Governor's Advisory Committee on Chip Mills

Governor's Advisory Committee on Chip Mills
Department of Natural Resources
Elm Street Conference Center
Jefferson City, Missouri
February 1, 1999

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, Deputy Director, Business Expansion and Attraction, Department of Economic Development
Senator Doyle Childers, Reeds Spring
David Day, Private property owner organization representative, Dixon
Mark Garnett, Forest Products Representative, Brandsville
Senator Wayne Goode, St. Louis
Deirdre Hirner, Citizen environmental conservation group, Columbia
Representative Bill Foster, Poplar Bluff
Jon Smith, Forest Products representative, Mountain View
Emily Firebaugh, Forest landowner, Farmington
Representative Bill Foster, Poplar Bluff
Sarah Tyree, Special Assistant, Department of Agriculture

Interested Parties Present

Steve Galliher, Piedmont
Stu Bailey, Perryville
Bill Bailey, Perryville
Don Farris, Ashland
Tommy Petzoldt, Frohna
Scott Brundage, Columbia
Brian Brookshire, Jefferson City
Laura Herbeck, University of Missouri, Columbia
Donna Homan, Jefferson City
John McCammon, St. Louis
Roy Hengerson, Jefferson City
Clair Kucera, Columbia
Steve Moore, West Plains
Dennis Meinert, Sullivan
Steve Shifley, University of Missouri, Columbia
Frank Thompson, University of Missouri, Columbia
Ed Loewenstein, University of Missouri, Columbia
Stuart Miller, Department of Natural Resources
Dennis Stinson, Department of Natural Resources
Dan Dey, University of Missouri, Columbia
Bill Dijak, University of Missouri, Columbia
Jack Slusher, University of Missouri, Columbia
Bill Bryan, Attorney General's Office
Don Scott
Andy Raedeke, University of Missouri, Columbia
Charles Hirt, Jackson
John Dwyer, University of Missouri, Columbia
Dustin Walter, University of Missouri, Columbia
Franz Mayer, Augusta
Mike Smith, Washington
Hank and Katie Dorst, Elk Creek
Terry Finger, House Research
Ed Galbraith, Department of Natural Resources
Dan Schuette, Department of Natural Resources
Louise McKeel, St. Louis
Chris Leonard, Columbia
Tony Nenninger, Bourbon
Carolina Pufalt, St. Louis
Dave Mosby, Department of Natural Resources
Scott Banbury, Dogwood Alliance
Tom Kuzen, Ozark River Keepers Network
Rick Cantrell, AFandPA, Washington, D.C.
Llona Weiss, Department of Natural Resources
Bill Moore, Conway, South Carolina
Katie Auman, Missouri Coalition for the Environment, St. Louis
Randy Crawford, Jefferson City
Kristen Kordecki, Columbia

Call to Order

Steve Mahfood, Director of the Department of Natural Resources, and the committee Co-Chair, called the meeting to order at 10:30 a.m. He called attention to informational materials that Llona Weiss had made available. Mr. Mahfood requested that individuals wishing to speak identify themselves and speak from the podium.

Mr. Mahfood announced that the presentation on Economic and Environmental Impacts of Chip Mills would not take place until after lunch.

Minutes of January 4, 1999 Meeting

Mr. Mahfood called attention to a correction in the minutes, page 6, sixth paragraph, last line should read: "The committee requested an annotated bibliography of key reports and reference materials."

Legislative Update

Llona Weiss reported that no bills have been filed so far on chip mills.

Representative McBride said that the Forest Products Association has been contacted for an update on the forest products law.

Update on Public Meetings, Permits, and/or Programs Held related to Chip Mill Issues

Dan Schuette, DNR staff, reported that the public notice period for Willamette Industries is over. Thirty-three people spoke at the public meeting regarding how the permit should be handled. The department gave an explanation of the permit process. Another 10 days was given after the public meeting if people wanted to present written comments. Mr. Schuette said they were in the process of reviewing all those comments.

Representative McBride asked if the mills would be charged with the responsibility of having logger training.

Dan Schuette responded that one of the conditions in the permit is to have all loggers that provide timber to a facility go through a logger training program. Currently MFPA and MDC provide a logger training program. That is also a requirement of the governor's executive order.

Mahfood stated that he wanted to keep the committee very up-to-date with key information. The executive order will be followed to the letter.

A lengthy discussion followed regarding permits and logger training.

Emily Firebaugh asked if you pay some logger that just comes to your gate, are they required to have training?

Dan Schuette: Responded that the permit gives the logger a year to get their training.

