These BC Timber Sales blocks made the news in the September 19 issue of the Coast Reporter in a story by Greg Amos. Unfortunately, I cannot link to the story so I will have to type it in. Here goes...
Logging Looms at Waugh Lake
A new tenure call from B.C. Timber Slaes for an 11.848 cubic metre logging block within the Waugh Lake watershed near Egmont is causing the Sunshine Coast Regional District (SCRD) board to strategize new approaches to dealing with the province.
"[B.C. Timber Sales] continue to have tender calls in important watershed areas," said Area A (Pender Harbour) director John Rees. "It's extremely disappointing."
The tender notice appeared in August, after a July request from the SCRD general manager of community services Paul Fenwick towards B.C. Timber Sales, asking them to stop advertising the sale of timber licences locatd within the Waugh Lake Community Watershed. So far, one bid has been received from Pender Harbour's Sladey Timber.
At a Sept. 11 planning and development committee meeting, the committee received word from the province's timber organization that advertising will go ahead as planned. B.C. Timber Sales aslo declined the SCRD's invitation for a representative to attend a meeting with the board.
"B.C. Timber Sales has done and will do a very thorough job of planning and monitoring of any operations considering the risks involved." wrote timber sales manager Bruce McKerricher in response. He also pointed out B.C. Timber Sales has "spent several hundred thousands of dollars rebuilding the public road along Waugh Lake."
Rees said the assurances miss the point, particularly when new water infrastructure is shcneduled to begin operation in the fall. "I'm always disappointed with B.C. Timber Sales and disappointed with the regional district's reaction to these issues," added a clearly frustrated Rees, who likened the Waugh Lake issues to a "mini-version of the Chapman problem. "The policy of not having logging in watersheds should be pursued equally at every opportunity."
So far, there's been no study looking a the impacts of logging on water quality at Waugh Lake. Area F (West Howe Sound) director Lee Turnbull noted the regional district remains responsible for providing clean drinking water. "We're totally under attack, the provincial government does not agree with us on logging in the watershed," she said. "I'm getting quite frustrated from us pushing against the provincial government, and B.C. Timber Sales says they're getting pushed from above."
Rees suggested the Union of B.C. Municipalities (UBCM) "should be picking up this quest of ours. It seems to me this is an opportunity for us to kind of work together." Local governments across B.C. will converge in Pentiction next week for the annual UBCM conference.
The Waugh Lake ares is not unfamiliar territory to logging contractors. The Sechelt Indian Band's Tsain-Ko Forest Products won a bid for five blocks in the watershed in February. At that time, shortly after last summer's controversy regarding loggin in the Chapman Creek watershed, Rees noted B.C. Timber Sales were getting very little interest in tenures they offered withing drinking watershed areas on the coast.
"[B.C. Timber Sales] continue to have tender calls in important watershed areas," said Area A (Pender Harbour) director John Rees. "It's extremely disappointing."
The tender notice appeared in August, after a July request from the SCRD general manager of community services Paul Fenwick towards B.C. Timber Sales, asking them to stop advertising the sale of timber licences locatd within the Waugh Lake Community Watershed. So far, one bid has been received from Pender Harbour's Sladey Timber.
At a Sept. 11 planning and development committee meeting, the committee received word from the province's timber organization that advertising will go ahead as planned. B.C. Timber Sales aslo declined the SCRD's invitation for a representative to attend a meeting with the board.
"B.C. Timber Sales has done and will do a very thorough job of planning and monitoring of any operations considering the risks involved." wrote timber sales manager Bruce McKerricher in response. He also pointed out B.C. Timber Sales has "spent several hundred thousands of dollars rebuilding the public road along Waugh Lake."
Rees said the assurances miss the point, particularly when new water infrastructure is shcneduled to begin operation in the fall. "I'm always disappointed with B.C. Timber Sales and disappointed with the regional district's reaction to these issues," added a clearly frustrated Rees, who likened the Waugh Lake issues to a "mini-version of the Chapman problem. "The policy of not having logging in watersheds should be pursued equally at every opportunity."
So far, there's been no study looking a the impacts of logging on water quality at Waugh Lake. Area F (West Howe Sound) director Lee Turnbull noted the regional district remains responsible for providing clean drinking water. "We're totally under attack, the provincial government does not agree with us on logging in the watershed," she said. "I'm getting quite frustrated from us pushing against the provincial government, and B.C. Timber Sales says they're getting pushed from above."
