Council Presentation June 13 th , 2017 Okan Okanagan gan For - - PowerPoint PPT Presentation

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Council Presentation June 13 th , 2017 Okan Okanagan gan For - - PowerPoint PPT Presentation

Peachland District Mayor and Council Presentation June 13 th , 2017 Okan Okanagan gan For orest est Licensee Licensees Ntityix Resources LP, (WBFN) Dave Gill BC Timber Sales Colin Johnston Gorman Brothers Kerry Rouck


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Peachland District Mayor and Council Presentation

June 13th, 2017

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Okan Okanagan gan For

  • rest

est Licensee Licensees

  • Ntityix Resources LP,

(WBFN) – Dave Gill

  • BC Timber Sales –

Colin Johnston

  • Gorman Brothers–

Kerry Rouck

  • Tolko Industries Ltd –

Michael Bragg

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SLIDE 3

Peachland CWS – Tenures and Ownership

Peachland Community Watershed – 12,553 ha; Forested Land base 11,266 ha

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Peachland CWS Major Licensees

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Ntityix Resources LP

  • Who we are:
  • A Westbank First Nation (WFN) owned Company that manages WFN forest

tenures.

  • Employs a staff of four and manage the contracts of five WFN member-owned

Companies who employ the equivalent of 32 FTE’s.

  • Annually harvest approximately 90,000m3 of timber, sold to Tolko and

Gorman Brothers.

  • Community owned and managed for community interests.
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Road Maintenance

  • All licensee-held permitted roads are risk-rated.
  • Risk rating determines inspection frequency (i.e. a High risk-rated road

may require inspections every year or after an “event” whereas a low risk- rated road may require an inspection once every 2 or 3 years).

  • Road Inspections usually completed in the spring to ensure road

components functioning properly (i.e. culverts/ditches working, road

surface shedding water adequately, signage, cut and fill slope stability, grass-seeding required, etc).

  • Problem areas identified and entered into a Maintenance Schedule.
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Watershed Assessments

  • Before harvesting is conducted in a Community Watershed a

Hydrology Assessment must be completed by a Qualified Registered Professional (usually a Professional Engineer or Geoscientist).

  • The assessment provides recommendations regarding forestry

activities that could potentially result in a material adverse impact on the quantity and/or the quality of water, or the timing of the flow of water.

  • The licensee must then ensure cutblocks and roads are consistent

with the recommendations of the hydrologic assessment.

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Watershed Assessments (cont’d)

  • Peachland Watershed Assessment completed in 2009. Opinion Paper,

2016.

  • Special consideration given to creek crossings (Sediment Evaluation

Protocol completed at time of construction)

  • Equivalent Clearcut Area (ECA) Assessment updated annually.

Peachland Watershed: 18% ECA, 22% in Snow Sensitive Zone, Peak Flow Hazard identified as Moderate (Okanagan Sustainable Forest Management Plan, Monitoring Report, June 2017)

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WFN Operating Area (C (CFLB) ) = 1,583ha

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WFN Remaining unlogg gged = 1,540 ha

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 Semi-autonomous program within the

Ministry of Forests, Lands and Natural Resource Operations

 Created in 2003  Manage and Auction 20% of the provincial

Crown Allowable Annual Cut

 Goal to support the provincial timber market

pricing system (MPS) through supplying benchmark cost and pricing data

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 BCTS is made up of 12 business areas selling

13.5 million cubic metres of timber per year

1. Okanagan Columbia (TOC) is one Business Area 2. Each year, TOC auctions 900,000m3 3. TOC sells 35-50 timber sales per year 4. Timber is available to all qualified bidders 5. TOC develops timber, builds road, and reforests harvested blocks 6. BCTS is a significant economic driver to communities

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SLIDE 17

 Our team of Professionals focus on:

  • Building outstanding plans that address the values

and meet the objectives in the forest for communities, government, industry, public and First Nations

  • Multiple use is a cornerstone of BCTS forest

management

  • BCTS has achieved third-party certification for

safety and sustainable forest management on all of the timber volume it manages

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SLIDE 18

 The ‘Working Forest’ is the key

  • Team of forest professionals must consider and balance all of the

values of the working forest in our plans including: water, timber harvest, recreation, wildlife, forest health, visuals, First Nations cultural and archaeological, soils and terrain, forest fuels, ecological and many