Mark Garnett: As a result of this permit process with Willamette, will DNR go back and require Canal to do those things?

Dan Schuette: We should not do this until the study of the advisory committee is completed. We can go back and open any permit if additional information warrants a change.

Emily Firebaugh: With a company like Westvaco, when they ship out of state they can get around a lot of these executive orders.

Mr. Mahfood: We can only apply to what is in-house.

Senator Childers stated that we need to see where this is heading and how it will affect landowners.

Dan Schuette responded that they would look into it and provide a preliminary idea. .

Emily: Now that Westvaco has 6,000 acres, Madison Co. that they still cut, but grade logs get shipped elsewhere. Once the logger is in there he can sell to whomever he wants to.

Senator Childers: Is there a requirement for this training?

Marvin Brown: We would like to see all the loggers in the state supervised by people with training. More and more companies are expressing to their loggers that they want them to get training. On Conservation Department land we intend to require training in the future.

Representative McBride: Instead of mandating training there might be some way of raising money through the industry to promote industries to come up with incentives on their own.

Emily Firebaugh: This is where we need to educate the landowner. They need to know you have to have roads established and wildlife protected and that there are good loggers and bad loggers.

Committee Packets - Information

Llona Weiss announced that the 1999 Environmental Sustainability for Public Policy Conference will be held March 4-5 at the UMC Memorial Union. More information will be provided at a later date. David Bedan brought a handout about the conference. The theme is "Towards a Vision for Missouri's Public and Private Forests," and will be held in conjunction with the tree farmers conference.

Marvin Brown presented packets of information prepared by Llona Weiss which included:

  1. Memo from Brian Brookshire along with the referenced outlines - MO Department of Conservation (on 2-1-99 Agenda).
  2. Executive Summary/Missouri Citizens' Attitudes Towards Forest Resources: Comparative and Present Perspectives - MO Department of Conservation (Brian Brookshire).
  3. Two letters from Michael A. Smith dated January 10, 1999. He has talked to Llona and asked if the Committee will discuss methods to "Equalize the playing field" (whether it be a tax, tax break, tax credit or whatever) with respect to the difference in price that a private property owner would receive for sale of his/her real property (low) vs. The price a private property owner would receive for sale of the harvest of timber only on his/her property (high).
  4. Forest Ecosystem Sustainability Issues in the Southern United States - MO Department of Natural Resources (Tom Lange).
  5. Increased Clearcutting for Woodchip Production in Tennessee: Statistics, Effects and trends - MO Department of Natural Resources (Tom Lange).
  6. Enforceable State Mechanisms for the Control of Nonpoint Source Water Pollution - MO Department of Natural Resources (Tom Lange).
  7. Assessing Economic Tradeoffs in Forest Management - Booklet mentioned by an audience member at 1-4-99 Committee meeting which we copied.

Marvin Brown noted that item 1 deals with things that were brought up at the last meeting. The U.S. Forest Service Experiment Station is conducting a study to look in detail at the resources in the state. Mark Twain National Forest has agreed to provide the funds for that study. The study will provide information to model some potential outcomes based on information.

John Dwyer provided a proposal to do a bibliography and Marvin Brown asked how the committee wanted to handle that.

Mr. Mahfood noted that John Dwyer would be asking for input from the committee.

John Dwyer commented that the State of North Carolina is undergoing a similar approach. The Governor is asking the forest industry to provide impact information. A number of studies have been done on the Tennessee River, and they all take a different approach. Permits were going to be approved by the Army Corps of Engineers, and then at the last minute they decided to look at off-site effects. Arkansas, Tennessee, Kentucky, Mississippi, Alabama, North Carolina, and South Carolina are states that might have information they can share with you.

Mr. Mahfood stated that EPA Region VII has put together a bibliography they would like for the committee to look at. It is geared toward the water side of the issue.

David Bedan asked for clarification on item 2 in the Department of Conservation proposal, stating that it sounds more like a summary report than a bibliography.

John Dwyer responded that we need to take the reports and glean from them what is meaningful for us. Some are not going to be applicable to our situation.

Mr. Mahfood suggested that a subcommittee of this committee be appointed to work on the economic impact issue and asked for volunteers.

Committee Appointment:

Earl Cannon, Department of Economic Development, Chairman

Mark Garnett, Forest Products representative

David Bedan, Citizen environmental conservation group

D. K. Hirner, Citizen environmental conservation group

The second set of information provided by Llona Weiss regarding press clippings and information from the public was discussed. The committee discussed ways of providing public access to materials and information that is received.

