Mutual benefits bring LNIB and Trace Resources together

Trace Resources in Merritt, B.C., is a company closely tied to working with First Nations like Lower Nicola Indian Band, leasing land on LNIB reserve property, employing First Nations from LNIB, and working with the Shulus Forestry, owned by LNIB (run by Trevor Ball).
   

 Ron Racine is one of the owners of Trace Resources. “We run our operations on LNIB, near Merritt, and we employ people there. We’ve been operating for one and a half years manufacturing forestry fibre for chips, hog fuel, and some logs for market.”
    

The company picks the highest value usage for the fibre and ultimately uses a lot of low-cost fibre in their operations. In fact, the company has caught the attention of the B.C. government, “With companies like Trace, we’re turning the mountain pine beetle infestation into a bioenergy opportunity that will create jobs and meet our climate goals,” said Forestry Minister Pat Bell, while he toured Trace’s grinding operations north of Merritt.
    

“We’re seeing a whole new industry developing – an industry that leaves no piece of wood behind.”  Trace Resources formed in October 2008 in answer to new opportunities around the utilization of wood waste. Together with an affiliated company, Jaeden Resources, it recently put into operation two grinders and loaders worth $1.8 million.
    

Trace is following the learning curve and, “learning by doing,” says Racine. Chips are used by pulp mills like Harmac Pacific Northern Bleached Softwood Kraft (NBSK) pulp mill located on the east coast of Vancouver Island near Nanaimo, British Columbia, and Howe Sound Pulp and Paper. Hog Fuel is sold there, and to Belgium. Logs go to market. 
    

Racine says, “LNIB was looking for partners to move products from their forestry operations and we were looking for land to put our operations, and fibre for those operations, and skills in forestry operations,” and found all of this in LNIB. Racine’s company found the LNIB operations and personnel to be innovative and relationship oriented.
    

Racine says, “The relationship is based on three principles, the land lease, the employment of LNIB personnel both directly and indirectly, and the operation of the FRA forest license owned by LNIB.” Trace operates on a ten hectare site north-west of Merritt. “We have buildings, a scale for weighing fibre, and a chip plant. Some of the timber is processed for log sales.”

The company maximizes profits from the wood fibre they receive from LNIB and other First Nation forest licensees. “It’s full utilization of the wood.”

Zanzibar Holdings partner discusses their B.C. silviculture prospects in 2010

Tree planters are looking at 2010 with less certainty. There are 25 million less seedlings being planted in 2010 than 2009, according to Tony Harrison, Zanzibar Holdings. This is partly due to reduced funding for provincial funding called Forests for Tomorrow. The current funding of 44 million a year for the next 10 years will address about  4% of the need. Harrison says the growing carbon credits business and the new biomass proposals could help with some of the funding shortfall but there is a big gap to make up. 
     

FFT has been set up  to manage the work in Mountain Pine Beetle (MPB) destroyed forests and is mandated to provide 25 percent of the work to First Nations. "First Nations could be key players in the business of carbon credits and silviculture. They have an potential role to play in negotiating carbon credits through treaty discussions." Pat Bell the BC minister of Forest recently said that he believes carbon credit sales will be funding a major source in the provincial silviculture in the near future.
     

This MPB crisis makes everybody in the forestry industry a little queasy. Harrison notes that B.C. is looking at 16 million hectares of MPB eaten forests. "There is a huge opportunity for the silviculture industry here that has been stalled for the past 5 years.
     
Zanzibar is a silviculture company with 120 employees, "For the past two years we've been working in joint ventures in the Cariboo country with members of the Shuswap nation and the Tsilhqot'in Nation Government (TNG) . Presently we are working with Western Silviculture Contractors Association (WSCA) on the issues of First Nation participation with the discussion to centre on the lack of First Nation silviculture businesses involved in the FFT program.
    

 For the past couple years Zanzibar has been planting and surveying in First Nation territory, "We've been working with them to put the Bands in profitable situations and workers are making a good living. The province has a history of Bands launching into silviculture and failing but the partnerships we have formed make the process work."
     

Harrison says the training aspect of silviculture adds 20 percent to the cost of a tree-planting operation, but is well worth the investment. FFT in the Cariboo has supported First Nations to date but there is a need to expand the program and continue to promote joint ventures between local Bands and experienced contractors. Unfortunately because of the downturn in the forest industry and Federal and Provincial governments cutting back funding there is less opportunity at a time when our forests need silviculture the most. "We should be planting 250 million seedlings a year, but this previous year the province planted 200 million. In 2010 the province will plant 175 million," and next year we may be down as low as 150 million new trees will go in the ground.
     

