or-osha proposes new cab rule · 2014 wage survey vol. 26 no. 04 april, 2014 *800-452-6023* po box...

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The AOL Mainline April, 2014 2014 Wage Survey Vol. 26 No. 04 April, 2014 *800-452-6023* PO Box 12339 Salem, OR 97309 *www.oregonloggers.org* by Jim Geisinger, Executive Vice President A OL needs your help. Every year we send out a sur- vey to collect the wage in- formation from our member companies on what the hourly wage is that you pay to your workers. This infor- mation is collected anony- mously and confidentially. We are only asking our members to disclose their district or town. In doing so, this enables us to group the hourly wage data by geographic area, which we have found to be more helpful to our members than overall state wide av- erages. The Wage Survey work- sheet was mailed on March 04 and if you haven’t al- ready received it, then please look for it in your mail box. We are asking that you fill out the infor- mation and return it to us in the envelope provided before, or by April 15. by Jim Geisinger, Executive Vice President OR-OSHA Proposes New Cab Rule O regon OSHA filed a proposed rule on March 11, 2014 that would allow the con- tinued use of older logging machines that do not have the new reinforced “tip- over” cabs. Currently, most logging machines must have the new cabs by July 1, 2014. The exact wording of the proposed rule is as follows: 437-007-0780 Protective Structures for Operators, Machines Used On or Af- ter July 1, 2014. Each machine used in forest ac- tivities on or after July 1, 2014, that is excluded from the ROPS, SAE J1040 MAY94 or ISO 8082:1994 requirements, because it is capable of 360 degree up- per structure rotation, must: 1. Meet the same require- ments as those machines manufactured on or after July 1, 2004, or 2. Be limited to use on surfaces that are prepared, excavated or constructed of solid materials with a slope of less than 20 per- cent when handling logs or other materials, or 3. Have a clear path of travel and be limited to slopes of 40 percent or less when used only as anchors for cable yarding systems. EXCEPTION: 437-007- 0780 does not apply to ma- chines manufactured be- fore July 1, 2004 that are equipped and maintained with a front and top guard structure meeting the per- formance criteria of SAE J1356:FEB88 or ISO 10262:1998 Level II. (Emphasis added.) The proposed rule is in response to concerns ex- pressed by many AOL members that the looming July 1, 2014 deadline for having the new engineered cabs was unrealistic given the difficult economic peri- od the industry has endured for the past several years. Also, there is not a compel- ling record of accidents or injuries associated with the pre-July, 2004 cabs to war- rant a strict enforcement of the upcoming July 1 dead- line. A hearing will be held on May 1, 2014 to take public comments on the proposed rule. The hearing will be held at 2:00 pm in Confer- ence Room F at the Labor & Industries Building in Salem, Oregon. Written comments will also be ac- cepted by Oregon OSHA. After receipt of your completed worksheets and our tabulation of the data provided, we will send out our final wage survey re- port to you by the end of May or early June. Please remember that our survey results are only as mean- ingful as our member re- sponse. We need every Regular, Cooperative and Affiliate Member to partici- pate. Thank you in advance for your valuable input for this year’s wage survey. If you have any questions, please don’t hesitate to call Dorena or Randy at the AOL office. Stream Protecon Rules Under Aack………...Page 3 3 Points of Contact………………………..…………....Page 4 APRIL 2014 Edited with the trial version of Foxit Advanced PDF Editor To remove this notice, visit: www.foxitsoftware.com/shopping

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Page 1: OR-OSHA Proposes New Cab Rule · 2014 Wage Survey Vol. 26 No. 04 April, 2014 *800-452-6023* PO Box 12339 Salem, OR 97309 ** A by Jim Geisinger, Executive Vice President OL needs your

The AOL Mainline April, 2014

2014 Wage Survey

Vol. 26 No. 04 April, 2014 *800-452-6023* PO Box 12339 Salem, OR 97309 *www.oregonloggers.org*

by Jim Geisinger, Executive Vice President

A OL needs your help. Every year we send out a sur-

vey to collect the wage in-formation from our member companies on what the hourly wage is that you pay to your workers. This infor-mation is collected anony-mously and confidentially. We are only asking our members to disclose their district or town. In doing so, this enables us to group the hourly wage data by

geographic area, which we have found to be more helpful to our members than overall state wide av-erages. The Wage Survey work-sheet was mailed on March 04 and if you haven’t al-ready received it, then please look for it in your mail box. We are asking that you fill out the infor-mation and return it to us in the envelope provided before, or by April 15.

by Jim Geisinger, Executive Vice President

OR-OSHA Proposes New Cab Rule

O regon OSHA filed a proposed rule on March 11, 2014

that would allow the con-tinued use of older logging machines that do not have the new reinforced “tip-over” cabs. Currently, most logging machines must have the new cabs by July 1, 2014. The exact wording of the proposed rule is as follows: 437-007-0780 Protective Structures for Operators, Machines Used On or Af-ter July 1, 2014. Each machine used in forest ac-tivities on or after July 1, 2014, that is excluded from

the ROPS, SAE J1040 MAY94 or ISO 8082:1994 requirements, because it is capable of 360 degree up-per structure rotation, must: 1. Meet the same require-ments as those machines manufactured on or after July 1, 2004, or 2. Be limited to use on surfaces that are prepared, excavated or constructed of solid materials with a slope of less than 20 per-cent when handling logs or other materials, or 3. Have a clear path of travel and be limited to slopes of 40 percent or less

when used only as anchors for cable yarding systems. EXCEPTION: 437-007-0780 does not apply to ma-chines manufactured be-fore July 1, 2004 that are equipped and maintained with a front and top guard structure meeting the per-formance criteria of SAE J1356:FEB88 or ISO 10262:1998 Level II. (Emphasis added.) The proposed rule is in response to concerns ex-pressed by many AOL members that the looming July 1, 2014 deadline for having the new engineered cabs was unrealistic given

the difficult economic peri-od the industry has endured for the past several years. Also, there is not a compel-ling record of accidents or injuries associated with the pre-July, 2004 cabs to war-rant a strict enforcement of the upcoming July 1 dead-line. A hearing will be held on May 1, 2014 to take public comments on the proposed rule. The hearing will be held at 2:00 pm in Confer-ence Room F at the Labor & Industries Building in Salem, Oregon. Written comments will also be ac-cepted by Oregon OSHA.

