west fraser timber co. ltd. fraser timber co. ltd. ... west fraser timber co. ltd. report to...

West Fraser Timber Co. Ltd.

E N V I R O N M E N T A L R E p O R T 2 0 1 1

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Report to Shareholders

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West Fraser Environmental Policy

West Fraser is committed to responsible stewardship of the environment. A philosophy of

continual improvement of our forest practices and manufacturing procedures has been

adopted to optimize the use of resources and minimize or eliminate the impact of our

operations on the environment.

West Fraser recognizes that environmental excellence is an integral aspect of long-term business

success. Our Company and its employees are committed to the following:

• Complyingwithallapplicableenvironmentallawsandregulations,andwithother

requirements to which the organization subscribes.

• Preventingpollutionandcontinuingtoimproveourenvironmentalperformancebysetting

and reviewing environmental objectives and targets.

• Conductingperiodicenvironmentalaudits.

• Providingtrainingforemployeesandcontractorstoensureenvironmentallyresponsible

work practices.

• Communicatingourenvironmentalperformancetoemployees,customers,shareholders,

local communities and other stakeholders.

• Reviewing,onaregularbasis,thispolicytoensurethatitreflectstheCompany’songoing

commitment to environmental stewardship.

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Environmental Certification

WestFrasermaintainsvariouscertificationsrelatedtotheCompany’swoodlands,fibresupplychainandmanufacturingoperations.

WestFraser’swoodlandsoperationsinBritishColumbiaandAlbertaarecertifiedthroughtheSustainableForestryInitiative(“SFI”).SFI

is an internationally recognized system which certifies that forest management practices are carried out to a standard that integrates

thesustainablegrowingandharvestingoftreeswiththeprotectionofwildlife,plants,waterandsoilquality,andwithawiderangeof

other conservation goals.

WestFraseralsosubscribestotheProgrammeforEndorsementofForestCertification(“PEFC”)standardforitsCanadian-produced

forest products. pEFC chain of custody allows the Company to demonstrate to customers that the fibre in its supply chain comes from

sourcesthatcomplywithapplicablelaws,regulationsandsustainableresourcestandards.

InadditiontothePEFCcertification,theCompany’sfourpulpandtwoMDFmillsareregisteredtotheForestStewardshipCouncil’s

(“FSC”)StandardforChainofCustodyCertificationandtheStandardforCompanyEvaluationofFSCControlledWood.Thisallows

verificationthattheCompany’spulpandMDFproductsarenotderivedfromcontroversialsources.

TheCompanyalsomaintains ISO14001certificationof theEnvironmentManagementSystem(“EMS”)at itsCanadianwoodlands

operations. This provides independent verification that the Company considers and takes measures to minimize or eliminate the

environmental impact of its activities while striving for performance improvements.

Withrespecttomanufacturingactivities,eachoftheCariboo(“CPP”),Hinton(“HP”)andQuesnelRiver(“QRP”)pulpmillsmaintains

anEMSISO14001certification,whileeachoftheAlbertaNewsprintmillandtheSlaveLakepulpmillmaintainscertificationofitsEMS

andsafetyprogramsundertheAlbertaForestProductsAssociationForestCareprogram.EachoftheCompany’stwoMDFoperations

maintainsGreenCrossCertification,whichverifiesthatitsproductsaremanufacturedfrom100%recycledmaterial.

Formoreinformationoncertification,refertotheWestFraserSustainabilityReportatwww.westfraser.com.

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Conservation

InMay2010WestFraserand20otherforestcompanieswhoaremembersoftheForestProductsAssociationofCanadasignedthe

CanadianBorealForestAgreement(“CBFA”).TheCBFAisanagreementbetweenthesecompaniesandnineenvironmentalorganizations

whichappliesto72millionhectaresofpublicforeststhatarelicensedtothecompanies.Whenfullyimplemented,theCBFAisexpected

toconservesignificantareasofCanada’sborealforest,protectthreatenedwoodlandcaribouandprovideacompetitivemarketedgefor

participatingcompanies.ForfurtherinformationandmaterialsontheCBFA,visit:www.CanadianBorealForestAgreement.com.

