HAUMINGI 18 FOREST. Owned by MR F. PEARSON Forest Management Plan. For the period 1 st August 2010 / 31 st July 2015

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1 Owned by MR F. PEARSON Forest Management Plan For the period 1 st August 2010 / 31 st July 2015 Prepared by Sally Haddon P O Box 1127 Rotorua 3040 New Zealand Tel: Fax: info@pfolsen.com

2 Table of Contents 1. INTRODUCTION...4 Growing wood...4 Principles and Criteria...4 About this Plan MANAGEMENT OBJECTIVES...5 Environmental and economic services...5 Management objectives...5 Implementation...6 OPERATING ENVIRONMENT FOREST LANDSCAPE DESCRIPTION...7 Overview...7 Location and access...7 Topography...7 Soils...8 Climate...8 Legal ownership...8 The ecological landscape MAP 1 - FOREST LOCATION MAP SOCIO-ECONOMIC PROFILE AND ADJACENT LAND...11 Current social profile...11 Associations with Tangata Whenua...11 Neighbours THE REGULATORY ENVIRONMENT...12 Regulatory considerations...12 Resource Management Act...12 District Plan...12 Regional Plan...13 Historic Places Act...14 Consents & authorities held...14 The Emissions Trading Scheme...14 Other relevant legislation...15 FOREST MANAGEMENT FOREST ESTATE DESCRIPTION...16 Forest area...16 Current species...16 Site index RESERVE AREAS AND SIGNIFICANT SPECIES...18 Introduction...18 Reserve areas...18 Rare and threatened species NON-TIMBER FOREST PRODUCTS AND OTHER SPECIAL VALUES...19 Introduction...19 August 2010 TABLE OF CONTENTS Page 1

3 Non-timber forest products...19 Recreational usage ENVIRONMENTAL POLICY AND PRACTICES...20 Introduction...20 Policy...20 Environmental management goals...20 The EMS framework...21 Hazardous substances management...22 Assessment of environmental risks FOREST INVENTORY, MAPPING AND FOREST RECORDS...24 Pre-assessment...24 Quality control...24 Mid-crop inventory...25 MARVL inventory...25 Mapping...25 Mapping updates...26 Forest records COMMERCIAL CROP ESTABLISHMENT AND SILVICULTURAL OPERATIONS...27 Introduction...27 Crop species...27 Other species...27 Establishment...27 Pre-establishment forest flora and fauna...28 Tending...28 Tree nutrition HARVESTING STRATEGY AND OPERATIONS...29 Harvesting strategy...29 Harvest ready...30 Harvest produce sales...30 Lessor may elect to take logs PROPERTY MANAGEMENT AND PROTECTION...32 Statutory pest obligations...32 Pest control...33 Disease control...33 Protected ecosystems, reserves and species...34 Fire prevention and control...34 Forest management requirements...35 Fire authority responsibilities...35 Fire insurance...36 Public liability insurance MONITORING...37 Introduction...37 Values monitored...37 Financial...38 Social FUTURE PLANNING...39 Introduction...39 Operation plans...39 August 2010 TABLE OF CONTENTS Page 2

4 ANNEX 1 PEST PLANTS AND ANIMALS ENVIRONMENT BOP PEST MANAGEMENT STRATEGY...40 PF OLSEN LTD All rights reserved. All rights of copying, publication, storage, transmission and retrieval in whole or part by any means and for all purposes except for bona fide copying by the entity that commissioned this report, as set out on the title page, are reserved. August 2010 TABLE OF CONTENTS Page 3

5 1. INTRODUCTION Growing wood Wood has many different uses, from firewood to construction timber, to newspapers and tissue paper, from furniture to clothing. Wood fibre is extremely versatile and is produced using carbon dioxide and the energy of the sun. Wood from well managed forests is a renewable resource that can meet the economic, social and cultural needs of our society without compromising the environment. The forest owner s objective is to grow wood for further processing in New Zealand or overseas and obtain an economic return on investment. The forestowner seeks to achieve this through the growing of suitable species with wood characteristics that meet the demand of the market. The trees are established, protected and tended as required to meet those demands. Principles and Criteria The forest owner is committed to adopt the Forest Stewardship Council (FSC) Principles and to meet their Criteria and the FSC standards of good forest management. These standards include ecological, social and economic parameters. The forestowner is committed to the PF Olsen FSC Group Scheme that is implemented through the Group Scheme Member Manual and associated documents. About this Plan This document provides a summary of the forest management plan and contains: Management objectives; A description of the land and forest resources; Environmental safeguards; Identification and protection of rare, threatened and endangered species; Rationale for species selection, management regime and harvest plan and techniques to be used; Appropriate management of unstocked reserve areas; Maps showing plantation area, legal boundaries and protected areas; Provisions for monitoring and protection. This document also serves as the forest management plan stipulated in the Memorandum of Lease Agreement between the forestowner (the Lessee) and the Haumingi 18 Trust (the Lessor and landowner). August 2010 INTRODUCTION Page 4

6 2. Management Objectives Environmental and economic services Haumingi 18 forest can provide environmental benefits, including: Enhanced water quality; Soil, stabilisation and conservation; Providing a buffer against flooding during storms; Shading waterways for aquatic life; Enhance wildlife and plant habitat leading to increased biodiversity; A reduction in greenhouse gases; Providing economic and social benefits to the community and the forestowner. Some forest operations and events such as wind storms, flooding and fire, and agents such as pests and diseases, and weeds can cause adverse effects on both the forest and the environmental, economic and social services it provides. Management objectives The forest is managed to: Grow trees and produce logs for the manufacturing of different wood products in New Zealand and overseas with a focus on high value pruned logs and sawlogs; Ensure that the productivity of the land does not decline; Ensure that environmental values are identified and maintained; Ensure that historic sites are identified and protected; Ensure that other forest values and products are identified, protected and where possible enhanced; Harvest the trees as close as possible to their economic optimum age; Replant following harvesting (by the Lessee if the lease continues for a second rotation, otherwise by the Lessor); Provide the Lessor with all necessary information in a clear, concise form that meets the requirements of the Lessee. The forestowner is committed to ensure that the management of the forest is sustainable, from an environmental, social, cultural and economic perspective. These perspectives underpin the FSC management culture. Continued on next page... August 2010 Management Objectives Page 5

