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Page | 1 Version: 31July14v2 Forest Management Manual for New Brunswick Crown Lands Results-Based Forestry Option August 2014

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Page|1 Version:31July14v2

ForestManagementManualforNewBrunswickCrownLandsResults-BasedForestryOptionAugust2014

Page|2 Version:31July14v2

TableofContentsIntroduction.................................................................................................................................................3

Goals&ObjectivesforCrownLandManagement......................................................................................3

StrategicForestManagementPlanning......................................................................................................6

OperatingPlans...........................................................................................................................................7

Operations-Harvest....................................................................................................................................8

OldForestCommunityandOldForestWildlifeHabitatHarvestPolicy..............................................8

DeerWinteringAreaManagementPolicy.........................................................................................10

WatercourseandWetlandBufferZonePolicy..................................................................................13

ManagementofTolerantHardwoodForestsPolicy..........................................................................17

ScaleandUtilizationPolicy................................................................................................................18

Operations–Roads...................................................................................................................................19

Operations–Silviculture...........................................................................................................................20

AnnualReport............................................................................................................................................21

FinancialReport.........................................................................................................................................22

Accountability............................................................................................................................................22

CommitmenttoContinuousImprovement...............................................................................................26

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IntroductionIn1982,withtheproclamationoftheCrownLandsandForestsAct(Act),acomprehensiveforestmanagementsystemwasintroducedforCrownland.TheActmadeprovisionfortheestablishmentofCrownTimberLicences(Licences)andtheassignmentofmanagementresponsibilityforthoseLicencestotheforestindustry(Licensees).Theroleofgovernmentinthismanagementsystemistosetforestmanagementgoals,objectives,andstandards,monitortheactivitiesoftheLicensees,andtoperiodicallyassessLicenseeperformance.TheroleofLicenseesistoimplementthegoalsandobjectivessetbygovernment.

ThisframeworkisdescribedintheForestManagementManual(FMM),whichisamendedbymutualconsentoftheMinisterofNaturalResourcesandLicensees.TheFMMformspartoftheForestManagementAgreement(FMA)whichoutlinesthespecificresponsibilitiesofLicenseesandtheMinisterinthemanagementanduseofCrownland.TheFMMrepresentsSchedule“E"oftheFMA.TheforestmanagementsystemdevisedforCrownlandoperatesonafive-yearcycle.TheMinisterandLicenseereviewtheFMAattheendofeachfive-yearperiodoftheFMA.TheFMMisalsoreviewedatfive-yearintervals.Eachreviewre-establishesthegoals,objectives,standards,andassessmentcriteriaforCrownLicensemanagementandrelatedactivitiesontheground.

TwoessentialcomponentsofCrownlandforestmanagementaretherequirementsformanagementplanningandtheevaluationofmanagementperformance.Licenseesdeveloplong-termForestManagementPlansthatdescribehowthegoalsandobjectivesofgovernmentaretobeachievedoverthenextfive-yearperiodandinthelongerterm.ForestManagementPlansareimplementedthroughOperatingPlansthatarepreparedannuallybyLicensees.TheMinisterofNaturalResources(DNR)isresponsibleforapprovingmanagementplansandverifyingthatoperatingplansareachievingtheirintendedoutcomes.Attheendofeachperiod,usingdefinedindicators,DNRevaluateshowwellLicenseesperformedinachievingthestatedgoalsandobjectivesofgovernment.TheresultsofthatevaluationareaprimeconsiderationinDNR'sdecisiononwhethertoextendthetermofaLicenceforanadditionalfive-yearperiod.

Goals&ObjectivesforCrownLandManagementInMarchof2014,Governmentreleasedaforeststrategytitled:‘PuttingOurResourcestoWork’,whichsetforthseveralnewdirectionsinCrownlandmanagement.ThestrategytargetsagloballycompetitiveandresilientNewBrunswickforestsector.Majorpolicyelementsofthatstrategywhichinclude:

• ForestSectorInvestment–theGovernmentwillallocateadditionalfibretosupportcompanieswhohavecommittedtomakesubstantialinvestmentsinmillmodernizationandequipment.Crownforestswillbemanagedasahighlyproductivesourceofhighqualityforestproducts.

• ACommitmenttoaHealthyForest–theGovernmentmaintainsitscommitmenttoahealthy,vibrantforestwithtreesatvariousstagesofmaturityandrespectstheprinciplesofconservationandbiodiversity.Thisstrategymaintainsadiverseforestthroughtimethatprovidesoldforest,deerhabitat,cleanwater,untouchedandprotectedareaswhileputtingthe

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remainderofourforesttoworktodayandintothefuture.

• Results-BasedForestry–theGovernmentwillpursueamoreefficientandlesscostlyapproachtomanagingCrownlandbyadoptinga‘results-basedframework’withCrownlicensees.Thismanualdetailssuchaframework.Licenseeswillbeheldaccountabletoachieveclear,forest-wideobjectivesandGovernmentwillassesstheirperformancebyexaminingtheoutcomesofLicenseemanagementandharvestandsilviculturepractices.Thisframework,whichisalignedtotheoriginalintentofthe1982CrownLandsandForestAct,willallowindustrytobemoreefficientinconductingitsoperationswhilebeingmoreclearlyaccountablethroughasetofperformancemeasures.‘Results-based’reliesonstrictprocesscontrol,processimprovement/performanceexcellence,andanintegrationofDNRintoindependentcertificationsystems.

Crownlandswillbemanagedformultipleobjectivesthatfitintothethreerecognizedpillarsofsustainableforestmanagement(SFM):

• StewardshipoftheEnvironment• SupportingaVibrantForestSector• MaintainingSocialLicensetoOperate

Themes Values Goals Objectives

Stew

ardshipofth

eEn

vironm

ent

TerrestrialB

iodiversity

Thefullvarietyofhealthyandresilientnativeforestedecosystemsarepresentandsustainableacrosstheirecologicalranges.

Functionalpatchesofoldforestwillberetainedacrosseachecoregionineachof14identifiablecommunitytypes.Objectivelevelsineachecoregionaimtosustainatleast6-8%inoldageclassesofeachforestcommunity'stotalarea(1980'sinventory).

ThefulldiversityofmatureforestecosystemswillberepresentedinProtectedNaturalAreas.Naturalprocesseswillbepermittedtounfoldwithminimalhumaninfluence.