After receipt of your completed worksheets and our tabulation of the data provided, we will send out our final wage survey re-port to you by the end of May or early June. Please remember that our survey results are only as mean-ingful as our member re-

sponse. We need every Regular, Cooperative and Affiliate Member to partici-pate. Thank you in advance for your valuable input for this year’s wage survey. If you have any questions, please don’t hesitate to call Dorena or Randy at the AOL office.

Stream Protec�on Rules Under A�ack………...Page 3

3 Points of Contact………………………..…………....Page 4

APRIL 2014

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The AOL Mainline April, 2014

PAGE 2 “The Official Newsletter of Associated Oregon Loggers, Inc.”

As We See It Road Permit Issues Resolved… For Now

by Brian Nelson, President of the American Loggers Council

Based out of Cornell, Michigan

P resident Obama signed into law on February 7, 2014 The

Agricultural Act of 2014 better known as the Farm Bill. The Senate had passed it a few days earlier by a 68-32 vote with bipartisan sup-port. The Act contains nu-merous forestry provisions that are important to our industry. Most would agree that the forestry provisions in this Farm Bill are some of the best we’ve seen in recent memory. It was en-couraging to see that the two sides could put partisan politics aside and come to-gether to pass a Farm Bill that should be very benefi-cial to our industry. Of the numerous forestry provisions in the bill, argua-bly none are higher profile or has the potential to have a greater impact on our in-dustry than the Forest Roads Provision. It will preserve the treatment of forest roads and forest management as “non-point sources” subject to state derived Best Man-agement Practices under the Clean Water Act. More im-portantly it will provide le-gal and economic certainty by codifying the EPA’s long standing policy that speci-fied silvicultural activities do not require a National Pollutant Discharge Elimi-nation System (NPDES) permit. This means that for

the U.S. Environmental Protection Agency, that forestry activities should continue to use state devel-oped Best Management Practices (BMP’s) as it has successfully done for the past 38 years under the CWA. While it appears the issue is now resolved, the language in the legislation does leave the EPA the authority to take measures regarding these activities if future circumstances demonstrate the need to address adverse impacts to water quality caused by point source discharges of storm water from silvicul-tural activities. This has been a long and tedious road with nu-merous groups and organi-zations from across the country working together to find a solution to this problem. With this success comes responsibility. There has been considera-ble time and effort on the part of many to get this issue resolved and we sure-ly wouldn’t want to do an-ything to jeopardize it. I’m sure there will be groups out there that will have us “under a microscope”, so we all need to do our part to protect the quality of our waters. We can do this by being diligent in applying BMP’s to all activities on

our logging jobs. It took a lot of work to get this re-solved and will take the effort of all of us not to lose it. Other key forestry provisions in the Farm Bill include: 1. Permanent reauthoriza-tion of stewardship con-tracting authority. 2. Authorizes Categorical Exclusions up to 3,000 acres for disease and insect infestations. 3. Authorizes Good Neigh-bor Authority. 4. Authorizes designation by description and designa-tion by prescription as valid methods of designation for timber sales. 5. Includes forest products within the labeling and pro-curement preferences of the USDA’s “bio based” pro-gram. 6. Full PILT funding pay-ments to counties and schools for twelve months. 7. Expands Healthy Forest Restoration Act authorities to streamline projects in “critical areas” that have been identified as facing forest health threats. 8. Reaffirms the projects conducted under Categori-cal Exclusions should not be subject to Administra-tive Appeals. 9. Fire liability provisions in stewardship contracts will now be the same as in

timber sale contracts. 10. Governors are given greater authority in the iden-tification of critical areas for CE’s on national forest lands. I would encourage all of you to thank your legislators for their work and support of the pro forestry provi-sions being included in the Farm Bill. It seems we’re quicker to give a “kick in the back side” than to give a pat on the back but here’s a case where we should show them that we appreciate their support of the timber industry. Until next time, LOG SAFE. Brian Nelson is the cur-rent President of the Ameri-can Loggers Council and he and his brother David and father Marvin own and op-erate Marvin Nelson Forest Products, Inc. based out of Cornell, Michigan. The American Loggers Council is a non-profit 501(c) (6) corporation repre-senting professional timber harvesters in 30 states across the US. For more information, visit their web site at www.americanlogger s.org or contact their office at 409-625-0206.

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The AOL Mainline April, 2014

“The Official Newsletter of Associated Oregon Loggers, Inc.” PAGE 3

Please Sign up Early...

Look for details on our first “Golf Ball Drop” event

Enter to Win 1 of 3 Great Prizes

(Anyone can Participate)

Show up early...There will be a “Putting Contest” prior to the Tournament

Log A Load for Kids

Charity Golf Tournament

This year’s event, benefiting the Children’s Miracle Network Hospitals

will be held on June 27th at the Sandpines Golf Course in Florence.

