P. O. Box 8000, Boyle, Alberta, Canada T0A 0M0

Telephone: (780) 525-8000 Facsimile: (780) 525-8423

Effective Date of the FMP Amendment: May 1, 2012 Page 1 of 1

Prepared August 26, 2013

FOREST MANAGEMENT PLAN OBJECTIVE # 15 - AMENDMENT

ALBERTA-PACIFIC INCIDENTAL CONIFER REPLACEMENT AND ALLOCATION

Incidental conifer refers to conifer wood cut from D and D(C) stands that are managed for deciduous

production. Incidental conifer is allocated to Alberta-Pacific, but is not considered a sustainable wood

supply as it is highly variable and the growth thereof is not readily measureable after the first harvest.

The Regeneration Standard of Alberta (RSA) requires replacement of conifer stocking for all conifer and

mixedwood cover types (i.e. C, CD &DC). The RSA does not require incidental conifer to be replanted,

because it occurs in stands being managed for deciduous. Recognizing that the incidental conifer in

deciduous stands has ecological and structural value, Al-Pac will continue to encourage regeneration of

conifer through understory protection, understory avoidance, and by encouraging ingress through

retention of seed trees in its stand structuring program.

In FMUs where Al-Pac has “DC” rights, the conifer component will be replaced in accordance with the

silvicultural matrix (FMP Appendix 4) to meet future RSA requirements. In FMUs where conifer Quota

Holders have “DC’ rights, the conifer component will be replaced in accordance with the silvicultural

matrix to meet future RSA requirements.

2006 FMP - OBJECTIVE (#15):

Facilitate the presence of incidental conifer in regenerating deciduous stands (D and D(C)) by

encouraging natural recruitment and the protection of existing conifer.

STRATEGIES:

Encourage the conifer component in reforested stands through retention of residual conifer stems

through avoidance tactics and stand structure protocols (See FMP Objective # 12).

Use retained post-harvest conifer (e.g. high-effort understorey protection) to contribute to

growing stock for conifer reforestation.

-2-

Ifyouhaveanyquestions,orrequirefurtherinformationpleasecontactLianaLuard,Lead,ForestPlanningandPerformanceMonitoringat(780)427-0395.

Sincerely,

DarrenTapfExecutiveDirector

,RPF

WesNimco,ActingForestryManager,LacLaBicheArea

ALBERTA PACIFI( II+Uiiijj,jiJif.j'i'lIjJ

October 31,2012

Darren Tapp Executive Director Forest Management Branch

P. O. Box 8000, Boyle, Alberta, Canada TOA OMO Telephone: (780) 525-8000 Facsimile: (780) 525-8423

Environment and Sustainable Resource Development 7th fl Great West Life Building 9920 - 108 Street Edmonton, Alberta T5K2M4

Dear Mr. Tapp,

RE: Incidental Conifer Replacement - Forest Management Plan Amendment.

Alberta-Pacific (AI-Pac) wishes to confirm with AESRD, the company's progress and process towards amending Objective # 15 ("Incidental Conifer Replacement") within the approved 2006 AI-Pac FMA Area Forest Management Plan (FMP). The rationale and proposal amendment are presented below.

AI-Pac's initial FMA in 1991 contained a clause that required the company to replace all conifer volumes harvested from the pure deciduous landbase through reforestation of FMA lands to conifer. This clause has been enacted through the AESRD approved 2000 DFMP and the approved 2006 FMP by strategies utilizing reforestation and retention of immature conifer in deciduous blocks.

To-date, AI-Pac has reforested over 7,500 hectares of deciduous landbase and delineated these hectares to a conifer or mixedwood stratum declaration. Additionally, over 1,000 hectares of deciduous with an existing immature conifer understorey has undergone "high-effort" understorey protection treatments. Through these actions, AI-Pac has firmly demonstrated their commitment to the original FMA objective and forest management strategies.