Forestryoperationsencounteringsite-specifichabitats(includingrarespecies,beardens,raptornestsites,etc.)maintaintheirassociatedfunction(s).

Thefullrangeofnativeforest-dwellingvertebratesarepresentandsustainableacrosstheirecologicalranges.

Populationsofall161nativevertebratespecieswillbemaintained.Forthe53oldforestdependantspecies,functionalpatchesofoldforesthabitatwillbemaintainedtosupportpopulationsingeographicsub-regionwherethespeciesisnative.

Populationsofconsumptivelyusedwildlifearemaintainedatdesiredlevels.

HabitatstructurestosupportherdsthroughseverewinterswillbemaintainedIndesignatedtraditionalwhitetaildeerwinteringareas.

WaterQua

lity&

Aqua

ticEcosystem

s

Theintegrityofwatercoursesandwetlandswillbemaintainedsoastopreservethephysical,chemical,andbiologicalpropertiesandfunctionsofthesesystemsintheirnaturalstate.

Allperennialwatercoursesandwetlandsgreaterthan1hawillbeprotectedthrough30mbufferzones.Bufferzoneswillbemanagedtoregulatemicro-climate,provideorganicmatter,maintainaquatichabitat,andactassedimentfilters.

Forestroadconstructionandmaintenancewillmanagethephysicalimpacttowaterqualityandfishpassagebymeansofeffectiveplanning,andwelldesignedandexecutedcrossings

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Themes Values Goals Objectives

Waterwaysindesignatedwatershedswillbeprotectedby75mbufferzonesthatwillbemanagedtominimizephysicaleffectsthatharvestcouldhaveonwaterquality.

Soil

HarvestandsilvicultureoperationsonCrownlandwillpreservesoilfunction,processes,andhealththroughminimizingdisturbanceandcontamination.

Forestoperationswillminimizeruttingthroughcarefulplanning,andeffectiveresponsewhenincidentsoccur.

Environmentalcontaminationduetospillageofhazardousmaterials(fuels,oils,pesticides,etc.)willbeminimized.Operationswilleffectivelycleanand/ormitigateanycontaminationsthatdooccur.Thepermanentnetlossofproductiveforestareaduetoheavyharvestdebriswillbeminimized.

Themes Values Goals Objectives

Supp

ortin

gaVibran

tForestS

ector

GrowingtheRe

source

CrownforestswillbeusedtosustainablysupplytimbertoNB'sforestsector.ForestmanagementwillplanharvestandsilvicultureactivitiessuchtooptimizethepotentialeconomicvalueofwoodfiberfromCrownlands.

CrownforestswillbeprimarilymanagedtomaximizeSp/bf/jPsawtimberharvestintheshort-termandgrowitinthelong-term.SupplyofmixedhardwoodspeciesfromCrownlandswillbemaintainedintheshort-term.Inthelong-term,overallhardwoodsupplywilldeclinetoasustainablelevelthroughareductionintheinventoryoflowervaluespeciesandproducts.

Wherehigh-qualitytoleranthardwoodsorwhitepinearedominant,forestryactivitywillfocusonculturingasustainablesupplyofqualitysawtimber.Thereshouldbenonet-lossofsuchareaonaLicense.

HarvestandsilvicultureoperationsonCrownlandwillbecontrolledusingsite-levelprescriptionsthatconsiderforesttype,environmentalfeatures,neighboringlanduses,relatedpolicy,andthelegislativeframeworkinthecontextofforestmanagementobjectives.TheoverallforestmanagementactivitybytheLicenseewillmaintainandimprovethelongtermfinancialvalueoftheCrownforestinventory.

Optim

izingthe

ValueCh

ain

TreesharvestedfromCrownforestswillbeusedtoprovidemaximumbenefittothepeopleofNewBrunswick.

NewBrunswickindustrieswillmaximizetheirutilizationoftheavailableAACfromCrownlandsatalltimes.

100%oftreesfelledfromCrownlandwillbeprocessedintoproductswhichcontributetoNB'seconomy.EconomicvaluetoGovernmentwillbemaximized.

Themes Values Goals Objectives

Maintaining

So

cial

LicenseTo

Ope

rate

Accessto

Crow

nForests Forestroadnetworkswillallow

traditionalnon-commercialaccesstoCrownlands

Inadditiontouseforforestmanagement,designatedroadwayswillbemaintainedinpassableconditionforthepurposeofallowingtraditionalpublicaccesstoCrownlandsforrecreationandnon-commercialuses.

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Forestssurroundingwaterwaysoftraditionalhigh-recreationalusewillbemanagedtomaintain

aestheticquality,userexperience,andintegrity

ForestharvestactivitieswillrespectCrownAnglingLeases,CanadianHeritageRivers,andotherwaterwaysofhigh-recreationalusethoughspecialdesignatedbufferzones.

Tran

sparen

cy

DNR,Stakeholders,andmembersofthepublicwillhaveaccesstoimportantinformationregardingthemanagementof

Crownforests.

AforestmanagementplanwillbepreparedwhichdemonstrateshowcurrentandplannedactivitiesachieveGovernment'seconomicandenvironmentalobjectives.Theforestmanagementplanwillbenomorethan5yearsold;10yearsofplannedharvestactivitieswillbemappedandthedocumentwillbepublicallyavailable.

Anannualoperatingplanwillbepreparedwhichmapstheapproximatelocationofplannedharvest,silviculture,androadconstructionactivities.Mapswillbepublicallyavailableandnoolderthan1year.

AnannualreportwillbepreparedwhichdetailstheactivityontheLicenseoverthepreviousoperatingseason.

AnonlineoperationsactivitymapwillbemaintainedandwillbeavailabletoDNRstaff.AfinancialstatementwillbepreparedwithinformationonroyaltypaidforCrowntimber,Licensemanagementservicefeescollected,andsilvicultureexpenses(reimbursedorin-kind).Variancesbetweenactualandbudgetedamountswillbeexplained.

StrategicForestManagementPlanningAForestManagementPlan(FMP)isrequiredbytheActandisfoundasSchedule“C”intheFMA.TheplandefineshowtheLicensewillbemanagedandformsthebenchmarkagainstwhichmanyelementsofLicenseeperformanceismeasured.TheFMPmustdemonstrateforaperiodofatleast80years,thesustainabilityoftheLicensee’sharvestandsilviculturestrategy,anditsabilitytofulfilltheobjectivesestablishedbyDNR.TheFMPisdevelopedthroughamutuallyagreed-uponsetofplanningstandards,accordingtoadaptiveplanningprocessrepeatedona5-yearcycle,headedbyatechnicalcommitteewithLicensee,DNR,andotherexpertrepresentatives.TheFMPdescribesstrategicdirectionandreportstheexpectedstateoftheforestatfuturetimeperiodsusingstate-of-the-artforecastingmodels.

