Sustainable Forest Management Plan 2016

Tolko Industries Ltd, Lumber Division La Crete Sawmills Ltd, La Crete,

Defined Forest Area:

FMA 0200040 CTQF010001 (within FMA0900044) CTQP100001 (within FMA0900045) CTQF1400007 Four (4) Private Land Parcels

October 14, 2016

Tolko Industries Ltd and La Crete Sawmills Ltd are continually exploring ways to improve our environmental performance and welcomes input from members of the public.

If you would like to provide comments on this SFM Plan or its implementation, Please feel free to contact:

Tim Gauthier, RPF Woodlands Manager Forestry CSA/SFM Coordinator Tolko Industries Ltd. High Level Lumber Division 11401 92nd Street High Level, AB T0H 1Z0

Phone: (780) 926 8900 (office) (780) 926-4919 (fax)

Email: [email protected] Website: www.highlevelwoodlands.com

Prepared By:

Hilary Wait, RPF Forestry Superintendent

Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

Table of Contents

INTRODUCTION...... 2 1.0 THE DEFINED FOREST AREA ...... 3

1.1 GEOGRAPHICAL BOUNDARIES...... 3 1.2 LANDSCAPE DESCRIPTION ...... 4 1.3 NATURAL AREAS WITHIN AND ADJACENT TO THE DFA ...... 6 1.4 LANDBASE SUMMARY ...... 7 1.5 COMMUNITY PROFILE ...... 8 1.6 RIGHTS AND RESPONSIBILITIES ...... 8 1.7 SHARED RESPONSIBILITIES ...... 9 2.0 THE CSA SFM PLANNING PROCESS ...... 11

2.1 THE ENVIRONMENTAL MANAGEMENT SYSTEM ...... 11 2.2 CSA SFM STANDARD AND THE SFM PROCESS ...... 12 2.3 PUBLIC INVOLVEMENT PROCESS ...... 14 2.4 IMPLEMENTATION OF THE SFM PLAN ...... 15 2.5 MONITORING AND REPORTING ...... 16 2.6 COMMUNICATION ...... 16 2.7 CORRECTIVE ACTION ...... 17 2.8 MANAGEMENT REVIEW ...... 17 3.0 VALUES AND OBJECTIVES ...... 18 4.0 INDICATORS AND TARGETS ...... 22 REFERENCES ...... 55 GLOSSARY OF TERMS ...... 56 APPENDIX A: SUMMARY OF INDICATORS ...... 62 APPENDIX B: LINKAGE – SFM INDICATORS AND PROVINCIAL PLANNING REQUIREMENTS ...... 65

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

INTRODUCTION

In May 2003, Tolko Industries Ltd. (High Level Lumber Division-HLLD) developed and implemented a Sustainable Forest Management (SFM) Plan as part of certifying its forest management practices under the CAN/CSA Z809-02 Sustainable Forest Management standard of the Canadian Standards Association (CSA).

This document is an update of that CSA SFM Plan to meet the requirements in the newest (2008) revision of the CSA standard, CAN/CSA Z809-08. In addition the forest management practices of La Crete Sawmills Ltd (LCSM), who is a joint partner with HLLD on FMA 0200040, will be following this SFM Plan. (Where appropriate in this plan, Tolko and LCSM will be referred to as “the companies”.) The companies have a business agreement between them whereby all forest management services, except LCSM harvest operations, are managed by Tolko including Environment Management System and Sustainable Forest Management programs.

The certification of good forest management practices is a concept that emerged in the late 1980’s following environmental movements around the world to promote sustainable forest management (SFM). There are three forest certification programs used in Canada. The companies have chosen to follow the program developed by the Canadian Standards Association (CSA).

The CSA standard for sustainable forest management (CAN/CSA-Z809) was published in 1996 and revised in 2002, 2008, and reaffirmed in 2013. A Technical Committee developed and maintains the standard in an inclusive, consensus-based process. Interests represented on the Committee are balanced, and include timber producers, other forest users, scientists, academics, environmental groups, consumers, unions, and Aboriginal people and government regulators.

The CSA SFM standard follows the Canadian Council of Forest Minister’s framework for sustainable forest management, which in turn, is based on international agreement on the many environmental, economic and social factors that need to be taken into account when forests are harvested. It also incorporates the concepts of continual improvement and adaptive management. These concepts are reflected in the Companies Environmental Policy’s1 and Detailed Forest Management Plan (DFMP), and they align with the companies’ commitment to balance all aspects of sustainable forest management.

This SFM Plan for the Defined Forest Area (DFA) identified by the companies is required under the CSA standard. It outlines values, objectives, indicators, and targets of forest management identified through the public involvement process, and how the status of the indicators and targets will be reported on. This SFM Plan, in conjunction with the Detailed Forest Management Plan (DFMP)2, will assist in guiding the future management of the DFA.

1 To view the Environmental Policy for Tolko Industries Ltd. (High Level Lumber Division) and La Crete Sawmills Ltd, please visit www.highlevelwoodlands.com 2 DFMP applies to FMA0200040 that is within the Defined Forest Area.

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1.0 THE DEFINED FOREST AREA

1.1 Geographical Boundaries

The Defined Forest Area (DFA) to which this Plan applies is the yellow area shown in Figure 1. It encompasses a gross area of approximately 3.5 million hectares and includes: - The Forest Management Agreement (FMA) area (FMA0200040) managed by Tolko Industries Ltd. High Level Lumber Division (HLLD), Norbord and La Crete Sawmills Ltd, - Operations under quota CTQF010001 within Forest Management Unit (FMU) P21 (FMA0900044, Daishowa-Marubeni International Ltd), - Operations under quota CTQP100001 within Forest Management Unit (FMU) P19 (FMA0900045, Daishowa-Marubeni International Ltd), - Operations under quota CTQF140007 within Forest Management Unit (FMU) F14 (Government of Alberta) - Four parcels of land purchased by Tolko Industries Ltd. in 2000 and 2002.

Figure 1. The Defined Forest Area (DFA)

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

The DFA area is bounded: - To the west, by the British Columbia-Alberta border. - To the north, by the Northwest Territories-Alberta border and the southern boundaries of Forest Management Units F10 and F20. - To the east, by Forest Management Unit F23, currently under tenure by the Little Red River Cree Nation / Askee Development Corporation, and - To the south, by Forest Management Units P8, P20, F11, FO1, P5 and S15.

1.2 Landscape Description

The DFA falls predominately within the Boreal Forest Natural Region (See Figure 2.)3. With the exception of the Peace River Lowlands Sub-Region, all the Sub-Regions within the Boreal Forest Region are included within the DFA. These are the Boreal Subarctic, Central Mixedwood, Dry Mixedwood, Lower Boreal Highlands, Northern Mixedwood (formerly called "Wetland Mixedwood"), and Upper Boreal Highlands Sub-Regions.

The vegetation of the Central and Dry Mixedwood sub-regions is quite similar with many community types in common. However they differ in the proportion of various vegetation types and other landscape features. Aspen, white spruce, and sometimes balsam fir in areas not frequently exposed to fire are the characteristic forest species occurring in both pure and mixed stands. Both balsam poplar and paper birch may occur in these forests as well.

The vegetation of the Boreal Highlands (Upper and Lower) Sub-Regions is similar to that of the Central Mixedwood Sub-Region where mixedwood forests of aspen and white spruce are characteristic. However with the somewhat moister conditions, greater amounts of balsam poplar and white spruce are expected. Black spruce may also occur more frequently on upland sites and coniferous forests occupy a larger proportion of the landscape. Dry, sandy upland sites are typically occupied by jack pine.

Black spruce stands are the dominant forest type in the Sub-Arctic Sub-Region, although lodgepole pine, jack pine, white spruce, and aspen occur on well-drained sites. The majority of this sub-region is dominated by poorly drained black spruce bogs where permafrost is found within 50 cm of the soil surface.

The Northern Mixedwood Sub-Region appears quite similar to that of the Central Mixedwood Sub-Region, although little is known about these areas. Generally, the landscape here contains a greater proportion of wetlands (both peatlands and willow-sedge complexes on mineral soil) and more upland black spruce forest than the Central Mixedwood Sub-Region. This perhaps reflects the cooler climate and higher moisture. Black spruce, tamarack, and mature white spruce-balsam poplar forests, similar to those along the Lower Peace Rivers, occur on fluvial terraces along the lower Hay River.

3 The Natural Sub-Region information presented was taken from the "2005 Natural Regions and Sub-Regions of Alberta" (Updated June 10, 2005)

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Figure 2. Natural Sub-Regions within the Defined Forest area (DFA).

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1.3 Natural Areas Within and Adjacent to the DFA

Hay-Zama Lakes Wildland Park The Hay-Zama Wildland Park is included within the F14 FMU. The park encompasses 48,600 hectares and contains a series of eutrophic lakes, floodplains, and river deltas. It has been identified as a RAMSAR site (a wetland of international importance) because of its importance for migrating waterfowl.

Caribou Mountains Wildland Park The Caribou Mountains Wildland Park encompasses 6,385 km2 along the northeastern boundary of the DFA and is included in the F10 FMU.

Much of this area captures the core of the Caribou Mountain ecosystem so that many of the ecological features such as wetlands, peat bogs, and permafrost areas, and the species that require them, will be sustained over time.

Watt Mountain Natural Area The Watt Mountain Natural Area (WMNA) is a 953 ha Natural Area located approximately 30 kilometers northwest of the community of High Level. The area was identified as a potential natural area in 1983. In 1989 the Alberta Forest Service identified the site as a “Natural Area” and placed a Protective Notation (PNT) on it to ensure no industrial development in the future. (Source: Watt Mountain Natural Area: Proposal, unpublished).

The WMNA has high recreational and ecological value. It contains a distinctive ecosystem with rare species assemblages for the region. The area is also known to have Mountain Ash, a rare tree species in the area.

Ponton River Natural Area The Ponton River Natural Area is 1,569.74 ha in size and is located east of the community of High Level.

This Natural Area encompasses the Ponton River corridor, supports several fish species and provides excellent wildlife habitat. It is also rich in fossils and is frequented by outdoor recreational groups for hunting, fishing, canoeing, and hiking.

Caribou River Natural Area The Caribou River Natural Area is 687.97 ha in size and is also located east of the community of High Level.

Similar to the Ponton Natural Area, it supports several fish species and provides excellent wildlife habitat that includes a migration corridor between the Peace River and Caribou Mountains. The area also provides a diversity of community types, including remnant grassland of Peace River Parkland, a rare feature for the region. Outdoor recreational groups also use the area frequently for hunting, fishing, canoeing, and hiking.

Hot Pot The Hot Pot site is a unique 65 ha site located approximately 80 km north of High Level. A burning flame located within the site is believed to be methane or “swamp gas” potentially caused by rotting subterranean organic matter. It burns continuously throughout the year.

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Burning Sulfur The Burning Sulfur site is approximately 130 ha in size and is located along the northern bank of the Muddy River valley in the southeastern portion of the DFA. The site is primarily non-vegetated and includes several sulfur seeps which burn continuously through the seasons.

Other Sites of Ecological Significance There are other areas of ecological significance in the region, in addition to the Natural Areas located within or adjacent to the boundaries of the DFA. These include Harper Creek, Child Lake Meadows, Boyer Natural Area, and Wood Buffalo National Park.

1.4 Landbase Summary

In the Alberta Forest Management Planning Standard (2006) when defining a landbase there is a requirement to distinguish between contributing and non-contributing landbase, “The net landbase (also referred to as active or contributing) is the landbase available for timber harvest and comprises the net productive coniferous and net productive deciduous land bases. The remaining lands are those that are not part of the net productive coniferous or deciduous land bases (passive or non-contributing)”. Features that are to be identified as non-contributing are areas such as, non-forested land, existing parks, wilderness areas, conservation areas and other protected areas, Crown land committed to other land uses and under other dispositions, inoperable areas due to slope and elevation constraints, riparian features and associated buffers, and subjective deletions considered by the forest company. The net landbase determines the location where forest harvest activities could occur and the annual allowable cuts. Table 1 shows an example of a landbase summary for the FMA 0200040 portion of the DFA. The summaries for FMU’s P19 and P21 were completed by DMI and are included in their most recent DFMP, and the summary for F14 is not available as that is the responsibility of Alberta.

Table 1. Landbase Summary of FMA 0200040 within the Defined Forest Area (DFA)

Landbase Category FMA 0200040 Area (ha) Gross Area 3,561,606 ♦ Water 43,665 ♦ Landuse Dispositions (DRS, PNT, ISP, REC, Natural Area 10,474 Watercourse Buffers ♦ Trumpeter Swan Buffers (200 m) 1,442 ♦ Lake Buffers (100 m) 35,743 ♦ River Buffers (60 m) 18,662 ♦ Stream Buffers (30 m) 65,792 Non-Forested ♦ Anthropogenic 27,854 ♦ Natural 632,802 Non-merchantable ♦ TPR = “U” 649,550 ♦ Black Spruce with TPR = “F” 153,819 ♦ Larch Leading 36,670 ♦ Black Spruce Leading with ≥20% Larch in Overstorey 22,445 Potentially Productive ♦ Non-Salvageable Burns 26,582 ♦ Post-1990 pre-fire cutblock 640 ♦ Pre-91 Survey Naturally Non-Forested 205 ♦ No AVI 2,574 Net Productive Area 1,832,686

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1.5 Community Profile

The DFA lies within or adjacent to the Municipal District of Mackenzie and includes the communities of Rainbow Lake, High Level, Zama City, Rocky Lane, Fort Vermilion, and La Crete.

There are also a number of First Nation communities within and adjacent to the DFA. The North Peace Tribal Council (NPTC) includes the Dene Tha First Nation (Meander River, Assumption, and Bushe River), Little Red River Cree Nation (John D’Or Prairie, Fox Lake, and Garden River), Beaver First Nation (Boyer River and Child Lake), Tall Cree First Nation (North/South Tall Cree), and the Lubicon Lake First Nation. The companies also consult with the Peerless Trout First Nation. All of the aforementioned Nations are included in the Treaty 8 First Nations of Alberta, and the DFA is fully within the Treat 8 boundaries as signed between signatory Nations and the Government of Canada in 1899. “The elements of Treaty 8 included provisions to maintain livelihood for the native populations in this 840,000 square kilometres (84,000,000 ha) region, such as entitlements to land, ongoing financial support, annual shipments of hunting supplies, and hunting rights on ceded lands, unless those ceded lands were used for forestry, mining, settlement or other purposes” (Wikipedia, Treaty 8).

The Paddle Prairie Métis Settlement also lies adjacent to the DFA.

1.6 Rights and Responsibilities

Tenure Holders The Forest Management Agreement (FMA) gives the companies the right to establish, grow, harvest, and remove all coniferous timber on a perpetual sustained yield basis (Sec. 7(1)(a)(i), FMA0200040). The Alberta Government must approve all forest management plans and activities. Timber quotas (CTQ), like what Tolko holds in FMU’s F14, P21 and P19, are a renewable forest tenure that last for 20 years and allows the holder an AAC from a specific area.

The FMA document (Sec. 7(1)(a)(i) identifies the allocation to Tolko shall be 87% of the coniferous timber volume and the allocation to La Crete Sawmills shall be 13% of the coniferous timber volume.

In the FMA document the Minister of Forestry and Agriculture reserves all land rights and requires that the company integrate and coordinate the management of the FMA area with other licensees and permittees operating in the area (Sec. 13(2), FMA0200040).

There are four additional volume-based Deciduous Timber Allocation (DTA) holders within the Tolko, Norboard and LCSM FMA portion of the DFA. They are:

- Mustus Energy (DTAF260001, 118,288 m3/year), (DTAF260002, 118,288m3/year) - Netaskinan Development Corporation Ltd (DTAF260004, 50,000m3/yr), (DTAF260003, 30,000m3/yr) - N’Deh Limited Partnership (DTAF250001, 2,230m3/yr) - Daishowa-Marubeni International Ltd (DTAF260006, 179,839m3/yr)

These DTA holders are not required to comply with applicable EMS or CSA requirements that the companies have in place.

Industrial Users Although the companies have the right to establish, grow, harvest, and remove coniferous timber (Sec. 7(1)(a)(i), FMA0200040), the province of Alberta may withdraw land(s) from the Forest Management Area portion of the DFA for a variety of purposes as outlined in Sec. 6(1) of the FMA agreement.

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A significant amount of land is withdrawn annually for commercial and industrial purposes, most notably, the oil and gas sector. The oil and gas industry has been very active on the FMA portion of the DFA for at least a decade. Traditionally, activity has been focused near the towns of Rainbow Lake and Zama City. However, an increasing amount of concentrated activity has been occurring in the northern portion of the FMA area, mainly in the Steen River area and stretching north to Indian Cabins.

Minimal oil and gas activity has taken place around the communities of Fort Vermilion and La Crete in the eastern sections of the DFA.

Trappers Trapping continues to be a source of revenue for many Albertans. There are approximately 164 Registered Fur Management Areas (RFMA’s) that lie within or overlap portions of the DFA.

A RFMA is a parcel of public land allocated to a Registered Fur Management License holder by the Alberta Government.

Domestic Grazing Licenses Similar to the Province of Alberta’s right to withdrawal land(s) from the FMA portion of the DFA for commercial and/or industrial purposes, Section 8 (1)(d) of FMA0200040 indicates that the crown has the right to authorize domestic grazing and allocate grazing licenses on or adjacent to the FMA area.

Within the FMA portion of the DFA, there is only a single grazing licensee located east of the community of High Level.

1.7 Shared Responsibilities

Tolko Woodlands Staff Tolko is responsible for the companies’ forest management planning within the DFA. This includes: - On the FMA: o Conducting all planning and silvicultural operations in accordance with applicable laws and regulations, business agreements, the approved Preferred Forest Management Strategy (PFMS) outlined in the Detailed Forest Management Plan (DFMP). o Developing and implementing an approved General Development Plan (GDP), Annual Operating Plan(s) (AOP), and individual Forest Harvest Plans. These plans outline wood supply forecasts, harvest locations, access development, and specific strategies to address fish, wildlife, watershed, and forest health concerns. - On the quotas: o Developing and implementing an approved General Development Plan (GDP), Annual Operating Plan(s) (AOP), and individual Forest Harvest Plans. These plans outline wood supply forecasts, harvest locations, access development, and specific strategies to address fish, wildlife, watershed, and forest health concerns. - Across the DFA: o Following the strategies and targets included in this SFM Plan. o Developing and implementing monitoring programs and reporting progress towards achieving sustainability for the DFA. Monitoring programs and reports are developed according to Alberta Government requirements and any additional operational procedures required in the Environmental Management System (EMS) and/or Sustainable Forest Management (SFM) initiatives.

Tolko is responsible for all phases of its own harvesting operations that includes, and is not limited to, roads, felling, skidding, processing, load & haul, any reclamation activities and pile burning.

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

La Crete Sawmills Woodlands Staff La Crete Sawmills Woodlands Staff responsibility on the DFA is to manage its own harvesting operations that includes, and is not limited to, roads, felling, skidding, delimbing/processing, load & haul, any reclamation activities, and pile burning. The responsibilities of LCSM staff may only be expanded through an amendment to the Tenure Management Services Agreement.

Company Contractors The companies’ contractors and suppliers whose work may create a significant environmental impact must be aware and understand the requirements of the EMS that apply to their activities. This includes operational controls, applicable laws and regulations, Alberta Government approval conditions, Standard Operating Procedures (SOP’s), and other requirements as outlined in the contract(s).

