Montana DNRC Trust Land Management Division Forest Management Program. Presented by: Shawn Thomas Chief, Forest Management Bureau

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1 Presented by: Shawn Thomas Chief, Forest Management Bureau

2 Purpose Provide Land Board members understanding of the Trust Land Management Division Presentation Overview TLMD and General Overviews Forest Management Regulatory Overview Forest Management Project Implementation Economics Old Growth Future of

3 TLMD and Forest Management Program General Overviews

4 TLMD General Overview Total Acreage 5.1 million acres surface 6.2 million acres subsurface Lands classified by predominant, not only, land use Grazing Agriculture Forest Other

5 General Overview 726,662 acres of forestland throughout state 116,462 acres unmanageable (16 %) 51,521 acres non-commercial (7%) 558,679 acres available for management (77%) Mission: We sustainably manage Montana s forested state trust lands to maximize long-term revenue while promoting healthy and diverse forests.

6 General Overview Scattered lands pose management challenges: Road access Efforts on trust lands can be nullified by adjacent properties 572,256 acres scattered lands Scattered Lands Blocked Lands Blocked lands allow for more effective management: Easier access Implement management on a landscape basis 154,406 acres blocked lands

7 Forest Management Regulatory Overview

8 Regulatory Overview State Forest Land Management Plan Administrative Rules for Forest Management Annual Sustainable Yield Montana Statute Cooperative Agreements and Workgroups

9 State Forest Land Management Plan Plan under which DNRC manages forested state trust lands. Provides consistent policy and direction for field personnel. History Court case brought against DNRC requiring update to management plan in the Swan River State Forest. DNRC opted to develop a statewide programmatic plan. Considered a total of 7 Alternatives. Completed in 1996

10 State Forest Land Management Plan Alternatives Considered 1. No change 2. Intensive forest management to produce revenue and enhance environmental quality 3. Maintain or enhance undeveloped forest conditions 4. Flexibility in dominant land uses based on market conditions 5. Intensive forest management while meeting minimal standards for environmental protection 6. Marketing outdoor recreation and wildlife viewing 7. Combination of alternatives - Omega Alternative chosen and adopted by the Board was Omega

11 State Forest Land Management Plan Management Philosophy Best way to produce long-term income for the trusts is to manage intensively for healthy and biologically diverse forests. A diverse forest is a stable forest that will produce the most reliable and highest long-term revenue stream. In the foreseeable future timber management will continue to be our primary source of revenue and primary tool for achieving biodiversity objectives.

12 Administrative Rules for Forest Management Specific legal resource management standards and measures under which DNRC implements the SFLMP and subsequently its forest management program. History Court case determined that old-growth guidance in the SFLMP was subject to rulemaking under Montana Administrative Procedures Act (MAPA). DNRC made rules for all resource management standards in the SFLMP and for other resource management guidance. Rules were completed and implemented in 2003.

13 Administrative Rules for Forest Management General Categories Biodiversity Silviculture Road and Watershed Management Fisheries Threatened, Endangered, and Sensitive Species and Big Game Monitoring

14 Biodiversity ARMs Coarse Filter Approach Promote biodiversity through favoring an appropriate mix of forest stand structures and tree species on state lands using numerous ecological characteristics (disturbance regime, patch size, connectivity of mature forest, age, species, etc.) Desired Future Conditions (DFC) Based on model that identifies the stand s cover type circa Determines what species should be promoted in stands.

15 Biodiversity ARMs Old Growth Management Definition adopted from Green et al Stands that meet minimum criteria for number, size, and age of trees per acre for a given combination of cover type and habitat type. Manage for old growth to meet biodiversity and fiduciary objectives. Apply restoration, maintenance and removal treatments consistent with natural disturbances.

16 Silviculture ARMs Even-aged Management

17 Silviculture ARMs Uneven-aged Management

18 Road and Watershed Management ARMs Streamside Management Zone Restricts harvest activities in buffers Establishes buffer along streams Ensure sediment filtration Ensure stream temperature control Ensures woody debris recruitment

19 Road and Watershed Management ARMs Montana Best Management Practices for Forestry Reduce forest management impacts to water quality and soils

20 Fisheries ARMs ARMs require us to conserve important fisheries resources and cooperate with other fisheries managers and road management partners to implement conservation and recovery strategies

21 Threatened, Endangered, Sensitive Species, and Big Game ARMs Management strategies focused on minimizing effects to species such as: Canada lynx (threatened) bull trout (threatened) grizzly bear (threatened) pileated woodpecker (sensitive) fisher (sensitive) sensitive plant species (ex. water howelia) elk (big game)

22 Swan Valley Grizzly Bear Conservation Agreement Cooperative agreement between DNRC, Plum Creek Timber Company, Flathead National Forest, and USFWS. (The Nature Conservancy soon to be added) Agreed-upon mitigations: minimize open road densities spring period restrictions in spring habitat rotational schedule limit roads in preferred habitat and riparian zones visual screening along roads maintain appropriate proportions of cover prohibit contractors from carrying firearms restrict and reclaim roads

