FILE: 0360-20/BVFCEDG #11 TOWN OF SMITHERS

NOTES OF THE BULKLEY VALLEY COMMUNITY FOREST MEETING HELD IN THE COUNCIL CHAMBERS, TOWN OFFICE, 1027 ALDOUS STREET, ON WEDNESDAY, SEPTEMBER 7, 2004, AT 10:00 A.M.

Group Members Present: Jim Davidson, Mayor Steve Willis, BCTS, Smithers Sharon Robertson, CFDC Nadina Richard Norton, NEWPRO Dean Daly, Lynx Forest Management, Smithers David Walgren, PIR, Smithers Dennis MacKay, MLA BV-Stikine, Smithers Gord Gunson, PIR, Smithers Minister Roger Harris, MOF, Terrace Mark Adamson, Bulkley Woodlot Assoc., Smithers Kim Groot, MLA Office, Terrace Barry Smith, MOF, Smithers Janice Girling, Councillor, Village of Rick Braam, MOF, Smithers Susan Szufnarowicz, Councillor, Village of Telkwa Katherine McIndoe, NWCC, Smithers Ross Morris, Hereditary Chief Moricetown Dave Weaver, NWCC, Smithers Darlene Glaim, Office of the Wet'suwet'en Theo Huisman, T.O.C., Smithers David Eaglestone, Consultant, Office of the Doug Brook, Telkwa Wet'suwet'en Bob Storey, Smithers Debbie Pierre, Office of the Wet'suwet'en Doug Hobenshield, Smithers. Andrew George Jr., Office of the Wet'suwet'en Robert E. Sebastian, Office of the Wet'suwet'en Staff Present: John Bakker, Smithers and District Chamber of Town of Smithers: Commerce. Wallace Mah, Chief Administrative Officer James Warren, Corporate Administrative Assistant Penny Goodacre, Recording Secretary.

1. CALL TO ORDER

S. Robertson, CFDC Nadina, called the meeting to order (10:10 a.m.).

2. WELCOME

Hereditary Chief R. Morris thanked everyone for attending.

Mayor Davidson, Town of Smithers, thanked everyone for coming out to the meeting. He stated that the forest base is our economy and how we make our living. There are only two forestry companies remaining in the . It is time for our communities to have input in what is happening with the forest.

A. George Jr., Office of the Wet’suwet’en, thanked the Group for the invitation to be part of the Community Forest. He stated that the Office of the Wet’suwet’en has experience in running a community forest, as they have been involved with the community forest in since its inception.

NOTES OF THE BULKLEY VALLEY COMMUNITY FOREST MEETING HELD TUESDAY, SEPTEMBER 7, 2004. Page 2

D. Pierre, Office of the Wet’suwet’en, stated the Office of the Wet’suwet’en fully supports the idea of a community forest and believes it will be a great opportunity to build strong community relationships. She stated the Office of the Wet’suwet’en brings a lot of expertise to the table.

Introductions were made around the room.

3. REVIEW OF AGENDA

S. Robertson reviewed the agenda.

4. COMMUNITY FOREST PRESENTATION

S. Robertson presented the “Community Forest Initiative in the Bulkley Valley” power point presentation.

Background:

In 1998, a community economic development strategy was completed for the Town of Smithers, Village of Telkwa, and the surrounding Bulkley Valley within the Bulkley Timber Supply Area.

In January 2001, the Town of Smithers Mayor and Council formed the Bulkley Valley Forest Community Economic Development Group with local stakeholders as a result of the Skeena Cellulose Inc. crisis.

In 2003, the group applied for the Softwood Industry Community Economic Adjustment Initiative to develop a community forest business plan but the application was denied. Western Economic Diversification provided a seed money grant for D. Daly to investigate existing community forest plans and five different volume scenarios.

The Town of Smithers, Village of Telkwa, Office of the Wet’suwet’en, NEWPRO, and Pacific Inland Resources have formed a partnership agreement to obtain and manage a community forest with an allowable annual cut of 100,000m3.

Purpose:

To manage a profitable forest tenure business that generates revenue for community benefit through local management of forest resources and sales of timber to local manufacturers, emphasizing contract employment of local workers.