Stream Protection Rules Under Attack

O ne component of Oregon’s water quality objectives is

a temperature standard for “protecting cold wa-ter” (PCW). The PCW crite-rion prohibits detectable (>0.3 degrees Celsius) man caused warming of waters where salmon, steelhead or bull trout are present. In or-der to establish whether Or-egon’s forest protection laws were effectively maintaining this standard, the Depart-ment of Forestry initiated a long term study in 2002 called the Private Forests Riparian Function and Stream Temperature study, commonly known as “RipStream.” Preliminary findings re-leased last year indicated that harvest operations on private land, conducted un-der the Forest Practices Act

by Jim Geisinger, Executive Vice President

(FPA), produced on aver-age a 0.7 degree Celsius temperature increase at the lower end of harvest units. This revelation has ignited an intense and controver-sial discussion regarding the adequacy of the stream protection rules under the FPA and whether the pro-tection standards need to be revisited by the Board of Forestry. This past Jan-uary the Board asked the department to begin work on alternative manage-ment practices that might be more effective in meet-ing the PCW standard. To date, the suggestion is to impose very large increas-es in the size of streamside buffers. Unfortunately, the Rip-Stream study did not ex-amine many other factors affecting fish besides tak-

ing a temperature measure-ment at a single point in time and at a single specif-ic location. For example, no measurements were taken downstream from the harvest unit to see if the temperature increase per-sisted or rapidly decreased to pre-harvest levels. There also is no evidence that fish are being harmed by such minor and temporary increases in water tempera-ture. Rather, paired water-shed studies are not show-ing negative impacts to fish and, in fact, are providing evidence that current forest practice reg-ulations may be positively contributing to fish abun-dance and growth. AOL is working with other allied associations in asking the Board of Forest-ry to slow the process

down and make a thorough and methodical examination of all the factors that con-tribute to a healthy fishery. It is highly likely that the >0.3 degree Celsius standard is overly restrictive and is not necessary for protecting fish. The Environmental Quality Commission in charge of setting these standards should revisit this standard with a focus on the true downstream impacts to aquatic species. The finan-cial consequences to private forest landowners and those who depend on the ability to actively manage Oregon’s forests could be enormous. We will keep members in-formed on the evolving and ongoing discussions about this issue.

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The AOL Mainline April, 2014

PAGE 4 “The Official Newsletter of Associated Oregon Loggers, Inc.”

2014 Events Calendar

Spring Board May 9, 10.....................The Resort at the Mountain, Welches

Room Rates…………………...………….....……….....$119

Room Reservations…………………...…....1-800-733-0800

Room Block (good through)……………..…...….April 14th

Group Code………………………………...………......AOL

Reservations………………...……..AOL Registration Form

Basic Forest Practices Workshop June 9………………………………...Salem Location TBA

LAL for Kids Golf Tournament June 27…………….……...Sandpines Golf Course, Florence

Reservations…………………..……AOL Registration Form

Fall Board Sept. 5, 6………………...Inn at Spanish Head, Lincoln City

Room Rates………………………………….….$119, $129

Room Reservations………………..………1-800-452-8127

Room Block (good through)……………...…….August 5th

Group Code…………………………………………....AOL

Reservations……………………....AOL Registration Form

by Rod Huffman, Training Director

Getting In and Out of Equipment or Trucks 3 Points of Contact

G etting into the cab of mobile equip-ment or log trucks

can be dangerous with slip-pery steps and possibly just carrying too much stuff. The new (tip-over) cabs have heavy doors that add an extra challenge and fore-thought when getting in and out. For the most part, em-ployees use the appropriate steps, handrails and 3 points of contact when getting in the equipment or truck. Operators do tend to get in a hurry when getting out of equipment or trucks and are more likely to get hurt. Exiting too fast, fac-ing the wrong direction or jumping off the last steps are contributing factors to these type of injuries. Slow-ing down and applying the 3 points of contact rule while getting on and off equipment/trucks signifi-cantly reduces the risk of getting hurt. Using the AOL 3 points of contact stickers can also remind operators to use this meth-od. The correct 3 points of contact must include exit-ing backward (facing the equipment) and maintain-ing three-point contact until touching the ground. The basic principle is to face the equipment, grab the hand rails or other stable balance point with two hands, place a foot on a step, pulling up with the use of both hands and one foot; or reach with one hand while grasping an

approved hand hold with the other hand and firmly placing both feet on steps or ladders. The object is to have a combination of two hands and one foot or two feet and one hand always in contact with steps, hand-rails, or other stable sur-face. To enhance the overall safety, the following are some points that should

be emphasized:

Instruct employees to check the physical condi-tion of hand holds, steps and walking surfaces prior to operating the equip-ment. Keep these surfaces clean and free of debris.

Instruct employees not to use steering wheels, controls, and other unau-thorized hand holds when getting in and out. Don’t

have too many items in your hands.

Instruct employees on the use of the three-point method both getting in and out of equipment or trucks. Have them demonstrate 3 points of contact each time.

Point out the potential injuries associated with the act of improper 3 points of contact. *Sprained Ankles *Pulled Muscles *Puncture Wounds *Broken Bones *Death Injuries caused by falling from mobile equipment or log trucks can be prevented by using 3 points of contact. We all want to keep costs down in association with mobile equipment and log trucks. Explain these poten-tial hazards as well as per-forming maintenance on mobile equipment and log trucks. Included in this month’s Mainline is information on proper 3 points of contact and minimizing injuries when getting in and out of equipment or log trucks. Please take the time to re-view this information with all affected workers. Call the AOL office if you need the 3 points of contact stick-ers. Remember read and follow all equipment manu-factures’ recommendations for the safe operation and maintenance procedures.

