REFORESTATION Reforestation Statistics (by Fiscal Year) Public Involvement and Contact Information………

Canfor welcomes questions and comments from All blocks Canfor harvests must meet legal standards Grande Grande Hines Hines to ensure areas are successfully reforested. Prairie Prairie Creek Creek the public regarding its operations. Canfor can 2003 2004 2003 2004

Coniferous Trees be contacted at the numbers listed at the 100% of Canfor blocks are reforested. Planted 5,197,807 5,200,205 2,336,206 2,595,994 bottom of this page. Coniferous Area

Planted (ha) 3,658 2,874 1,380 2,695 Canfor maintains diversity by replanting blocks with Canfor operating plans are available for viewing

combinations of the species that were originally on Coniferous Area Site Prepped (ha) 768 548 356 382 and comments at annual public forestry open the landscape. Successfully houses. Supervisors are available to answer Reforested (%) 90 78 93 95 Area Stand Tended questions and to listen to input from the public. – Mechanical (ha) 2,072 1,676 0 105 Area Stand Tended For the Grande Prairie FMA area, open houses Annual Annual – Ground Based 543 619 362 161 are held in Grande Prairie, Valleyview and Herbicide (ha) Area Stand Tended Grande Cache. For the Hines Creek quota area, – Aerial Herbicide 2,917 1,181 1,104 610 open houses are held with Daishowa-Marubeni (ha) International (DMI) in Hines Creek and Worsley. PPuubblliicc Typically, the open houses occur in the fall. CERTIFICATION Please watch the papers for details. Canfor is committed to sustainable forest Grande Prairie also has a Forest Management management. Canfor has sought and achieved Advisory Committee (FMAC) consisting of RReeppoorrtt certification under a variety of respected interested stakeholders and public. The group is standards including ForestCare, International instrumental in providing input into Canfor’s Organization for Standardization (ISO 14001) and Detailed Forest Management Plan (DFMP), and the Canadian Standards Association (CSA Z809- Seedling CSA Sustainable Forest Management Plan Reforested Block 96). See Quick Facts box. (SFMP). Canfor would like to thank the FMAC Post harvest treatments are often required to aid in Quick Facts Box for all of its time and hard work provided over Both Grande Prairie and successful reforestation. This is very important in 1997 –GP and HC are the years. The public is welcome to attend and Hines Creek Environmental certified to the sites with high amounts of competing vegetation or observe the FMAC meetings, call the number Management Systems are ForestCare standard wet sites. The tending enables the seedlings to below for more details. certified to the ForestCare 1999 - (November) survive the competition or wet conditions. Canfor Alberta Environmental and ISO 14001 standards. uses mechanical site preparation (e.g. mounding, Management System All Canfor plans and certification reports are ripping and mulching), mechanical thinning/weeding Additionally, Grande Prairie (EMS) is certified to the available for viewing in either of the offices ISO 14001 standard (e.g. brushsawing), aerial herbicide and ground is certified to the CSA listed below. The ones specific to the Grande 2000 - (June) GP based herbicide (e.g. backpack) to treat blocks and Z809-96 standard; only Prairie FMA area are also available for viewing at Sustainable Forest area based tenures are able Management Plan local libraries (Grande Prairie, DeBolt, aid in prompt effective reforestation. to be certified under this (SFMP) is certified to Valleyview, Spirit River and Grande Cache). National CSA Z809-96 standard. standard Most plans and reports (except operating plans)

can be viewed on Canfor’s Website To become certified to the 2002 - (November) Alberta is re-certified to www.canfor.com. various standards, Canfor the ISO 14001 standard

completed and must GP is re-certified to the CSA Z809-96 standard, continue to complete and HC is re-certified to Contact Information independent third party the ForestCare standard