The Tsilhqot'in National Government and Secwepmec ( Northern Shuswap) will be gearing for tree-planting operations that are so much in demand because the MPB has been especially virulent in the heart of their traditional territory. WSCA sponsored First Nation Silviculture Safety training sessions will be available this April in Williams Lake."

Looking for the way forward in a Mountain Pine Beetle devastated forestry industry

First Nations Forestry Council is an organization formed from a specific mandate, says Keith Atkinson, Chief Executive Officer, "The Mountain Pine Beetle (MPB) is the main reason why the FNFC was formed in the early 2000s." With $300 million flowing to bio-energy development out of the forestry disaster in Canada the FNFC is actively promoting bio-energy development, "First Nations need to be involved."

Atkinson believes First Nation communities are fighting for their lives in the face of the MPB, "We cannot abandon our communities." Foremost, the MPB creates huge potential for biomass development, "The beetle may have peaked in its destructive force in B.C.," says Atkinson, "but enormous killing of trees continues."

Atkinson explains, "The FNFC began out of the MPB crisis. Millions of dollars were initially committed and the First Nations were included in the $100 million a year funding scheme, with $20 million a year earmarked for First Nations." Twenty percent of the federal commitment was designated to First Nation communities.

When the federal government first transferred $100 million to the province, "First Nations saw $8.4 million." Forestry is a multi-billion dollar industry in Canada. Rather than meeting the commitment, "In four years we saw $20 million for First Nations to do assessments and identify the impact of the MPB, and list the First Nation priorities to deal with it."

Atkinson notes that 50 percent of the 200 First Nation communities in B.C. are directly affected by the MPB blight, yet the federal government changed course in the middle of the funding program. From then on the federal government began diverting funding to national organizations for distribution through Natural Resources Canada and Western Diversification.

"Our agreement with the province of B.C. broke down. We continued to try and monitor the funding situation through working groups, to share and coordinate what money we received. The dollars started to flow and then it changed."

It's about the money because, "The number one issue is forest fuel management," which, Atkinson notes, "is fuel created by the MPB. Then comes the risk of forest fires. We have to make an urgent effort to mitigate against the forest fire hazard. These fires are increasing in severity and so is the incidence of interface fires," where cities like Kelowna and towns like Lillooet face  devastating infernos.

Indian Reserve communities are always in peril in spring, summer and fall today. "We have a lot of work to do on reserves because the biomass fuel is constantly interfacing with these communities. The cost of treatment to reduce fire risk increases every year," and Atkinson estimates it is currently $135 million a year. "We've submitted funding proposals over and over and they always get culled down."

He says the First Nations require $20 million a year in B.C. over the next three years, $60 million, to reduce the threat to communities. Instead of funding, FNFC continues a four year battle to find a place in funding schemes that would reduce the threat to communities. "We are down to $2 million a year and we have the local rural First Nations willing to do the work but the money isn't there."

It's a difficult situation for an organization that was established for the purpose of fighting a pestilence that threatens the safety and existence of Canada's first people. "Our industry is facing a new kind of forestry. Restoration is the goal and we want communities to be running their own programs. It includes cultural and social sustainability of these communities. We also need to participate in the research of climate change."

Atkinson says the communities are structured for biomass fuel management and proper funding would enable economic development. The FNFC worked diligently from the outset to design a strategy based on $20 million a year for ten years. "The present Prime Minister says he will supply $1 billion to fix the problem, but he fails to recognize the 20 percent agreed for First Nations."

The federal government put the money into existing federal departments effectively bypassing First Nations. Furthermore the money available causes competition between First Nations for available funds. This unexpected diversion has shattered the organization of support. "Most people recognize First Nation issues today," says Atkinson, "and they know a few things about our plight."

It's a fact, "When you give money to First Nation communities it ends up in the hands of non-Natives, but when you give it to non-Native communities it never ends up in First Nation hands. And we're not trying to do this alone. We have a protocol agreement with the BC Bioenrgy Network to showcase 'best practices' and show the way to replicate success."

In short, the FNFC is working toward a governance model that works with industry and business and which could ultimately lead to solid government-to-government relations and increased certainty for economic progress. "Everybody needs First Nations full participation to support the forestry strategy.