2015 annual report - canadian kraft paper · page 3 of 47 executive summary canadian kraft...

2015 ANNUAL REPORT on the

CSA Z809-08

SUSTAINABLE FOREST MANAGEMENT PLAN (2012)

December 13, 2016

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Table of Contents

Executive Summary ......................................................................... 3

Introduction ...................................................................................... 5

SFM 2015 Annual Report Review .................................................... 7

Planning Process Review ................................................................ 9

Public Consultation Process Review ............................................. 10

FML Area SFM Committee ............................................................... 11

Status of Performance Indicators ................................................... 12

Update to SFM Plan Indicators…………………………………………12

Review of 2015 Performance Framework ....................................... 12

CSA SFM Performance Indicator Staff Champions ........................ 12

Summary of Indicator Assessment ................................................. 14

Continual Improvement………………………………………………….16

Appendix I

DFA Indicator Performance Reports for 2015 ................................ 17

Appendix II

Public Issues and Concerns Table. ................................................. 40

Appendix III

Environmental Incidents in 2015 ..................................................... 47

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Executive Summary

Canadian Kraft Paper’s Sustainable Forest Management (SFM) Plan for Manitoba’s Forest Management Licence (FML) Area No.2 first received Canadian Standards Association (CSA) certification in October 2004. The SFM plan was revised in 2014 to meet the revised CSA standard Z809-08. Forest management on the FML Area No. 2 is authorized under the Manitoba Environment Act - Environment Act Licence No. 2302 E R (extended to December 31, 2019). Under that Licence, the existing Forest Management Plan (Repap Manitoba Inc.1997-2009 Forest Management Plan) has been extended to December 31, 2024. Additional forest management activities and obligations are outlined under the Forest Management Licence Agreement for FML Area No. 2, and the Forest Act. A key component of the SFM plan is the Environmental Management System (EMS). The EMS ensures activities on the FML adhere to the “plan-do-check-act” model, which drives continual improvement. The Canadian Kraft Paper Staff SFM/EMS Committee met three times during 2015 to review any incidents that trigger opportunities for improvement, and follow the EMS to ensure we improve in preventing or managing negative impacts from operations. The Sustainable Forest Management Committee (SFMC) met four times in 2015 to discuss different aspects of the SFM Plan, and undertake educational presentations and tours. Progress of the SFM plan is reviewed with the SFMC and reported annually in this report. The SFMC is satisfied with the content and conduct of meetings as evidenced in the Committee feedback surveys. The CSA Z809-08 certification requires a third party external audit every second year. The SFM plan was audited by SAI Global in 2015. Highlights from 2015 include:

In-block road and landing development remains less than 5% of productive land in each forest section with an average of 3.25%

All Weather Roads below target of 0.5% of total productive forest land at 0.0202 %

As part of the Woodland Caribou habitat strategy, the balance of decommissioning of the Naosap road was completed.

Greater than 75% of the financial value of signed contracts to be conducted on the DFA were held by local contractors

Issues for 2015:

Seedlings planted in the appropriate seed zone was met with the use of variance (government approval). Forest fires impacted operations and required appropriate variance as a result.

Renewal within three years of harvest was met with the use of variance (within 5 years). Winter harvest area will be planted in 5th year – remote access, delay in removal of woodpiles.

Coarse Woody Debris summary report not completed by December 31, 2015

One term staff person did not receive Aboriginal Awareness training and SARA, MESA lists.

Corrective actions and/or review of indicators are being undertaken to correct the issues. Documents relating to the SFM activities on the FML Area are available on the website at www.tolkomanitoba.com.

http://www.tolkomanitoba.com/

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Introduction The purpose of this 2015 Sustainable Forest Management (SFM) Annual Report is to document the processes and activities undertaken in fulfillment of commitments made in the Tolko SFM Plan for Forest Management Licence (FML) Area No. 2. It documents the progress made towards the SFM objectives for the Defined Forest Area (DFA) by measuring the targets established for the indicators. The SFM Plan and ongoing implementation processes have been put into place by Canadian Kraft Paper Industries Ltd. (also referenced as CKP or the Company) in order to demonstrate to the public, government regulators and to its customers, the Company’s commitment to SFM and to public participation in its planning processes. As required by the CSA Z809-08 Standard, Canadian Kraft Paper has prepared this 2015 Annual Report to document progress made relevant to the SFM Plan for the FML Area No. 2 DFA, and to provide a mechanism to update the plan as new information is realized. In 2012 the SFM Plan was prepared to meet the requirements of the Canadian Standards Association (CSA) Z809-08 Standard and to document the public participation, SFM performance framework, and SFM system that has now been set into place and is being maintained for FML Area No. 2. Canadian Kraft Paper achieved certification to the CSA Z809-08 Standard, which is a Canadian national and an internationally recognized standard for SFM, through a certification audit held to assess the SFM Plan for the FML Area No. 2 in October, 2012. Subsequent to receiving certification, this is the third Annual Report under the (CSA) Z809-08 Standard. During 2014, two indicators were revised and the changes amended to the SFM plan. The amended plan was posted to www.tolkomanitoba.com. The report focuses on progress made in terms of the performance framework established in the SFM Plan. It provides an overall review of progress made, successes achieved, shortcomings that have been identified, emerging issues, future plans and corrective actions that will be required in order to maintain the Sustainable Management Standard required by the CSA Z809-08 standard for FML Area No. 2. For a description of the FML Area No. 2 Defined Forest Area (DFA) to which this 2015 Annual SFM Report pertains, and for details on the SFM system being utilized by Canadian Kraft Paper on FML Area No. 2, the reader is directed to the SFM Plan for the DFA which is available on the website at www.tolkomanitoba.com. Other reports and publications pertaining to the SFM system and forest management processes on FML Area No. 2 are also available at the website. In November 2008 the company was notified that the Grass River Park was withdrawn from FML Area No.2; therefore, it is no longer part of the DFA under the Canadian Kraft Paper’s SFM Plan. For an updated map of the DFA go www.tolkomanitoba.com . As the sole Forest Management Licence holder for FML Area No. 2 DFA, Canadian Kraft Paper continues to take responsibility for the lead role in maintaining the SFM System for the DFA. The Company continues to work closely on an ongoing basis with the