7 ...continued Environmental management includes steps to identify rare, threatened and endangered species where such presence is a possibility, protection of reserve areas, waterways and the control of pests and weeds. The social perspective includes ensuring that contractors and their workers adhere to health and safety standards and consultation with neighbours and stakeholders in respect of operations on the forest. The cultural perspective includes consultation with the appropriate iwi to ensure that culturally significant resources lands, historic and archaeological sites are identified and appropriately managed. The economic perspective refers to the selection of a species, management and harvesting regime, which provides a reasonable return on investment while minimising the risks of this investment. Implementation The forest management objectives described above are implemented by PF Olsen Ltd (PF Olsen), the forest manager for Haumingi 18 forest. The manager applies recognised best forestry management practice within a quality management framework to plan for and deliver the required forest management objectives. The Quality management framework includes: The PF Olsen ISO 9001 certified forest management system, ensuring that the forest management planning is up to date and that operations are scheduled and undertaken according to the plan. The PF Olsen ISO certified environmental management system, ensuring that high standards of environmental management are recognised and integrated into every facet of the forest planning and management. The FSC Environmental certification (when requested by the customer) to ensure management principles and practice adhere to internationally recognised and adopted standards for environmental management. August 2010 Management Objectives Page 6

8 Operating Environment 3. Forest Landscape Description Overview This section describes the physical and legal attributes of the land on which the forest is located. Included in this section are discussions of: Location and access Topography Soils Climate Legal ownership and tenure Location and access Haumingi 18 forest is located 35 kilometres east of Rotorua, adjacent to Rotoiti Road within Rotoiti Forest. Rotoiti Road from SH30 to the entrance of Haumingi 18 Forest is formed and presently maintained by PF Olsen Ltd managing for Viking Timber Management NZ Ltd. Road maintenance charges are levied on all road users and will apply to logs harvested from the Haumingi 18 Forest. Public access to Rotoiti Forest is controlled by heavy duty locked gates at the SH30 entrance, and at the Tarawera Forest entrance. Keys are issued to the Forest Manager and the Landowners to allow unrestricted access. There are locked gates at both main entrances to the Haumingi 18 Forest. The location of the forest in relation to potential markets is listed in table 1 below and shown in Map 1: Table 1. Distances from Forest to Log Markets Potential Market Distance from Forest (km) Log market or Export Port Tauranga Port 74 Export Kawerau 31 Domestic Kawerau 31 Pulp Topography The topography of the forestland is flat to moderate rolling. Much of the forest lies atop a terrace of pumice, flanked to the southeast and northwest by secondary native forest. The whole forest area is suitable for ground-based harvesting. Altitude ranges from 500 to 600 metres above sea level. August 2010 Forest Landscape Description Page 7

9 Soils Soils are yellow-brown pumice soils with layers of recent and composite-recent Tarawera gravels and Tarawera gravel hill soils. The underlying geology and Pliocene or Miocene upper tertiary sedimentary rock. These types of soils are derived from several historic volcanic ash showers. They exhibit weak soil structure but with negligible erosion potential, particularly given the flat topography of Haumingi 18. The soils may, however, predispose the tree crop to drought, but have moderate natural fertility. Climate Rainfall: The average rainfall is approximately 1500mm per year, mostly falling during winter months. Temperature: The temperature ranges from 7.0 to 31.0 degrees Celcius, with the mean annual temperature around 13.1 degrees Celsius. Legal ownership That portion of the legal title occupied by the forest is shown as Diagram B on Certificate of Title 28D/281. Pt Haumingi 18 Blk XIII Rotoma S.D South Auckland Land District containing hectares more or less. Refer Legal Boundaries Map (Map 1).The Haumingi 18 Block is owned by the Haumingi 18 Trustees, John Hunia, Sam Emery, William Emery, Tania Curtis and Maria Welham. Hapu: Te Rangiunuora Iwi: Ngati Pikiao The forestowner leases Haumingi 18 Block from the Haumingi 18 Trust. The term of the lease is 70 years, commencing the 11th December August 2010 Forest Landscape Description Page 8

10 The ecological landscape Haumingi 18 forest falls on the Rotoiti plateau, above the caldera basin that now forms Lake Rotoiti. Prior to significant human habitation almost all of the terrace was forested; the vegetation types reflected the passage of time since local volcanic activity and the soils and geology resulting from such periods. The relatively fertile and free draining caldera slopes were forested in tall tawa/podocarp/hardwood forests that formed part of a semicontinuous band from the Kaimais, around the elevated edge of the volcanic plateau through to the Raukumaras. Subsequent human, and particularly European, settlement saw the clearance of significant portions of this forest for agricultural and forestry purposes. Nevertheless there remain sizable portions of this forest type present and formally protected in the ecological district. Haumingi 18 forest is located in this context. Being surrounded on all sides by production forestry and with a narrow linkage to large formally protected forests, this plantation and its associated indigenous reserves provides a very small contribution to ecological and biodiversity in the region. The following table shows vegetation types as required by the Draft National Standard for Plantation Forest Management in New Zealand: LENZ H2.2 Original (pre-maori) percentage of ecosystem type 44,826 ha in Ecological District within land title: 100% Natural ecosystem area remaining 19,679 ha 43.9% Proportion of remaining natural ecosystem under 60.2% protection: Protection by certificate holder 0.37% Rotorua Ecological District Total area of Ecological District: 181,863.4 ha Area of Ecological District under protection: 69.5% Area of Ecological District under certificate % holder: August 2010 Forest Landscape Description Page 9

11 4. Map 1 - Forest Location Map August 2010 Map 1 - Forest Location Map Page 10

12 5. Socio-economic profile and adjacent land Current social profile The Maori landowners of the Haumingi 18 block also hold customary rights to the forest, and have use of the hay paddock. They have permitted John Edwards to utilise the paddock and a hut on the forest land, and to trap pests. The forest will provide opportunities for work during the harvesting and re-establishment period, however the contribution will be insignificant relative to the large-scale forests operating in the region. Associations with Tangata Whenua The landowners are Ngati Pikiao iwi, and Te Rangiunuora hapu. Neighbours Neighbours to the forest estate boundaries have a special relationship to an interest in the management of the forest(s). Activities within the forest may positively or negatively impact upon their quality of life or businesses in a number of ways, while inappropriately managed operations could create risks of adverse health, safety and environmental hazards. Neighbours may use the forests for recreational purposes or place reliance on the forests for provision of water quality or quantity services. Boundary issues such as weed and pest control, access and boundary alignment issues may also involve neighbours. The Haumingi 18 block is entirely surrounded by one other title, belonging to the Rotoiti 15 Trust. This block is production forestry, managed by PF Olsen Ltd on behalf of the Lessee. August 2010 Socio-economic profile and adjacent land Page 11