23 Swan Valley Grizzly Bear Conservation Agreement BMU Subunits

24 Monitoring SFLMP Monitoring conducted annually, reported every 5 years Biodiversity Silviculture Road Management Watershed Fisheries Threatened, Endangered, Sensitive Species Grazing on Classified Forest Lands Weed Management Recommendations for Improvement

25 Monitoring: Regeneration Surveys

26 Monitoring Best Management Practices (BMP) Audits Conducted biennially to evaluate the application of BMP s and effectiveness in limiting non-point source pollution from logging operations Audit Results: Practice DNRC Federal Industry NIPF Totals BMP Application 98% 96% 99% 91% 97% BMP Effectiveness 98% 96% 99% 91% 97% SMZ Application 100% 99% 94% 89% 94% SMZ Effectiveness 100% 99% 98% 92% 97%

27 Monitoring Soil Monitoring 5 projects completed annually, with over 90 soil monitoring projects completed since Monitoring efforts used for adaptive management, forecasting soil resource impacts in MEPA, and assessing impacts to longterm productivity. DNRC Soil Monitoring Sites

28 Monitoring Wildlife Monitoring Swan Valley Grizzly Bear Conservation Agreement Snag and coarse woody debris Bald eagle Project mitigations for various wildlife species Swan River State Forest fisher buffer Cooperative working group monitoring DNRC conducts various other independent monitoring on roads and forest inventory.

29 Annual Sustainable Yield One of DNRC s fundamental management principles for conducting forest management on state trust land. Calculation determines the amount of timber that can be harvested annually on a sustainable basis from state trust lands. Incorporates important ecological commitments from the SFLMP and ARMs related to biodiversity, forest health, threatened and endangered species, riparian buffers, old growth, and desired tree species. Required to recalculate at least every 10 years ( , MCA) , MCA also states that the annual sustainable yield constitutes the DNRC s timber sale requirement.

30 Annual Sustainable Yield History The first Sustainable yield calculation performed by DNRC was done in 1983 the result of that calculation was a yield of 50 MMbf Montana State Legislature passed law requiring DNRC to hire independent third party to calculate ASY and that ASY constitutes annual timber sale requirement for state. A calculation was completed in 1996 and estimated to be 42.2 MMbf Legislature required DNRC to recalculate calculation estimated to be 53.2 MMbf.

31 Annual Sustainable Yield Differences between 1996 and 2004 model 2004 study had wall to wall stand inventory of DNRC forest land had improved forest inventory data that added an additional 110,000 acres of forestland included new or updated stand level inventory data collected on 346,000 acres in NWLO and SWLO incorporated better potential productivity data statewide model made management choices while attempting to maximize net present value 1996 model was limited in its ability to maximize net present value.

32 Annual Sustainable Yield Our annual sustainable yield is 1.4% of our total standing volume of live trees. The SY is 55% of the biological potential of 95mmbf/year Our live tree volume increases each year. We are growing more than we are cutting. We have excess inventory meaning we could harvest up to 58.4 MMbf for 70 years, then fall back to 53.2

33 Montana Statute MCA Salvage timber program Directs DNRC to develop a program to provide for timely salvage of dead or dying timber threatened by insects, disease, fire, or windthrow. MCA Timber conservation license in lieu of sale DNRC may provide a timber conservation license in lieu of a timber sale to any person given several conditions are met. MCA Deferral of management prohibited Requires full market value for any interest in state forest lands for preservation or nonuse.

34 Cooperative Agreements and Work Groups Montana Interagency Cutthroat Trout MOU, 2007 Swan Valley Bull Trout Work Group Montana Cutthroat Technical Committee/Montana Cutthroat Steering Committee Swift Creek Coalition Clearwater Resource Council Technical Committee Blackfoot Challenge TMDL Technical and Advisory Groups Montana Bull Trout Restoration Plan, 2000 Inland Empire Tree Improvement Cooperative Montana/Idaho Airshed Group Multi-Agency Integrated Restoration Group Smoke Management Advisory Council NCDE DNA Grizzly Bear Population Monitoring DFWP Montana Connectivity and Crucial Areas Work Group Wildlife Linkage Public Lands Task Force USFS, USFWS Wolf Monitoring Methods Study -- U of M Coop Unit Montana Loon Ranger Program -- DFWP, Loon Society Swan Bear Ranger -- Plum Creek, USFS, USFWS, SEC DNRC Stillwater Snowshoe Hare Study -- U of M Bald Eagle and Golden Eagle Toxicity Study -- MSU NCDE Grizzly Bear Trend Monitoring -- USFWS, DFWP DNRC Swan Fisher Buffer Monitoring -- Northwest Connections Bald Eagle Working Group and Monitoring Blackfoot Clearwater Game Range Citizen s Advisory Council -- DFWP

35 Forest Management Project Implementation

36 Project Implementation How do we pick a project? Insects and Disease Fire Stocking Species Composition

37 Project Implementation Montana Environmental Policy Act Assures Montana citizens that a deliberate effort is made to identify impacts before state government decides to permit or implement an activity. Requires state agencies to inform public and other interested parties about proposed projects and potential environmental impacts. Provides venue for public to voice concerns about proposed projects and to have those concerns considered in project development.