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various interested parties in planning and implementing sustainable forest management on the DFA. This continues to build on past experiences and developed partnerships, including the development process for the SFM Plan itself. In addition to this SFM Annual Report, the Company is responsible to prepare and submit a Forest Management Annual Report to Manitoba Sustainable Development (MSD) to follow-up on all forest management activities undertaken on the DFA as compared to the proposals of the related Operating Plan (OP). As reported in the SFM Plan, the SFM system for FML Area No. 2 is closely aligned with the Canadian Kraft Paper ISO 14001 registered Environmental Management System (EMS) for woodlands activities on the DFA. The EMS was originally registered as meeting the ISO 14001 standards as of January 21, 2003 and has continued its ISO registration to date. As part of the process improvement and adaptive management process Canadian Kraft Paper undertook a review and update of the EMS to more closely integrate the requirements of the CSA SFM Z809-08 within the EMS. The EMS scope and purpose is described in the EMS Manual (EMS Manual January 2012). The EMS provides supporting infrastructure for the SFM system for the DFA. The roles and responsibilities of the Company and its staff in terms of implementing and maintenance of the EMS is outlined in the EMS Manual, the EMS Standard Operating Procedures, the EMS Training Matrix and the associated EMS Forms (Contractor Orientation Record (Corp. EMS Form WL001), Project Tailgate Checklist (MB EMS Form WL101) and Operations Inspection Form (MB EMS Form WL201). The use of operational controls in the EMS is guided by the Canadian Kraft Paper EMS Significant Aspect Operational Control Matrix. In 2009 the Forestry Superintendent (formerly known as Divisional Forester) became the EMS and the SFM Champion responsible for implementation of the EMS and SFM on FML Area No. 2. In fulfilling these roles the Forestry Superintendent has coordination responsibilities with respect to the Canadian Kraft Paper EMS and achievement of SFM at the Manitoba operation, particularly relating to liaison with the FML Area Sustainable Forest Management Committee (SFMC). The Forestry Superintendent became the chairperson for the EMS/SFM Canadian Kraft Paper Staff Committee, to provide for the local maintenance of the EMS and SFM Systems at Canadian Kraft Paper on an ongoing basis. This committee reviews SOPs annually, develops action plans to address corrective action for any identified non-conformances, schedules training sessions, reviews and makes recommendations to senior management of any suggestions for process improvement brought forward and provides for follow-up with appropriate staff on any outstanding tasks for corrective action identified in the EMS. The scope of the EMS/SFM Committee at Canadian Kraft Paper also includes ongoing review requirements for the SFM process in support of the SFM Champion. This EMS/SFM Committee meets regularly to address ongoing requirements, with minutes recorded and posted on the Company Intranet for internal communication. In 2015 the committee met four times. In addition, Superintendent(s), the Woodlands Manager and the Corporate Sustainability Manager also take leading roles in responsibility for ensuring the EMS and SFM is maintained company-wide. All Canadian Kraft Paper employees take part in fulfillment of responsibilities to ensure that all legislation and regulations are followed

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and that Standard Operating Procedures (SOPs) contained within the EMS are adhered to. All employees are responsible to actively participate in environmental management in the fulfillment of the Company’s Environmental Policy. This work has included roles in the monitoring and reporting of indicators as reported in this 2015 SFM Annual Report. As described in the SFM Plan, Canadian Kraft Paper contractors and DFA workers, Manitoba Government staff, timber sale operators on the DFA, and other stakeholders continue to play a role in the implementation of SFM for FML Area No. 2. This 2015 SFM Annual Report will be made available to the public via the Canadian Kraft Paper website at www.tolkomanitoba.com.

SFM 2015 ANNUAL REPORT REVIEW The SFMC met on November 3, 2016 and reviewed the individual indicator reports for 2015. Four indicators were identified as not meeting their targets. Some corrective action concepts were discussed. Formal Corrective Actions will be presented at the February 2017 meeting. There were no changes proposed to any indicators based on the 2015 Annual Report, however there were some questions and observations which will require follow up for the Committee. The following was identified:

1.1.1.1.1 – Target is 100% of all harvested areas reforested to the standard set by Manitoba Conservation Regeneration and Free to Grow requirements. A question was raised regarding whether the treatment of area older than the identified maximum age for Free to Grow survey constituted a requirement for variance or could be considered not meeting the indicator target.

