Volume 10 Issue 1 | January 2016 -...

Volume 10 Issue 1 | January 2016

A Quarterly Publication of the Professional Logging Contractors of Maine

PROFESSIONAL LOGGING CONTRACTORS OF MAINE | Loggers Serving Loggers since 1995

Maine Pulp and Paper industry summit highlights challenges and opportunities for loggers

BANGOR – It is no secret to professional loggers that Maine’s pulp and paper industry is in crisis right now – next to paper mill workers themselves, loggers and their families are hit harder than any other sector of the state economy when mills shut down or slow down. That was part of the message delivered by the Professional Logging Contractors (PLC) of Maine to more than 200 pulp and paper industry representatives, legislators, forest products experts, loggers, and members of the media attending the Maine Pulp and Paper Association (MPPA) summit on the future of the industry Nov. 17.

While the focus of the event was on the challenges facing the pulp and paper industry, the PLC ensured the concerns of loggers were heard and that loggers – often

perceived as part of the problem – were instead viewed properly as critical to the solution. Speakers including PLC Executive Director Dana

Doran and logger Thomas Douglass, head of operations for Thomas Logging and Forestry of Guilford, outlined the realities of the logging industry today. “It’s not a good situation out there right now – in the last four months I’ve heard from six of our members that they’re going out of business,” Doran said. “My prediction right now is that by the mud season of 2016 we’re going to see a reduction probably of 10 to 15 percent in total logging capacity in the state of Maine. That is a tough story to tell but it’s the reality of the situation.” Loggers are being hit by a perfect storm of challenges right now: Fewer active pulp and paper mills and mills idling paper machines due to lowered demand for many paper products is reducing demand for wood fiber from Maine loggers. Low natural gas prices are cutting deeply into demand for biomass. Costs of operating a modern logging business are rising. Qualified workers are in short supply. Changes in land ownership and legislation are creating uncertainty in the logging market. One common misconception in the current discussion of pulp and paper issues is that the high cost of fiber in Maine is due to loggers’ inefficiency and profit margins. This was a view quickly refuted by the PLC. “Yes we can find efficiencies but I think everyone in the room can find efficiencies, it’s not just logging contractors that need to find them,” Doran said. “On our costs – we’ve seen minimal rate increases, but we’ve had to invest in productivity because the mills have wanted that productivity, people want to stay in business, we are

State of the Union 2

Director’s Report 3

PLC Member Spotlight 4

New Members 6

Safety First 10

Nortrax Inc.

Paper summit Continued on 2

“There’s a lot of work that can be done to make sure that Maine wood

goes to Maine mills. We need recognition from policy leaders that

Maine wood equals local good.”

Volume 10 Issue 1

2 Professional Logging Contractors of Maine — www.maineloggers.com

Executive Board

Brian Souers

President

Scott Madden 1st Vice President

Jim Nicols

2nd Vice President

Tony Madden Secretary

Andy Irish Treasurer

Robert Linkletter

Past President

Board of Directors

Chuck Ames

Kurt Babineau

Donald Cole

William Cole

Tom Cushman

Lyle Hamilton

Steve Hanington

Duane Jordan

Ron Ridley

Dana Doran Executive Director

Standing Strong For Loggers Since 1995

106 Sewall St. P.O. Box 1036

Augusta, ME 04332 Phone: 207.688.8195

Fax: 207.688.8197

THE LOGGER'S

VOICE

A Quarterly Publication of the

Professional Logging Contractors

of Maine

HAPPY NEW YEAR! To the greatest group of logging business owners in the world!

2015 has been a year of change in our industry in Maine and it has tested all of us. 2016 is likely to be a year that will define Maine’s forest products industry for years to come. The PLC is full of strong leaders and we plan to be part of the solution to help shape a strong forest products industry in Maine going forward.

It was suggested that I share some thoughts about how to “weather the storm” that we are currently experiencing here in Maine. After some thought, I don’t think we should be thinking about how to weather the storm. I think we should be thinking about how to adjust our sails and direct the winds and the currents of this storm in the best direction for our continued success. This is no different than most of you have done all of your careers. Only now, because so many great leaders in this business have developed PLC to the point where it is today, we have an organization that can make a difference for all of us.

PLC members have some of the greatest characteristics of any group of people I know. You are honest; you have integrity; you have an amazing work ethic; you are resourceful; you are adaptable; you are not interested in a hand out; you will make the most of a hand up; you welcome positive change; you resist wastefulness; you have vision; you are willing to invest in a future that is less than certain; you are problem solvers; you regularly think outside of the box; you make things happen when others wonder what happened! This is truly what the PLC is built upon and what makes our organization so strong.

I urge all of you to get more involved with the PLC in 2016. Among other things that PLC is hard at work on, we have a busy legislative agenda that could help shape the future of our industry and ensure greater profitability. Please pick up the phone, call Dana Doran and ask, “how can I get more involved and be part of the solution for Maine’s forest products industry”. I think, the answer will surprise you because PLC makes it so simple for all of us to participate.

I hope and trust that you all have had a very MERRY Christmas. Here’s to a New Year of opportunity for all of you amazing business owners and for your people!

Respectfully, Brian Souers PLC Board President Treeline, Inc.

State of Our Union

Brian Souers, President

www.maineloggers.com — Loggers Serving Loggers Since 1995 3

January 2016

A Path Forward

Dana Doran, Executive Director

In what seems to be a never-ending vortex of mill closures/reductions, price drops, market changes, policy instability and awful weather, it is tough to know which end is up. Perhaps we need to accept the reality that this is the new normal. I’m very hopeful that this is not the case and we will do all we can to reverse the course. It is tough to be positive, as there are challenges all around us. As I write this, I just received news that another mill, Northeast Pellet (Ashland) is curtailing their operation effective immediately because of the impact of the Canadian dollar. It’s cheaper to buy wood pellets from Canada than it is from a local mill right in our own backyard. And also in this newsletter, you will find a very interesting article on the future of biomass here in Maine. We all know that this past summer was a wake up call for biomass as natural gas and the weak Canadian dollar curtailed most of the biomass operations around the state or created an incentive for them to purchase biomass from Canada. With continued warm weather into the fall, the impact of these changes is really taking its toll. And finally, there is the infamous Mother Nature and the second mud season that has not done anyone a favor in November and December. This seems to be an annual pattern as we suffered through this same situation in December of 2014. If it’s not one thing, it’s another, and we seem to be in a perfect storm of adverse conditions. I guess one thing we have to look forward to (tongue in cheek) is the 2nd session of the 127th Maine Legislature, which begins on January 6th. I say this in jest but perhaps there could be a positive light at the end of the tunnel if the legislature and the LePage administration can work together to help our industry. The second session of the legislature is supposed to be shorter and less intrusive by design. Unlike the first session, when a legislator can submit as many bills as they want to, the second session is much different. New bills can only be introduced by the Governor (no limit) or approved by a majority of legislative leadership (Legislative Council - 10 legislators in leadership). Thus, it is much more challenging to introduce a bill in the second session, but that doesn’t necessarily mean that the session will be any easier. It is an election year after all. In the good news department, the PLC’s primary legislative agenda item (sales tax relief) for the second session has bi-partisan support from the Legislative Council. With the gloom and doom that is all around us, I think this is a positive which can help get this train back on the rails. LD 1481, “An Act To Protect Maine's Natural Resources Jobs by Exempting from Sales Tax Petroleum Products Used in Commercial Farming, Fishing and