Foraperiodof10-years,theFMPmaps:

• Theareasetasidetoachieveobjectivesforterrestrialbiodiversity,waterquality,aquaticecosystems,andrecreationalopportunity:collectivelytermed‘theConservationForest’

• Theplannedlocation,timeperiod,andgeneralprescriptionofharvestactivityrequiredtoaccesstheannualallowablecut(AAC)

TheFMPisconsideredvalidforaperiodof10years.Updatesaretriggeredwith:

• Anycatastrophicnaturaldisturbanceevent(forestfires,insectoutbreaks,windstorms,disease)whichcausessignificantchangestoharvestorsilviculturepatternsoverasustainedperiod.

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• Anyfundamentalchangestothescienceand/orinventoryinformationwhichformsthefoundationalelementstothemodellingapproachwiththepotentialforadramaticallyimprovedplan.

• Thecompletionofa5-yearmanagementperiod,assetforthintheAct,withthecurrentFMPtakingeffectApril1,2012.

TheGovernmentisresponsiblefor:

• DefiningthegoalsandobjectivesforforestmanagementandtherequirementsoftheFMP.

• Definingtheboundariesoftheprotectedareas,habitats,andotherspecialmanagementzonesthatformtheConservationForest.

• StrategicreviewandapprovaloftheFMP.

TheLicenseeisresponsiblefor:

• FormulationofaharvestandsilviculturestrategywhicharealignedwiththeGovernment’sobjectives.

• DeliveryoftheFMPthatdescribestheharvestandsilviculturestrategy,forecastedfuturestateoftheforest,anddemonstratessustainabilitywithrespecttoenvironmental,economic,andsocialindicators.

• Implementationofharvestandsilvicultureprogramsthatarewell-alignedtothestrategy.

OperatingPlansAnOperatingPlan(OP)isrequiredbytheActandisfoundasSchedule“D”intheFMA.TheOPservesastheprincipalmechanismforapprovingannualOPelementssuchasscalearrangementsandworkpermitsandSub-Licenseeagreements.ThroughtheOP,approvalisprovidedforimplementationofthemajoractivitiesassociatedwiththemanagementofCrownland.TheOPalsoservesasakeytransparencyelementwhereinterestedmembersofstakeholdergroupsandthepubliccanidentifythelocationofplannedharvestandroadconstructionactivities.OPswillmap:

• Possiblelocationswhichmaybeharvestedintheupcomingonetotwoyears.

• Majorroadconstructionormaintenance(rebuilds)activities.Keypolicyelements:

• OPsareavailabletothepubliconlineandarefree-of-charge.

• OPsareupdatedannually.TheGovernmentisresponsiblefor:

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• ReviewingtheOPforconsistencywiththeobjectivesidentifiedintheFMP,andFMMrequirements.

• Providingthe“LetterofApproval”whentheseconditionshavebeenachieved.

• Issuingworkpermitsforindustrialoperationspriortocommencementofoperations.TheOPapprovalletterwillbetheworkpermitforLicensee/Sub-LicenseeCrownlandoperations.

TheLicenseeisresponsiblefor:

• SubmittinganOPthatisconsistentwithobjectivesidentifiedintheFMPandmeetsFMMrequirements.

• ProvidingSub-licenseeswithintendedoperatingblockspriortoApril1stofeachyear.

• MaintaininganaccessiblespatialdatabaseofannualOPblocksandroads(includingharvestprescription).

• MaintainingadatabaseshowingthelocationofactiveharvestoperationsontheLicense

Operations-Harvest

OldForestCommunityandOldForestWildlifeHabitatHarvestPolicyObjective:

• OldForestCommunities(OFC)andOldForestWildlifeHabitats(OFWH)aremanagedonCrownlandtoensureafullvarietyofhealthyandresilientnativeforestedecosystemsandafullrangeofnativeforest-dwellingvertebratesarepresentandsustainableacrosstheirecologicalranges.

• Whiletimberharvestingisallowedinsomestands,it’scriticalthatstandsmeetingtherequiredstructuretoprovideOFC/OFWHpriortoharvestcontinuetoprovidetherequiredstructurefollowingharvest,bothspatiallyandtemporally.

• DNRhasidentifiedtargetsforOFCandOFWHtypesineachcombinationofEco-regionandLicense.Forestedstandssufficienttomeettargetlevelshavebeendesignatedandspatiallyidentifiedbasedonacombinationofground-basedknowledgeandforeststrataprobabilities.

• StructuralrequirementsforOFCandOFWHtypesaredescribedinthe“OldForestCommunityandOld-ForestWildlifeHabitatdefinitionsforNewBrunswick2012”document.

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KeyPolicyElements:

• TimberharvestingispermittedineligibleOFCandOFWHtypestoallowfortheextractionofwoodproductswhilemaintainingthedesiredstandstructurecharacteristicspost-harvest.Harvestingoftheeligibleareawillbespacedover30yearstopermitevaluationandadaptationofharveststandardstonewinformation.

• Inordertobedeemedeligibleforharvest,designatedOFCandOFWHare:o LocatedoutsideofPNAo LocatedoutsideofDWAthatis≤50hainsize.o OFCandOFWHtargetlevelsthatindividuallyrepresent>0.5%oftheCrownforest

(15,000ha)willbeeligiblefortimberharvesting.ThefollowingOFCandOFWHmeetthiscriteria:

! OFC-RS,BSM,BF,BSP,THP,THSW.! OFWH-OTHH,OHWH,OSFH,OMWHandOFH.

o NotanOFCorOFWHstand/patchdesignatedasExceptionalQualityorhavingrarespecies.

• DesignatedOFC/OFWHstandsaretobeavoidedwhenplanningandconstructingroadsexceptasrequiredtoaccessharvestableareaswithintheOFCorOFWHpatch.