Rees suggested the Union of B.C. Municipalities (UBCM) "should be picking up this quest of ours. It seems to me this is an opportunity for us to kind of work together." Local governments across B.C. will converge in Pentiction next week for the annual UBCM conference.
The Waugh Lake ares is not unfamiliar territory to logging contractors. The Sechelt Indian Band's Tsain-Ko Forest Products won a bid for five blocks in the watershed in February. At that time, shortly after last summer's controversy regarding loggin in the Chapman Creek watershed, Rees noted B.C. Timber Sales were getting very little interest in tenures they offered withing drinking watershed areas on the coast.
*******************************
Here are the two letters alluded to in the above Coast Reporter news story.
July 31, 2008
Bruce McKerricher
Timber Sales Manager
Strait of Georgia Timber Sales Office
370 S Dogwood
Campbell River, BC. V9W 6Y7
Dear Mr. McKerricher:
Re: Notice of Timber Sale Licence 58201, Waugh Lake, Egmont by Strait of Georgia Timber Sales Office
The Sunshine Coast Regional District is aware that the Strait of Georgia Timber Sales office has advertised the sale of TSL 58201. This TSL includes two blocks, both of which lie within the Waugh Lake Community Watershed. Block 2 appears to require new road construction to cross fish bearing streams. New road construction is worrisome as it may encourage more activity in the watershed.
The Regional District is on record with the Ministry of Forests and Range as being strongly opposed to logging within all Community Watersheds along the Sunshine Coast for purposes of protection the community watersheds, water quality and community water distribution systems (Board Resolution #027/00).
The Waugh Lake Community Watershed is the source of water for the nearby community of Egmont. Recently, the Regional District has been successful in securing funds to upgrade the existing substandard system. Constructing a water filtration system, upgrading the flows for
fire protection and fortifying the waterlines are part of the proposed upgrades. The Regional District received a petition signed by 90% of the community supporting these necessary upgrades.
The Regional District is investing to secure a safe water source for the community around Waugh Lake and we are disappointed to learn that part of the watershed is considered for harvesting. Based on discussion with the SCRD Directors, we ask that you rescind the notice for Timber Sale Licence 58201 immediately.
Due to the importance of this matter, we would like to invite you to address our Planning and Development Committee meting on September 11.2008. Please contact [...] to confirm your attendance.
Yours truly,
Paul Fenwick
General Manager Community Services
Cc: Brian Hawrys, Sunshine Coast Forest District manager, 7077 Duncan St., Powell River, BC, V8A 1W1
BC Timber Sales responds...
Paul Fenwick
General Manager Community Services
Sunshine Coast Regional District
1975 Field Road
Sechelt, British Columbia
V0N 2A1
Dear Paul Fenwick:
I am in receipt of your July 21, 2008 letter asking us to rescind the advertisement of Timber Sale Licence A58201 which is located within the boundaries of the Waugh Lake Community Watershed. The letter raises the concerns that the harvesting, including road construction, within community watersheds is worrisome to the SCRD.
Provincial legislation, regulations and policy are clear in that harvesting is not precluded from occurring within watersheds such as the Waugh Lake Community Watershed. I want to emphasize that any harvesting related activities in community watersheds are held to higher standards than on non-watershed lands and BC Timber Sales has done and will do a very thorough job of planning and monitoring of any operations considering the risks involved. Preserving water quality is a cornerstone of our forest management endeavours and risks that involve water will be kept to an absolute minimum.
After our "Operations Plan" for the Sunshine Coast was referred to the SCRD in mid 2007, three of my staff met with the SCRD on December 13, 2007 and discussed many aspects of BC Timber Sales mandate and plans in the area. The Operating Plan did show our planned Waugh Lake timber sale licence and the notes we took from the meeting were later forwarded to your office. Please find attached copies of a portion of the minutes from that meeting and the speaking notes that one of my staffers, Bill Hughes, had prepared before he enterred the meeting and gave to Judy Skogstad upon leaving the session. You will note that Waugh Lake was referenced by us in our notes but was not specifically mentioned in the SCRD minutes.
I do recognize that the SCRD has stated their position on harvesting in designated community watershed in several forums but I need to reiterate that Forest Act tenure holders are not precluded from opertating within most community watersheds as long as the stringent requirements of the Forest and Range Practices Act and other applicable legislation and regulations are observed.
