Common use of Forest Management Clause in Contracts

Forest Management. The Nisga’a Final Agreement stipulates that Nisga’a forestry practices must meet or exceed standards established under provincial forestry practices legislation for Crown land. Nisga’a Lisims Government is committed to meeting this requirement while providing consistent, sustain- able employment for forestry workers. The treaty provides for a five-year transition of the control of timber harvesting and management on Nisga’a Lands from British Columbia to NLG. During the transition, B.C., under provincial forestry legislation, licenses the harvest of an annual volume of timber to forest companies who held licences prior to the treaty’s effective date. While these licences are issued by B.C., both the Province and NLG, through the Forestry Transition Committee, have a shared responsibili- ty in the administration of the licences. At the end of the transition period, in 2005, the Nisga’a Nation will have full control of Nisga’a timber. Under the transition arrangement, forest licensees must harvest specified volumes of timber each year and a percentage of the volume must be con- tracted to Nisga’a citizens to harvest. In the second year of the treaty, the target of 70 percent Nisga’a contractors was exceeded. During the reporting period, a total of 74,469 cubic metres of wood was harvested under the transition licences, much of it by community- owned Laxgalt’sap Forest Corporation which employs 30 people. To support operations, 9.6 kilometres of logging road were constructed dur- ing the reporting period. Continuing volatility in North American lumber markets has underscored the need for long-range planning. That’s why Nisga’a operators are making significant capital investments to ensure they are well positioned to meet increasing demands as markets recover. Forestry Transition Committee The Forestry Transition Committee, comprised of one person each from NLG and B.C., has authority to approve forest development plans throughout the five-year transition period. The committee approves silviculture plans and issues all cutting and road permits in the latter years of the transition period. During the reporting period, the committee received a proposed Forest Development Plan from Skeena Cellulose Inc. (SCI), the major licensee on Nisga’a Lands. The plan was sent to the Joint Fisheries Management Committee and Nass Wildlife Committee for review and comment, made available for public consultation, and ulti- mately approved. In 2001, British Columbia transferred quarterly Same Economic Position (SEP) payments, totalling $446,806 to the Nisga’a Nation for timber harvested on Nisga’a Lands. Under the SEP arrangement, the Nisga’a Nation receives a payment of $6 per cubic metre, and an additional amount if either billed stumpage‌‌ or industry performance exceeds $6 per cubic metre. Nisga’a Lisims Government and B.C. are still seeking agreement on the criteria for calculating the conversion factor for determining industry performance.

Forest Management. The Nisga’a Final Agreement stipulates requires that Nisga’a forestry practices must meet or exceed standards established under provincial forestry practices legislation for Crown land. Nisga’a Lisims Government is remains committed to meeting this requirement while providing consistent, sustain- able sustainable employment for forestry workersNisga’a people. The treaty provides for a five-year transition After the first five years of the treaty, control of timber harvesting and management on Nisga’a Lands shifts from British Columbia to NLGnlg. During the transitionthis transition period, B.C., under provincial forestry legislation, licenses B.C. licences the harvest of an annual volume of timber to forest companies who held licences prior to the treaty’s effective effec- tive date. While these licences are issued by B.C., both the Province and NLG, through the Forestry Transition Committee, have a shared responsibili- ty in Responsibility for the administration of these licences is shared between the licencesprovince and nlg. At the end of In May 2005, the transition period, in 2005, will be complete and the Nisga’a Nation will have full control of Nisga’a timber. Under the transition arrangement, forest licensees must companies are licensed to harvest specified volumes of timber each year and a percentage of the volume must be con- tracted contracted to Nisga’a citizens to harvest. In the second third year of the treaty, the target of 70 percent Nisga’a contractors was exceeded. Forest companies harvested 59,557 cubic metres of timber from Nisga’a Lands — much of it by community-owned Laxgalts’ap Forest Corporation. This figure is lower than expected due to continu- ing international trade disputes and volatility in North American lumber markets. During the reporting period, a total nlg and B.C. reached agreement on the procedure for estimating the Vancouver Log Market price of 74,469 cubic metres timber harvested from Nisga’a Lands. In support of wood was harvested under the transition licences, much of it by community- owned Laxgalt’sap Forest Corporation which employs 30 people. To support logging operations, 9.6 kilometres of logging road new roads were constructed dur- ing and upgrades were conducted on 3.7 kilometres of existing roads. The British Columbia Forest Practices Board conduct- ed five audits on Nisga’a Lands during the reporting period. Continuing volatility in North American lumber markets has underscored One audit was conducted for each licensee that Nisga’a Final Agreement 2002/2003 Annual Report 28/29 had active operations or outstanding obligations under provincial forest practices legislation on Nisga’a Lands. The results of the need for long-range planning. That’s why Nisga’a operators are making significant capital investments to ensure they are well positioned to meet increasing demands as markets recoveraudits were still being compiled at the end of the reporting period. Forestry Transition Committee The Forestry Transition Committee, comprised of one person each from NLG and B.C., has authority to approve Committee approves forest development plans throughout the five-year transition period. The Comprised of one person each from nlg and B.C., the committee approves the silviculture plans for harvesting and issues all cutting and road permits in the latter years of the transition periodpermits. During The Forestry Transition Committee met six times during the reporting period, the committee received a proposed . One Forest Development Plan from (fdp) for Forest Licence A64298 — held by New Skeena Cellulose Inc. (SCI), Forest Products Ltd. — was approved as was an extension to the major licensee nlg Public Lands fdp. The Forestry Transition Committee continues to work on procedures for the review and approval of harvesting activities on Nisga’a Lands. The plan was sent to the Joint Fisheries Management Committee and Nass Wildlife Committee for review and commentIn 0000, made available for public consultation, and ulti- mately approved. In 2001, British Columbia Xxxxxxx Xxxxxxxx transferred quarterly Same Economic Position (SEPsep) payments, totalling $446,806 357,316 to the Nisga’a Nation nlg for timber harvested on Nisga’a Lands. Under the SEP sep arrangement, nlg receives payments equivalent to those they would have received if they harvested the timber themselves. Mushroom Harvest With the exception of timber harvesting during the transition period, nlg’s Lands and Resources Directorate manages all land and forest resources in Nisga’a Nation receives forests. Pine mushrooms, a payment of popular delicacy in Asia, are the second most valuable resource found in Nisga’a forests. In 2002, the mushroom harvest totalled 23,000 kilograms, which added approximately $6 per cubic metre, and an additional amount if either billed stumpage‌‌ or industry performance exceeds $6 per cubic metre. Nisga’a Lisims Government and B.C. are still seeking agreement on 1 million to the criteria for calculating the conversion factor for determining industry performancelocal economy.