Mr. Mahfood stated it has been difficult to get a website for the department. Everything that comes in is public information. The subcommittee will report back to the committee, and the public will have as much information as the committee.

David Bedan pointed out that it is more difficult to make newspaper reports and clippings available than putting information on the website.

Senator Childers warned that information being given to the committee might be interpreted as a product of the committee.

Llona Weiss stated that the department has a repository for information coming to the committee. This could be made available at the Elm Street building for the public to view.

There was no further discussion on information materials.

Presentation on "Alternative Perspective of Current Status of Missouri Forests and Forest Industry and Potential Impacts of Increased Cutting Associated With Chip Mills" by Hank Dorst, Forest Technician, Mark Twain Forest Watchers.

A copy of Mr. Dorst's presentation is attached.

Mr. Mahfood asked if there were questions.

Senator Goode: In Mill Springs, corporate officials made a presentation and talked about how chip mills would use tops and cuts that would be wasted. I was surprised when I saw this list talking about the wood they will accept. This is not anything like they were telling us, and it looks like all they want is the same caliber of wood that would go to a sawmill.

Marvin Brown: There are different pictures in your mind when you talk about rough and rotten, such as cutting lumber and producing value-added versus cuts that are partly marginal.

Steve Gallihert: It means they will occasionally take a big tree. They are not going to reject a good cut. That is where training comes in. You have to set some standards. People we hire to run our chip plants are expert. They bring good training with them. We make sure they obey the laws of the state. We are not trying to get out of anything as much as we are trying to make sure whoever runs it is doing a good job.

Senator Goode asked that he come back to the committee at a later meeting with more information.

Marvin Brown asked how we go about educating the landowner - the key is in education.

Hank Dorst responded that the people he talks to in the chip mills say it is going to take an increase in resources in time, money, and personnel to really increase the availability and effectiveness of education programs.

Mr. Mahfood stated that we have very strong feelings about personal property rights and treating our resources correctly. Herein lies the need for the issues the committee will address.

Discussion continued and the comment was made that chip mills are putting mom and pop out of business.

Hank Dorst responded that in terms of low value logs and mom and pop, chip mills need a lot of product because of their high capacity. They are on the scene quicker than mom and pop.

Jon Smith commented that the big problem is the small diameter product. What happens to the trees and land after the clear cut has taken place? As far as addressing the problem, education, whether we make it voluntary or mandatory, is the real answer to what we are trying to solve.

Hank Dorst commented that the large tree forest in itself has an economic value such as wildlife value, recreation, hunting.

Emily Firebaugh commented that people need to be educated in knowing how to sell timber by weight. She called attention to a study on land and offered to make a copy available to the committee.

Mark Garnett asked if there is an allowance for tree tops or wood that has not been utilized in the past or is that something over and above growth?

Marvin Brown stated that it would be cubic foot measure and that you have to look at utilization standards.

Steve Shifley: Utilization is going to vary. From Missouri it goes down to a 5-inch top.

Mark Garnett: Are we to assume by that there is additional volume out there that would be suitable?

Steve Shifley: If you can specify what is accessible to the mill, that is possible. Anything over a 5-inch volume would not be included in the cubic foot measure.

Mark Garnett: What do we do with problem landowners?

Hank Dorst: There is a general feeling that even with a crash program to educate landowners and loggers, we will still only slightly increase the portion of land that is under good management. We are not going to reach all the land. How do we improve the percentage? What is it possible to accomplish? I am hopeful that a well-crafted series of solutions can be explained and sold to the majority of the public.

Mark Garnett: Regarding their sourcing area, is it your opinion that there is enough timber to service them and the rest of the industry?

Hank Dorst: My reading is that there is enough raw material there to do it. We are not going to go into a negative situation.

Emily Firebaugh: Are the chip mill companies getting timber from landowners?

Hank Dorst: This goes back to the sourcing requirements on the permit. Where the cut is coming from, what the price impact is. It is impossible to maintain the number of big trees we now have. It is going to be a whole new world.

Mark Garnett: How do we deal with the situation of raw logs leaving the state? DNR cannot regulate that at this point.

Hank Dorst: I would look at how other states have addressed the issue. I don't know if you can control that. Maybe you can put a severance tax on logs.

Mark Garnett: In your opinion, how many more chip mills can the state sustain?

Hank Dorst: I don't know. I don't want us to have to sustain any more. In terms of maintaining the kind of forest industry and environment we have, I don't think we can sustain more.

Mark Garnett: If Mrs. Firebaugh can take her land and produce timber in a small diameter, and the economic return is better than producing in a larger diameter, how do we deal with that?

