The Evolution of Forest Management Agreements On the Weldwood Hinton Forest The Foothills Model Forest History Series Volume 3 January 2002 Dr. Peter J. Murphy P. J. Murphy and Associates Dr. Martin K. Luckert University of Alberta Funding for this project has been provided by Weldwood of Canada Limited, Foothills Model Forest and the Forest Resource Improvement Association of Alberta. Disclaimer The views, statements and conclusions expressed and the recommendations made in this report are entirely those of the authors and should not be construed as statements or conclusions of, or as expressing the opinions of the Foothills Model Forest, or its partners and sponsors. Deputy Minister R.W.(Bob) Steele and North Western Pulp & Power Vice President I.K.(Ivan) Sutherland signing the 1968 Forest Management Agreement – doubling the size of the forest management area and setting the stage for a major pulpmill expansion which did not happen. TABLE OF CONTENTS Chapter Title Page Acknowledgements i Preface -- About this Series ii Preface -- A Question of Terminology -- What’s in a name? iii 1 INTRODUCTION - 1 2. FOREST POLICIES - A brief review 1930-51 5 2.1 Introduction 5 2.2 Historical Review 5 3. EVOLUTION OF THE FOREST MANAGEMENT 14 AGREEMENTS 3.1 Evolution of the Agreement 1949-54 14 Agreement, Locating the FMA and Mill 3.2 Evolution of the Agreement 1954-68 27 Starting up the Forest Management and Mill Operations 3.3 Evolution of the Agreement 1968-77 55 Land Use and Loss of the Reserve Area · Historical Backdrop 55 · Introduction 57 · Land Use and Timber Damage Assessment 58 · Resurgence of Coal Mining 63 · Deadline for Mill Expansion and Cancellation of PRA 66 · Enhanced Forest Management 81 82 · Warrack-Sutherland-Accord of 1974 87 · Operating Ground Rules and the ECA Report 3.4 Evolution of the Agreement 1977-88 90 Determined Pursuit of Expansion · Historical Backdrop 90 · Introduction 92 · 1982 Amendment to the Agreement 92 · The Berland Timber Development Area 93 · 1988 Forest management Agreement 110 3.5 Evolution of the FMA 1988-2000 131 Resolving Some Residual FMA Issues · Historical Backdrop 131 · Latent Issues in 1992 137 · Repeal of Seedlings Clause -- re-negotiations for 1995 138 · Further Amendment to the 1988 Agreement in January 1998 144 · Continuing Discussions and Refinements from 1990 145 3.6 Evolution of the Agreement Beyond 2000 154 Some Ongoing Issues · Costs of SFM and Increasing Responsibly 154 · Forest Land Management and Cumulative Impacts 156 · Environmentalism and Marketing 156 · 1998 Forest Fires Highlight Inherent Risk 157 · Evergreen renewal - start of negotiations 2000 158 · Softwood Lumber Dispute: Canada-U.S. 2000-2001 158 4. SUMMARY 160 4.1 Major Events in the Evolution of the Agreement 160 4.2 Highlights of the Agreement 162 4.3 Spin-offs 167 5. ANALYSIS OF THE EVOLUTION OF THE 170 WELDWOOD FOREST MANAGEMENT AGREEMENT 5.1 Introduction 170 5.2 Evolutionary Forces Driving Change in the Weldwood 170 Agreement 5.3 Evolutionary Changes to Characteristics of the Weldwood 171 Agreement 5.3.1 Duration 172 5.3.2 Fees 172 5.3.3 Exclusiveness and Comprehensiveness 176 5.3.3.1 Timber Harvesting Rights 176 5.3.3.2 Timber Management Rights 178 5.3.3.3 Non-Timber Forest Rights 180 5.3.3.4 Rights to Fossil Fuels 181 5.3.4 Size Specifications 181 5.3.5 Transferability 182 5.3.6 Use Restrictions 183 5.3.7 Allotment Type 184 5.3.8 Operational Requirements 184 5.3.8.1 Harvesting Requirements 185 5.3.8.1.1 Sustained Yield Requirements 185 5.3.8.1.2 Harvesting - Protecting Non-Timber values 186 5.3.8.2 Processing Requirements 186 5.3.8.3 Management Requirements 187 5.3.8.4 Public Participation 188 5.3.9 Operational Controls 189 5.3.10 Security 190 5.4 Summary and Conclusions 191 6. REVIEW AND CONCLUSIONS 192 6.1 Introduction 192 6.2 Return to the Original Questions 196 6.3 Future Prognosis 201 7. APPENDIX 204 7.1 A Question of Terminology -- Evolution of the Terms Forest 205 Management Agreement and Area 7.2 Evolution of the Forest Management Agreements 212 7.2.1 Table: 1951 to 1955 212 7.2.2 Table: 1956 to 1988 216 7.3 Significant Events and Decisions in the Weldwood History 221 7.4 Chronology of Company Names and Owners 232 7.5 Crossley’s 1985 Vision of the Future 233 7.6 Perpetual Sustained Yield and the Daishowa Judgement 1992 240 8. ENDNOTES 245 LIST OF FIGURES Figure Caption Page 1 Foothills Model Forest in Alberta including Weldwood FMA -- 2 geographic and historical context of the Athabasca River. 2 Location of Dominion Forest Reserves, Proposed Forest Reserves 7 and National Parks in 1929. 3 Timber Berths at Brule Lake and along the McLeod River as of 8 July 1909. 4 Green and Yellow Zones as declared in 1948. 11 5 Edmonton Pulp and Paper Mills – Pulpwood Lease areas 16 proposed by R.O. Sweezey in 1949. 6 Beverley Pulp and Paper Mills-- Pulpwood Lease areas proposed 17 by R.O. Sweezey in 1952. 