13 6. The Regulatory Environment Regulatory considerations In order to minimise the risk to forest owners, managers and contractors, it is important that relevant legislation and agreements are identified and appropriate measures put in place to ensure that breaches of legislation are avoided. The following legislation and agreements summarise key regulatory & voluntary controls that currently apply to forest operations in the forest. Resource Management Act Haumingi 18 forest is subject to the provisions of the Resource Management Act (RMA) The RMA sets up a resource management system that promotes the sustainable management of natural and physical resources and is now the principal statute for the management of land, water, soil and other resources in New Zealand. Under the RMA, Haumingi 18 forest falls under the Rotorua District Council for land management issues and Environment Bay of Plenty for soil conservation and water quality issues. District Plan Haumingi 18 forest falls under the jurisdiction of the Rotorua District Council. The current plan was notified in September Under the plan to date, Haumingi 18 forest is in area designated Rural A where forestry is a permitted land use. Rule Ref Activity Requirement R Forestry Permitted- forestry activity in general including harvesting. R a Indigenous Permitted- clearance or modification of indigenous vegetation R b. clearance Indigenous clearance up to 500m 2 over a 2 year period. Permitted- clearance of discrete areas of up to 1000m 2 of regenerating secondary indigenous forestry cleared for plantation forestry at the time of re-establishment. R Noise Permitted- noise levels shall comply with maximum levels (45dBAL 10 during day and 40dBAL 10 during night). Note: The "best practicable option" provisions of Section 16 of the Resource Management Act 1991also apply. R Mining and Quarrying Archaeologic al Sites Applications for consent assessed in accordance with Appendix S of plan.. Consent of the NZ Historic Places Trust required for destruction or modification of archaeological sites (recorded and unrecorded), including those identified on the Planning Maps. August 2010 The Regulatory Environment Page 12

14 Regional Plan The forest comes under the jurisdiction of Environment Bay of Plenty as the Regional Council. Environment Bay of Plenty issued a Proposed Regional Water and Land Plan in December Many changes to this plan have been notified since. The plan will continue to be updated on a regular basis as further appeals are resolved. Rules as they currently affect Haumingi 18 forest are: Rule Ref Status Requirement- Regional Water and Land Plan Earthworks Permitted subject to conditions in table 8 of section. NOT permitted in erosion hazard zone, not in riparian management zone, not on slopes greater than 35 degrees. Permitted limits depending on slopes and exposure areas in table 8 that must be checked Vegetation Clearance Clearance of Vegetation by Burning Application of Fertiliser Permitted on slopes 0-35 degrees; and NOT in the Erosion Hazard Zone, Coastal Margin, Riparian Management Zone, or an ephemeral flowpath. Clearance of exotic pest species permitted. Limits of clearance of vegetation within riparian management zones contained in table 9A. Permitted if undertaken using best management practices to ensure that burns are of low intensity and avoid loss of soil structure and nutrients. Permitted limits in table 11. Permitted where no direct discharge to waterways and at applied at appropriate time, rate and volume. Must comply with Operative Bay of Plenty Air Plan (see below) Application of Agri-chemicals Permitted where no direct discharge to waterways and complies with Operative Bay of Plenty Regional Air Plan (see below) Discharge of Permitted subject to sediment control and quality of discharges. storm water A Structures in streams/ rivers/ Permitted maintenance of existing structures subject to conditions. lakes Culverts Permitted up to 120cm diameter in low risk areas (not wetlands or land drainage canals), subject to conditions Bridges Permitted- single span bridge or single span pipe bridge over the bed of a river, stream, or lake, subject to structural conditions in rule Fords Permitted- The use, erection, construction, placement, alteration or extension of a ford in, or on the bed of a river, stream, or lake, subject to conditions including water quality classifications scheduled in the plan A Wetlands (Rule subject to appeal as at 06/03/08) Discretionary (restricted) minor disturbance of vegetation in wetlands associated with cable logging. Rule 11 Nitrogen Falling within the Rotorua catchment area is subject to Rule 11 constraints on Nitrogen emissions. As forested land, these emissions will be benchmarked on the lowest natural N emission rate. Any future change in landuse that entails a higher N emission rate will be constrained. August 2010 The Regulatory Environment Page 13

15 Historic Places Act Historical and Archaeological Sites Records of archaeological and historical places are maintained in the NZ Archaeological Association Site Recording Scheme run by the Historic Places Trust (HPT). These sites are often included in schedules of places and sites of significance in District plans along with sites of cultural significance. Sites present within or immediately adjacent to the boundaries of this property that may be adversely affected by operations are listed below. Under the Historic Places Act 1993 it is the landowner s responsibility to identify any historic sites on their land prior to undertaking any work which, may disturb or destroy such sites. Where such circumstances exist, an Authority to Modify or Destroy will be sought from HPT. Such authorities are similar in function to a resource consent and if granted, normally come with conditions that must be met. The process to apply for authorities is documented in PF Olsen s EMS. Note also that Consents to modify an archaeological site may sometimes be required from the local District Council If a site is found or suspected on any block, the protocols specified in PF Olsen s EMS, and any others specifically developed in conjunction with HPT and Iwi or other stakeholders must be observed. There are no recorded or registered sites within the Haumingi 18 block, although there are references to known sites within SECF_02. This indigenous area will be protected during harvesting operations notwithstanding. Consents & authorities held There are no current resource consents and HPT authorities that apply to Haumingi 18 forest. The Emissions Trading Scheme Forests in New Zealand are governed by rules related to New Zealand s Kyoto commitments to reduce the nations carbon footprint and contribution to associated climate change. Haumingi 18 forest contains hectares of forest that was existing forest as at 31 st December If land use is changed out of forest cover these stands will be subject to a deforestation tax equivalent to the tonnes of CO2 projected to be released from decomposition of the forest. The cost of submitting these CO 2 units (NZUs) at the time will depend on the price that the landowner can obtain them for. At the current cost of about $19.00 each, the penalty for not re-establishing the land in forest is substantial. Such cost must be met by the Lessor if the land is handed back and not replanted or, if left to regenerate naturally, does not achieve the regulated heights and stocking densities. August 2010 The Regulatory Environment Page 14

