SAVE BC'S PUBLIC LANDS

Backgrounder on

TimberWest Goal 2 Exchange

1. Removing existing private land from the TFL (Schedule A lands) removes that land from the requirements of the Forest Practices Code. It will instead be regulated under the proposed standards for private land forests practices which are wholly inadequate for the protection of fish and wildlife habitat, tourism, values, or most other public values. Together with the MacMillan Bloedel deal the removal of this land from the oversight of the Forest Practices Code removes the ability of the Ministry of Environment to manage for habitat and other environmental values on virtually all land in the E&N land grant (east side of Vancouver Island, from Campbell River to Sooke). As most of these lands are within the E&N land grant, the timber cut from it will no longer be subjected to provincial export controls for raw logs. Other Schedule A lands selected for removal are in the Queen Charlotte Islands and Powell River.
2. In the final assessment of the TW deal, the removal of land from the TFL was valued, in the ‘high’ scenario, at about $4/m³ - that covered both the exemption from the Code and the export premium (as this timber can now be exported raw). Yet in information filed by TW with the securities exchange, TW claims that the Code costs them $10-$15/m³ . Using the mid-point, and TW’s claim of an MAI (mean annual increment - how fast the trees grow) of 7m³ /ha/year for its private lands and an operability ratio of 87%, the value of removing 61,000 ha from the TFL for the Code exemption alone is:

61,000 ha .87 x 7m³ /ha/yr x $12.50 = $4,643,625/year; PV_8%,50yrs = $56,807,715

Using these numbers for the MB deal, the value of removing 91,000 ha should be:

91,000 ha x .87 x 7m³ /ha/yr x $12.50 = $6,927,375; PV_{8%,50 yrs} = $84,745,936

3. The TFL removal was independently assessed at least twice. The first assessment resulted in a value of $12million to TW; the government thought that was low and requested another valuation. TW agreed, on the condition that whatever value resulted would be the final one. The government agreed, and the final valuation came out at $9.3 million.

Other Compensation Deals Currently Under Negotiation

Only the Slocan deal has reached ‘the currency stage’, i.e., where they’ve discussed land vs. cash. However, the MacMillan Bloedel deal is considered a model for all of them:

1. Slocan Forest Products and Atco-Slocan - a compensation amount of $600,000 has been agreed to, and 200ha of land has been offered; the compensation is for ‘improvements’ (roads, bridges) that were subsumed by protected areas created by the Kootenay Land Use Plan.
2. International Forest Products – compensation for the Lower Mainland Protected Areas Strategy; these negotiations are not yet to the currency stage.
3. West Fraser Timber – compensation for protected areas created by the Cariboo-Chilcotin Land Use Plan; preliminary talks.
4. Nine Licensees with Tree Farm Licensees and Forest Licenses affected by the Nisga’a treaty – these potential claims have been identified, but negotiations have not been entered into yet. While lands transferred to the Nisga’a under the treaty will be covered by regulations equivalent to or better than the Forest Practices Code, lands given to logging companies will likely be covered by the proposed regulations for private forest land which provide virtually no protection for fish, wildlife, tourism or other public values.

For More Information

The Campaign to Save BC’s Public Lands is a loose network of social justice, environmental and labour groups that support a set of core principles about resisting privatisation and promoting community control of forests, in a manner that is fair to all British Columbians and respects the rights and title of First Nations.

To find out more about the Campaign or for further information about the material in this backgrounder, please contact:

Lisa Matthaus Forest Policy Analyst Sierra Club of BC 1525 Amelia Street Victoria, BC V8W 2K1 Phone: 250.386.5255 Fax: 250.386.4453 Email: matthaus@islandnet.co

Backgrounders MacMillan Bloedel Settlement Agreement TimberWest Goal 2 Exchange Privatisation - Environment Issues Privatisation - Implications for First Nations Privatisation - Implications for Community Stability Compensation Campaign Principles [ Forestry ]