In September 2011, the new AI-Pac FMA was signed. The incidental conifer replacement clause was no longer included in this document. However, the 2006 FMP still carries an objective and strategies relating to incidental conifer replacement; Objective # 15 - 2006 FMP. This objective does in fact continue to negatively impact the long-term sustainability of AI-Pac's deciduous AAC.

Since the September 2011 FMA renewal, AI-Pac embarked on a two-tiered strategy to investigate incidental conifer strategies; 1) Review other FMA holder commitments and talk to their company representatives, 2) An empirical analysis of the state of natural regeneration of conifer in AI-Pac's deciduous cutblocks. This investigation revealed a number of compelling points;

........... ~ .. .: • Fo.cbli!~QN ·~XOi~NCE : .. . .. _ ......•••

ALBERTA PACIFI( "+!lii!!i'llhMIJ'!!!I

P. O. Box 8000, Boyle, Alberta, Canada TOA OMO Telephone: (780) 525-8000 Facsimile: (780) 525-8423

1. Other FMAs in Alberta do not explicitly require the replacement of incidental conifer through directed reforestation treatments

2. Other companies' FIvlPs rely on conifer ingress and harvest avoidance tactics to replace incidental conifer

3. Some deciduous harvest operators plant in-block roads and landings to conifer 4. Conifer ingress and advanced growth on AI-Pac deciduous blocks is providing significant, albeit

variable, stocking 5. Understory protection (UP) is supplying future conifer growing stock 6. Prediction of future forest yields from UP and ingress is very complicated and financially onerous

On September 18, 2012, AI-Pac (K.Rymer, O.Cheyne, G.Grover) met with yourself and Or. Ken Greenway to discuss the current forest management situation with regards to incidental conifer replacement and a forthcoming amendment of our approved forest management plan. Through our discussion of the above six points, it was agreed that AI-Pac could proceed with amending the FMP incidental replacement objective. Prior to the amendment, AI-Pac was to perform a number of communication and analytical tasks. As a follow-up to our September 18, 2012 meeting, AI-Pac has prepared the following information to meet the discussed needs and tasks.

• AI-Pac presented and reviewed the above proposal with AI-Pac's FMA Area Landscape Advisory Group (LAG) (presented on 11110112), which includes all major conifer Quota Holders. After a discussion on natural regeneration, past conifer liability and potential wording, the LAG had no major objections to AI-Pac proceeding with the FMP amendment. The minutes of the 11110/12 meeting have been supplied to AESRD-FMB.

• Through a TSA scenario exercise, using the TSA models presented to AESRD in May 2012, AI­Pac reviewed the effect of having no incidental conifer volume replacement in the future forest on the AAC. Two FMUs were examined, S11 and LI - the review involved two parameter changes:

o Two "future forest" deciduous yield curves ("0" and "O(C)") with no incidental conifer volume.

o Post-harvest transition of all current "0" and "O(C)" stands to the new yield forecast.

The analysis tracked the effect of the new yield forecast on long-run incidental conifer AAC (55 year average) and found it to be inconsequential.

o FMU S 11 demonstrated a 0.4 % drop in the incidental conifer AAC o FMU Ll demonstrated a 0.5 % drop in the incidental conifer AAC

The TSA reports are attached to this letter and both FMU models are available to FMD.

• AI-Pac has informed all major conifer Quota Holders of the proposal and the positive impacts of the change to the marketing of conifer logs; reduction in delivered wood costs due to no silviculture surcharge. The major Quota Holders voiced no opposition to the proposal.

••...... :;.---.......... : F~ijp~-QN '\

~U!qt!NCE •

t, .­.-.........••

ALBERTA PACIFI( ""N"!!.iihf.iifii!!·

P. O. Box 8000, Boyle, Alberta. Canada TOA OMO Telephone: (780) 525-8000 Facsimile: (780) 525-8423

• In the discussions leading up the new 2015 FMP, AI-Pac will investigate how best to apportion UP stands in the TSA's future forest.

