix 8 -Forestry Plan References and Information Sources

• Forsite Consultants Ltd., Merritt TSA Timber Supply Review #4, Timber Supply Analysis Report, April 28, 2010.

• Timberline Natural Resource Group Ltd, Merritt TSA TSR 4 Data Package, September 9, 2009.

• Timberline Natural Resource Group Ltd, Smallwood Populations Site Index Audit, March 2008.

• Timberline Natural Resource Group Ltd, Change Monitoring Inventory: First Measurement, March 2008.

• Timberline Forest Inventory Consultants Ltd, Merritt TSA Enhanced Type 2 Silviculture Strategy Analysis, April 2007.

• J.S. Thrower & Associates Ltd., Change Monitoring Inventory Pilot Project for the Merritt IFPAs – Strategic Implementation Plan version 2, March 31, 2003.

• J.S. Thrower & Associates Ltd., Memo to NSIFS Technical Committee, Smallwood Site Index in Spatial Timber Supply Analysis, December 11, 2002.

• J.S. Thrower & Associates Ltd., Memo to NSIFS Technical Committee, Merritt IFPA Proposed Timber Supply Scenarios, January 7, 2003 (revised January 21, 2003)

• J.S. Thrower & Associates Ltd., Merritt TSA Predictive Ecosystem Mapping: Final Report, December 31, 2002.

• J.S. Thrower & Associates Ltd., Merritt TSA Predictive Ecosystem Mapping: Accuracy Assessment Report, December 19, 2002.

• J.S. Thrower & Associates Ltd., Natural and Managed Stand Yield Tables for the Merritt IFPA Innovative Analysis, March 31, 2003.

• J.S. Thrower & Associates Ltd., Site Index Adjustment for the Merritt IFPA Area – Final Report, March 17, 2003.

• J.S. Thrower & Associates Ltd., Site Index Adjustment for the Smallwood Population in the Merritt IFPA Area – Final Report, March 17, 2003.

• J.S. Thrower & Associates Ltd., Site Productivity Models for the ESSF in the Merritt TSA, March 22, 2002.

• J.S. Thrower & Associates Ltd., Vegetation Resources Inventory Statistical Adjustment for the Merritt TSA – Final Report (2003 Update), March 31, 2003.

• Keystone Wildlife Research, Environmental Plan Components 1999-2003. • Keystone Wildlife Research, Merritt IFPA Environmental Management Plan – Status

Report, prepared for NSIFS, March 2001. • Keystone Wildlife Research, Merritt Innovative Forestry Practices Agreement

Environmental Status Report March 2002 – Year 3. • Keystone Wildlife Research, Merritt TSA OGMA Selections and Rationale,

January 9, 2003. • Keystone Wildlife Research, Methodology for Developing the “X-Pert Model” to Assign a

Streamclass Within a Watershed, February 27, 2001. • Keystone Wildlife Research, Mule Deer Winter Range Definition and Management for the

Merritt TSA, March 2003.

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Nicola-Similkameen Innovative Forestry Society 2011 Forestry Plan • Keystone Wildlife Research, Spatial OGMA Designation for Four Landscape Units in the

Merritt TSA, March 2003. • Nicola Watershed Stewardship Fisheries Association, in co-operation with Keystone

Wildlife Research and Nk’losm Resource Management, Local Watershed Expert Model for the Merritt Timber Supply Area, September 2001.

• Nicola-Similkameen Innovative Forestry Society, Summary of April 2002 Public Review. • Nicola-Similkameen Innovative Forestry Society, Application for an AAC Increase for the

Merritt IFPAs: Amendment to Forestry Plan I, December 31, 2001. • Nicola-Similkameen Innovative Forestry Society, Initial IFPA Proposal - Enhanced

Forestry within the Merritt TSA Proposal for Innovative Forestry Practices Agreements, July 31, 1997.

• Nicola-Similkameen Innovative Forestry Society, J.S. Thrower & Associates Ltd., Timberline Forest Inventory Consultants Ltd., Keystone Wildlife Research, NSIFS Forestry Plan I, July 14, 2000.

• Nicola-Similkameen Innovative Forestry Society, letter to Regional Executive Director, Addendum to Forestry Plan I, December 31, 2001.