Hank Dorst: I hate to think we are at the foot of market forces and there is nothing we can do.

Senator Goode: I submit that the issue is not whether we are going to have chip mills, the issue is what is going through chip mills.

David Day asked Hank Dorst what his wish list would be for this committee.

Hank Dorst: I want this committee to study several different scenarios: The two chip mills in the eastern Ozarks, with another mill in the eastern Ozarks; and a third scenario that shows the two eastern Ozarks mills and a third mill elsewhere.

David Day: With the situation as it is right now in Missouri, what do you see that needs to be done?

Hank Dorst: On one side I would like to see us make it as hard and as difficult as possible for these people who are here now to operate. I would like to see us make restrictions stick on how they get their product. I would like to encourage people to not sell to them. I would like people to invest in locally value-added products. On the other hand, is that the winning strategy? Keeping more out is essential. One thing that needs to be looked at in detail is exports out of state.

Emily Firebaugh: If we are going to get into free enterprise and free market, if they have to pay top dollars you might have discretionary money to go back and reclaim the land. If they pay a bare minimum, we would not show enough profit to put back into the land. Environmental groups should not put too many restraints on us in the future. I would like for us to be able to do it on our own without being legislated and regulated.

Public Comments

Katie Auman - Coalition for the Environment: When you talk about clear cutting and replanting, the tree is only one aspect. If you cut the trees you cut everything. Two mills produce 300,000 tons a year. Can they sustain that volume? Is that realistic on scrapwood? One possibility might be a tax incentive.

Emily Firebaugh: We have a tax incentive.

Katie Auman: Kentucky has a law that when an existing business wants to expand they go through a check list to see if the state can sustain that business.

Scott Brundage - Consulting Forester: We have seen these sites and what has been cut. On private woodlands in Missouri less than 5% of the timber sales have a professional forester involved. Over 95% of the timber in Missouri is managed by a logger with a chain saw. When we are talking about reaching the landowner to get the professional forester involved in the timber sales, to get this done immediately it is under the control of the chip mills. If the person who sells from managed land is going to get the same price as the person who sells from unmanaged land, there is no incentive. Management is the key to getting more money. I would look at how other states have addressed this issue. Maybe you can have severance taxes and make that a restraining trade. It wouldn't be prohibitive and it would make it less attractive for out-state people. I think there will be additional landowners in this state dedicated to small diameter production. Let the market operate, but direct it in the directions that are considered socially desirable.

The meeting adjourned for lunch at 12:45 pm. And reconvened at 1:40 p.m.

Presentation - "Economic and Environmental Impacts of Chip Mills" by Scott Banbury and Tom Kruzen, Dogwood Alliance.

Mr. Mahfood introduced Scott Banbury for this presentation. Mr. Banbury gave a slide presentation of chip mills and industrial forest management in the Southeast area. No printed transcript was presented and the following are some of his comments.

Mr. Banbury, who represents the Dogwood Alliance, commented that the Alliance represents 55 organizations across the S. E., in Missouri, and as far north as Pennsylvania. These 55 groups consist of environmentalists, carpenters, folks who have an interest in saw milling, teachers, and educators. He stated: I am someone who believes we should do everything we can to take care of what has been given to us by creation.

What we share in common is that we are all concerned about the rapid proliferation of the wood chipping industry.

Eastern Forests - Missouri's forests are spectacular. The forests in the eastern U.S. have undergone enormous, numerous stresses since the European settlement of this continent. The Ozark Highlands forests, oak-hickory, and oak-hickory-pine types were heavily impacted intensive timbering between 1850 and 1915 and again to a lesser degree during World War II. The Mississippi Riverine Forests, predominately oak-gum-cypress, young, and oak-hickory types, have been largely (as much as 90%) cleared for agriculture, making what remains extremely valuable in terms of habitat for specialized species of wildlife. Both forests serve as stop-over and nesting habitat for migratory birds.

Proliferation of Remote High-Capicity Chip Mills - Since 1985, the number of high-capacity chip mills operating east of the Rocky Mountains has gone from 30 to more than 140. Moreover, the capacity of chip mills has grown as well. It is conservatively estimated that more than 1.2 million acres are cleared each year to feed chip mills. This is in addition to what is already consumed by pulp mills with their own woodyards.