Forestry”, sponsored by Senator Paul Davis, was approved by the Legislative Council on an 8 to 2 vote back in October to be heard as an emergency measure in the 2nd session. We are thankful to Senator Davis for bringing this forward and thankful to legislative leadership for recognizing our plight and doing what is right to help sustain our industry for the long-term. Maybe there really is an opportunity for positivity in Augusta? Does this mean that this measure will be approved by the legislature and put in the budget? Absolutely not, but it does show that there is support for our industry, the challenges we are facing and the fact that we are not competitive with other wood producing states. To me, this is a very good start. As one of our Board members reminds me on a consistent basis, you can’t cut more wood to remain profitable in this business. Cutting costs and reducing risk are part of our path forward and LD 1481 is a step on this journey. Getting legislation passed is not easy by any stretch, but what is harder is getting legislation passed that is funded in the budget. LD 290, our tax exemption bill in 2015, was passed by the Senate and the House, but inevitably failed on the Special Appropriations table. To move LD 1481 forward, we need the help and support of our entire membership. We have a legislative breakfast on February 23rd in Augusta and it is very important for all of you to play a role. When our bill is up for public hearing, we need your help to testify. And if our bill gets to the Special Appropriations Table, we need even more help from all of you to get it across the finish line. Beyond, LD 1481, the PLC will be playing a significant role to ensure the sustainability of our industry at the legislature. We will be working on some long-term solutions for biomass that should play out over the next couple of years. We will be keeping an eye on carry over bills from 2015 that could impact biomass, the arming of rangers, wind power development, and endangered species. It will be a short session, but there will be no shortage of things that we need to keep our eye on. In the end, we will make it out from under the strain that all of you are under right now by working together and looking for positive solutions. As loggers, you deal with challenges every day and are constantly finding solutions. Through the PLC, we will endeavor to do the same and find a path toward continued success. After all, we would have it no other way!!! Stay safe out there. Dana

Logging was hard work for low pay. Wayne knew all that, but even as a boy he loved the woods and that didn’t change as he got older. He also liked business. Wayne started his first business when he was 14 years old on Swan Lake where he grew up. After mailing out flyers to everyone on the lake he traveled by boat doing yard work, opening and closing camps and doing any other odd jobs that were asked. When he was old enough for his father to let him run a chain saw he began cutting wood with an old Farmall tractor and a four-foot pulp trailer. Even then he knew it was what he

wanted to do after high school. But first there was college. Wayne went to Kennebec Valley Community College in Fairfield and got a degree in Electrical Technology. He liked the program, but after he graduated he began trying to buy an old cable skidder to get back into the woods. His bank wouldn’t finance the skidder without proof of solid income, so he went to work at the Bucksport mill and after six months the bank gave him the loan. This became a pattern. “I spent a lot longer in the mills than I wanted to, but the condensed version of this is, every year I spent in a mill I bought another piece of equipment,” Wayne said. “I’m glad I spent the years I did doing that because it allowed me to build my business, to draw a paycheck without taking away from the business.” At first that business was just Wayne, a chainsaw, and the 1977 John Deere 440c cable skidder he bought after college. When he was 21 he hired his first employee, and that employee is still with him 17 years later. On days he had to work at the Bucksport mill his employee helped keep the operation going, and on other days they worked together, running the skidder and his first delimber as a team. Wayne would not be where he is

W.C. Tripp Continued on Page 5

PLC MEMBER SHOWCASE:

FRANKFORT - Wayne Tripp didn’t always take his late father’s advice, but he always listened to it. When he was growing up, his father – a second generation logger himself – advised him to choose any career but logging. He also told him to get a college degree. Wayne ended up ignoring the first advice, but he heeded the second, and he believes that has made him a far more successful logger than he would otherwise have been. “He used to say to me every day, please don’t go cut wood for a living,” Wayne recalled recently. “His exact words were, ‘I don’t care if you kill every tree in the forest, please go get a piece of paper first, get a degree,’ so I held up my end of it and I did. I spent every day after that trying to get back into the woods, but I wouldn’t be here today if it hadn’t been for my dad’s advice.” Today Wayne is owner of W.C. Tripp Forest Products in Frankfort, providing a full range of timber harvesting and forest management services. He has 14 employees, a large garage and office facility, more than a dozen pieces of heavy equipment, and a career he loves. He probably would have been a logger no matter what, but he’ll tell you that without his father’s insistence on college before logging, he would not have built the business he has today. Anyone who grew up in a multi-generation logging family can understand why Wayne’s father advised him not to make his living in the woods. Wayne’s grandfather was a logger who would work at the docks in Searsport when ships came in to make more money, because logging alone was not enough to pay the bills. Things hadn’t changed much by the time Wayne’s father was trying to support a family as a logger. He left logging in his late 30s to work at the Bucksport paper mill. Wayne remembers hearing his parents talk about his dad’s first few paychecks from the mill and his mom being able to go to the grocery stores and get a few things that they normally wouldn’t get.


Volume 10 Issue 1

W.C. TRIPP FOREST PRODUCTS: What better place to be?

W.C. Tripp truck on a ferry with a load of cedar


W.C. Tripp Continued from Page 4

today without the help of a great crew. As time went on it became clear to Wayne that the Bucksport mill would not remain in business forever and so when the opportunity arose he took a job as maintenance supervisor of the wood yard at Sappi Fine Paper’s Somerset mill in Skowhegan. It wasn’t logging, but it was a great job, and he still had enough flexibility to keep his business running on the side. “I always say if I had to go back to work for someone else, I would be right back at the wood yard at Sappi. That was a great job for a great company. There’s a lot of good people there.” Wayne said. When he added his second mechanical crew two years ago Wayne’s years in the mills came to an end. He gave his notice, and since then he has devoted all his time to his business. Today, W.C. Tripp Forest Products consists of two mechanical crews and one hand crew. The company operates equipment including six trucks, two grapple skidders, one cable skidder, two track bunchers, a stroke delimber, a pull-through delimber with slasher, and a chipper. Like most loggers, W.C. Tripp crews will travel long distances for jobs when necessary, and have harvested timber as far away as Augusta, Cherryfield, and Dover-Foxcroft, though the majority of work is closer to their base in Frankfort. The company prides itself on good landowner relations. As Wayne says, “You’re working on the family farm, and by God you better respect it.” Good landowner relations builds trust and referrals. In a word-of-mouth business like logging those referrals keep the business going. He feels another thing that may set his company apart a bit is his perspective, having been both a producer of timber and an end-user as a manager at a paper mill. Every Maine logger talks about the never-ending challenges of weather and regulations when it comes to working in the state, but the real challenge today is the uncertain markets – the paper mill closures and the ups and downs of supply and demand for wood fiber, Wayne said. Membership in the Professional Logging Contractors (PLC) of Maine has helped him navigate those challenges since his company joined the PLC last year. He has great confidence and trust in PLC Executive Director Dana Doran, and the

membership is also a great resource. “One of the biggest benefits I see is it’s a group of people that want the whole to succeed. They will help you succeed, they will help you be successful, it’s just a really good network. It’s just what it says, professionals, and that’s how professionals act,” Wayne said. For many successful logging companies in Maine today, adaptability and diversification have been the key to their survival. Similarly, Wayne feels the best way to describe the future of his business is “ever-changing,” which has been the case since the beginning and which he has no doubt will be the case going forward as he seeks new markets, adds new technology,

and tries to attract a new generation of workers. Things have certainly changed since the beginning of the company, when he bought an old cable skidder and went to work in the woods alone, but not everything. He still loves to cut wood with a chainsaw, and although W.C. Tripp Forest Products owns newer and far more expensive equipment, that 1977 John Deere 440c remains his favorite machine and is still on the job. “When your business grows the dynamics change. You go spend a bunch of money on a machine and have to trust in the guy you hand it over to. You don’t get to

spend 60 hours a week in it and get to know it like I know that John Deere,” Wayne said. Wayne thinks he would still have been happy if he had come out of high school and simply gone to work in the woods, but he is thankful his father pushed him to finish his education. It gave him many options and the tools to be both a logger and a successful business

owner. “I’m really glad I listened to my parents,” Wayne said. “If I hadn’t done that I might still have just a cable skidder and a chain saw. The path I took got me to where I am today.” He belongs in the woods, and he is very grateful to be able to have a logging business in Maine. “I love what I do and I feel that there’s no other place

that I’d want to do it,” Wayne said. “We are surrounded by our resource and I think if you love logging, what better place to be?”