• Nicola-Similkameen Innovative Forestry Society, Share Agreement, April 2, 2001. • Nicola-Similkameen Innovative Forestry Society, Supporting Documentation for

December 31, 2001 AAC Increase Application, April 30, 2003. • Norgaard, Erik, President, Ardew Wood Products Ltd., letter to Regional Executive

Director dated August 14, 2003, NSIFS AAC uplift application. • Taylor, R.E., letter to regional managed dated January 21, 2002, re: Weyerhaeuser, Aspen

Planer, and Ministry of Forests 1999 Letter of Understanding. • Taylor, R.E. and H. de Visser, letter to regional managed dated December 17, 2003, re:

Weyerhaeuser, Aspen Planer, and Ministry of Forests 1999 Letter of Understanding. • Timberline Forest Inventory Consultants Ltd., NSIFS IFPA Innovative Timber Supply

Analysis – Final Draft, April 30, 2003. • Timberline Forest Inventory Consultants Ltd., Timber Supply Analysis Report, NSIFS,

Timber Supply Review 2 Benchmark Analysis, December 14, 2001. • Timberline Forest Inventory Consultants Ltd., Timber Supply Analysis Report NSIFS Base

Case and Innovative Timber Supply Analysis, April 2000. • Weyerhaeuser Company Limited, Aspen Planers Limited, and Ministry of Forests. Letter

of Understanding dated February 9, 1999.

Merritt TSA, Region, and District • Ministry Forests Lands and Natural Resource Operations, Cascades Forest District.

2011/2012 Merritt TSA Forest Health Strategy, April 2011. • Ministry of Forests, Increase in AAC Determination of Merritt Timber Supply Area,

Innovative Forestry Practices Agreement, BCFS, August 2, 2007. • Ministry of Forests, Increase in AAC Determination of Merritt Timber Supply Area,

Innovative Forestry Practices Agreement, BCFS, July 13, 2005. • Rationale for Increase in AAC Determination of Merritt Timber Supply Area, Innovative

Forestry Practices Agreement, BCFS, January 1, 2004. • Ministry of Forests. 2001. Merritt TSA timber supply analysis, March 2001.

October 24, 2011 3

Nicola-Similkameen Innovative Forestry Society 2011 Forestry Plan • Ministry of Forests. 2001. Merritt. Timber Supply Area Summary of public input on data

package and TSA analysis report, October 2001. • Ministry of Forests. 2002. Merritt TSA Rationale for AAC determination, January 2002. Provincial • BC Ministry of Forests, Lands, and Natural Resource Operations. 2011. Land Based

Investment Strategy 2011/12 to 2013/14. • BC Ministry of Forest, Mines, and Lands. 2010. Merritt Timber Supply Area, Rationale for

AAC Determination. December 2, 2010. • Sam Otukal, August 9, 2007. Approval for Smallwood Sampling Plan and Methods, Site

Index Audit. • Chief Forester. 2001. Memo dated April 6, 2001 to Regional Executive Directors [re:

stating timber supply analysis methodology related to Innovative Forest Practice Agreements (IFPAs)].

• Deputy Ministers of Forests and Environment, Lands, and Parks. 1997. Letter dated August 25, 1997 [re: conveying government’s objectives for achieving acceptable impacts on timber supply from biodiversity management].

• Forest Practices Code of British Columbia Guidebooks, BCFS and MELP. • Forest Practices Code Timber Supply Analysis, BCFS and MELP, February 1996. • Forest Practices Code of British Columbia Act, July 1995. • Forest Practices Code of British Columbia Act Regulations and Amendments, April 1995. • Minister of Forests. 1994. Letter dated July 28, 1994 to Chief Forester [re: stating the

Crown’s economic and social objectives for the province]. • Minister of Forests. 1996. Memo dated February 26, 1996 to Chief Forester [re: stating the

Crown’s economic and social objectives for the province regarding visual resources]. • Ministry of Forests. 1999. Policy 15.1 – Aboriginal Rights and Title. Effective date June 3,

1999. • Ministry of Forests. 2000. Innovative Forestry Practices Agreements: Handbook. • Nigh, G.D., 1998. Site Index Adjustments for Old-Growth Stands Based on Veteran Trees,

BCFS Research Branch, Working Paper 36/1998. • Nussbaum, A.F., 1998. Site Index Adjustments for Old-Growth Stands Based on Paired

Plots, BCFS Research Branch, Working Paper 37/1998. General • Technical information provided through correspondence and communication among staff

from the Ministry of Forests (FLNR), and the Ministry of Environment (MOE)

October 24, 2011 1


Appendix 9 - Ministry Of Forests Forestry Plan Checklist

Date received: Due date for approval: A. Forest and Range Practices Act Content Requirements

Item Yes No Other Comments Includes description of management area.

