Governor's Advisory Committee on Chip Mills

Governor's Advisory Committee on Chip Mills
Elm Street Conference Center
Jefferson City, Missouri
November 25, 1998

Committee Members Present

Stephen Mahfood, Director, Department of Natural Resources
Marvin Brown, State Forester, Department of Conservation
David Bedan, citizen environmental conservation group, Columbia
Earl Cannon, Director, Business Support Services, Department of Economic Development
Senator Doyle Childers, Reeds Spring
David Day, private property owner organization representative, Dixon
Emily Firebaugh, forest landowner, Farmington
Rep. Bill Foster, Poplar Bluff
Mark Garnett, forest products representative, West Plains (via telephone)
Senator Wayne Goode, St. Louis (via telephone)
Deirdre Hirner, citizen environmental conservation group, Columbia
Rep. Jerry McBride, Edgar Springs
Jon Smith, forest products representative, Mountain View
Sarah Tyree, Special Assistant, Department of Agriculture

Interested Parties Present

Llona Weiss, DNR
Claude Shupe, Mill Spring Chips, The Price Companies, Mill Spring
Brian Brookshire, Department of Conservation
John McCannon, The Nature Conservancy, St. Louis, MO
Bill Bryan, Attorney General's Office
Tom Lange, DNR
Denise Garnier, Senate Research
Eric Peters, Missouri Forest Products Association, Jefferson City
Steve Galliher, Willamette Industries, Inc., Piedmont, MO
Martha LeMond, Department of Economic Development
Glen Yake, Jr., Missouri Stave, Brighton, MO
Terry Finger, House Research
Dan Schuette, DNR
Scott Branbury, Dogwood Alliance, Memphis, TN
Sarah Bantz, Missouri Heartwood, Columbia, MO
Louise McKeel, Gateway Green Alliance, St. Louis, MO

Welcome, Call to Order, and Introduction

Steve Mahfood called the meeting to order at 10:20 a.m. Mr. Mahfood explained the Governor appointed four agencies (DNR, MDC, DED, DA) to participate in this effort. Mr. Steve Mahfood, DNR director, and Mr. Marvin Brown, MDC state forester, will lead the effort as the co-chairs.

Mr. Mahfood welcomed the committee members and expressed his appreciation for their attendance. Each member of the committee and audience introduced themselves. Mr. Mahfood provided a general overview of the meeting agenda and related that it was designed to initiate the group to funding, timeframes and an understanding of the key issues associated with chip mills and forestry impacts. Each member should leave this meeting with an understanding of why the committee exists and the work that needs to be done. It is essential that the committee come to this understanding before moving to more complex issues.

Mr. Mahfood presented the ground rules he would like to apply to meetings of the committee. He would like committee meetings to be an open process with the public encouraged to participate. It has been suggested that an item be placed on the meeting agendas specifically for public input and comment. He would prefer to not restrict input from the public, but emphasized that courtesy must prevail and the committee will have to be cognizant of time. Mr. Mahfood especially encouraged written input and formal presentation of information.

Mr. Mahfood asked the committee if there was anything they needed before beginning formal discussion of agenda items. Emily Firebaugh asked if committee members are required to submit financial statements to the Missouri Ethics Commission. Bill Bryan, Attorney General's Office (AGO), discussed how the Missouri Ethics Law applies to lobbyists and public officials. He also suggested that the committee members telephone the Ethics Commission or himself with specific questions. The DNR and AGO cannot absolutely advise committee members on a course of action.

Mr. Mahfood presented the historical reasons behind formation of this committee. There have been numerous concerns expressed by Missouri citizens regarding forest management practices associated with chip mill operations. No one has real answers. The committee is here to locate and assemble the necessary information and make recommendations in compliance with the Governor's Executive Order. This represents a significant effort to be accomplished within a one-year time frame.

Representative Jerry McBride suggested that the committee check on what other states have done. Also, the committee should consider how recommendations could be written into law. Mr. Mahfood agreed the Advisory Committee's relationship with the Interim Committee and General Assembly is important. Representative McBride added that the committee should be as specific as possible, especially when dealing with private lands.

Overview of the Advisory Committee and Executive Order

The group discussed the definition of chip mills and the executive order. Brian Brookshire, Department of Conservation, presented a chart and statistics on chip mills and forest sourcing areas by these mills. The Department of Conservation obtains this information through their forest inventory. Willamette Industries and Canal Chip Corporation are capable of producing 300,000 tons of chips annually. Ozark Wood Products in southwest Missouri has a production capacity of 80-100 tons of chips annually. David Bedan asked if facilities in other states harvest wood in Missouri. Mr. Brookshire responded yes, but it is difficult to track since independent Missouri loggers could also sell logs to mills outside Missouri.

The group had a lengthy discussion regarding timber harvesting feasibility vs. shipping costs. Mills ship their product using various modes to include truck, rail and barge. Optimum log size and quality were also discussed. Chip mills use smaller diameter, lower quality material or "culls." A saw log is a log capable of being sawed into boards.

The group discussed the rough and rotten category and whether chip mills use rough and rotten wood. In addition to size, grade and quality are important. Discussions ensued concerning the value of these various forest and timber resources for species habitat.