January 2016

W.C. Tripp crew at work

Welcome New Members

PLC Members

Daniel Dunnells Logging, Inc. - Daniel Dunnells Logging of East Parsonsfield, ME joined the PLC as a new member in December of 2015. Daniel Dunnells Logging is fully mechanized and has a professional staff of four that includes certified logging professionals. For more information, please contact Dan at (207) 793-2901. J.D. Logging - J.D. Logging of Sebec, ME has joined the PLC as a new member in November of 2015. J. D. Logging has recently made the switch to being fully mechanized and has a staff of two people. J.D. Logging is a member of the Northeast Master Logger program. For more information, please contact John Dyer at 207-717-7732 or [email protected]. Michael Savage and Sons - Michael Savage and Sons of Sherman, ME joined the PLC as a new member in December of 2015. Michael Savage and Sons is fully mechanized and has a professional staff of nine that includes Northeast Master Logger Certified professionals. For more information, please contact Michael at (207) 365-4821.

Pepin Lumber - Pepin Lumber of Coburn Gore, ME joined the PLC as a new member in December of 2015. Pepin Lumber is fully mechanized and has a professional staff of twenty-nine that includes certified professional loggers. For more information, please contact Cedric at (207) 297-2555. T. Raymond Forest Products Inc.- T. Raymond Forest Products of Lee, ME joined the PLC as a new member in December of 2015. T. Raymond is fully mechanized and has a professional staff of twenty-four that includes certified professional loggers. For more information, please contact Hollie at (207) 738-2313.

Enhanced Supporting Members

Canadian Chains - Canadian Chains of Norridgewock, ME joined the PLC as a new Enhanced Supporting Member in October of 2015. The company manufactures and distributes the highest quality traction tire chains for the forestry industry. All of the chains are made in the USA. For more information please contact Jason Carrier at (207) 858-0690 or [email protected].


Volume 10 Issue 1

Champoux Insurance Group - Champoux Insurance Group joined the PLC as a new Enhanced Supporting Member in December of 2015 and is a Lewiston, ME based insurance company. They consult with independent business owners to evaluate risk, reduce costs, and design insurance programs to protect assets and profits. With years of specialized experience in the sectors they serve, their staff are experts at navigating the complex and ever-changing world of commercial insurance. For more information, contact Diane Champoux at 783-2246 or [email protected]

Supporting Members

ReEnergy Holdings LLC - ReEnergy Holdings LLC of Latham, NY has joined the PLC as a new Supporting Member in November of 2015. ReEnergy owns and operates facilities that use forest-derived woody biomass and other wood waste residues to produce homegrown, renewable energy. ReEnergy's four biomass power facilities in Maine are located in Ashland, Fort Fairfield, Livermore Falls and Stratton. For more information, please contact Eric Dumond at (207) 897-9062 or [email protected] Forest Diversity Services - Forest Diversity Services of Cross Lake, ME has joined the PLC as a new Supporting Member in November of 2015. The company offers forest operations planning, timber harvesting and supervision, wood brokering, road spotting, GIS mapping, forest management, timber value assessment and general forestry consulting. For more information, please contact Jay Plourde at 834-2969 or [email protected]. Louisiana Pacific - Louisiana Pacific (LP) of Houlton, ME has joined the PLC as a new supporting member in November of 2015. LP has an Engineered Wood Product mill that specializes in laminated strand lumber and oriented strand board and are a significant wood consumer and employer in southern Aroostook County. For more information, please contact Tim Richards at 694-8997 or [email protected].

PLC Supporting Member, NORTRAX, Inc. is an American corporation headquartered in Tampa, Florida and a subsidiary of machinery manufacturer John Deere that specializes in heavy equipment sales and service for the construction and forestry industries. What began as a combination of assets from two smaller dealerships (North Country and Ison) in the Midwest Region, led to an opportunity to form a retail outlet on a much larger scale. Metco, T&T, KC Canary, Grappone and Neff, were Northeastern dealerships purchased in 1999 – 2000, and with additional purchases of other equipment dealerships around the United States, Nortrax now has 25 branches in the United States, 20 branches in Canada and nearly 1000 employees. In 2004, Nortrax became a wholly-owned

subsidiary of John Deere. Primary equipment sales are comprised of John Deere construction and forestry equipment, Hitachi equipment and several other allied brands.

Maine offices of Nortrax are located in Fort Kent, Houlton, Bangor, and Westbrook. The company provides sales and service to loggers throughout Maine with high concentrations of customers in Northern, Western and Downeast Maine. “Loggers today are pressured to produce more wood per hour at a lower cost per ton and they need more and more from their machines. It is our job to find the right equipment to fit our customers’ needs. We can offer machines with more productivity, more reliability and uptime and more efficiency so our customers are getting the lowest operating costs. At Nortrax, we have the people in place and the best equipment to address the business challenges our loggers face,” the company’s Hermon branch said in a statement. One thing that sets Nortrax apart is the backing of Deere & Company, which was founded in 1837 and today manufactures a broad and impressive line of construction equipment and is the world’s leading manufacturer of forestry equipment. Nortrax has the ability to offer loggers John Deere’s comprehensive line of machines for road building, harvesting, extraction, loading and reforestation. On the product support front, Nortrax has made a large investment in ensuring they have highly trained

SUPPORTING MEMBER SPOTLIGHT-


January 2016

Product Support Technology Representatives (PSTR) in the field to better support their customers in an environment of increasingly complex technology. Those PSTRs are out in the field every day using technology tools to maximize loggers’ efficiencies and minimize their downtime. They have the equipment, the resources and a true commitment to forestry’s future. Nortrax is currently featuring the new John Deere L Series skidders and M Series feller bunchers and harvesters in its forestry equipment lineup. Marking the 50th anniversary of John Deere skidder manufacturing, the L-Series skidders are also the first Deere machines to debut with FT4 engines. Continuously Variable Transmission (CVT) and drivetrain offers a combination of benefits from both a hydrostatic transmission and a torque converter – ease of operation and fuel efficiency, as well as constant engine speed. Shifting is no longer necessary, as the transmission can select the best operating point based on operator-selected speed range. Grapples are also larger – up to 22.3 sq. ft. available on the 948L - and independent axle lock provides flexibility in engaging all four tires, or only the front or rear two. The M-Series tracked feller-bunchers and harvesters come in both a midsized (800 series) and larger (900 series) range. The 800M and 800MH models boast 25% greater engine power and 50% greater fuel tank capacity (now up to 230 gallons). In most conditions, these models can go a full 24 hours without refueling. Tractive effort increase of up to 45% also helps on rough terrain. The cab has 44% more window area, stretching from floor to ceiling. The 800 and 900 series both include Rapid Cycle System, which combines automated felling-head arm cycling with simple boom control. RCS can be turned on and off with a single button, and settings, tailored to individual skill sets, can be saved for multiple users. Also, a through-nose harvester head plumbing option extends hose life by routing them in safer areas. By pairing with the Professional Logging Contractors of Maine, Nortrax will be able to better connect their services with Maine loggers. To learn more, visit a Nortrax dealership near you or go online to nortrax.com.