Objectives:

To build a long term working relationship among the partners in the agreement. To make a positive contribution to the long term economic stability of the community. To expand the employment base in the Valley and increase economic security and community input over the management of the forests.

S. Robertson stated that all parties bring great assets and skills to the table. She then turned the remainder of the presentation over to D. Daly, Lynx Forest Management. NOTES OF THE BULKLEY VALLEY COMMUNITY FOREST MEETING HELD TUESDAY, SEPTEMBER 7, 2004. Page 3

D. Daly reviewed the current situation of the Northwest region has been severely impacted by the downturn of the forest sector. The Bulkley Valley Timber Supply Area is not part of the twenty percent take back with the Province of . As a result the Group has contacted the private businesses that have existing licenses to help form the community forest.

Sources of Volume:

The community forest requires 100,000 m3 to be successful. The volume supply in the Bulkley TSA is forty-five to fifty percent balsam wood, which is a lower quality wood and brings in a lower sales price on the market.

D. Daly calculated the volume supply for 100,000 m3 from the following sources: 6,000 m3 from the five percent take back from Skeena Cellulose Inc. 4,000 m3 from the existing forest service reserve 60,000 m3 from BC Timber Sales 30,000 m3 from opportunity wood of non-replaceable forest license held by Pacific Inland Resources.

Opportunity for BCTS Allocation:

D. Daly stated that the twenty percent take back was 21.2% more than needed (an over supply of volume). He added that the Northwest Mountains has a 4.7% excess of volume and within the Bulkley TSA a 6.7% excess of volume exists. He stated there is no technical barrier to reallocation. D. Daly stressed the importance of the discussion has to be to support the communities’ economic needs.

S. Robertson spoke directly to Minister R. Harris, Minister of State. Based on the unanimous support in the Bulkley Valley from First Nations, industry and local government; she asked him to:

1. Support the reallocation of the annual allowable cut in the Bulkley Timber Supply Area as outlined here today; and

2. Request that Minister de Jong reallocate the annual allowable cut in the Bulkley Timber Supply Area to accommodate a 100,000 m3 annual allowable cut community forest.

5. QUESTIONS AND ANSWERS, GENERAL DISCUSSION

Minister R. Harris asked to hear everyone’s views and comments regarding the community forest proposal.

D. MacKay, MLA Bulkley Valley-Stikine, asked Minister Harris, that given the economies of the province and the desire for community forests, are you getting a lot of pressure for wood reallocation from the take back? Minister Harris replied that it is easier to take back the wood than to reallocate it. He stated there is a lot of pressure and a finite land base and the Government has to make sound decisions. He added that he was very impressed with the presentation and stated this is the largest turn out of collective stakeholders he has seen. NOTES OF THE BULKLEY VALLEY COMMUNITY FOREST MEETING HELD TUESDAY, SEPTEMBER 7, 2004. Page 4

D. Daly stated there is a huge demand for the take back volume and that there is no allocation for it in the Valley, and as a result, the Committee has had to look elsewhere for the volume sources that will not compete with other communities in the area. He emphasized it was a great challenge to get all the partners to agree to the project.

Minister Harris stated that he will review the technical data as provided by D. Daly.

Minister Harris commented that with community forest licenses, the volumes granted are different across the board and come in a variety of sizes. He added that over the past few years, over thirty mills have shut down across the province.

Minister Harris stated it is important to give communities control of the resources around them. He suggested some ways for communities to achieve control over their resources is through community forests, woodlots, First Nations agreements, community salvage licenses, and the ability to subdivide and sell licenses. He added that it is important to form partnerships that allow the pooling of resources and licenses to create the inventory required for the community forest.

6. PARTNER COMMENTS

M. Adamson, Bulkley Woodlot Association, stated the Bulkley Woodlot Association supports the community forest project. He stated the benefits and the economic diversification as a result of the community forest will be a good thing for the Valley. He stressed that it is important to create a niche market and local employment opportunities. He suggested the Town of Smithers should review the current industrial zoning.

D. Walgren, Pacific Inland Resources (PIR), stated that PIR has supported the idea of a community forest since the beginning. He added there are some technical issues that still have to be worked through. He stated the only issue PIR has is that the forest license tenure supports the long term viability of the mill and will not compete with the community forest.