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The AOL Mainline April, 2014

“The Official Newsletter of Associated Oregon Loggers, Inc.” PAGE 5

Spring Board Meeting May 09 - 10, 2014

The Resort at the Mountain

Welches, Oregon 97067

1-800-733-0800

Please Make Your Reservations Now

Return Meal Reservation to AOL

The Importance of Conducting a Proper Accident Investigation

by Tom Messuri, Senior Return to Work Consultant

A fter making sure the injured worker receives proper

medical attention, the em-ployer should, as soon as possible, conduct an accu-rate accident investigation. Safety professionals recom-mend investigations be con-ducted within 48 hours fol-lowing injury accidents. It is also very beneficial that the accident investigation be completed prior to the 801 form being submitted to the insurer. Which employer’s must do, within 5 days of the employer knowing a claim was filed. This will help make sure all infor-mation on the 801 is as ac-curate as possible. For all types of soft tissue damage injury accidents, where the question on the 801 asks “Did injury occur during course and scope of job?” you should consider mark-ing UNKNOWN. Do not just take the workers word that the injury did in fact happen on the job.

As a member of AOL you have at your disposal a professional staff of loss control consultants to as-sist you with any injury accident investigation. We also have an accident investigation form you can utilize to complete the written portion of your accident investigation or you can use an equivalent investigation report form. A good accident in-vestigation should have the following compo-nents: 1. Obtain from the in-jured worker specific de-tails including the date, time, suspected causes and damages suffered. 2. The supervisor should investigate the accident to determine cause, as soon as possible after the acci-dent. 3. Examine any equip-ment or machinery that was involved in the acci-dent. Determine if the ma-

chine itself contributed to the accident or the way in which the employee was using it. 4. The supervisor should interview all witnesses to the accident. Get all the facts.

5. Consider the SIX KEY QUESTIONS OF ACCIDENT INVESTI-GATION: WHO: Who was in-

jured? Who saw the accident? Who had instructed/assigned worker? Etc.

WHAT: What was the accident? What was the injury? What circumstances were involved? What pro-tective equipment was used? Etc.

WHEN: When did the accident occur? When were the haz-ards pointed out? Etc.

WHY: Why was he/she injured? Why did employee do what

they did? Why weren’t specific instructions given to him/her? Etc.

WHERE: Where did the accident occur? Where was the supervi-sor at the time? Where were witnesses when acci-dent occurred? Etc.

HOW: How did he/she get hurt? How could he/she have avoided it? Could supervisor have prevented it? Etc.

6. Once the cause of the accident is determined, take the necessary action to pre-vent this type of accident from occurring again. 7. Executive Management should review each acci-dent in a timely manner to ensure the accident was properly reported and in-vestigated, the true cause(s) were identified and that appropriate corrective ac-tion was taken.

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The AOL Mainline April, 2014

PAGE 6 “The Official Newsletter of Associated Oregon Loggers, Inc.”

State Recognizes Logging Operators 2013 Operator of the Year Awards for Forest Practices

by Rex Storm, Forest Policy Manager

T he Oregon Dept. of Forestry (ODF) and Oregon Board of

Forestry annually recognize forest operators who con-sistently meet and exceed the minimum terms of the Oregon Forest Practices Act & Rules (FPA)—as a result of the operator’s su-perior project innovation, resource protection, com-munication, planning, com-mitment to land steward-ship, and overcoming fi-nancial risk. Logging and road contractors often take extra measures to meet Or-egon’s requirements to pro-tect forest resources at con-siderable business sacrifice. The Oregon Board of Forestry established the awards program during the 1990’s to honor businesses that consistently meet or exceed the natural resource protection standards set by the FPA. Operators are recognized for consistent and responsible harvesting, roading, replanting, protect-ing streams and wildlife habitat. The Board, at its March meeting, recognized the '2013 Forest Practices Operators of the Year', a logging award for each of the state’s regions. Operator of the Year Awards: Three forest con-tractors were honored for their exceptional forest practice performance dur-ing 2013. Repeated opera-tor recognition occurred Jan. 16th at AOL’s statewide forest practices seminar, then at February’s Oregon Logging Confer-ence, and again at the

March OR Forestry Board meeting. AOL members are denoted by an aster-isk*. Northwest OR— Floyd J. Lundberg, Inc.* of Astoria Kirk & Scott Lundberg earned the NW region award for a difficult Campbell Group industrial clear cut unit located on Humbug Mountain in Clatsop County. Lundberg’s team safely cable harvested to opti-mize timber recovery while protecting soil, wildlife and riparian re-sources on over-steepened terrain. Loading and haul-ing was also challenged by limited landings & turnarounds, steep grades, and in-road power lines. The firm’s consistency over the years often ex-ceeds the minimum Forest Practices Act require-ments, while keeping safe-ty first. Southern OR— Lone Rock Logging Co.* of Roseburg Lone Rock Logging Co. won the SW award for their 20 years of stream

improvement and salmon habitat restoration work along King Creek. This long-term project was pos-sible because of Lone Rock’s consistent coopera-tion with numerous part-ners, including: Lone Rock Timber Co (landowner), OR Dept. of Fish & Wild-life, OR Dept. of Transpor-tation, Coos Bay BLM, Coquille Watershed As-soc., National Marine Fish-eries Service, Coquille High School, Coos Curry Electric, Oregon State Parks, and Coos County. This collaborative team improved roads, improved fish habitat, protected wa-ter quality, and resulted in renewed salmon spawning. Eastern OR— Collins Timber/Management Company* of Lakeview Collins received the East-ern region award for its superior post-fire salvage harvest implementation on the 2012 Barry Point Fire (2,300 acres in OR +21,000 in CA). Collins adeptly worked with at least 18 operators, facilitat-ed salvage of burned non-industrial neighboring for-

estlands, and coordinated with local communities—to assure resources were pro-tected, timber was promptly recovered, and reforestation could begin. Collins also went to extra lengths to co-ordinate effective log haul with truckers, county, law enforcement, and a school. Merit Awards: ‘2013 Merit Awards’ and several ‘Letters of Commendation’ will also be recognized for operator excellence in forest practices activities, and pre-sented at local ODF operator meetings held later this spring. The ‘2013 Merit Award’ winners are as fol-lows: Eastern OR Merit Awards WyEast Forestry Manage-ment, LLC* Logging and roading near streams, homes, power lines & rail-roads; fire suppression work; harvest of black pine needle disease Gary R. Wright Contract-ing, Inc* Ground-based integrated harvesting, stand sanitation, fuel reduction Jim Floyd. Stream restora-tion and road relocation away from the stream, re-construction, and rehabilita-tion Northwest OR Merit Awards Gwin & Sons Logging* Complicated harvest adja-cent to public sanitary dis-trict forest, community coor-dination, voluntary efforts to achieve community interests Greenup Enterprises* Protected northern spotted

