JULY 2012 issue

TODAY Newsletter Thanks to our Advertisers:

The Convention planning committee met, along with the Membership, Executive and Budget & Finance committees this past June at the site of the 2013 convention, the Westin La Cantera Resort in San Antonio. Mark your calendars for the next round of LAT committee meetings AND the BOARD of DIRECTORS meeting to be held October 10, 2012, at the Austin Lady Bird Lake Holiday Inn.

Thanks to SPONSORS of the June 2012 committee meetings at the Westin La Cantera Resort in San Antonio – Pictured below are Summer meeting sponsors Herman Sanchez with PLM (left) and Don Galley with Denver Southwest.

Lumbermen’s Association of Texas & Louisiana - 1016 La Posada Drive, Suite 150 Austin, Texas 78752 To receive our weekly email updates, send your email address to craig@lat.org / www.lat.org / phone 512-472-1194

Mark your calendars - April 18-20, 2013

127th Annual Convention at the Westin La Cantera Resort in San Antonio, Texas Great plans are underway for

YOU at the 2013 convention!

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Kathryn Qualls is ILM’s Dallas Claims Adjuster. Her experience and customer-friendly philosophy gives our policyholders the comfort of knowing that ILM will be there in times of need.

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The 2012 CONVENTION this past April in Montgomery, Texas, brought hundreds of dealers and suppliers together to recharge relationships and business opportunities at the beautiful La Torretta Resort, just north of Houston. If you missed it – you missed a lot. Don’t miss next year’s show and events – scheduled for April 18-20, 2013 at the Westin La Cantera Resort in San Antonio, Texas. Twenty plus dealers and suppliers converged in East Texas on Wednesday, April 11 for a tour of Temple-Inland’s Diboll mill, and Temple’s history tour. They went on to Lufkin for lunch and afternoon golf at the Colony Crown Country Club. Thanks to Brenda Elliott of Temple-Inland/International Paper and Rufus Duncan of Higginbotham for hosting this day. Thursday, April 12, a dozen more folks enjoyed a day of touring the area with Ron Hufford of the Texas Forestry Association and Donna Work of the Texas Forest Service. They watched the action at a logging site, walked the Jones State Forest and observed several red cockaded woodpeckers and enjoyed a picnic lunch. Then on to Tomball Forest Products mills in Waller and in Tomball. Also on Thursday the LUMPAC golf tournament rallied more funds for LAT’s political action committee while the golfers enjoyed the links.

2012 Exhibits were buzzing with activity Friday, April 13 and Saturday, April 14. Suppliers gave prizes valued at more than $2,000 throughout the show hours to attending dealers –

Joe Breeden won Collins Company’s gift card, Bobby Bohn won ECMD’s gift certificate,

Michael Hayden won Sherwood Lumber’s gift card, Ronnie Hess won Federated Insurance’s golf putter, Don Gilbreath won Dixie Plywood’s $100 gift card,

Ginger Faircloth won ENAP’s ipod, Tom Hastings won Indiana Lumbermen’s Armani watch,

Ray Sale won Pennsylvania Lumbermen’s gift card, Bobby Tosh and John Weber won Huttig Building Products gift card,

Mary Cunningham won Simpson Strongtie’s gift card, Kyle Williams won Tomball Forest Products cutting board, Cameron McCuller won Idaho Pacific’s hybrid golf club,

Matt Mullin won ECMD’s gift card, Chuck Pool won Simpson Door’s ipod, and

John Turner won Cedar Supply’s outdoor furniture set! Congratulations to the winning golf team at the annual LUMPAC tournament were Corby Biddle Jason Blair Jim Lensing Royce Christopher Longest Drive - Bennett Cromer Closest to the Pin - Craig Blum The LUMPAC Silent Auction stayed busy with eager bidders, most of whom walked away with an assortment of great items for men, women and children, AND raised several thousands of dollars for LUMPAC. Thanks to all of the contributors and winning bidders. And the Gala featured a wonderful evening of recognizing some of the finest in our industry and association – Richard Gaiennie, Gaiennie Lumber, Alexandria, LA Al Cron, Boise Cascade, Dallas, TX Michael Diecidue, Dash Lumber, New Orleans, LA Mike Montalbano, Montalbano Lumber, Houston, TX YOU should have been there if you weren’t!

Remember to mark your calendars for April 18-20, 2013 - at the Westin La Cantera Resort in San Antonio, Texas.

