Transacting Logs by Weight Transacting Logs by WeightA Western US Overview A Western US Overview

Neal T. Hart, Jendro & Hart, LLC Neal T. Hart, Jendro & Hart, LLC Timber Measurement Society, Central Meeting, April 6 Timber Measurement Society, Central Meeting, April 6--8 2011, Tacoma Washington 8 2011, Tacoma Washington

Western US log scaling Western US log scaling practices are changing practices are changing

cubic and weight scaling cubic and weight scaling is replacing is replacingboard foot measure board foot measure

Weyerhaeuser Company, Weyerhaeuser Company, 2008 Annual Report 2008 Annual Report

1968: Two Young Growth Sales 1968: Two Young Growth Sales1969: 21 mmbf of SG 1969: 21 mmbf of SG1970: Entire JSF Sale Program 1970: Entire JSF Sale Program

including 19 mmbf SG & including 19 mmbf SG &15 mmbf of OG 15 mmbf of OG

Weight Scaling Weight Scaling in California in California’’ssJackson State Jackson State Forest Forest “”

0

500

1,000

1,500

2,000

2,500

3,000

19801984198819921996200020042008

MM

BF Scribner

Idaho & Montana Timber Harvest by Idaho & Montana Timber Harvest by Ownership, 1980 Ownership, 1980 --2008 2008

Private Private

National NationalForest Forest

State State

BIA & BLM BIA & BLM

43%43%

47%47%1980s

69%69%

15%15%

2000s

Harvest from National Forests in the Harvest from National Forests in the Intermountain West Intermountain West

0

50

100

150

200

250

300

350

400

450

5001985 1985

1995 19952005 2005

mm ft mm ft33

--86% 86%

05

101520253035

NetGrowth

NaturalMortality

Harvest

Intermountain Region Intermountain RegionNet Growth, Mortality & Harvest Net Growth, Mortality & Harvest

per acre of Timber Land per acre of Timber Land

NetGrowth

NaturalMortality

Harvest

ft3

Inventory of Sound Dead Volume Inventory of Sound Dead VolumeIntermountain Region Intermountain Region

0

2

4

6

8

10

12

14

16

18

19851995

2005Billion ft3

17.1 Billion 17.1 Billion Cubic Feet Cubic Feet

35 times 35 times annual harvest annual harvest from all from all ownerships ownerships

0

2

4

6

8

10

12

14

16

18

20

22

24

19721980198819962006

SED

Average Sawlog Diameter Average Sawlog DiameterWashington Sawmills 1972 Washington Sawmills 1972 --2008 2008

Source: Washington Mill Survey Source: Washington Mill Survey

Interior Interior

Coast Coast

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

46810121416182022242628303234363840Log SED (in)

8'10'12'14'16'18'20'

0.111 Taper (in per ft):

Scaling Segment Length

Scribner Diameter Bias (in):Scribner Trim-Logs to 16'

Scribner Trim-Logs 17'+ (ft):

0.00

0.50

1.00

Cubic Meters per MBF Scribner Cubic Meters per MBF Scribner Decimal C, Decimal C, Gross Short Log Scale Gross Short Log Scale

Today TodayMore than Half of the More than Half of the Harvest Produces Logs Harvest Produces Logs Under 10 inches SED Under 10 inches SED

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

46810121416182022242628303234363840Log SED (in)

8'10'12'14'16'18'20'

0.111 Taper (in per ft):

Scaling Segment Length

Scribner Diameter Bias (in):Scribner Trim-Logs to 16'

Scribner Trim-Logs 17'+ (ft):

0.00

0.50

1.00

Tons per MBF Scribner Tons per MBF ScribnerDecimal C, Gross Short Log Scale Decimal C, Gross Short Log Scale

Weight Is Blind Weight Is Blind

••Ignore Trim Ignore Trim••Ignore Taper Ignore Taper••Truncate Diameter Truncate Diameter

On the Plus Side On the Plus Side Weight WeightCan Can’’tt::

••Round to Round to XX#lbs #lbsIt Can It Can’’tt““See See””Cracks, or Cracks, or Any Other Defects Any Other Defects

--0.003% 0.003% The Alternatives: The Alternatives:••Weight WeightisisWeight Weight

••Cubic Cubic~~Cubic Cubic

••Board Foot Board Foot

of Lumber of Lumber

isisnot nota Board Foot a Board Foot

in Scribner

Where its goal is to measure total solid-wood fiber

Hypothetical Mill Test for 100 m Hypothetical Mill Test for 100 m33of Logs of Logsin Each Diameter Class from 6 in Each Diameter Class from 6””to 11 to 11””

0%

5%

10%

15%

20%

25%

1216202428323640

Distribution ofLog Lengths

••Constant Taper of Constant Taper of1 inch in 9 feet 1 inch in 9 feet

••Defect Defect--Free DF Logs Free DF Logs

••Same Distribution of Same Distribution ofLengths in Each Lengths in Each Diameter Class Diameter Class

Assumptions Assumptions

Hypothetical Mill Test for 100 m Hypothetical Mill Test for 100 m33of Logs of Logsin Each Diameter Class from 6 in Each Diameter Class from 6””to 11 to 11””

Logs In Logs In66””77””88””99””1010””1111””

