Province Removes Land From Tree Farm License

By 250 News

VICTORIA - Ensuring payments to local suppliers and contractors  affected by Pope & Talbot's bankruptcy, along with other community benefits, were key factors in a decision to approve the removal of  private land from Tree Farm Licence 23, Forests and Range Minister Pat Bell announced today.

"This was an important decision and one of much interest to the residents of the Kootenays," said Bell. "We engaged in extensive consultations and I want to thank everyone who participated. As a result, I think we've arrived at a good outcome for the communities and particularly for the local suppliers and logging contractors hurt by Pope & Talbot's bankruptcy."

The minister approved the removal of 4,341 hectares of private land from Tree Farm Licence (TFL) 23 in the Arrow Boundary and Columbia forest districts based on the following:

* The forest management concerns associated with the deletion can be
largely mitigated.
* 130 hectares of private land considered high value mountain caribou
habitat will not be removed from the TFL and will continue to be
managed as Crown land.
* Payment of $4,150,000 to 92 Arrow/Boundary local suppliers and
logging contractors whose primary business emanated from woodlands
operations of Pope & Talbot Ltd.
* Payment of $211,000 to Arrow/Boundary contractors that provided
surety bonds to Pope & Talbot Ltd.
* Donation of $50,000 to the Nakusp Community Forest.
* Province's purchase of the nine-hectare Eagle Bay recreation site for
$1.00 (estimated value $425,000).
* Province's purchase of the 55-hectare Oatscott property for $1.00
(original asking price was $495,000), contingent on the issuance of a
foreshore lease for the Needles log dump.
* Continued road access through private land formerly part of the tree
farm licence as well as other private land parcels formerly held by
Pope & Talbot (estimated value between $418,000 and $528,000).
* Continued Crown access to log dumps and gravel sources.

"Times are tough in the forest sector right now - and especially for local logging contractors that were affected when Pope & Talbot ceased operating," said Wayne Lintott, general manager, Interior Logging Association. "I'm thrilled that government was able to secure more than $4.3 million in payments to local contractors as a condition to
removing the private land from TFL 23."

In October 2007, Pope & Talbot sought protection under the Canadian Companies' Creditors' Act and began selling off its assets. It listed private land within TFL 23 for sale, subject to ministerial approval of the land being removed from the tree farm licence. In December 2007, Interfor purchased the logging rights associated with the Crown portion
of the tree farm licence.

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