Contractors must also comply with any additional condition(s) or requirements outlined in this SFM Plan.

Tenure Holders and Embedded Operators Each of the other tenure holders and embedded operators identified above in Section 1.6 under “Tenure Holders” must: - Conduct their operations on the DFA in a manner that is consistent with all applicable laws and regulations and the conditions outlined in their respective DTA’s. - Comply with the objectives and strategies in the Detailed Forest Management Plan (DFMP)

The Alberta Government Although monitoring and reporting of the activities and the performance of the embedded operators is the responsibility of the Alberta Government, most of the performance indicators and targets reported on by the companies in the DFMP Stewardship Report will include the activities of the other operators. The annual SFM Performance Report will only be focused on the activities of Tolko Industries Ltd and La Crete Sawmills Ltd.

Government of Alberta - Minister of Forestry and Agriculture The role of the Alberta Government in the DFA is that which is referenced within the FMA 0200040 document, the quota certificates, Acts & Regulations, Policies, Guidelines and Standards applicable to the DFA. In particular in the FMA 0200040 document, Section 8(1), the Minister of Forestry and Agriculture recognizes “…the Companies use of the forest management area for establishing, growing, harvesting and removing timber is to be the primary use thereof and that it is to be protected therein in keeping with the principles of sustainable forest management” (secondary uses are recreation, geophysical exploration, enhancing forest resources, trapping and grazing).

Representatives from Alberta Government also participate in the public involvement process as suggested by the CSA SFM standard, as outlined in the Public Advisory Group (PAG) Terms of Reference (ToR) document (See Appendix A). Alberta Government representatives attend PAG meetings as guests, and contribute pertinent information such as legal requirements and SFM related topics.

High Level Forests Public Advisory Group (PAG) The High Level Forests Public Advisory Group (PAG), formed as part of the companies Public Involvement Plan, is open to all members of the public including Aboriginal people. The companies recognize the Aboriginal and treaty rights of local First Nations, and these rights will not be prejudiced by taking part in the company’s public involvement program or being involved in the Public Advisory Group. The responsibility of the PAG is stated within the goals, as outlined in the group’s Terms of Reference (see Appendix A) are:

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1. To obtain constructive community input, advice and recommendations to ensure all local interests are effectively involved in forest management planning; 2. To work with the Companies to develop and maintain a CSA SFM Plan in accordance with CSA guidelines, as follows: - Identify and select values, objectives, indicators and targets, based on SFM elements and any other issues of relevance to the Defined Forest Area (DFA). These must be consistent with relevant government legislation, regulations, and policies; - Develop one or more possible strategies; - Assess and select one or more strategies; - Review the SFM plan; - Design monitoring programs, evaluate results, and recommend improvements; and - Discuss and resolve any issues relevant to SFM in the DFA.

2.0 THE CSA SFM PLANNING PROCESS

2.1 The Environmental Management System

Tolko maintains4 an ISO14001:2004 conformant Environmental Management System (EMS) to improve environmental performance on the DFA. The system for continual improvement of environmental performance involves following a continuum of establishing a policy, planning, implementation and operation, checking, taking corrective action, and holding management reviews.

Following the implementation of the company’s Environmental Policy through a variety of planning processes, Tolko identified and prioritized the environmental aspects of its activities, then established objectives and targets to address them. Programs and operational controls were subsequently developed to meet those objectives and targets, consistent with the Environmental Policy, Forest Management Principles on the DFA, and legal obligations.

The EMS Manual provides direction on the overall functioning of the EMS and outlines specific processes and procedures for education and training, internal and external communication and reporting, document control, and emergency preparedness and response. It also identifies the need for an EMS Champion who is responsible for managing and administering the EMS in accordance with the ISO14001:2004 standard.

Other roles and responsibilities are also outlined in the EMS Manual and other related documents. In addition to specific roles for the implementation and operation of the EMS, all employees, contractors, and suppliers must be aware of:

- The importance of conforming to the Environmental Policy and the requirements of the EMS, - Significant environmental aspects and impacts associated with their work activities and the environmental benefits of improved performance, - Roles and responsibilities in conforming with the Environmental Policy with the EMS procedures and, - The potential consequences of departing from EMS procedures.

Checking and Corrective Action is also a significant component of the EMS process. Through monitoring Tolko evaluates the effectiveness of operational controls and identifies potential improvements to the EMS. Formal and informal audits are used to assess compliance with the EMS criteria and legal obligations.

4 Tolko Industries Ltd. (High Level Lumber Division) implemented its Environmental Management System (EMS) on January 1 2003. LCSM utilizes the EMS Tolko has in place.

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The Management Review is a general review of the EMS, other pertinent forestry commitments, and progress against established targets (goals). It is used to identify any changes needed to ensure continual improvement and enhanced environmental performance.

2.2 CSA SFM Standard and the SFM Process

The CSA Z809-08 Sustainable Forest Management (SFM) standard sets the level of performance to be met using a prescribed management system that conforms to the ISO 14001 Environmental Management Standard. The Environmental Management System discussed above is therefore an essential part of meeting the CSA SFM requirements.

Other system requirements of the CSA SFM standard have been met by identifying the Defined Forest Area (DFA), the rights and shared responsibilities associated with its management, supporting a public participation process, and developing this Sustainable Forest Management (SFM) Plan.

Similar to the coordination of Environmental Management System (EMS) activities, the companies have identified an SFM Coordinator to implement the Public Involvement Plan, develop the SFM Plan, and manage, implement, and report on the status of the SFM requirements.

Sustainable Forest Management Criteria and Elements The CSA SFM standard ensures that the six Criteria for Sustainable Forest Management identified by the Canadian Council of Forest Ministers (CCFM) are addressed. Since these Criteria represent very broad aspects of SFM, each one is further broken down into Elements. The Criteria and their associated Elements are:

Criterion 1 - Biological Diversity Element 1.1 Ecosystem Diversity Element 1.2 Species Diversity Element 1.3 Genetic Diversity Element 1.4 Protected Areas and Sites of Special Biological and Cultural Significance

Criterion 2 - Forest Ecosystem Condition and Productivity Element 2.1 Forest Ecosystem Resilience Element 2.2 Forest Ecosystem Productivity

Criterion 3 - Soil and Water Element 3.1 Soil Quality and Quantity Element 3.2 Water Quality and Quantity

Criterion 4 - Role in Global Ecological Cycles Element 4.1 Carbon Uptake and Storage Element 4.2 Forest Land Conversion

Criterion 5 – Economic and Social Benefits Element 5.1 Timber and Non-Timber Benefits Element 5.2 Communities and Sustainability

Criterion 6 - Society’s Responsibility Element 6.1 Aboriginal and Treaty Rights Element 6.2 Respect for Aboriginal Forest Values, Knowledge, and Uses

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Element 6.3 Forest Community Well-being and Resilience Element 6.4 Fair and Effective Decision-making Element 6.5 Information for Decision-making

Core (mandatory) and locally identified Indicators are then established under each Element, and Targets (local-level performance requirements) set for each Indicator. This is done with the involvement of the public, through the companies’ Public Involvement Process.

Links to Other Planning Processes

Provincial Forest Management Planning The forest management planning process mandated by the Province of Alberta for forest tenure holders is based on the requirements of the 2002 version of the CSA Z809 SFM standard, and therefore aligned with the Canadian Council of Forest Ministers (CCFM) Criteria and Indicators for sustainable forest management. The key documents resulting from the provincial planning process are landscape level Detailed Forest Management Plans (DFMPs) and Operational Plans (General Development Plans, Forest Harvest Plans, and Annual Operating Plans). This SFM Plan complies with all provincial and federal legislation, and partially as a result of the shared alignment with the CCFM criteria and indicators, is consistent with the objectives and strategies outlined in the Detailed Forest Management Plans for FMA0200040, and FMA0900044 & FMA0900045 (DMI). The timber supply analysis for FMU F14 is managed by Alberta, operational plans are completed by quota holders, and the Upper Hay Regional Operating Ground Rules are used.

The table shown in Appendix D shows the linkage between the CSA SFM Indicators and regulatory obligations under the DFMP, Operational Plans, Silviculture Plans, Caribou Protection & Ungulate Winter Range Plan, Operational Controls, and the Operating Ground Rules (Upper Hay Region, and FMA Operating Ground Rules – DMI).

Public Involvement During the development of the 2003 Detailed Forest Management Plan (DFMP) for FMA0200040, a comprehensive Public Involvement Plan (PIP) was developed and implemented. The companies maintain that public involvement process today for both the provincial forest management processes and the CSA SFM Plan process. The Values, Indicators, Objectives and Targets in this SFM Plan were developed with public input.

The Companies’ Corporate Direction and Commitments

The CSA Criteria and Elements also align well with the companies’ philosophy of developing resource management plans that are ecologically suitable, economically feasible, and socially acceptable. The fundamental system elements in the CSA SFM standard also fit with the companies’ ISO 14001 certified Environmental Management System and commitment to adaptive management and continual improvement.

CSA-SFM Performance Requirements DFA-specific Values, Objectives, Indicators and Targets (VOITs) for each CSA Element in this SFM Plan have been identified using the public involvement process. These terms are defined in the CSA SFM standard as follows:

Value: a DFA characteristic, component, or quality considered by an interested party to be important in relation to a CSA SFM element or other locally identified element. Objective: a broad statement describing a desired future state or condition of a value. Indicator: a variable that measures or describes the state or condition of a value.

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Target: a specific statement describing a desired future state or condition of an indicator. Note: Targets should be clearly defined, time-limited and quantified, if possible.

The standard prescribes a set of “core” Indicators, and other local Indicators were identified through public input.

Targets for each indicator have been established and where applicable, acceptable variances have been applied. The acceptable variance was set taking into account regulations, agreements, commitments made in the DFMP, and status of the implementation of the indicator. Forecasts predicting the results under each indicator and target were also made.

2.3 Public Involvement Process

The companies provide a variety of public involvement initiatives to meet the needs of those individuals interested in participating in the process of developing the CSA SFM plan.

Invitation to Participate

Following a period of inactivity in meetings of the public involvement process the companies sent a letter to 21 stakeholders on November 29, 2010 inviting them to be involved in the Public Advisory Process. In March of 2012, 51 letters were sent out inviting a broad range of industrial and non-industrial stakeholders and Aboriginal groups to participate in revising this SFM Plan and the Public Advisory Group. The letters explained the CSA certification process and to the need to identify local-level Values, Objectives, Indicators, and Targets for the future management of the DFA. Stakeholders were asked to indicate if a) choose to participate, b) choose not to participate, or c) would like to participate but currently unable to, then return the letter. Stakeholders were advised that if a response was not received then it is assumed the stakeholder chooses not to participate. Some responses were received including the Little Red River Cree Nation indicating an interest to participate in the PAG process.

Public Advisory Group Meetings

The High Level Public Advisory Group (PAG) originally established for the development of the 2003 CSA SFM Plan, also played a key role in the development of this SFM Plan by: - Covering all of the mandatory discussion items. The discussion within the PAG started with reviewing all of the items covered during meetings from 2003 to April 2012 to determine if mandatory items were already discussed in some manner. A table has been prepared noting the date that topics were discussed (as documented in meeting minutes), and any outcome affecting the DFMP or SFMP. - Discussing and ratifying changes to the local-level forest Values, Objectives, Indicators, and Targets as a result of transitioning to the newest, 2008 version of the CSA SFM standard. - Updating the Terms of Reference for the group. (See Appendix A)

The PAG Terms of Reference aligns with the public advisory requirements in Clause 5 of the CSA SFM standard. It contains components that the group has confirmed are of interest and has agreed to. These components are:

- Goals; - Operating guidelines (including authority for decisions); - Timelines; - Roles, responsibilities, and obligations of participants and their organizations (including the participation of experts, other interests, and government);

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- Resolving items of discussion; - Consensus building process (decision making methods); - Conflict of interest; - Information and communication (internal and external); - Resources; - Mechanisms to adjust the process as needed; and - Measuring participants’ satisfaction with the process.

When there are issues or concerns brought forward by PAG members that cannot be resolved without conflicting with the goals, objectives and strategies outlined in the DFMP, those issues are recorded for consideration during the development of the next DFMP.

Open Houses An Open House was held in High Level September 17, 2012. Advertisements for the Open Houses were posted in the Echo and Pioneer (local papers) on September 5th and 12th.

The purpose of the Open House was to get feedback on the proposed Indicators and Targets under each Criterion in this SFM Plan, and to provide the public with information related to CSA certification. People who attended could provide their contact information as well as indicate their desired level of participation in the process.

The companies also had an information booth and display at the Get to Know You Night in La Crete on September 14 and at the Community Night in Rainbow Lake on September 26. Again, both of these events allowed the companies to showcase proposed Indicators and Targets under each Criterion in the SFM Plan. These events were well attended and the companies’ booth was busy with interest.

Additional Consultations with Aboriginal Communities Local Aboriginal communities that could potentially be affected by CSA SFM Plan were invited to participate in the PAG, and the opportunity for community meetings was also available on request. As a follow up to an expressed interest from the Beaver First Nation, a meeting was held with Randy Hellwig (Consultation Manager) on September 18th to discuss Indicators and Targets related to Criterion 5 and 6 on Aboriginal interests, communities and sustainability. All other Aboriginal nations were invited to participate in the process by way of the letters to stakeholders in March 2012. As a follow-up to all Nations, the revised SFM Plan and Public Involvement Plan will be sent to them.

Internal Communications The companies’ Woodlands and Administration staff were also given the opportunity to provide input into the SFM Plan and the identification of local-level Values, Objectives, Indicators, and Targets.

External Communications Tolko has established a website (www.highlevelwoodlands.com) dedicated to transparency and information distribution. Upcoming events, meeting agendas and minutes, forest management plans, and the companies’ CSA SFM Plan and annual progress reports are posted on the site. Input about any aspect of the SFM Plan and planning process is encouraged. Contact information for the CSA Coordinator is available on the website and on the inside cover of this document.

2.4 Implementation of the SFM Plan

All staff and contractors are made aware of the SFM requirements and how those requirements will be implemented on the DFA. This includes being aware of the processes, procedures, and operational

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controls outlined in the EMS followed by the companies, the SFM Policy, the requirements and benefits of SFM, and individual roles and responsibilities in achieving SFM for the DFA.

Training requirements are identified to ensure staff and contractors have the necessary skills to achieve SFM.

2.5 Monitoring and Reporting

Consistent with Tolko’s ISO14001 compliant Environmental Management System (EMS), the Companies will monitor and evaluate the effectiveness of the SFM requirements against targets and give all staff and contractors an opportunity to provide input into their review.

Specific monitoring and reporting mechanisms are identified for each indicator in this SFM Plan and will include one or more of the following:

Annual SFM Performance Report An SFM Performance Report on the status of the Indicators, and Targets in this SFM Plan will be written annually. This report will be reviewed with the PAG and made available to the public on the website www.highlevelwoodlands.com .

DFMP Stewardship Report A Stewardship Report on implementing the DFMP for the FMA portion of the DFA will also be written every five years, as outlined in the Alberta Forest Management Planning Standard (2006) document. This report will account for all activities carried out under the DFMP and report on the goals, objectives, strategies, and targets outlined in it. To date there has not been a DFMP Stewardship Report. Following the curtailment of Footner Forest Products Ltd (now Norbord) in 2008, Alberta Government agreed to suspend requirement of a Stewardship Report until such time as Ainsworth was operating.

Audits During planning, harvesting, and/or silvicultural operations, the companies complete regular audits on operational controls, processes, procedures, and practices consistent with the companies’ ISO14001:2004 compliant Environmental Management System (EMS).

The EMS also outlines procedures for internal audits which are to be completed annually to ensure that operational planning and practices conform to the SFM requirements outlined in the CSA Z809-08 certification standard. The results of these internal audits will be made available to the companies’ management and reviewed according to procedures outlined in the EMS.

Independent third-party audits on the companies’ performance against the CSA SFM requirements are also carried out in order to become certified as meeting the CSA SFM standard. These certification and surveillance audits are carried out by qualified and accredited certifiers. A detailed internal report and public summary are provided. Tolko received certification to the CSA Z809:02 standards in November 2004.

2.6 Communication

Internal Communication All Tolko Woodlands staff has access to Corporate and/or Divisional Policies and Procedures through the Company’s Intranet, Environmental Management System (EMS), and through the EMS Training Website & Portal (www.highlevelems.com ). This includes access to the Environmental Policy, Forest Management

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Principles, and other policies, procedures, and emergency response plans. La Crete Sawmills employees have access to Tolko’s EMS and the training website.

Minutes from staff meetings and meetings with stakeholders and Aboriginals are available in the communication module of the EMS, and more recent communications are on the companies Consultation Tracker.

External Communication The Environmental Policy and Forest Management Principles are available publicly at various locations (www.tolko.com , www.highlevelwoodlands.com , & www.highlevelems.com). The distribution of other information pertinent to the EMS is outlined in a specific policy. The SFM Plan, annual SFM Performance Reports, and audit summaries are also publicly available on the www.highlevelwoodlands.com website.

All communications with external parties are documented through the Communications Module in the Company’s EMS, and more recent communications are on the companies Consultation Tracker. People directly related to the subject are notified following its documentation in the system. The EMS also includes a CSA-SFM Module which outlines the various public involvement initiatives and the input provided into the development of forest management planning and/or operations.

2.7 Corrective Action

The companies have developed EMS procedures for identifying potential improvements to the system and responding to non-conformances to the SFM performance measures.

If non-conformances are identified during the monitoring and evaluation of the SFM indicators and targets, or if improvements to processes, procedures, or policies are identified by staff, contractors, or suppliers, corrective action plan(s) (CAP’s) may be developed. These CAP’s will be developed by the appropriate staff member and communicated to all staff, contractors or suppliers according to the procedures outlined in the Companies’ EMS.

2.8 Management Review

An annual Management Review is part of the continual improvement loop in the EMS to ensure that progress towards achieving sustainable forest management (SFM) on the DFA continues. This review includes progress against SFM requirements and achieving the Targets that have been established. It also is used to identify potential changes to the SFM Plan in light of regulatory changes, research, knowledge, changing circumstances, changing public values, or the CSA-Z809 standard itself.

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3.0 Values and Objectives

This section summarizes the Values and Objectives for each of the CSA defined Elements, as established in conjunction with the PAG. The core and locally-developed Indicators that have been developed to meet these Values and Objectives are also shown here, then described in detail in the next section.

Criterion 1: Biological Diversity Conserve biological diversity by maintaining integrity, function, and diversity of living organisms and the complexes of which they are part. Element Description of Local Description of Indicators Values Objectives 1.1: Ecosystem Diversity - Healthy, functioning Incorporate natural 1.1.1 Ecosystem Area Conserve ecosystem diversity at ecosystems that processes into stand 1.1.2 Forest Type the stand and landscape levels by support natural and landscape 1.1.3 Forest Age maintaining the variety of processes. management of the 1.1.4 Within-stand Structural communities and ecosystems that DFA. Retention naturally occur in the DFA. 3.1.2 Downed Woody Debris Element 1.2: Species Diversity Wildlife habitat and Manage the DFA to 1.2.1 Habitat Protection Diversity - By ensuring that species diversity. maintain wildlife 1.2.2 Available Habitat habitats for the native species habitat and native 1.2.3 Regeneration of Native found in the DFA are maintained species diversity. Species through time, including habitats for known occurrences of species 1.1.4 Within-stand Structural at risk. Retention Element 1.3: Genetic Diversity - Genetic diversity of Maintain genetic 1.3.1 Orchard Stock (Local Conserve genetic diversity by native tree species diversity by ensuring Indicator) maintaining the variation of genes that cutblocks are 1.3.2 Seed Supplies & Seed Zones within species and ensuring that reforested with (Local Indicator) reforestation programs are free of genetically diverse genetically modified organisms native seedlings. 1.1.2 Forest Type 1.1.3 Forest Age (Seral Stage) 1.2.3 Regeneration of Native Species Element 1.4: Protected Areas and Areas of special Ensure that 1.4.1 Proportion of identified sites Sites of Special Biological and biological and cultural identified areas of with implemented management Cultural Significance - Respect significance. biological and strategies (FMA or Site Level) protected areas identified through cultural significance 1.4.2 Protection of Sacred & government processes. Co-operate (including unique Cultural Sites in broader landscape management features) are related to protected areas and protected. sites of special biological and cultural significance.