  • thers
  • BCTS does this by engaging experts and referring plans to key

stakeholders and incorporating their feedback

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Logging prior to 2007 MPB = 49ha

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Logging post 2007 MPB = 37ha

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Total Logging = 86ha

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BCTS 5 Year Planned = 240ha

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Remaining Unlogged CFLB 76%

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 If you have questions or want more information about our

plans please call Tony Zanotto Planning Officer BCTS at 250 558 1793

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The Gorman Group of f Companies Overview

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The Gor he Gorman Edge man Edge

Commodity Producers

  • High Volume
  • Driven By Low Costs
  • Price Takers
  • Margin driven by:
  • Low Unit Costs
  • Market Pricing

Operational Excellence Strategy to drive down costs

Customer focused value ‘chasers’

  • Medium Volume
  • High Cost
  • Price Setters
  • Strong Brand Recognition
  • Margin Driven by Securing Extra

Value from Market Customer Driven Strategy to extract highest value

Being different is our strength!

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Gorman Group Statistics

Division Products Consumption Contribution # of Jobs Gorman Bros. Lumber Ltd. 1” SPF Boards 12,500 Loads 605,000m3 150 MMBF $130 million 440 Canoe Forest Products Ltd. Douglas-fir Veneer and Plywood 6,250 Loads 300,000m3 175 MM msf $50 million 320 Downie Timber Ltd. Cedar, Genban, 1” Boards 10,000 Loads 500,000m3 140 MMBF $140 million 325 Lumby Pole Division Cedar Utility Poles 25,000 pieces $10 million 15 Oroville Reman & Reload 1” SPF Boards Cedar Products Reload Services 120 MMBF Finishing $30 million 110 Totals $360 million 1,210

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Global Sales Trends

Canada 19% USA 79% Other 2%

1996/97

Canada 34% USA 36% Other 30%

2017/18

Gorman Group Sells Products into 29 Countries

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32 Canoe

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Peachland CWS Licensees – GBL (600ha)

32 ha

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Munro FSR 2017 Slides

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Munro FSR April 28 Slide Location

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Headscarp of 2017 Slide

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Peachland Creek - 2016

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2017 Geo-technical Report - Conclusions

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2017 Geo-technical Report - Recommendations

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M i c h a e l B r a g g , R P F Wo o d l a n d s M a n a g e r, F o r e s t r y – S o u t h e r n I n t e r i o r O p e r a t i o n s

June 13th, 2017

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Tolko Woodlands

  • Family owned company that was established in 1956
  • Vernon based
  • Operate in the 3 western provinces
  • Core holdings in the Okanagan are located in Kelowna, Lavington,

Armstrong and Lumby

  • Tolko’s Economic Impact from the SI Operations in 2016 $300M (direct

employment, economic spin off, taxes, stumpage, community donations etc.)

  • Woodlands manages the forest with a integrated team of professionals

that manage everything from planning through to the establishment of successful planation's supported by 3rd party experts (consultants and academics) to assist in implementing the effective and scientifically bound plans

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Peachland CWS Crown Forested Landbase (Tolko) = 7,753ha

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Peachland CWS Logging prior to 2007 MPB outbreak (Tolko) = 748ha

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Peachland CWS MPB Logging post 2007 (Tolko) = 1,618ha

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Peachland CWS Tolko Planned (next 5 years) = 734ha

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Peachland Remaining mature CFLB in Tolko Op Area after planned Blocks (4,653ha)

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Roll Up of Watershed

WFN Gorman BCTS Tolko Total Operating Area (CFLB) 1583 600 1,330 7,753 11,266 Pre-2007 Harvest

  • 3 *

49 748 800 Post 2007 harvest 238 106* 37 1,618 1,999 Planned Blocks/Harvest next 5 years 28 240 734 1,002 Remaining unlogged 1,540 491 1,004 4,653 68% * Gorman’s took over Tolko Op Area in 2013 and harvesting reported was Tolko’s

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QUESTIONS?