1.2.1.1.1 – Question regarding why only one operating area for Woodland Caribou strategy. Factsheet to be reviewed at next meeting, will involve Operations Forester.

1.2.2.2.1 – Identified for review of indicator regarding Admin staff needing SARA and MESA training.

1.2.3.1.1 –Question – why “GMO” does that make sense? Factsheet to be reviewed at next meeting.

1.4.1.1.1 – PHFI – can that go into a table for reporting. Need more clear information.

1.4.2.1.2 – Heritage Resource – Question regarding are Elders consulted for knowledge. Also review against bear den locations?

2.2.1.1.1 – Roads – review “closure” against “decommissioning? Also percentage of landbase – show trend for previous years.

2.2.1.1.2 – Question regarding % of threshold for change. Also review target B for more concise/clear wording

2.2.1.1.3 – Review and revise the variance

4.1.1.1.1 – Graph or table should be added

4.1.1.1.3 – Vehicle idling – distribution site wide? Also strengthen the report, include link to video, or brief descriptions.

5.2.1.1.1 – Review and refine the definition of local (might be ok, summary sheet doesn’t perhaps capture the details)


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5.2.2.1.1 – Canadian Kraft Paper training – review reporting – also should strengthen the indicator with some metrics for expectation on training hours and/or people

5.2.2.1.3 – Review this indicator – the report doesn’t contain any metrics, does the factsheet?

Management Review The 2015 SFM Annual Report was reviewed by the Canadian Kraft Paper Woodlands Staff Group. Typography errors were found. It was also suggested that a list of completed operating areas is kept to track that road decommissioning is occurring in a timely manner. During 2015 there was no audit was undertaken for the SFM Plan. An internal audit was conducted in February of 2016.

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Planning Process Review Forest management planning for the DFA is undertaken within a framework provided by the requirements of The Forest Act and the FML Agreement between the Company and the Province of Manitoba. Planning for quota holders and special allocation holders operating within the Manitoba Timber Sale System is incorporated within the plans of the Company as per the FML Agreement. In addition to the planning requirements stipulated in The Forest Act and the FML Agreement, guidelines for forest management planning and operations have been produced by Manitoba Conservation (MC) which provide further requirements and guidance for planning on the DFA, including public participation requirements. The current approved Forest Management Plan (FMP), within which the Company conducts its forest management activities, covers the period of 1997 to 2009, inclusive. As part of the requirements of Manitoba legislation respecting forest management for the DFA, the FMP development included a full Environmental Impact Assessment (EIA), public hearings before the Manitoba Clean Environment Commission (CEC) and licensing under The Manitoba Environment Act. In January 2015, the Environment Act license was extended to December 31, 2019. The FMP has been extended to December 31, 2024, and the Terms of Reference have been agreed upon. The first Draft of the FMP will be submitted in October of 2022. The Canadian Kraft Paper Forest Management Planning and Operating Practices (FMPOPs) (Tolko Manitoba 1996) was produced in concert with the development of the FMP. The FMPOPs provided a detailed documentation of the planning and operating practices employed by the Company for its forest management activities on the DFA, including planning and public participation processes, road development, harvesting, forest renewal, monitoring and reporting. The FMPOPs continue to provide a source of support and guidance for the approaches to be taken by the Company in mitigation of non-timber values for FML Area No. 2. The FMPOPs are periodically reviewed to incorporate revisions to existing processes and to document new guidelines identified as required to meet SFM requirements for implementation of the SFM performance framework. Sections of the guide were updated in 2012 and continue to be reviewed periodically. The current FMPOP operator’s guide is distributed with all contracts in 2015.

The Company submitted the 2015/2016 Operating Plan (OP) for approval in March of 2015. The OP submission covers operations during the period June 1, 2015- May 31, 2017. As per the requirements of the Manitoba Conservation Guideline - Planning and Submission Requirements for Operating Plans, the 2015/2016 OP provides a detailed plan the 2015/2016 and 2016/2017 “plan years”. In addition, projections of access development and harvesting operating areas are identified for the period 2017/2018,

2018/2019, and 2019/2020. Further to the public participation process undertaken in development of the FMP, ongoing public review was undertaken in 2015 in preparation of the 2015/2016 OP with a focus on the proposed operations planned and forecasted

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for the 2015/2016 and 2016/2017 period. Public input received on the forecasted operations, particularly for road locations, classification and timing and for harvesting proposals, allowed the Company to refine the proposals as required. The approved 2015/2016 OP for the DFA was made available for viewing on the Company’s website at www.tolkomanitoba.com . Throughout 2015 work permit applications were submitted to MC for all operations prior to commencement of work in the field. This provided a final opportunity for any needed amendment to conditions or refinement of AOP proposals in addition to any final mitigation requirements for each site. The work permits, approved by the MC Integrated Resource Management Team (IRMT) for the Region, are signed by either the appropriate Company representative for the area or by the respective Timber Sale Operator.