Cubic Meters 100 100 100 100 100 100 Cubic Meters 100 100 100 100 100 100# of Logs 338 267 217 179 150 128 # of Logs 338 267 217 179 150 128

Tons 113 111 110 108 104 103 Tons 113 111 110 108 104 103

LLS 12.5 12.5 12.2 12.8 14.4 15. LLS 12.5 12.5 12.2 12.8 14.4 15.33SLS 14.1 15.1 15.9 16.6 17.9 18. SLS 14.1 15.1 15.9 16.6 17.9 18.55

Scribner MBF: Scribner MBF:

MBF LT 25.5 27.4 29.0 30.3 31.4 32.4 MBF LT 25.5 27.4 29.0 30.3 31.4 32.4BDU 19 18 16 15 14 BDU 19 18 16 15 141313

Lumber & Chips Out Lumber & Chips Out

Hypothetical Mill Test for 100 m Hypothetical Mill Test for 100 m33of Logs of Logsin Each Diameter Class from 6 in Each Diameter Class from 6””to 11 to 11””

SED: SED:66””77””88””99””1010””1111””

BF / m BF / m33260 278 297 313 326 335 260 278 297 313 326 335BF / Ton 232 249 269 290 312 325 BF / Ton 232 249 269 290 312 325

Lumber Recovery Factors Lumber Recovery Factors

Short Log 1.92 1.87 1.87 1.87 1.79 1.78 Short Log 1.92 1.87 1.87 1.87 1.79 1.78Long Log 1.98 2.07 2.21 2.10 1.92 1.97 Long Log 1.98 2.07 2.21 2.10 1.92 1.97

Scribner ScribnerOverrun: Overrun:

Total Sales Revenue, Total Sales Revenue,Revenue per m Revenue per m33and Revenue per Ton and Revenue per Ton

Total Revenue

Total Revenue

Ave. R

evenueA

ve. Revenue

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

6"7"8"9"10"11"$0

$20

$40

$60

$80

$100

$120Rev. per m3

Rev. per Ton

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

6"7"8"9"10"11"$500

$550

$600

$650

$700

$750

$800

Total Sales Revenue, Total Sales Revenue,Revenue per MBF Scribner, LLS & SLS Revenue per MBF Scribner, LLS & SLS

Total Revenue

Total Revenue

Ave. R

evenueA

ve. Revenue

Rev. per MBF LLS

Rev. per MBF SLS

$320$330$340$350$360$370$380$390$400$410$420$430$440$450$460$470$480$490$500

6"7"8"9"10"11"

Return To Log Value Return To Log Value

$/MBF SL Scribner $/MBF SL Scribner

$/MBF LL Scribner $/MBF LL Scribner

$170$180$190$200$210$220$230

6"7"8"9"10"11"

$40$50$60$70$80

6"7"8"9"10"11"

$/Ton $/Ton$/Cubic Meter $/Cubic Meter

$/MBF Lumber Tally $/MBF Lumber Tally

Tons per MBF Scribner Conversion Factors Tons per MBF Scribner Conversion FactorsWashington Department of Revenue (DOR) Washington Department of Revenue (DOR)

Westside WestsideLL Scribner LL Scribner

WA DOR Tons/MBF Factor WA DOR Tons/MBF FactorEastside EastsideSL Scribner SL Scribner

WA DOR Conversion Factor to translate WA DOR Conversion Factor to translatefrom SL to LL Scribner is: from SL to LL Scribner is:0.82 0.82

Douglas Douglas--fir fir5.50 5.507.50 7.50

Western Hemlock Western Hemlock5.50 5.508.25 8.25Western Red Cedar Western Red Cedar4.50 4.507.00 7.00

Implied ImpliedSL / LL SL / LL

Factor Factor

÷÷==0.73 0.73

÷÷==0.67 0.67÷÷==0.64 0.64

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

46810121416182022242628303234363840Log SED (in)

8'10'12'14'16'18'20'

0.111 Taper (in per ft):

Scaling Segment Length

Scribner Diameter Bias (in):Scribner Trim-Logs to 16'

Scribner Trim-Logs 17'+ (ft):

0.00

0.50

1.00

Tons per MBF Scribner Tons per MBF ScribnerDecimal C, Gross Short Log Scale Decimal C, Gross Short Log Scale

WA DOR Tons/MBF Factor for DF WA DOR Tons/MBF Factor for DF

0123456789

10

02468101214161820

WA DOR

Montana

Washington

Log Diameter (SED)

Tons per MB

F Douglas Douglas--fir: fir:Tons/MBF Net Scribner SLS Tons/MBF Net Scribner SLS

Montana & Washington Scale Data Compared With Montana & Washington Scale Data Compared WithWA DOR Statutory Conversion @ WA DOR Statutory Conversion @ 5.5 5.5Tons/MBF Tons/MBF

Using A Tons/MBF Factor That Is Too Low Using A Tons/MBF Factor That Is Too Low Results in Overpayment of Taxes Results in Overpayment of Taxes

IfIfCorrect CorrectTons/MBF Tons/MBFFactor is: Factor is:

Using 5.50 Tons/MBF Using 5.50 Tons/MBFWill Cause Excise Tax Will Cause Excise Tax Overpayment of: Overpayment of:

6.50 6.5018% 18%36% 36% 7.50 7.5055% 55% 8.50 8.50

Published Conversion Factors Published Conversion Factors