THANK YOU 2012 Convention Sponsors! 4

2012 LUMPAC Golf Tournament Sponsor:

Indiana Lumbermens Mutual Insurance

Lunch Sponsor:

Snavely Forest Products

Hole Sponsors:

Boise Cascade Lumber Insurance Services

Morton Lumber/ Triple A Lumber

R. E. Sweeney Co.

Thursday Evening Welcome Beach Party:

Lumber Insurance Services Roy O. Martin

Friday Morning ROI Seminar with Dr. Barry Lawrence:

Rufus Duncan & HBC-Higginbotham Brothers

Friday Board & Annual Membership Meeting Lunch:

Collins Companies DW Distribution

Lumber Insurance Services Pennsylvania Lumbermens Mutual Insurance

Friday Evening President’s Gala:

Alamo Lumber Lumber Insurance Services McCoy’s Building Supply

Morton Lumber/ Triple A Lumber Temple-Inland

Saturday Breakfast with Exhibitors:

BlueLinx Dixie Plywood Morton Lumber/ Triple A Lumber

Roy O. Martin Lumber Co.

And a BIG THANKS to Alan Oakes, ,

for publishing the 2012 Convention Program.

Your Trusted Source for Lumber & Building Materials

PURCHASING POWERENAP brings the purchasing power of over 200 dealers with over 400 locations to the marketplace. Our long-standing relationships with over 250 vendors support dealers with pricing, terms, rebates, delivery and quality! In times of market movement and product constraints, ENAP leverages these relationships to ensure our dealers have a competitive position in our market.

EXPERTISE & SERVICEAs an extension of our dealers’ capability, ENAP hires and trains professionals to watch the market, make purchasing recommendations and provide consulting expertise to our dealer owners and their buyers. ENAP service levels are second to none in the industry. Our traders and staff are proactive, responsive and seek accuracy and transparency in all transactions. ENAP is making investments in training and systems to remain the LBM cooperative who services its members best.

INDEPENDENCE & FLEXIBILITYWe recognize that each dealer competes differently in their market. Products, quality and inventory requirements vary from dealer to dealer, even within the same region! This may include the need for affiliation with a prominent hardware cooperative to complement the hardware services of the ENAP vendor community.

DEALER SATISFACTION“Moynihan Lumber’s association with ENAP has provided advantages in both product and price in areas ranging from lumber and panel goods to hardlines and millwork.” Jack Moynihan, Moynihan Lumber, MA

“ENAP and their veteran staff members operate seamlessly as a direct extension of my own purchasing department, constantly working and striving towards gaining all competitive advantages possible in a difficult economic climate.” Cory Poulin, Poulin Lumber, VT

To learn how ENAP can help you grow your business, call Tom Molloy at 800.456.4300 or email tmolloy@enap.com.

2012 CONVENTION recap 6 Barbara, Thanks for all you do – Mary Cunningham, Circle Hardware & Lumber

Craig, it was nice to meet you in person…, thanks for all the hard work you put in to the show. We’ll definitely be there in 2013…. thanks, Kevin O’Connor, DMSI.

Barbara, Thanks for all your help during the LAT convention. I greatly appreciate being selected the Texas Lumberman of the Year. Here is a picture of my family taken at the convention – Mike Montalbano

Texas Lumberman of the Year, Mike Montalbano (center) with his family.

Mike & Terry Diecidue Louisiana Associate of the Year Al Cron, Boise Cascade Louisiana Lumber Dealer Richard Gaiennie and family. Lifetime Achievement Award Award

2012 CONVENTION recap 7

8

Support these 2012 LAT Exhibitors with your business!

BlueLinx Boise Cascade Capital Lumber

Cedar Creek Texas Cedar Supply CertainTeed

Collins Companies Denver Southwest

Dixie Plywood and Lumber DMSi Software Do It Best

DW Distribution East Texas Forest Products

ECMD ENAP Federated Insurance

Gaiennie Lumber GRK Fasteners Guardian Building Products

Handy Hardware HDW Hixson Lumber Sales

Holland Southwest International Hoover Treated Wood Products

Huber Engineered Woods Huttig Building Products

Idaho Timber of Texas Indiana Lumbermens Mutual Insurance

Lumber Insurance Services Orgill Pacific MDF Products

Pennsylvania Lumbermens Mutual Insurance

PrimeSource Progressive Solutions Rmax

Roy O. Martin Lumber Sherwood Lumber Simpson Door Company

Snavely Forest Products Swanson Group

Tamlyn Temple-Inland/Intl Paper Tomball Forest Products

W.W. Cannon Weyerhaeuser

2012 CONVENTION recap 9

The Stars at Night

Are Big and Bright

Deep in the Heart of Texas!