Pulp Mill Expansion - We have four different maps produced by the Appalachian Restoration Campaign. They are depicting different aspects of the situation we are now faced with. Some are pulp mills, oriented strandboard mills. We are looking at the size of pulp mills. It was mentioned earlier that the chip mills you have in the state can process 300,000 tons per year. But these chip mills are capable of producing as much as one million tons, depending on how many shifts you put on them. They pretty much have the hardwood forests covered now.

Part of the reason for the proliferation of chip mills is the increased demand for fiber by domestic pulp and paper industries in the deep south. Pulpmills throughout the region have been increasing their production over the past two decades. The United States now produces 28.5% of the world's paper and paperboard, and 31.3% of the world's pulp. Despite this increased production and record sales, pulp and paper employment declined by 2% since 1994. Forests close to pulp and paper facilities have been largely overcut and thus they have turned to remote chip mills in distant forests for their fiber.

Pulp Mills Without Their Own Woodyards - Some pulp mills have done away with their own wood- yards altogether and now rely entirely on remote chip mills. One reason for this may be the pulp and paper industry's desire to eliminate overhead in the form of union woodyard workers. As pulp mills turn to chip mills for their furnish, union jobs are replaced with fewer, lower paying less stable jobs at chip mills. Sometimes a pulp mill will close its union woodyard only to install a non-union chip mill on adjacent property connected by conveyors.

Exports - Another reason for the proliferation of chip mills is the export of chip mills to the Far East, particularly Japan. Hardwood chip exports have increased more than 500% since 1989. In fact, as much as 20% of hardwood pulpwood harvested is exported. During a conversation in the early 90s, with Dogwood's Cielo Sand, about Weyerhaeuser's plans in Tennessee, the manager of Weyerhaeuser's Amory, MS export chip mill, Charlie Hagen, said that their plans were on hold because "Tennesseans are not ready to see their hardwoods chipped out from under their noses..but give it a few years and a couple of chip mills and they'll get used to it."

Overcut Mississippi - Increased pulp and paper production, remote chip mills feeding pulp mills in other states, and export chip mills have taken their toll on deep Southern states like Mississippi. Areas where multiple chip mills operate are now overcut, meaning that more bio- mass is removed each year than grows. They are overcut for softwood and hardwood. Some areas have incomplete data.

There is a correlation where you have the sourcing and that they overlap. We hope this committee will look into what kind of long-term impact there will be on solid wood industry.

Tennesee River EIS, Permit Denial and Subsequent Rise of Whole Log Ports - In 1991, responding to public concern and observations as a result of over cutting in Alabama and Mississippi, the Tennessee Valley Authority initiated an Environmental Impact Statement (EIS) to support the decision to issue three permits to operate chip mills on the Tennessee River. This EIS found that the operation of the chip mills would likely have adverse impacts on water quality wildlife, tourism, property values and the future of the region's solid wood using industries. TVA subsequently denied the permits. The pulp and paper challenged the decision in Federal District Court only to have the judge side with TVA. Since then the industry has instead exported Tennessee's hardwoods-via chip mills in Mississippi and Alabama from whole log loading facilities along the river.

Canal Industries - Canal industries is a subsidiary of Itochu Corp. of Japan. They specialize in hardwood chips exports. Missouri was the third state approached to build a chip mill in the Mid South. After being denied a permit to operate an export chip mill on the Tennessee River, in 1993 Canal tried to build one in Eddyville, KY in 1994 only to be denied by the local Port Authority there due to intense public opposition. It is reported that 100% of Canal's production in Scott City is destined for Japan.

Williamette Industries - Willamette Industries of Portland, Oregon is one of several multinational corporations that turned to the Southeast for fiber after cutting all it could out of the Pacific Northwest. Between 1995 and 1998 Willamette Industries dramatically expanded production at their Hawesville, Kentucky pulp and paper mill. Willamette has built two chip mills in other states, one in Union Mills, North Carolina and one here in Mill Springs.

They also operate a chip mill in Kane, Pennsylvania which has been publicly and legally opposed by locals.

Westvaco - Westvaco in Wickliff, Kentucky already has enormous impact on western Kentucky and Tennessee. Due to differences in the availability of Forest Inventory and Analysis Data between the Southern and North Central Research Stations, we don't have a firm grasp on the impact Westvaco is having in eastern Missouri. We hope these potential impacts will be examined by this committee.

Tennessee FIA - In 1989 several areas of Tennessee were already showing the signs of over- cutting to feed existing pulp mills. All this chipping and clear cutting has been increasing for the last ten years.

Tennessee Projected Overcutting 1997 - Since 1989, clearcutting has increased dramatically across the state, but due to a lack of site specific information, we don't know how bad things are. We have taken a look at things ourselves and see where there is an overlap of sourcing areas for different high volume users in the state. This is a 75 mile radius.

