Prince Albert FMA Forest Management Plan

Prince Albert FMA Forest Management Plan Timber Supply Modeling Summary Prince Albert Forest Management Area (FMA) Sakâw Askiy Management Inc.

Outline / Overview Sakâw Overview Forest Management Plan Forest Estate Modeling and Forecasting Basics Landbase Forest Growth and Mortality Management Practices Events (harvest opening size) In-block retention Old seral retention Pure Timber Focus Scenario Natural Forest Pattern Scenario 2

Sakâw Overview 8 Shareholders Licensees and 3

Sakâw Shareholder Operating Areas Allocation Holder Softwood Allocation (m³/yr) Hardwood Allocation (m³/yr) Pulp Allocation (m³/yr ) Total Allocation A.C Forestry 200,000 200,000 400,000 Carrier Forest Products 375,000 375,000 Edgewood Forest Products 75,000 75,000 L&M Forest Products 75,000 75,000 Meadow Lake Mechanical Pulp 95,000 95,000 Meadow Lake OSB (Tolko) 600,000 600,000 Montreal Lake Business Ventures 200,000 40,000 240,000 NorSask Forest Products 175,000 175,000 Sakâw Totals 1,100,000 935,000 2,035,000 Third Party Operators 150,000 12,000 162,000 Northern Village of Green Lake 15,000 15,000 Paper Excellence 661,000 661,000 PA FMA Totals 1,265,000 947,000 661,000 2,873,000 FMP will assess if harvest levels need to change. 4

Softwood Operating Zones Hardwood Operating Zones 5

2015-2035 Forest Management Plan 6

20 Year Forest Management Plan Provides strategic direction for forest management in an attempt to minimize land and resource use conflicts. Establishes desired future forest conditions Establishes clear goals, objectives, and strategies to guide forest management activities to achieve this future Harvesting limits Renewal requirements Practices designed to protect non timber values water, wildlife, biodiversity, visuals, trapping/outfitting, recreation Etc 7

FMP Planning Team Pat Mackasey / Dave Lindenas Forest Service Chris Brown Forest Service Cam Brown Sakâw and Forsite Consultants Doug Braybrook Edgewood Forest Products Michelle Young Meadow Lake OSB (Tolko) Dave Knight Carrier Forest Products Darrel Crabbe Saskatchewan Wildlife Federation Has been meeting monthly since Feb 2013 (~2 yrs) 8

Sources of Direction Provincial Acts, Regulations, Manuals and Standards Forest Management Planning Standard Forest Operating Plan Standard Regeneration Assessment Standard Resource Roads Standard PA FMA Standards and Guidelines Previous 20-Year Forest Management Plan Public Advisory Group and Other Public Input Aboriginal Groups Input Sakaw Shareholder Input 9

Sakaw Forest Management Principles Ecosystem Based Management Adaptive management / Continual Improvement Sustainable Forest Management Public Involvement / Transparency Accountability to Government and Stakeholders 10

FMP Process Develops strategic management direction for FMA (next 20 yrs) Guides: Harvesting Renewal Management of values such as wildlife, recreation, visually sensitive areas, etc. Commits to targets and monitoring/reporting Seeks public input 11

FMP - Three Main Products Volume I Document (presented Nov 2013) Provides background and contextual information on the FMA area Describes historical management practices Forest Estate Modelling Report (Focus of today) Describes modeling assumptions Explores alternative management scenarios Identifies a preferred management scenario with harvest rates Volume II Document (The Plan expected June 2015) Provides a detailed forest management plan that guides how forest management activities will be undertaken. Provides a Tactical Plan (detail on the first 10 years of the plan) 12

What is Forest Estate Modeling? Computer modeling that grows and harvests forests over long time frames to explore future outcomes and sustainability of harvest levels. Three major categories of inputs: Landbase Description (starting condition) Growth and Mortality (stand changes over time) Management Practices (how we interact with the forest) 13