16 Other relevant legislation Other relevant legislation in relation to the growing and harvesting of the tree crop are: Conservation Act 1997 Forest and Rural Fires Act 1989 Forests Amendment Act 1993 (Forests Act 1949) Health and Safety in Employment Act 1992 Historic Places Act 1993 Hazardous Substances and New Organisms Act 1996 Protected Objects Act 1975 Resource Management Act administrative jurisdiction Resource Management Act 1991 The Treaty of Waitangi Act 1975 Wildlife Act 1953 Most of the above Acts also have Regulations attached that apply in conjunction with the relevant Act. Other Acts and Regulations also apply, covering commercial law, employment law, income tax etc. Forest owners can be held liable for breaches of these Acts and may be held responsible for damage to third party property. Appropriate protection should be taken to minimise these risks. New Zealand Environmental Code of Practice for Plantation Forestry All operations carried out on the property should be undertaken to the standards specified in the New Zealand Environmental Code of Practice for Plantation Forestry. This document sets out guidelines which ensure safe and efficient forest operations that meet the requirements of sound and practical environmental management. August 2010 The Regulatory Environment Page 15

17 7. Forest Estate Description Forest Management Forest area The net stocked areas have been measured from a map produced by PF Olsen Ltd (Forest Stands Map). The estimated net stocked areas of each stand are set out in the following table. Gross area Net Stocked Area (ha) Table 2: Area Statement Area awaiting restocking Reserves Other % 62% 13% Net Stocked Area Indigenous Reserves Other Unproductive areas include stocking gaps, roads and tracks, the hay paddock, and other small unplanted areas. Current species The species grown at Haumingi 18 forest is Pinus radiata (radiata pine). This species has been chosen to best meet the management objectives set out above and in section 2 given the characteristics of the forest land as described in section 3. Re-establishment will aim to use high quality treestocks suitable for the site and market. These will be investigated at establishment. There may be establishment planned during the period of this management plan. August 2010 Forest Estate Description Page 16

18 Site index Site index is a measure of productivity of a site in terms of height growth of radiata pine. The parameter used is the mean height in metres of the largest 100 trees per hectare at age 20 years. Equations exist to predict this height given a measured height at any age. Site index for the forest is 28 metres. August 2010 Forest Estate Description Page 17

19 8. Reserve Areas and Significant Species Introduction Indigenous biodiversity management in or associated with exotic forests is an essential component of everyday forest management. Although exotic forests can provide a level of biodiversity, the reserve areas are usually the source of most indigenous biodiversity. Rare and threatened species can also be found associated with exotic forests and require special attention for management. Reserve areas There are several areas of indigenous vegetation on the Haumingi 18 block. Two separate areas of secondary forest exist in the south-east and the north-western sides of Haumingi 18. Both are granted protection under the New Zealand Forest Accord, being of sufficient size (54.6 ha and 18.4 ha respectively) and vegetation height. Species dominant in the assemblage include tawa and rewarewa, with an understorey of mahoe, pate, ponga and marbleleaf. This forest type is common on the Rotoiti plateau, having been the original landcover prior to clearing of the area for forestry decades ago. Both ecosystems have excellent connectivity to other indigenous areas across the plateau, providing indigenous corridors for native species movement. Another area of ecological significance is the raupo wetland to the south of the hay paddock. The area is 1.5 hectares, which is a fairly significant size for a wetland area owing to the destruction of many other wetlands in the Bay of Plenty. The region has lost an estimated 97% of wetlands, mostly for the development of farmland and urban sprawl. The protected ecosystems area are shown on Map 1. LENZ LENZ Protection Forest Stand Area Protective Status Protective Function Forest type Remaining % Protected % Ranking Category Haumingi 18 HA18-SECF NZ Forest Accord Terrestrial Ecosystem Tawa/Podocarp/Hardwood Full Haumingi 18 HA18-SECF NZ Forest Accord Terrestrial Ecosystem Tawa/Podocarp/Hardwood Full Haumingi 18 HA18-WETL Management Plan Wetland Ecosystem Lake/Surface Water Full Rare and threatened species To date, only kereru have been sighted within Haumingi 18. Other possible species that could be present include the North Island brown kiwi, and the long-tailed bat. August 2010 Reserve Areas and Significant Species Page 18

20 9. Non-Timber Forest Products and Other Special Values Introduction Forest plantations may also provide for non-timber forest products that enhance the economic well being of the owner or legitimate forest users. Non-timber products are an important means of maximising the production capacity of the forest whilst maintaining environmental and social values. The forest management plan provides procedures for developing and managing these resources. Forests can also provide many other special values, which are also provided for and managed through the forest management plan. Non-timber forest products The following non-timber products are currently being produced or developed in Haumingi 18 forest: A grazier utilises the hay paddock and a bach on the block; The grazier has, in the past, caught live wallabies (a pest species) within the block under licence. Recreational usage The roading order granted for Haumingi 18 access specifies that access is restricted to owners, licensees, Lessors or assignees of Haumingi 18. August 2010 Non-Timber Forest Products and Other Special Values Page 19

21 10. Environmental Policy and Practices Introduction Environmental policy and practices are an integral part of every operation that takes place on the forest. Regular monitoring of key environmental parameters will be undertaken where necessary to ensure that the impact on the forest environment from events such as wind storms, flooding and fire, and of agents such as pests and diseases, and weeds are minimised. The management of the forest recognises the importance of the natural and social environment for the future of its business. The people employed in the forest and processing plants, the neighbouring land owners, the appropriate iwi and the community at large are all recognised as stakeholders. All activities within Haumingi 18 forest are subject to management within a framework set by PF Olsen s environmental policies and Environmental Management System (EMS). Policy PF Olsen Limited Environmental Policy: PF Olsen Ltd is committed to: Sustainable forest and land management; Promoting high environmental performance standards that recognise the input from the community in which we operate; Where appropriate applying the Principles and Criteria of the Forest Stewardship Council across forest management. Substantial additional detailed policies are contained within PF Olsen s EMS. Environmental management goals The Environmental Management System (EMS) implemented by PF Olsen has the following objectives: 1. Achieve a greater understanding and ownership of environmental responsibilities and performance by all PF Olsen s personnel and contractors; 2. Complete compliance with environmental legislative requirements and non-legislative environmental commitments of the company; Continued on next page... August 2010 Environmental Policy and Practices Page 20