Registration Audits. In 2003 - (August) GP is Grande Prairie Operations Hines Creek Operations

addition to the Registration re-certified to the Postal Bag 100 - 9401-108 Street Box 150 ForestCare standard Grande Prairie, Alberta Hines Creek , Alberta Audits audits, Canfor also T8V 3A3 T0H 2A0

completes yearly independent third party Woodlands Administration Woodlands Administration 8 Year Old Spruce Stand 8 Year Old Spruce Stand Surveillance Audits and yearly Internal Audits to 780-538-7736 780-494-4000 Not Tended Tended Mill Inquiries Mill Inquiries Alberta Operations promote continual improvement. 780-538-7756 780-494-4003 Alberta Operations The success of reforestation is monitored by Advisory Committee Inquiries 780-538-7793 April 2005 surveying the blocks after planting in accordance with Certification Reports provided by the independent

the Alberta Regeneration Survey Manual. Surveys third party auditors (KPMG) are available for www.canfor.com Reporting Period:

include the Establishment Survey which is completed public review. In addition, a detailed Annual st th

between 4-8 years after harvest and the Performance Performance Monitoring Report is produced to Jan. 1 , 2004 – April 30 , 2005

Survey which must be completed between 8-14 years document Canfor’s progress towards achievement

after harvest. The survey results must be reported to of the CSA objectives as stated in its Sustainable the Alberta Government. Forest Management Plan (SFMP).

OVERVIEW Tolko Forest Industries Ltd. has a Deciduous Timber Wood Sources (by Fiscal Year) Harvesting Statistics from FMA/Quota Area (by Timber Allocation (DTA) and Ainsworth Lumber Ltd. has a Year) This report provides a general overview of Canadian Grande Grande Hines Hines Grande Grande Hines Hines Letter of Agreement with the Province reserving a Prairie Prairie Creek Creek Prairie Prairie Creek Creek Forest Products Ltd. (Canfor) activities within Alberta. 2003 2004 2003 2004 st DTA within Canfor’s FMA area. This gives these 2003 2004 2003 2004 The reporting period is from January 1 , 2004 to April Mill requirement 787,746 878,267 366,781 353,451 Coniferous Area th companies the right to harvest the deciduous 3 30 , 2005. FMA or Quota (m ) 568,950 589,926 326,733 333,490 Harvested (ha) 2,706.0 2,963.9 1,191.8 1,375.7 (Aspen, Poplar and Birch). DTAs are also long term Crown Purchase Pure Deciduous Area 3 agreements between the Province of Alberta and (m ) 269,059 150,632 42,351 10,387 Harvested (ha) 0.9 - N/A N/A Canfor Alberta Operations is comprised of 2 operating Private Purchase Coniferous Volume 3 areas; Grande Prairie and Hines Creek. the forest company and are usually volume based. (m3) 9,731 30,120 3,220 21,091 Harvested (m ) 613,573 665,225 327,334 355,469 Conifer Incidental Incidental Deciduous A DTA holder is typically responsible for 3 3 (m ) 973 - 10,183 14,654 Volume Harvested (m ) 118,950 178,122 157,160 45,512 In Grande Prairie a dimension sawmill and fingerjoint 3 reforestation. Salvage Wood (m ) 11,726 17,972 1,635 5,003 Pure Deciduous Volume plant are located within the city limits. The sawmill Harvested (m3) 280 - N/A N/A Total wood Incidental Coniferous 3 produces roughly 238 million board feet of Hines Creek operates under the Coniferous Timber delivered to Mill 860,439 788,650 384,122 384,625 Volume Harvested (m ) 973 512 43,415 32,432 (m3) Coniferous Salvage Not Not dimensional lumber per year and the fingerjoint plant Quota (Quota) tenure system, which is very similar 3 Volume (m ) reported 18,532 Reported 14,565 produces roughly 9 million board feet of fingerjointed to a Deciduous Timber Allocation except it is for HARVESTING PLANNING AND lumber per year. In total Grande Prairie employs 216 coniferous timber (Spruce, Pine and Fir). It also is LOG HAUL employees. Also at the Grande Prairie Mill site is the a long term agreement between the Province of OPERATIONS Both Grande Prairie and Hines Creek utilize public and Canadian Gas and Electric EcoPower Centre that uses Alberta and the forest company and is volume All planning and harvesting operations conducted industrial road systems to deliver the required volume wood waste to produce electricity for the mills and based. The majority of the Hines Creek quota is by Canfor follow the applicable Acts, Regulations, to the respective mills. steam to the kilns to dry the lumber. The excess embedded within Daishowa-Marubeni International and Policies for Alberta.