Identify sites of special geological, biological, or cultural significance within the DFA, and implement management strategies appropriate to their long-term maintenance

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Criterion 2: Forest Ecosystem Condition and Productivity Conserve forest ecosystem condition and productivity by maintaining the health, vitality, and rates of biological production. Element Description of Local Description of Objectives Indicators Values Element 2.1: Forest Resilient forest Contribute to resilient 2.1.1 Reforestation Success Ecosystem Resilience - ecosystems ecosystems through forest Conserve ecosystem management practices such as 4.1.2 Volume from resilience by maintaining successfully reforesting areas Budworm Areas both ecosystem processes and minimizing losses due to (Local Indicator) and ecosystem conditions. natural disturbances. Element 2.2: Forest The productivity of forest Maintain or increase forest 2.2.1 Additions/Deletions Ecosystem Productivity - ecosystems ecosystem productivity. 2.2.2 Sustainable Harvest Conserve forest ecosystem productivity and productive 2.1.1 Reforestation Success capacity by maintaining 4.1.2 Volume from ecosystem conditions that Budworm Areas are capable of supporting naturally occurring species. Reforest promptly and use tree species ecologically suited to the site.

Criterion 3: Soil and Water Conserve soil and water resources by maintaining their quantity and quality in forest ecosystems. Element Description of Local Description of Objectives Indicators Values Element 3.1: Soil Quality Soil quality and quantity Maintain soil productivity by 3.1.1 Soil Disturbance and Quantity - Conserve minimizing the effects of forest 3.1.2 Downed Woody Debris soil resources by operations on soils. 3.1.3 Soil Productivity (Local maintaining soil quality and Indicator) quantity. 1.1.4 Within-stand Structural Retention Element 3.2: Water Water quality and Maintain water quality and 3.2.1 Watershed-Stand Quality and Quantity - quantity. quantity by minimizing the Disturbance Conserve water resources effects of forest operations. 3.2.2 Riparian Areas (Local by maintaining water Indicator) quality and quantity. 3.2.3 Watercourse Crossings (Local Indicator)

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Criterion 4: Role in Global Ecological Cycles Maintain forest conditions and management activities that contribute to the health of global ecological cycles. Element Description of Local Description of Objectives Indicators Values Element 4.1: Carbon Uptake and Uptake and storage of Maintain or increase the 4.1.1 Net Carbon Uptake Storage - Maintain the processes carbon in forest natural processes that use and 4.1.2 Volume from Budworm that take carbon from the ecosystems. store carbon in forest Areas (Local Indicator) atmosphere and store it in forest ecosystems. ecosystems 1.1.4 Within-stand Structural Retention 2.1.1 Reforestation Success 2.2.1 Additions/Deletions 3.1.1 Soil Disturbance 3.1.2 Downed Woody Debris 3.1.3 Soil Productivity Element 4.2: Forest Land Amount of forested Minimal loss of forested land 2.2.1 Additions/Deletions Conversion - Protect forestlands land on the DFA. within the DFA during forest from deforestation or conversion operations. to non-forests, where ecologically appropriate.

Criterion 5: Economic and Social Benefits Sustain flows of forest benefits for current and future generations by providing multiple goods and services. Element Description of Local Description of Objectives Indicators Values Element 5.1: Timber and Non- A continuous supply Sustainably manage the forest 5.1.1 Benefits-Timber and Timber Benefits - Manage the of timber and non- to yield a log profile that meets Non-timber forest sustainably to produce an timber benefits from the mills current and future acceptable and feasible mix of both the forest. needs, while allowing the forest 1.1.3 Forest Age timber and non-timber benefits. to support or increase non- 2.2.2 Sustainable Harvest Evaluate timber and non-timber timber related uses and forest products and forest-based benefits. services. Element 5.2 Communities and Sustainable forest Support local businesses and 5.2.1 Initiatives-Community Sustainability - Contribute to the communities communities, that depend on 5.2.2 Training and Skills sustainability of communities by forest management activity 5.2.3 Direct-Indirect providing diverse opportunities to within the DFA, through Employment derive benefits from forests and by initiatives that contribute to 5.2.4 Aboriginal -Forest supporting local community the area’s economy. Economy economies.

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Criterion 6: Society’s Responsibility Society’s responsibility for sustainable forest management requires that fair, equitable, and effective forest management decisions are made. Element Description of Local Values Description of Objectives Indicators 6.1: Aboriginal and Treaty Rights Aboriginal title and rights, Recognition of Aboriginal 6.1.1 Rights and Title - Recognize and respect and treaty rights title and rights and treaty 6.1.2 Plan Acceptance Aboriginal title and rights and rights as related to forest 6.1.3 treaty rights. Understand and management. Management/Protection comply with current legal of Areas Where Cultural requirements related to Practices/Activities Occur Aboriginal title and rights and treaty rights. 6.2: Respect for Aboriginal Respect for Aboriginal Aboriginal values, 6.2.1 Aboriginal Forest Values, Knowledge, and values, knowledge, and knowledge and uses on Knowledge Uses - Respect traditional uses. the DFA, as identified by Aboriginal forest values, local Nations during knowledge and uses as identified consultations, will be through the Aboriginal input documented and process considered within forest management plans. 6.3: Forest Community Well- Resilient, healthy forest The companies are 6.3.1 Cooperation with Being and Resilience - Encourage, communities. supportive of efforts to Others co-operate with, or help to diversity local economies. 6.3.2 Safety provide opportunities for Worker and public safety 6.3.3 Safety Improvement economic diversity within the are priorities. community. 6.4: Fair and Effective Decision- Fair and effective decision- An effective public 6.4.1 Satisfaction-Public Making - Demonstrate that the making. involvement process is in Process SFM public participation process place that fosters forestry 6.4.2 Capacity is designed and functioning to the awareness, encourages Development, Meaningful satisfaction of the participants the public to comment on Involvement and that there is general public forestry plans, and 6.4.3 Capacity awareness of the process and its considers those Development, Meaningful progress. comments. Involvement - Aboriginal Element 6.5: Information for Information for Decision- Provide educational 6.5.1 Educational Decision-Making - Provide Making opportunities on forestry, Outreach (# people relevant information and and ensure participants in reached) educational opportunities to the public involvement 6.5.2 Available interested parties to support process have access to Information their involvement in the public relevant information. participation process, and increase knowledge of ecosystem processes and human interactions with forest ecosystems.

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4.0 Indicators and Targets

This section outlines the Indicators that measure or describe the Values listed in the previous section, and the desired Targets for those indicators.

There are 35 core Indicators that have been prescribed in the CSA standard, and an additional 6 locally- developed Indicators.

Many of the previous (2003) SFM Plan Indicators were the same or similar to the core Indicators prescribed in the newest (2008) version of the CSA standard. In many cases they have been refined or modified and are included again in this new SFM Plan, with the revised wording and numbering. (See Appendix A for summary of the current and previous Indicators)

Indicator 1.1.1 Ecosystem area by type Element(s) 1.1 Ecosystem Diversity Target Maintain ecosystems to the Natural Sub-region level. Basis of Target Ecological Areas within the DFA area, that consists of the Natural Sub-region level. Acceptable Variance 100% compliance. (No change in area by Natural Sub-region due to the companies forest management activities). Strategy(s) Ecosystem conservation represents a coarse-filter approach to biodiversity Description conservation. It assumes that by maintaining the structure and diversity of ecosystems, the habitat needs of various species will be provided. For many species, if the habitat is suitable, populations will be maintained.

Ecosite Classification systems are available for the DFA area and can be used at the Sub-Region level to guide broad management strategies and decisions (e.g. seed movement zones, harvest patch sizes, awareness of rare or uncommon ecosystems that may need special attention, etc). Means of Achieving Track changes in the area of each Natural Sub-region that occurs within the DFA, as Objective & Target mapped by the province, at each 10-year revision of the DFMP. The Natural Sub- regions are Central Mixedwood, Dry Mixedwood, Northern Mixedwood, Sub-Arctic, Boreal Highlands Upper, and Boreal Highlands Lower.

Use knowledge of Natural Sub-regions, and any changes in them, to guide forest management strategies and enable better forest management.

Analyze the cause of any changes in Natural Sub-region area, in conjunction with government, other experts and the public (PAG). Forecast The area in Natural Sub-regions will not change as a result of the companies’ forest management activities. The greatest risk to changes in area is climate change.

Natural Sub-regions, and changes in their extent, will be used to guide forest management strategies (e.g. assisted migration of tree species to adapt to climate change). Monitoring & The current area of each Natural Sub-region, as mapped and periodically updated by Measurement the Province of Alberta, will be checked during the preparation of each DFMP. Reporting Report every 10 years in conjunction with development of the DFMP. Current Status of Indicator This is a new core indicator for CSA Z809-08 that is linked to information used in the DFMP. Baseline information from the 2012 DFMP, on the area in each Natural Sub- region within the DFA, is reported in the annual SFMP Performance Report. The updated DFMP was submitted in January 2016, re-analysis of the information will be conducted after approval of the document and will be reported in the annual SFMP performance report.

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Indicator 1.1.2 Forest area by type Element(s) 1.1 Ecosystem Diversity 1.3 Genetic Diversity Target Maintain the proportion of forest area by the strata types used in Reforestation Standard of Alberta (RSA)5, in harvested sites across the DFA. Basis of Target The Reforestation Standard of Alberta provides a science-based, quantitative link between managed stand yields (assumed in the DFMP) and reforestation standards. Timber disposition holders are required to reforest harvested areas to maintain the balance between area of the following forest types (FMA specific yield class strata): - Deciduous - Hardwood/Pine - Hardwood/Spruce - White Spruce / Hardwood - Pine / Hardwood - Black Spruce / Hardwood - White Spruce - Pine - Black Spruce - Douglas Fir (not required in the Upper Hay District) Acceptable Variance Acceptable variance is stated in the Reforestation Standards of Alberta Manual. Strategy(s) Forest area by type is a refinement of the previous indicator – ecosystem area. Tree Description species composition, stand age, and stand structure are important variables that affect the biological diversity of a forest ecosystem - providing structure and habitat for other organisms. Ensuring a diversity of tree species is maintained improves ecosystem resilience and productivity and positively influences forest health and genetic diversity.

This Indicator addresses the biological diversity of forest ecosystems through the diversity and abundance of naturally occurring forests on the landscape. Means of Achieving Balance the forest area regenerated on the DFA across the applicable forest types Objective & Target (strata), through reforestation activities. The companies will balance the strata across the DFA within their operations. Forecast A naturally occurring balance of forest types is maintained across the DFA in reforested areas. (Barring regeneration standards changing to incorporate strategies such as assisted species migration, for adapting to climate change). Monitoring & Establishment and performance surveys will be carried out annually, as outlined in the Measurement Reforestation Standard of Alberta. Reporting Performance against this Indicator will be monitored annually by using the companies’ silviculture records, and reported on every 5 years. Current Status of Indicator This is a refinement of previous Indicator #2 (Cover Types, implemented in 2001) under which balancing by C, CD, D, DC strata was achieved within established tolerance levels.

Baseline information on the proportion of the net landbase by strata will be provided in the annual SFMP Performance Report.

5 Reforestation Standards of Alberta. May 2016. Accessed at http://www1.agric.gov.ab.ca (Search for “Reforestation Standard of Alberta”.

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Indicator 1.1.3 Forest area by seral stage (age class) Element(s) 1.1 Ecosystem Diversity 1.3 Genetic Diversity 5.1 Timber and Non-Timber Benefits Target Emulate the natural range of seral stages in the FMA portion of the DFA. Basis of Target Tolko completed the Natural Range of Variability FRIAA supported project in March 2007, led by Dr. Dave Andison. Acceptable Variance Stay within the range of natural variability Strategy(s) Maintaining forest area by age class is part of a coarse-filter approach to conserving Description ecosystem diversity at the landscape level, by maintaining the variety of communities and ecosystems that naturally occur in the DFA. It is assumed that by maintaining the structure and diversity of ecosystems, the habitat needs of various species will be provided.

To accomplish, a chosen method is to measure the forest area by a seral stage classification that takes into account the time since stand-replacing disturbance as well as evolving forest structural development. A simple classification might include the following five seral stages: regenerating, young, immature, mature, and old. Older age classes are often the most difficult to manage, primarily because they require much time to develop. However, they are often host to unique communities that would not otherwise be present across the forest landscape.

Understanding the age class distribution of the entire forest also helps understand wood supply flows, and when “fall-downs” or surges in the available wood supply may occur that could affect the companies’ mill operations.

The objective of moving towards the natural range of seral stage variability will replace the “green up” targets that were used previously. Means of Achieving A future Preferred Forest Management Strategy (PFMS) that over time moves seral Objective & Target stages across the FMA portion of the DFA towards the range of natural variability.

The only portion of the DFA this can be applied to is the FMA. (The targeted range of seral stages in F14, P19, and P21 are established under a different DFMP) Forecast Natural disturbances (such as Spruce Budworm and fire) will affect the ability to achieve this target. Monitoring & The age class distribution for the most recently completed Net land base in the FMA Measurement will be used as the baseline.

Every 5 years that baseline information will be compared with the current age class distribution to assess if seral stages are moving towards targets. Reporting Baseline information will be provided in the revision to the DFMP.

Performance against the target will be updated every 5 years in the DFMP Stewardship Report, and reported annually in the SFMP Performance Report. Current Status of Indicator This is a refinement of previous Indicator #4 (Age Class Distribution, implemented in the 2003/04 season), which focused only on older age classes.

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Indicator 1.1.4 Degree of within-stand structural retention Element(s) 1.1 Ecosystem Diversity 1.2 Species Diversity 3.1 Soil Quality and Quantity 4.1 Net Carbon Uptake Target Amount of vertical and horizontal diversity retained in cutblocks: - A minimum of 1% of the standing merchantable coniferous and deciduous volume will be retained during harvest operations - A minimum of 5% of harvested area will be retained as residual material or lesser vegetation Basis of Target Retention Levels determined through a DFMP process. Acceptable Variance 1% volume target for both conifer and deciduous will be met when averaged over the DFA (no acceptable variance). 5% area target can vary by 20% in a year (ie. -1%), but must meet the target over 5 years. Strategy(s) Maintaining various types, amounts, and distribution of residual structure is important Description in maintaining ecosystem function and biological diversity at the stand and landscape level. Vertical and horizontal structure retained in cutblocks provides habitat for a diverse range of forest species.

During harvest, single trees and clumps of live trees will be left to emulate the patches that occur naturally after a large natural disturbance (e.g. fire). Snags that are found in mature and older seral stands provide important habitat for cavity-nesting birds and mammals. Most cavity nesters require mature trees with some decay. Means of Achieving In addition to merchantable retention, the companies will retain other residual Objective & Target material during operations. Residual material, which can include lesser vegetation associated with lower-order streams, standing dead, broken or decaying trees, trees identified as having dens or nests, or other unique flora and/or terrain features, will average 5% of the area harvested and be distributed evenly within harvest areas where it exists. Viable understory will also be retained where it exists on the landscape through a number of protection strategies.

Stand-level retention strategies will be determined prior to the commencement of harvest operations through structure retention plans. Specific retention strategies will be discussed with the operator(s) during Tailgate (or pre-work) Meetings.

In measuring structure retention, the companies will use cost-effective and practical assessment strategies to quantify and evaluate merchantable volume retention. Through adaptive management, retention strategies will be continually evaluated and incorporated into successive forest management plans. Forecast Retention targets, averaged over the DFA, will be met. There will be variance at the cutblock and compartment level(s). Monitoring & Performance against the targets for this indicator will be evaluated after 5 years, at Measurement the end of each cut-control period.

In the interim, in order to align the amount of volume being retained with the amount of volume being harvested, the % retention will be checked and reported once cutblock updates are complete. (Note: the companies are exploring opportunities to align cutblock updates with program of capturing high resolution 4-band imagery every 3 years for the DFA, therefore reporting of actual retention levels could be once every 3 to 5 years. Initial 4 band imagery photos were captured in 2012.) Reporting Performance against the targets will be updated every 5 years in the DFMP Stewardship Report, and when information is available it will be reported in the SFMP Performance Report.

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Current Status of Indicator This is the same as previous Indicator #6 (Vertical and Horizontal Retention, implemented in the 2003-04 harvest season). It has been monitored and reported on since 2005, against similar targets, in the previous DFMP and SFMP.

The vertical retention target (which was 1% merchantable) was met over the 5 timber years 2006-2007 to 2010-2011. The horizontal retention target (of 5% of lesser vegetation) was not met for that period, largely due to the way it was being measured.

Indicator 1.2.1 Degree of habitat protection for selected focal species, including species at risk Element(s) 1.2 Species Diversity Target 100% compliance with Alberta Government approved operational plans in critical wildlife zones Basis of Target Forest Management Principles, Environmental Policy, and FMA Vision and Mission Acceptable Variance No variance is acceptable unless approved by Alberta Government. Strategy(s) While ecosystem conservation is the coarse-filter approach to biodiversity Description management, species diversity is the fine-filter approach. For most species, forest managers can manipulate habitats only, not species populations. To account for the degree of habitat protection for selected focal species, including species at risk, this indicator looks at short-term habitat needs, particularly for critical and core habitats, and existing protection plans for selected focal species.

Within the DFA, there are identified wildlife zones including Caribou Management Areas (CMA’s), Ungulate Winter Ranges, as well as areas of specific interest to a variety of species (e.g. Trumpeter Swan Lakes).

Operational planning will consider Species at Risk. During the development of operational plans within the DFA, the companies considers the needs of wildlife when planning harvest design, access development, maintenance, and abandonment, as well as timing of operations. Means of Achieving The companies will work with Alberta Government in the development and Objective & Target implementation of operational plans that address the specific needs of identified special species within wildlife zones.

All strategies implemented into operational planning to address the specific needs of wildlife species will be consistent with the Upper Hay Regional Operating Ground Rule (UHROGR) requirements for operating within those zones. Annual updates of applicable data layers will be required prior to Forest Harvest Plan & Annual Operating Plan development.

Through Tailgate (or pre-work) Meetings, the companies’ staff will ensure that all contractors are aware of the modified operational strategies associated with operating within those zones. Species at Risk training is required of all persons working on the DFA and is offered on the EMS Training website. Forecast Caribou Management Areas and/or Ungulate Winter Range(s) occur across the DFA. Operational plans will consider the needs of wildlife in these zones. Monitoring & The companies will monitor compliance with applicable Forest Harvest Plan and the Measurement conditions set out in the annual Caribou Protection & Ungulate Winter Range Plan. Additional monitoring will be completed through periodic Alberta Government compliance audits and/or inspections. Reporting Activities within wildlife zones will be summarized annually in the Annual Performance Report. Current Status of Indicator This Indicator encompasses the previous Indicator #8 (Wildlife Zones), implemented for the 2003-04 harvest season under the previous DFMP.