Mark your calendars!

April 18-20, 2013

127th Annual Convention at the

Westin La Cantera Resort in San Antonio, Texas

* GREAT DEALS for DEALERS

* QUALITY CUSTOMERS for exhibiting SUPPLIERS

* Good networking

and fun for ALL

Great plans are

underway for YOU

at the

2013 convention!

2012-2013 OFFICERS & DIRECTORS 11

MANY THANKS to the following for their volunteer leadership to the association over the next year(s):

President Matt Mullin Alamo Lumber San Antonio, TX First Vice President John Jones Cassity Jones Lumber & Hardware Longview, TX Second Vice President Ted Galbraith Foxworth-Galbraith Lumber Dallas, TX Treasurer Marilyn Archer (1st year of 2 year term) Morton Lumber Borger, TX Secretary Michael Hayden Riverside Lumber New Orleans, LA Sgt. at Arms Brian McCoy McCoy’s Building Supply San Marcos, TX Associate Vice President Brenda Elliott Temple-Inland Diboll, TX Louisiana Vice President Jon Cromwell Riverside Lumber New Orleans, LA Immediate Past President Rufus Duncan HBC/Higginbothams Lufkin / Comanche, TX

DISTRICT 1 – West Texas 1. Marilyn Archer, Borger, TX – Treasurer (year 1 of 2 year term) 2. Steve Herren, Harris Lumber & Hardware, Big Spring, TX 3. Ray Sale, Builders & Homeowners Supply, Midland, TX

Past Presidents: Ray Sale, Steve Herren, Robert Archer

DISTRICT 2 – South Texas 1. DEALER AT LARGE - Kyle Williams, BMC, Houston, TX 2. DEALER AT LARGE - Walter Foxworth, Foxworth Galbraith, Dallas, TX 3. Matt Mullin, Alamo Lumber, San Antonio, TX - President 4. Kory Klein, Cedar Creek, San Antonio, TX 5. Gary Weaver, TimberTech, Cibolo, TX Past Presidents: Dan Coleman, Cally Coleman Fromme

DISTRICT 3 – Central Texas

1. Bruce Agness, Lumber Insurance Services, Austin, TX 2. Associate Member – see East Texas 3. Ann Chapman, Woodson, Caldwell, TX 4. Rufus Duncan, Higginbotham / BTB, Comanche, TX - Immediate Past President 5. Brian McCoy, McCoy’s Building Supply, San Marcos - Sgt at Arms

Past Presidents Rufus Duncan

DISTRICT 4 – East Texas 1. Joe Breeden, Montalbano Lumber, Houston, TX (2nd VP IN 2013) 2. Brenda Elliott, Temple Inland, Diboll, TX – Associate VP 3. JoAnn Gillebaard, Holland Southwest Intl., Houston , TX 4. John Jones, Cassity Jones Lumber & Hardware, Longview, TX - First VP 5. Telisa Marsh, Capital Lumber, Houston, TX 6. Mike Pollok, Weyerhaeuser, Houston, TX 7. John Weber, Deer Park Lumber, Deer Park, TX

Past Presidents: Dick Ledermann,Kyle Williams,Bob Ashley

DISTRICT 5 – North Texas 1. Mike Aaron, Boise, Dallas, TX 2. Dave Cusey, PrimeSource, Dallas, TX 3. Aaron Elliott, DW, Desoto, TX 4. Ted Galbraith, Foxworth – Galbraith Lumber, Dallas, TX – Second VP 5. Ronnie Hess, Bridgeport Building Center, Bridgeport, TX 6. Gary Raven, Builders FirstSource, Dallas, TX (NLBMDA Director eff 11/2012)

Past Presidents: Walter Foxworth, Lonnie Goolsby, Don DeGroot, Kyle McCarley, Bart Graves, Chuck Pool

DISTRICT 6 - Louisiana 1. Bobby Byrd, Roy O. Martin, Alexandria, LA 2. Mike Hayden, Riverside Lumber, New Orleans, LA - Secretary 3. Kenny Beauvais, HDW, Shreveport, LA 4. Jon Cromwell, Riverside Lumber, New Orleans, LA - Louisiana VP

Past Presidents: A.J. Harris, Steve Ashy, , Dudley Webre, Jon Cromwell, Alan Martin, Frank Fazzio