Landbase Description Area (ha) Non-Contributing 69,000 Non-Forest 1,492,000 Parks and RANS 85,000 Partial Netdowns 236,000 Riparian 13,000 Stand Level Retention 132,000 Net Land Base 1,323,000 Total 3,350,000 14 Note: Areas rounded

Landbase Description 15

Stand Types 16

Current Age Class 17

Productive Forest by Seral Stage 18

Predicting the Future - Growth & Mortality Individual stands were grouped together based on species cover, productivity, geography, and crown closure Empirical plot data combined with knowledge of stand dynamics used to create projections of stand growth over time (m³/ha) 19

STAND GROWTH AND DEVELOPMENT Succession Operable Harvest Window Operable Harvest Window 20

STAND GROWTH AT THE FOREST LEVEL etc. 21

Key Management Assumptions Renewal within 2 years to the same stand type. Protection of riparian areas, heritage sites Retention around cabin sites /recreation areas Consider viewscapes around important recreation lakes Consider wildlife habitat needs (caribou, moose, fisher, etc) Emulate Natural Forest Patterns In-block Retention (9%) Old Seral Stand retention (15%, 5% of which to be very old) Interior Old Forest Habitat (Min of 20% of total old for FMP term) Event Size / Harvest Patch Size (Diversity of sizes) 22

Natural Forest Patterns In-block Retention Old Seral Retention Disturbance Patterns/Events Interior habitat Working to ensure harvesting leaves similar stand structures and landscape patterns behind. 23

Old Seral Retention (Example Areas) 24

Events (Mimicking Natural Patterns) Current Landbase Patterns: Reflection of past events /disturbances (10 yr age classes) Event Size Class Natural Proposed Estimate FMP Targets <100ha 18% 10% 100-1500 ha 36% 50% 1501-3500 ha 10% 20% 3501-8000 ha 11% 20% 8000+ 24% - 25

Proposed Events in AOP 7 larger events proposed in AOP Whiteswan Tower (2500 ha MLOSB/Carrier) Egg Lake (1800 ha MLOSB/Carrier) Clam Lake (3300 ha L&M / MLMP) Dog Mountain (2300 ha ACTC) Otapanask ( 680 ha - MLOSB/Carrier) Dore Mountain (1200 ha ACTC) Sulby (2400 ha MLOSB / L&M) Plan to work in these areas for multiple years so seeking multi-year approval (up to 5 years) for these blocks. Notification will be given when harvesting is going to start. See AOP maps for details 26

Sample Proposed Events in AOP Dore Mountain Dog Mountain 27 Otapanask

Timber Supply Forecasts Timber Only Purely timber focused Used as a reference point only Includes all spatial Netdown including retention around riparian Does not include any consideration of: Visually Sensitive Areas Wildlife Habitat Old seral Retention In-Block Retention Event / Patch size Two Scenarios shown: Highest Non-Declining Harvest Highest Initial Harvest Level 28

Timber Supply Forecasts Timber Only 29

Timber Supply Forecasts Timber Only 30

Timber Supply Considering Multiple Forest Values If we add the following considerations to the model: Visually Sensitive Areas Wildlife Habitat Old seral Retention In-Block Retention Event / Patch Size Objectives And decide to harvest at the currently approved levels as a starting point: We get a two tired harvest flow (short term / long term). 31

Timber Supply - Multiple Forest Values 32

Timber Supply Multiple Forest Values 33

Caribou Moving Forward 41

Summary Current ages classes on the FMA are older than what would be present under natural fire regimes (successful fire suppression). Harvesting at levels above the long term sustainable level can capture the volume in some of these stands before they die. When all forest values are considered, the current HVS can be sustained for 40-60 year before declining to the long term level (which could improve when benefits of active management are recognized). A key part of maintaining natural forest patterns is the creation of a range of opening sizes on the landbase. The current AOP includes a range of smaller and larger events and we are seeking multi-year approvals for several larger events. 42

Input Welcome www.sakaw.ca (Contact Us page) Cam Brown 250.832.3366 x220 Darryl Sande 306.953.2021 or shareholder contacts sakaw01@sasktel.net Maps are available for viewing on the website. 43