J. R. Ford P.O. Box 4490 Pagosa Springs, CO I m a business man trying to use a viable financial model to

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J. R. Ford P.O. Box 4490 Pagosa Springs, CO 81157 pagosaland@pagosa.net 970-264-5000 I m a business man trying to use a viable financial model to solve a natural resources problem.

KEY TOPICS Past, Present, and Future Timeline San Juan Headwaters Forest Health Partnership Community Scale Forestry Equipment Biomass Needs Pagosa Springs 5 MWe Power Plant Benefits to Archuleta County Local Jobs! Approximately 30 new local jobs Environmental / TSBD Monitoring Notes and Questions

Past, Present, and Future We have utilized our past experiences, incorporating present technology to create a sustainable project... turning struggles into opportunities. Our Past History Fuel mitigation 22 + years experience Weminuche Ranch Alpine Cascade Ranch Echo Canyon Ranch Hidden Valley Ranch Fuel mitigation frustrations Limitations associated with burning Had to be an alternative to burning and one that had multiple benefits to all Depth of chips we left on the forest floor when using Bull Hog equipment Improved Resources New Equipment low impact New Technology clean emissions Private Land Project Turkey Springs Biofuels Demonstration Future 5 MWe power plant in Archuleta County If model is successful then we ll target multiple locations regionally Regional distribution rights in CO and parts of NM, AZ, and UT. A 5 MWe power plant will supply approximately 30% of the current power usage in Archuleta County.

Timeline 2006 Feasibility study by McNeil Technologies Fall 2007-2009 Preliminary meetings with Forest Service, electrical co-ops and technology providers Fall 2009 - April 2010 Order and delivery of forestry equipment from Europe April 2010 - May 2012 Private land project September 2010-2011 Turkey Springs Biofuels Demonstration complete Current data collected has been conducive for moving forward. Summer 2011 Open bid opportunity for 10-year stewardship contract August 2011 Chris Mountain contract awarded, start date June 2012 June 2012 Long-Term Stewardship Contract awarded August 2012 Formation of new companies Forest Health Timber Products and Forest Health Company, LLC 2013 Plant engineering design reconfiguring to 5 MWe 2014 Startup of power plant in Archuleta County

San Juan Headwaters Forest Health Partnership The group is made up of ecologists; ranchers; educators; forest-related businesses; fire personnel and EMS; Home Owners Associations; representatives from federal, state, and county government and entities; consultants; conservationists; staff from the Pagosa Ranger District Office (USFS) and interested citizens. The specific activities the group is undertaking include the following: sharing and strengthening understanding of appropriate methods of maintaining and increasing health and resiliency in the mixedconifer landscape; broadening knowledge of current conditions, conservation needs, and opportunities; developing a set of restoration approaches, actions, and projects; initiating and recommending projects that address high priority needs and opportunities for restoration; and establishing follow-up monitoring methods to guide adaptive management. San Juan Headwaters Forest Health Partnership is committed to collaborative approaches to improving the health and long-term resilience of Ponderosa pine and mixed-conifer forests and the communities located near them in southwest Colorado. The group will focus on strengthening understanding, sharing knowledge and lessons learned, developing management approaches, initiating high priority projects, and monitoring results using an adaptive framework.

Community Scale Proximity is very important: max. 50-mile haul distance. Forests / material Sawmill / transportation of material A local power purchaser Support from the local community Through education and outreach San Juan Headwaters Forest Health Partnership Public speaking at all types of local events Public tour of biomass test site Support from local, regional, and national politicians and officials Important to show how small communities gain independence by becoming selfsufficient with their power needs while making their environment a safer habitat, using this or a similar business model. Remember to keep it to scale.