� 59.1 (6) (a) Attached in body Section 4 Page 13 and in appendix.

Includes description of where the innovative forestry practices will be carried out.

� 59.1 (6) (a) Areas described in detail throughout document. Section 3 page 15 outlines areas included and not included for IFPA activities.

Specifies the particulars of the innovative forestry practices.

� 59.1 (6) (b) Section 9, 10 and 11describe the particulars of the innovative practices and other associated resource practices the NSIFS are involved in and others they are considering to undertake.

Describes how the innovative forestry practices will be carried out.

� 59.1 (6) (c) Section 10 and 11 provide general overviews for the planned innovative &/or NSIFS activity. Section 11 provides an estimated budget and timeline to complete each project by fiscal year along with the specifics of each project in relation to the NSIFS Strategic Objectives. All activities are administered by the NSIFS and projects are completed by contractors – the NSIFS has no staff to complete projects.

Schedules when the innovative forestry practices will be carried out

� 59.1 (6) (d) Section 11 outlines a 5-year project workplan that clearly identifies the estimated funds and timelines for completion of each project. This section will be amended to reflect approved budgets annually and the amended sections will be forwarded to the FLNR for review.

Specifies how the innovative forestry practices contribute to improved productivity of the forestry resource.

� 59.1 (6) (e) Section 10 and 11 specify how innovative projects will lead to new productivity estimates of the forest sector. Within Section 10, innovative projects will focus on integrating timber and non-timber resource values to support new approaches in forest planning. Concurrent with this the NSIFS is committed to monitor new site index values and reforestation changes

October 24, 2011 2

Nicola-Similkameen Innovative Forestry Society 2011 Forestry Plan by ecological association and build this

information into the forest planning for the TSA.

Specifies how the innovative forestry practice will justify an increase in the allowable annual cut.

� 59.1 (6) (f) Projects in section 9 and 10 outline new opportunities to support and develop future AAC analysis and potential AAC increases. Each project has unique potential to provide changes related to operational feasibility within the THLB and non-THLB. New information will lead to better management practices on the resource base and help support the current and future increases in the AAC level.

B. Innovative Forestry Practices Regulation Requirements

Objectives: Yes No Description FP Section Improve First Nations involvement in resource management

� Incorporate co-management between Licensees, First Nations and Agencies in the Merritt TSA. The NSIFS is a non-profit organization and all society work is based on 100% quorum, therefore, all partners, including the First Nations, are integral to the management, structure and activities undertaken by the NSIFS.

All sections.

Develop an integrated, sustained forest management plan for the TSA

� Link Forestry Plan activities with other TSA initiatives such as Certification and SFMP. The NSIFS does not work to create certification for licensees in the Merritt TSA, however activities completed by the NSIFS are used for certification by NSIFS members. Each fiscal the licensees develop a SFMP and this document and the FP are used to support projects and funding allocations within the TSA.

All Sections.

Establish resource management goals for the TSA based on an understanding of the timber supply forecast

� Specific resource management goals are being developed to link timber supply forecasts to timber and non-timber values and inventories. The NSIFS Board of Directors has defined 6 Strategic Objectives that set the high level planning for innovative activities.

All Sections Strategic Objectives are defined in Section 1 pages 4 – 5.

Make the TSA less susceptible to future MPB

� The NSIFS is working to develop an application to support rapid removal of MBP wood and slow the progression of MBP within the pine forests.

Section 10.3.6

Complete the environmental plan

� Link timber and non-timber values to support new management plans in the TSA.