Based on the above points, AI-Pac is proposing the following change to the approved 2006 FMP. AI-Pac would like AESRD to approve our proposal, retroactive to May 1,2012. Consequently, all blocks skid­cleared post April 30, 2012 will be subject to this amendment.

Amendment Proposal

FOREST MANAGEMENT PLAN OBJECTIVE # 15

ALBERTA-PACIFIC INCIDENTAL CONIFER REPLACEMENT AND ALLOCATION

Incidental conifer refers to conifer wood cut from D and D(C) stands that are managed for deciduous production. Incidental conifer is allocated to Alberta-Pacific, but is not considered a sustainable wood supply as it is highly variable and the growth thereof is not readily measureable after the first harvest.

The Regeneration Standard of Alberta (RSA) requires replacement of conifer stocking for all conifer and mixedwood cover types (i.e. C, CD &DC). The RSA does not require incidental conifer to be replanted, because it occurs in stands being managed for deciduous. Recognizing that the incidental conifer in deciduous stands has ecological and structural value, AI-Pac will continue to encourage regeneration of conifer through understory protection, understory avoidance, and by encouraging ingress through retention of seed trees in its stand structuring program.

2006 FMP - OBJECTIVE (#15):

Facilitate the presence of incidental conifer in regenerating deciduous stands (D and D(C)) by encouraging natural recruitment and the protection of existing conifer.

STRATEGIES:

• Encourage the conifer component in reforested stands through retention of residual conifer stems through avoidance tactics and stand structure protocols (See Objective # 12).

• Use retained post-harvest conifer (e.g. high-effort understorey protection) to contribute to growing stock for conifer reforestation .

•..... -.~ •• •• ..d~t •• • Fq"''l~·~N

~~J-ENCE : .. . ..............

ALBERTA PACIFI( 'i.§Ji'i!Bi6hiiillQ

P. O. Box 8000, Boyle, Alberta, Canada TOA OMO Telephone: (780) 525-8000 Facsimile: (780) 525-8423

Thank you for your time in reviewing this FMP amendment. If additional documentation and analysis are required, please feel free to call and ask any questions.

Sincere(Jk Dave Cheyne, MBA, RPF Management Forester AI-Pac Woodlands 780-525-8261 dave.cheyne@alpac.ca

cc: Kim Rymer Bob Nichol Roger Butson

........... ~ •• .~j ••

• FQCI1~'::-QN EX~f-!NCE •

~ : . . -•• ...........

1 hl' .\lhrrta-Pacitic F\I \ \n'a 2(111 Timhl'r Sllppl~ \lIal~sis ~ ~ ffi F \ll LI r&l!l,5i ~ t;;;Il, Summa ry Category Coniferous Deciduous Total

2007 Results NCI Ilarvcstablc Landba5C: (ha) 122,4 19

Initial LRSY (m'/yr) - Empcricnl Yield Curves 91,35 1 194,483 285 ,834 Woodstock HI ASp3tial AAC (rol/yt) 59,557 140,24 1 199,798

PntchWorks™ Spatial AAC (ml/yr) (MWM) 59,675 100% 166,677 11 9% 226,352

Stand Retention Deduction 0% 5%

Cull Deduction 2% 4%

2011 Updates Net Harveslablc Landbasc (ha) 127,050 Spatial Primary Me: 55-Year Average (ml!yr) 60,324 164,975 225,299

Coniferous Harvest Summary by Cover Type: 55-Year Average

ConU. SS Year Avg.