Matt Mullin LAT President

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LOUISIANA - Lead Regulations 13

On Jan. 1, 2013, Louisiana will join the growing list of U.S. states, counties and cities to strongly regulate the lead content within pipes, fittings and fixtures that come into contact with potable water. IAPMO R&T is already assisting manufacturers by offering certification to the imminent new mandate. Louisiana House Bill HB.471 "prohibits the use, installation or repair, introduction into commerce, or selling pipes, fittings, fixtures, solder, or flux that is not 'lead free' when used for conveying water for human consumption." According to the bill, "lead free" is defined as not more than 0.2 percent lead when used with respect to solder and flux and not more than a weighted average of 0.25 percent when used with respect to the wetted surfaces of pipes and pipe fittings, plumbing fittings, and fixtures. IAPMO R&T was one of the first third-party certification bodies in North America to offer listings to the various recently passed "low-lead" standards and laws. These include:

Section 116875 of the California Health & Safety Code (commonly known as AB1953) Federal Lead Plumbing Law (commonly known as U.S. Senate Bill No. S.3874 "Reduction of Lead in Drinking

Water Act") Vermont's Lead Reduction Law (commonly known as Vermont Act 193) Maryland's Lead Reduction Law (commonly known as Maryland House Bill HB.372) Louisiana's Lead Reduction Law (commonly known as Louisiana House Bill HB.471) NSF/ANSI 372-2010 The latest edition of the NSF/ANSI 61 Annex G

All federal and state plumbing laws, as well as NSF/ANSI 61 Annex G and NSF/ANSI 372, certified by IAPMO R&T will be listed in one file. Manufacturers need only specify to IAPMO R&T which standard(s)/law(s) they wish to apply. Manufacturers have long trusted IAPMO R&T for its foresight in assisting them to meet the dynamic legislative demands on their faucets, valves, fittings and other products that contact drinking water. IAPMO and IAPMO R&T have been certifying plumbing products to be in compliance with standards governing their use since the 1940s. IAPMO R&T is fully qualified and accredited by the American National Standards Institute (ANSI) and Standards Council of Canada (SCC) to provide certification services and listing to Louisiana's or any other applicable lead-reduction law. Manufacturers can request more information on low-lead certification by contacting Anish Desai at (909) 472-4121 or anish.desai@iapmort.org. For more information on this and other services provided by IAPMO R&T, please visit www.iapmort.org.

Court Decision in Lead RRP Opt-Out Litigation The D.C. Circuit’s denied the decision in our case challenging EPA’s removal of the opt-out provision from the Lead; Renovation, Repair and Painting Program Rule (RRP Rule). NLBMDA joined with NAHB, WDMA and HPBA in challenging the removal of the opt-out clause in 2010. Unfortunately, the court denied our petition for review and has upheld EPA’s decision to remove the opt-out provision. Essentially, the court holds that the Supreme Court’s decision in FCC v. Fox Television Stations, Inc. “foreclosed” our argument that the agency had to offer a better showing as to why it had made such an abrupt about-face with regard to its recently promulgated RRP Rule. Instead, the court found that EPA had only to recognize that it was changing its regulation and offer a “reasoned statement” as to why – a fairly low bar. Interestingly enough, at the end of the opinion, the court clearly recognizes that elections matter: “[T]here were in fact two other events of note…that go a long way toward explaining why EPA reconsidered the opt-out provision: namely, the inauguration of a new President and the confirmation of a new EPA Administrator.” While we are disappointed with the court’s ruling today. we are encouraged, however, by the House and Senate’s recently introduced Lead Exposure Reduction Amendments Act of 2012(H.R. 5911 and S. 2148), which call for the reinstatement of the Opt-Out provision. We will continue to work toward passage of the legislation and the court decision will make it all the more urgent.