Aswell,during2011theCompanycontinuedtoworkwithgovernmentagencies,industryandpublicinterestgroupsrelatedtowildlife

habitat protection and multiple use of the woodlands under its management. For more on these conservation initiatives refer to the West

FraserSustainabilityReportatwww.westfraser.com.

Permits and Approvals

IntheU.S.,theEnvironmentalProtectionAgencyissuedthefinalversionoftheBoilerMACTRule(MaximumAchievableControlTechnology)

inDecember2011.ThisruleislikelytoaffectvariousindustrialsitesintheU.S.includingseveralofWestFraser’sU.S.operations.

Effluent Quality, Air Quality and Greenhouse Gases

In2011WestFraseroperatedfivepulpandpaperfacilitiesinB.C.andAlberta.Alloftheseoperationshavetakenmeasuresaimedat

sustainability,includingreducedenergyconsumption,andgreenhousegas(“GHG”)emissionsandimprovedeffluentandairquality.

FormoreinformationoneffluentandairqualityandGHG,refertotheWestFraserSustainabilityReportatwww.westfraser.com.

Climate Change Regulation

AlbertaispresentlytheonlyjurisdictioninwhichWestFraserhasoperationsthathasamandatoryGHGemissionreductionsystemin

place.TheAlbertalegislationmandateda12%reductioninGHGemissionintensityforeachapplicablefacilitybytheendof2007.HP

is the only West Fraser operation in Alberta subject to the reduction.

Intotal,WestFraser’sAlbertaoperationshavegeneratedover670,000GHGcreditsandoffsetsfromfuelswitchingandenergyreduction

projects.

In2011,theB.C.governmentcontinuedtotakepartintheWesternClimateInitiative’s(“WCI”)developmentofaregionalGHGcap

andtradesystem,however,thegovernmentwillnotimplementtheprogramin2012asoriginallyplanned.TheWCIisacollaboration

ofcertainwesternU.S.statesandtheCanadianprovincesofB.C.,Manitoba,OntarioandQuebec,withthegoaltodevelopregional

strategiestoaddressclimatechange.Thegroupissuedthedetaileddesignforaregionalcapandtradesystemin2010andthetarget

dateforimplementationwastobe2012.However,severalofthejurisdictionsparticipatingintheWCIhavestatedthattheywillnotbe

implementingthesystembythenandonlyCaliforniaandQuebeccontinuetotargetthe2012date.Atthistime,theB.C.governmentis

assessingtheeconomicimpactofproposedGHGreductionprograms.

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Environmental Certification (continued)

UnderB.C.’sGHGlegislation,twoofWestFraser’spulpmills(QRPandCPP)reportedtheir2010third-partyverifiedGHGemissionsin

thespringof2011.Their2011emissionswillalsobereported.

During2011 theCanadian government did not take any steps or announce any initiatives to regulateGHGemissions from forest

products. Canada continues to monitor regulatory developments in the U.S. and the government has stated that any regulatory

approachitdevelopswouldbesimilartoapproachesdevelopedbytheU.S.Atthistime,itisnotpossibletopredictinwhatformorwhen

CanadamayimplementaGHGreductionschemethatwouldaffecttheforestproductsindustry.

B.C.implementedacarbontaxonpurchasedhydrocarbonfuelsinJuly2008.ThetaxincreasedonJuly1,2011from$20to$25per

tonneofcarbondioxideequivalentemissionsandwillincreasebyanadditional$5onJuly1,2012.ThishasaffectedallWestFraser’s

B.C.divisions.The2012increaseisthelastincreaseundertheexistinglegislation.TheB.C.governmenthasnotannouncedanymore

increases in the tax but is assessing the possibility.

Non-compliances, Charges, Spills

TheB.C.MinistryofEnvironment (the“MoE”) issuedapollutionpreventionorder relating to theFraserLakesawmill’sstormwater

runoff.Inresponse,WestFraserdevelopedandimplementedaplantotreatthestormwaterrunoff.Astormwatertreatmentsystemwas

constructedandtheMoEissuedapermitforitsoperation.TheCompanyalsoreceivedtwoviolationticketsimposingfinesof$575each

foranincidentpriortothecompletionofthestormwatertreatmentsystem,whensomedischargedstormwaterwasfoundtobetoxic.