Public Consultation Process Review General The Company has developed and utilized a variety of both informal and formal public consultation mechanisms over the past number of years as an integral component of the forest management planning process for FML Area No. 2. Various processes have been used in order to accommodate the wide range of public knowledge, different interests and varying levels of involvement desired by participants and to reflect community values and to address site specific concerns of individuals and groups. In 2015 the Company promoted public awareness of forestry through Company participation in a variety of functions including presentations to specific user groups, public schools and community colleges; forestry field tours to interested groups; and informal user group/individual resource stakeholder consultation. Some of these engagements were planned and formal, others were opportunistic, informal, and on an ad hoc basis. Collected information is used for site specific mitigation plans as applicable, and creates the opportunity for reciprocal communication to occur throughout 2015 for refinement of 2015/2016 operations and for use in the development of the 2015/2016 and 2016/2017 OPs. The 2015 OP public information meetings for the 2015/2016 Plan occurred between January and March and allowed time for revision and refinement of the Plan prior to submission of the OP to the Manitoba Government in March 2015. Findings of these meetings, including minutes taken, a listing of all attendees, and a summary of issues and concerns raised, was documented and summarized for follow-up of any pertinent information in the further development of the 2015/2016 OP. The minutes from these meetings were also included as an appendix to the 2015/2016 OP.


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FML Area SFM Committee (SFMC) The CSA SFM Committee and the 2 existing Forest Resource Advisory Committees (FRAC) on FML Area No. 2, were merged to create a single FML Area committee. The FML Area committee is the ongoing formal public consultation mechanism being utilized for the continuing implementation of the SFM Plan for the DFA. For a detailed description of the process for the formation and functioning of the SFMC and predecessor SFM Advisory Committee/2 FRAC committees, the reader is directed to the SFM Plan. The primary role of the SFMC is the review of the company’s performance to the SFM Plan as reported through the SFM Plan indicators. It also has a significant role in making recommendations on ways and means to improve the plan for the DFA. This is an adaptive management and continual improvement model for the area. At the same time, it is useful for this same committee to be involved in the other tasks of FMP and OP review and other public participation roles in forest management on the DFA in order to assist in discussion and resolution of any issues relevant to SFM on the DFA and to maximize the learning and effectiveness of the committee.

The SFM Committee met four times in 2015.

January 21

May 27

September 17

November 5 – Field tour – Kraft paper mill

In May, the SFM Committee attended the Contractor meeting held annually. An AOP presentation was conducted. A presentation from Tolko’s Corporate division from Vernon BC was made which incorporated a review of BC operations and discussion on pine beetle management. Review of the CSA Z809 standard revisions was conducted. A presentation on the Jack pine budworm outbreak in the Grand Rapids area was conducted with information regarding pest management. A tour of the Kraft Paper Mill was conducted for the group in November. Three community committees are in existence to discuss local issues. The communities are Snow Lake, Sherridon and Wanless. None of these committees met in 2015.

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Status of Performance Indicators Updates to SFM Plan Indicators

As a result of the scheduled revision of the CSA standard, a major revision of the plan was undertaken and finalized in 2012. The revision include evaluating the existing indicators which resulting in some indicators being removed or replaced. Also new indicators were developed to meet the requirement for “core indicators” which is part of the 2008 standard. No revisions to indicators occurred in 2015

Review of 2015 Performance Framework The performance framework for the SFM System being implemented for the DFA consists of values, objectives, indicators and targets to address each of the CSA SFM Critical Elements associated with the CSA SFM Z809-08 Standard. This framework was developed through the public participation process associated with the development of the SFM Plan, led by the work of the SFMC for the values in place across the DFA (described in further detail in the SFM Plan). For each of the performance indicators in the performance framework, a Woodlands staff member (Champion) was assigned responsibility to oversee follow-up and to ensure that monitoring, measurement and reporting is undertaken as required. The following table lists the indicators and the associated Champion.

CSA SFM Performance Indicator Staff Champions

Indicator champion Description of Indicator

1.1.1.1.1 Paul Chapman Forest cover composition of reforested cutover areas


1.1.3.1.1 Joyce Totte Harvest levels in cubic meters as compared to the AAC

1.1.4.1.1 Travis Romanchuk Abundance of residual stand structure

1.1.4.1.2 Paul Chapman Amount and distribution of coarse woody debris

1.2.1.1.1 Mike Paddock Woodland caribou habitat for priority Herds

1.2.2.1.1 Mike Paddock Woodland caribou habitat for priority Herds

1.2.2.2.1 Paul Chapman Staff awareness of current SARA and MESA lists for DFA

1.2.3.1.1 Paul Chapman Proportion of regeneration comprised of native species


1.3.1.1.1 Paul Chapman Percentage of areas planted with stock from the same or approved government

seed zone

1.4.1.1.1 Mike Paddock Percentage of harvest blocks subject to Pre-harvest Forest Investigation (PHFI)

surveys

1.4.1.1.2 A/B Mike Paddock Protected Areas and ASIs recognized in forest management plans (FMP and

AOP)


surveys

1.4.2.2.1 Mike Paddock Proposed all-weather roads reviewed for the potential for the occurrence of

heritage resources

2.1.1.1.1 Paul Chapman Reforestation success

2.2.1.1.1 A Shayne Elliott Limit extent and duration of in-block seasonal roads and landings

2.2.1.1.1 B Paul Chapman Limit extent and duration of in-block seasonal roads and landings

2.2.1.1.1 C Wally Quiring Limit extent and duration of in-block seasonal roads and landings

2.2.1.1.2 A Shayne Elliott Amount of area in all-weather roads (Categories 1 & 2) in place at any given

time

2.2.1.1.2 B Wally Quiring Amount of area in all-weather roads (Categories 1 & 2) in place at any given

time

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2.2.1.1.3 Paul Chapman Harvest blocks are regenerated as soon as possible