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INDUSTRY NEWS 15 Southern Pine Transition to New Design Values Effective June 1, 2012 The Southern Pine Inspection Bureau (SPIB) has issued Supplement No.9 to the 2002 Standard Grading Rules for Southern Pine Lumber providing new design values effective June 1, 2012. The only design values that will change on June 1 apply to visually graded Southern Pine and Mixed Southern Pine sized 2” to 4” wide and 2” to 4” thick (2x2s through 4x4s) in No.2 and lower grades (No.2, No.3, Stud, Construction, Standard and Utility). This also includes new design values for No.2 Dense and No.2 NonDense Southern Pine. Design values for all other grades and sizes of visually graded Southern Pine remain the same, pending results of testing scheduled for completion later this year. The last major change for visually graded dimension lumber occurred in 1991 when design values for Southern Pine and other North American species were published based on In-Grade testing of full-size samples of commercially produced lumber. Since 1994, SPIB has conducted an annual resource monitoring program developed in collaboration with the U.S. Forest Products Laboratory (FPL). SPIB is the first rules-writing agency to publish new design values. Rules-writing agencies responsible for other species are in different stages for evaluating design values. Design values for structural lumber undergo a rigorous approval process. SPIB partnered with Timber Products Inspection to sample No.2 2x4 test specimens according to a plan approved by the American Lumber Standard Committee (ALSC) Board of Review. SPIB and Timber Products conducted destructive tests in bending and tension, plus gathered stiffness and property data, all in accordance with ASTM International standards. Throughout the process, technical review was performed by FPL. The ALSC Board of Review approved the new design values early in 2012 with a recommended effective date of June 1, 2012. As June 1 approaches, users should begin using the new design values and revised span tables if they haven’t done so already. The intent of the six-month transition period was to minimize project delays and supply chain disruptions by providing time to begin to use the new design values or switch to other Southern Pine grades or sizes meeting performance requirements. Southern Pine users have many available product options including visually graded dimension lumber and an increasing supply of mechanically graded lumber. Many producers and key customer groups have already successfully transitioned to the new design values with minimal disruption to their businesses. Building codes reference design values certified by the ALSC Board of Review. The American Wood Council (AWC) publishes these design values in a supplement to the code-referenced National Design Specification® (NDS®) for Wood Construction. Building codes also include span tables and other prescriptive requirements that will need to be amended to reflect the new design values. Visit www.awc.org to download the AWC Addendum to Design Values for Wood Construction, revised prescriptive span tables and other updates to AWC’s standards and design tools. Also visit www.southernpine.com to obtain easy-to-use span tables for specific grades and sizes of Southern Pine lumber. SPIB and Timber Products are currently working to complete the full In-Grade matrix by destructively testing Select Structural 2x4s, No.2 and Select Structural 2x8s, and No.2 and Select Structural 2x10s in bending, tension and compression. Additional design value changes are expected once all the testing is completed later this year. Moving forward, Southern Pine will continue to be monitored with annual destructive testing. Southern Pine remains strong, dependable Southern Pine’s strength is comparable to other softwood species used in residential and commercial construction. “Southern Pine remains one of the best construction products on the market today,” said Cathy Kaake, senior director of engineered and framing markets for the Southern Forest Products Association (SFPA). “Southern Pine lumber provides a great value in a wide variety of applications. From framing a house to building a deck, Southern Pine continues to be a dependable product for any project,” added Cathy. Southern Pine forests are some of the most productive and sustainable timberlands in the world, capturing large amounts of carbon from the air and storing it in lumber used every day.

16 Southern Pine is grown and manufactured in the U.S. South, further improving local economies, reducing transportation costs and minimizing impacts on the environment. SFPA continues to provide answers to common questions, including impacts on real-world applications. One common question is, “Will new design values affect existing homes?” The short answer: “No. The new design values only apply to new construction, not existing construction.” Southern Pine users can find answers to more than 30 questions and other helpful information by visiting www.southernpine.com. SFPA does not test lumber or establish design values. SFPA’s primary function is to market lumber products and to help users understand Southern Pine grading rules and design values.

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HIRE RIGHT THE FIRST TIME.- LSC - the Lumbermen’s Service Corporation – CAN PROVIDE YOU WITH MOTOR VEHICLE REPORTS & CRIMINAL BACKGROUND CHECKS ON POTENTIAL EMPLOYEES. CALL CRAIG & REQUEST THE PROPER FORMS FOR YOUR APPLICANTS TO SIGN & RETURN to LAT.