WestFraserandtheB.C.MinistryofNaturalResourceOperations(formerlytheMinistryofAgricultureandLands)areworkingtogether

to develop a remediation plan for a coal-washing waste pile on Vancouver Island. The Crown lease for the waste pile was owned for

manyyearsbyWeldwoodofCanadaLimitedwhichwasacquiredbytheCompanyin2004.Thewastepilewasformedinthelate19th

andearly20thcenturywhencoalminingwasasignificantindustryonVancouverIsland.

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0

20

40

60

80

100

Cariboo Pulp & Paper (%)

07 08 09 10 11 0

20

40

60

80

100

Hinton Pulp (%)

0

20

40

60

80

100

Alberta NewsprintCompany (%)

0

20

40

60

80

100

Slave Lake Pulp(%)

0

20

40

60

80

100

Quesnel River Pulp(%)

COMPLIANCE WITH TOXICIT Y REGUL ATIONS

0

5000

10000

15000

20000

Cariboo Pulp & Paper(kilograms per day)

0

2000

3000

4000

5000

6000

Hinton Pulp (kilograms per day)

0

1000

2000

2500

3000

3500

Alberta NewsprintCompany (kilograms per day)

0

1000

1500

2000

2500

3000

Slave Lake Pulp(kilograms per day)

0

200

400

600

800

1000

Quesnel River Pulp(milligrams per litre)

TOTAL SUSPENDED SOLIDS

5000 permit level

1000

19725 permit level

4868 permit level

1500

500

3500 permit level

3200 permit level

500

2800 permit level 938 permit level

655 permit level

616 permit level

0

2000

4000

6000

8000


0

1500

2000

2500

3000

3500


0

1000

2000

2500


0

1000

1500

2000


0

100

200

300

400


BIOCHEMICAL OXYGEN DEMAND

3300 permit level

1000

7890 permit level

1500

500

2100 permit level

2000 permit level

500

1750 permit level

364 permit level

500

07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11

07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11

07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11

3088 permit level

0

20

40

60

80

100


07 08 09 10 11 0

20

40

60

80

100

Hinton Pulp (%)

0

20

40

60

80

100


0

20

40

60

80

100

Slave Lake Pulp(%)

0

20

40

60

80

100



0

5000

10000

15000

20000


0

2000

3000

4000

5000

6000


0

1000

2000

2500

3000

3500


0

1000

1500

2000

2500

3000


0

200

400

600

800

1000



5000 permit level

1000

19725 permit level

4868 permit level

1500

500

3500 permit level

3200 permit level

500


655 permit level

616 permit level

0

2000

4000

6000

8000


0

1500

2000

2500

3000

3500


0

1000

2000

2500


0

1000

1500

2000


0

100

200

300

400



3300 permit level

1000

7890 permit level

1500

500

2100 permit level

2000 permit level

500

1750 permit level

364 permit level

500

07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11

07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11

07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11

3088 permit level

0

20

40

60

80

100


07 08 09 10 11 0

20

40

60

80

100

Hinton Pulp (%)

0

20

40

60

80

100


0

20

40

60

80

100

Slave Lake Pulp(%)

0

20

40

60

80

100



0

5000

10000

15000

20000


0

2000

3000

4000

5000

6000


0

1000

2000

2500

3000

3500


0

1000

1500

2000

2500

3000


0

200

400

600

800

1000



5000 permit level

1000

19725 permit level

4868 permit level

1500

500

3500 permit level

3200 permit level

500


655 permit level

616 permit level

0

2000

4000

6000

8000


0

1500

2000

2500

3000

3500


0

1000

2000

2500


0

1000

1500

2000


0

100

200

300

400



3300 permit level

1000

7890 permit level

1500

500

2100 permit level

2000 permit level

500

1750 permit level

364 permit level

500

07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11

07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11

07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11

3088 permit level

West Fraser Timber Co. Ltd.

Tel:604.895.2700

Fax:604.681.6061

www.westfraser.com

west fraser timber co. ltd. fraser timber co. ltd. ... west fraser timber co. ltd. report to...

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