John Deere L-Series skidder John Deere M-Series feller buncher

Volume 10 Issue 1


Over the last year, a renewed effort has been conducted to create a national park on more than 100,000 acres of privately owned land in northern Maine. Most recently, it has come to the attention of the Professional Logging Contractors (PLC) of Maine that this campaign has changed course a bit and there is now an effort underway to convince President Obama to designate a national monument on this land rather than a national park. After careful consideration, the PLC has decided it is time to speak up in opposition. The private land owner in question, Elliotsville Plantation Inc. (EPI), has made clear a desire to donate land in the Katahdin Region of Maine to the federal government for the purpose of establishing a national park and a national recreation area, which would require an act of Congress. We understand the President of EPI’s board, Mr. Lucas St. Clair, has been in discussions with the Department of the Interior to bypass Congress to seek a national monument designation for the land as an avenue that would eventually accomplish their ultimate goal. This concerns us and the loggers we represent for a number of reasons. The PLC is a trade association that represents logging contractors in the State of Maine, and our membership employs nearly 2,500 people and is responsible for about 75% of Maine’s annual timber harvest. As such, we must weigh all the ramifications of a national monument designation on the logging industry – an industry which has a long and proud tradition in Maine and in the region in question, and which today provides some of the best jobs remaining in that same region. We are extremely concerned that unilateral action to designate a national monument would do serious harm to our industry, resulting in both short term and long term lasting effects. Maine loggers working in the region depend on willing private landowners, access to existing roads and right-of-ways, and stable regulations to operate effectively. We believe all these things will be jeopardized should the land in question become federally owned. Many citizens living in the region also share these same concerns and are opposed to the federal government expanding its footprint to this area. In addition, more than 220 Maine businesses that employ more than 5,000 Mainers, many in the forest products industries, have announced their opposition to federal ownership of the land, largely because they believe this would hurt their businesses and prevent future investment and job creation. To be clear – anything that

hurts the forest products industry in Maine will hurt loggers. Our members supply the raw material for paper mills, pulp mills, sawmills, wood pellet plants, and producers of plywood and fiberboard. Without strong regional markets, logging as an industry cannot survive. While the PLC has a deep respect for the rights of private landowners, we also believe it is their responsibility to act in ways that do not harm the livelihoods of their neighbors. The designation of a national monument on the EPI land through executive order will only serve to further divide communities already split over the issue and discourage future

investment in the forest products industry in the region. This, along with the fact that three of Maine’s four Congressional members have serious concerns and do not endorse such a move, clearly

demonstrates now is not the time for a national monument in the Katahdin region of Maine. We feel strongly that EPI and Mr. St. Clair are deliberately simplifying the economic situation in the Katahdin region in order to make the case that the traditional forest products industry there is dead and a national monument or park is the only viable economic alternative to replace it. Nothing could be further from the truth. While it is true that Maine’s paper industry in the north central region of the state has suffered in recent years, it has not negatively impacted logging and the greater forest products industry to the extent many claim. In fact, total wood harvested in Maine actually increased from 13.5 million green tons in 2011 to 14.6 million green tons in 2014. Additionally, forest products companies like Ecoshel, Huber Corp., Irving, Louisiana Pacific, Ecoshel and RE Energy have invested millions of dollars on new infrastructure in the region. Counter to what has been in the news recently, this shows that the industry is actually growing, not disappearing, as many would like to believe. In addition to these concerns, the PLC is also disappointed that EPI and Mr. Lucas have so far made little effort to embrace the importance of timber harvesting to forest health in the region, or to ensure that it will remain a viable industry alongside whatever their land ultimately becomes. The PLC has attempted to work with EPI on several occasions to educate their leadership on the value of timber harvesting and sustainable forest management. We have also provided suggestions for how any type of federal declaration must incorporate sustainable timber management and act as an

PLC opposes National Monument in Katahdin region of Maine

Monument Continued on Page 9

Our View...


January 2016

The special Public Lands Commission organized by the legislature to consider Governor Paul LePage’s plan to fund energy upgrades for low-income Mainers with revenue from increased timber harvesting on public land voted Nov. 30 to reject the Governor’s demands, but the lengthy process has yielded two significant victories for the PLC and for loggers in Maine. The first of these was a decision to recommend to the Legislature that some surplus Public Lands funds be diverted to support education programs for future loggers. That decision could lead to financial support for equipment purchases for high school logger training programs and potentially benefit the new community college Mechanized Logging Operations Training Program as well. The decision followed a ruling by Maine’s Attorney General that Public Lands timber harvest revenues could be used to support education. The second win for the PLC concerned bidding eligibility for Public Lands timber harvests. Previously

the process was open to land managers, mills, and others who would then generally subcontract the work out. The Commission has recommended requirements now stipulate that bids be limited to professional logging contractors, ensuring harvests are conducted

professionally and lowering overall costs. The Commission has directed the Bureau of Public Lands to work with the PLC to revise these eligibility requirements. The Public Lands Commission staff will finalize the recommendations and Commission members had until December 5 to confirm their initial vote in favor of those recommendations, cast at the end of the meeting. Those recommendations will then go to the Legislature in January.

The PLC owes a special thanks to PLC Board Member Tony Madden, owner of A.W. Madden Inc. in Milford, who served on the Commission and was a voice for Maine loggers throughout the process. The PLC will be monitoring this issue as the Legislature reconvenes in January.

Public Lands surplus timber harvest revenue could support logger education, progress made on bidding requirements for public land harvests

end result. It would be to their benefit to visit a modern logging operation and sites properly restored after being logged in recent years to see just how wrong those assumptions are. Supporters of a national monument designation may be under the illusion that the parcel EPI wishes to donate to the federal government, as well as the surrounding land, is a pristine wilderness of old growth trees and undisturbed acres. In fact, the land and most of the region have been working forests for generations. The beauty people see there today is a result of responsible forest management and logging. Far from destroying the forests, loggers are part of this responsible management. Preserving Maine’s forests as “working forests” is the best way to ensure their protection and health for future generations. In closing, we would ask EPI, Mr. St. Clair, and the people of Maine to carefully consider what they want the future of the Katahdin region to be. Is it to be only a forest, with 150 years of proud industry history consigned to the pages of guidebooks for tourists? Or should it remain a showcase to the world of how well the interests of industry, outdoors enthusiasts, and seasonal visitors can be accommodated in a working forest for years to come?

educational showpiece to the world. EPI has been willing to participate in these discussions, but has never fully understood how a federal declaration could not only co-exist with forest management, but champion its ethos. This is a shortsighted decision and not one that embraces the history or current participation of timber harvesting in this region both now and in the future. PLC members are professional loggers with important business interests, but none have chosen to live and work in Maine for financial reasons alone. Most are outdoors enthusiasts with a strong respect for the woods who can imagine no better place to work. They are not the enemy of Maine’s forests but rather some of its strongest allies. They work in an industry that is sustainable and important for forest health, and most hope their children will have the same opportunity to do so for generations to come. A modern mechanized logging operation must be seen firsthand to be appreciated for its efficiency and careful stewardship of the forest. The machines are larger than ever before, but the effects on the landscape and the environment are much smaller. Logging has evolved into a science, as has the cleanup and restoration of logging sites. Many who oppose logging on any terms envision clear cuts, washouts and deeply rutted skid roads as its

Monument Continued from Page 8

Volume 10 Issue 1

SAFETY FIRST

Ted Clark, CLCS, Loss Control Representative, Acadia Insurance


Part 3: Developing Your Safety Culture

For the past two articles we have been working our way through techniques to reduce incident frequency by developing a safety culture at your company. In the final part of this series, we will explore the best way to prevent an incident. Recognizing early warning signs and addressing them before they become a loss is critical in order to avoid an injury or a claim, which will decrease production and profitability.

For a loss to occur there has to be a negative outcome such as an injury, decrease in production, equipment damage, etc. This could be as bad as a truck rolling over, a tree hitting an employee after falling off the truck, or as simple as an employee getting a cut on their hands.

A critical step in creating a safety culture is recognizing that incidents do occur and they are always preventable. Incidents can be an excellent teaching tool but far too often I find managers and owners making excuses for why the incident couldn’t have been prevented rather than searching for answers and solutions to prevent future accidents.