• RoadsandlandingswillnottobelocatedindesignatedOFC/OFWHwheretheprovincialtarget

levelis<0.5%ofCrownforestarea;orattheEcoregionleveltheidentifiedareaortargetforanOFC/OFWHis<1000ha.ThedesignatedOFCandOFWHwhereroadsandlandingsshallnotbelocatedareidentifiedinTable1.

• IfaroadisconstructedwithindesignatedOFC/OFWHstands,theright-of-waywidthshallnotnormallyexceed20metersandtheareainroadswillbedeductedfromtheOFC/OFWHsupplyforthepatch.

Table1BluecellsindicatethosedesignatedOFC/OFWHbyecoregionwhereroadsshallnotbelocated.

Ecoregion

OFC/OFWH 1 2 3 4 5 6 7

HE CE

RS BSM

WS

BF SWTH

RP WP

THP

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EcoregionOFC/OFWH 1 2 3 4 5 6 7

THSW

BSP JP TL

OSFH OPIH

OTHH

OHWH OMWH

OFH TheLicenseeisresponsiblefor:

• PreparingandimplementingOFC/OFWHharvestconsideringtheobjectives,standardsandrelevantbestmanagementpractices.

• EnsuringforestryactivitiesindesignatedOFC/OFWHcomplywiththeobjectivesandthatpre/posttreatmentstandconditionsareconsistentwithminimumstructuralrequirements.

• ProposingequivalentreplacementOFC/OFWHtodesignateincaseswheretherequiredpost-harveststructurewasnotachieved.

DNRisresponsiblefor:

• ProvidingthespatialinformationspecifyingthelocationofdesignatedOFC/OFWHontheLicense.

• ApprovingreplacementdesignatedOFC/OFWHthatmaybeproposedbytheLicensee.

DeerWinteringAreaManagementPolicyObjective:

• DeerWinteringAreas(DWA)aremanagedonCrownlandstoensurethatthepopulationofwhite-taileddeerismaintainedatdesiredlevels.Inordertodoso,standsthatmeettherequiredhabitatstructuretoprovideDWAhabitatpriortoharvestmustcontinuetoprovidetherequiredstructurefollowingharvest,bothspatiallyandtemporally.

• Winterdeerhabitatisdescribedintwocategories:o ModerateDeerWinterHabitat

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o SevereDeerWinterHabitat

ModerateWinterDeerHabitat(MWDH)StandStructureForestType: Conifer,Conifer-HardwoodandHardwood-Coniferstandsexcludinglarch,pine,poor-site-spruceandmostpureblackspruce.

ConiferCrownClosure: ≥30%(trees≥10mtall)

Note:Coniferbasalareavalueslessthan12m2/ha(trees≥10cmdbh)areunlikelytoprovide30%crownclosure.

MeanConiferDBH: ≥18cm

Understory: ≥30%groundcoverofavailablebrowsespecies.Whennotpresent,considerinterventionsthatenhancebrowse.

ModerateWinterDeerHabitat(MWDH)SpatialCriteriaPatchSize: ≥5haofMWDHstands

≥75%oftheareainMWDHstands

≥150mminimumpatchwidth

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KeyPolicyElements:

• Tobeeligiblefortimberharvestoperations,followingconditionsmustbemet:

o DWAgreaterthan50hectaresinsize,and

o Lessthan15%oftheoriginalDWAforestareawasharvestedbetween1992to2010.DWAwith>15%harvestedbetween1992and2012becomeeligibleafter2027.

• TimberharvestinginDWAisrestrictedtoforeststandsthatare:

o DesignatedeligibleOFC/OFWHstands,orDWAstandswithoutOFC/OFWHdesignation.

o NotProtectedNaturalArea.

• Nomorethan17%oftheareaofavailableforesttypesinaDWAcanbeharvestedperperiod.WhenharvestinginselecteddesignatedOldForestCommunity(OFC)anddesignatedOld-ForestWildlifeHabitat(OFWH)stands,LicenseemustensurethatsuchharvestiswithintheperiodicLicense/ecoregiontreatablequotaforthatOFCorOFWH.

SevereWinterDeerHabitat(SWDH)StandStructureForestType:ConiferandConifer-Hardwoodstandsexcludinglarch,pine,poor-site-spruceandmostpureblacksprucetypes.

ConiferCrownClosure:≥50%(trees≥10mtall)

Note:Coniferbasalareavalueslessthan20m2/ha(trees≥10cmdbh)areunlikelytoprovide50%crownclosure.

MeanConiferDBH: ≥18cm

Understory: ≥10%groundcoverofavailablebrowsespecies.Whennotpresent,considerinterventionsthatwillenhancebrowse.

SevereWinterDeerHabitat(SWDH)SpatialCriteriaPatchSize: ≥10haofSWDHstands

≥75%oftheareainSWDHstands

≥300mminimumpatchwidth

Connectivity: Patchesshouldbeconnectedbywintertravelcorridors:conifercrownclosure≥50%;developmentstage≥immature;width≥90m.

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• BiomassharvestingwillnotbepermittedinDWAstands.

• DWAshouldbeavoidedwhenplanningandconstructingroadsexceptasrequiredtoaccessharvestableareaswithintheDWA.AtDNRrequest,Licenseesmustprovidethesite-specificrationaleforwhytheDWAcouldnotbeavoided.

• Additionally,roadsandlandingsshallnottobelocatedinstandsprovidingSWDH,orwithin

DWAthatare≤50hectaresinsize

• IfaroadisconstructedwithinDWAtheright-of-waywidthshallnotnormallyexceed20metersandtheareainroadswillbedeductedfromthedeerhabitatsupplyfortheDWA.

TheLicenseeisresponsiblefor:

• PreparingandimplementingDWAharvestconsideringtheobjectives,standardsandBMPs.

• EnsuringforestryactivitiesinDWAcomplywiththeobjectivesandthatpre/posttreatmentstandconditionsmeetminimumstructuralrequirements.

• Proposingequivalentreplacementincaseswheretherequiredpost-harveststructurewasnotachieved.

DNRisresponsiblefor:

• ProvidingthespatialinformationspecifyingthelocationofDWAontheLicense.

• ApprovingreplacementareathatmaybeproposedbytheLicensee.