~. ~ , .,,0 c' 031 uU 00 .,0

Conifer 90,2 t 9

Deciduous Harvest Summary by Cover Type: 55-Year Average

DI DC

""

C / CO

"" Total

Deciduous

10,867 10861

175,843

91,083 89,729

14,339 10,726 1',339 10 ... 726

179,530 177,40)

Published on: 101312012

1 he \lhel'la-I'adlk r\J \ ,\I'ea lIIll 'I illlhrl' Sllflfll~ \lIal~'i' i)11~ ~ ffi I· \11 1.1 (!,.llllle'!' n ~

~

e

i u < <

FMU Conlrerous AAC by Cover Type

120

100

HO '

~:-:-:-:-:-:-::-:-:~-:-:~-:-:~-:-:-:-:-:-:-:------.. -------.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -... _-.. -.. -.. -.. -.... -.. -.. -.. -.. -----.... -.. -.. -.. -.. -.. -.. -.. -.. -.. -.. -...... ---.. -.. -.. -.. -.. -.;; 20

a 2011

200

I ,"

160 ·

140 ·

120 .

100

80

60

40

20

0 2011

2006

2036

206 1 " .. 2136 2161 2186

c rndd ... u J c e,'j OC-Sb . C-SW

FMU Deciduous AAC by Cover Type

206 ' "'" 2111 2136 2161 2I!,6

llmt b u n)

1'I 1ncitkn!al C l'rim.ry

Published on: 10/3/201 2

I h,' \Iherta-I'acilic 1"1 \ \rea 21111 I ill1h,' ,· Suppl) \ual)sis ~ ~ & F\1l 1.1 :;"IIIII""Y R ~

Initial Ageclass Structure by Cover Type

45,000

40.000

15,000

3U,OOO .. e 1 25,000 <

20,000

15.000

10,000

5.000

0 '·20 41·60 81-100 14] · 160 16 1- 180 ISO'

llmf ()u n)

Area Harvested by Cover Type

10,000

' .<XXI

'.<XXI

7.001

.. '001

• i 5.001 , ~

1 '.001 <

3.001

2.000 .

1,!XX) -

o · 20 11 2036 2061 2086 21 11 2136 2161 I l H6

Published on: 10/31 2012

I hl' \Ihl'rta-Pacific 1'\1 \ \rl'a 21111 I illlhl' r SIlJlJlI~ \lIal~sis ~ E."lII Ii\ H II 1.1 "'III!I"'!! ~ ~

12,000,000

10,000,000

1 8,000,000

{ 0

~ 6,000,000

• 0 3 ~.ooo,ooo

~

2.000,000

2011 2036

250.00

200.00

~ ! ! 150.00

j . e 100.00 -I > .. <

50.00

0 .00 2011 2036

Growing Stock Over Time

twlo...tw.Opaablo a._ ... Sood;

-_t...eC<1O.l_0p0 .. bIoG-... Sood

"'61 2086 2 111 2136 2161 2186 111m (ytlln)

Average Volume Per Ra Harvested Over Time

206 ' ".6 2111 llmf O~.n)

2136 2161 2186

Published on: 10/312012

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Age Class Distribution

~ 80,000 , 60.000 <

40,000

A verage Harvest Ages Over Time

Dedduous 10. 115 78 72 63 Dedduous/Conlferous 80 107 77 63 32 ConlferouslDedduoU5 9. ISO 52 73 64 White S ruce 143 '.7 90 94 100 BIKkS "'" 127 129 181 213 lSI Pin< 128 I2S 133 105 160

Published on: 10/312012

Thr .\Ihrrta-Pacilic 1"1 \ .\rra 2011 Timlll'r SlIppl~ . \nal~,i, ~ ~ I'm SII 1\\., 11111 ,dJ ~ Summary Category Coniferous Deciduous Total

2007 Results Net Harvcstablc Lnndbasc (ha) 15 1,507

Initial LRSY (m1jyr) 121,390 196,930 3 1 H,320

Woodstock™ Asp.1liill Primary AAC (m1/yr) 92,339 144,0 16 236,356

Stanley Spatial Primary AAC (ml/yr) 90,25 1 98% 142,029 99% 232,280

Stand Retention Deduction 0% 5%

Cull Deduction 2% 4%

2011 Upd.tes Net Harvestable Landbase (ha) 152, 157 Spatial Primary AAC: 55-Year Average (m'!yr) 87,282 142,251 229,533

Coniferous Harvest Summary by Cover Type: 55-Year Average

i:''' .. " .,, 0 c " 0:2 u u .... (1)0

41 ~'.