Section 10 10.2 Integrated

October 24, 2011 3

Nicola-Similkameen Innovative Forestry Society 2011 Forestry Plan forest

management. 10.4 Environmental sections

Complete PEM, growth & yield, forest inventory and habitat inventory programs

� Initiated monitoring strategies for pine stands, Smallwood and Douglas fir uneven age strata. NSIFS will utilize monitoring results to update inventories and develop spatial applications linking wildlife models with PEM for future timber supply analysis.

Section 10

Undertake changes to harvesting systems

� Not Applicable – small innovations being reviewed with Douglas Fir stands, but no work is being considered within this FP related to changes to harvesting systems.

Section 10 has a small component related to fir stands.

Develop First Nations co-management plans

� NSIFS works to develop co-management opportunities with First Nations. Two key projects are underway: Wildlife and plant spatial modeling of First Nation’s species of interest; and the Sustainable Forest Management Strategy – a process linking timber and non-timber models utilizing PEM to create management tools for each LU by BEC site series.

All Sections

Improve the management of dry-belt Fdi

� Weycan has completed work to support uneven age management options in the dry belt fir stands, but, with current MPB infestations, NSIFS funding will be directed towards innovative activities for areas impacted by MBP, therefore, no work will be conducted in the Fir stands.

Section 10 has a short section on Even age fir management. Section 11 has limited funds going towards conducting monitoring programs within the fir stands.

Enhance public involvement

� NSIFS has developed a Local Stakeholder Advisory Panel, a First Nations Elders Advisory and Public Communication Strategy to support enhancing public involvement related to IFPA activities.

Section 6 outlines the structure and how these groups fit into the NSIFS.

Develop corporate GIS capabilities

� NSIFS does not and will not create a company GIS body. All information is posted to the NSIFS website, and each member utilizes the information with their in-house GIS capacity.

Section 11 identifies funds to support hosting the website and posting deliverables to this site.

October 24, 2011 4

Nicola-Similkameen Innovative Forestry Society 2011 Forestry Plan Develop timber supply analysis capability

� All timber supply analysis is completed by contractors for the NSIFS. NSIFS has no in-house timber supply analysis capability. NSIFS is committed to develop innovative new approaches that link timber and non-timber values for future timber supply analysis.

Section 10 outlines the projects NSIFS plans to undertake and utilize for future analysis scenarios.

Develop silviculture regimes that better incorporate TSA objectives, future wood products considerations, wildlife and First Nations values

� NSIFS is committed to continue development of new silviculture strategies linking multiple values in Sustainable Forest Management Strategies. As well, NSIFS will continue to monitor post harvest silviculture practices of individual IFPA holders to support changes in free to grow estimates.

Section 10.2 and 10.3

2. The innovative forestry practices and other activities that may be the subject of an agreement under 59.1 (1) of the Act are the following: a) the implementation of harvesting methods or silvicultural systems that may

(i) increase the total amount of timber available to harvest in the timber supply area over the amount available under standard practices, or (ii) reduce the loss of productivity associated with permanent access structures from the loss of productivity under standard practices for similar terrain and timber types in the timber supply area;

(b) activities that result in the establishment of free-growing stands on (i) previously unforested areas, (ii) areas that are below stocking requirements and are not part of the holder's free growing responsibilities under section 70 (3) of the Forest Practices Code of British Columbia Act, or (iii) areas that

(A) have stands of timber with repressed growth or that contain brush or species that are not commercially valuable, and (B) are not part of the holder's free growing responsibilities under section 70 (3) of the Forest Practices Code of British Columbia Act;

(c) silviculture treatments on free growing stands; (d) silviculture treatments on sites that are not free growing in order to produce stands that exceed current growth performance or standards achieved using standard practices for the timber supply area; (e) the collection and analysis of new data, in accordance with specifications of the Chief Forester, to provide a more accurate representation of the forest composition and its expected rate of growth compared to the rate existing when the forestry plan is submitted or at any other time determined by the Regional Executive Director; (f) activities that will enhance and protect other resource values, including, but not limited to, water, fisheries, wildlife, biological diversity, soil productivity and stability, forage production, grazing and recreation values.

October 24, 2011 5

Nicola-Similkameen Innovative Forestry Society 2011 Forestry Plan C. Innovative Forestry Practices Agreement Requirements Item Yes No Section of

IFPA agreement

Comments

Includes input from the public.

