Volume 2, Issue 7 July, 2004

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President's Memo
BC Forest Management Certification Status
Professor Cashore Report a Valuable Tool
BC Economic Expansion Underway
Edmonton to Host International Gathering of Foresters
Forest History Feature: Boards, Boxes and Bins
Construction of Slocan-LP OSB Corp's OSB Plant Underway
Forest Companies Achieve 99% Code Compliance
CWC Publishes First Bulletin of its Sustainable Building Series
Award Winning Forest Fire Reporting in BC
Softwood Lumber Trade Update
Environmental Management Act Brought into Force

Next COFI Board Meeting:
September 16, 2004
Prince George


Upcoming COFI Events

COFI Board Meeting

November 2, 2004, Vancouver
December 7, 2004, Vancouver



BC Forest Management Certification Status

As of June 2004 over 55 million hectares of forest land in BC were certified under one or more of the ISO, CSA, SFI and FSC standards. The most common certification is ISO at 44.8 million hectares, followed by SFI at 11.9 million hectares.

For more information go to the Canadian Sustainable Forestry Certification Coalition website at:
http://www.certification
canada.org/status.htm


Recent reports from a variety of sources such as major banks and independent think tanks confirm that British Columbia's economy is going through a very real rejuvenation. While there are a number of factors at play the current provincial government can take a bow for playing a significant role in creating a much improved investment and business climate in the province. There is a level of confidence in the business community not seen for many years.

However, it must disappoint government officials when they see one sector played off against another rather than celebrating the successes being enjoyed. Too often commentators fall into the trap of comparing one industry to another when we should be working towards stability and growth in all sectors. "Tourism will replace forestry" is one comment that never ceases to amaze me. We have a great tourism industry in BC and one that should be supported and its growth nurtured. But a quick read of Stats BC's Tourism Monitor confirms that tourism's contribution to our province's gross domestic product (GDP) is one-half that of forestry. And when you consider just how much of the travel business in BC is business travel generated by the forest industry it really does drive home the point that we must take pride in the sectors we have and work to develop them all, not one at the expense of another.

What this issue does highlight is the need for the forest industry and those who depend upon it to ensure British Columbians understand the significance of the contribution made to our Province's economic stability by the sustainable use of our forests.



John Allan


A ground-breaking independent study just released by Yale Professor Dr. Ben Cashore is good news for all British Columbians and a source of pride for those who work in the forest industry.

Professor Cashore studied and compared the forest policy regulations and practices in 38 international jurisdictions. His team of researchers visited the jurisdictions and reviewed circumstances that ranged from western European countries with a long history of forest management, through BC provinces and U.S. states to developing countries that must manage sensitive forests in the midst of political upheaval and uncertainty.

The study looked at how each of the jurisdictions responded to five key forest practices criteria - riparian zone regulations, clear cutting regulations, road building, reforestation requirements and allowable annual cut regulations. It also looked at plantation management, biodiversity, enforcement and third-party certification.

The resulting report will be a valuable tool for Canada and British Columbia in confirming for our customers in established and emerging markets that they can be confident in our forest regulatory regime and performance in meeting those regulations.

The report, entitled "Global Environmental Forest Policies: Canada as a Constant Case Comparison of Select Forest Practice Regulations", provides us with convincing evidence that forest practice regulations in Canada and B.C. are among the most stringent in the world.

For more information and a link to the report go to: www.bcforestinformation.com


BC Economic Expansion Underway

According to the Business Council of BC and the Canada West Foundation, growth in BC's economy has picked up.

The BC Economic Index developed by BCBC posted a 1.9% gain in the 2nd quarter of 2004. This is the fourth consecutive increase since the economy was hit by SARS and other external factors a year ago. BCBC concludes that the province's economy is poised to grow by at least 3% in 2004, ahead of most projections for the national economy.

Canada West Foundation Chief Economist Todd Hirsch says that BC's economy is finally positioned for solid economic growth this year and next in a report called "Out of the Ashes: BC's Economy in 2004"
According to the Canada West news release, Hirsch noted the economic challenges faced by BC - the ongoing softwood lumber trade dispute, SARS, and forest fires were devastating for this economy, but "tide has finally turned."

There is a renewed optimism in practically every sector, he said. Despite the unresolved trade dispute with the US, the province's forestry sector has improved productivity and is enjoying high commodity prices. The mining and natural gas sector are also expanding, thanks again to solid prices and a positive business environment. Tourism is expected to make a modest recovery and the province's film and TV production industry is booming.

"But the crown jewel in the province's economic optimism is the 2010 Winter Olympics," Hirsch added. "This is certain to spur construction and service sector employment over the next five years."