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Degree of suitable habitat in the long term for selected focal species, including Indicator 1.2.2 species at risk Element(s) 1.2 Species Diversity Target Adherence to the Spatial Harvest Sequence in the DFMP for the FMA portion of the DFA. (Through which the strategies for maintaining suitable habitat in the DFMP are carried out). Basis of Target Spatial Harvest Sequence in DFMP. Annual Spatial Harvest Sequence Variance Report. Acceptable Variance +/- 20% of the area harvested adheres to the Spatial Harvest Sequence. Strategy(s) The Spatial Harvest Sequence is used to outline the distribution and arrangement of Description stands to be harvested under the DFMP, to optimally address the maintenance of suitable habitat for species of special concern. Means of Achieving The companies will follow the Spatial Harvest Sequence outlined in the DFMP. Objective & Target This will operationalize the DFMP strategies for maintaining suitable habitat for six selected focal species: - American marten (Martes americana), - Moose (Alces alces), - Pileated Woodpecker (Dryocopus pileatus), - Wood Bison (Bison bison), and - Woodland Caribou (Rangerifer tarandus). These focal species were selected based on provincial status, association with specific stands and/or conditions, and social importance. Forecast Habitat for selected focal species will be maintained. Monitoring & Compliance with the Spatial Harvest Sequence will be monitored and reported on in Measurement the Annual Spatial Harvest Sequence Variance Report. (plan vs actual). Reporting Compliance with the Spatial Harvest Sequence will be reported on in the DFMP Stewardship Report at the end of the 5-year cut control period. It will also be reported on annually in the SFMP Performance Report. Current Status of Indicator This Indicator is linked to a strategy in the DFMP for maintaining habitat for selected species of concern. It is a refinement of the previous Indicators #1 (Adherence to the Spatial Harvest Sequence), and #5, Parts 1 & 2 (Habitat Availability) which were implemented in 2003 under the previous DFMP.

Note that from 2008 until 2014 the companies were permitted to deviate from the Spatial Harvest Sequence where required in order to harvest while operations were curtailed at Footner Forest Products (now Norbord), and deviated past the allowed variance of 20%.

Indicator 1.2.3 Proportion of regeneration comprised of native species Element(s) 1.2 Species Diversity 1.3 Genetic Diversity Target 100% compliance with Alberta Government guidelines that ensure appropriate species are reforested and strata balanced on harvested areas. Basis of Target Reforestation Standards of Alberta as updated periodically, which specifies acceptable tree species Acceptable Variance No variance is acceptable unless approved by Alberta Government. Strategy(s) To account for concerns that forests be regenerated primarily with native tree species, Description managers should address and monitor the proportion of regeneration comprised of native species.

The Reforestation Standards of Alberta describe the standards to be achieved at establishment and performance survey age. Performance standards are described in terms of species, species balance and several other characteristics.

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

Means of Achieving The companies must declare each opening to a regenerated stratum. There are 9 Objective & Target regenerated strata (“Base 10” Strata) for tree species composition classes in the DFA (Hw, HwPl, HwSx, SwHw, PlHw, SbHw, Sw, Pl, Sb). Strata balancing rules ensure the appropriate strata distributions (by area), as defined in the DFMP. Forecast Native tree species will be maintained in harvested areas. Monitoring & The success of reforestation targets will be measured by establishment and Measurement performance surveys. These surveys will measure cutblock regeneration as compared to the pre-harvest declaration. Reporting The companies will report on reforestation and survey activities that have occurred annually. Current Status of Indicator This is a new core indicator for CSA Z809-08. Baseline information will be reported in the first applicable annual SFMP Performance Report

Indicator 1.3.1 The area (ha) planted with seedlings from orchard stock (Local Indicator) Element(s) 1.3 Genetic Diversity Target <25% of area harvested in the DFA will be planted with seedlings from orchard seed, and be in accordance with Alberta Government guidelines (for effective population size, by target strata, over a rotation etc.) Basis of Target <25% is a voluntary, conservative target set by the companies in response to concerns about maintaining genetic diversity. It is estimated that <1% of seedlings planted currently are from orchard stock.

The current Alberta Government guidelines for material from a controlled parentage program containing locally adapted material are found in: Alberta Forest Genetic Resource Management and Conservation Standards May 2009.

For orchard seed they are 25-50% of a target stratum over a rotation, depending on the effective population size. Acceptable Variance Acceptable variance is +5%, as long as Alberta Government guidelines are still met Strategy(s) Tolko Industries Ltd is currently a partner with Manning Diversified Forest Products in Description a Tree-Improvement Program (Forest Genetics Association of Alberta). This tree improvement program uses Stream 1 material that was collected from Breeding Regions overlapping the DFA. Tolko has a small percentage stake in this project to allow planting of the produced Stream 2 material. Considering that Tolko implements the reforestation programs and seed supplies for both companies, LCSM by association is part of this project.

The indicator and target were established to meet or be more conservative than Alberta Government’s Alberta Forest Genetic Resource Management and Conservation Standards, May 2009. This manual contains standards to safeguard genetic diversity during the reforestation of harvested areas on public forest lands in Alberta, and was developed through extensive consultation with geneticists and other scientific and management professionals. Means of Achieving Seed from seed orchards is being incorporated into the companies’ reforestation Objective & Target program, within Alberta Government guidelines, as appropriate for the benefit to be gained through uplift in the AAC. Forecast The implementation of a Tree Improvement Program for the DFA will be in compliance with Alberta Government guidelines.

The cost / benefit model of tree improvement programs in Alberta are under evaluation by government and industry to determine the way forward. Area planted with seedlings from orchard stock will increase from the current level of <1% if more AAC uplift is allowed through managed stand yield curves. Monitoring & Annually report the proportion of seedlings planted from orchard stock, versus wild Measurement seed from seed zones.

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

Reporting Any enhanced forest management activities undertaken are reported in the 5-year DFMP Stewardship Report.

The proportion of orchard seed planted will also be reported annually in the SFM Plan Performance Report. Current Status of Indicator This Indicator encompasses the previous Indicator #9 (Orchard Seed)

No seedlings from orchard seed have been planted to date on the FMA. Tolko currently has 768 grams of Sw seed and 302 grams of Pl seed in storage from the previously mentioned tree improvement program (as of end of 2011).

Regeneration is consistent with provincial regulations and standards for seed supplies Indicator 1.3.2 and seed zones. (Local Indicator) Element(s) 1.2 Species Diversity 1.3 Genetic Diversity Target 100% compliance with Alberta Government standards for seed zones and seed supplies. Basis of Target Alberta Forest Genetic Resource Management and Conservation Standards, May 2009. Acceptable Variance No variance is acceptable unless approved by Alberta Government. Strategy(s) Locally adapted seed will be best suited to the areas being reforested. Description Seed Zones: Stream 1 collection programs (ie., wild seed) will be planned to maintain seed supplies.

Seed Supplies: A minimum of one registered Stream 1 lot for each species, in each seed zone where artificial regeneration is planned using seedlings, will be maintained.

This indicator was established in accordance with the Alberta Government standards in the manual listed above. The manual contains standards to safeguard adaptability and genetic diversity during the reforestation of harvested areas. The standards are focused on activities of tree seed and vegetative material collection, registration, processing and reforestation of tree seedlings and vegetative material on public lands in Alberta. It provides a detailed description of the individual seed zones and outlines the rules and limits for deployment of seed. Means of Achieving The companies will ensure annual compliance with Alberta Government guidelines. Objective & Target Seed collection strategies will parallel the companies’ planned reforestation program(s) to ensure that genetic diversity is maintained across the DFA. Forecast Adaptability and genetic diversity of reforested areas will be maintained. Monitoring & Silviculture Planner online application provided by The Silvacom Group will be used to Measurement monitor all reforestation activities.

Any non-conformances with Alberta Government requirements, and rationale, will be tracked and reported. This will include information on any notices received from the Alberta government that seed supplies are low, and/or state what seed collection programs were completed in reporting period to maintain seed supplies. Reporting This indicator will be reported in the annual SFM Plan Performance Report. Current Status of Indicator This is a new core Indicator for CSA Z809-08 that encompasses the previous Indicator #10 (Seed Deployment). Tolko – High Level Lumber Division has been diligent in maintaining seed supplies within the DFA. As of July 15, 2012 Tolko has approximately 2,724 kg’s of seed across all seed zones and species stored at Alberta’s seed storage facility at Smoky Lake.

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

Proportion of identified sites with implemented management strategies (FMA or Indicator 1.4.1 Site Level) Element(s) 1.4 Protected Areas and Sites of Special Biological and Cultural Significance Target Management strategies are being implemented for 100% of identified special sites. Basis of Target - Sites of special biological and cultural significance identified through public consultation or government processes - Forest Harvest Plans which identify management strategies for the identified special sites. Acceptable Variance No acceptable variance Strategy(s) The location of most sites of unique biological significance within the DFA is generally Description discovered during the planning process (rather than the development of a landscape level inventory). Using adaptive management strategies during the planning process allows the companies to alter plans to incorporate unique discoveries, rare habitats, and biological features.

At the strategic planning level, identified sites can be (1) considered a subjective deletion from the contributing land base therefore removed from future harvest scheduling, or (2) continue as part of the contributing land base however no harvest scheduling occurs.

At the operational planning level, identified areas of biological significance will be shown in the harvest plan for the area, and where applicable, alternative harvesting and/or silvicultural strategies will be outlined in the Forest Harvest Plan and implemented during operations. Means of Achieving The companies involve the public in identifying sites that have special biological or Objective & Target cultural significance within the DFA, through the Public Involvement Plan (PIP). These sites include plants and ecological communities, wildlife areas, grave sites, spiritual areas etc. That information, as well as information previously published or identified in other inventory programs, is tracked in the Silvacom online system and applicable GIS layers are updated before Forest Harvest Plans are developed.

During the development of Forest Harvest Plans, forest planners identify proposed cutblocks and/or access routes that may have to be modified to incorporate potential areas of special significance. Forecast Special sites will be protected The information available on special sites will grow over time. Monitoring & Track compliance with Annual Operating Plans (AOP’s) and Forest Harvest Plans that Measurement identify: - Protection mechanisms for areas of biological or cultural significance. (previous Indicator #11) - Operational strategies to mitigate impacts to the Watt Mountain Natural Area. (previous Indicator #12) - no scheduled harvesting on the Peace River Islands or in the Ponton River Corridor (previous Indicators #3 and #26) Reporting The proportion of operations with management strategies for identified special sites that have been implemented will be reported in the annual SFM Plan Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. It incorporates previous Indicators #3 (Areas of Ecological Significance), #11 (Areas of Biological Significance), #12 (Watt Mountain Natural Area), and #26 (Area Removed to Incorporate Aesthetics), which were implemented for the 2003-04 harvest season.

The Peace River Islands and Ponton River Corridor are considered sites of significance on the DFA for ecological and aesthetics reasons. These areas are part of the contributing land base however no harvest is scheduled.

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

Indicator 1.4.2 Protection of identified sacred and culturally important sites. Element(s) 1.4 Protected Areas and Sites of Special Biological and Cultural Significance Target 100% Compliance with the Historical Resources Act. Basis of Target - Identified sacred and culturally important sites. - Alberta Historical Resources Act Acceptable Variance No acceptable variance Strategy(s) This indicator has been established to ensure that areas sacred and cultural / historical Description significance (such as grave sites and spiritual areas) are protected during harvesting and silvicultural operations.

During the development of Annual Operating Plans on the FMA, potential locations of sacred, heritage or cultural sites are predicted based on topographical features, watercourses, existing access and cover-types, using a heritage predictability model. Where proposed developments occur in areas of high probability for traditional use a ground assessment is conducted by a professional archaeologist to look for indicators of prior use. The assessment is conducted prior to plan approvals and operations occurring.

The companies also involve First Nations and the public in identifying the location of sites that have special significance within the DFA as part of the Public Involvement Plan. Identified and potential heritage sites are then incorporated into operational plan development to ensure their protection. Means of Achieving Information on special sites obtained through the Public Involvement Plan, the Objective & Target heritage predictability model, publications and other inventory programs is tracked in the Silvacom online system and applicable GIS layers are updated before operational plans are developed.

During the development of operational plans, forest planners identify proposed harvesting and silvicultural operations and/or access routes that may impact such sites, and modify plans to ensure their protection. Forecast Sacred and culturally important sites will be protected. The information available on such sites will grow over time. Monitoring & Permit applications and reports, and records of compliance with results of Historical Measurement Resource Overviews, are submitted to the Ministry of Alberta Culture and Community Spirit (ACCS). This evidence shows compliance with the Historical Resources Act. Reporting A summary of the Historical Resources Overview carried out each year on proposed developments, and any resulting changes to operations, will be provided in the annual SFM Plan Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. It incorporates previous Indicator #25 (Heritage Assessment Act).

The incorporation of the heritage predictability model into operational plan development began before the 2002-03 harvest season.

Annually a Historical Resources Overview (HRO) is conducted on all developments (blocks and access roads) associated with the companies’ harvest plans for the upcoming harvest season. Based on this overview a limited number of on-the-ground pre-impact assessments are conducted by arch resource specialists and recommendations are made regarding planned operations or required changes (if any) to avoid or protect sites.

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

Indicator 2.1.1 Reforestation success Element(s) 2.1 Forest Ecosystem Resilience 2.2 Forest Ecosystem Productivity 4.1 Carbon Uptake and Storage Target 100% of harvested openings will meet the applicable regeneration standards. Basis of Target Reforestation Standards of Alberta, 2016. Forest Management Principles, Environmental Policy, and FMA Vision and Mission Acceptable Variance No acceptable variance Strategy(s) Ensuring that ecologically appropriate, diverse tree species are maintained conserves Description forest ecosystem productivity and capacity, and positively influences forest health. Prompt reforestation ensures that the productive capacity of forest land base to grow trees is maintained.

A forest management strategy aimed at maintaining or increasing forest carbon stocks, while producing a sustained yield of timber, fibre or energy from the forest, and can help mitigate climate change.6 Prompt and effective renewal (regeneration) helps ensure forests maintain or increase the levels of carbon they store.

The Reforestation Standard of Alberta describes the procedures for developing mean annual increment standards, making declarations, subdividing cutblocks into more than one opening, strata balancing, and conducting and reporting on Establishment and Performance surveys. Means of Achieving Silviculture planning and activities will be consistent with the Reforestation Standards Objective & Target of Alberta. This includes planting species that are ecologically suited to the site, and carrying out activities within two years after harvest.

The companies will be aggressive in salvaging and reforesting as much of the productive Landbase following natural disturbance on the DFA as possible (fire, insects, blowdown), taking into account the quality and quantity of the fibre. Forecast Reforestation will be successful. The productive capacity of the forest will be maintained. Monitoring & The companies will measure success through Establishment and Performance surveys Measurement that assess harvest area regeneration, including stocking and growth. These surveys measure cutblock regeneration compared to the regeneration standard of the pre- harvest declaration identified in the Annual Operating Plan.

The total naturally disturbed area yielding salvageable volume, and the area salvaged and reforested on the DFA will also be monitored.

Any areas that do not achieve the Establishment standards by the end of the Establishment survey timing window (e.g. 4-8 years after skid clearance for conifer) must be retreated the following year.

Results of the Performance survey are accepted as is, whether targets have been met or not. In the Reforestation Standards of Alberta there are no pass or fails at Performance, and the results for the blocks are records (strata and MAI achieved). Administratively, the results of these Performance surveys are required to be assessed every 5 years to determine if there needs to be an upward or downward adjustment to the AAC based on performance. Reporting Reports summarizing the planned reforestation activities (Annual Reforestation Program), and the previous year’s actual reforestation program, are submitted annually to government. The proportion of naturally disturbed areas yielding salvageable volume that were salvaged and reforested on the DFA is also reported annually.

6 Can Canada’s Forests Contribute to a Climate Change Mitigation Strategy? Presentation by Dr. Werner Kurz. Natural Resources Canada, Canadian Forest Service. May 1 2008.

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

Establishment & Performance survey results are submitted annually to the Alberta Regeneration Information System (ARIS) for each regenerating block that was surveyed.

The status of this indicator will be summarized in the annual SFM Plan Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. It incorporates previous Indicators #14 (Reforestation Following Natural Disturbance), #21 (Reforestation Activities), and #22 (Satisfactorily Restocked Areas).

A total of 7296.63 ha of landbase (1860.25 ha productive, 25.49%) has burned on the DFA since the implementation of previous Indicator #14 on May 1, 2003, with no salvageable area identified.

The companies have completed reforestation activities it is responsible for within two years of the harvest date. (Previous Indicator #21).

Since 2006 the companies operating on the DFA have declared 2.4% of NSR to the end of the 2010 survey season, which is below the target maximum of 5% for previous Indicator #22.

Indicator 2.2.1 Additions and deletions to the forest area (by cause) Element(s) 2.2 Forest Ecosystem Productivity 4.1 Carbon Uptake and Storage 4.2 Forest Land Conversion Target Soil disturbance of ≤ 5% of a harvest area, includes bared landing areas, temporary roads, displaced soils or ruts. Basis of Target Ground rules. Acceptable Variance Variance allowed at the cutblock level, however across the entire DFA there is no variance allowed. Strategy(s) Notwithstanding the special circumstances in which forests might not be naturally Description occurring ecosystems it is good for the global carbon cycle to have land in forest cover across its natural range. Forests can be turned into other types of ecosystems through a variety of activities, including those that relate directly to SFM (e.g., building roads and landings) and those outside the influence of forest managers (e.g., urban and industrial developments, utility corridors). Forest managers should reduce, as much as possible, the amount of area they convert to non-forest ecosystems and should discourage unwarranted forest land conversions that are beyond their control.

This indicator is used to track permanent additions and deletions to the Landbase. Most roads created by the companies are ice roads. These temporary roads must be ≤ 5 % of the Landbase. They are removed after use by doing minor restoration and planting over them. Means of Achieving The companies will minimize loss of landbase within its sphere of influence, through: Objective & Target - careful planning to minimize the amount of permanent roads, - using existing linear developments (e.g. seismic lines) wherever possible

This will include integrating operations between forest companies and encouraging the integration of other industrial users within the boundaries of the DFA. Forecast Productive forest soils with minimal losses due to forest development. Monitoring & The area in permanent roads and landings, as identified in operational plans, over gross Measurement block area (ha) for cutblocks harvested during the reporting year will be measured annually.

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

The companies will actively reforest in-block seismic lines that are considered by Alberta as non-forested. Once these seismic lines are planted within a cutblock they are then considered as part of the regenerating cutblock and contribute towards offsetting permanent access disturbances. (Note: forested polygons that are bisected with seismic lines have an area reduction factor applied, and once the polygon is cut the reduction factor is removed.)

On the FMA portion of the DFA, withdrawals from the Landbase as a result of other land use activities will be assessed during the development of the Detailed Forest Management Plan’s Net Land Base document that is updated once every 10 years. In the interim, the companies will receive annual updates to various land use layers (e.g. AltaLis, etc.) so that Operational Plans reflect current land use activities. Reporting New permanent access development and deviations from this target will be tracked annually and submitted as part of the 5-year DFMP Stewardship Plan.

The status of this indicator will also be summarized in the Annual Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. It incorporates previous Indicator #23 (Decrease in Non-forested Area) Under previous Indicator #23, no wellsites were planted in 2010. The companies do reforest seismic lines that occur within harvest blocks. Seismic lines are considered non-forested. For the years 2005 to 2010 the % of the planting program dedicated to reforesting seismic lines was 2.16%.