Forestry Equipment Currently being used, has a proven track record for reliable and economical chip procurement as well as minimal ground disturbance to the forest. Forwarder with chipper 8-wheel-drive forwarder with attached chipper, chip box, grapple and scales. Added feature of interchangeable rubber tires or tracks for adverse weather. 2 - Feller buncher with hot saw 6 arm extensions for diverse conditions. Photos credit: Randi Pierce\The Pagosa Springs SUN

All our equipment has been tested for efficiency, head variation, ground disturbance, and speed and operating costs. Photo credit: Randi Pierce\The Pagosa Springs SUN 41-cubic-yard capacity Photo credit: Randi Pierce\The Pagosa Springs SUN

Forest Health Timber Products, LLC 1301 Cloman Blvd., Pagosa Springs, CO 81147 4-6 MBF no-waste sawmill Manufacture 3 products: Cant Boards 4x6 and 6x6 Posts Ponderosa pine #2 and BTR 1x12 R/L

Biomass Fuel Needs Field data results Estimated 50,000 green tons per year Acquired from public & private acreage Estimate of 1,700 to 1,900 acres per year 26 to 45 green tons per acre 90% of our forest product will be between 5-12 DBH. Successful product procurement is within a 50-mile haul distance to the power plant.

5 MWe Local Power Plant We ll take our wood chips to a local supply of electricity. Wood chips will be 1.5 or less, need not be uniform, and will include bark and needles. This technology s emissions are within the State of Colorado air quality standards. Our technology provider has a 2MWe commercial gasifying plant with over 3,000 operation hours. Additionally they have a pilot plant with 18,000+ operation hours. Our plant will have a net-zero water usage with a product that has 18% moisture content or more. 15% moisture or less will require water supplementation. 12 new local jobs in the power plant.

Pagosa Springs 5MWe Power Plant Site LPEA transmission lines run parallel with the plant site Currently next to land which is zoned for light industrial use Site

Benefits we see brought to Archuleta County The forest interface in Archuleta County will become a safer buffer for our residences from wildland forest fires. The forest thinning will be preemptive and will help mitigate beetle infestation protect our watershed forest health increase groundwater supply. When this project is successful, it should give Archuleta County the opportunity to create more economic development through private business. Reduction in green tonnage currently in Archuleta County s waste management cells

Local Jobs Approximately 12 new jobs in the power plant and 8 new jobs in the biomass procurement group Power Plant 1 - Plant Manager 5 - Plant Operators 3 - Fuel Handlers 2 - Maintenance 1 - Administration Biomass Procurement Group 2 - Harvesters 1 - Whole Tree Chipper Operator 1 - Mechanic / Swing Operator 2 - Chip Transport Operators 2 - Truck Drivers Our project will create new job opportunities, such as a new cant sawmill which would employ 8 additional persons.

Environmental Maintaining the objective to improve our forest s health & fire mitigation using one treatment procedure Through the operation of their test plant our technology provider has proven that our plant will meet the current air quality standards required for the San Juan Wilderness Area. As long as our fuel product has high moisture content (typical of the San Juan Forests) our power plant will have a net water gain and all the excess water will be of quality for irrigation. After our treatment to the forest: Should there be a wildland fire there will be less contamination to the domestic water supply. Wildlife grazing habitat will be improved. In our opinion, an additional 25%+ of moisture will reach the forest floor after the area has been treated. The treated area will have less likelihood of a catastrophic crown fire. Methane levels will be reduced by our removal of decaying timber. Information obtained from the Turkey Springs Biofuels Demonstration Site shows positive results regarding the benefits to thinning the forest. Benefits are, but are not limited to, the overall health of the forest as well as fire mitigation.

Monitoring Notes and Questions We are committed to adjusting our operations to support the Forest Service s monitoring and environmental requirements. Will our equipment remove the biomass in an efficient and cost-effective way? Yes! Will we have favorable environmental impacts? Yes! Quantifying the green tons per acre with the use of on-site scales. Yes! Current treatment costs to the government will be reduced. Yes!

J. R. Ford P.O. Box 4490 Pagosa Springs, CO 81157 pagosaland@pagosa.net 970-264-5000 I m a business man trying to use a viable financial model to solve a natural resources problem.