When incidents occur it is important to thoroughly investigate the cause, not necessarily to assign blame, but to learn what can be done to prevent the incident from happening in the future. Communicating the findings of your investigation with your entire staff can be a valuable learning opportunity for the entire organization.

The fact that is often overlooked about an incident investigation is that it is reactive, not proactive. Sure there are some benefits of investigating the incident but wouldn’t it be better to prevent the incident? Reporting and investigating near hits will enable the employer to make necessary changes to the operation to prevent the majority of incidents. “A Near Hit is a good thing”

I said this a couple of years ago during the PLC Safety Training and I received very curious looks and a few of you took the time to let me know that you thought I was crazy. But let’s talk about this…

A near hit is simply a close call that, an inch or a second another way, could have resulted in a loss. The majority of the time, when a near hit occurs, we breathe a sigh of relief that it wasn’t more serious and we continue on with our day without giving it much thought. The problem with this is that we are missing an excellent opportunity to prevent future incidents.

Time and time again statistics have shown that severe incidents that result in a fatality or serious injury have approximately 60 near hits that lead up to that incident. If addressed immediately and appropriately, that

is 60 opportunities (where no incident occurred), to learn from in order to prevent the likelihood of future incidents. Whether reported or not, near hits are happening, why not try to capitalize on their benefits?

The trouble with getting employees to report near hits is that, because of the culture we have created, they look at a close call as a negative, rather than an opportunity. It is your job as managers to change this mindset to one that encourages employees to report near hits. This can be done by educating employees of the benefits of near hits as well as incentivizing the reporting of them. Incentivize Near Hit Reporting

It is common to see an employer offer an incentive bonus to employees to not get hurt. This is done with the best of intentions, however, more often than not, results in employees hiding accidents and covering up little injuries that eventually become major problems with substantial cost. The most effective incentive program I have seen will also encourage employees to report near hits.

I suggest developing a program that rewards employees who report a near hit or hazardous situation and makes suggestions to improve the exposure. For example: You have a new crane in your equipment fleet. The employee who runs the crane recognizes the lack of adequate access, creating the chance of a slip and fall. The employee comes to you to discuss the hazard and suggests a couple cost effective solutions that will help reduce the exposure. At a minimum, this employee should be recognized in front of his peers for having the idea and his idea should be entertained by you, which includes communicating with them about your intentions. Conclusion

I find there are typically two types of employers: the ones that make excuses about why an incident couldn’t be prevented and the ones that believe incidents can be prevented but wait until they happen to make changes. If you were to spend a little bit of time investigating near hits and implementing small changes, you would save a lot of time, money, and headaches by preventing most of your incidents from occurring. In order to do this effectively you will need to educate your employees on what a near hit is and encourage them to report them when they occur.

Safety is a vital component of any successful business. With the current state of the industry, it becomes even more critical to focus on safety. Hopefully these past three articles have helped shed some light on how to improve your overall safety culture at your company.


January 2016


competitive people, so we’ve made those investments.” Most successful loggers today have transitioned to mechanized logging because of needs expressed by mills. This is expensive, as Doran illustrated by comparing the cost of investing in a cable-skidder and operator combination for between $175,000-$200,000 to the cost of investing in a modern feller buncher and an operator trained to run it. “Now you’re talking about an investment of $550,000,” Doran said. “Add to that the increased cost of fuel, lubricants, tires, and so on, and I think you’ve got a bit of a picture of what’s happened in our industry.” Along with higher costs of mechanization, logging is facing a shortage of workers qualified to run modern mechanized logging machinery and navigate an increasingly complex business environment, Douglass said. Douglass is a graduate of Unity College with a bachelor’s degree in Environmental Science and Forestry who is running a business originally started by his grandfather seven decades ago. While logging remains a great profession for those who love the outdoors and enjoy seeing the results of their work at the end of the day, the skills required by the industry have changed, he said. “No longer is getting out of high school with a strong work ethic going to cut it in this industry. Further education is now a key ingredient in the recipe for success,” Douglass said. Along with increased equipment costs and increased education needs, logging contractors face higher transportation bills because they are trucking fiber longer distances to remaining mills. If a logger is unlucky enough to work in an area where a major mill has shut down, they may be trucking logs hundreds of miles to a mill in order to sell them. In order to meet so many challenges, most

Paper summit Continued from Page 1

Volume 10 Issue 1

loggers that remain in business today have been forced to move beyond logging into a number of other industries including land development, production of fuels such as wood pellets, and other forest-related work to survive. “If you’re going to remain in this business you’ve got to diversify yourself, and you’ve got to become more efficient, because you are not going to add production capacity and make more money, that is the reality,” Doran said. “The only way you survive in the logging industry right now is to cut your costs – that’s how you remain profitable, that’s how you remain in

business.” Of all the things that could happen in the paper industry today that would help Maine loggers the most, one stands out – more use of local wood fiber. Accomplishing that will take cooperation from legislators, mills, loggers, and landowners. “We want to work with the mills to lower costs by incentivizing markets for local fiber, reducing transportation costs, and increasing opportunities for Maine contractors,” Doran said. “There’s a lot of work that can be done to make sure that Maine wood goes to Maine mills. We need recognition from policy leaders that Maine wood equals local good.” While the logging challenges outlined at the summit were many, the PLC also brought news to the event on current PLC

initiatives that are part of the solution. These included: ▪ The new Mechanized Logging Operations Training Program being developed jointly by the PLC and three Maine community colleges with generous support from Milton CAT and CAT Forest Products, and from Nortrax, will begin to meet the demand for new workers with advanced skills in the industry as mechanization increases and older workers retire. It is a great example of what a public-private partnership can accomplish.

Paper summit Continued on Page 13

Mechanized Logging Operations Program on track for 2016 launch Program draws new support from Nortrax

The region’s first post-secondary mechanized logging operators training program is gearing up for a mid-2016 launch with new support from Nortrax and final selection of an instructor expected in January. The Mechanized Logging Operations Training Program is being jointly developed by the Professional Logging Contractors (PLC) of Maine, Northern Maine Community College (NMCC), Eastern Maine Community College (EMCC), and Washington County Community College (WCCC) with generous support from Milton CAT and CAT Forest Products and additional support now pledged by Nortrax Inc. Nortrax will be donating a full cut-to-length system and a forwarder to the program in 2016. Milton CAT and CAT Forest Products has already pledged to donate roughly $1.2 million in equipment to the program and with the addition of the Nortrax donation the program is now in a great position to get underway, said PLC Executive Director Dana Doran. “We’ve now got almost two and a half million dollars in equipment for the program, so I think that puts the program at a great starting point,” Doran said. Interviews with instructor candidates for the program were conducted in late December and a decision on hiring is expected in January. The instructor will also act as coordinator for the program, and plans call for hiring two helper instructors in 2016 as well. The program will begin in Millinocket, most likely in mid to late June. “I think the timing is right because that gives high school students who will graduate in late May to early June the opportunity if they want to move forward to go directly from high school into this program, so we expand the audience and that’s a good thing,” Doran said. The current plan is to run the program three times


a year, moving it to new areas of the state each time, as long as demand will support that. As the economy has started to improve, it has become clear to the PLC that there is a desperate need for trained equipment operators for mechanized forest harvesting, not only within its membership, but throughout the state. The existing wood harvesting contractors in Maine are anxious to hire mechanized equipment operators who can harvest and process timber efficiently and safely to fulfill the increased demand. This need extends to small, medium and large contractors throughout the State of Maine as they increase productivity and continue to invest in highly technical equipment to meet the ever changing industry standards for forest harvesting. Once fully functional, the new certificate program will be offered on a rotating basis at different locations throughout northern and eastern Maine including training at EMCC in Bangor, WCCC in Calais, and NMCC in Presque Isle. In classroom and hands on settings, students will be taught machine operation and repair, maintenance, harvesting laws, best management practices and safety. Students completing the program will also receive industry recognized safety certification.