� 4. (a) FP I was publicly reviewed and NSIFS recently held public review sessions to gather public comments for the NSIFS AAC application. FPII has been posted to the NSIFS website since August 2004, with no comments. FPII was presented to the First Nations partners and Local Stakeholder Advisory Panel – no comments were received. TSR #4 Analysis has gone through public input process. NSIFS currently issued first draft of Forestry Plan III to NSIFS Members. Public input is in the process regarding FP III and uplift request. NSIFS will continue to incorporate public comments into the management planning for IFPA activities.

Includes input from First Nations

� 4. (b) 9 Indian Bands are members of NSIFS and have full participation in the FP development and approval and have participated. First Nations representation on TAC will have an opportunity on first draft for direct technical input. NSIFS will work with the agencies to support agency consultation related to IFPA activities.

Includes input from MOE � � 4. (c ) MOE has representation on the NSIFS Technical Committee and has reviewed and supplied information to this document.

Input from the Ministry of Forests, Lands and Natural Resource Operations

� 4. (d) FLNR Merritt participates on the NSIFS Technical Committee and continues to supply information towards the development and review of all NSIFS documents.

Input from public groups. � 4. (e) To be conducted for FP III Input from others who may be affected.

� 4. (f) To be conducted for FP III

Schedule of incremental jobs � On March 30, 2005, the NSIFS submitted an AAC uplift request to deal with MPB issues. Current employment levels are outlined in the document and NSIFS is committed to provide the FLNR with FTE summaries within the annual report.

Base-level AAC included. � 13. where The TSR 4 base case will be used to

October 24, 2011 6

Nicola-Similkameen Innovative Forestry Society 2011 Forestry Plan required support future analysis. The NSIFS will

work with the FLNR to support the completion of new base case analysis information future TSRs and FP applications.

Particulars regarding First Nation participation in the innovative forestry practices and other activities that will be carried out

� 3. (g) All sections outline areas of FN participation. The 9 Indian bands working with the NSIFS participate fully in all IFPA activities and NSIFS management.

A schedule of incremental jobs consistent with the Proposal submitted by the licensees

� 10. New jobs created from future AAC uplifts will be monitored and this information will be supplied to the FLNR in the NSIFS Annual Report. NSIFS will support and create employment implementing IFPA projects.

D. Forestry Plan Outline Requirements Item Yes No Other Comments

Introduction. � Section 1 Description of Agreement Area

� Section 1 and 4

Current Practices � Section 3 and 6 Standards � Work will be conducted to Provincial

standards where applicable Issues � Issues are listed in Section 10 Inventory � Current inventory listed in Section 10

and referenced to TSR4 Written Description

� Section 4

Exhibit A Sketch

� Appendix 3

Current Uses/Values and Community Dependence

� Section 10

Inventories

� Section 10

Innovative Forestry Practices and Other Activities. [sec. 59.1(b)&(c)]

� Section 10 and throughout document

Strategic Analysis

� Not applicable

Particulars of the Proposed Activities

� Section 10 and 11

October 24, 2011 7

Nicola-Similkameen Innovative Forestry Society 2011 Forestry Plan Management Objectives

� All Sections

Economics sec.59.1(g)]

� Section 10

Productivity gains

� Section 10

Work Plan and Five Year Schedule [sec. 59.1(c)&(d)]

� Section 11

Planned Treatments

� Section 9 and 10

Employment [sec. 59.1(g)]

� Section 6

Operational research / Monitoring

� Section 9 and in workplan Section 10

Funding source / Investment plan

� Section 10 – five year workplan

Net expected AAC gain

� � The AAC increase will support the mitigation of long-term negative impacts to fiber availability.

Future management plans

� NSIFS has created an integrated database that supports linking timber and non-timber values creating innovative tools to manage by ecological association, by LU and by TSA. NSIFS needs to update the data and platform associated with this data base. Spatial information is in the works, database report to follow work plan accounts for this work.

Communications/Extension

� Communication strategy part of NSIFS Strategic Objectives.

Timber Supply Analysis [sec. 59.1(e)&(f)]

� TSR 4 recently completed (spring 2010). See Appendix 10 for 2011 uplift analysis.