Call – 800-749-5862 Fax – 512-472-7378

Will Credit Be The Spoiler In Housing Recovery? by Chris Arnold - June 14, 2012 Amid all the economic uncertainty over the credit crisis in Europe and slow job growth in the U.S., one sector may be looking up. The U.S. housing market is finally showing more signs of recovery, according to a report being released Thursday by Harvard University. Harvard comes out with this study once a year, and this time around, it's painting a much brighter picture. Eric Belsky, the managing director of the Harvard Joint Center for Housing Studies, says a few years ago, in order to get people to buy houses, the government had to entice them with a big homebuyer tax credit. "When you think about what life was like, jobs were being lost to the rate of 700,000 per month, the stock market was still falling, and yet people came out of their bunkers to buy homes because they thought it was a good deal to be able to get cash from the federal government," he says. Now, the economy is gaining at least some jobs every month. Home prices in many areas have stopped falling. In some places, they've started to rise. So more Americans are deciding — all on their own — that it's a good time to buy. "We're seeing existing home sales have been up for 10 months in a row," Belsky says. "We've seen prices bottom out. All of this suggests that housing is beginning to turn a page, and the only thing that would make the page turn back again is if the broader economy goes off the rails." But so far, Belsky says, people are slowly getting more confident. "Think about how careful people are moving back into the market when prices have fallen this much," he says. "You know, the opportunity to potentially buy at or near the bottom of a cycle is great. And I think people are beginning to appreciate that." Prices by one measure are down 35 percent nationally. Interest rates are at record lows. Meanwhile, the cost of renting a house or apartment has been rising. When you compare the cost of owning versus the cost of renting, "it hasn't looked this good in 40 to 50 years," Belsky says. Recent surveys show that despite the housing crash, the vast majority of Americans still aspire to own a home if they don't own one already. But many people don't have the resources to buy a home. Unemployment is still above 8 percent. Millions more Americans are underemployed. Are Lenders Too Cautious? Many in the industry feel that after all the crazy lending during the housing bubble, credit now has gotten too tight. "I am extremely concerned today about an overcorrection in the credit markets — the avoidance of risk by the lenders across the country that we depend on to extend credit to American families," says David Stevens, president of the Mortgage Bankers Association. Stevens represents those lenders, but he's still concerned that they're being too cautious. And that could mean that this slow and painful trudge out of recession will be longer and more painful than it needs to be. We shouldn't create a blockade that eliminates well-qualified families who want to own a home to raise their family from gaining access to homeownership, and I think that's the tipping point that we're facing right now," Stevens says. He says that with new regulations still taking shape in Washington, banks face a lot of uncertainty about what will happen if a loan they make today goes bad five years down the road. So he's hoping regulators come up with smart and clear rules that will encourage lending.

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MEMBER NEWS

ENAP Experiences Substantial Growth in Uncertain Times ENAP is pleased to announce the addition of their newest stockholders: • Feldman Lumber with locations in Brooklyn, Great Neck and Maspeth, NY • Curry Lumber in Wooster, OH • Tuttle Lumber in San Marcos and Lockhart, TX • Oxford Lumber in Oxford, Jacksonville, Roanoke and Talladega, AL • Wehrung’s Lumber and Home Center in Ottsville, PA These well-established independents put their confidence in ENAP’s ability to help them grow their business. These additions bring the total to 11 new stockholders across multiple regions, increasing market share and profitability to the entire membership. From Texas to New York, successful independents have joined ENAP looking for a complete source for their lumber and building materials. ENAP’s philosophy of flexibility and transparency draws Pro-yards and Home Centers alike who feel that their co-op should complement their operation not dictate how they do business. Early in 2012 ENAP made a solid commitment to the southern region by investing in a sales office in Monroe, LA. There is new ground to be tapped for ENAP adding yards in a region thirsty for a service-oriented, full- line co-op with both tenured professionals and a newer forward-thinking management team. “We welcome these new members and our southern staff, and are pleased with the diversity of our membership growth; both geographically and by industry segment. This growth is a credit to the quality and strength of our membership and staff” comments Stephen Sallah, President & CEO. It is a springboard to the future of ENAP as a leader in this channel of our industry. ENAP, Inc. is a member owned forest products and building materials cooperative whose corporate headquarters are in New Windsor, New York. ENAP has been servicing its members for over 45 years and is comprised of premier independent lumber retailers.