For more information see:
The BCBC website:
http://www.bcbc.com
The Canada West Foundation website:
http://www.cwf.ca/


The year's largest gathering of forest practitioners in North America will occur when forestry professionals from Canada and the United States meet October 2-6 in Edmonton, Alberta. Organized under the theme "One Forest Under Two Flags," the program for this international gathering offers attendees new discoveries and insights about the forests that extend into both countries and will enhance the collegiality and camaraderie between forest practitioners on both sides of the border. The meeting will be organized by the Society of American Foresters (SAF) and the Canadian Institute of Forestry/ Institut forestier du Canada (CIF/IFC).

The meeting will offer numerous scientific and technical sessions and opportunities for professional development that are available nowhere else.

Sessions devoted to international forest management, North America's forest products marketplace, sustainable forestry, forest health, fire management, and ecological restoration have been scheduled, and there will be a host of papers and posters on topics ranging from ecological forest management to enhanced fiber production.

Several technical field workshops and tours to several of Alberta's newest and most productive lumber mills are planned, as are outings to the region's leading forest research and development facilities.

The joint meeting between CIF/IFC and SAF will be the latest in a long series of meetings between the two national forestry organizations that began in Ottawa in 1930. More recent meetings have taken place in St. Louis, Missouri, in 1978; Quebec City in 1984; and Anchorage, Alaska, in 1994.

For more information about the CIF/IFC and SAF Joint 2004 Annual General Meeting and Convention, visit the SAFwebsite at http://www.safnet.org/convention/index.cfm or the CIF/IFC site at www.cif-ifc.org.
The Canadian Institute of Forestry/Institut forestier du Canada (CIF/IFC) is the national voice of forest practitioners. The CIF/IFC (formed in 1908) organized in 23 sections across Canada represent members who are foresters, forest technologists and technicians, educators, scientists and others with a professional interest in forestry.

The Society of American Foresters is a nonprofit organization that represents more than 17,000 professional foresters and natural resource professionals. It is the scientific and educational association representing the profession of forestry in the United States. The Society's primary objective is to advance the science, technology, education, and practice of professional forestry for the benefit of society.

One Forest Under Two Flags - Joint AGM/Convention CIF/IFC and SAF website:
www.cif-saf-2004convention.org


In order to highlight some history of BC's most important industrial sector, COFI will be featuring excerpts from Boards, Boxes and Bins, a recently published book about the Okanagan lumber industry by Sharron Simpson, in future newsletters. The book chronicles the story of Stan Simpson whose company S.M. Simpson Ltd became the largest year round employer in the Okanagan the 1950s and 60s. S. M. Simpson Ltd.'s operation at in Kelowna's north end is currently owned and operated by Riverside Forest Products.

Look for excerpts in future editions but, if you can't wait, you can buy the book at:
Mosaic Books, Kelowna,
1 (800) 663 -1225 for $29.99 or through the publisher, Manhattan Beach Publishing, 1850 Abbott Street, Kelowna, V1Y 1B5, also available at
boardsboxesbins@yahoo.ca


Slocan-LP OSB Corp President Bill Hebert, Board Member and champion of the project Ike Barber, Canfor CEO Jim Shepherd, LP CEO Mark Suwyn, Ft. St John Mayor Steve Thorlakson, West Moberly Chief Roland Willson, Forests Minister Mike de Jong and Peace River North MLA & Minister of Energy Mines and Petroleum Resources Richard Neufeld turned the first sod to officially launch construction of the facility. A D-9 Cat was idling in the background ready to commence the groundbreaking work in earnest once the ceremonies concluded.

The facility has a completion date of late 2005. It will create some 300 construction jobs over the 18 month construction phase and, when in full production, will provide 150 jobs in the mill and 300 jobs in harvesting and forestry operations. The mill will cover an area the equivalent of 10 football fields and is designed to produce 820 million square feet of paneling from 1.1 million cubic metres of aspen and cottonwood.

The use of deciduous timber from the Peace River area will complement the existing coniferous timber based sawmill industry and the pulp and OSB production from deciduous timber in the area. Taking advantage of the fact that it is an entirely new project, the venture has been able to arrive at a memorandum of understanding with six Treaty 8 First Nations on issues related to incremental business and employment opportunities as well as resource planning and development approaches in the area.

For further information contact:
Lee Coonfer, Manger Public Affairs and Corporate Communications, Canfor (604) 661-5225 or David Dugan, Manager Corporate Communications, Louisiana-Pacific Corporation (503) 821-5285.



The Ministry of Forests Compliance and Enforcement Branch recently released Annual Reports for 2000/01, 2001/02 and 2002/03. This time the reports have been produced in a new format. The Reports now provide statistics based on license type i.e.: Major Licences, Small Business Forest Enterprise Program, Woodlot and Others. The statistics for these three years for major licensees are very positive. According to the reports, there were close to 45,000 inspections between 2000 and 2003 and only 481 "enforcement actions" such as violation tickets, penalties and remediation orders - slightly less than 1% of inspections - were taken.

99% of the time the government's inspections of major licensees forest management actions found full legal compliance with the very onerous and stringent Forest Practices Code Act of British Columbia - a job well done by all!