WatercourseandWetlandBufferZonePolicyObjective:

WatercourseandwetlandbufferzonesareoneofthemanagementtoolsusedtoprotectwaterqualityandaquatichabitatonCrownland.Thebufferzoneprotectswaterqualityandaquatichabitatinanumberofways.Thetreesandshrubsinthebufferzonehelpmaintainthemicroclimatearoundthewatercoursebyprovidingshadeandactingasaninsulatoragainsttheextremesoftemperatureandhumidityfoundinopenareas.Theyalsoprovideorganicmaterial(leavesandwoodydebris)towatercoursesandwetlandsthatisasourceofnutrientsandhabitatstructuresforanimals.Largertreeswithcavitiesmayprovidenestingsitesforcavitynestingwaterfowlandotherspecies.Theforestfloorwithinthebufferfunctionsasadepositionzonewheresediment,originatingfromareaswithexposedsoilandtransportedviaoverlandflow,maybedepositedbeforereachingthewatercourse.Bufferzonesworktoprotectwaterqualityandaquatichabitatbothbeforeandafteroperationshaveoccurred.WatercoursebufferzonesonCrownAnglingLeases,CanadianHeritageRivers,andotherwaterwaysofhigh-recreationalusemustalsocontinuetoprovideaestheticandrecreationalvaluebeforeandafterharvestoperations.

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KeyPolicyElements:

• On-the-groundconditionswilldictateappropriateactionwhenworkingnearwater.

• WatercourseandwetlandbufferzoneswillbeappliedtoforestryoperationsasperTables1&2.

• Timberharvestingmayoccurwithinappropriatebufferzonesaslongasthepartialharvesttreatmentmaintainsbufferzonefunctionovertime.AllrequirementsoftheCleanWaterAct,itsregulations,termsandconditionsmustbemet.

• Mineralsoilexposedthroughforestryoperationswiththepotentialtoenteranaturalwatercoursewillbestabilizedimmediately.

• Novehiclewilltravelthroughorinanaturalwatercourse.

Table1.Standardsapplicabletoallwatercourseandwetlandfeatures

Feature

BankSlope

NoTrackingZone(m)

Buffer(m)

BufferZoneTimberHarvesting

1 NaturalWatercoursewithcontinuousfloworwithadiscerniblechannel≥0.5metreswide

or

Wetlands≥1ha(excludingforestedwetlands)orwetlands(excludingforestedwetlands)thatareassociatedwithanaturalwatercoursethatmeetsthecriteriain1.

<25% 15 30 Partialharvestingispermittedbeyond7metersfromthewatercourse.

≥25% 30 30 Timberharvestingisnotpermitted.

2 Naturalwatercourse<0.5metreswideandwithoutcontinuousflow.

7 7 Allmerchantabletreescanbeharvestedwithinthe7meterbufferzone.

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2b Wetlands<1ha(excludingforestedwetlands)andnotassociatedwithanaturalwatercoursemeetingthecriteriain1.***

7***

7

Allmerchantabletreescanbeharvestedwithinthe7meterbufferzone.

***exception:wetlandsincludedin2bthatare<0.5haandthataredominatedbysphagnum,sparsestuntedtrees,andshrubs(associatedwithBlacksprucesites)donotrequirea7mno-trackingzone.

Table2.SpecialFeatureBuffers

SpecialFeature

BankSlope

NoTrackingZone(m)

Buffer(m)

BufferZoneTimberHarvesting

4 Coldwaterinputsandrefuge(DNR)

na 30 30 Timberharvestingisnotpermitted.

5 ProvinciallySignificantWetlands(DENV)

na 30 30 Timberharvestingisnotpermitted.

6 High-useRecreationalWaters(DNR)

<25% 15 60 Partialharvestingispermittedbeyond15metersfromthewatercourse.

≥25% 30 60 Partialharvestingisbeyond30metersfromthewatercourse.

7 WatersofSpecialInterest(DNR)

• Significantvernalpools na 15 30 Partialharvestingispermitted.

• Significantspawningareas(DNR)

• Brooktroutlakes(DNR)

na 60 60

Partialharvestingispermittedbeyond60metersfromthewatercourse.

• ArcticcharandLaketroutlakes(DNR)

na 60 90

8 DesignatedWatersheds(DENV) <25% 15 75 TimberharvestingispermittedasperDENVlegislativeframework.

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Table2.SpecialFeatureBuffers

SpecialFeature

BankSlope

NoTrackingZone(m)

Buffer(m)

BufferZoneTimberHarvesting

≥25% 30 75 Partialharvestingispermittedbeyond30metersfromthewatercourse.

9 CrownReserveAnglingandLeaseWaters(DNR)

na 30 90 Partialharvestingispermittedbeyond30metersfromthewatercourse.

10 CanadianHeritageRivers

RestigoucheRiver na 60 150 Partialharvestingispermittedbeyond60metersfromthewatercourse.

St.CroixRiver na 60 75&100

11 SpecialAgreementWaters(DNR)

PeltomaLake

(designatedsection)

na 30 200 Partialharvestingispermittedbeyond30metersfromthewatercourse.

LowerNorthBranchLittleSouthwestMiramichiRiver

(designatedsection)

na 500 500 Timberharvestingisnotpermitted.

TheLicenseeisresponsiblefor:

• Bufferzonesadjacenttoallqualifyingnaturalwatercoursesandwetlandsencounteredduringharvesting operations as per Tables 1 & 2, the requirements of the Clean Water Act, itsregulations,termsandconditions.

• Recognizingthefollowingsituationsduringharvestingoperationsandadjustingbufferzonesand/orforestryprescriptionsasnecessarytomeetidentifiedobjectives:

o Landformandforestconditionsthatcouldcompromisetheabilityofthebufferzonetoachievethemanagementoutcomes.

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o Situationswhereimplementingforestryactivitiesinthebufferzonewillcompromisethemanagementoutcomes.

• ObtainingDNRapprovalforadjustmentstobufferzonesthatdeviatefromstandards.

TheGovernmentisresponsiblefor:

• Reviewingandapprovingadjustmentstobufferzonesthatdeviatefromstandards.

ManagementofQualityTolerantHardwoodForestsObjective:

QualitytoleranthardwooddominatedstandsinthegeneralforestwillbemanagedonCrownlandstomaximizethelong-termsupplyofhighqualityhardwoodlogs.Highvaluepotentialtreesintheover-story(wherepresent)willbepromotedasaprimaryobjective.Regenerationofhighqualitytoleranthardwoodspeciesistheexpectationforalltheseareas.