January 2016

▪ Negative perceptions of logging and loggers need to change and this is beginning to happen as professional standards in the industry rise and are recognized. Certifications such as Master Logger – started by the PLC 15 years ago – are part of this process and need to be marketed as a stamp of excellence for loggers who meet these high standards. ▪ Risk reduction in the logging industry is part of reducing operating costs. The PLC has undertaken an aggressive safety training approach to accomplish this. Reduced fuel costs for loggers will create savings that will be invested in making their businesses stronger. The PLC is working with legislators to pass a sales tax exemption on fuel for loggers similar to one currently available to professional fishermen.

▪ Cooperative buying opportunities can be used to reduce overall operating costs in the logging industry. The PLC is currently collecting information on fuel use to be used in a first-ever cooperative buying program for PLC members. Much opportunity remains in Maine’s logging industry today. In spite of challenges, there is no reason the profession cannot continue to flourish in a heavily forested state like Maine if mills, loggers, legislators, and landowners work together toward solutions that will benefit them all, Doran said. “No more finger pointing, get to work, roll up your sleeves, we will work with you, and let’s do something for the benefit of everyone, because negativity never helps anyone,” Doran said.

Paper summit Continued from Page 12

For registration and financial aid information, please contact Leah Buck, Assistant Dean of Continuing Education at NMCC, at (207)

768-2768 or [email protected]

If companies are interested in donating scholarships for eligible students, please contact Dana Doran, Executive Director of the

PLC, at (207) 688-8195 or [email protected]. The PLC has committed three scholarships ($1,500/student) for

eligible students nominated by PLC contractors.

tel:%28207%29%20768-2768

tel:%28207%29%20768-2768

mailto:[email protected]

tel:%28207%29%20688-8195

mailto:[email protected]

www.maineloggers.com—Logers Serving Loggers Since 1995 13

Volume 10 Issue 1


Biomass-derived energy is a critical source of renewable baseload power and heat in Maine and an important component of an affordable, diverse renewable energy portfolio that supports hundreds of direct and indirect jobs in the most rural areas of the state. Biomass power facilities reduce a community’s

reliance on fossil fuels while creating carbon reduction and greenhouse gas benefits. The United States Environmental Protection Agency (EPA) encourages states to consider biomass energy as a climate mitigation strategy and as a compliance strategy with respect to Clean Air Act Section 111(d). EPA’s Clean Power Plan, finalized in August 2015, concluded that the use of “qualified biomass” for

producing power can be considered a compliance strategy for states to meet statewide emission goals. EPA found that waste-derived and forest-derived industrial byproducts “are likely to have minimal or no net atmospheric contributions of CO2 emissions.” Further, the EPA found that feedstock from sustainably managed forests may also qualify as a climate mitigation strategy. The biomass sector has significant economic and environmental benefits: Biomass energy creates local, rural employment. As a rule of thumb, each megawatt of biomass-fueled electricity supports approximately five full-time jobs: one direct job in the biomass facility, and four indirect jobs in surrounding forests and communities. In Maine, this equates to more than 1,300 jobs when power plants are fully operational.

Biomass facilities generally are the largest local taxpayers in small towns where they are located, and each facility generates an estimated annual economic impact of $10-20 million. Biomass facilities make use of an abundant, indigenous local fuel supply and provide a valuable outlet for waste wood streams from forest products industries such as sawmills and pulp mills. When low-grade waste wood is removed from forests as part of a sustainable harvest plan, forest health is enhanced. This low-value forest waste would otherwise inhibit new growth in the forests, decompose on the forest floor and release methane, create forest fire risk, and obstruct future sustainable harvesting practices. Biomass power facilities in Maine provide more than 300 megawatts of baseload, sustainable, affordable, renewable energy. The use of biomass material for energy enhances energy independence and reduces reliance on imported fossil fuels. Maine biomass power facilities – which supply renewable power to all of New England through the regional electric transmission grid, an important export product for the state – are at great risk due to their vulnerability to renewable energy policies in southern New England states. Biomass facilities need to be able to monetize the value of their renewable energy attributes in order to be financially viable, and most of these facilities in Maine participate in renewable energy markets in other New England states. When those other states, such as Massachusetts and Connecticut, make changes in their Renewable Portfolio Standards that harm biomass or threaten to harm biomass, biomass power facilities in Maine can suffer. Unfortunately, they are vulnerable to the point that they face potential closure. Most, if not all, of the grid-scale biomass power facilities in Maine are either idled or in peril. ReEnergy’s four biomass power facilities (in Ashland, Fort Fairfield, Livermore Falls and Stratton) participate in the Connecticut Renewable Portfolio Standard program, which is expected to reduce the value of renewable energy credits received by biomass facilities beginning in 2018. Covanta’s two facilities (in Jonesboro and West Enfield) participate in the Massachusetts Renewable Energy Portfolio Standard program, and their eligibility to participate in that program is scheduled to expire at the end of 2015. Those six standalone biomass power plants together account for:

Biomass in Maine: challenges and opportunities By Sarah Boggess

Director of Communications and Governmental Affairs ReEnergy Holdings LLC

Biomass Continued on Page 18

ReEnergy Stratton, Maine facility

New membership levels and dues structure for PLC approved Dec. 17 Master Logger fees reduced for PLC members

The Professional Logging Contractors (PLC) of Maine Board of Directors approved changes to its dues and membership structure Dec. 17 that will lower dues for Master Logger certified Members, create new Affiliated Member and Forest Contractor Member levels, and retain the current Supporting Member level. The board also approved a lower fee structure for Master Loggers who are also members of the PLC. The dues and membership changes are designed to preserve the mission and leadership structure of the PLC while strengthening and growing the organization. The focus will remain firmly on serving and representing professional loggers. Only logging contractor members will be eligible to serve as Directors of the PLC, but the expanded membership classes will enable those who work in the logging industry but who do not qualify for logging contractor membership to also have a role and voice and to take advantage of insurance dividend benefits of membership. The new dues and membership structure is summarized below. (Contractor and Affiliated Member dues are based on annual tons of timber harvested or processed): * PLC Members who have already paid their dues for 2016 and who are eligible for a refund under the new dues structure will receive refund checks. One PLC member has already asked that his check be donated to the Log-A-Load for Maine Kids program, and the PLC will be happy to facilitate such a deposit for any other recipient of a refund if asked. PLC Membership Levels Logging Contractor - responsible for timber harvesting from stump to roadside – eligible for Board Membership, voting member, insurance dividend eligible. · $250 (25,000 tons and under) - $200 with Master Logger Certification · $500 (25,001 tons to 50,000 tons) - $400 with Master Logger Certification · $750 (50,001 to 100,000 tons) - $650 with Master Logger Certification · $1000 (100,001+ tons) - $900 with Master Logger Certification

Affiliated Contractor: includes chip mill, chipping contractor, grinding contractor, owner-operator/sub-contractor, slashing contractor – not eligible for Board membership, voting member, dividend eligible. · $250 (25,000 tons and under) · $500 (25,001 tons to 50,000 tons) · $750 (50,001 to 100,000 tons) · $1000 (100,001+ tons) Forest Contractor – Trucking Only or Road Construction: 50% or more of business is from forestry operations – not eligible for Board membership, voting member, dividend eligible. · $100, 0-2 employees · $250, 3-5 employees · $500, 6-10 employees · $750, 11+ employees Supporting Member: Paper & lumber mills, land management companies, vendors and service providers for PLC members – non-voting member. · $500, Supporting Member · $750, Enhanced Supporting Member · $1000, Preferred Supporting Member


January 2016

Master Logger Fee Schedule with PLC Incentive: · NEMCL (no employees) - $300.00 Annual Fee - $250 with PLC Membership · NEMCL (1-2 employees/partners) - $500.00 Annual Fee - $400 with PLC Membership · NEMCL (3 or more employees) - $700.00 Annual Fee - $600 with PLC Membership