WELCOME NEW MEMBERS

Mid Valley District Crag Creek Forestry Kelly G. Grossmiller Davis Contract Logging Stokes Trucking Dawson Transport Tim A. Barnhart Timber Falling

Eastern District Mabe Contrac�ng

Northwest District Feenaughty Machinery Co. Harlan Howard Logging, LLC

“Logging Operators” Con�nued on Page 7

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The AOL Mainline April, 2014

“The Official Newsletter of Associated Oregon Loggers, Inc.” PAGE 7

Oregon Market Spotlight Monthly Report About Wood Product Markets, Which Affect Demand for Oregon Timber Harvest

by Rex Storm, Forest Policy Manager

owl habitat, superior down-hill cable logging through fish stream buffers, and in-novative road water man-agement Timothy K. Gurton Log-ging. A complex small-tract ground-based harvest and pre-harvest release spray— around fish streams, significant wet-

“Logging Operators” Con�nued from Page 6

lands, lake, and a home Southwest OR Merit Awards Weyerhaeuser Co.-Dellwood* an excellent stream enhancement pro-ject, where landowner and operator installed an over-sized arch culvert to re-establish fish passage Western Pacific Tree

Service. Difficult eradi-cation operations to elimi-nate sudden oak death dis-ease from tanoak—including tree/vegetation removal, burning & refor-estation Congratulations to the 2013 Forest Practices award recipients! Their outstanding efforts illus-

trate the great work done by Oregon’s logging industry, as well as their dedicated crews. Their excellence reflects positively on sus-tainable forest management by Oregon’s logging pro-fession!

2 013 Timber Exports Rise: The US Forest Service’s Pacific NW

Research Station reports that 2013 West Coast log and lumber exports in-creased, as Asian demand for logs rose. The region’s lumber and log exports rose about 20% last year, with demand peaking in the 4th quarter. Most West Coast logs shipped overseas are going to China— although Japan demand also in-creased. Compared to 2012, China in 2013 in-creased its import of West Coast logs by 48%, and West Coast lumber imports by 45%. With limited for-estlands, these nations rely on imported timber. Ore-gon and WA are the West Coast’s largest US log & lumber exporters (80% of exports). The Research Station said lumber exports have been on the rise since 2007; but, there are no guarantees this trend will continue. As US timber prices rise, this could prompt Asian buyers to source more economical

logs & lumber from other countries like Russia, Bra-zil, and BC Canada. Housing Adjusts at New Year: US housing starts fell to a seasonally-adjusted annual rate of 880,000 units in January, 16% below the December rate, and 2% under the January 2013 rate, accord-ing to the US Census Bu-reau. January’s building permits declined from the prior month to 937,000 units/year, or 5% below the December figure. Home builder confidence in markets for newly-built single-family homes dropped 10-points, to a score of 46 in February, according to the National Assoc. of Home Builders-Wells Fargo Housing In-dex. An index below 50 indicates that more build-ers view sales conditions as “poor.” An NAHB spokesman attributed much of the index drop to severe winter weather; but, he also warned that future building demand could be disrupted by ris-

ing construction costs and pricey limited availability of labor, lots, and lending. 2014 Housing Fore-casts Firming: Most con-struction economists now agree that US housing starts should surpass 1 million units in 2014—exceeding last year’s 926,700 unit total. West-ern Wood Products Assoc. recently concurred with the National Assoc. of Home Builders that the 1 million milestone would be reached this year. This translates into at least a 7% annual gain in lumber & plywood demand. In 2013, US lumber supplies grew for the fourth straight year, rising 7% above 2012. Wood prod-uct dealers and mills ex-pressed optimism about the remainder of 2014. US Home Prices Climb: The S&P/Case-Shiller Home Price Indi-ces, the leading measure of US home prices, report-ed that national home prices increased 11.3% in 2013. This was the best

year for the Index since 2005. However, economic data suggest some slowing ahead for housing construc-tion. Existing home sales and housing start permits were below expectations in January. Rising home pric-es reduce affordability, while tough lending stand-ards disqualify many bor-rowers. 2014 Remodeling Out-look Robust: National As-soc. of Home Builders, Re-modeling Market Index (RMI) remained at a 4th quarter score of 57, its highest since the first quar-ter 2004. A score above 50 indicates that more remod-elers view market activity as improved from the prior quarter. NAHB attributes the RMI to solid existing home sales, low interest rates, rising home equity, and pent-up demand for post-recession remodeling. NAHB anticipates steady remodeling improvement in 2014.

“Market Spotlight” Con�nued on Page 8

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The AOL Mainline April, 2014

PAGE 8 “The Official Newsletter of Associated Oregon Loggers, Inc.”

Lewiston Sawmills Re-incarnated: Expanding the market for NE Oregon sawlogs, two Snake River mills will soon renew pro-duction. Guy Bennett Lumber’s Clarkston, WA sawmill announced it would reopen in April, after being shut since 2009. Guy’s start-up will run DF and white fir dimension, then adding pine and spruce later. After purchasing the Lewiston, ID sawmill from Clearwater Paper in 2011, Idaho Forest Group is mak-ing upgrades to double mill capacity by April. Springfield Parti-cleboard Mill Shuts: Ro-seville, CA-based SierraP-ine in February announced permanent closure of its Springfield particleboard

mill by month-end. The closure precedes the 1st quarter 2014 sale of Sier-raPine to Flakeboard America Limited, a US subsidiary of Arauco. Flakeboard will retain Springfield plant owner-ship, as well as the operat-ing Medite MDF mill in Medford, and a parti-cleboard mill in Martell, CA. Lumber & Plywood Markets: Structural lum-ber & panel markets in February & early-March were held flat by winter weather that stifled con-struction and transporta-tion across the northern latitudes. Some dealers reported difficulty secur-ing enough trucks & rail-cars to make deliveries.