KeyPolicyElements:

• Toleranthardwoodisconsidereddominantwhen>50%ofstandvolume.Thespeciesoffocusforthispolicyinclude:sugarmaple,yellowbirch,oaks,andashes;withconsiderationgiventoAmericanbeechandredmaple.Americanbeechisnotfavoredforpromotionorregenerationexceptwheretreesdisplayclearresistancetothebeechscalediseasecomplex.Redmapleisaubiquitousspeciesofintermediateshadetoleranceandquality:itsvolumecanbetabulatedtowardsthetotaltoamaximumof10%andonlywhenassociatedwithotherhighqualityspecies.

• Qualitypotentialstands should receive a prescriptionunique to their developmentandcondition.

• On-the-groundconditionsshoulddrivequalitytoleranthardwoodmanagement.TargetedOutcomes:

• Immaturecroptreesandregenerationofpotentialhigh-qualityhavebeenpromotedwhereverpossibleandaregrowinginanimprovedstand.

• Thecompositionoffocusspeciesisimprovedinthepost-harvestregeneration.

• Atthelandscapelevel,avarietyoftreatmentsarematchedtoappropriateconditions.

• Atthelandscapelevel,asustainablesupplyofhigh-qualitysaw-materialisbeingachieved.

• Theareaofthequalitytoleranthardwoodforestisbeingmaintained.

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TheGovernmentisresponsiblefor:

• VerifyingaccuratereportingofcompletedtreatmentsintheAnnualReport.

TheLicenseeisresponsiblefor:

• Formulatingprescriptions.

• Controllingharvestoperationstoensuretreatmentsareappropriateandareimplementedproperly.

• Submittingtreatmentresultsasrequiredintheannualreport.

ScaleandUtilizationObjective:

• AccurateandconsistentmeasurementofprimaryforestproductsharvestedfromCrownland.

• AccountingofwoodmeasurementandmovementofharvestedprimaryforestproductsfromCrownland.

• AccurateandtimelyreportingofharvestedprimaryforestproductsfromCrownland.

• Productsareproducedsothattimberofaspecificsizeandqualityisdirectedtoallocatedmillsinafairandequitablemanner.

KeyPolicyElements:AdherencetotheScalingandUtilizationPolicywill:

• Ensurethatappropriatemethodsareusedtomeasureprimaryforestproducts.

• EnsurethatproductandvolumeinformationisaccuratelyreportedforwoodharvestedfromCrownLands.

• AccuratelydescribethemovementofprimaryforestproductsfromCrownlandtothefinalmilldestinationtoenableanaccurateaccountingofallwoodharvestedfromCrownland.

• Minimizetheamountofwastewoodfibreinharvestingandprocessingoperations.

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TheLicenseeisresponsiblefor:

• Reportingspecies/productvolume,origin,destinationandtransportationdetailsaccordingtoappropriatestandards.

• EnsuringthatoperatorsunderstandandfollowDNRutilizationstandards.TheDNRisresponsiblefor:

• Approvalofscalingarrangements.

• AuditingtheLicenseereportingofmeasurement,movement,anddeliveryofCrowntimber.

Operations–RoadsObjective:

TheobjectiveforforestroadsistoprovidesafeaccesstoCrownLandwhilemaintainingwaterqualityandaquatichabitat.Primarily,forestroadsarebuiltandmaintainedtoaccessandtransportCrowntimberandtofacilitateotherforestmanagementandforestprotectionactivities.Forestroadsalsoprovideaccessforprivatewoodlotowners,recreationalusersandotherindustrialusers.KeyPolicyElements:

• Forestroadsandwatercoursecrossingsareconstructed,installedandmaintainedtoacceptedsafetyandenvironmentalstandards.

• AportionoftheforestroadnetworkoneachLicensehasbeen“designated”,mutuallybythe

LicenseeandDNR,toprovidetheprimaryaccesstoCrownLandoneachLicense.

• DesignatedRoadsprovidethebasicforestroadnetworkforaccessingCrownLandandwillbebuilt,maintainedandkeptpassabletomutuallyagreeablestandards.

• TheDesignatedRoaddatabasewillbereviewedannually.

TheLicenseeisresponsiblefor:

• Ensuringthatconstruction,maintenanceandwatercoursecrossinginstallationactivitiescomplywithallpertinentActsandRegulations.

• Designingandconstructingroadsandwatercoursecrossingstomeetrequirementsand

recognizehazards,sensitiveterrainandforestresourcevalues.

• Designingandadaptingmeasurestominimizepotentialenvironmentalimpacts.

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• Monitoringtheconstructiontoensuretheobjectivesarebeingmet.

• Creatingandmaintainingaprioritizeddatabaseofenvironmental,safetyand/orliabilityissues

associatedwithforestroads.

• Submittingroadconstruction,maintenanceandwatercoursecrossinginstallationinformationasrequiredintheAnnualReport,orasagreedmutuallybytheLicenseeandDNR.

TheGovernmentisresponsiblefor:

• VerifyingaccuratereportingofcompletedtreatmentsintheAnnualReport.

Operations–SilvicultureObjective:Growthratesinplantations,pre-commercialthinnings,andcommercialthinnings(collectivelytermed‘managedstands’)areacriticalcomponenttothewoodsupply,andmorebroadlytheFMP.TheLicenseeisaccountableforthesilvicultureareareimbursedandperformanceexpectationssetforthintheFMP.KeyPolicyElements:

• SilvicultureontheLicensemustbecarriedoutinawaythatwillprovidethevolumeandproductsofwoodthatareexpectedtocontributetothesustainablewoodsupplyoutlinedintheforestmanagementplan.

• Averagegrowthrates(bystandtype)mustbeontrackoverafiveyearperiodtoprovidingtheproductandvolumeexpectationssetforthintheforestmanagementplan.

• Silviculturallytreatedareas(plantations,pre-commercialthinnings,andplantationcleanings)ontheLicensemustbeassessedinaccordancewithdefinedperformanceexpectations.

TheLicenseeisresponsiblefor:

• CarryingoutsilvicultureontheLicenseinawaythatwillachievethevolumeandproductsexpectedintheforestmanagementplan.

• Implementingcorrectiveandpreventiveactionswheremajordiscrepanciesarefoundduringthe

assessment.

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• ProvidingDNRwitha5-YearSilviculturePerformanceAssessmentReportthatincludestheresultsofannualperformanceassessmentsalongwithallcorrectiveandpreventiveactionplansthatweredevelopedduringthe5yearperiod.