22 ...continued 3. Establishment and maintenance of sound working relationships with each of the regional and district councils that are applicable to our operations; 4. Establishment and maintenance of sound working relationships with appropriate contractors, iwi, neighbours, recreation users, community groups, infrastructure authorities (e.g. Transit New Zealand and Transpower) and other stakeholders on which our activities may effect; 5. Increase awareness of environmental effects of operations among staff and contractors; 6. Use energy effectively and efficiently, and reduce waste and pollution; 7. Promote and undertake sound environmental stewardship of land and other natural resources on or adjacent to this land. To achieve the objectives listed above PF Olsen set specific environmental targets against which progress is being measured. These environmental targets are reviewed on an annual basis. The EMS framework The EMS is a core document defining the policies, processes and procedures that govern the physical implementation of forest management activities. The EMS applies a systematic approach certified to ISO standards to ensure that prevention of adverse and harmful impacts is effective. Key elements comprising the EMS are: Defined I.T. mounted processes and procedures including flow charts, guiding users through all the steps from planning to implementation of operational activities. An operational implementation framework that follows the well recognised management process of planning, doing, monitoring and adjustment. Linkages to forms and I.T. based databases to capture information required to monitor environmental aspects. Hyperlinks to key internal and external resources required to assist managers to achieve required outcomes in a legally compliant and environmentally sound way. Comprehensive I.T based systems for management of environmental incidents, operational monitoring, regulatory compliance, training, corrective actions / quality management and management of protected ecosystems. Procedures for managing emergency situations. Continued on next page... August 2010 Environmental Policy and Practices Page 21

23 ...continued Procedures and resources for managing and minimising the use of chemicals including compliance with FSC policies related to Hazardous Chemicals. Periodic internal and external auditing. Audits are an integral part of the EMS. The purpose of these audits is: To check compliance with agreed procedures; and Discuss ways to improve the EMS to better achieve its targets and objectives. An Environmental Management Group (EMG) assists the Environmental Manager, who is responsible for ensuring that the EMS is maintained and implemented to ISO standards. Internal audits to ensure compliance with the EMS and to improve the procedures of the EMS are undertaken at least once every two years. Hazardous substances management Hazardous substances are any substances which may cause adverse environmental impacts and/or injury or health problems if incorrectly handled or used. The hazardous materials which may be used on Haumingi 18 forest are: Pesticides Fuels Oils Fire retardants Surfactants Transportation, storage and labelling of these hazardous materials must all comply with the provisions of the Health and Safety manual, which is maintained under ISO 9001 certification. Furthermore, the forest manager is committed to reducing the use of hazardous substances as much as possible. This involves use of alternative methods for the control of weeds, pests and diseases where these are effective and efficient. The use of fuels and oils is minimised where possible. Fire retardants are only used when required and surfactants are only used to make more efficient use of specific herbicides. August 2010 Environmental Policy and Practices Page 22

24 Assessment of environmental risks Several areas of typical forest management have been identified as posing a possible environmental risk within Haumingi 18 forest. The Environmental Assessment Matrix below summarises the identified risks for Haumingi 18. The level of risk has been evaluated in the matrix as high H or low L, or not applicable NA. Prior to operations such as clearfelling, land preparation and production thinning, an assessment is undertaken to quantify the risk involved in carrying out the particular operation, and steps are implemented to manage the risks. ENVIRONMENTAL VALUES/ISSUES Forestry Operational Activities Erosion& Sed -iment Control Water Quality Soil Conservation & Quality Air Quality Aquatic Life Native Wildlife Native Vegetation Historical & Cultural Values Landscape & Visual Values Neighbours & other forest users Public Utilities Recreation Values Harvesting L L L L L L L H L L Earthworks L L L L L L L L L H Slash Management L L L L L L L L L L Stream Crossings NA NA NA NA NA NA NA NA NA NA NA NA Mechanical Land Preparation L L L L L L L L L L Burning L L L H L L L H H L H Planting L L L L Tending L L Fertiliser Application H L H L L L Agrichemical Use H L L H L H L H H H Oil & Fuel Management H L H L H L Waste Management L L L L Forest Protection L L L L L L August 2010 Environmental Policy and Practices Page 23

25 11. Forest Inventory, Mapping And Forest Records Forest growth and development is monitored through regular forest inventory. Forest inventories providing stand information are required at different times and for different reasons throughout the life of the rotation. PF Olsen Ltd have developed procedures for each of the following four types of inventory to be applied on Haumingi 18 forest: pre-assessment quality control mid crop MARVL (Method of Assessing Recoverable Volume by Log Grade) Pre-assessment Pre-assessment is the collection of stand parameters prior to a tending operation. It allows for: The calculation of contract rate for tending. A final check on the validity of the regime and timing of commencement of operations i.e. DOS targets can be achieved or crop height is sufficient for pruning lift scheduled. Sampling intensity is low with a minimum of five plots per stand and data is collected from only six trees per plot. Data collected is then used with the time standards set out in the tending manual to calculate a manday target and hence a contract rate per hectare. Contract rates are often set by tender or negotiation, reducing the need to pre-assess each and every block. Pre-assessment however does provide good quality information on the work content involved in each tending operation and sets a base price for negotiation. Pre assessment was completed at Haumingi 18 forest prior to tending operations commencing. Quality control Quality control is carried out during and after a tending operation. The aims of the quality control system PF Olsen have established are to: Collect sufficient data to monitor a contractor's performance and correct this if necessary, with minimum delay. Collect sufficient quantitative data to provide reliable estimates of the crop state. Provide data as input for growth modelling. Provide data for estimating timing of the next tending operation. Continued on next page... August 2010 Forest Inventory, Mapping And Forest Records Page 24