“Market Spotlight” Con�nued from Page 7

Winter storms created se-rious railcar bottlenecks in interior Canada. The indi-ces listed below are com-posites of various grades & regions of lumber and plywood/OSB, reported weekly by Random Lengths Publications, in Eugene. For more infor-mation about wood prod-uct markets & publica-tions, go online at: www.randomlengths.com or phone 888-686-9925. Random Lengths Index* 3/14/14 2/14/14 Year Ago Framing Lumber Compo-site Price[mbf] $387 $389 $432 Structural Panel Compo-site Price[msf] $366 $358 $511 *Source: Random Lengths Publications, Inc. -- $ per

thousand bdft. lumber tally; thousand sqft. Panels. Log Markets: During the fourth quarter of 2013, domestic log prices for most regions and species climbed markedly from the prior quarter. With the exception of the Klamath Region where little price change occurred, DF and Hem-fir prices rose from 10 to 25%, and pine prices rose just 2 to 5%. Alder rose up to 15%, and the SW regions saw the greatest log price gains. Domestically-processed log prices, expressed as pond values from sample regions, are reported quarterly online by Oregon Dept. of Forest-ry, at: www.oregon.gov/odf/state_forests/timber_sales/logpage.shtml.

AOL Congratulates

The Following Companies for Earning

Oregon Professional Logger Status

Blue Ridge Timber Cutting, Inc. Mark Jones Trucking Inc. dba Boulder Creek Timber

Mineral Creek Logging & Hauling LLC Pellham Cutting Inc

TMF Timber Inc. Weber Logging & Construction Inc.

Forest Policy Briefs Update on Current Policy News

Affecting Forest Business & Timber Supply

by Rex Storm, Forest Policy Manager

T op Job Vacancies Include Logging: The Oregon Em-

ployment Department’s 2013 Job Vacancy Survey of employers statewide shows logging as ranking high in unfilled job open-ings. On average, the sur-vey found that in all occu-pations there were 32,441 job openings at any one time last year. Of the top-10 most common full-time job openings, the #1 high-est was “truck drivers,” with 1,191 vacancies statewide—offering a me-dian hourly wage of

$19.00. The 10th highest full-time opening was for “forest & conservation workers” (includes log-ging), with 278 vacancies statewide—offering a medi-an hourly wage of $15.82. These two job categories experienced vacancies ex-ceeding 60-days, 25% and 50% of all openings, re-spectively. An alarming 100% of the forest & con-servation worker vacancies were listed as “difficult to fill.”

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OPL REVIEW Current Education & Monthly News About the

Oregon Professional Logger Program (OPL) April 1, 2014

A professional certification program administered by Associated Oregon Loggers, Inc. (AOL)

NEWS -- Helpful updates about OPL standards, forest certification, green marketing and education Forest Business Programs: {OPL credit available for seminars} Apr. 16 Access, Easements, Rights-of-Way & Timber Trespass, Springfield, OR [7 OPL]

Holiday Inn Express; Registration fee: $175, or $225 after 4/10 Western Forestry & Conservation Assoc; 503-226-4562; www.westernforestry.org

April 16-17 Pacific NW Timberlands Management, Portland, OR [11 OPL] World Forestry Center; Registration fee/Foresters rate: $390

The Seminar Group; 206-463-4400; www.TheSeminarGroup.net Apr. 26 Tree School East – Baker City Register deadline, April 11, No walk-ins {up to 8 OPL credits}

OSU - Forestry Extension Service; Fee $50; [email protected] 541-523-6418; registration information online: http://extension.oregonstate.edu/baker/

May 14-15 Forest Road Surfacing: Design Principles & Applied Practices, Grand Mound, WA [15 OPL] Great Wolf Lodge; Registration fee: $325, or $395 after 5/7 Western Forestry & Conservation Assoc; 503-226-4562; www.westernforestry.org

June 3-5 SmallWood Conference, Rochester, MN [up to 24 OPL] “Forest Utilization and Management,” Registration fees: $295 +$100 for tour

Forest Business Network; 406-546-5977; www.forestbusinessnetwork.com Sept. 25-27 PLC In-Woods Show, Pt. Blakely Tree Farm, Molalla, OR [1 OPL] 7th In-Woods Show, events/exhibits; contact: 425-413-2808, www.pacificloggingcongress.org OSU Forestry-Starker Lectures {2 OPL credits; 4 OPL field trip} OR State University campus in Corvallis. No registration fee. 541-737-1585; www.starkerlectures.forestry.oregonstate.edu Lectures located in OSU’s, Richardson Hall, room 107; 3:30-5pm. April 24 Beyond Boundaries: Social Challenges & Opportunity in Forest Landscape Management. Paige Fischer May 29, 9:00am - 4pm Capstone Field Trip -- Field tour of working forests in Linn County (RSVP online by 5/17)