As We See It—December 2015

“Trucking”

By Richard Schwab

Everywhere I go and talk with loggers there is a one common problem that is discussed during the conversation. TRUCKING!!!! We are beginning to realize that a perfect storm is brewing off of the coast and is headed our way to collide with our businesses. Federal CSA standards, increasing cost to comply with new safety standards, unwillingness of contract trucking companies to go to the woods, Insurance Underwriters unwilling to write policies for loggers. Just yesterday I learned that The American Trucking Association is forecasting a 50,000 driver shortage by the end of the year and The American Transportation Research Institute is forecasting a 250,000 driver shortage in 10 years. These stats are for all drivers. Imagine trying to compete for drivers in these kinds of shortages and then ask them to go to the woods. We have not even thought about hours of service compliance. On and on I could go about the issues that we face but I’m only limited to a few words here. Trucking has gotten to be a big enough issue where insurance underwriters, loggers, and industry companies have started a task force to try to head off the super storm that is headed our way. Soon, Jimmie Locklear with Forestry Mutual Insurance will write an “As We See It” column to discuss what the TEAM concept is and why we need this group. The ALC has been working through our Transportation Committee to establish good federal policy on trucking for years. Whether it is federal truck weight reform on federal highways or combating CSA standards and the pool of trucking companies affiliated with other industries that we as loggers are compared to. We have even worked on the new EPA regulations on emissions coming out of our trucks. All of this being said, what can we do as loggers on the ground now to combat what is going on now? These are some of the ideas that my family’s logging business has discovered in the last 3-5 years. We needed to increase our trucking capacity a few years ago and did not want to invest in the trucks or worry about drivers. We went to the larger bulk hauling companies and asked them for rates and availability. We were shocked to see how expensive their rates were. Once we got over the sticker shock we contracted with a company to do the trucking for a whole crew. We discovered that trucking companies and their employees do not work like we do in the logging business. We went through two trucking companies because the drivers were missing about 5-10 loads a week because of dependability issues. Keep in mind that these were not fly-by-night operators.

Through this process and frustration we had a bright idea. IF WE PAY OURSELVES THE HIGHER RATES THAT TRUCKING COMPANIES CHARGE WE CAN MAKE MONEY IN THE TRUCKING BUSINESS!!! Imagine that. You mean that we do not have to subsidize our trucking with our logging rates??? We started doing this and our profitability increased and we stopped missing as many loads. Evaluate what you are getting paid or what you are paying yourself. I know some of us are not in market places where an increase in trucking rates is possible. Start letting the powers that be know what we are dealing with. Remember the STORM IS COMING!!! Through this process we had to increase our mechanics in the shop to keep our fleet in better shape. I’m not talking about the major issues but the little things. Our CSA scores were going up not because of serious infractions but because of the little things: marker lights, straps, tags that could not be read, windshield washer fluid tank not being filled, air buzzers not being loud enough, etc. Up until recently we enjoyed grace on the little things. NOT ANY MORE!!!! The little things cost. These are a couple of things that we discovered. The most important things that we are learning through all of this are that loggers cannot afford to just be able to stay in the woods and log. That would be nice. We are going to have to face the fact that there is a trucking storm coming and for some of us it is already here. The American Loggers Council is working as hard as we can on the federal issues. TEAM is working on insurance and safety. We as loggers are going to have to be proactive, think outside the box, and do all we can to keep things going. We have a strong history of doing amazing things and being amazing businessmen. Let us take on this storm as we always have and solve this problem too. Log and Truck on!!! Richard Schwab is the Procurement Manager for M.A. Rigoni, Inc., a full service timber harvesting and forest management company located in Perry, Florida. The American Loggers Council is a non-profit 501(c) (6) corporation representing professional timber harvesters in 30 states across the US. For more information, visit their web site at www.amloggers.com or contact their office at 409-625-0206.


Volume 10 Issue 1

As We See It—January 2016

“Healthy Forests, Healthy Families and Healthy Communities”

By Paul McKenzie and Chuck Roady

When the general public hears the term “forest products industry” most folks immediately think of the manufacturers, sawmills, and corporate landowners. When the folks at F.H. Stoltze Land & Lumber Co. of Columbia Falls, Montana hear the term forest products color industry, we envision a three leg stool with each leg carrying an equal but different role, opportunity, and set of challenges. The three legs of that stool in our mind are the forest landowner, the logging-trucking infrastructure, and the manufacturing facilities. We all want the goal of healthy forests because it is where we live, raise our families, recreate, as well as make our living. We need all three legs of this stool to have the opportunity to be financially and operationally healthy to achieve those goals. F.H. Stoltze Land & Lumber is a 103-year-old family company that owns forest lands, a sawmill, a wood-fired power plant, and is a logging contractor. We are very fortunate to have a unique perspective, because we get to experience all three of the legs! The importance of the relationships between those three legs is critical to Stoltze, and over the years we have developed a working philosophy that centers on mutual respect of the three primary components of this industry. As land managers and contractors, we are given a simple, but powerful directive from the Stoltze Family, “Treat the land as if it were your own.” In those simple words lies the opportunity for pride in ownership and the responsibility of accountability for our actions. Fostering the relationship between the mill, logger and landowner is something that takes continual effort and quite honestly requires compromise and a commitment to see the greater common goal. At any one time, each leg of that stool could make business or operational decisions that may strengthen an individual leg, but would do so at the risk of weakening the other two legs. Trying to find a balance that is good for all is quite a challenge and requires significant effort by all parties. For Stoltze, the relationship between mill and logger is truly based on trust and mutual respect. If one looks up the definition of “trust” in the dictionary you will find words like: belief, reliable, good, effective, and honesty. We all know that trust is something that is built or earned through common experiences over time. In the words of Ronald Reagan, “Trust but Verify”, is an important step in building a relationship. It is not uncommon at Stoltze for there to be a 25 year plus relationship between the company and a logging contractor. We see our contracting workforce as an essential part of the team to get good forestry work done

on the ground, with each contractor having their own position or niche of expertise. The most visible evidence of this trust is the fact that Stoltze does not mark trees. This may not be a unique circumstance in many regions of the country, except for the fact that we rarely implement simple even-age management or plantation thinning prescriptions. Our goal on company lands and most of the small private lands we work on is to manage to an uneven aged – best tree management system which requires individual leave tree selection. Our professional foresters work with our professional logging contractors to discuss the silvicultural goals and desired outcome for the stand, then “turn the clipper operator free to implement those goals”. A primary component of the relationship between Stoltze and the contractors is a strong investment in education backed up by experience. Stoltze requires all our logging contractors to maintain the highest level of logger training available in Montana, which is the Accredited Logging Professional designation by the Montana Logging Association. This is a rigorous program that entails completion of an in-depth Forest Stewardship training, BMPS, safety training, and annual continuing education requirements. Ongoing conversations between foresters and contractors on how to better implement our timber harvests with the long term goal of forest and business sustainability in mind, rounds out the relationships. Why you may ask does Stoltze invest so heavily in the relationship between the mill and the logger? The answer is simple. While it is good for both the mill and logger, ultimately it is also necessary to build a strong relationship with the third leg, the forest landowner. In our neck of the woods, the landowner is not just the private Tree Farmer or rancher who owns some forested acres, but the general public as well. Over 70% of our forest land in northwestern Montana is in either State or Federal ownership. The fact that our contractors are free to bring a landowner to any of their jobs on Stoltze land to show their work and the knowledge that Stoltze will give a fair and honest review of a contractor’s work to a landowner is strong motivation to do their best at all times. The work on the ground is our resume’ and our report card. It is also a strong marketing tool to help convince other landowners that the Stoltze Team is their best option in managing their lands for the long term. This relationship is not perfect, as there are things that Stoltze would like to be able to offer contractors that are simply out of our control. One is certainty of continuous work. We operate in a severely constrained stumpage market though surrounded by a sea of public

www.maineloggers.com—Loggers Serving Loggers Since 1995 17

January 2016

As We See It Continued on Page 18

As We See It—January 2016

“Healthy Forests, Healthy Families and Healthy Communities”