26 continued Sampling intensity is a minimum of 8 full plots per stand or one plot per 2 hectares with every fourth plot being a full measurement plot. This provides the data for the current crop status and future growth modelling. Data is summarised by Forest/Compartment/Stand prior to being entered onto the computer database programme "Forest Land Information" where it is retained as a permanent record. The records can then be directly accessed for growth model and Computer Growth Simulation Programmes (StandPak) runs, annual reports and valuations. PF Olsen Ltd s "Tending Manual" details the procedures to follow for pre-assessment and quality control plotting. Quality control was completed at Haumingi 18 forest at the completion of each tending operation. Mid-crop inventory The principal aim for the mid-crop inventory is to collect stand data for inputs for growth modelling. Under current tending regimes mid-crop inventory is scheduled for between 11 and 15 years of age. Sampling intensity is targeted to achieve 10% confidence limits on Basal Area on a stand by stand basis. Smaller stands may be aggregated into crop types to achieve this. MARVL inventory The principal aim for the MARVL (Method of Assessing Recoverable inventory is to obtain estimates of recoverable volume by log grade. This information can then be used to develop marketing and harvesting strategies. MARVL inventories will be undertaken when stands reach five years or less from harvesting. Sampling intensity is targeted to achieve 10% confidence limits on Basal Area on a stand by stand basis. Smaller stands may be aggregated into crop types to achieve this as in mid-crop inventory. Mapping Precise digital mapping of Haumingi 18 forest was updated in late The work involved: mapping 5m contours from existing photography; mapping forest detail from existing aerial photography; and defining legal boundaries. All the data is supplied in a digital format. Continued on next page... August 2010 Forest Inventory, Mapping And Forest Records Page 25

27 ...continued The digital data is retained, processed and managed on PF Olsen Ltd s GIS (Geographic Information System). Pruning and thinning contractors are commonly paid on an area basis and accurate mapping prevents overpayment and avoids disputes regarding the area actually completed. Accurate mapping also assists with budgeting, planning and calculation of future revenue/tree crop value, infrastructure and harvesting and also meeting climate change emissions obligations. After harvesting, the contours and any relevant forest detail are available for planning and management of the second rotation. Mapping updates Stands are remapped from new aerial photography around age four (when the trees are visible on aerial photography) to accurately determine boundaries and areas and around two years prior to harvesting to assist with harvest planning. This was done during 2009 for Haumingi 18 forest. Forest records Forest records are essential in monitoring the forest operations by providing an historic perspective to the physical condition of each stand. Forest records should provide the following information: An historic record of forest operations for each stand including a summary of quality control data indicating the results and quality of the operation. A forest map showing the location, stand boundaries and net stocked area of each stand. Crop inventory results. Yields achieved from each stand at production thinning or clearfell. Costs incurred for each operation. Haumingi 18 forest records are maintained on a computerised Land Information database. This customised database is part of PF Olsen s FIPS system (Forest Information and Planning System). Computer record systems allow for fast retrieval of information, production of reports and statistics. Forest records assist with planning and control of forest operations and provide a means of measuring the performance of a Forest Manager. In a management audit forest records can be verified against the status of the tree crop and unit costs derived for each operation. August 2010 Forest Inventory, Mapping And Forest Records Page 26

28 12. Commercial Crop Establishment and Silvicultural Operations Introduction The choice of species is the most important issue in plantation forestry. The species has to be suitable for the site and meet the objectives of the forestowner. Also important is to ensure that the planting material is of good quality. Forest operations are implemented to ensure a good quality crop and maximum growth. These operations include: land preparation, establishment, weed control, pest and disease control, fire protection, pruning and thinning. General property maintenance is also an important factor in forest management and can include maintenance of roads and tracks and other assets such as buildings, fences and water systems. Crop species Radiata pine, when intensively managed, will produce a range of different log types suitable for various processing options. The pruned butt log can be used to make knot-free veneer or decorative timber. The unpruned logs can be used for structural timber, for veneer or for feedstock for fingerjointing. The small logs and those with defects and excessive knots can be used for pulp and paper, MDF and other reconstituted wood products such as tri-board and particle board. Radiata pine is the most common species processed in New Zealand and export markets are well developed for both finished products and logs. In New Zealand radiata pine is also the main focus in terms of research and development. Past research and development has resulted in improvements in growth, form and wood characteristics as well as development of a range of finished products, building codes and timber standards. Other species Alternative species have been considered, but did not meet the forest owner s objectives. Establishment There may be establishment at Haumingi 18 forest during the period of this management plan if the forest owner chooses to begin harvesting and continues with a second rotation crop under the lease agreement. August 2010 Commercial Crop Establishment and Silvicultural Operations Page 27

29 Pre-establishment forest flora and fauna Prior to any re-establishment of the tree crop, a review will be conducted to identify whether there are any rare, threatened or endangered species of flora or fauna within the area to be planted. Such species are likely to be associated with the wetland and its margins which are to be left undisturbed. Providing no drainage patterns are altered at reestablishment a plantation crop is likely to confer beneficial habitat buffering rather than cause adverse effects. Tending The tending regime executed at Haumingi 18 forest is a pruned clearwood regime, with one thin to waste. Two or three pruning lifts were carried out, with some areas receiving lifts of up to 7.7 metres average. Detailed records of the operations are held by PF Olsen, and the stands are registered with the New Zealand Forest Research Institute Pruned Stand Certification System. No further tending operations are required. Tree nutrition There are soils within New Zealand that are deficient in one or more nutrients. However, the soils in Haumingi 18 forest are not likely to be deficient in nutrients for healthy tree growth. Foliar samples will be taken if nutrient deficiency symptoms are seen or expected. Fertiliser will only be applied if the health and the growth of the trees are significantly affected. August 2010 Commercial Crop Establishment and Silvicultural Operations Page 28