State and Federal Subsidies - One of the underlying problems with chip mills is their subsidy by state and the federal government. For example, U.S. taxpayers shelled out $2 billion to build a Tennessee Tombigbee Waterway in Mississippi-Alabama and continue to pay $20 million a year to keep it dredged. The number one product shipped on the waterway today is wood, mostly in the form of chips, and the rest as whole trees going to chip mills. Chip mills also pursue state incentives when choosing locations and, despite the adverse impacts, usually get them. Kentucky figured this out and now has a law that requires any company seeking state assistance to submit a detailed timber sourcing study that demonstrates long-term sustainability. When Kentucky's contribution of $100 million to Willamette's Hawesville expansion was questioned under this law, Kentucky's Commissioner of Natural Resources, Hugh Archer, replied, "We've taken care of our forests, let them take care of their own."

Rural Economies - Studies show that while counties with pulp and paper mills enjoy an increased per capita income, the counties where pulpwood is harvested do not. Counties where pulpwood harvest dominates the land use are, in fact, associated with high rates of poverty.

Forest based recreation, on the other hand, supports far more jobs.

Chip mills also threaten existing forest product operations such as sawmills, flooring mills, and veneer mills, as well as cabinet and furniture factories, by cutting out the growing stock that these businesses depend on. Studies show that state investment in these industries is far superior to chip mills or pulp and paper, often creating 8-40 times as many jobs. A saw mill employing more people might be a wiser thing for a state to take a look at.

Water Quality - Clear-cutting is known is known to have adverse impacts on water quality for nutrient loading, reduced oxygen availability, sedimentation, and temperature increases to extreme exposure. While forestry generally has a lesser impact on water quality than agriculture, it does contribute significantly to total maximum daily loads.

Loss of Native Forests to Pine Conversion - Much of the "positive" growth shown in Forest Inventory and Analysis reports from the South is due to the conversion of vast acreage from native pine-hardwood forests to pine monoculture plantations. More than 36% of pine and pine-hardwood forestland in the South has already been converted, and experts believe that as much as 70% may be converted by 2020 if something doesn't happen to stop the trend. Pine plantations are often referred to as "biological deserts" in reference to their inability to support diverse assemblies of wildlife.

Soil Productivity - Some of the other impacts include exposing forest soil to direct sunlight. This destroys beneficial and essential soil organisms and microorganisms, including vertebrate and invertebrate decomposers and symbiotic mycorrhizae. Removing the larger part of the biomass from a forest also removes a large part of total nutrients available for regeneration and soil exposure allows nutrients remaining in the soil to leach away.

Forest Fragmentation - Forest fragmentation causes forests to dry out, result in shifting tree species composition and increased risk of fire. Fragmentation also exposes trees on the "edges" to increased damage from disease and windthrow. Adverse impacts of forest fragmentation on wildlife are many.

It is no coincidence that millions of hungry songbirds arrive in North America each spring just in time to devour emerging defoliating insects. Some estimate the value of this pest control by birds at as much as $5,000 per square mile each year. Ironically, or perhaps perversely, the clearcutting of the forests the birds protect is the greatest threat to their continued survival.

Is Clearcutting Really Justified? Industrial foresters will tell you that clearcutting is a "valid tool," this may seem rational if you are looking at forests as a mere crop. Some foresters will also tell you that clearcutting "mimics natural disturbances." If we look at forests as dynamic natural systems, however, we realize that clearcutting is ecologically incorrect and that clearcuts in no way resemble natural disturbances. The fires that once swept through the Ozarks and the floods that once inundated bottomlands left a much different ecological legacy than hauling away all the woody biomass in trucks. Some foresters will go further to assert that clearcutting is necessary for the regeneration of oaks even though successful oak regeneration has been repeatedly demonstrated in selectively managed forests.

Do Chip Mills Really Benefit Non-Industrial Private Forestland Owners With a "Needed" Market for Cull Materials? Canal Industries is up and running. Chip mill proponents will tell you that chip mills provide a "much needed" market for low-grade "junk" trees, thinnings and culls. In reality, chip mills do not pay enough money to make it profitable for a logger to take the time to thin a stand. Chip mills, instead, promote heavy capital investment in fellerbunchers, grapple skidders and 18 wheel log trucks, in turn forcing loggers to pursue high volume jobs--clearcutting--to pay the overhead.