EDUCATION RESOURCES -- Ideas on where to find OPL-qualified classes and education OPL Review offers just a few ideas about where to find OPL credit from training and continuing education. There are many education providers besides just AOL and OR Dept. of Forestry; and workshops in neighboring states also qualify. OPL credit is possible from five methods: 1) training/conference/meeting; 2) tour/field program; 3) consultation; 4) independent study; and 5) SFT-dvd employee training. Two OPL credit categories: Forest Practices (OPL-FP), and Regular (OPL-Reg) Common Sources of Continuing Education for Oregon Loggers and Forest Contractors Associated OR Loggers (AOL) 503-364-1330 www.oregonloggers.org AOL Mainline newsletter (mailing inserts) 800-452-6023 www.oregonloggers.org Atterbury Consultants Inc. 503-646-5393 www.atterbury.com Austin Family Business Program, OSU 800-859-7609 www.familybusinessonline.org College of Forestry Extension, OSU 541-737-1727 http://extensionweb.forestry.oregonstate.edu County Extension Centers, Forestry http://extensionweb.forestry.oregonstate.edu/county-extension-centers Community Colleges in OR (website directs to local colleges) www.educationatlas.com/oregon-community-colleges.html Forest Engineering Inc. 541-754-7558 http://forestengineer.com Master Woodland Manager, OSU Extension 541-766-6750 http://extension.oregonstate.edu/mwm/ OR Bureau of Labor & Industries 971-673-0825 www.boli.state.or.us OR-OSHA (Occupational Safety & Health Admin) 888-292-5247 www.orosha.org/education.html OR-OSHA Online Courses 503-947-7443 www.orosha.org/educate/training/pages/courses.html OR Colleges Online (Online Courses) http://oregoncollegesonline.com OR Construction Contractors Board 503-378-4621 www.oregon.gov/CCB/ OR Dept. of Forestry 503-945-7200 http://oregon.gov/ODF/index.shtml OR Forest Resources Institute 971-673-2944 www.oregonforests.org OR Logging Conference 800-595-9191 www.oregonloggingconference.com OR Small Business Development Center (20 locations) 541-463-5250 www.bizcenter.org OR Small Woodlands Association 503-588-1813 www.oswa.org OR Watershed Enhancement Board 503-986-0178 www.oregon.gov/OWEB/ OR Wood Innovation Center, OSU 541-737-3385 http://owic.oregonstate.edu OR Employment Department - OR WorkSource www.worksourceoregon.org www.qualityinfo.org The Seminar Group 206-463-4400 www.TheSeminarGroup.net Western Forestry & Conservation Assoc 503-226-4562 www.westernforestry.org Western Forester, OSAF magazine (refer to ‘Calendar of Events’) www.forestry.org/wf/

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FOREST PRACTICES TRAINING CALENDAR Published monthly for Forest Operators & Others

April 1, 2014 Co-Sponsored by Oregon Dept. of Forestry and Associated Oregon Loggers, Inc.

Forest Practices Programs ● Qualifies for OPL-FP Maintenance or Initial Credit ● Educational seminars!

● Programs in industrial fire prevention regulations & compliance qualifies for OPL-Forest Practices credit ● With fire season approaching, ODF has scheduled operator meetings to review industrial fire precautions

Klamath Falls April 9 7:30-9:30am ODF Klamath-Lake Operator Breakfast; 2 OPL-FP credits OIT campus; Student Union Bldg., Mazama Rm; Call ODF to register: 541-883-5681

LaGrande May 1 5:00-8pm ODF NE-OR Operator Dinner; 2 OPL-FP credits Senior Center on Cove Ave; Free dinner; Call ODF to register 541-963-3168 or 541-886-2881 Afternoon Forest Practices Seminar scheduled—contact ODF for details (2-3 OPL-FP credits)

Toledo May 30 3:00-5pm ODF Toledo Operator Meeting 2 OPL-FP credits Plum Creek Shop; 380 NW 1st St; Call ODF to register 503-934-8146 or -8147

Philomath June 5 3:00-5pm ODF Philomath Operator Meeting 2 OPL-FP credits ODF Office; Call ODF to register 503-934-8146 or -8147

Dallas June 6 2:00-4pm ODF Dallas Operator Meeting 2 OPL-FP credits ODF office, 825 Oak Villa; Call ODF to register 503-934-8146 or -8147

John Day June tbd 7:00-9:00AM ODF Central OR Operator Breakfast; 2 OPL-FP credits Location to be determined; Free breakfast; Call ODF to register: 541-575-1139

Several additional locations to be announced: May & June ODF Operator Meetings; 1-2 OPL-FP

Basic Forest Practices Workshop (BFPW) ● Required for Initial OPL ● Qualifies for 6 OPL-FP Initial or Maintenance credits ● Free seminar!

Salem June 9 8:00am–3:00pm; Basic Forest Practices Workshop, 6 OPL-FP credits Red Lion Hotel; 3301 Market St NE; I-5 exit #256, just west (Market St exit)

WHO SHOULD ATTEND: Initial OPL status for contractors, or any key employee of an OPL company seeking OPL maintenance credit BFPW OBJECTIVE: To familiarize forest contractors with an overview of the entire package of Oregon forest practices rules and industrial fire regulations. This 6-hour class is recommended for crew supervisors, key employees, as well as company owner-operators. Taught by ODF foresters. Free class; lunch not included.

Please call AOL to register, by 3-days prior: 1-800-452-6023

Oregon Professional Logger Program – OPL OPL Initial accreditation requires a logging-operator company to complete the 6-hour ‘Basic Forest Practices Workshop’, plus 26-hours of additional continuing education in subject areas of their choice. OPL requires 32-hours initially; thereafter 10 hours required per year, includes 4 hours Forest Practices a year Companies seeking OPL must FIRST enroll by joining Associated Oregon Loggers or pay OPL Subscriber fee

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“This information is advisory only. Please refer to the applicable laws and regulations for the specific requirements that govern these matters.

Please call your AOL representative if you have any questions.Associated Oregon Loggers, Inc. 2014

Getting in and out of Equipment or

Trucks… 3 Points of Contact

Getting into mobile equipment and log trucks is not as much of a problem as getting out for some

employees. Employees seem to use the appropriate steps, handrails and three-points of contact when

getting into the equipment or truck. Most injuries occur when getting out, employees tend to jump down

from equipment rather than use the steps and handrails. The correct method must include facing the

equipment and maintaining three-points of contact until touching the ground.