2.2.1.1.4 Mike Paddock Provision of information on insects and disease to MC for the DFA

2.2.1.1.5 Wally Quiring Company caused forest fires

2.2.1.1.6 Paul Chapman Recurrence mistletoe infections in regenerating stands






time


time


3.1.1.1.4 Wally Quiring

Adherence to work permit conditions and Canadian Kraft Paper SOPs guiding Canadian Kraft Paper and contractor forestry operations on the DFA including those pertaining to rutting, protection of non-timber values, and for operations

adjacent to watercourses including buffers and the handling and storage of fuels, lubricants and herbicides

3.1.2.1.1 Paul Chapman Amount and distribution of coarse woody debris

3.2.1.1.1 Paul Chapman Proportion of watershed or water management areas with recent stand-

replacing disturbance




3.2.1.1.3 Wally Quiring Condition of stream crossings and roadways in terms of erosion control

4.1.1.1.1 Paul Chapman Net carbon uptake

4.1.1.1.2 Paul Chapman Reforestation success

4.1.1.1.3 Greg Tavener Level of awareness of Woodlands staff of effects of unnecessary vehicle idling


time


time






5.1.1.1.2 Mike Paddock

Documentation of public consultation process followed, communities consulted, concerns raised and strategies/mitigation developed to address concerns of local Aboriginal and other communities and non-timber resource users within forest management plans for the DFA (FMP, AOP, Road Management Plans)


surveys






5.1.3.1.1 Mike Paddock Proposed all-weather roads reviewed for the potential for the occurrence of

heritage resources

5.1.4.1.1 A/B Mike Paddock Protected Areas and ASIs recognized in forest management plans (FMP and

AOP)

5.2.1.1.1 Joyce Totte Extent of local involvement in forest operations in the DFA

5.2.2.1.1 Paul Chapman Canadian Kraft Paper understanding and practices based upon current and

emerging knowledge and recommended practices

5.2.2.1.2 Wally Quiring Training and awareness opportunities for contractors on the DFA

5.2.2.1.3 Joyce Totte Level of investment in training and skills development




5.2.4.1.2 Paul Chapman Evidence of efforts to promote capacity development and meaningful

participation in general

6.1.1.1.1 Paul Chapman Percentage of Woodlands staff who have participated in Aboriginal, treaty rights

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and cultural awareness sessions










Evidence that the organization has co-operated with other forest-dependent businesses, forest users, and the local community to strengthen and diversify

the local economy



Evidence of co-operation with DFA-related workers and their unions to improve and enhance safety standards, procedures, and outcomes in all DFA-related

workplaces and affected communities


Evidence of co-operation with DFA-related workers and their unions to improve and enhance safety standards, procedures, and outcomes in all DFA-related

workplaces and affected communities.

6.3.3.1.1 Wally Quiring Evidence that a worker safety program has been implemented and is

periodically reviewed and improved.

6.3.3.1.2 Wally Quiring Evidence that a worker safety program has been implemented and is

periodically reviewed and improved.

6.4.1.1.1 Paul Chapman Degree of satisfaction with the public participation component of the planning

process

6.4.2.1.1 Joyce Totte Evidence of efforts to promote capacity development and meaningful

participation in general

6.4.3.1.1 Wally Quiring Evidence of efforts to promote capacity development and meaningful

participation for Aboriginal communities

6.5.1.1.1 Paul Chapman Number of people reached through educational outreach

6.5.2.1.1 Paul Chapman Availability of summary information on issues of concern to the public

6.5.3.1.1 Wally Quiring Training and awareness opportunities for contractors on the DFA

6.5.3.1.2 Paul Chapman Canadian Kraft Paper understanding and practices based upon current and

emerging knowledge and recommended practices

6.5.3.1.3 Paul Chapman Training members of the Forest Resource Advisory Committees (FRAC) and

the SFM Committee

6.5.3.2.1 Joyce Totte Access of the broad public to information on SFM, FMP and AOP plans and

related public participation processes

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Summary of Indicator Assessment As indicated in the SFM Plan, this 2015 Annual Report will be prepared and made available to the public describing the Company’s progress in meeting and maintaining the SFM requirements. This report provides the opportunity for the Company to communicate how the policy commitments are being implemented and how continual improvement is being made. From the assessment of the performance indicators the following discussion summarizes findings in terms of:

Emerging issues being encountered;

Future plans;

Corrective actions required; and

Management commitments for moving forward. The 2015 Annual Report indicator assessments are based on the calendar year (Jan. 1, 2015 to Dec 31, 2015) with the exception of the following:

Assessed from June 1, 2015 to May 31, 2016 o Abundance of residual stand structure – individual standing tree surveys

Assessed from June 1, 2014 to May 31, 2015 o Harvest levels in cubic meters as compared to AAC. o Percentage of proposed harvest blocks subject to pre-harvest surveys

(PHFI).

Assessed from June 1, 2013 to May 31, 2014 o Abundance of residual stand structure – residual patches o Extent and duration of in-block seasonal roads and landings.

Of the 84 targets:

3 were not met

6 were met using the variance

75 were met outright

Highlights from 2015 include:

In-block road and landing development remains less than 5% of productive land in each forest section with an average of 3.25%

All Weather Roads below target of 0.5% of total productive forest land at 0.0202 %

As part of the Woodland Caribou habitat strategy, the balance of decommissioning of the Naosap road was completed.