TheGovernmentisresponsiblefor:

• SettingannualreimbursementratesandtheLicensesilviculturebudget.

AnnualReportTheAnnualReportprovidesasummaryofactivitiesthatwerecarriedoutontheLicenseduringthepreviousyearandisthebasisforupdatingthespatialforestdatabase.TheAnnualReportservesasastatusreportonimplementationoftheFMPandisusedbyDNRandthirdpartyauditorsaspartoftheevaluationofLicenseeperformance.KeyPolicyElements:

• TheAnnualReportdescribesactivitiesthatoccureachoperatingyearbetweenApril1andMarch31inclusivelyandmustbesubmittedbyJune1steachyear.

• MapsandattributesmaybesubmittedtoDNRperiodicallythroughtheyearonaninterim-basis.Theend-of-yearsubmissionwillbeconsideredauthoritativeforthepurposesofLicenseeperformanceevaluation.

• TheAnnualReportwillcontainthefollowingsections:

o RoadsandWatercourseCrossingso Harvesto Silvicultureo FishandWildlife(includingsite-specifichabitats)o ThirdPartyForestCertificationReportso ReportonrelevantAnnualCrownForestManagementIndicators(Schedule“G”)o FinancialAccountabilityReport

TheLicenseeisresponsiblefor:

• ThecompilationandsubmissionoftheAnnualReportforforestryactivitiesonCrownLand.TheGovernmentisresponsiblefor:

• EnsuringthattheProvincialforestdatabaseisupdatedtoreflectreportedforestryactivitiesinatimelyfashion.

• VerifyingthatthereportedactivitiesareconsistentwiththeFMPobjectives.

• SummarizinginformationforProvincialpolicydecisionmakingandNationalreportingrequirements.

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FinancialReport

ForestmanagementactivityonaCrownTimberLicensebetweenDNRandtheLicenseeoccursinthreebroadclassesoftransactions:

• Royalty–thefairmarketvalueofthetimberharvestedasdeterminedthroughperiodicsurveyoftheprivatemarketplaceforequivalentproducts.

• SilvicultureExpenses-reimbursementtoLicenseesforconductingbasicsilviculturetreatmentsinaccordancewiththeFMP,theannualsilviculturebudget,andDNR’sscheduleofreimbursementrates.

• LicenseForestManagementServiceFees–reimbursementtoLicenseesforspecificrequestedmanagementservicesundertakenattherequestof,andonbehalfofDNR.

OnanannualbasistheLicenseewillreportonandreconciletheserevenues,costs,andservices.

AccountabilityUndertheActDNRevaluatesLicenseeforestmanagementperformanceatfive-yearintervals.TheevaluationresultsareusedinDNR’sdecisiontoextendthelengthoftheFMA.Theevaluationisbasedonapredeterminedsetofgoals,objectives,indicatorsandoutcomesrevisedeveryfiveyears.

Thedocument,entitledPerformanceEvaluationStandardsformsSchedule“G”oftheFMA.

Objective:

ToputinplaceastrengthenedframeworkthatholdsLicenseestoaccountfordeliveringuponkeycommitmentssetforthintheFMP.Theforest-leveloutcomesoftheirmanagementeffortswillbeevaluatedagainstkeyperformanceindicators(KPIs)thatspanenvironmental,economic,andsocietalthemes.TheseKPIsarethebasisforLicenseeperformanceevaluation;withsignificantdeterrencefornon-compliancetoDNR’sexpectedoutcomes.

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KeyPrinciples:

• ThisnewframeworkforindustrialforestmanagementoperationsonCrownlandsstillrequiresfullconformancewithallFederalandProvinciallegislation.

• OversightofindustrycomplianceisacoreGovernmentfunction.DirectandfairmeasurementofLicenseesuccessindeliveringsustainableforestmanagement(SFM)outcomesisakeyelementoftheForestManagementAgreement.

• LicenseesmustmaintainingoodstandingthirdpartySFMcertificationfromeithertheSustainableForestryInitiative(SFI),ortheForestStewardshipCouncil(FSC)inadditiontocertificationfromtheInternationalStandardsOrganization’s(ISO)environmentalmanagementstandard–14001.

• Thebodyconductingthecertificationmustbeaccreditedandmutuallyagreed-uponbyboththeLicenseeandDNR.

• DesignatedDNRstaffwillbeembeddedintoallinternalandexternalSFMauditprocess–inthefieldauditsbeingconductedforbothISOandSFI.Thesestaffwillbecomepartoflicensemanagementreviews,andwillbeinvolvedindevelopmentofactionplansrelatedtoCrownlandmanagement.

• Thethirdpartyauditprocesswillidentifyandreportonnon-compliancestooutcomesbasedon:o Historyofpreviousoccurrenceso Frequencyo Severity(impactonenvironmentand/orwoodsupply)o Permanenceofdamage

Goal

Objective2

OutcomesObjective1 KPI1.2

OutcomesKPI1.3

OutcomesKPI1.1

OutcomesKPI2.1

OutcomesKPI2.2

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o Negligenceorperformancemanagementissueso Processofdetermination(self-reportingorother)

• Findingsofthethirdpartyauditorswillbeusedtomeasuresuccessagainstmany(butnotall)of

DNR’sgoals,objectives,andoutcomes.

• AuditreportswillbeaccessibleontheDNRandLicenseewebsitesandwillclearlyindicatethestatusofeachKPI,andanyotherpertinentinformation.

OpportunitiesforImprovementandNon-Conformances:

Opportunitiesforimprovement-issuesthethirdpartyauditorsrecommendthattheLicenseeconsiderimprovingintheirmanagementprocesses.

FailuretomeetDNR’sSFMoutcomescanoccuratvaryinglevelswithinaLicenseeorganization’sprocesses.

• Minornon-conformance–incidentsofprocessfailurethathaveledtounfulfilledoutcomes.Complianceactionplansrequiredtobettercontrolprocess.Environmentaloreconomicdamageincurredsubjecttocorrectiveactionwithinareasonabletimeperiod.

• Majornon-conformance–lackofprocesscontrolrelatedtoanexpectedSFMoutcomeorlackofprogressonacomplianceactionplanfromapreviouslyissuedminornon-conformance.