Three-points of contact is the use of at least three contact points when getting in or out of equipment or

trucks. The basic principle is to face the equipment, grab the handrails or other approved balance points

with two hands, place a foot on a step, pulling up with the use of both hands and one foot; or reach with

one hand while grasping an approved hand hold with the other hand and firmly placing both feet on

steps or ladders. The object is to have a combination of two hands and one foot or two feet and one hand

always in contact with steps, handrails, or other approved surfaces.

To enhance the overall safety, the following are some points that should be emphasized:

Instruct employees to use the proper footwear and check the physical condition of hand holds,

footholds and walking surfaces prior to getting on the equipment or truck, and keep these

surfaces clean and free of debris.

Be cautious that oil, hydraulic fluid, diesel, rain, mud,

frost, ice or snow can cause steps and hand holds to

become extremely slippery.

Instruct employees not to use steering wheels, controls,

and other unauthorized hand holds while getting into or

out of equipment or trucks.

Instruct employees on the use of the three point method

and have them properly demonstrate.

Point out the potential injuries that have occurred when

falling from equipment or trucks.

Sprained ankles Pulled muscles

Puncture wounds Broken bones

And death

Apply the AOL 3 Points of Contact

sticker on the equipment or truck as

a visible reminder for operators to

use 3 Points of Contact.

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Are you Part of a Controlled Group And Don’t Know It?

By Harold Christensen, Benefits Advisor, CFP, Inc.

What are Controlled and Affiliated Service Groups? Are you and/or your business considered a Controlled Group? You may be if you have ownership in more than one business. Anyone with ownership in multiple businesses, or who owns a company with multiple divisions operating as separate entities, could be a controlled group. If this sounds like your company you should be aware of the rules that govern controlled groups – especially if the combination of employees is more than 50.

Here are some guidelines to help you understand what a controlled group is, the laws that govern them, and how Health Care Reform could impact you.

Controlled Group:

A controlled group of companies may exist when there is overlapping ownership in two or more companies. There are three kinds of controlled groups:

Parent-subsidiary: when one company owns 80% or more of a subsidiary. Brother-sister: when 5 or fewer individuals own 80% or more of two or more companies. Combined ownership: when each organization is a member of a parent-subsidiary or brother-sister group and at least one corporation is

the common parent of a parent-subsidiary and a member of a brother-sister group.

In certain cases, ownership by a spouse, parent, child or grandchild may be combined to determine if a controlled group exists.

Attribution Rules:

To make things even more confusing, there are family “attribution rules” that require certain family members’ ownership to include that of other family members. For example, an individual is considered to own any interest that their spouse, and in some cases, child or parent owns. This can potentially be a problem for family owned businesses. Here is an example: Parents own a logging company and gift or sell a small ownership interest to their children. The children start another logging company of their own, but the parents don’t own any of children’s company. This ownership may be considered a controlled group as there are fewer than 5 people owning 80% or more of multiple businesses. Affiliated Service Groups

If a business regularly performs certain “personal services” or management functions for related companies it may be part of an “affiliated service group” even if there is not common ownership.

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Here are some examples of “personal services”: accounting, actuarial, architecture, consulting, engineering, health services, insurance, and law. Only entities that provide “personal services” are subject to the affiliated service group rules.

An affiliated service group is basically a group of businesses working together to provide services to each other, or jointly to customers, and can be one of three types:

A-Org: An “A organization” is a shareholder or partner in the First Service Organization B-Org: A “B organization” is an organization that provides to the FSO, Combination: A mix of both “A” and “B” organizations

The definition of each is very complex. If you are – or think you may be – an Affiliated Service Group, you should consult your CPA and/or Tax Attorney for more information on your status.

How will this affect me?

If you are a Controlled or Affiliated Service group, due to Health Care Reform you are now subject to the Employer Mandate. This law states that employers with 50 or more full time equivalent employees will be subject to a penalty tax if they fail to offer health care coverage to all full time employees or offer minimum essential coverage that is unaffordable.

While large employers may think subdividing into smaller companies can provide relief from the Employer Mandate, PPACA and IRS use “controlled group” rules from IRS Code § 414 (b) and 414(c). It states “…all employees of all corporations which are members of a controlled group of corporations (within the meaning of section 1563(a), determined without regard to section 1563(a) (4) and (e) (3) (C)) shall be treated as employed by a single employer.”

Based on the IRS Code above, all employees of all corporations in a controlled group, and all employees under common control, are to be treated as employed by a single employer. Don’t assume that separate EIN numbers means employees won’t be counted as a group. If you don’t know the rules about control group status, you might find yourself being considered part of a much larger group, which could mean much larger penalties if you are not in compliance.

Important Notes:

The Employer Mandate was scheduled to go into effect January 1st 2014 but has been delayed until January 1st 2015.

If a company fails to offer benefits to part of a controlled group, they may end up paying contributions to the employees who were excluded from the plan.

Any company with 20 or more employees is subject to COBRA. A smaller company that is part of a Controlled Group may unknowingly be subject to rules and regulations they aren’t aware of.

Controlled Groups and Affiliated Service Group rules are very complex. This article is not intended as legal advice; it is only intended to outline the rules surrounding these unique groups. If you believe you may be subject to the rules governing Controlled or Affiliated Service groups you should consult your CPA and/or Tax Attorney for clarification.

If you have questions or concerns please contact CFP, Inc.; we would be glad to help you. Feel free to call us at: (866-532-0417) or by email at: [email protected]. CFP has been working with the AOL for 17 years as their endorsed benefits agent and appreciate the opportunity to help with your benefits planning.

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