Greater than 75% of the financial value of signed contracts to be conducted on the DFA were held by local contractors

Issues for 2015:

Seedlings planted in the appropriate seed zone was met with the use of variance

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(government approval). Forest fires impacted operations and required appropriate variance as a result.

Renewal within three years of harvest was met with the use of variance (within 5 years). Winter harvest area will be planted in 5th year – remote access, delay in removal of woodpiles.

Coarse Woody Debris summary report not completed by December 31, 2015

One term staff person did not receive Aboriginal Awareness training and SARA, MESA lists.

Portions of this 2015 SFM Annual Report were reviewed with the SFM Committee to incorporate input prior to the report being finalized. Findings of this Annual Report will be reviewed at the Canadian Kraft Paper Woodlands Contractor Meetings. The final report will be available on www.tolkomanitoba.com.

Continual Improvement:

Migratory Birds – In response to increasing awareness in the forest industry of the Migratory Bird Convention Act, the company developed a “best management practices” guideline to nesting birds to be used by primarily log contractors using off road equipment in the forest. This guide was included in the annual contractor meeting.

Increased public awareness – at the September meeting of the SFMC the topic of increasing education and awareness of the public was discussed. Particularly, discussion revolved around interacting with middle schools. A presentation and field trip was conducted in late September as part of National Forest Week with a local grade 6 group. Approximately 120 students participated with 5 teachers and 4 CKP staff. In follow up discussion at the November SFMC meeting, the field trip was so well received that it was identified that an effort should be made by the company to capture these opportunities outside of The Pas for greater exposure.


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Appendix I

DFA Indicator Performance Reports for 2015

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Indicator 1.1.1.1.1 1.1.2.1.1 1.2.3.1.2 2.1.1.1.1 4.1.1.1.2 5.1.2.1.2

Forest cover composition of reforested cutover areas

Target: 100% of all harvested areas to be reforested to the standards set in the MC Regeneration and Free-to-Grow requirements

2015 Status:

Not Met

Progress Reported:

In 2015 the company continued using in-house staff and summer employees to do free to grow surveys to the provincial standard. All workers on the program were tested by CWS staff and received certification to conduct FTG surveys. 3,916 ha were surveyed in 2015, of which 2,646 ha achieved FTG-softwood, and 149 ha were FTG-mixedwood standard. A further 184 ha met the NFTG-mixedwood or softwood standard which indicates a reduction in the density of hardwood stems will result in a FTG block. Herbicide treatments were scheduled for all of those blocks. 64 ha met the N standard (hardwood dominated mixed wood) and are scheduled for treatment to bring up softwood stocking and then follow up treatments to maintain softwood or mixedwood status. 200 ha were classified as “Regeneration”, indicating a presence of softwood, but not meeting the standard potentially because of poor spacing and height limitations. These are scheduled for herbicide and then follow up survey. 673 ha were not sufficiently regenerated (NSR). Review indicated that roughly 337 ha are areas severely impacted by western gall rust and weevil. We will seek a release of obligation on these sites. The remaining areas will be reviewed for appropriate treatment. This will include a combination of planting and herbicide release over a period of years. In 2015 the company did not conduct aerial herbicide treatments. Availability of staff for program development and contract supervision were limiting factors in that decision. The 2016 plan is budgeted for twice the normal amount of treatment areas of competition to release softwood blocks that were not FTG.

Indicator 1.1.3.1.1 2.2.2.1.1 5.1.1.1.1

Harvest levels in cubic meters as compared to the AAC

Target: Harvest levels do not exceed Government approved AAC based on 5-year cut control policy. (amendment 2014)

2015 Status:

Met

Progress Reported:

None of the 5-year cut control volumes were exceeded during the end of the 2010-2015 cut control period. The closest FMU was 56 at 91%. This period spanned from June 1, 2010 to March 31, 2015. No AAC levels were exceeded in the 2014-15 operating year. The closest FMU was 56 at 82% of the AAC.

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FMU

2014-15 Harvest

2014-15 AAC

% of AAC

2010-15 Cut

Control Harvest

2010-15 Cut Control

% 2010-15 Cut

Control

12 0 10,710 0% 17,901 53,550 33%

47 0 12,041 0% 25,497 60,205 42%

51 11,667 68,448 17% 85,576 342,240 25%

52 654 17,960 4% 64,724 107,760 60%

53 76,798 134,600 57% 358,034 673,000 53%

54 4,438 7,060 63% 11,526 35,300 33%

55 20,935 26,300 80% 101,785 157,800 65%

56 54,871 67,250 82% 332,747 364,163 91%

67 147,178 335,216 44% 608,533 1,569,545 39%

68 0 92,717 0% 0 463,585 0%

69 0 109,286 0% 0 546,430 0%

83 18,317 123,532 15% 18,317 617,660 3%

84 0 113,490 0% 0 567,450 0%

85 33,891 78,735 43% 45,629 393,675 12%

87 818 74,997 1% 818 374,985 0%

89 0 21,482 0% 0 107,410 0%

INCO 0 26,715 0% 8,883 133,575 7%

Indicator 1.1.4.1.1 1.1.4.1.2

Abundance of residual stand structure Amount and Distribution of coarse woody debris

Target: 1.1.4.1.1 At least 5 standing trees (alive and dead) per hectare retained across harvested areas on a forest section basis. Harvest modifications for insect or disease management requirements potentially impacting retention results will be documented. 1.1.4.1.2 Surveying 10 blocks annually for 3 years with a summary report by December 31, 2015

2015 Status:

Residual stand structure target met. CWD Summary report not completed by December 31, 2015.