Co nifer 120,832 120,550 123,926

Deciduous Harvest Summary by Cover Type: 55-Year Average

C l eO I DC

100%

rrilllllr~ Ued!! . 55-\ c6Ir A'I!. lI a ncslllll/~r

Tolal Dec iduous

3!,46S _-""".> 172,715 172,693 175,687

Published on : 10/812012

I Itl' \lh~rta-Paril1r 1'\1 \ \rl'a 2011 r;llIh~r SlIppl~ \nal~ sis Yi1~ ~ 1· \1l SII ~I III I~ ~

FMU Coniferous AAC by Cover Type

140

120 -

100

" i 80

u 60 ~

40 ------------------"'--------'~~----- .. -----------_- _- _- _-_-.. -...n...-................ -_-................ -_- .------------------- - ---- ---.

20 ·

o 2011 2036 2061 2086 211 1 2136 216 1 2186

11mf (yunl

[ Clncidenllll Cooirer OC-pj IaC-Sb . C-Sw I

FMU Deciduous AAC by Cover Type

200

180

160

140

" 120

~ 100 u ~ 80

60

40

20

0 201 ] 2036 2061 2086 2111 2lJ6 216 1 21 86

Tlmf {)~In)

S Ineidmtal Deciduous 0 0

Published on: 10/8/2012

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70,000

60,000

50.000

<

1 .;0.000

<

30.000

20.000

]0,000

12.000

10,000

8,000 . '" ~ ,

6.000 ·

~ ~

4.000 .

2.000

2011 2036

Initial Ageclass Structure by Cover Type

Tlm~ (yran)

OPine ClI ll ckSpn>ec . WhiteSpruc: . DMiu<.lwood ODetiduom

2061

Area Harvested by Cover Type

2086 lit ]

Time (y •• n)

2136 2161 2 186

Published on: 10/8/2012

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16,000,000

H OOO,ooo

~ 12,000,000

• ~ M 10.000.000 • ~ U

8.000,000 ~ A , ~

6.000.000 0

~ 4.000,000

2.000.000

0 201 1 20) 6

300.00

HO.OO

~ ! 200.00 ~ ii ~ ~ ISO.00 ~

! ~ 100.00

> <

.50.00

0 .00 20 11 2036

206 1

Growing Stock Over Time

2086 211 1 T1mt o u n)

2136

--TOIIli D«iduous Opt-l1Ib!eG f'O'oIIina Stock

--TQCaI C(WIifo:tOllll Opm.blc Gro;noi na SII,..k

2 16 1 21K6

Average Volume Per Ha Harvested Over Time

206 1 2086

--f MU o..:iduous A\"ft'Igc Volume ~r Dmd\lous . 1Id Miud ... 'OOd Arn 1I. I\'ulni

--FMU Conifm>lIi A .. mlge Volume PfI" Conifn . 1Id MiMd .. 'ood A"'I II'r>'cslC'd

2 111

Time b tl n ) 2 136 2 16 1 21116

Published on: 10/81201 2

I h~ \Ihrrta-I'adlic 1'\1 ,\ , \r~a 2UII 'I imhrr SlIppl~ -\lIal~sis ~ ~ nil SII ~1111 1 e'Y ~

c 80.000 1 <

60.000

40,000

20,000

DtciduoWl OKlduous/CODlferous ConiferouJIDedduous While S rutc Black S ruC'c Pine

Age Class Distribution

Tlrnt(yun)

0 14 1+ Q t21· 140 " 101· 120 u Rl -100 0 61 .. 30 0 41-60 . 21-40 . 1-W

Average Harvest Ages Over Time

85 114 123 151 116 85

120 12. 136 160 105 120

96 70 84 84 83 90

88 81 96 88

206 89

78 61 81 80 199 85

Published on: 10/812012