Forest Management. The Nisga’a Final Agreement stipulates requires that Nisga’a forestry practices must meet or exceed standards established under provincial forestry practices legislation for Crown land. Nisga’a Final Agreement 2002/2003 Annual Report 28/29 Nisga’a Lisims Government is remains committed to meeting this requirement while providing consistent, sustain- able sustainable employment for forestry workersNisga’a people. The treaty provides for a five-year transition After the first five years of the treaty, control of timber harvesting and management on Nisga’a Lands shifts from British Columbia to NLGnlg. During the transitionthis transition period, B.C., under provincial forestry legislation, licenses B.C. licences the harvest of an annual volume of timber to forest companies who held licences prior to the treaty’s effective date. While these licences are issued by B.C., both the Province and NLG, through the Forestry Transition Committee, have a shared responsibili- ty in Responsibility for the administration of these licences is shared between the licencesprovince and nlg. At the end of In May 2005, the transition period, in 2005, will be complete and the Nisga’a Nation will have full control of Nisga’a timber. Under the transition arrangement, forest licensees must companies are licensed to harvest specified volumes of timber each year and a percentage of the volume must be con- tracted contracted to Nisga’a citizens to harvest. In the second third year of the treaty, the target of 70 percent Nisga’a contractors was exceeded. Forest companies harvested 59,557 cubic metres of timber from Nisga’a Lands — much of it by community-owned Laxgalts’ap Forest Corporation. This figure is lower than expected due to continuing international trade disputes and volatility in North American lumber markets. During the reporting period, a total nlg and B.C. reached agreement on the procedure for estimating the Vancouver Log Market price of 74,469 cubic metres timber harvested from Nisga’a Lands. In support of wood was harvested under the transition licences, much of it by community- owned Laxgalt’sap Forest Corporation which employs 30 people. To support logging operations, 9.6 kilometres of logging road new roads were constructed dur- ing and upgrades were conducted on 3.7 kilometres of existing roads. The British Columbia Forest Practices Board conducted five audits on Nisga’a Lands during the reporting period. Continuing volatility in North American lumber markets has underscored One audit was conducted for each licensee that had active operations or outstanding obligations under provincial forest practices legislation on Nisga’a Lands. The results of the need for long-range planning. That’s why Nisga’a operators are making significant capital investments to ensure they are well positioned to meet increasing demands as markets recoveraudits were still being compiled at the end of the reporting period. Forestry Transition Committee The Forestry Transition Committee, comprised of one person each from NLG and B.C., has authority to approve Committee approves forest development plans throughout the five-year transition period. The Comprised of one person each from nlg and B.C., the committee approves the silviculture plans for harvesting and issues all cutting and road permits in the latter years of the transition periodpermits. During The Forestry Transition Committee met six times during the reporting period, the committee received a proposed . One Forest Development Plan from (fdp) for Forest Licence A64298 — held by New Skeena Cellulose Inc. (SCI), Forest Products Ltd. — was approved as was an extension to the major licensee nlg Public Lands fdp. The Forestry Transition Committee continues to work on procedures for the review and approval of harvesting activities on Nisga’a Lands. The plan was sent to the Joint Fisheries Management Committee and Nass Wildlife Committee for review and commentIn 0000, made available for public consultation, and ulti- mately approved. In 2001, British Columbia Xxxxxxx Xxxxxxxx transferred quarterly Same Economic Position (SEPsep) payments, totalling $446,806 357,316 to the Nisga’a Nation nlg for timber harvested on Nisga’a Lands. Under the SEP sep arrangement, nlg receives payments equivalent to those they would have received if they harvested the timber themselves. Mushroom Harvest With the exception of timber harvesting during the transition period, nlg’s Lands and Resources Directorate manages all land and forest resources in Nisga’a Nation receives forests. Pine mushrooms, a payment of popular delicacy in Asia, are the second most valuable resource found Nisga’a Final Agreement 2002/2003 Annual Report 32/33 in Nisga’a forests. In 2002, the mushroom harvest totalled 23,000 kilograms, which added approximately $6 per cubic metre, and an additional amount if either billed stumpage‌‌ or industry performance exceeds $6 per cubic metre. Nisga’a Lisims Government and B.C. are still seeking agreement on 1 million to the criteria for calculating the conversion factor for determining industry performancelocal economy.