30 13. Harvesting Strategy and Operations Harvesting strategy The period of this plan will see the tree crop grow from 24 years of age to 29 years of age. The usual preferred clearfell age for pruned stands is years of age in this region (subject to stand growth and stocking variation). This age is based on the requirements of domestic pruned log markets. PF Olsen Ltd harvesting operations in neighbouring Rotoiti forest have shown pruned stands harvested at 25 years produce pruned log and unpruned export log volume. In contrast, stands harvested at 28 years produce pruned log volume and unpruned domestic structural sawlog volume. The difference is explained by the relationship between increasing age and structural stiffness. Targeting structural sawlogs may net a significantly better harvesting return than targeting the export market. The reasons for this are a cartage advantage over export via a shorter off-highway route to an existing structural mill in Kawerau, and the New Zealand structural building standards requiring the use of structural grade timber in dwelling construction. Based on the pre-harvest inventory data collected and the yield projections thus modelled, harvesting has been estimated to be commencing early There is however opportunity to bring this forward to 2011 if markets and resources available are favourable. It is likely that the forest will be harvested on a staged basis, with appropriate areas being clearfelled in 6-monthly periods (January to July) over two years, or 4-monthly periods (January to April) over three years. Harvesting during the beginning of the year ensures growth in the previous growing season (spring to early summer) is captured. August 2010 Harvesting Strategy and Operations Page 29

31 Harvest ready As the forest nears clearfell age, a harvest plan will be prepared. This plan describes the harvesting method to be used based on the following considerations: 1. Terrain - what method can be used that is safe for the operators? 2. Soil and Water the impact on soil and water will be minimised and/or mitigated; 3. Safety to ensure forest operations are carried out safely and comply with all legal requirements; 4. Wildlife Habitat and Ecosystems these will be maintained where possible or the impact on such habitats will be minimised and/or mitigated; 5. Other Forest Values to ensure that other forest values such as recreation and non-timber products are recognised and where practical protected; 6. Offsite Impacts to identify and minimise the adverse impacts of forest operations on people and the environment; and 7. Financial to ensure forest operations are carried out in an efficient and effective manner and consider both short and long term implications. Harvest produce sales At the discretion of the Lessee, there are several harvest produce sale types which may be implemented during the harvesting of the crop at Haumingi 18: Lump sum stumpage. (Buyer estimates volume and grade mix and pays up front on that estimate. Buyer arranges harvesting). Composite price stumpage. (Buyer arranges harvesting pays for volume removed at a single rate regardless of grade mix). PF Olsen- managed harvest. (Forest owner sells different grades to various buyers, delivered to mill or port). August 2010 Harvesting Strategy and Operations Page 30

32 Lessor may elect to take logs Under the terms of the Haumingi 18 Lease, the Lessor may elect to take 12.8% of each grade of logs rather than 12.8% of the stumpage. This provision is a legacy of the lease agreements with Fletcher Challenge Forests and Caxton Paper and was inserted to provide for Lessor protection against low transfer pricing between forest and mill when the Lessee owned timber processing plants. We recommend that the Lessor be approached well in advance of harvesting to seek resolution on their election to take logs instead of cash. In our view the taking of logs would not be practical for the Lessor as it would end up with many small parcels of different log grades and sub-optimal log marketing and transport issues to sell those logs. August 2010 Harvesting Strategy and Operations Page 31

33 14. Property Management and Protection Statutory pest obligations Pest management within Haumingi 18 forest is subject to statutory obligations under the Regional Pest Management Strategy administered by Environment Bay of Plenty. The strategy applies to both pest plants and animals and categorises them in terms of management objectives. The categories and landowner obligations are summarised below: Plant Pests- Bay of Plenty Regional Pest Management Strategy Pest Category Plant pest objectives Forest Landowner Obligations Eradication Eradication of known populations by Immediate control of new occurrences. EBoP undertakes direct pest control and monitoring. Landowner must not knowingly spread pest or hinder EBOP Total Control Progressive Control Control current populations. Immediate destruction of new occurrences. Reduction in density and distribution. Priority on isolated control. Destroy all total control pests unless control undertaken by industry management group. Destroy all progressive control pests unless control undertaken by approved EBOP programme. populations. Boundary Control Controlling spread. Blackberry and gorse within 10m, and ragwort 50m of any property boundary must be destroyed Animal Pests- Bay of Plenty Regional Pest Management Strategy Pest Category Plant pest objectives Forest Landowner Obligations Eradication Eradication of wallabies by 2025, other pests Immediate destruction of new occurrences. No knowing release or of pests. No interference with monitoring or control mechanisms. Progressive Control Population Control Reduction of populations. No increase in populations across region, and decreased levels in targeted areas. No knowing release or of pests. No interference with monitoring or control mechanisms. Landowner funding for control unless an approved EBOP programme in place. Full details of classifications and obligations are listed in sections 3.3 & 3.4 of the Pest Management Strategy. The full list of plant and animal pest species covered by the Bay of Plenty Regional Pest Management Strategy are contained in Annex 1. August 2010 Property Management and Protection Page 32

34 Pest control The main animal pests in Haumingi 18 forest is the introduced possum and wallabies. Possum attack the growing tips of both plantation and native trees, causing stem malformation and die back. Possums are also a threat to neighbouring property owners who are farmers as they can carry and spread tuberculosis to domestic stock. Other pests include rabbits and hares at the time of establishment and wild goats during the first half of the crop rotation when bark is soft and palatable. Animal pests in Haumingi 18 forest will be controlled using ground control methods as required, which prevent impacts on non-target species. The forest manager will coordinate operations with the grazier and organisations such as the Regional Council and the Department of Conservation to achieve effective and efficient control with in the forest area and on neighbouring land, where required. Disease control Diseases, which can affect the forest trees and adjacent native vegetation are monitored throughout the year and once a year by a professional independent forest health assessor. Most diseases cause little damage and do not require control. The exception is Dothistroma, a fungus which, attacks pine needles. This fungus is controlled using a copperbased fungicide, but only when the infection reaches a critical level. Dothistroma infection can also be controlled though silviculture by timely thinning and pruning operations, which increases air movement and lowers humidity levels. Minor wind damage has occurred within Haumingi 18 in the past, associated with the harvesting of neighbouring stand in Rotoiti forest. These stands have been replanted so the risk of further damage will decrease as the trees provide increasing levels of protection. There will be a risk, however, when the Haumingi 18 crop begins to be harvested. The harvesting method will need to accommodate the risk of wind damage in terms of harvesting parallel to prevailing winds and minimising the amount of edge left exposed. August 2010 Property Management and Protection Page 33