Progress Reported:

1.1.4.1.1 Standing tree surveys Operating year 2015/2016- 97.7% of blocks surveyed- within variance DFA average =102.5 trees per hectare. One block in Nelson River was not surveyed. High rock FS average=43.87 Saskatchewan River FS= 117.31 Nelson River FS= 108.4 Patches Operating year 2013/2014 DFA average =32.4 patches per block High rock FS average= 56.2 Saskatchewan River FS= 20.0 Interlake FS=17 1.1.4.1.2 Surveys complete. Summary report not completed by December 31, 2015. Draft report expected by Nov 30, 2016.

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Indicator 1.1.4.1.2 3.1.2.1.1

Amount and distribution of coarse woody debris

Target: Surveying 10 blocks annually for 3 years with a summary report by December 31, 2015

2015 Status:

Not Met

Progress Reported:

2015 surveys were completed. Summary report not yet completed. Expected draft for November 30, 2016.

Indicator 1.2.1.1.1 1.2.2.1.1

Woodland Caribou Habitat for priority herds

Target: Develop and Implement a forest management strategy for one or more operating areas within priority woodland caribou range within the DFA.

2015 Status:

Met

Progress Reported:

The Woodland Caribou (Boreal population) is listed as a threatened species under Schedule 1 of the federal Species At Risk Act (SARA). A strategy designed by Tolko forestry staff for the Kississing-Naosap herd that was implemented in 1999 as an integral part of harvesting activities occurring in the Naosap Operating Area was completed with the conclusion of the 2006 harvest. The portion of the Naosap Road beyond the Sewap Creek Bridge was permanently decommissioned in 2007. The portion of the road from the origin at the Sherridon Road to the Sewap Creek Bridge has been temporarily closed since 2009. The Province re-opened most of the Naosap Road in 2010 to fight the Peterson fire and then re-closed it after. Late in 2013 a decommissioning strategy was submitted to CONWS for the portion of the Naosap Road between the origin at the Sherridon Road and just past the Sewap Bridge at km 12.3. Removal of the Sewap Bridge was approved and permitted before the end of 2013 while discussion on the balance of the strategy was ongoing into 2014. The Sewap Bridge was removed in January, 2014. The decommissioning strategy for the balance of the road was finalized, approved, permitted and work was completed in 2015. The Peterson – Rodwalsh strategy was finalized in January 2010 and harvest commenced during the early part of 2010. Portions of 2 blocks were harvested before spring and most of the area including much of the leave area in the Naosap strategy burnt in June 2010. The loss of this area displaced the caribou that had been using the area and stimulated additional collaring on these animals to determine their reaction to the burn. In 2012 the animals seemed to abandon the burn and start using adjacent green areas more extensively than they had been previously which raised concerns about earlier approved timber harvest areas. During 2013 additional mitigation measures in the form of modification and/or revocation of previously agreed to mitigation were implemented to accommodate increased caribou activity in proposed harvest areas by displaced caribou. Tolko and Manitoba Conservation staff continued to meet approximately every 2 to 3 months in “pre-mitigation” during which general discussion occurred around several potential operating areas that are known to be used by caribou and, in many cases, have collared individuals generating data. These would be classified as preliminary, in some cases progressing into intermediate discussions in the formulation of a forest management strategy within woodland caribou range and these included the Mossy Portage (Bog range), Duval Road (Kississing and Naosap-Reed ranges) and Dickstone Road (mainly Wheadon range but some overlapping portions of Wimapedi-Wapisu and Naosap-Reed) areas.

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There were operations ongoing throughout the 2014-15 year in the North Kississing Road area which are in the Kississing and Naosap – Reed ranges. Harvest records for 2014-15 operating year were compared to GPS block shapes produced from approved work permit photos. A total of 361.57 hectares were harvested in 5 cutblocks (ST-28 was mostly included in the analysis for the 2014 report), 345.01 hectares showed up within the GPS block boundaries, 16.56 hectares (4.58%) show outside the GPS block boundaries. None of the harvest is close to the caribou corridor between HO-11/18N/19 and HO-12/18S/27. The harvested areas outside of the approved block boundary are composed mainly of access corridors in between the established road and the blocks or between approved patches which are necessary and expected and also some narrow slivers that show up just outside of the boundaries that may be attributable to the potential error factors discussed below. The harvest data used in this analysis was created by delineating the harvest area on digital rectified imagery. There is potential error in the interpretation of what is seen on-screen i.e. sometimes natural openings or previously cleared areas appear to be, and are interpreted as, new harvest area. There is also some minimal potential error in the geographic accuracy of the imagery as well as with the GPS receiver in the feller buncher. In 2015 Tolko continued to be a member of the Northwest Region Caribou Management Committee and participated in the annual meeting. Tolko signed on to the Canadian Boreal Forest Agreement in 2010 and remained signatory through 2015, participating in Regional Working Group activities throughout the year.