Base Case Timber Supply Analysis Methodology

� NSIFS will utilize the previous TSR 4 Base case for future analysis and will ensure new information is incorporated when applicable.

Innovative Practices Scenario(s)

� Innovative practices are outlined in Section 9 and 10 and as projects progress the NSIFS will provide the FLNR with details in the Annual Report.

Appendices (to the forestry plan

� Part of document.

October 24, 2011 1


Appendix 10 – NSIFS 2011 AAC Application

Memorandum

#330 42nd Street SW, PO Box 2079, Salmon Arm BC V1E 4R1 250-832-3366 phone 1-888-273-0209 fax

TO: GLENN THIEM, RFT – NSIFS COORDINATOR

FROM: REG DAVIS, RPF AND PATRICK BRYANT, RPF

DATE: OCTOBER 21, 2011

SUBJECT: MERRITT TSA UPLIFT ANALYSIS PROJECT

Background

An Innovative Forest Practices Agreement (IFPA) was first awarded to the Nicola-Similkameen

Innovative Forest Society (NSIFS) on March 25, 1998. The Merritt IFPA holders are now updating

their Forestry Plan and application for AAC uplift in order to extend the expiry date of their

agreement to December 31, 2015. The analysis work described in this document was

undertaken to support an IFPA uplift application.

Existing AAC Uplift – The current allowable annual cut (AAC) uplift1 attributed to innovative

forest practices is 330,700 m3/yr. The AAC uplift application submitted by IFPA holders was for

549,000 m3/yr but was discounted to account for, among other things, perceived risk and

uncertainties associated with forest inventory volumes and site index (SI) estimates at low

elevations. Specifically, the statutory decision maker found that:

• The VRI adjustment of +6% was considered reasonable but there were questions around the

Fraser Protocol adjustment process and why it did not produce reliable results. IFPA-holders

were requested to work with appropriate government staff to provide an updated timber

supply analysis with an acceptable adjustment using the Fraser protocol.

• The SI adjustment applied to managed stands at low elevations had issues with the sample

population and concerns existed around whether the short-term harvest flow increase was

the result of improved yields in the mid- and long-term. The short term AAC uplift was

consequently reduced by 21,000 cubic meters. IFPA-holders were requested to continue to

monitor the productivity of these stands.

Approach

This analysis assessed the timber supply contribution of only two of the IFPA’s innovative

activities in order to keep the assessment simple and focused on major influencers. The two

activities are forest inventory projects completed under the direction of the NSIFS: a site index

adjustment2 (SIA) and Vegetation Resources Inventory (VRI) phase 2 and net volume adjustment

factor (NVAF) adjustment (VRIA).

This analysis prepared an IFPA Base Case run to compare against three sensitivities: 1) SIA alone,

2) VRIA alone and 3) Composite run with SIA and VRIA combined. These runs are discussed in

the results section below. While the IFPA Base Case is not the same as that used in 2008 or in

the latest timber supply review3 (TSR4) for the Merritt Timber Supply Area (TSA), it does apply

the same modeling methods except for the changes discussed below. An outline of these

changes was provided to the Ministry of FLNR on August 18, 2011.

October 21, 2011

Page 2 of 4

Updated TSR 4 Database: After the TSR4 was completed, it was discovered that the TSR 4 data

package was missing many harvest depletions. These depletion updates were subsequently

added to the TSR4 data, resulting in a “post-TSR4 dataset”. Results from several model runs

that used the updated post-TSR4 dataset were provided to and considered by the Chief Forester

in his AAC Determination for the Merritt TSA. The updated post-TSR 4 dataset was used in this

analysis, which had changed considerably from the one used in the 2003 innovative timber

supply analysis4, in support of the AAC uplift application.

MPB Epidemic: TSR 4 assumptions concerning MPB mortality and salvage harvesting were not

included in this project in order to keep the analysis clearly focused on impacts from the SIA and

VRIA projects. Inclusion of MPB mortality and salvaging works to shift harvest timing /levels over

time, but will not change the additional harvest volumes that can be attributed to the innovative

projects. Avoiding the complexity of MPB mortality, salvage uplifts shelf life dynamics, and

regeneration patterns post MPB allows the analysis to more clearly illustrate the impacts of the

innovative activities.