BC Timber Sales has been planning to harvest the two blocks withing the Waugh Lake watershed for several years and it has been discussed at local and regional levels over those years. Many members of the public have had several chances to comment on our plans and many have taken that opportunity. BC Timber Sales has incurred considerble expenses developing this harvesting opportunity and this includes having spent several hundred thousand dollars rebuilding the public road along Waugh Lake (which is used by a significant number of local residents) resulting in much better road and water management within the watershed.
Though I recognize this in not what you wish to hear, it is for the above reasons that I do intend to proceed with the advertisement of Timber Sale Licence A58201 and regretfully decline your invitation to attend the September 11, 2008 Planning and Development Committee meeting. If you have any further questions on the matter, please do not hesitate to contact me.
Yours truly,
Bruce McKeerricher
Timber Sales Manager
Strait of Georgia Business Area
Attachment(s): (minutes of the SCRD Dec 17 meeting and BCTS speaking notes prepared prior to that meeting
pc: Brian Hawrys, Sunshine Coast Forest District district manager
(FOE note: The road that Mr. McKerricher alludes to is the second last paragraph is not at Waugh Lake but at North Lake. You must use the North Lake forest road to access the inner Waugh Lake Watershed. Those repairs entailed laying a black cloth over a portion of the road closest to Egmont Road and then placing about six inches of road gravel on top. Within about six months all the pot holes were back in their usual spots. As for the road portion in front of most of homes, the regular practice of grading the road was employed with the usual results.)
July 31, 2008
Bruce McKerricher
Timber Sales Manager
Strait of Georgia Timber Sales Office
370 S Dogwood
Campbell River, BC. V9W 6Y7
Dear Mr. McKerricher:
Re: Notice of Timber Sale Licence 58201, Waugh Lake, Egmont by Strait of Georgia Timber Sales Office
The Sunshine Coast Regional District is aware that the Strait of Georgia Timber Sales office has advertised the sale of TSL 58201. This TSL includes two blocks, both of which lie within the Waugh Lake Community Watershed. Block 2 appears to require new road construction to cross fish bearing streams. New road construction is worrisome as it may encourage more activity in the watershed.
The Regional District is on record with the Ministry of Forests and Range as being strongly opposed to logging within all Community Watersheds along the Sunshine Coast for purposes of protection the community watersheds, water quality and community water distribution systems (Board Resolution #027/00).
The Waugh Lake Community Watershed is the source of water for the nearby community of Egmont. Recently, the Regional District has been successful in securing funds to upgrade the existing substandard system. Constructing a water filtration system, upgrading the flows for
fire protection and fortifying the waterlines are part of the proposed upgrades. The Regional District received a petition signed by 90% of the community supporting these necessary upgrades.
The Regional District is investing to secure a safe water source for the community around Waugh Lake and we are disappointed to learn that part of the watershed is considered for harvesting. Based on discussion with the SCRD Directors, we ask that you rescind the notice for Timber Sale Licence 58201 immediately.
Due to the importance of this matter, we would like to invite you to address our Planning and Development Committee meting on September 11.2008. Please contact [...] to confirm your attendance.
Yours truly,
Paul Fenwick
General Manager Community Services
Cc: Brian Hawrys, Sunshine Coast Forest District manager, 7077 Duncan St., Powell River, BC, V8A 1W1
************************
BC Timber Sales responds...
Paul Fenwick
General Manager Community Services
Sunshine Coast Regional District
1975 Field Road
Sechelt, British Columbia
V0N 2A1
Dear Paul Fenwick:
I am in receipt of your July 21, 2008 letter asking us to rescind the advertisement of Timber Sale Licence A58201 which is located within the boundaries of the Waugh Lake Community Watershed. The letter raises the concerns that the harvesting, including road construction, within community watersheds is worrisome to the SCRD.
Provincial legislation, regulations and policy are clear in that harvesting is not precluded from occurring within watersheds such as the Waugh Lake Community Watershed. I want to emphasize that any harvesting related activities in community watersheds are held to higher standards than on non-watershed lands and BC Timber Sales has done and will do a very thorough job of planning and monitoring of any operations considering the risks involved. Preserving water quality is a cornerstone of our forest management endeavours and risks that involve water will be kept to an absolute minimum.
After our "Operations Plan" for the Sunshine Coast was referred to the SCRD in mid 2007, three of my staff met with the SCRD on December 13, 2007 and discussed many aspects of BC Timber Sales mandate and plans in the area. The Operating Plan did show our planned Waugh Lake timber sale licence and the notes we took from the meeting were later forwarded to your office. Please find attached copies of a portion of the minutes from that meeting and the speaking notes that one of my staffers, Bill Hughes, had prepared before he enterred the meeting and gave to Judy Skogstad upon leaving the session. You will note that Waugh Lake was referenced by us in our notes but was not specifically mentioned in the SCRD minutes.