For more information see the MOF website: www.for.gov.bc.ca/hen/


The Canadian Wood Council has released "Energy and the Environment in Residential Construction", the first bulletin of a new series entitled the "Sustainable Building Series". The publication is the first of its kind as it provides a comparative environmental impact life cycle assessment of the embodied and operating energy of steel, concrete and wood in residential construction. The impact assessment includes primary energy, global warming potential, air and water pollution, resource use, and solid waste.

The embodied energy in building includes the non-renewable energy consumed in the acquisition of raw materials, their processing, manufacturing, transportation to the site and construction. The operating energy includes the non-renewable energy required to heat and cool our buildings. By combining the effects of both the embodied energy of the structure and the operating energy of the building, the designing community and governments now have a better understanding of the impact of their choice of building material.

The publication will be distributed to 25,000 architects, engineers, governments, academia and wood manufacturers. A French version will soon be made available.

For more information, please contact Linda McPhee by phone: (613) 747-5544
ext. 227 or go to the CWC website: www.cwc.ca


Award Winning Forest Fire Reporting in BC

The Radio-Television News Directors' Association (RTNDA) honored the very best in radio and television journalism at its BC Regional convention in Prince George on May 28th. COFI was one of the sponsors of this event.

These coveted awards attract competition from across the broadcast media industry. The winners of the BC regionals went on to compete at the national level at the RTNDA national convention in Saskatoon on June 12.

For 2003, seven of the twenty-two awards were for reporting that was related to forest fires. This high number illustrates the profound impact the wildfires of the summer of 2003 had on people in BC. In accepting their awards, many of the journalists spoke of how people, communities, and even journalistic competitors came together in a spirit of cooperation in response to the fires.

For further information, please contact Steve Kozuki by e-mail: kozuki@cofi.org or by phone: (250) 564-5136.



Please see the June newsletter for a comprehensive summary of the status of Canada's softwood lumber trade litigation. Key upcoming dates/decisions include:

July 30, 2004. The second Remand Determination of the Department of Commerce. (The first Remand Determination set the subsidy rate at 13.14%).
August 2004. The Decision of the NAFTA Panel on the Department of Commerce's second Remand Determination with a key issue being the return of West Fraser's cash deposits.
August (late) 2004. NAFTA Panel Decision on the second Remand Determination of the International Trade Commission on threat of injury.
October 2004. Department of Commerce hearings on the AD and CVD rates for the first Administrative Review (final rates set December 7, 2004).


For more information please see the following websites:

BC Lumber Trade Council:
www.bclumbertrade.com

Government of Canada:
www.dfait-maeci.gc.ca/eicb/softwood/menu-en.asp

Government of BC:
www.for.gov.bc.ca/HET/softwood/index.htm


A Publication of the Council of
Forest Industries


Suite 1501-700 West Pender St.
Pender Place I Business Building
Vancouver, B.C. V6C 1G8

Phone: (604) 684-0211
Fax: (604) 687-4930
E-mail: info@cofi.org
Website: www.cofi.org

Editor: Anne Mauch

Desktop Publishing: Anne Ho



On July 7, 2004, the Environmental Management Act (EMA) was brought into force. Additionally, two new Regulations were registered, and a number of others were amended. Briefly, this includes:

Most of the EMA was brought into force, with the exception of some consequential amendments to other legislation. This includes Bill 57 (that is, the EMA) which was introduced late in 2003, plus a number of amendments which were made to it in 2004.
The Waste Management Act and the Environment Management Act are now repealed. All Regulations created under the Waste Management Act are deemed to have been created under the Environmental Management Act.
The Conservation Officer Service Authority Regulation was registered. This sets out the additional legislation over which Conservation Officers have jurisdiction. These include the Ecological Reserve Act, the Forest and Range Practices Act, the Forest Practices Code of British Columbia Act, the Fish Inspection Act and the Transport of Dangerous Goods Act.
The Waste Discharge Regulation was registered. This Regulation sets out the industries which must continue to have a permit under the Environmental Management Act as well as those which may operate under a Code of Practice. It also sets out the provisions for registration and operation under Codes.
The Special Waste Regulation was amended to change its name to the Hazardous Waste Regulation. In addition, there were amendments to provisions regarding biomedical waste, planning, onsite treatment facilities, manifest requirements, consignors, and storage of hazardous waste.
28 Regulations were amended to incorporate the name of the Environmental Management Act, to change "Managers" to "Directors" and references to "special waste" to "hazardous waste".
The Conditional Exemption Regulation was repealed.
The Pulp Mill and Pulp and Paper Mill Liquid Effluent Control Regulation and the Waste Management Act Municipal Sewage Regulation were amended.
The Contaminated Sites Regulation was substantially amended. These amendments included the definition of "contaminated site", changes to the exemptions from responsibility for remediation, and soil relocation agreements.


Courtesy of:
Janice H. Walton
janice.walton@blakes.com
Blake, Cassels & Graydon LLP
Phone: (604) 631-3354
Fax: (604) 631-3309


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