A. George Jr., Office of the Wet’suwet’en, stated that all the Chiefs support the community forest project and that they are not willing to use the First Nations eight percent allocation as part of this project. He added that the Office of the Wet’suwet’en can assist the Committee both technically and politically.

R. Norton, NEWPRO, acknowledged there are only two particleboard plants in the province, one in Smithers and the other in Grand Forks. He stated that NEWPRO currently has fifty employees. He continued that the community forest presents an opportunity to NEWPRO to sit down with major forest companies to secure a fibre supply and that NEWPRO fully supports the project. There are also opportunities for NEWPRO to expand operations and increase employment with increased security of fibre supply.

Councillor S. Szufnarowicz, Village of Telkwa, stated the Village of Telkwa supports the community forest project as does the rest of the Valley. She stated it will be a positive move to allow the communities to have control over their resources. NOTES OF THE BULKLEY VALLEY COMMUNITY FOREST MEETING HELD TUESDAY, SEPTEMBER 7, 2004. Page 5

Councillor J. Girling, Village of Telkwa, stated that community forest will bring social and economic stability and is a win-win situation for the whole Valley.

K. McIndoe, Northwest Community College, stated there is a need for community control of resources and that the College fully supports the project.

D. Weaver, Northwest Community College, stated he is supportive of the initiative. He stated that although the College no longer offers the forestry program, they still have the training facilities available. He added that community forests are really a demonstration forest and are a great opportunity to focus on the good things available in the Valley.

Hereditary Chief R. Morris thanked the Committee for the invitation to attend the meeting. He stressed the importance for all to work together for a better future.

J. Bakker, Smithers and District Chamber of Commerce, commented that the Chamber is very excited and fully supports the community forest project. He added there are a lot of small business operators in the area that can benefit from this. He stated the community forest will be a positive way to create employment, social benefits, and economic stability in the Valley.

T. Huisman, T.O.C., stated there is an over supply of wood now and it will be hard to sell. He continued that there are two mills in the area that hold a monopoly in the industry. A community forest may have the bargaining power to sell wood, since the small woodlot operators do not have that kind of pull. This project could really benefit the small woodlot operators.

7. CONCLUSION

Minister Harris stated there is a barrier to the access of fibre and that the government is in the process of redistributing volume to improve management, through community forests, etc. He stated they have learned from the Skeena Cellulose Inc. closure that if you are uncompetitive in the market, you will go out of business. He added that the community needs to evolve to create employment and that he will have to assess the points made today

Minister Harris emphasized that they are only half way through the take back process and still have to evaluate the reallocation process. He stated he believes it is important to provide opportunities to small communities.

Minister Harris stated he was very impressed with the presentation and that it had a very positive impact on him. He thanked the Committee for their thoughts and presentation.

Mayor Davidson emphasized that the whole group of people assembled today came together with a common interest to support the community forest project. He stated we live in the Valley and we should be able to control and work with the resources in the Valley. He added that NEWPRO needs a fibre source and that the community forest needs a market to sell to.

A. George Jr. stated the community forest is a betterment for all who live in the Valley. NOTES OF THE BULKLEY VALLEY COMMUNITY FOREST MEETING HELD TUESDAY, SEPTEMBER 7, 2004. Page 6

D. MacKay commented that D. Daly’s work on the project and where the wood sources were found speaks volumes of the initiative that was taken to put together this project. He stated it is time to do something with the wood that was taken back and to double the sizes of the woodlots and community forests. He stated that it was a great presentation and that Minister Harris has a great deal to think about. D. MacKay stressed the importance of having a large volume of wood available in order for the community forest to be profitable.

8. ADJOURNMENT

S. Robertson thanked everyone for their input and comments regarding the community forest. The meeting adjourned (11:20 a.m.).

Certified a True and Correct Copy of the Notes of the Bulkley Valley Community Forest meeting held on Tuesday, September 7, 2004, in the Council Chambers at the Town Office, 1027 Aldous Street, Smithers, B.C.

______Wallace Mah Chief Administrative Officer

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