I do recognize that the SCRD has stated their position on harvesting in designated community watershed in several forums but I need to reiterate that Forest Act tenure holders are not precluded from opertating within most community watersheds as long as the stringent requirements of the Forest and Range Practices Act and other applicable legislation and regulations are observed.
BC Timber Sales has been planning to harvest the two blocks withing the Waugh Lake watershed for several years and it has been discussed at local and regional levels over those years. Many members of the public have had several chances to comment on our plans and many have taken that opportunity. BC Timber Sales has incurred considerble expenses developing this harvesting opportunity and this includes having spent several hundred thousand dollars rebuilding the public road along Waugh Lake (which is used by a significant number of local residents) resulting in much better road and water management within the watershed.
Though I recognize this in not what you wish to hear, it is for the above reasons that I do intend to proceed with the advertisement of Timber Sale Licence A58201 and regretfully decline your invitation to attend the September 11, 2008 Planning and Development Committee meeting. If you have any further questions on the matter, please do not hesitate to contact me.
Yours truly,
Bruce McKeerricher
Timber Sales Manager
Strait of Georgia Business Area
Attachment(s): (minutes of the SCRD Dec 17 meeting and BCTS speaking notes prepared prior to that meeting
pc: Brian Hawrys, Sunshine Coast Forest District district manager
(FOE note: The road that Mr. McKerricher alludes to is the second last paragraph is not at Waugh Lake but at North Lake. You must use the North Lake forest road to access the inner Waugh Lake Watershed. Those repairs entailed laying a black cloth over a portion of the road closest to Egmont Road and then placing about six inches of road gravel on top. Within about six months all the pot holes were back in their usual spots. As for the road portion in front of most of homes, the regular practice of grading the road was employed with the usual results.)
*****************
Here is the bid result from the BC Timber Sale wesite:
Timber Sale Status for A58201
Auction Date Friday, August 15, 2008
Sec/Cat:... A
Location:... Waugh Lake
Volume:... 11,848 /m3
Upset Rate:... $19.84 /m3
Auction results have been approved
Status:... AWARDED
Client Name: SLADEY TIMBER LTD.
Bonus Bid:... $2.36 /m3
(FOE note: Rumour has it that there were only two bidders for this BC Timber Sale Licence. If this is so, then the 'Upset Rate' would play a role in the auction. Here is what is meant by the term 'Upset Rate'...
"An important element of timber auctions is the upset—the minimum acceptable price, often called the reserve price in other auction environments. The upset has three main purposes: (1) to guarantee substantial revenue in auctions where competition is weak but the upset is met, (2) to limit the incentive for—and the impact of—collusive bidding, and (3) to provide useful information to bidders."
(quoted from 'Setting the Upset Price in British Columbia Timber Auctions' by Susan Athey, Peter Cramton, and Allan Ingraham, Market Design Inc. and Criterion Auctions, 12 September 2002)
Therefore the stumpage price (upset rate + bonus bid) for the Waugh Lake Watershed logs will be $22.20 /merchantable m3.)
Timber Sale Status for A58201
Auction Date Friday, August 15, 2008
Sec/Cat:... A
Location:... Waugh Lake
Volume:... 11,848 /m3
Upset Rate:... $19.84 /m3
Auction results have been approved
Status:... AWARDED
Client Name: SLADEY TIMBER LTD.
Bonus Bid:... $2.36 /m3
(FOE note: Rumour has it that there were only two bidders for this BC Timber Sale Licence. If this is so, then the 'Upset Rate' would play a role in the auction. Here is what is meant by the term 'Upset Rate'...
"An important element of timber auctions is the upset—the minimum acceptable price, often called the reserve price in other auction environments. The upset has three main purposes: (1) to guarantee substantial revenue in auctions where competition is weak but the upset is met, (2) to limit the incentive for—and the impact of—collusive bidding, and (3) to provide useful information to bidders."
(quoted from 'Setting the Upset Price in British Columbia Timber Auctions' by Susan Athey, Peter Cramton, and Allan Ingraham, Market Design Inc. and Criterion Auctions, 12 September 2002)
Therefore the stumpage price (upset rate + bonus bid) for the Waugh Lake Watershed logs will be $22.20 /merchantable m3.)