WhileprocessimprovementisaviableoptionforpursingallSFMoutcomes,certaininstancesoffailuretoachieveintendedoutcomeswillalsorequirecorrectiveactionandenvironmentalremediation.Licenseeswillberequiredtoaddressallknownincidents.MutuallyagreeablecorrectiveactionplanswillbedevelopedbyLicensees.Correctiveactionplanswillprovideareasonabletimeperiodtoaddresstheissue.TheLicenseewillbearthefinancialburdenofcorrectiveactionplans.

Security:

TheLicenseewillberequiredtoprovidesecurityensuringthattheminimumperformancethresholdsagreeduponforeachKPIoutlinedinthePerformanceEvaluationStandardsareachieved.Thisisnotintendedtobeapunitivefinancialmechanismforautomatically“fining”minornon-conformances.AclaimmaybemadeagainstthesecuritybytheMinisteronlyintheeventaLicenseefailstoaddressanon-conformanceorfailstoimplementanagreeduponcorrectiveactionplanwithintheprescribedtimelines,andfailstopaytheMinisteranycorrespondingamountowingasaresultofsuchfailure.

Licenseesarerequiredtofurnishabond,irrevocableletterofcreditorotherequivalentcashsecurityacceptabletotheMinister,actingreasonably,whichsecuritywillbeinanamountcalculatedbasedon$3.00perhectareofLicensearea.Therequirementforthesecuritywillbereviewedevery5-yearperiodduringthetermoftheFMA.TheMinistermayreducethevalueofrequiredsecurityintheeventthatduringthepreceding5-yearperiod:(i)therehasbeennochangeincontroloftheLicensee,

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and(ii)theLicenseehasdemonstrated,tothesatisfactionoftheMinister,theircompliancewiththerequirementsundertheiroperatingplan,managementplanandindustrialplan.TheMinistermayincreasethevalueofrequiredsecurityintheeventthatduringthepreceding5-yearperiodtheLicenseehasnotdemonstrated,tothesatisfactionoftheMinister,theircompliancewiththerequirementsundertheiroperatingplan,managementplanandindustrialplan.

Within60daysaftertheendoftheapplicablereportingperiod(usuallyfiveyears,butinsomeinstancesthereportingperiodmaybeoneyearforsomeKPIs),theMinisterwillreviewtheLicensee’sperformanceandadvisetheLicenseeinwriting(withaKPINotice)ifitbelievestheLicenseefailedtosatisfytheminimumperformancethresholdforeachapplicableKPI;failingwhichtheLicenseewillbedeemedtohavesatisfiedtheapplicableKPI.Within60daysfollowingreceiptofaKPINotice,thepartieswillmeetandagreeonthespecificfailure(s)andtheLicensee’scorrectiveactionplantomitigatetheeffectofanysuchfailure(s).TheLicenseewillhaveuntiltheendofthenextreportingpertainingtothatKPItosuccessfullyimplementthecorrectiveactionplan.IntheeventtheLicenseefailstousereasonableeffortstoimplementthecorrectiveactionplan,theMinistermay,uponprovidingtheLicenseewithatleast60dayspriorwrittennotice,requiretheLicenseetopaytheMinisteranamountequaltothedirectlossresultingfromtheLicensee’sfailuretosatisfytheminimumperformancethresholdfortheapplicableKPI(the“ClaimAmount”);providedsuchfailureremainsoutstandingattheendofsuch60-dayperiod.Subjecttoadisputemadeingoodfaith,iftheLicenseefailstomakepaymentoftheClaimAmountwithin30days,theMinistermaymakeaclaimunderthesecurity,asapplicable,astheMinister’ssoleandexclusiveremedyforsuchfailure.

TheClaimAmountwillbedeterminedbytheMinister,actingreasonably.Allreasonableback-upinformationandcalculationswillbeprovidedbytheMinistertotheLicenseeinsupportofsuchclaim.IntheeventtheLicenseedisputestheClaimAmountandsuchdisputecannotbesettledbythepartiesthemselves,thepartiesshall,unlessotherwiseagreed,subjectthemattertoarbitrationbyasinglearbitrator.ThearbitrationwillbeseatedintheCityofFredericton,NewBrunswickunderthelawsofNewBrunswickinaccordancewiththeArbitrationAct(NB).ThelanguageofthearbitrationwillbeEnglish.Thecostofthearbitrationwillbesharedequallybetweentheparties.

BreachofResults-BasedForestryOption:

Results-basedforestryisacriticalelementtheoverallFMA.Subjecttoallapplicablecureperiods,theLicenseewillbeconsideredinmaterialbreachoftheirobligationsundertheresults-basedforestryoptioninanyofthefollowingcircumstances:

• Failuretousereasonableeffortstoimplementamitigationplantoremedyathirdpartyauditfindingindicatingamajornon-conformancerelatedtoaKPIoroutcome;or

• ThelossofthirdpartySFMcertificationundereithertheSFIorFSC,andfailuretousereasonableeffortstoregainsuchthirdpartySFMcertificationwithinareasonableperiodoftime.

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CommitmenttoContinuousImprovementForestmanagementpracticesonCrownlandswillevolveovertimethroughefficiencyandqualityimprovementsandthroughdevelopmentofnewtechnologies.ALicensee’scommitmenttoprocessimprovementisapre-requisiteforparticipationinresults-basedLicensemanagement.Processimprovementwillbethemodelforthedevelopmentandevolutionofbest-managementpractices,standardoperatingprocedures,andregulatoryoversight.Overtime,landmanagementcoststoGovernmentandindustrymustdecrease;productivitymustincrease;allwhileenvironmentalvaluesaremaintained.

KeyPolicyElements:

• TheLicenseewillmaintainanenvironmentalmanagementsystem,auditedindependently,towhichDNRhascompleteaccessandtransparencyofinformation.

• TheLicenseeandDNRwillundertakejointprocessimprovementinitiativesasneededtoachievemutuallybeneficialcostsavingsandtobetterachievedesiredoutcomesforCrownforestmanagement.

TheLicenseeisresponsiblefor:

• DevelopmentofbestmanagementpracticesandstandardoperatingproceduresforCrownforestmanagementinco-operationwithDNR.

• ExercisingprocesscontroloveralloperationsthatcouldsignificantlyimpactCrownforestmanagementobjectives.

• IntegrationofbestmanagementpracticesintooperationsonCrownland.

TheGovernmentisresponsiblefor:

• DevelopmentofbestmanagementpracticesandstandardoperatingproceduresforCrownforestmanagementincooperationwiththeLicensee.