Other changes: Consistent with the latest AAC determination for the TSA, this analysis did not

apply a smallwood partition. Since the MPB dynamics were eliminated, the analysis also applied

a steady assumption for non-recoverable losses (143,628 m3/yr) throughout the planning

horizon. As well, the 300,000 m3/yr loss to spruce-leading stands was maintained within the

spruce bark beetle area (Smith-Willis LU and east side of Similkameen LU).

Innovative Forestry Practice - VRI Phase II/NVAF Adjustments: In 1999 the NSIFS initiated a VRI

Phase II ground sampling project5 to develop forest inventory adjustments to height, age and

volume. The adjustments were updated in 20036 to incorporate results from the NVAF project

and to apply the adjustment process used in the "Fraser Protocol". These VRI statistical

adjustments were updated again in 20097 using VDYP7 which suggested inventory volumes in

the Merritt TSA are underestimated by approximately 11.6% on average.

For this analysis, the IFPA Base Case applied unadjusted natural stand yields prepared using

VDYP7. The VRIA sensitivity incorporated the statistical adjustments from the 20097 analysis.

Innovative Forestry Practice - Site Index Adjustment and Change Monitoring Inventory: In

2003 the NSIFS completed a SIA2 project that developed reliable estimates of potential site

index (PSI) for post-harvest regenerated (PHR) stands. On average, the adjusted PSI estimates

were higher than indicated in the inventory by about 4.1 meters in the low elevation areas (i.e.,

less than 1,650 meters elevation), and 2.0 meters in the high elevation area.

A Change Monitoring Inventory8 (CMI) first measurement was completed in the Merritt Timber

Supply Area (TSA) between 2005 and 2007, which showed an average of about 57 m3/ha more

volume than indicated by the yield curves. The study also concluded that assumptions used to

create the yield tables in the original AAC Uplift application were reasonable, if not conservative.

In this analysis, the IFPA Base Case applied the unadjusted inventory attributes to produce

managed stand yields with TIPSY 4.1. The SIA sensitivity run applied the managed stand yield

tables produced for TSR43. These yields were generated using TIPSY 4.1 after applying the

adjusted PSI estimates developed from the SIA2 project for the low elevation areas. Yields for

high elevation stands were generated from unadjusted PSI estimates. In this analysis, the

October 21, 2011

Page 3 of 4

average increase in site index within the THLB was 3.36 meters.

Results

The table below presents changes in potential annual harvest rates relative to the IFPA Base

Case with corresponding results from the 2003 innovative timber supply analysis4:

Run/Sensitivity Short-Term

Decades 1-2

Mid-Term

Decades 3-8

Long-Term

Decades 9-25

2003 Uplift Analysis

(Scenario)

IFPA Base Case 0 0 0 0 (C)

VRIA 370,000 317,585 26,706 158,918 (D)

SIA 210,000 359,933 589,706 413,185 (E)

Composite Run 570,000 628,933 659,059 549,121 (K)

The combined results from both the SIA and VRIA projects (i.e., Composite Run) increases the

short-term harvest rate by 570,000 m3/yr. This suggests an IFPA uplift of 570,000 m

3/yr – slightly

larger than the 2003 uplift request (549,211 m3/yr).

All four harvest flows are shown in the figure below. The absolute harvest rates are of less value

than the differences between harvest flows because, as discussed earlier, there has been no

attempt to reflect the MPB uplift/salvage or mortality currently occurring in the Merritt TSA. The

differences between flows provide a clear indication of the impact of the innovative activities,

individually and in composite.

The short term, and to some degree the mid-term, harvest levels are influenced by the standing

volume of natural stands. Growth rates for managed stands typically govern the mid-term and

long-term harvest levels. The harvest transition from predominantly natural stands to managed

stands normally influences the mid-term harvest rate. But the short term harvest rate can also

show an upward influence where higher growth rates from managed stands allow this transition

October 21, 2011

Page 4 of 4

to occur earlier.

IFPA Base Case – This scenario applies the modeling methods used in the latest TSR43 for the

Merritt TSA except for the changes discussed above. The IFPA Base Case run is used as the

baseline from which to compare the outcomes associated with implementing the innovative

activities.