electricity is also being sold to other clients including Ltd.’s (DMI) FMA area. Quota holders are

the City of Grande Prairie. responsible for reforestation, but there is not a landbase area associated with the volume cut; Canfor also operates a stud mill approximately 8 km therefore there will be reporting differences east of Hines Creek. It produces roughly 84 million between Grande Prairie and Hines Creek. board feet of studs and employs 107 employees. In

late 2004 Canfor made the extremely difficult decision ANNUAL ALLOWABLE CUT to close this mill. The Company has insufficient timber The volume of timber that can be harvested each supply to sustain both the Hines Creek and Grande year from the FMA/Quota is called the Annual Prairie mill requirements due to reductions in the Allowable Cut (AAC) (Table 2). The AAC is based Annual Allowable Cut’s (AAC’s) (see Annual Allowable st th on a timber year (May 1 - April 30 ) Cut section for definition) of both operating areas. View of Harvested Blocks Log Truck

Reductions reflect commitments made to manage AAC Information (by Timber Year) Log Haul Statistics (by Timber Year) other non-timber forest values (wildlife, recreation, Grande Prairie Hines Creek A Forest Management Agreement (FMA) requires etc.) The Hines Creek stud mill is scheduled for (FMA ) (Quota) th that a Detailed Forest Management Plan (DFMP) Grande Grande Hines Hines closure June 30 , 2005. Approved Coniferous 3 Prairie Prairie Creek Creek AAC (m ) 630,400 212, 381 be prepared. This plan is a higher level or 2003 2004 2003 2004

Approved Deciduous Average Log Haul – Public The Alberta Government allocates timber through the 3 - “strategic” plan that describes resource AAC (m ) 451,726 Roads (km) 170 160 65 50 tenure system, which includes Forest Management management philosophies, goals, objectives, Average Log Haul – Industrial Agreements, Coniferous Timber Quotas, Deciduous implementation strategies and performance Roads (km) 140 100 85 70 WOOD SOURCE/MILL REQUIREMENTS Number of Loads Hauled on Public Timber Allocations, Commercial Timber Permits, monitoring. Grande Prairie has an approved Roads 3,377 7,691 217 1,488 Deciduous Timber Permits and Local Timber Permits. In addition to the Annual Allowable Cut (AAC) DFMP. A quota does not require a DFMP. If the Number of Loads Hauled on Industrial Roads 7,636 6,020 6,401 4,546 from the FMA or Quota, Canfor can obtain volume quota is embedded in an FMA, the quota holder is Grande Prairie operates under Forest Management from other sources if needed. The other sources expected to follow the FMA holders DFMP. If the Agreement (FMA) 9900037. An FMA is a long-term, that are available are: purchase wood, incidental quota is not embedded in an FMA, then the quota ROAD BUILDING negotiated and legislated agreement between the wood, salvage wood and agreements. holder is required to follow the Government Whenever possible, Canfor shares access into Province of Alberta and a forest company to establish, • Purchase wood: is timber that is purchased by Forest Management Plan (FMP). operating areas with other users, and utilizes existing grow and harvest timber on a perpetual, sustained- Canfor from either the Crown or private openings like seismic lines as much as possible. yield basis on a defined land area. An FMA holder is The next level of plans that are required from timber owners • Temporary roads: are those built to access blocks required to conduct forest management both FMA and Quota holders are the 5 year • Incidental wood: is the incidental conifer that but are reclaimed and reforested after one or two responsibilities such as forest management planning General Development Plan (GDP) and Annual occurs in deciduous blocks seasons of use and reforestation. In the FMA, Canfor has the rights Operating Plan (AOP). These plans are prepared • Salvage wood: is timber that is obtained from • Permanent roads: are built for longer periods (10- to the coniferous (Spruce, Pine and Fir) timber within in accordance with the Forest Management Plan other sectors (e.g. seismic, power lines, 20 years) and contribute to landbase loss the FMA area. for the area. All plans are available for public pipelines etc.) viewing. Please refer to the back page for more • Agreements: are made with other forest Road Building Statistics (by Timber Year) Grande Prairie Landbase Information details. companies to facilitate wood trades etc. Grande Prairie FMA Area Grande Grande Hines Hines Prairie Prairie Creek Creek Total Landbase (ha) 649,160 The volumes obtained from purchase, incidental, 2003 2004 2003 2004 Productive Landbase Amount of Temporary 474,193 salvage and agreements vary from year to year (Coniferous & Deciduous) (ha) Road Built (km) 231 231 37 25 depending on mill requirements and availability. Amount of Permanent Road Built (km) 9 0.6 0 0