Indicator 2.2.2 Proportion of the calculated long-term sustainable harvest that is actually harvested Element(s) 2.2: Forest Ecosystem Productivity 5.1 Timber and Non-Timber Benefits Target Harvest the approved AAC over the 5-Year cut control period across the DFA. Basis of Target Approved harvest levels established in the DFMP on the FMA portion of the DFA. Approved quota harvest levels on FMU’s P21, P19 and F14 as approved through other processes. Acceptable Variance The acceptable variance is +/- 10% annually of the approved allowable annual cut volume unless over-cut is the result of salvage (e.g.wildfires). No variance allowed over a quadrant unless salvage volume is involved. (see Forecast for what occurs if there is a variance at the end of quadrant) Strategy(s) Sustainability involves limiting actual timber harvest to levels within the long-term Description capability of the forest to grow wood. It also involves harvesting the full AAC available, to provide economic benefits to local communities.

A Timber Supply Analysis (TSA) for the FMA portion of the DFA is completed during the development of a DFMP, and both the long-term sustainable harvest level (over a 200 year planning horizon) and Annual Allowable Cuts (AACs) calculated. The harvests level of the quota harvests in FMU F21 and P19 are determined through the DFMP process by Daishowa-Marubeni International Ltd on their FMA. The quota harvest level for FMU F14 is determined by Alberta as this FMU is government controlled.

Annual harvest levels vary within the long-term levels set for a variety of reasons. These include: - the age (merchantability) of the forest, - salvaging harvests as a result of insect infestations (Spruce Budworm in particular); - attempting to accelerate changes in forest composition toward more natural states; and - Correcting undesirable age-class imbalances such as an over-abundance of declining stands caused by the suppression of natural disturbances.

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

Means of Achieving Approved Annual Operating Plans for annual and 5-year harvest levels that are aligned Objective & Target with those established in strategic plans. Forecast The companies will harvest the approved quadrant harvest levels across the DFA.

In the event of an under production of periodic allowable cut during a quadrant, there is opportunity for application to Alberta to have the under produced volume carried over to the next quadrant.

In the event of over cutting of the periodic allowable cut during a quadrant, Alberta can reduce the volume allowed to be harvested in the subsequent quadrant by an amount equal to the entire over cut volume. Exceptions are when the over cut results from the salvage of dead, damaged, diseased, decadent or fire killed timber. Monitoring & The volume actually harvested (m3) will be monitored annually and summarized Measurement according to 5-year cut control periods (Quadrants). Reporting The proportion of allowable harvest actually harvested, by quadrant production, will be summarized annually in the 5-year DFMP Stewardship Report.

The status of this indicator will also be summarized in the Annual Performance Report. Current Status of Indicator This is a refinement of previous Indicator #24 (AAC Harvested During 5-Year Cut Control Period).

Periodic cut control volume (m3), FMA0200040 Quadrant Timber Years: 2013-2017 Quadrant Target: Tolko 6 307 500 m3, LCSM 942 500 m3

Periodic cut control volume (m3), CTQP210005 Quadrant Timber Years: 2014-2016 Quadrant Target: Tolko 315 191 m3, LCSM 47 094 m3

Periodic cut control volume (m3), CTQP190003 Quadrant Timber Years: 2014 -2018 Quadrant Target: 516 675 m3

Periodic cut control volume (m3), CTQF140007 Quadrant Timber Years: 2016-2020 Quadrant Target: 132,615 m3

With the end of the quadrant cut an audit of the production will be conducted by the Alberta Government and approval of carry forward (if any) will be approved.

The Timber Supply Analysis to be done in the 2016 revision of the DFMP on FMA0200040 will provide updated long-term and AAC harvest levels.

Indicator 3.1.1 Level of soil disturbance Element(s) 3.1 Soil Quality and Quantity 4.1 Carbon Uptake and Storage Target <5% disturbance within cutblocks created by temporary roads, rutting, bared landing areas and displaced soil, across all operations over a 5-year period (unless prior approval is received from Alberta to exceed this level). Basis of Target Operating Ground Rules Acceptable Variance No acceptable variance, when measured across the DFA Strategy(s) Soil is the foundation of forest ecosystems and the main source of nutrients for all Description plant species. Most of the fine roots of trees, which are responsible for nutrient uptake, exist in the top 20 cm of the soil (i.e., in the topsoil). It is therefore vital to keep soil in place and to disturb it as little as possible.

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

Soil disturbance can have positive (mineral soil exposure for seed germination) or negative (soil compaction) impacts. Managing the detrimental soil disturbance levels will help to retain the productive capacity of ecosystems

Maintaining soil quality and quantity involves implementing management strategies to minimize and mitigate soil disturbance. Means of Achieving Strategies to maintain soil productivity include reducing the area in temporary and Objective & Target permanent roads and landings, reclaiming temporary roads and landings (when required by Operating Group Rules), avoiding compacting and rutting the soil with machinery, using existing lineal developments, operating mainly in the winter on frozen soils, leaving coarse woody debris to form new soil, and avoiding accidental fires. This indicator focuses in specifically on the level of soil disturbance.

Through operational planning prior to harvest, road design will incorporate the Soil Conservation Guidelines prepared by the Alberta Government and Alberta Forest Products Association to ensure that soil degradation from the construction on in-block roads is minimized.

Further, the companies will assess the potential of rutting prior to the commencement of harvest and/or silvicultural operations and conduct operations according to the Soil Conservation Guidelines. The likelihood of rutting during operations is lessened, since the companies primarily operate during frozen ground conditions. If rutting occurs during operations, the companies will modify operations and/or scheduling to ensure that other occurrences are minimized in the future. Forecast Soil productivity is maintained Monitoring & Successful implementation of this target will be assessed across the DFA (soil Measurement disturbance may exceed the target threshold at the cutblock level).

Performance will be monitored annually (Timber Year) by reporting across the DFA the total planned soil disturbance area, total planned harvest area, and the resulting % of planned disturbance. Monitoring to confirm the actual percentage will occur through cutblock update analyses and included as part of the 5-year DFMP Stewardship Report. Reporting The level of soil disturbance will be reported in the annual SFMP Performance Report and summarized in the 5-year Stewardship Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. It incorporates previous Indicators #15 (Road Disturbance) and #16 (Rutting Disturbance), which were implemented for the 2003-04 harvest season.

Indicator 3.1.2 Level of downed woody debris Element(s) 3.1 Soil Quality and Quantity 4.1 Carbon Uptake and Storage 1.1 Ecosystem Diversity Target Evidence that coarse woody debris (CWD) is retained within harvested areas across the landscape while managing CWD according to Operating Ground Rules. Basis of Target - CWD is retained in cutblocks following harvesting operations - Recognition by the companies and Alberta Government that debris piles provide wildlife habitat and spatial diversity within harvested areas. - Fibre utilization requirements - Fire Prevention requirements in Operating Ground Rules - Habitat objective Acceptable Variance No acceptable variance. Debris accumulations must meet Operating Ground Rules and Forest and Prairie Protection Act.

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

No variance to the accepted Harvesting Systems (e.g. Whole tree harvesting or fibre harvesting are not accepted systems) Strategy(s) Dead wood is an important component of a healthy forest ecosystem. While live trees Description can be blown down and die, often trees die standing. These standing dead trees, or snags, serve as important habitats for a wide range of decomposing organisms, as well as cavity-nesting species such as woodpeckers. Coarse woody debris includes both downed woody debris and standing trees that have been left to allow the woody debris to decompose, resulting in organic matter that eventually becomes part of the soil. Downed woody debris can be managed by leaving both dead and live trees, as well as downed logs, whenever timber harvests are taken.

Coarse woody debris in the form of debris piles will provide habitat structure. Fibre utilization, fire prevention and habitat requirements will be balanced to achieve the objective.

Debris or slash accumulation resulting from timber harvest operations must, as a priority, be redistributed or disposed of to minimize the risk of wildfire ignition and spread. However, it is recognized that some retention of debris is valuable from an ecological perspective, and that a reasonable amount of debris retention shall occur to emulate natural forest floor accumulations. Ecological benefits include microtine habitat, furbearer habitat (when piled), and soil nutrient inputs. When debris is maintained, it must be in such a distribution and amount to: 1) minimize wildfire risk as a priority, 2) minimize the amount of productive landbase loss by limiting lost area available for deciduous species suckering, or tree planting, and 3) provide ecological benefit (coarse filter vs. fine filter).

The retention of coarse woody debris (CWD) will be measured as debris piles retained on site following harvesting operations, primarily for wildlife purposes.

Vertical and horizontal stand structure will also be retained in harvested blocks (See Indicator 1.1.4: Degree of within-stand structural retention).

Conifer operations on the DFA are 1 of 3 harvesting systems: • Cut-to-length (CTL): Felled by feller buncher, skidded to roadside and then processed into lengths before loading on trucks. Debris disposal piles are made at roadside and accumulations occur within the block that range in size from a turned over stump to the Maximum debris accumulation size (see below). • Full-tree (FT): Felled by feller buncher, skidded to roadside and loaded on truck prior to being limbed. Limbing and processing occurs at a satellite storage yard, however most limbs are removed during felling and skidding due to the cold temperatures, with the debris remaining in the harvested area. There are no debris disposal piles created at roadside. Accumulations occur within the block that range in size from a turned over stump to the Maximum debris accumulation size (see below). • Tree-length (TL, least used harvesting system): Felled by feller buncher, skidded to roadside, limbed and topped by stroke delimber, and then loaded onto trucks. Debris disposal piles are made at roadside and accumulations occur within the block that range in size from a turned over stump to the Maximum debris accumulation size (see below).

In all three harvesting systems the focus of extraction is a merchantable log and not the full extraction of all debris. Dead snags (felled for safety reasons), aspen that is not utilized, limbs, damaged tops, etc., can be found throughout all harvesting operations and these contribute to soil accumulation & retention, habitat, nurse logs, and protection for seedlings. The level of downed debris is higher following harvesting using the above harvesting systems.

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Tolko Industries Ltd, HLLD & La Crete Sawmills Ltd CAN/CSA Z809-08, Sustainable Forest Management Plan

Means of Achieving Conifer harvesting systems on the DFA will be either CTL, FT or TL to maintain a level Objective & Target of downed woody debris in harvested blocks. Forecast Soil productivity is maintained, and wildlife habitat provided. Monitoring & The number of blocks by each harvesting system will be monitored annually. Measurement Any Environmental Incident Reports & Penalties associated with inadequate debris disposal will be tracked in Tolko’s Environmental Management System.

Maximum size of debris accumulations within a harvest area is: a) height of piles must not exceed 2 m; b) base diameter of piles must be no greater than 3 m; c) distance between piles must be no less than 25 m; d) distance from block edge must be no less than 25 m. Reporting The number of blocks by each harvesting system will be reported annually.

Any Environmental Incident Reports & Penalties associated with inadequate debris disposal will be reported from Tolko’s Environmental Management System. Current Status of Indicator This is a refinement of previous Indicator #7 (Coarse Woody Debris), which was implemented during the 2003-04 harvest season and that focused on tracking debris piles retained.

Indicator 3.1.3 Changes in soil productively (Local Indicator)

Element(s) 3.1 Soil Quality and Quantity 4.1 Carbon Uptake and Storage Target Timber productivity in managed stands is equal to or greater than unmanaged stands. Basis of Target - Research - Growth & Yield information - Forest Management Principles and FMA Vision and Mission Acceptable Variance No variance is acceptable. Strategy(s) Established and new research is leading to a better understanding of the effect of Description harvest and silviculture operations on soil productivity.

The effect of forest operations on soil productivity can also be assessed by comparing growth rates of managed stands and natural stands.

The information from both sources can be used to validate the wood supply assumptions made in the DFMP. Means of Achieving The companies will participate in, support, or monitor research initiatives to evaluate Objective & Target the effect of harvest operations on soil productivity.

Existing Growth and Yield information collected through Temporary Sample Plots (TSP’s) will be built on through the establishment of additional TSP’s and Permanent Sample Plots (PSP’s), when there is an active Growth and Yield program in place. Forecast The best available information on timber productivity in managed stands will inform the Timber Supply Analyses (TSA’s) and Detailed Forest Management Plans for the FMA portion of the DFA. Monitoring & Research information on the timber productivity in natural stands vs. managed stands Measurement will be monitored.

The Growth and Yield program is currently on hold. Reporting The companies will report on research initiatives relating to soil and timber productivity in in both the annual SFMP Performance Report and 5-year DFMP Stewardship Report.

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Current Status of Indicator This is a local indicator, previously numbered as Indicator #17 (Soil Productivity) and implemented in 2004.

Reporting for this indicator was originally intended to be tied to an on-going Growth and Yield program which Tolko and Footner Forest Products (now Norbord) were conducting. Activity in the Growth and Yield program stopped when Footner Forest Products shut down in January 2008. Reporting will now be focused on research initiatives relating to soil and timber productivity.

The following initiatives occurred during 2010–2011: - Continued support of the Forest Genetics Association of Alberta (FGAA) through FRIAA contributions, which enables research into genetic gains through tree improvement. - Support for the Mixedwood Management Association (MWMA) that supports research into mixedwood management, through FRIAA contributions. MWMA received approval from FRIAA in 2009 to develop the Alberta Forest Growth Organization as a source of growth and yield information for forest companies and to assist with carbon exchange involving the Oil & Gas sector. Events occurred as per the FRIAA approval associated with this project. - FRIAA project “Advancing Non-Fibre Value Forecasting Through an Application of Forest Growth Models”, was approved August 2008. The purpose of the project is to link habitat available over the life span of a forested stand for chosen wildlife species, with Alberta forest growth models that predict growth of regenerating stands following harvest.

Proportion of watershed or water management area with recent stand-replacing Indicator 3.2.1 disturbance Element(s) 3.2 Water Quality and Quantity Target Adherence to Spatial Harvest Sequence Basis of Target - PFMS and Spatial Harvest Sequence in revision of DFMP - Watershed layers in the GIS. - Records of harvesting and natural disturbance Acceptable Variance ≤ 20% of the area harvested. Strategy(s) Water quality and quantity can be affected by stand-replacing disturbances that are Description both human and natural-caused. The effects due to disturbances are normally highest in the initial post-disturbance years and diminish over time as the forest regenerates. The critical threshold at which the disturbance begins to affect water values varies according to a number of factors, including topography, soil properties, vegetation types, and climate. The Equivalent Clearcut Area (ECA) describes a second-growth block in terms of its hydrological equivalent as a clearcut.

During the development of the DFMP a watershed analysis was used to determine the potential effects of harvest and silvicultural operations on watersheds within the DFA. The harvest sequence identified in the PFMS ensures that peak flow thresholds are not exceeded due to management actions. Means of Achieving Follow the PFMS and Spatial Harvest Sequence in the 2012 revision of DFMP, which Objective & Target outline harvesting activities scheduled to minimize impacts to watersheds in the DFA. Forecast Harvesting activities will be conducted to minimize impacts to watersheds in the FMA area.

Monitoring & The basis to monitor progress towards the target is the Spatial Harvest Sequence Measurement Variance Report. Variance of >20% from the approved SHS proves the indicator is not being followed.

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Reporting Performance against this indicator will be summarized in the 5-year SFMP Stewardship Report.

Current Status of Indicator This is a refinement of previous Indicators #18 (Adherence to the PFMS) and #1 (Spatial Harvest Sequence).

In 2008 Tolko was given permission to operate outside the harvest sequence where required, in order to harvest in the absence of Footner Forest Products (now Norbord) operations. In the 2010/2011 season the companies deviated past the allowed variance for the previous target, of being up to 20% outside of adherence to the PFMS for water yields.

Indicator 3.2.2 Satisfactory management of riparian areas (Local Indicator) Element(s) 3.2 Water Quality and Quantity Target 100% Compliance with approved riparian management as outlined in an approved Annual Operating Plan (AOP) Basis of Target Forest Management Principles, Environmental Policy, and FMA Vision and Mission Acceptable Variance No variance is acceptable. Strategy(s) Follow riparian management strategies as approved within Annual Operating Plan(s). Description Means of Achieving • The companies use Operational Controls Objective & Target • Clear instructions to contractors working adjacent to riparian areas • Contractors are provided spatial information for the approved harvest plan Forecast There will be no significant impact on water quality resulting from the companies’ forest management activities. Monitoring & The location of watercourses and their associated Watercourse Protection Areas will Measurement be outlined in Annual Operating Plans (AOPs).

Compliance with the approved Watercourse Protection Areas will be monitored through contract administration and Tolko’s Environmental Management System (EMS). Reporting Any compliance reports from Alberta Government related to riparian management will be reported annually. As-builts, completed once every 3 years, will be used to report where actual protection was different than planned.

Current Status of Indicator This indicator was previously Indicator #19 (Forest Cover in Riparian Buffer Zones), which was implemented for the 2003-04 harvest season.

Indicator 3.2.3 Satisfactory installation & removal of watercourse crossings (Local Indicator) Element(s) 3.2 Water Quality and Quantity Target 100% of the companies’ watercourse crossings meet the installation and removal standards that protect water. Basis of Target - Operational Ground Rules - FMA Operating Ground Rules (DMI, PRPD) for P21 and P19 - The Water Act and Regulations, including the Code of Practice for Watercourse Crossings that applies to placing, constructing, installing, maintaining, replacing or removing a watercourse crossing. - EMS controls Acceptable Variance < 5% Strategy(s) Conduct all road, harvest and silviculture activities in a way that maintains the Description integrity of riparian areas.

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Means of Achieving The standards that are followed include: 1) mapping and providing other information Objective & Target about watercourse crossings, 2) planning that minimizes the number of watercourse crossings, 3) avoiding operations within prescribed distances, and 4) installation, removal and reclamation procedures.

A Creek Crossing Tracker (online application) is used to track installation and removal of watercourse crossings. Performance against watercourse crossing requirements is tracked in annual processes of internal and external audits, government inspections and incident reports. Forecast Water quality, fish passage, bank stability and aquatic fauna habitat are not compromised during watercourse crossing construction, maintenance and reclamation.

Note: A high majority of watercourses that are crossed during the companies’ operations are non-fish bearing, have prevalent beaver activity, flow gradually within and out of muskeg areas, have low to no flow at times of the year, and can be completely frozen during winter operations. Monitoring & Record and report the number of non-compliances with law or approval conditions Measurement that occur. Reporting Compliance with watercourse crossing standards will be reported annually in the SFMP Performance Report. Current Status of Indicator This indicator was previously Indicator #20 (Installation and Removal of Watercourse Crossings), implemented for the 2003-04 harvest season.

The previous target focused on any reclamation required following watercourse crossing removal.

Indicator 4.1.1 Net carbon uptake / balance Element(s) 4.1 Carbon Uptake and Storage Target Conduct activities that are known to offset impacts to carbon stocks. Basis of Target Strategies that help ensure forests maintain or increase the levels of carbon they store. Acceptable Variance No acceptable variance. Strategy(s) Forest carbon has recently become a key SFM value, especially in light of Canada’s Description international commitment to lower its net carbon outputs to the atmosphere. A forest management strategy aimed at maintaining or increasing forest carbon stocks, while producing a sustained yield of timber, fibre or energy from the forest, can help mitigate climate change.7

Strategies that help ensure forests maintain or increase the levels of carbon they store are: - Prompt and effective renewal (regeneration) - Maintain ecosystem condition & productivity - Minimize soil disturbance - Protecting forest lands from deforestation or conversion to non-forests, where ecologically appropriate.