VRI Adjustment – In this sensitivity, the higher starting harvest level is supported by higher

starting forest inventory volumes. Over time, as natural stands are converted to post-harvested

regenerated (PHR) stands, the harvest rate is governed by the managed stand growth rates.

Since these PHR stands have the same growth rates as those in the IFPA Base Case, the long

term harvest falls towards, and will eventually equal, the IFPA Base Case harvest levels. The

VRIA sensitivity run suggests a short-term AAC increase of 370,000 m3/yr.

SI Adjustment – In this sensitivity, the growth rates in PHR stands are much higher with the

adjusted PSIs, so mid- and long-term harvest levels increase significantly. Moreover, earlier

access to the high proportion of young and immature stands in the Merritt TSA supports an

increased short term harvest rate, and natural stand volumes now have to be metered out over

a shorter time frame. The SIA sensitivity suggests a short-term AAC increase of 210,000 m3/yr.

Composite – This sensitivity combines assumptions from both the VRIA and SIA and suggests a

short-term AAC increase of 570,000 m3/yr.

1 Zacharatos, TP. 2005. Merritt Innovative Forestry Practices Agreements. Rationale for Increase in Allowable Annual

Cut (AAC) Determination. Effective July 13, 2005. BC Ministry of Forests and Range, Kamloops, BC.

2 Thrower, JS. 2003. Site Index Adjustment for the Merritt IFPA Area. Final Report. Prepared for the Nicola-

Similkameen Innovative Forestry Society. Project: MTI-312. March 17, 2003. J.S. Thrower & Associates Ltd.,

Vancouver, Kamloops, BC.

3 Davis, R. 2010. Merritt TSA Timber Supply Review #4. Timber Supply Analysis Report. Prepared for: Nicola-

Similkameen Innovative Forestry Society. Final Version: April 28, 2010. Forsite Consultants Ltd., Cranbrook BC.

4 Timberline Natural Resource Group Ltd. 2003. Innovative Timber Supply Analysis. Prepared for: Nicola-Similkameen

Innovative Forestry Society, Merritt, BC. Final Draft. April 30, 2003. Timberline Natural Resource Group Ltd.,

Victoria, BC.

5 Thrower, JS. 2001. Nicola-Similkameen Innovative Forestry Society. Vegetation Resources Inventory Statistical

Adjustment for the Merritt TSA. Final Report. Prepared for Lloyd Wilson, R.P.F. Kamloops Forest Region,

Ministry of Forests and Range, Kamloops, BC Project: MTI-181-216. March 31, 2001. JS Thrower & Associates

Ltd., Vancouver, BC.

6 Thrower, JS. 2003. Nicola-Similkameen Innovative Forestry Society. Vegetation Resources Inventory Statistical

Adjustment for the Merritt TSA. Final Report (2003 Update). Project: MTI-416. March 31, 2003. JS Thrower &

Associates Ltd., Vancouver, BC.

7 Churlish, G. and Jahraus, K. 2009. Merritt TSA - Documentation of Analysis for Vegetation Resources Inventory

Statistical Adjustment. Draft report. Prepared for: Nicola-Similkameen Innovative Forestry Society, Merritt, BC.

November 2009. Jahraus & Associates Consulting Inc., Maple Ridge, BC, and Churlish Consulting Ltd., Victoria,

BC.

8 Ewen, S. 2008. Merritt Timber Supply Area Change Monitoring Inventory: First Measurement. Prepared for: Nicola-

Similkameen Innovative Forestry Society, Merritt, BC. Project Number: BC0108620. March 2008. Timberline

Natural Resource Group Ltd., Kamloops, BC.

October 24, 2011 1


Appendix 11 – NSIFS Forestry Plan II with Appendix 1-12 Accessible at Forsite FTP website: ftp://forsite.ca/ Username: fiaftp Password: meadow

October 24, 2011 1


Appendix 12 - NSIFS 2001 AAC Application FTP Log-In ftp://forsite.ca/ Username: fiaftp Password: meadow

Documents

Nicola -Similkameen Innovative Forestry Society 2011 ... 2011_FP_3.pdf · SBFEP - Ministry of Forests Small Business Forest Enterprise Program : in the Merritt Timber Supply Area