Many forestland owners and respected timberland managers practice selective harvesting, including the periodic removal of cull trees and realize constant return on higher value large diameter trees. What's more, selective management is well suited to cable and draft-animal skidding-removal techniques that result in far less soil disturbance and residual stand damage.

It seems that Missouri is faced with a simple question - the answer for which will be written upon the landscape for generations to come. Should Missouri allow its natural bounty to be stripped away for the short term profit of a few individuals and distant corporations, or should Missouri protect its commonwealth and promote its wise use and management for the welfare of its people?

Mr. Mahfood asked if there were questions.

D. K. Hirner: In the U. S. We produce 28% of the paper and 31% of the pulp. How much of the product is exported? How much of the total paper and pulp usage in the world do we contribute to?

Scott Banbury: 75% of domestic consumption comes out of the southern forest regions. Missouri is on the edge of this.

D. K. Hirner asked that he find out how much we consume. She asked why we are exporting to Japan and commented that we, as Americans, also consume pulp and paper, and we have to admit we contribute to the problem.

Emily Firebaugh reported that she had talked to Canal Wood and asked their connection with the Japan corporation. She was told they were not connected with them. She further asked where Dogwood gets their funding.

Scott Banbury: We pay six employees across 14 states and have a $250,000 budget. A large part of this comes from private donors, mostly from the Appalachian region.

Earl Cannon: You talked about a study that there are certain kinds of industries that have a greater impact.

Scott Banbury: The ‘96 Mobile Register did a spread on their own forest production industries.

David Day: What do you want to see come out of this committee?

Scott Banbury: In Tennessee we are pursuing several legislative strategies. Establish a law like Kentucky has and look at sustainability before tax payer dollars are offered.

Establish a Forest Practices Act. This would do three things: 1) Every time a 20-acre cut goes down in the state the Department of Agriculture or Forestry would have to be notified. Require that a trained logger be responsible for that cut and follow best management practices and make them mandatory practices. 2) American Loggers Council has been troubled by sustainable forestry initiative. Every time we can find a consulting forester we want his name. They will do their best to achieve the objectives of the land owners. 3) Bad actors law. If you violate water quality law you are out of business.

I think severance taxes might discourage heavy cutting. Actually, results in county governments that depend on severance taxes to keep up schools and roads may undermine the sustainability of their own forests.. Be very cautious about going the way of severance taxes.

Mark Garnett: If any of this were enacted, is it your position that it would affect everyone in the existing timber industry?

Scott: Yes, it would affect everyone. The chip mill is going to make the rest of us look bad. Timber industry should get together among themselves and say we are not going to have this. I think it would be much better if loggers and the industry could take care of themselves.

Representative McBride: Someone sent me a copy of the materials that talked about the bad actor clauses. One of the things I have been concerned about is putting people through too many hoops to jump through. We also talked about making some funding available to people where schooling already takes place. There are consequences if you are not informed or educated.

Scott Banbury: We have a master logger program that you can go to.

Representative McBride: There are a lot of people making a living that have one truck and a chain saw. If we don't mandate, we can let them know there are certain guidelines and this school is available.

Scott Banbury: Be cautious with that kind of approach. Without there being some mandate for enforcement, the law is there but doesn't necessarily do anything. If they were a bad actor they would have to report where they are going to go for timber work.

Emily Firebaugh: I think the private land owner should be responsible. We are the ones who have the golden goose. Eventually it comes back to the land owner. Let's hold the person who has the land responsible, either with the reward or punishment.

Scott Banbury: Virginia has come a long way with that. You will find documents on land owner rights and responsibilities.

Mark Garnett: In Missouri, as I understand it, a private land owner can request help from Missouri Department of Conservation. Why don't more of the private land owners use that service? What is motivating these people?

Scott Banbury: In Tennessee the division of forestry was moved from Tennessee Department of Conservation to Department of Agriculture. It resulted in a large attrition of foresters from the division of forestry. This happened at the same time the Tennessee Valley Authority was promoting the Tennessee Valley to set up chip mills. In Tennessee you have a big distrust among land owners.

Mark Garnett: In Tennessee, how many of those people are using the Department of Forestry?

David Day: There is a lot of distrust of government. Their attitude is - the less I have to deal with government, the better.

Jon Smith: I run into a lot of people who don't know about the program.

Mark Garnett: It confuses me that we have sources out there and they are not being utilized.

Mark Garnett: You stated that the forests in Missouri had been clear cut once before?

Scott Banbury: Any time there are hard times people turn to clearing the woods.

Emily Firebaugh: UMC Extension has a really good video on logging.