Tolko High Level is also a partner in the Alberta Forest Growth Organization (AFGO). The AFGO is engaging industry, government and academia, and all of Alberta’s resource-based industries (forestry, energy, mining, agriculture, power and water) to: - Identify high priority growth and yield needs and opportunities

7 Can Canada’s Forests Contribute to a Climate Change Mitigation Strategy? Presentation by Dr. Werner Kurz. Natural Resources Canada, Canadian Forest Service. May 1 2008.

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- Work towards co-ordination of existing and newly initiated growth and yield research - Secure funding for relevant existing and identified new research - Create partnerships between sector groups, especially around the creation and trading of carbon

The AFGO was created after a successful application by a number of partners to the Forest Resource Improvement Association of Alberta (FRIAA). It will raise the profile of forest growth and yield, and its link to carbon, as well as secure long term funding, create partnerships outside the forest industry, and ensure the efficiency and applicability of growth and yield research. Through this group, and in the face of climate change and carbon emission regulations, all of Alberta’s resource-based industries will begin to rely on the estimation of forest growth and yield to demonstrate sustainability, and to derive/trade carbon credits.

During the development of a full Detailed Forest Management Plan for FMA0200040, the companies will consider the application of using the existing CFS-CBM-3 model developed by the Canadian Forest Service to run concurrently with timber supply scenarios on the FMA portion of the DFA. The output of the model runs combined with Preferred Forest Management Strategy information will allow carbon pools to be influenced by forest management decisions. Carbon budget modeling on Tolko’s quotas in Forest Management Units P21, P19 and F14 will be investigated in cooperation with Daishowa-Marubeni International, who manages the strategic level planning in P21 and P19, and with Alberta Environment and Sustainable Resource Development who manages F14. Means of Achieving Implement strategies for keeping forest lands vigorously growing trees and Objective & Target maintaining carbon stocks, and participate in forest growth and yield research with other resource industries through the Alberta Forest Growth Organization (AFGO) Forecast Forest management will continue to focus on maintaining or increasing forest carbon stocks, and this will be better integrated with other resource-based industries in the DFA. Monitoring & Compile information on the results of strategies that maintain or increase forest Measurement carbon stocks, and the AFGO partnership. Reporting Report in the annual SFMP Performance Report Current Status of Indicator This is a new core indicator for CSA Z809-08.

Annual harvest (m3) from areas identified as being infested by spruce budworm or Indicator 4.1.2 other insects or disease (Local Indicator) Element(s) 2.1 Forest Ecosystem Resilience 2.2 Forest Ecosystem Productivity 4.1 Carbon Uptake and Storage 5.1 Timber and Non-Timber Benefits Target Annual harvest plans consider Spruce Budworm (SBW) infestations and related risk to wood supply. Basis of Target - Forest Management Principles and FMA Vision and Mission - Forest Stewardship Acceptable Variance No variance is acceptable. Strategy(s) Spruce budworm (Choristoneura fumiferana) is a significant forest health issue within Description the DFA.

Plan and adapt activities to minimize fibre loss to insects and disease on the DFA. Means of Achieving The Spatial Harvest Sequence within the DFMP may consider historical SBW Objective & Target infestations, and annual Alberta Government aerial surveys have identified areas of Spruce Budworm infestation which guide where the companies harvest on an annual basis.

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Forecast Harvest sequence will be driven by efforts to control SBW and other insects, and to salvage insect killed wood along with fire salvage. Monitoring & The companies will track the harvest plans that are driven by efforts to minimize the Measurement impacts of insects, disease & fire on the DFA. Reporting Annually the companies will report if plans were adjusted for SBW infestations and what Operating Areas were targeted for harvest.

The 5-year DFMP Stewardship Report will provide a summary of how SBW infestations have varied over the previous 5 years (using Alberta Government annual surveys) and how the companies adjusted operations accordingly. Current Status of Indicator This indicator was previously Indicator #13 (Harvest of Areas Infested by Spruce Budworm or Other Insects or Diseases), implemented May 1, 2003.

The companies have adhered to the harvest sequence where possible to specifically target compartments of high-risk and those areas that have shown increased damage as a result of the SBW infestation. The companies have also adjusted annual plans to harvest additional SBW impacted areas and limit loss of fiber, and look for opportunities harvest fire salvaged timber, when available.

Total volume harvested from SBW historical areas in 2010/2011 harvest season was 3.59%. Since 2003/2004, 32.08% of the coniferous harvest has come from historical budworm areas.

Quantity and quality of timber and non-timber benefits, products, and services Indicator 5.1.1 produced in the DFA. Element(s) 5.1 Timber and Non-Timber Benefits Target Timber Benefits: Harvest the companies’ annual cut allocation in order to harvest the Quadrant volume consistent with the Cut Control Regulation, Policy, DFMP, Forest Management Agreement and Quota Certificate. Integrate operations with the needs of other timber users.

Non-timber Benefits: 100% of plans consider the needs of other stakeholder, and the strategies to integrate the companies’ operations with other users are implemented. Basis of Target - Mill production requirements - Cut control - Public Involvement Plan Acceptable Variance No variance is acceptable. Strategy(s) Forests represent not only a return on investment for the forest industry, but also a Description source of income and non-financial benefits for DFA-related workers, contractors, and others; stability and opportunities for communities; and revenue for local, provincial, and federal governments. Both timber and non-timber benefits are addressed through the public participation process and the implementation of SFM.

Stakeholders are notified of the companies’ plans and provided an opportunity for comment and sharing of ideas or concerns related to the proposed operations. The companies will make a reasonable effort to incorporate the needs of non-industrial stakeholders to mitigate impacts to areas of historical, recreational, unique ecological, aesthetic, or other land uses of significance. Means of Achieving Timber Benefits: The companies will endeavor to harvest the annual cut allocation each Objective & Target year, and incorporate the needs of other timber users into all forestry plans.

Non-timber Benefits: The companies will incorporate the needs of other stakeholders (non-timber values focused) into forestry plans through the implementation of the Public Involvement Plan (PIP)

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Forecast The companies will work with stakeholders in progressing towards sustainable forest management in the DFA. Monitoring & Timber Benefits: Measure the percent of volume harvested by the companies Measurement compared to the allocated harvest level, and the numbers of ways operations are integrated with those of other timber users.

Non-timber Benefits: Measure conformance with strategies for non-timber benefits identified in plans. Those strategies are designed to mitigate impacts to areas of historical, recreational, unique ecological, aesthetic, or other land uses of significance, and may include: - Business arrangements and wood supply agreements with other tenure holders and processing facilities. - Notifying trappers of the development of a plan, and holding a face-to-face meeting before harvesting starts - Accommodating requests to maintain trapper’s trails - Getting consent to use or cross other dispositions - Contacting Watt Mountain Wanderers Society (snowmobile club) about any planned operations in the Watt Mountain area. - Developing FMPs and operational plans in conjunction with PAG - Holding public Open House to communicate about the General Development Plan in May of each year - Holding meetings with interested First Nations - Protecting / managing cultural and heritage resources - Investing and volunteering in the community - Making donations - Attending tradeshows and science fairs Reporting Performance against this indicator will be reported annually in the SFMP Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. It incorporates previous Indicators #27 (Stakeholder Input - Non timber Values) and #31 Part A (Forest Management Plans That Incorporate the Needs of Other Stakeholders)

Generally stakeholders are notified of company plans and provided an opportunity for input. Communication records are housed in the communication tracker.

Indicator 5.2.1 Level of investment in initiatives that contribute to community stability Element(s) 5.2 Communities and Sustainability Targets Local opportunities: Local businesses were provided an opportunity to submit a bid on >80% of the contracts administered by the companies on the DFA.

Locally-based business and wood supply agreements: Adhere to existing contractual obligations and agreements and seek additional strategies to maximize benefits to other timber operators. Basis of Target Contracts, Business Agreements, Wood Supply Agreements Acceptable Variance No variance is acceptable. Strategy(s) As large employers in the area, the companies contribute significantly to the economy, Description employment, and business opportunities of the region. Positive business relationships with local and Aboriginal businesses, and cooperation with other tenure holders and processing facilities operating within and adjacent to the DFA, contribute to the success of Tolko and LCSM, those businesses, and the communities they are part of. Means of Achieving Adhere to agreements, employ locally, meet contractual agreements, and seek Objective & Target additional strategies to maximize benefits for the companies and other timber operators. Forecast The companies will continue to contribute to community stability through existing and additional agreements and partnerships

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Monitoring & Activities tracked and reported on may include: Measurement - Percentage of dollars spent locally on forest related activities, in proportion to total woodlands expenditures. - The % of contracts where local businesses were given an opportunity to provide a bid, - The number of Business and Wood Supply Agreements with local tenure holders and processing facilities. (New agreements or contracts achieved during the reporting period will be identified as such). - Opportunities for the companies to expand operations in the area. Reporting Performance against this indicator will be reported annually in the SFMP Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. It incorporates previous Indicators #28 (Business and Employment Opportunities Awarded Locally) and #29 (Business and Wood Supply Agreements with Local Tenure Holders and Wood-Processing Facilities)

Tolko Industries Ltd had business arrangements (log supply) with La Crete Sawmills Ltd. and Crestview Sawmills. There was limited opportunity in NW Alberta for expanding wood supply agreements due to curtailments in the forest industry.

Indicator 5.2.2 Level of investment in training and skills development Element(s) 5.2 Communities and Sustainability Target 100% of the companies’ Woodlands employees and contractors will have training as outlined in the Environmental Management System. Suppliers are to have EMS orientation training. Basis of Target - Environmental Management System, Training Matrix - Online EMS training site, www.highlevelems.com Acceptable Variance No variance is acceptable. All training is to be 100% complete based on tasks being conducted. (some time allowance is acceptable for new employees who need to schedule formal training with third parties) Strategy(s) Sustainable forest management provides training and awareness opportunities for Description company employees and contractors, as part of continually improving practices. The investment in training and skill development pays dividends through a safer and more environmentally conscious work environment. Means of Achieving Incidents are reviewed by management, and used to identify areas of improvement for Objective & Target which new safety and environmental goals are set. A training plan for employees, contractors, and suppliers is then developed, implemented and tracked. Some examples of what this training could include are: - incident investigation and root cause analysis - identifying rare species, - training for each logging phase, - the companies’ Environmental Policy’s and Forest Management Principles Forecast All staff and contractor employees will be trained. Monitoring & EMS module training is tracked on www.highlevelems.com for all employees (the Measurement companies and contractors). Contractors keep records for all training taken by their employees. All other company staff training records are stored on the company EMS site, http://ems.tolko.com. Management reviews of safety and EMS programs are carried out to ensure training activities have been implemented as planned. Reporting Report annually in the SFMP Performance Report on: - percent of employees, contractors and suppliers that have received the required training, and - any employment (student, internship) or sponsorship opportunities provided to those interested in forestry careers. Current Status of Indicator This is a new core indicator for CSA Z809-08. Baseline information will be reported in the first applicable annual SFMP Performance Report.

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Indicator 5.2.3 Level of direct and indirect employment Element(s) 5.2 Communities and Sustainability Target Relatively stable employment rates over time Basis of Target - Annual harvest levels - Mill production and targets Acceptable Variance +/- 20% Strategy(s) This indicator tracks local trends in employment levels that can be attributed to the Description companies’ operations in the DFA.

There is a direct relationship between direct and indirect employment, and annual harvest levels. Direct forest sector and non-forest sector employment levels are predicted using the most recent provincial level multipliers available, as derived from Statistics Canada.

In 2006 data acquired from NRCan (canadaforests.nrcan.gc.ca) the multiplier is approximately 4 direct and indirect jobs per 1,000 m3 of harvest. (Note: The correct multiplier to use is still being confirmed). Means of Achieving Adhering to harvesting the allowable annual cut (which can vary from year to year) Objective & Target provides employment in the surrounding communities. The direct and indirect employment numbers are proportioned based on the companies’ influence in the Defined Forest Area. Forecast Employment levels will vary with harvest levels, but remain relatively stable as the companies’ targets a steady wood supply to its mills. Monitoring & Level of direct and indirect employment is calculated each year by multiplying the Measurement actual harvest by the appropriate employment multiplier, and 5-year averages determined. Reporting Report 5 year average in annual SFMP Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. Baseline information will be reported in the first applicable annual SFMP Performance Report.

Indicator 5.2.4 Level of Aboriginal participation in the forest economy Element(s) 5.2 Communities and Sustainability Target Maintain and/or increase the number of working relationships with Aboriginals. Basis of Target - Aboriginal contractors and workers in the workforce - Statistics on Aboriginal contracts, wood supply agreements, workforce employment, and opportunities available. Acceptable Variance None. Strategy(s) This indicator looks specifically at Aboriginal participation in the forest economy, and Description the companies’ efforts to maintain or build further Aboriginal involvement. Means of Achieving The companies’ will work with willing Aboriginal businesses and communities to Objective & Target develop opportunities that are economically beneficial and satisfactory to all parties. Aboriginal employment in the contractor and staff workforce will be encouraged where economic opportunities exist, and communities will be kept informed about business and employment opportunities. Forecast Mutually beneficial economic relationships with local Aboriginal people will continue to build. Monitoring & Compile data annually on the proportion of the economic value of Aboriginal contracts, Measurement wood supply agreements, workforce employment (contractor and staff), and economic opportunities made available. Reporting Report these statistics annually, and track trends over time, in the SFMP Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. Baseline information will be reported in the first applicable annual SFMP Performance Report.

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Indicator 6.1.1 Evidence of a good understanding of Aboriginal rights and title Element(s) 6.1 Aboriginal and Treaty Rights Target 100% of Woodlands employees who communicate with Aboriginals receive training. Basis of Target - The companies Staff Training matrix and records - Update and direction from government contact Acceptable Variance No variance acceptable for either target. Strategy(s) The companies will follow Aboriginal Policy and Forest Management Principles when Description working with and communicating with Aboriginal Peoples. Means of Achieving Include training for employees on Aboriginal rights and titles in the Training Matrix Objective & Target and hold the training. Forecast The current legal requirements related to Aboriginal title and rights, and treaty rights, will be understood. Monitoring & Training on Aboriginal rights and title will be part of employee training plans and Measurement tracked.

Reporting Report the proportion of employees who have received training according the schedule outlined in the training matrix, in the annual SFMP Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. The Government of Alberta has published policies and guidelines for both First Nation and Metis Communities for Land and Natural Resource Management, which outlines the Government and Industry Roles and Responsibilities during consultation on forestry plans.

The Government of Alberta’s Policy on Consultation with First Nations on Land and Natural Resource Management (2013) and associated Guidelines (2014) The Government of Alberta’s Policy on Consultation with Metis Settlements on Land and Natural Resource Management (2015) with associated Guidelines (2016).

Evidence of best efforts to obtain acceptance of management plans based on Indicator 6.1.2 Aboriginal communities having a clear understanding of the plans. Element(s) 6.1 Aboriginal and Treaty Rights Target The companies will follow the Government of Alberta’s Guidelines on Consultation with First Nations on Land and Natural Resource Management (2014) during consultations with First Nations on the DFA. Basis of Target - Public Involvement Plan (PIP), including a strategy specific to the Aboriginal community. - Information on planned operations and Aboriginal communities. - Alberta’s First Nations Consultation Guidelines on Land Management and Resource Development. Acceptable Variance No variance is acceptable Strategy(s) Government of Alberta’s Guidelines on Consultation with First Nations on Land and Description Natural Resource Management (2014) Means of Achieving The companies will implement a Public Involvement Plan (PIP), including a strategy Objective & Target which is specific to the Aboriginal community. - All communities affiliated with the North Peace Tribal Council and Paddle Prairie Métis Settlement (PPMS) will be encouraged to participate in the High Level Forest Public Advisory Group (HLFPAG) to discuss the companies’ proposed forestry projects. - Those communities will be contacted about the DFMP and SFMP development, and affected communities will be contacted about annual operations. Forecast Open, respectful communication of forestry plans with Aboriginal people. Monitoring & Records of all contacts and communications (meetings, one-on-one discussions etc) will Measurement be kept (within the Consultation Tracker), compared to a list of communities identified, and the results summarized.

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Reporting Reported on annually in SFMP Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. It incorporates previous Indicators #30 (Aboriginal Consultation) implemented in 2003, and #31 part 2 (Public Comments – Company Response).

The Government of Alberta has recently published policies and guidelines for both First Nation and Metis Communities for Land and Natural Resource Management, which outlines the Governments and Industry Roles and Responsibilities. These documents replace the previous Version titled Alberta’s First Nations Consultation Guidelines on Land Management and Resource Development (2007).

The Government of Alberta’s Policy on Consultation with First Nations on Land and Natural Resource Management (2013) and associated Guidelines (2014) The Government of Alberta’s Policy on Consultation with Metis Settlements on Land and Natural Resource Management (2015) with associated Guidelines (2016)

Level of management and/or protection of areas where culturally important practices Indicator 6.1.3 and activities (hunting, fishing, gathering) occur Element(s) 6.1 Aboriginal and Treaty Rights Target 100% Compliance with plan commitments to manage and/or protect areas where known culturally important practices and activities occur as outlined in an approved Annual Operating Plan (AOP). Basis of Target - Plan commitments/strategies - Conformance, as documented in Annual Performance Reports - Historical Resources Overview and Pre-Impact Assessments Acceptable Variance No variance is acceptable Strategy(s) Identified areas of culturally important practices and activities will be managed and/or Description protected in compliance with the Historical Resources Act and in consideration of comments received during the SFMP and DFMP development processes, through the Public Involvement Plan, communication with Bands etc. Means of Achieving During plan development seek input into the identification and management and/or Objective & Target protection of areas where culturally important practices and activities occur. Incorporate management/protection strategies into plans, and implement the plans.

Record identified areas for incorporation into future planning as well, while recognizing the potential sensitivity of the information. Forecast All plan commitments are met related to managing and/or protecting areas where known culturally important practices and activities occur. Monitoring & Compare planned strategies for the management and/or protection of identified areas Measurement to what was actually done. Reporting Report conformance to plan commitments annually in the SFMP Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. It incorporates previous Indicator #25 Part 2 (Historical Resources Act - regarding respect for Aboriginal traditional values).

The Government of Alberta has published policies and guidelines for both First Nation and Metis Communities for Land and Natural Resource Management, which outlines the Governments and Industry Roles and Responsibilities.

The Government of Alberta’s Policy on Consultation with First Nations on Land and Natural Resource Management (2013) and associated Guidelines (2014) The Government of Alberta’s Policy on Consultation with Metis Settlements on Land and Natural Resource Management (2015) with associated Guidelines (2016)

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Evidence of understanding and use of Aboriginal knowledge through the engagement Indicator 6.2.1 of willing Aboriginal communities, using a process that identifies and manages culturally important resources and values Element(s) 6.2 Respect for Aboriginal Forest Values, Knowledge and Uses Target 100% of affected Aboriginal communities will be contacted for the purpose of Woodlands staff gaining an understanding and use of Aboriginal knowledge related to the companies’ forestry plans. Basis of Target - Public Involvement Plan (PIP), including strategies specific to the Aboriginal community - Plan commitments/strategies, and conformance to them, as documented in Annual Performance Reports

Also see Indicators 6.1.2 and 6.1.3 Acceptable Variance No variance is acceptable Strategy(s) The companies’ follow Aboriginal Policy. Description Means of Achieving Willing Aboriginal communities that may be affected by operations are consulted with Objective & Target during the development of forest management plans, encouraged to share their forest knowledge and identify important cultural resources. That knowledge is incorporated into forestry plans. Forecast Aboriginal knowledge of forests, including of culturally important resources and values, is incorporated into the management of forest lands. Monitoring & Track forest management plans and activities that specifically incorporate Aboriginal Measurement knowledge. This includes areas where culturally important practices and activities occur, as reported under Indicator 6.1.3, as well as any modification of forest management practices based on aboriginal knowledge. Reporting Report on the inclusion of Aboriginal knowledge annually in the SFMP Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. It is a refinement of previous Indicator #25 Part 2 (Historical Resources Act - regarding respect for Aboriginal traditional values) and previous Indicator #30 (Aboriginal Consultation), implemented in 2003.