Considerable discussion ensued on forest land ownership and lack of management to include: Some land changes ownership many times, and some owners looking for the maximum dollar benefit from their land are not concerned with the future of the forests. Emily Firebaugh noted that only 10% of the landowners are in a forest stewardship program. Less forest is being harvested from federal lands due to environmental concerns. Tax incentive programs were discussed.

Funding Issues

The executive order does not include a budget. The four state agencies have set aside $35,000 for the report and agreed to share the expenses of the public members. The Department of Economic Development is still looking at possible additional available funding. Field trips, contractors, consultants, universities, invited guests and video presentations were discussed as tools that could be used to assist the committee's knowledge on various issues. State agency resources could be used, however public perception could be an issue.

The committee discussed the January 1, 1999 Executive Order deadline should the committee have any needs or requests during the next year. The Committee indicated the Executive Order seems to provide adequate safeguards and protections for the one-year timeframe of the study. The only concern voiced was the limited funding for the study. Thirty-five thousand dollars ($35,000) may be very inadequate and the committee should consider raising this issue to the Governor for his financial support.

Tom Lange, DNR, summarized the main points of the Executive Order relating to the items to be addressed on the committee's study of the impacts of chip mills and the associated forest harvesting practices, the purposes of the Advisory Committee, and the timeframes for submitting possible interim recommendations and its final study and recommendations.

Mr. Mahfood requested the legislative members' support if the committee decides to ask the General Assembly for additional funding. Representative McBride suggested that the committee make a request of the Governor's Office to add this as a supplemental appropriation. Mr. Mahfood noted that January 1 is the due date for the committee's interim report. The agency members agreed to discuss the budget issue before the next committee meeting.

Lunch 12:35 p.m. – 1:20 p.m.

Discussion continued of the executive order. Dan Schuette, DNR, summarized DNR's obligations and permitting issues. Mr. Mahfood noted the departments' obligations are in effect during the effective time period of the executive order, which culminates with the issuance of the committee's report on December 1, 1999. If the committee wishes to extend the time period, that can be included in the committee's recommendation.

Marvin Brown, MDC, highlighted forestry's best management practices applied on property owned by the Department of Conservation, and the benefits of the forest industry's sustainable forestry initiative. Mr. Bedan asked that the industry's sustainable development initiative guidelines be distributed to the committee. Mr. Brown agreed to provide this to the members.

Earl Cannon, Department of Economic Development, discussed their department's intent to comply with the executive order. He also discussed the department's incentive programs for business growth and expansion. There are generally two types of incentives, statutory or formula based, and discretionary. The incentives included in the executive order are discretionary. Mr. Cannon also discussed tax credits, enterprise zones, and low interest loan programs.

Legal/Ethical Issues - AGO

Bill Bryan, AGO, will attend committee meetings, answer legal questions and be available to the committee. He briefly discussed Missouri's Ethics Law. Basically, it requires that committee members not use their role on the committee with the intent of gaining personal financial benefit. Also, the committee's activities probably do not qualify its members as "lobbyists" under Missouri's Ethics Law. Mr. Bryan also discussed Missouri's Sunshine Law. Under these requirements, the committee should refrain from discussing public business that is not included on the formal agenda. He believed the committee should be provided appropriate latitude at this initial organizational meeting because of the general, introductory nature of this meeting, but in the future the committee should submit agenda items in advance. The agenda must be posted at least 24 hours before the meeting. Mr. Mahfood noted these guidelines apply to members of the public in attendance as well. Mr. Bryan added that it is permissible for the committee to go into closed session to obtain legal advice. All records produced by the committee are public records. Regarding the possibility of holding a meeting outside the state, the Sunshine Law indicates a meeting must be held at a location that is reasonably accessible by the public. The committee and the AGO will deal with these types of issues as they arise. He also provided a quick overview of state and federal environmental laws and how they apply to the committee.

Tentative Time Frames

Mr. Mahfood recapped that the four state agencies and the AGO will review the directives of the executive order, determine what background information presently exists, and determine what additional resources are needed. The committee may request necessary financial resources from the Governor's Office. The map presented by Mr. Brookshire, and the sustainable forest initiative information will be given to all committee members. Mr. Brown recapped that there are several ways to pull together the necessary information: 1) Appoint an interagency staff group, 2) Go to the university and identify someone with particular disciplines, 3) Go outside for bid to an independent contractor. Mr. Brown expects the cost to increase with each successive option.

Mr. Bedan mentioned participating in a comprehensive federal study. Ms. Firebaugh stated that she does not recommend moving to the federal level. Mr. Brown suggested that this be discussed at the next meeting.

Mr. Brown reminded guests to sign in so that they may receive meeting information.

Dates of Future Meetings

Potential legislation will be discussed at the next meeting. The committee will meet the first Monday of each month, 10:00 a.m. – 3:00 p.m. The next meeting will be January 4, 1999. Agenda items should be sent to Llona Weiss, DNR Director's Office. The Department of Economic Development will host the next meeting. The Elm Street conference center can be used when needed. Llona Weiss thanked the committee and audience for their cooperation and participation. Senator Childers requested a bibliography of resources and publications available. The audience was reminded again to sign the Attendance Record if they wish to receive meeting notices and information.

The meeting was adjourned at 2:35 p.m.