38 Scoping Occurs in initial stages of project development. Interdisciplinary Team Team of DNRC resource specialists who work together to design project, design mitigations, and conduct environmental analysis on the effects of the proposed project.

39 Field Reviews Collect data to understand baseline condition of the environment. Identify resource requirements and areas of concern. Develop project design. Development of Alternatives Interdisciplinary team develops reasonable range of alternatives for the proposed project.

40 Effects Analysis Fish species Change in stream temperature, stream flow, sediment, connectivity, large woody debris, etc. Grizzly bear Change in hiding cover, open road density, and security habitat. Canada lynx Change in lynx habitat elements (denning, mature foraging, travel corridors, etc.) Pileated woodpecker Change in foraging and nesting habitat.

41 Review of MEPA Document Timber Sale Layout and Design Preparation of Timber Sale Contract and Package Land Board Review and Approval and Sale Bidding and Award

42 Timber Sale Administration Frequent inspections Ensures compliance with stipulations in contract

43 Economics

44 Economics Montana is currently producing enough timber to build more than 47,000 homes annually. The industry provides about 9000 jobs in Montana. Federal timber harvest levels have dropped 85% between 1987 and Until recently, stumpage prices have been disproportionately higher as a result.

45 Economics History of Montana Timber Harvest by Ownership (BBER) MMBF 1,500 1, Private National Forest State, Tribal, and BLM Total

46 Economics History of Mills in Montana (BBER) Year Number of Mills Number of Major Mills Total Production (MMBF Lumber)

47 Economics The Last 50 Years of DNRC Harvesting 120, ,000 80,000 MBF 60,000 40,000 20,

48 Economics Market Conditions: History of Stumpage Prices 450 Random Lengths Index and FMB Stumpage Price $ per MBF R Lengths Framing Lumber Index FMB Mean Sawlog Price Calendar Year

49 Economics FMB PRICES mean price per MBF (stumpage plus FI) over past 6 years CY MBF Mean $/MBF Mean FI/MBF Total $/MBF ,508 $ $55.12 $ ,161 $ $55.70 $ ,444 $ $37.46 $ ,674 $ $15.64 $ ,676 $ $19.39 $ ,256 $ $25.67 $ (1st Qtr) 2,355 $ $19.69 $134.50

50 Economics Forest Management Revenue by Area Office $12,000,000 Revenue $10,000,000 $8,000,000 $6,000,000 $4,000,000 Eastern, Northeastern, Southern Central Northwestern $2,000,000 Southwestern $ Year

51 Old Growth on Trust Lands

52 Old Old Growth How do we ensure we will have Old Growth on our landscape in the Swan River State Forest into the future? We modeled for a minimum amount in the Sustainable Yield Study The plan and the rules direct us to treat stands and to manage for biodiversity, which will include old growth on the landscape We have maps and inventory data that show age classes currently present on the forest We classify stands by risk ratings, targeting the highest risk stands for treatment We will employ maintenance and restoration treatments where forest health conditions allow us to. This will ensure healthy stands of old growth will remain for long periods of time We have a variety of age classes across our landscape, many stands will grow into old growth status over time as other stands are removed

53 Old Growth Maps showing all stands by age class A tool for our foresters to look at the whole forest. We overlay this with layers showing insect activity or other forest health concerns

54 Old Growth Maps showing Potential Recruitment Stands Shows existing OG stands Shows stands years old Shows connectivity and many future options for a landscape that will always include OG forests

55 Old Growth Management Full Old Growth Index (FOGI) Provides a method to quantify the level of important old-growth features in a stand by estimating the following attributes: number of live large trees amount of coarse woody debris number of snags amount of decadence stand structure gross volume crown cover

56 Future of Forest Management Program

57 Future of Habitat Conservation Plan DNRC s long-term plan to comply with Endangered Species Act Incidental take permit would cover forest management activities on select forested state trust lands in western Montana for 50 years. Permit would cover grizzly bear, Canada lynx, and bull trout, Columbia redband, and westslope cutthroat trout HCP Project Managers will be presenting more details to Land Board in next few months Expect completion by 2011.

58 Future of Emerging Markets for Forest Products Developing markets for green energy Co-generation could be market in Montana in near future Other types of wood to electricity European model Liquid fuels biodiesel and ethanol Burgeoning markets for carbon sequestration Consistent with existing programs and philosophy and intent of SFLMP

59 QUESTIONS?