The Government of Alberta has published policies and guidelines for both First Nation and Metis Communities for Land and Natural Resource Management, which outlines the Governments and Industry Roles and Responsibilities.

The Government of Alberta’s Policy on Consultation with First Nations on Land and Natural Resource Management (2013) and associated Guidelines (2014) The Government of Alberta’s Policy on Consultation with Metis Settlements on Land and Natural Resource Management (2015) with associated Guidelines (2016)

Evidence that the organization has cooperated with other forest-dependent Indicator 6.3.1 businesses, forest users and the local community to strengthen and diversify the local economy. Element(s) 6.3 Forest Community Well-being and Resilience Target The companies will explore positive local economic opportunities. Basis of Target - Business and Wood Supply Agreements with Local Tenure Holders and Wood- Processing Facilities - Philanthropic activities Acceptable Variance No variance. Strategy(s) The companies are major employers within the DFA and they understand there is a Description responsibility to support the local economy. The companies will be supportive of efforts to diversify the economies within the communities of the DFA. By respecting current business arrangements, legal framework and tenure agreements, the companies will be supportive of the establishment and success of other enterprises.

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Means of Achieving Items the companies may implement: Objective & Target - Support development that enriches the communities and improves the services for its employees, - Develop mutually beneficial business arrangements, including wood supply agreements, with other businesses. - Create business arrangements to improve financial performance of the both operations. - Consider opportunities to cooperate with other forest dependent businesses and forest users during annual forest planning and during operations. - During annual forest plan development and at Open Houses, consider input from other forest-dependent businesses and users that may be affected by the companies’ plans (trappers, recreational groups, etc.) in advance of forest operations. Coordinate the timing of activities and modify plans and activities, as appropriate to accommodate multiple uses. - Support the local community through mutually beneficial philanthropic activities (such as making in-kind or monetary donations, volunteering, participating in science fairs, etc.) Forecast Continued support for local communities, and mutually agreeable forestry plans. Monitoring & Track business arrangements, communications, and philanthropic activities annually. Measurement This information is found within contracts, communication details on corporate EMS site, and through the accounting department.

Cooperative activities reported on, several of which are also reported under other Indicators, could include: - Business related - Initiatives and partnerships with local businesses - Business arrangements and wood supply agreements with other tenure holders and processing facilities. - Trappers - Notifying trappers of the development of a plan, and holding a face-to-face meeting before harvesting starts - Accommodating requests to maintain trapper’s trails - Oil and Gas - Getting consent to use or cross other dispositions - General Public - Number of blocks or planned activities changed as a result of discussions (e.g. visually sensitive areas etc.) - Reviewing FMPs and operational plans in with HLFPAG - Holding public Open House to communicate about the General Development Plan is usually held in May of each year - In Communities - Investing and volunteering in the community - Making donations - Attending tradeshows and science fairs - Recreation - Contacting Watt Mountain Wanderers Society (snowmobile club) about any planned operations in the Watt Mountain area. - First Nations - Holding meetings with interested First Nations - Protecting / managing cultural and heritage resources Reporting Report on annually in SFMP Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. It incorporates previous Indicators #29 (Business and Wood Supply Agreements with Local Tenure Holders and Wood- Processing Facilities) and #31 Part A (Forest Management Plans That Incorporate the Needs of Other Stakeholders) -

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Evidence of cooperation with DFA-related workers and their unions to improve and Indicator 6.3.2 enhance safety standards, procedures, and outcomes in all DFA-related workplaces and affected communities. Element(s) 6.3 Forest Community Well-being and Resilience Target The companies and contractors will achieve a Certificate of Recognition for their safety programs. Basis of Target - Certificate of Recognition for Safety Programs - Partners for Injury Reduction (PIR) program Acceptable Variance No variance is acceptable. Strategy(s) Follow the companies’ safety policy Description Means of Achieving The companies’ will achieve their own separate Certificate of Recognition for Safety Objective & Target Programs, under the Partners for Injury Reduction (PIR) program that is a partnership of Alberta’s Ministry of Employment and Immigration.

Contractors are required to have their own health and safety program, and are required to participate in the Partners for Injury Prevention program as well. The companies do not manage safety programs of its contractors. Forecast Continued, strong focus on safety for employees, contractors, and the public. Monitoring & External audits are done on the companies’ separate health and safety program. Measurement Reporting Annual reporting will consist of the status of the companies’ COR, plus report on the status of CORs for contractors that worked for the companies during the reporting period. Current Status of Indicator This is a new core indicator for CSA Z809-08. Baseline information will be reported in the first applicable annual SFMP Performance Report.

Evidence that a worker safety program has been implemented, and periodically Indicator 6.3.3 reviewed, and improved. Element(s) 6.3 Forest Community Well-being and Resilience Target 100% of contractors working in the DFA have a Health and Safety program that has current Certificate of Recognition through the Partnerships in Injury Reduction program. Basis of Target - Contractor Health and Safety programs - Alberta Employment and Immigration incentive programs. Acceptable Variance No variance is acceptable Strategy(s) Follow the companies’ safety program. Description Means of Achieving Work on the DFA is done under contracts that require each Contractor to have a worker Objective & Target safety program be in place. Prior to a contract being issued the companies will ensure the Contractor has a current Certificate of Recognition in Partnerships in Injury Reduction. Forecast Increasing safety focus and performance in the contractor workforce. Monitoring & The companies’ are responsible for ensuring a current Certificate of Recognition is on Measurement file prior to all contracts being signed. Reporting Annual reporting in the SFMP Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. Baseline information will be reported in the first applicable annual SFMP Performance Report.

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Indicator 6.4.1 Level of participant satisfaction with the public participation process Element(s) 6.4 Fair and Effective Decision-Making Target 80% of responses to a satisfaction survey for participants are “3” or better. (on scale of 1-5)

Basis of Target Satisfaction survey Public Involvement Plan, including Public Advisory Group Acceptable Variance No variance is acceptable. Strategy(s) The ability of people to share information, discuss and solve problems, Description and set and meet objectives is key to achieving and maintaining meaningful participation. Many types of initiatives (e.g., two-way information exchanges, educational opportunities) can be used to help promote meaningful participation.

A mechanism such as a survey may be used to determine participant satisfaction with the public participation process, particularly when participants understand that consensus-based decision-making is used to incorporate all interests. Means of Achieving Provide a public participation survey to all active Advisory Group members and Objective & Target interested public (including Aboriginal people) who have shown notable interest in the companies’ SFM practices during the year. Forecast Active, engaged local public Monitoring & Survey responses will be coded as: Measurement 1 (poor) 2 3 (satisfactory) 4 5 (well done) Reporting Complete the survey annually at the end of the reporting period (eg., May). Summarize the results in the annual SFMP Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. Baseline information will be reported in the first applicable annual SFMP Performance Report.

Evidence of efforts to promote capacity development and meaningful participation in Indicator 6.4.2 general Element(s) 6.4 Fair and Effective Decision-Making Target Track the number of educational initiatives that contribute to informed public participation in the development of forestry plans.

Use the baseline information gathered to develop a more specific target for 2015, such as the number of events. Basis of Target - Public Involvement Plan - DFMP, GDP, and CSA SFM Plan development processes Acceptable Variance None Strategy(s) This indicator measures the number of educational initiatives where information about Description sustainable forest management is exchanged to facilitate meaningful public participation in forest management decisions. Means of Achieving Educational initiatives may include (but are not limited to) trade fairs, open houses, Objective & Target support for the Northern Lights Forest Education Society, making reports and plans available on a website, and a Public Advisory Group (PAG). At PAG meetings more in- depth information and expertise is provided by company foresters, government representatives, and experts brought in to address specific topics.

All comments from First Nations, stakeholders and public are responded to. This provides another two-way exchange of information and opportunity for explanations.

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Forecast Interested and engaged members of the public understand forestry and the related issues, and provide meaningful input into the development of the companies’ plans and projects. Monitoring & Track all educational initiatives participated in throughout the reporting year. Measurement Reporting Report on efforts the number of educational initiatives held in annually (timber year) in the SFMP Performance Report. Current Status of Indicator This is a new core indicator for CSA Z809-08. Baseline information will be reported in the first applicable annual SFMP Performance Report.

Evidence of efforts to promote capacity development and meaningful participation of Indicator 6.4.3 Aboriginal communities Element(s) 6.4 Fair and Effective Decision-Making Target Track the number of educational initiatives that contribute to informed participation by Aboriginal communities in the development of forestry plans Basis of Target - Public Involvement Plan - DFMP, GDP, and CSA SFM Plan development processes Acceptable Variance None Strategy(s) This indicator measures the number of educational initiatives where information about Description sustainable forest management is exchanged to facilitate meaningful Aboriginal participation in forest management decisions. Means of Achieving A variety of methods will be used to disseminate information to Aboriginal Objective & Target communities, depending on what is most effective for a particular group.

These initiatives provide opportunities for the Aboriginal community to better understand the basic requirements of the forest industry, and in turn help Tolko become better educated about regional Aboriginal issues and special interests – specifically, an understanding of traditional territories, cultural and spiritual values.

All comments from First Nations, stakeholders and public are responded to. This provides another two-way exchange of information and opportunity for explanations. Forecast Surrounding Aboriginal communities understand forestry and the related issues, and provide meaningful input into the development of the companies’ plans and projects. Monitoring & Track all educational initiatives participated in throughout the reporting year. Identify Measurement those done specifically for Aboriginal people. Reporting Report on efforts to promote capacity development and meaningful participation in the annual SFMP Performance Report. Current Status of Indicator New core indicator for CSA Z809-08. The Government of Alberta has published policies and guidelines for both First Nation and Metis Communities for Land and Natural Resource Management, which outlines the Governments and Industry Roles and Responsibilities.

The Government of Alberta’s Policy on Consultation with First Nations on Land and Natural Resource Management (2013) and associated Guidelines (2014) The Government of Alberta’s Policy on Consultation with Metis Settlements on Land and Natural Resource Management (2015) with associated Guidelines (2016)

Indicator 6.5.1 Number of people reached through educational outreach Element(s) 6.5 Information for Decision-Making Target Maintain or increase the number of people contacted through educational outreach

Basis of Target - Public Involvement Plan

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- DFMP, GDP, and CSA SFM Plan development processes - Consultation Tracker Acceptable Variance -10% Strategy(s) This indicator measures the number of people being reached with relevant information Description about forestry operations and sustainable forest management, to facilitate involvement from local residents and Aboriginal communities in forest management planning. This information can then be used over time to evaluate the effectiveness of various activities and improve the companies’ outreach program Means of Achieving Count, or provide a reasonable estimate of the number of people attending the Objective & Target educational initiatives being tracked under Indicators 6.4.2 and 6.4.3.

Use that information to evaluate the effectiveness of various initiatives over time, and improve the companies’ outreach program. Forecast An effective public outreach program Monitoring & Record the number of people contacted through outreach initiatives for a reporting Measurement year, in the Consultation Tracker that all HLLD staff have access to. Reporting Report the number of people reached annually, by initiative, in the SFMP Performance Report Current Status of Indicator This is a new core indicator for CSA Z809-08. It is a refinement of previous Indicator #32 (Number of Forestry Awareness Events) which was implemented in the 2010/2011 timber year, and measured events, rather than the number of people reached.

Indicator 6.5.2 Availability of summary information on issues of concern to the public Element(s) 6.5 Information for Decision-Making Target Relevant information on forestry issues of concern is readily available to the public Basis of Target - Website at www.highlevelwoodlands.com - News (clipping service) - PAG meetings Acceptable Variance None Strategy(s) Relevant information on issues of concern will be readily shared with the PAG, Description Aboriginal communities, and the general public. This will contribute to better understanding and exchanges of opinions that contribute to balanced, mutually acceptable plans and decisions. Means of Achieving Key reports and documents, including minutes from PAG meetings and links to Objective & Target information on other relevant websites, will be available to anyone with internet access at www.highlevelwoodlands.com

At PAG meetings more in-depth information and expertise will be provided by company foresters, government representatives, and experts brought in to address specific topics. Forecast Current information on the companies’ sustainable forest management program is available. Monitoring & Report on all initiatives throughout a year (timber year), in the Consultation Tracker Measurement that all HLLD staff have access to. Reporting Report annually in the SFMP Performance Report Current Status of Indicator This is a new core indicator for CSA Z809-08. It is a refinement of previous Indicator #31 Part 4 (Access to Relevant Information, Including the CSA Standard), implemented during the 2003-04 harvest season.

The companies’ public website at www.highlevelwoodlands.com was maintained. This site is used to post information such as operations, plans, public involvement activities, and Public Advisory Group meeting notes.

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References

Z809-08 Sustainable Forest Management: Requirements and Guidance. 2008. Canadian Standards Association.

Alberta Forest Management Planning Standard, Version 4.1. 2006 Alberta Environment and Sustainable Resource Development. .

Alberta Forest Management Planning Standard, Annex 1, Timber Supply Analysis and Growth and Yield. 2006. Alberta Environment and Sustainable Resource Development. Edmonton.

Alberta’s First Nations Consultation Guidelines on Land Management and Resource Development, 2007. Edmonton

The Government of Alberta’s Policy on Consultation with First Nations on Land and Natural Resource Management. 2013. Edmonton

The Government of Alberta’s Guidelines on Consultation with First Nations on Land and Natural Resource Management. 2014. Edmonton

The Government of Alberta’s Policy on Consultation with Metis Settlements on Land and Natural Resource Management. 2015. Edmonton

The Government of Alberta’s Guidelines on Consultation with Metis Settlements on Land and Natural Resource Management. 2016. Edmonton

Macyk, T., and Richens, T. 2002. Carbon Sequestration – Reforestation and Soil Stability. Alberta Research Council.

Watt Mountain Natural Area: Proposal. 1991. Alberta Lands & Forest Division. Unpublished.

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Glossary of Terms

Aboriginal – “Aboriginal“ in the context of this plan includes all Indian, Inuit, and Métis peoples of Canada (Constitution Act, 1982, Subsection 35(2)).

Adaptive Management – a learning approach to management that recognizes substantial uncertainties in managing forests and incorporates into decisions experience gained from the results of previous actions.

Alberta Vegetation Inventory (AVI) – a system for describing the quantity and quality of vegetation present. It involves the stratification and mapping of the vegetation to create digital data according to the AVI Standards Manual and associated volume tables.

Annual Allowable Cut (AAC) – The volume of wood which may be harvested, under management, on an annual basis.

Annual Operating Plans (AOP) – A plan prepared and submitted by the forest operator each year, which provides the authorization to harvest as required by the Timber Management Regulations.

Annual Performance Report - An annual performance report is used to record results from the previous year, in addition to tracking cumulative performance. These reports are to be reviewed within the Public Involvement Plan to ensure public accountability in forest management.

Auditor – a person qualified to undertake audits. Note: For SFM registration audits, auditors are qualified according to the requirements set out in Can-P-148 and CAN-P-1518.

Biodiversity (biological diversity) – “the variability among living organisms from all sources, including inter alia, terrestrial, marine, and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species between species and of ecosystems” (Environment Canada, Canadian Strategy).

Certificate of Registration (registration certificate) – the official document issues by a registrar to an organization upon successful completion of the registration process, including the registration audit.

Certificate/Registration – the result of a successful registration audit to this Standard, whereby the registrar issues a certificate of registration and adds the organization’s registration to a publicly available list maintained by the registrar.

Certifier (Registrar) – an independent third party that is accredited by the Standards Council of Canada as being competent to register organizations with respect to nationally and internationally recognized standards.

Compliance – the conduct or results of activities in accordance with legal requirements.

Compartment – The Forest Management Agreement (FMA) area of the DFA is divided into 12 Operating Areas for administrative purposes. These Operating areas are divided further into a number of Compartments, which are used in the development of Annual Operating Plans. These compartments, like most of the Operating Areas, are divided by natural or anthropogenic boundaries including watercourses, highways, and/or pipelines.

Component – an individual section of the SFM system, e.g., policy, planning, implementation and operation, checking and corrective action, or management review.

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Conformance – meeting non-legal requirements such as policies, work instructions, or standards (including this Standard).

Continual Improvement – the ongoing process of enhancing SFM performance, resulting from experience and the incorporation of new knowledge in line with the organization’s SFM policy and from the application of the SFM requirements.

Contractor Orientation Record (COR) – The COR is a record of what is completed as required in the Companies’ EMS and indicates the following:

- that the contractor(s) have been made aware of the Companies EMS and the related operational controls that apply to their work; - that the Contractor is made aware and understands the expectations of the Companies with respect to their responsibility to follow the Company procedures and will ensure that their employees’ also have training in the awareness of the Companies’ EMS and EMS procedures and understands the main commitments in the respective environmental policy; - ensures that their suppliers understand & conform to the EMS and any other certification commitments. - understands and agrees to conform to these requirements (the COR is completed as part of online EMS training on www.highlevelems.com and once the module and test is completed the COR is considered to be agreed to and accepted by the contractor)

Corrective Action – action to eliminate the cause of a detected nonconformity or other undesirable situation Note: There can be more than on cause for a non-conformance. Corrective action is taken to prevent recurrence, whereas preventive action is taken to prevent occurrence.

Covertype(s) – The stratification or grouping of areas into the categories of C (predominantly coniferous), CD (predominantly coniferous mixedwood), DC (predominantly deciduous mixedwood), and D (predominantly deciduous). Predominance is based on crown closure as per the overstory inventory label (Phase 3 inventory) or on an evaluation of all overstory labels (AVI inventory).

CSA Z764-96 – The CSA Z764-96 document was prepared by the CSA Technical Planning Committee on Public Involvement. It is only a Guide and is meant to help project proponents work out the opportunities and implications of getting the public involved in project decisions and design a process tailor-made for their situation.

Cut-Control Period – A five-year harvest period also known as a quadrant.

Deciduous Timber Allocation (DTA) – Deciduous quota allocation defined on an area or volume basis for up to a 20-Year term under the Forests Act (1).

Defined Forest Area (DFA) – a specified area of forest, including land and water (regardless of ownership or tenure) to which the requirements of this Standard apply. The DFA may or may not consist of one or more contiguous blocks or parcels.

Detailed Forest Management Plan (DFMP) - A long-term plan used to outline higher-level management objectives, sustainability and timber production assumptions for a Forest Management Agreement (FMA).

DFA-Related Worker – any individual employed by the organization to work for wages or a salary who does not have a significant or substantial share of the ownership in the employer’s organization and does not function as a manager of the organization.

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Ecosystem – a dynamic complex of plants, animals, and micro-organisms and their non-living environment, interacting as a functioning unit. Note: “The term ‘ecosystem’ can describe small-scale units, such as a drop of water as well as large-scale units, such as the biosphere” (Environment Canada, Canadian Biodiversity Strategy).

Element – a concept used to define the scope of each CCFM SFM criteria. Each CCFM SFM criterion contains several elements. The CSA SFM elements were derived from the national-scale elements developed by the CCFM for more specific local applications. The elements serve to elaborate and specify the scope of their associated criterion.