By Paul McKenzie and Chuck Roady

forests. Stoltze is simply not able to guarantee work for all of our contractors all of the time. That is a frustration to both sides of the partnership, since it constrains us in making necessary business decisions, most significantly, capital investment for the future. Quality of work is often overshadowed by low costs, especially in a highly competitive stumpage market. Montana’s experiences extremely high stumpage values when compared to other parts of the country, mostly due to the shortage of available timber. This relationship and way of doing business comes at a very real financial cost on both sides of the table. The increased cost of operating under such high standards at times can be the difference between getting a job or not, especially if price is the primary deciding factor. Being the best logger or most efficient mill in the world does not do any good if you don’t have stumpage under contract to harvest! So the challenge is to find the balance. Stoltze is very proud to hold both Tree Farm

certification on our company timberlands and a SFI Fiber Sourcing Certificate on our procurement programs. Our quality logging contractors are the basis of both programs. We are hopeful that one day we will see a market that values and is willing to continually pay for quality forest management through the wood products market place. Until that day arrives, we have invested in building trust and sustainability as a basis for personal and business relationships between all three legs of the stool. That, in our opinion is good business and the evidence is in the quality of the forest stewardship we leave for the future. Paul McKenzie is the Lands & Resource Manager and Chuck Roady is the Vice President & General Manager of F.H. Stoltze Land & Lumber Co. located in Columbia Falls, Montana


Volume 10 Issue 1

As We See It Continued from Page 17

-148 direct jobs and an estimated 800+ indirect jobs -163 MW of generating capacity and 1.5 million

MWhs per year of production, enough power for 200,000+ homes

-2.5 million tons of purchased fuel per year -Annual economic impact exceeding $90 million

Because renewable energy policy in other New England states have such strong influence on Maine biomass energy projects, Maine government officials have periodically advocated for these Maine resources and encouraged the southern New England states to implement RPS programs that are stable and allow for continued inclusion of Maine biomass resources. It may be time for Maine to consider renewable energy policy that would support biomass energy in Maine and reduce the risk that is created from these facilities relying on out-of-state policy. If we were to follow that course, we could better control our own destiny and protect jobs in Maine. Sarah Boggess is Director of Communications and Governmental Affairs for ReEnergy Holdings LLC

Biomass Continued from Page 14

ReEnergy’s Stratton Maine biomass facility, at left, can produce enough power for about 46,000 homes. Biomass power facilities in Maine provide more than 300 megawatts of baseload, sustainable, affordable, renewable energy, but they are at great risk due to their vulnerability to renewable energy policies in southern New England states.

January 2016

www.maineloggers.com—Loggers Serving Loggers Since 1995 19

Remembering A Legend

By Eric A. Johnson

It’s sad to note the passing of a legend, but it also gives us an opportunity to recognize that person’s legendary accomplishments, and perhaps learn something useful in the process. People who leave their mark on an industry or a region or a segment of the population, do so because they have extraordinary abilities. They use them to rise above the ordinary. At the time of his death in early September at age 79, Earl St. John had become a living legend. He was one of the last survivors of a group of self-made men who started with nothing and proceeded to build regional forest products empires. They prospered through hard work, of course, but there was nothing special about that. Everyone in the logging business worked hard in those days. It was their keen sense of how turn a profit, build a business and deal with people, that set these men apart from everyone else who was scrambling to make it in the industry. I’m talking about wood industry giants like Herbert Haynes, Hollis “Junior” Hanington and Harold Bouchard—all of whom happen to have been from Maine. St. John was from the Upper Peninsula of Michigan and while he had a few legitimate competitors vying for the same stumpage and markets, much of the wood moving in a large chunk of the U-P was connected in some way to St. John Forest Products. Junior Hanington, who vied over the years with St. John for the unofficial title of “Biggest Logging Contractor East of the Mississippi,” offered some insight into how he built his empire. He once told me that he would buy a skidder and hire a good, young operator to run it. If the guy showed potential, Hanington would offer to sell him the machine, with terms that he could afford, and then promise to keep him busy cutting wood. This accomplished two important goals. First, it took an employee off the payroll, cutting Junior’s overhead while keeping the wood flowing at a fixed cost. Secondly, he created a grateful suppler, who appreciated the opportunity to start his own business. Even if this guy eventually grew big enough to strike out on his own, he never forgot who gave him his first break. Widespread loyalty and respect played a big role in the success these men enjoyed. A little fear didn’t hurt either, at least in Earl St. John’s case. He had a reputation—which he did nothing to dispel—as a guy you didn’t want to cross. At least not if you wanted to continue cutting, selling or procuring wood in the Upper Peninsula and Northern Wisconsin. Loyalty goes both

ways. The thing about Earl was that he could make the big guys—the paper mill bigwigs—nervous, in addition to everyone else up and down the so-called “supply chain.” I was in the room for that infamous meeting in the mid ‘90s where the paper industry unveiled the Sustainable Forestry Initiative. It was a small group—members of the industry press and some big, influential suppliers, like Earl St. John, along with a few paper company CEOs who were laying out the details of the program. The top dogs. Earl openly scoffed at their pledge to stop buying wood that didn’t meet certain environmental production standards. Talk is cheap, he said. He’d been around long enough to know that SFI wouldn’t be implemented fairly. Even though he was whizzing all over their bright idea, the guys in the suits respectfully listened to what St. John had to say. They knew who he was and how much wood he controlled—wood their mills needed to stay in business. That meeting, according to industry lore, got St. John thinking about who was going to represent the logger’s interests in this new procurement environment. He concluded that a group made up of, by and for logging contractors, would be a good start. He pursued the idea and became instrumental in forming the American Loggers’ Council. Happily, he lived to see it thrive and become what it is today—the voice of the American logging contractor in Washington, D.C. I always looked forward to seeing Earl St. John at the Lake States Logging Congress, which he would attend when it was held in the U-P. I missed the show this year—the first time in more than 30 years—and so I missed seeing Earl when he stopped by the booth for our traditional, annual chat, which in recent years had focused on our respective health challenges. Regrettably, he died just a few days later. Earl was proud to point out that he dropped out of grade school at an early age to pursue a logging career, which at that time meant cutting wood by hand with a bow saw. “The teacher kept saying that I should stay in school and make something of myself,” he would say, “until I pointed out that I was making more money than she was.” Eric A Johnson is Executive Editor of The Northern Logger and Timber Processor Magazine. This article appeared in the November 2015 issue of the magazine.

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February 23rd - Legislative Breakfast:

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7-9 a.m.

Open to all PLC Members

2016 Meeting Schedule

Professional Logging Contractors of Maine and Trust to Conserve Northeast Forestlands

Executive Board and Full Board

January 2016: No meeting February 11, 2016: Executive Board, 1 p.m., HO Bouchard/Comstock, Hampden March 17, 2016: Full Board, noon, Senator Inn, Augusta April 29, 2016: 21st Annual Meeting, Location TBA May 2016: No Meeting June 16, 2016: Executive Board, 1 p.m., PLC, Augusta July 2016: No meeting August 18, 2016: Executive Board, 1 p.m., HO Bouchard/Comstock, Hampden September 15, 2016: Full Board, noon, Senator Inn, Augusta October 2016: No meeting November 10, 2016: Executive Board, 1 p.m., PLC, Augusta December 15, 2016: Full Board, noon, Sheraton Four Points, Bangor January 2017: No Meeting

Volume 10 Issue 1 | January 2016 -...

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Transcript of Volume 10 Issue 1 | January 2016 -...