TEXAS LEGISLATIVE NEWS The 2012 Texas primaries on May 29 produced favorable results for most of the candidates endorsed by the TCJL PAC. There were a few upsets and runoffs as well. Mark your summer calendar for the primary runoffs beginning with early voting July 23 through July 27 and election day July 31, 2012. For complete results in both primaries, see the Texas Secretary of State website at www.sos.state.tx.us U.S. SENATE RUNOFF Lt. Governor David Dewhurst will face Ted Cruz in the runoff. Of 1.4 million total votes cast in this race, Governor Dewhurst received 45% of the vote to Cruz’s 34%. Third place went to former Dallas mayor Tom Leppert with 13%. Dewhurst and Cruz are working furiously to motivate their supporters and gain support of the other candidates. An endorsement by Leppert would be a huge advantage to either runoff candidate. There is some concern that the July 31 election date could be tough for Dewhurst. Cruz is supported by a respectable number of the highly motivated Tea Party voters, who are perceived as more interested and more likely to turn out for a mid-summer election. Lt. Governor Dewhurst has the endorsement of Texas Civil Justice League. In the Democratic primary, former state representative Paul Sadler will face Grady Yarbrough in the runoff. TEXAS SUPREME COURT RUNOFF Justice David Medina will face Houston lawyer John Devine in the runoff. TCJL PAC has always supported Justice Medina and will take an active role in his runoff effort. This race is critically important to the future of the Supreme Court of Texas. Medina has the strong support of Governor Perry and has been endorsed by an impressive array of current and former state officials, Republican organizations, and trade and professional organizations. The winner of this runoff will face a Libertarian opponent in November. Justice Medina has the strong support and endorsement of TCJL PAC. Justice Don Willett won with 57% of the vote against former Justice Steven Wayne Smith, who appeared on this ballot under the name Steve Smith. Willett has a Libertarian opponent in November. Justice Willett has the support and endorsement of TCJL PAC. Senior Justice Nathan Hecht was unopposed in the primary, but faces both a Libertarian and Democrat Michelle Petty in November. Justice Hecht has the support and endorsement of TCJL PAC.

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DISTRICT COURTS OF APPEAL 3rd Court of Appeals (Austin) Attorney Scott Field (R) defeated Madeleine Connor (R) for the chance to challenge Diane Henson (D) for Place 3 in November. 10th Court of Appeals (Waco) Chief Justice Tom Gray (R) and 6th Court of Appeals (Texarkana) Justice Bailey Moseley (R) were successful in fending off primary challenges. 5th Court of Appeals (Dallas) Justice Martin Richter (R) was unsuccessful, and was defeated by challenger David Lewis (R). Attorney Jaime Tijerina (R) was unsuccessful in his bid for the open Place 4 on the 13th Court of Appeals (Corpus Christi) and the nomination was won by Brad Condit. It should be noted, however, that Tijerina had a great deal of support around the state and has been stationed in Afghanistan for the duration of his campaign and has conducted his business from there with the assistance of his brother, Tomas Tijerina of Raymondville. RUNOFF 5th Court of Appeals (Dallas) Place 2 is an open seat, and five Republicans competed for that nomination. David Evans and Bill Whitehill will face off in the runoff on July 31. Of 111,000 total votes cast in that race in the primary, Evans got 32% and Whitehill got 26%. All five contenders were reported to be good candidates, so TCJL PAC did not make an endorsement in that race. Mike Wilson (R) defeated appointee Eric Kalenak (R) for the Place 2 unexpired term on the 11th Court of Appeals (Eastland). Attorney Brett Busby (R) was appointed on June 6, 2012 to the open Place 3 on the 14th Court of Appeals (Houston). Busby had filed for this seat in the Republican primary and was unopposed. He will run as the incumbent against Barbara Gardner (D) in November. In the Democrat primary, Rebecca Martinez (D) defeated Carmen Samaniego (D) and will challenge Justice Phylis Speedlin (R) in November for Place 7 on the 4th Court of Appeals (San Antonio). 8th Court of Appeals (El Paso) appointed Chief Justice Ann McClure (D) won her race for the unexpired term. RUNOFF Marcos Lizarraga (D) and Yvonne Rodriguez (D) will go to a runoff for Place 2, Chief Ann Crawford McClure’s former seat, on the 8th Court of Appeals (El Paso).