Environment – the surroundings in which an organization operates, including air, water, land, natural resources, flora, fauna, humans and the interrelations of these elements.

Equivalent Clearcut Area (ECA) – The ECA describes the “effective” area that a recovering historic disturbance currently represents in terms of its ecological effects.

Establishment Survey – an establishment survey is completed 4 to 8 years after harvesting in Conifer, Mixedwood and Deciduous cutblocks.

Forest Harvest Plan (FHP) - The primary components of a Forest Harvest Plan include a map and report that clearly illustrates and documents the harvest area boundaries, roads and watercourse crossings within an individual compartment. Forest Harvest Plans are developed for each compartment scheduled for harvest.

Fire Control Agreement - The Minister may, with a view to ensuring the prevention and control of forest and prairie fires, enter into an agreement, known as a fire control agreement, a. with any person carrying on an industrial or commercial operation over, under, on or adjacent to public land with respect to that operation; b. with the Government of Canada with respect to land in or adjacent to Alberta that belongs to that Government or that is under its administration and control; c. with the government of any province or territory or; d. with the council of a municipal district or urban municipality with respect to land within its boundaries or under its control.

Forest – an ecosystem dominated by trees and other woody vegetation growing more or less closely together its related flora and fauna, and the values attributed to it.

Forest Management Agreement (FMA) – A contract between the province of Alberta and the FMA holder whereby the province provides an area-based Crown timber supply. In return, the FMA holder commits to the following: - Managing the timber resource on a perpetual sustained yield basis, taking into consideration a broad range of forest values in determining forest management practices. - Meeting defined economic objectives, including capital investment and job creation, and seeking out new business opportunities that provide measurable economic benefits for both the province and FMA holder.

The FMA gives the FMA holder the right to access Crown fibre. In return, the FMA holder commits to forest management responsibilities, which may change from time to time.

Forest Management Unit (FMU) – An administrative unit of forest land designated by the Minister, as authorized under Section 14(1) of the Forests Act.

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General Development Plans (GDP) – Five-year plans. They provide a comprehensive description of the proposed harvest strategy and the associated renewal activities for all areas impacted by the plan.

Grazing License – A Grazing License is a grazing disposition with tenure of 10 years.

Ground Rules/Upper Hay Regional Operating Ground Rules (UHROGR)/FMA Operating Ground Rules (DMI)– Ground rules provide direction to industry and government for planning, implementing and monitoring forestry operations on Crown lands in Alberta. They are negotiated indicators of best forestry practices for a given FMU or FMA. They highlight important management principles, define operating and planning objectives, and present standards and guidelines for timber harvest, road development, reclamation, reforestation and integration of timber harvesting with other forest uses. They are authorized by the Forests Act and The Timber Management Regulation.

Harvest Sequence – The order of harvest operations in time and space.

Indicator – a variable that measures or describes the state or condition of a value.

ISO 14001 – an internationally recognized Environmental Management System standard published in 1996 by the International Organization for Standardization. The ISO 14001 Standard has been approved as a National Standard of Canada by the Standards Council of Canada.

Local – Local in the context that it is being used in this document includes residents of High Level, Rainbow Lake, Assumption, Meander River, Zama City, Fort Vermilion, John D’Or Prairie, Fox Lake, La Crete, North/South Tall Cree, Paddle Prairie, Rocky Lane, and/or residents of .

Mineral Surface Lease (MSL) - A government surface activity label for an oil and gas wellsite. A wellsite is usually the portion of the surface of land required for the conduct of drilling or completion operations of a well during the period next following the initial entry upon the land until the well is abandoned or completed. Generally square or rectangular in shape. (Saskatchewan Surface Right Acquisition and Compensation Act, 1968 (Stat. Sask. 1968, c.73)

Natural Range of Variability – The historic range in age class and/or seral stages over time as a result of natural disturbances.

Objective – a broad statement describing a desired future states or condition of a value.

Older Age Classes – Age classes which are considered >120 years of age.

Operational Controls – Operational controls are developed and implemented to ensure that potential for significant negative environmental impacts are minimized.

Performance Survey – a performance survey is completed 8 to 14 years after harvesting in C, CD, and DC cutblocks and 10 to 14 years after harvesting in conditionally stocked D cutblocks.

PPMS – Paddle Prairie Métis Settlement.

Preferred Forest Management Strategy (PFMS) – A set of compatible and integrated resource management strategies that has been selected to guide plan implementation.

Productive Land – Land primarily intended for growing, or currently supporting, forest. Includes land not now forested. Forest land capable of producing a merchantable stand within a reasonable length of time.

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Program – Programs are developed to ensure the Companies meet the objectives and targets as outlined in the Environmental Management System (EMS).

Protected Area – an area protected by legislation, regulation or land-use policy to control the level of human occupancy or activities. Note: “Categories or protected areas include protected landscapes, national parks, multiple use management areas, and nature wildlife reserves" (The State of Canada’s Forests 2001, 2002).

Public Involvement Plan – as part of the Detailed Forest Management Plan (DFMP), the Companies developed and implemented a comprehensive Public Involvement Plan (PIP). This PIP consisted of working groups, open houses, local government meetings, and newsletters. In addition, the Companies also utilized the local Public Advisory Group as part of the process.

Residual Material – Non-merchantable trees and shrubs (>2m), including understory, standing dead, broken, or decaying trees, trees identified as having dens or nests, or areas retained due to the presence of unique flora.

Riparian Zone – Those terrestrial areas where the vegetation complex and microclimate conditions are products of the combined presence and influence of perennial and/or intermittent water, associated high water tables, and soils that exhibit some wetness characteristics.

Salvageable – Coniferous area capable of yielding volume of sufficient quality and quantity to produce dimensional lumber while incorporating geographical location, other industrial operations, as well as utilization standards as agreed to by Alberta Environment and Sustainable Resource Development.

Stewardship Report – A report that accounts for all activities, undertaken as steward of a given article, resource, area or process, related to strategies to achieve stated stewardship goals. Measures of performance are included and linked to plans that express the desired goals.

Sustainable Forest Management (SFM) – management “to maintain and enhance the long-term health of forest ecosystems, while providing ecological, economic, social and cultural opportunities for the benefit of present and future generations” (The State of Canada’s Forests 2001/2002).

SFM Performance – the assessable results of SFM as measured by the level of achievement of the targets set for a DFA.

SFM Policy – a statement by the organization of intentions and principles in relation to SFM, which provides a framework for objectives, targets, practices and actions.

SFM System – the structure, responsibilities, practices, processes and time frames set by a registrar for implementing, maintaining, and improving SFM.

Tailgate Checklist – Company staff uses the Tailgate (or pre-work) Checklist to introduce the contractor to the management objectives for a particular project.

Target – a specific statement describing a desired future state or condition of an indicator. Targets should be clearly defined, time-limited and quantified.

Tenure – the terms under which a forest manager or owner possesses the rights and assumes the responsibilities, to use, harvest, or manage one or more forest resources in a specified forest area for a specified period of time.

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Note: private ownership of forestland is the strongest form of tenure, as the rights and obligations rest solely with the forest owner. Forest tenures of public land in Canada fall into two main categories: area- based and volume-based. Area-based tenures not only confer timber-harvest rights out also usually oblige the tenure holder to assume forest management responsibilities. Volume-based tenures normally give the holder the right to harvest specific volumes of timber in areas specified by the landowner or manager but can also oblige holders to assume forest management responsibilities.

Tenure Management Services Agreement – A legal agreement between Tolko Industries Ltd, High Level Lumber Division and La Crete Sawmills Ltd that defines the business relationship & responsibilities between the companies on FMA0200040 & CTQF010001 and with respect to any purchase wood.

Value – a DFA characteristic, component, or quality considered by an interested party to be important in relation to a CSA SFM element or other locally identified element.

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APPENDIX A: Summary of Indicators

Previous (2003) CSA SFM Elements # Current (2008) SFMP Indicator SFMP Indicator CCFM Criterion (Commitment#) (Z809-08) a variable that measures the state or condition of a DFA-specific value and for which one or more targets are set 1.1) Ecosystem Diversity - Conserve ecosystem 1.1.1 Ecosystem area by type NEW diversity at the stand and landscape levels by 1.1.2 Forest area by type or species composition 2 - Cover Types maintaining the variety of communities and 1.1.3 Forest area by seral stage or age class 4 - Age Class Distribution ecosystems that naturally occur in the DFA. 1.1.4 Degree of within-stand structural retention 6 – Vertical & Horizontal Stand Structure Degree of habitat protection for selected focal species, 8 – Wildlife Zones 1.2.1 1.2) Species Diversity - Conserve species diversity by including species at risk ensuring that habitats for the native species found in Degree of suitable habitat in the long term for selected 1- Spatial Harvest Sequence 1.2.2 the DFA are maintained through time, including focal species, including species at risk 5 – (1 & 2) – Habitat Availability habitats for known occurrences of species at risk. NEW 1.2.3 Proportion of regeneration comprised of native species 1.) Biological Diversity - Conserve 1.3.1 The area (ha) planted with seedlings from orchard stock 9 – Orchard Stock 1.3) Genetic Diversity - Conserve genetic diversity by biological diversity by maintaining (Local Indicator) maintaining the variation of genes within species and integrity, function, and diversity of 1.3.2 Regeneration consistent with provincial regulations and 10 – Compliance with Seed Zones ensuring that reforestation programs are free of living organisms and the standards for seed supplies and seed zones (Local genetically modified organisms. complexes of which they are part. Indicator) 1.4) Protected Areas and Sites of Special Biological 3 – Areas of Ecological Significance Significance and cultural significance - Respect Proportion of identified sites with implemented 11- Areas of Biological Significance 1.4.1 protected areas identified through government management strategies. (FMA or site Level) 12- Watt Mountain Natural Area processes. Co-operate in broader landscape 26 – Areas Removed to Incorporate Aesthetics management related to protected areas and sites of 25- Historical Resources Act special biological and cultural significance. Identify sites of special geological, biological, or cultural Protection of identified sacred and culturally important 1.4.2 significance within the DFA and implement sites. (FMA or Site Level) management strategies appropriate to their long-term maintenance. 14- Salvage from natural disturbance 2.1) Forest Ecosystem Resilience - Conserve 21- Reforestation Activities ecosystem resilience by maintaining both ecosystems 2.1.1 Reforestation success. 2.) Ecosystem Condition and 22 - Area identified as being Sufficiently Stocked processes and ecosystem conditions. Productivity - Conserve forest ecosystem condition and 2.2) Forest Ecosystem Productivity - Conserve forest 23- Decrease in Non-forested Area 2.2.1 Additions and deletions to the forest area. (by cause) productivity by maintaining the ecosystem productivity and productive capacity by health, vitality and rates of maintaining ecosystem conditions that are capable of 24- AAC Harvested During 5-year Cut Control biological production. supporting naturally occurring species. Reforest Proportion of the calculated long-term sustainable 2.2.2 Period promptly and use tree species ecologically suited to harvest level that is actually harvested the site.

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Previous (2003) CCFM Criterion CSA SFM Elements # Current (2008) SFMP Indicator SFMP Indicator (Z809-08) (Commitment#) 15- Road Disturbance 3.1.1 Level of soil disturbance 16- Rutting Disturbance 3.1) Soil Quality and Quantity - Conserve soil 7-Coarse Wood Debris resources by maintaining soil quality and quantity. 3.1.2 Level of downed woody debris 3.1.3 Changes in soil productivity (Local Indicator) 17-Soil Productivity 3.) Soil and Water - Conserve soil and water resources by 1 – Spatial Harvest Sequence Proportion of watershed or water management areas maintaining their quantity and 3.2.1 18- Water Resources – Adherence to Spatial with recent stand-replacing disturbance quality in forest ecosystems. Harvest Sequence 3.2) Water Quality and Quantity - Conserve water 3.2.2 Satisfactory management of riparian areas. (Local 19 -Buffer Zone Compliance resources by maintaining water quality and quantity. Indicator) 3.2.3 Satisfactory installation & removal of watercourse 20- Watercourse Crossings crossings. (Local Indicator) 4.1.1 Net carbon uptake/balance NEW 4.1) Carbon Uptake and Storage - Maintain the 4.1.2 Annual harvest (m3) from areas identified as being 13- Volume from Budworm Areas 4.) Role in Global Ecological processes that take carbon from the atmosphere and infested by spruce budworm or other insects or Cycles - Maintain forest conditions store it in forest ecosystems. disease. (Local Indicator) and management activities that contribute to the health of global 2.1.1 Reforestation success ecological cycles. 4.2) Forest Land Conversion - Protect forestlands from deforestation or conversion to non-forests, 2.2.1 Additions and deletions to the forest area where ecologically appropriate 5.1) Timber and Non-Timber Benefits - Manage the 27- Stakeholder input – non-timber values forest sustainably to produce an acceptable and 31 (1)- Stakeholder input – other timber uses Quantity and quality of timber and non-timber benefits, feasible mix of timber and non-timber benefits. 5.1.1 products, and services produced in the DFA. Evaluate timber and non-timber forest products and 5.) Economic and Social Benefits - forest-based services. Level of investment in initiatives that contribute to 28- Employment Opportunities Sustain flows of forest benefits for 5.2.1 current and future generations by community sustainability 29- Business and Wood Supply Agreements providing multiple goods and 5.2) Communities and Sustainability - Contribute to NEW services. the sustainability of communities by providing diverse 5.2.2 Level of investment in training and skills development opportunities to derive benefits from forests and by supporting local community economies. 5.2.3 Level of direct and indirect employment NEW NEW 5.2.4 Level of Aboriginal participation in the forest economy

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Previous (2003) CCFM Criterion CSA SFM Elements # Current (2008) SFMP Indicator SFMP Indicator (Z809-08) (Commitment#) Evidence of a good understanding of the nature of NEW 6.1.1 Aboriginal title and rights 30- Aboriginal Consultation 6.1) Aboriginal and Treaty Rights - Recognize and Evidence of best efforts to obtain acceptance of respect Aboriginal title and rights. Understand and 6.1.2 management plans based on Aboriginal communities 31(2) - Public comments – company response comply with current legal requirements related to having a clear understanding of the plans Aboriginal title and rights, and treaty rights. Level of management and/or protection of areas where 25(2) – Compliance with Historical Resources Act 6.1.3 culturally important practices and activities (hunting, fishing, gathering) occur. 6.2) Respect for Aboriginal Forest Values, Evidence of understanding and use of Aboriginal 25(2) -Compliance with Historical Resources Act Knowledge, and Uses - Respect traditional Aboriginal knowledge through the engagement of willing 30 -Aboriginal Consultation 6.2.1 forest values, knowledge, and uses identified through Aboriginal communities, using a process that identified the Aboriginal input process. and manages culturally important resources and values. Evidence that the organization has co-operated with 29- Business and Wood Supply Agreements other forest dependent businesses, forest users, and 31 (1) - Forest Management Plans that Incorporate 6.3.1 the local community to strengthen and diversify the the Needs of Other Stakeholders 6.) Society's Responsibility - local economy 6.3) Forest Community well-being and resilience - Society's responsibility for Evidence of co-operation with DFA related workers and NEW Encourage, co-operate with, or help to provide sustainable forest management their unions to improve and enhance safety standards, opportunities for economic diversity within the 6.3.2 requires that fair, equitable and procedures, and outcomes in all DFA related community. effective forest management workplaces and affected communities. decisions are made. Evidence that a worker safety programs has been NEW 6.3.3 implemented and is periodically reviewed and improved. Level of participant satisfaction with the public NEW 6.4.1 participation process 6.4) Fair and Effective Decision-Making - NEW Demonstrate that the SFM public participation Evidence of efforts to promote capacity development 6.4.2 process is designed and functioning to the satisfaction and meaningful participation in general. of the participants, and that there is general public Evidence of efforts to promote capacity development NEW awareness of the process and its progress. 6.4.3 and meaningful participation for aboriginal communities. 6.5) Information for Decision-Making - Provide Number of people reached through educational 32-Number of Forestry Awareness Events 6.5.1 relevant information and education opportunities to outreach interested parties to support their involvement in the 31(4)-Access to Information public participation process, and increase knowledge Availability of summary information on issues of 6.5.2 of ecosystem and human interactions with forest concern to the public. ecosystems.

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APPENDIX B: Linkage – SFM Indicators and Provincial Planning Requirements PLANNING REQUIREMENTS SFM INDICATORS Detailed General Forest Annual Annual Operating CPA/UWR Operational Forest Development Harvest Operating Reforestation Ground Plan Controls Mgmt Plan Plan Plan Plan Program Rules 1.1.1 Ecosystem Area ♦ 1.1.2 Forest area by type ♦ ♦ ♦ ♦ 1.1.3 Forest area by seral stage ♦ 1.1.4 Within-stand structural ♦ ♦ ♦ ♦ retention 1.2.1 Habitat protection ♦ ♦ ♦ ♦ 1.2.2 Suitable habitat available ♦ ♦ ♦ 1.2.2 Suitable habitat available ♦ ♦ 1.2.3 Regeneration of Native ♦ ♦ ♦ Species 1.3.1 Seedlings from orchard stock ♦ 1.3.2 Seed supplies and seed ♦ zones 1.4.1 Special sites – management ♦ ♦ strategies 1.4.2 Sacred, culturally important ♦ ♦ ♦ ♦ sites - protection 2.1.1 Reforestation success ♦ ♦ ♦ ♦ 2.2.1 Forest area – additions, ♦ ♦ deletions 2.2.2 Sustainable harvest actually ♦ ♦ harvested 3.1.1 Soil disturbance ♦ ♦ ♦ ♦ 3.1.2 Coarse woody debris ♦ ♦ ♦ 3.1.3 Changes in Soil Productivity ♦ 3.2.1 Watershed – stand replacing ♦ ♦ ♦ disturbance 3.2.2 Riparian areas - ♦ ♦ ♦ ♦ management 3.2.3 Watercourse crossings – ♦ ♦ ♦ ♦ ♦ installation etc. 4.1.1 Net Carbon Uptake ♦ 4.1.2 Harvest from budworm ♦ ♦ ♦ areas etc. areas 4.2 Uses 2.2.1 – Forest area ♦ ♦ additions/deletions 5.1.1 Timber and non-timber ♦ ♦ ♦ ♦ ♦ benefits 5.2.1 Community stability ♦ 5.2.2 Training and skills 5.2.3 Direct & indirect ♦ ♦ employment 5.2.4 Aboriginal – forest economy ♦ 6.1.1 Aboriginal – rights and title ♦ 6.1.2 Aboriginal acceptance of ♦ ♦ ♦ ♦ ♦ ♦ management plans 6.1.3 Culturally important ♦ ♦ ♦ ♦ activities - management

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PLANNING REQUIREMENTS SFM INDICATORS Detailed General Forest Annual Annual Operating CPA/UWR Operational Forest Development Harvest Operating Reforestation Ground Plan Controls Mgmt Plan Plan Plan Plan Program Rules 6.2.1 Aboriginal knowledge of ♦ culturally important resources 6.3.1 Cooperation – diversified ♦ ♦ ♦ ♦ economy 6.3.2 Safety 6.3.3 Safety improvement 6.4.1 Satisfaction – public process 6.4.2 Capacity Development – ♦ ♦ ♦ ♦ meaningful involvement 6.4.3 Capacity Development – ♦ ♦ ♦ ♦ meaningful involvement, Aboriginal 6.5.1 Number of people reached – ♦ educational outreach 6.5.2 Availability of summary ♦ information

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