Scott Banbury: Right now we have a situation where we have global climate change occurring. Most of Alabama, Mississippi, Tennessee, will be grass land.

Mark Garnett: We have a forest that has been harvested several times. Do you think there is enough wood in the sourcing area for those two chip mills?

Scott Banbury: I am sure you have enough wood to sustain those two chip mills. It depends on what you want. If you want a pulp wood colony they will come.

Rick Cantrell - American Forest Paper Association: I am aware that the Tennessee advisory panel was appointed by the legislature to undertake a similar study. They will make a report this Thursday. There is a lot this committee could glean from that panel. I encourage you to get someone from that panel to come and talk to you.

Mr. Mahfood asked if there were more questions for Scott Banbury. There were none and the committee continued.

Rick Cantrell commented that the sustainable forestry issue was not accurately portrayed. ALC has figured out ways to make the program work better. There are a lot of people in Alabama who take great issue with the Tennessee report and feel it is contradictory to the forest news service.

Mississippi has one of the most healthy forest products industries in the country. It is widely recognized, and I encourage you look at the Mississippi data. Get it from credible sources. We are talking about bad actors and laws and best management practices. Be aware of the issue about bad actor laws. Clean water action is mandatory.

Eric Peters - Missouri Forest Products Association: Since the logger training program comes up repeatedly, we would be glad to have the Swedish trainer come and speak to you. He is the best in the world in logger training. Also Skip Stokes and Lynn McClure. Any of those three would be glad to come at some point and speak to you. The non-government nature of the logger training program is what has made it successful and legitimate.

Representative McBride: What is the feeling of the association toward mandated training of loggers?

Eric Peters: Today, in February of 1999, I would say that the vast majority of the industry is behind the logger program. As proud as they are of it, they do not like the idea of state government telling them they must be forced to go through the program.

Representative McBride: I had not been told that. Instead of mandating - we should set up an incentive.

Eric Peters: Not only does it work with private land owners but also with loggers.

David Bedan: I understand your preference for a voluntary training program. How far can you take that? We still only have 20% of the timber sales.

Eric Peters: I would like to address that at a future date. A good example is the loggers that log. You have 40 co-ops in that business. Industry-wide there is a way of finding those that need it the most. We have been able in a short period of time to show that as the needs arise they have access to our logger training program immediately.

David Bedan: It seems like while you are making progress the chip mills may run around you. I see a mis-match in your efforts and those coming into the state. I don't see that you are going to get to the loggers and land owners that will have to deal with chip mills.

Eric Peters: We have done some marvelous things in 1 ½ years. 100 loggers have come through this program in 1999. We have already started on the year 2000. I don't want anyone to belittle our program because we haven't taken care of all the loggers in two years.

Jon Smith: It has had an impact on the program in the Ozarks. 100 loggers is a lot. It is working.

David Bedan: In the end it is the land owner who is going to determine what will happen.

Eric Peters: One of the developments is that by July 1st, 2000 the Missouri Department of Conservation will require any company who considers logging on state land to go through a certified logger training program.

Rick Cantrell: The greatest impact we thought was logger training. Four years after the program has begun the % of raw material delivered to a facility by trained logger was: 30% first year, 60% second year, 89% third year.

Dan Day: Research Forest, USDA. Outreach education needs to be planned and done in partnership with state government. One figure I can recall is that the landowner changes every seven years. Education needs to be for the land owner, logger, saw mill individual.

Louise McKeel: Another partner in this learning is the public in general. It affects air and water quality globally. Partners in this training need to be the public.

Roy Hengerson, legislative representative. I think Missouri is looking to this committee for some action. I do not have the solution, but I would like (1) state forest practices act. California has such an act and it allows state to get a handle on this. (2) Permit conducted on chip mills. Make sure these facilities are not causing environmental damage. (3) Management of the state land. Look at recommendation about management of land over control of Missouri Department of Conservation. Require sustained management on those lands. (4) All of these are involved in economics. Promote sustainable forestry and incentives to prevent overcuts.

This discussion concluded.

Because of time constraints Mr. Mahfood requested that two agenda items be postponed until the next meeting. They are: 1)Facilitator/Coordinator/Editor, and 2)Possible Discussion of Legal Issues. This was in agreement with the committee.

Mr. Mahfood continued on with the rest of the agenda.

Future Topics

Llona Weiss introduced Andrew Raedeke, Rural Sociologist from the University of Missouri.

Mr. Mahfood requested that committee members come prepared to suggest topics for the rest of the meetings. He also suggested a time limit on agenda items.

The meeting adjourned at 3:38 p.m.