7 North Western Pulp and Power Ltd. -- Pulpwood Lease area 19 proposed by F. Ruben in 1951 -- the original. 8 North Western Pulp and Power Ltd. -- Pulpwood Lease area 23 proposed in Agreement of 1952 by F. Ruben and in 1954 by North Canadian Oils and St. Regis Paper Company for a mill to be located at Edson. 9 North Western Pulp and Power Ltd. -- Pulpwood Lease area re- 26 designed for the mill to be built at Hinton – in amended Agreement of 1955. 10 North Western Pulp and Power Ltd. -- refined Pulpwood Lease 30 area for the mill located at Hinton – in amended Agreement of 1961. 11 North Western Pulp and Power Ltd. -- FMA expanded to support 32 commitment to mill expansion -- in new Agreement of 1968. 12 Coal Leases in the Edson - Hinton area. 65 13 North Western Pulp and Power Ltd. -- FMA reduced to former 80 size in 1972 after expansion area cancelled. 14 St. Regis (Alberta) Ltd. -- area proposed for Berland Timber 97 Development Area 1979. 15 Weldwood of Canada, Hinton Division -- FMA as negotiated in 119 new Agreement in 1988 to support expansion of the pulpmill and new sawmill. 16 Foothills Model Forest -- established 1992 with Jasper National 133 Park added in 1995. 17 Weldwood forest management area after working circles 136 consolidated into two Forests named after pioneers Des Crossley and Reg Loomis. Page i ACKNOWLEDGEMENTS This history and policy analysis turned out to be a wonderfully collaborative undertaking. Instead of a simple review of literature, the questions that arose demanded explanations from the many parties involved. It was our great good fortune to have been able to talk to so many of the decision-makers and participants in negotiations; as well as being able to access archival documents and recorded interviews with several of the pioneers who had since passed away. This provided us with a wealth of information on which to draw. We extend our special thanks those who agreed so willingly to be interviewed about issues or who responded in detail to specific questions posed to them. Their cooperation, candour and good-faith responses are all very much appreciated. These included the following individuals, in alphabetical sequence, listed with their positions at the respective times in question: James Bowersock Vice-President and Resident Manager, NWPP James D. Clark Woodlands Manager, NWPP Kenneth Hall Vice-President and Resident Manager, Weldwood Stanton Hart Woodlands Manager, NWPP Dennis Hawksworth Vice-President Donald Laishley Manager Forest Resources, Weldwood Fred McDougall Deputy Minister, Forestry, Lands and Wildlife Raymond Ranger Director of Land Use, St. Regis Dr. Ian Reid Physician & Surgeon, MLA, Minister of Highways Robert Ruben President, Athabasca Valley Development Corp. Amelia Spanach President, Spanach Sawmills Robert Udell Manager, Forest Policy and Government Affairs Allan Warrack Professor, MLA, Minister of Lands and Forests John C. Wright Chief Forester, Weldwood In addition we pay tribute to those pioneers who left such a remarkable legacy of achievements, documents and interviews, notably: Desmond I Crossley Chief Forester Reginald D. Loomis Senior Superintendent of Forest Management As well, it was a privilege to have been able to work with Bob Bott, writer and editor, who has the ability to both ask the right questions and to come up with the proper turn of phrase -- and all in good humour. And a particular thank you to Bob Udell who had the vision to record the Company history in this fashion, the skills to obtain support for the project and the untiring interest to respond with positive suggestions and encouragement. Page ii PREFACE About this Series This history and policy analysis project had its genesis on May 4, 1995 when Bob Udell presented a paper at the Northern Alberta Forestry Show on the evolution and development of forest management plans and allowable annual cuts. At the conclusion of the speech, UBC professor Les Reid asked why no one had recorded the history of this remarkable enterprise. This led to the preparation of a series of volumes undertaken as part of a “Case study of Policies and Practices Leading to Adaptive Forest Management”. This Volume 3 reviews the evolution of the Forest Management Agreements within the context of the history of the province, region and Company. Themes regarding social concerns are identified as well as specific turning points, where significant changes in the Agreement occurred. that the review of this evolution provides insights about how environmental management evolved through innovative and adaptive management approaches The full list of Volumes in the Series, “Case Study of Policies and Practices Leading to Adaptive Forest Management” include: Volume 1: A Hard Road to Travel (Book)-- Examines the history and ecology of the largely unmanaged "state of nature" that existed before 1955.