For an updated list of November Judicial Races, see www.tcjlpac.com TEXAS SENATE Incumbent senators Robert Nichols (R-Jacksonville), Tommy Williams (R-The Woodlands), Robert Duncan (R-Lubbock), Craig Estes (R-Wichita Falls) and Kel Seliger (R-Amarillo) easily defeated primary challengers. Nichols and Seliger are unopposed in November. Nichols, Williams, Duncan, Estes and Seliger all have the support and endorsement of TCJL PAC. RUNOFF SD25 Incumbent Jeff Wentworth (R-San Antonio) had two Republican challengers. Former Railroad Commissioner Elizabeth Ames Jones and ER physician Donna Campbell filed for SD25, and the race between Wentworth and Jones was particularly aggressive and negative. Wentworth earned 36% of the nearly 76,000 votes, with Campbell at 34% and Jones at 31%. Wentworth and Campbell will face off in July, and again the Tea Party may have an effect in this race. Campbell is particularly strong with that group. Of note in this race is the massive amount of money raised and spent by Wentworth and Jones. Wentworth raised about $1,650,000 and Jones raised about $2,320,000. Dr. Campbell, on the other hand, made the runoff while raising only about $150,000. This race will continue to make the news over the next couple months. Several senators did not seek re-election, leaving four open seats up for grabs. Representative Charles Schwertner (R-Georgetown) won the nomination to succeed Steve Ogden in SD5. Dr. Schwertner has only a Libertarian opponent in November. Representative Ken Paxton (R-McKinney) won the nomination to succeed Florence Shapiro (SD8), and he has both a Democrat and Libertarian opponent in November. Representatives Kelly Hancock (R-North Richland Hills) and Todd Smith (R-Bedford) competed for the Republican nomination to succeed Chris Harris (SD9). Hancock won with 65% of the vote, and has both a Democrat and Libertarian opponent in November. Representative Larry Taylor (R-Friendswood) defeated two challengers for the chance to replace Mike Jackson (SD11). Taylor has a Democrat opponent in November. Schwertner, Paxton, Hancock and Taylor all have the support and endorsement of TCJL PAC. In November, Representative Mark Shelton (R-Fort Worth) will challenge incumbent Senator Wendy Davis (D-Fort Worth) in SD10, now perhaps more favorable for Dr. Shelton. There were no primary challenges to incumbent Democrat senators.

For a complete list of Texas legislative races in November, see www.txroundtable.com. TEXAS HOUSE Several House incumbents were unsuccessful in their bid for re-election. In HD6, Leo Berman (R-Tyler) lost to attorney Matt Schaeffer (R-Tyler). In HD9, Wayne Christian (R-Center) lost to Chris Paddie (R-Marshall) who formerly served as mayor of Marshall. In HD15, Rob Eissler (R-The Woodlands) lost to businessman Steve Toth (R-The Woodlands). In HD57, Marva Beck (R-Centerville) lost to title company president Trent Ashby (R-Lufkin). In HD98, Vicki Truitt (R-Keller) lost to businessman Giovannio Capriglione (R-Southlake). Continued….

22 RUNOFFS Several other incumbents are going to a runoff. HD11 Chuck Hopson (R-Jacksonville), HD59 Sid Miller (R-Stephenville), HD88 Jim Landtroop (R-Plainview), and HD43 J.M. Lozano (R-Falfurrias) all face serious challengers on July 31. The sixteen new House members are: HD3 Cecil Bell (R-Magnolia), HD6 Matt Schaefer (R-Tyler), HD9 Chris Paddie (R-Marshall), HD15 Steven Toth (R-The Woodlands), HD20 Marsha Farney (R-Georgetown), HD33 Scott Turner (R-Frisco), HD35 Oscar Longoria (D-Mission), HD57 Trent Ashby (R-Lufkin), HD69 James Frank (R-Wichita Falls), HD70 Scott Sanford (R-McKinney), HD75 Mary Gonzalez (D-Clint), HD92 Jonathan Stickland (R-Bedford), HD93 Matt Krause (R-Fort Worth), HD98 Giovanni Capriglione (R-Southlake), HD101 Chris Turner (D-Arlington), HD106 Patrick Fallon (R-Frisco), and HD110 Toni Rose (D-Dallas).

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CALENDAR

2012 September 25 hotel reservations deadline for the October 10 Committee and Board meetings (Holiday Inn Lady Bird Lake, Austin) October 6-12 Northwestern Lumber Association 2012 Northern California Mill Tour

October 10 Fall Board & Committee meetings at Holiday Inn Lady Bird Lake, Austin

October 24-26 NLBMDA Pro-Dealer Conference in Savannah November 6 ELECTION DAY December – TBD Louisiana Gathering in New Orleans

2013 January 8 83rd Texas Legislature convenes at noon January 22-24 International Builders Show, Las Vegas March 18-20 NLBMDA Legislative Conference at Crystal City Marriott in Arlington April 8 Louisiana 2013 Regular Legislative Session convenes at noon

April 18-20 127th Annual Convention at Westin La Cantera Resort, San Antonio

Lumbermen’s Association of Texas & Louisiana - 1016 La Posada Drive, Suite 150 Austin, Texas 78752 To receive our weekly email updates, send your email address to craig@lat.org / www.lat.org / phone 512-472-1194

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