35 Protected ecosystems, reserves and species The protected ecosystem areas will be protected from plantation management operations. As the reserve areas are integrally linked to a much larger conservation estate, active animal pest control beyond that required for plantation health, is not practical nor contemplated other that in cooperation with neighbouring operations should they occur. Plant pest incursions will be visually monitored and attended to if required. Other management functions required include the maintenance of secure fencing around the areas to prevent grazing stock damaging the understorey of the native forest. Fire prevention and control With the weather patterns normally experienced in New Zealand during the period late spring/summer, fire can be a real threat to the forest. This can be minimised by: 1. Having an effective fire plan. 2. Active prevention measures which include; restrictions on allowable access, fire prevention signage, publicity when fire danger prevails, access to adequate water sources, and selective forest grazing to reduce fuel within stands. 3. Effective detection systems which includes; good communication systems, mapping, and fire plan alert procedures. 4. A close link with the relevant fire authorities, and an understanding of equipment and trained manpower requirements. 5. Good forest management that recognises the influence of terrain, roading network and accessibility, and fuel build-up from silvicultural practice, that will influence fire prevention and control measures. August 2010 Property Management and Protection Page 34

36 Forest management requirements The following forest management practices may be employed to assist fire prevention measures: Develop suitable internal access systems, predominantly tracking, but road construction at a later stage. Maintain existing firebreaks and develop others as the need arises. Time silvicultural operations to minimise the potential of fuel buildup and for better control of work activity. Have forest areas grazed where fuel build-up can be reduced. Endeavour to control access, and limit only to legitimate land users. Promote public awareness through appropriate signage. Develop a fire plan that encompasses prevention, detection and control procedures. Fire authority responsibilities The legal responsibility for fighting forest fires lies with the respective territorial land authorities where the forest is situated. In the case of Haumingi 18 forest the Rural Fire Authority (RFA) is the Pumicelands RFA. In the event of a fire that starts within the forest, the RFA is responsible for attending and providing the resources to extinguish the fire. Where a fire starts outside the forested area and moves into the forest, the RFA has recourse to the Rural Fire Fighting Fund to compensate for fire fighting costs. There is a close liaison with the RFA in terms of developing the fire plan and the maintenance of good communication relative to potential risks and fire danger ratings. August 2010 Property Management and Protection Page 35

37 Fire insurance With regard to the location of the forest and the high public activity around the fringes, there will always be the potential for fire. If a fire originates within the forest, the owners will ultimately be liable for suppression costs. A major fire may cost many thousands of dollars to extinguish, with the main costs being the use of heavy machinery, helicopters, and manpower. Insurance for Haumingi 18 forest is held by the forestowner. Public liability insurance The forestowner maintains public liability insurance cover with a fire fighting extension, to indemnify against unforeseen adverse activity both within the forest area and adjoining land tenure. In the case of fire spreading from Haumingi 18 forest onto adjoining land, the forestowner would be liable for the fire fighting costs and any damage to property. August 2010 Property Management and Protection Page 36

38 15. Monitoring Introduction To ensure that the management objectives identified in this plan are being achieved various monitoring exercises outside normal operations management have been developed. Monitoring results are summarised and reported to the forestowner as and when required and are also, where appropriate, made publicly available through the PF Olsen Ltd webpage. Values monitored Management inspections are regular during operations and periodically between times to monitor all aspects of the forest growth, health and conditions. The findings of the inspections are detailed and, where appropriate summarised on the PF Olsen FSC website. The full monitoring framework implemented and applicable to Haumingi 18 forest is tabulated below. More detailed comments follow. Monitored Element Environmental Process Monitoring Framework Include Components Data Source Data medium Chemical usage A.I usage/ Area overuse operations supervisors Consultation Activity Environmental Incidents Complaints. operations supervisors & planners Incident number / categories Flora & Fauna Species & Status frequencies/ new finds. Forest estate Structure Area (plantation & Protected ecosystem)/ age-class/ species/forest type/protection status. Forest growth PSP protocols / periodic inventory. ISO9001 operations supervisors operations supervisors, public, crews management plans/stand records contractors Forest Health Disease & health National Forest surveillance program 1 FIPS Form Form FIPS Form FIPS Form FIPS stand records To be established Reporting / Website frequency On demand / annual Annual / annual On demand / annual Annual / annual On demand / annual Periodic-annual not on web document Periodic-annual not on web Continued on next page... 1 Forest health inspections are undertaken annually, through the NZ Forest Owners Association forest health scheme. August 2010 Monitoring Page 37

39 ...continued FSC Membership Block/ location/name FIPS register FIPS client database Health and safety statistics Internal Audit CAR activity Log Production Operational monitoring LTI / accidents & incidents. operations supervisors FIPS Frequency * category Auditors/ees FIPS Form On harvest On demand / annual Monthly/ annual Annual / annual Total logs/ FSC markets log dockets Woodtrack On demand / annual Audit trends/cause analysis operations supervisors Pests X RTC / kill returns or other supervisors /contractors Protected Ecosystem Condition Recreational & non-timber FIPS Form To be established X Condition trends contractors To be established Permits issued branch offices / forest security Resource consents NA Number/compliance operations planners Stream NA Clarity +/- other specific supervisors Monitoring /contractors Environmental Training FIPS Form FIPS Courses, numbers, names Staff FIPS Form Monthly / annual Annual where relevant Bi-annual if restoration initiated Annual / annual 6 monthly / annual Spreadsheet Monthly / annual where relevant Annual/as relevant Financial Budget versus expenditure is monitored through the PF Olsen FIPS system and presented to the forestowner when requested. This information is not made public. Social Consultation with stakeholders has been undertaken and constant feedback from these stakeholders (and others as they become apparent) is monitored. This includes actions undertaken to resolves disputes and issues. August 2010 Monitoring Page 38

40 16. Future Planning Introduction This plan pertains to the management of Haumingi 18 forest and will be adhered to for the next 5 years. Any deviation from this plan will be justified only on the basis that the changes do not adversely affect the environment. Any changes, which are contrary to the policies contained in this management plan require a full review of this plan. The next review date for this plan is: August The forest management plan is used for both medium and long term planning. Operation plans For the short term we use Operation Plans. These plans are prepared annually in accordance with this Management Plan. The Operation Plan and associated budget are subject to approval by the forestowner at the beginning of each financial year. August 2010 Future Planning Page 39

41 Annex 1 Pest Plants and Animals Environment BoP Pest Management Strategy August 2010 Annex 1 Pest Plants and Animals Environment BoP Pest Management Strategy Page 40