Indicator 1.2.2.2.1 Staff awareness of current SARA and MESA lists for DFA

Target: 100% of Tolko Woodlands staff to undertake review of SARA and MESA lists annually

2015 Status:

Not Met

Progress Reported:

All permanent staff reviewed SARA and MESA training materials in May of 2015. All term summer field staff reviewed SARA during training in May 2015. The term summer administrative assistant was not trained. One term staff hire in November of 2015 did not take SARA training until May of 2016 when the field season was beginning with the other 2016 term staff. Target not met.

Indicator 1.2.3.1.1 1.3.1.1.1

Proportion of regeneration comprised of native species. Percentage of areas planted with stock from the same or approved government seed zone

Target: 100% of planted areas utilize non- genetically modified stock from the same or approved seed zone

2015 Status:

Met

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Progress Reported:

Tolko is responsible for seed collection and all seeds to date have been collected from wild stands or conventional (NON-GMO) seed orchards. Forest Fires in the Moose Lake area during the 2015 treeplant season forced planting operations to plant current crop Seed Zone 5 seedlings in Seed Zone 6. Cutblock ST-28 (Zone 6) – planted (with MC approval) approximately 99 hectares with Black Spruce 310/313B Zone 5 seedlings in Zone 6 (Estimated at 170,000 seedlings). Later in the season, it was necessary to move Zone 6 seedlings down into Zone 5 for planting because of a lack of area in Zone 6. Cutblock TM-205 (Zone 5) – planted (with MC approval) approximately 64 hectares with Black Spruce 310/313B Zone 6 seedlings in Zone 5 (Estimated at 82,000 seedlings). The company is in compliance with the indicator, the variance was used with approval from MC.

Indicator 1.4.1.1.1 1.4.2.1.1 5.1.1.1.3

Percentage of harvest blocks subject to Pre-harvest Forest Investigation (PHFI) surveys

Target: 95% of harvest blocks will be subject to a PHFI survey prior to commencement of harvest

2015 Status:

Met

Progress Reported:

Twenty eight (28) blocks were harvested during the 2014-15 operating year. One block, QFG-1, was harvested by a quota holder where a timber sale was issued by Manitoba Conservation and Water Stewardship prior to commencing harvest. As such, this portion of the block is not subjected to a PHFI survey. Tolko surveyed the remainder of the block in May of 2015. One block, AB-8, was surveyed in 2006 with harvest commencing in the 2013-14 operating year. The harvest for this reporting period was additional chipper-wood identified outside of the original PHFI area. Manitoba Conservation and Water Stewardship approved harvest for this addition via work permit extension NWL-271. The East Arm Road ROW is included as a block in the block list but road ROWs do not typically receive a formal PHFI survey by themselves. They are surveyed as a portion of the harvest block they pass through which happened in this case so the road ROW was not included in the tally. Only 2.36 ha was cut during this period. Depending on the interpretation of these two blocks, a total of 26 of 28 (93%) to 28 of 28 (100%) blocks were subject to PHFI survey. PHFI on 27 of 28 (96%) or 28 of 28 (100%) of the blocks would satisfy the 95% target. In any case, both these blocks were approved by Manitoba Conservation and Water Stewardship prior to harvest which is within variance of this indicator. Thirty-five (35) blocks were harvested during the 2015-16 operating year. All blocks were subject to a PHFI survey prior to harvest. However, a 7 ha portion of JO-91 on the south side of the South Jonas road was not subject to a PHFI survey. This block was a quota holder block and that portion was approved for harvest by the NE region office of Manitoba Conservation and Water

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Stewardship prior to harvest. The remaining 23 ha portion of the block on the north side of the road was subject to a PHFI survey prior to harvest. Target met.

Indicator 1.4.1.1.2 5.1.4.1.1

Protected Areas recognized in forest management plans (FMP and AOP)

Target: (A) No harvesting proposed in recognized Protected Areas (B) Any harvesting proposed for ASIs to require specific approval of AOP and/or work permits for the proposed harvest area from the IRMT

2015 Status:

Met

Progress Reported:

The Protected Areas and the ASIs are treated separately in recognition of the difference in their status in terms of allowance for forest management activities in the Province of Manitoba. As such the indicator now has two separate targets with associated variances, Target (A) relating to protected areas, and Target (B) relating to ASI areas. Protected Areas will continue to have no planned harvesting allowed. ASI areas will have harvesting planned. Harvesting in any ASI will only occur with OP and/or work permit approval from the I.R.M.T. All known ASI boundaries are provided by Manitoba Conservation and Water Stewardship (CWS) and will be indicated on the Operating Plan (OP) maps. The current OP maps show boundaries of all known protected areas and ASIs indicating Provincial Parks, Park Reserves, Ecological Reserves and proposed ecological reserves. (A) Review of the 2013-15 OP conducted for the 2013 report indicated no harvest was proposed on the DFA in any recognized Protected Area at that time. This OP was in effect until May 31, 2015. Review of the 2015-2017 OP for this report indicated no harvest was proposed on the DFA in any recognized Protected Area. (B) Review of the 2014-15 harvest layer indicated no harvesting occurred on any known ASI or protected area. Review of the 2015-16 harvest layer indicated no harvesting occurred on any known ASI or protected area. Targets Met

Indicator 1.4.2.1.2 5.1.3.1.1

Proposed all-weather roads reviewed for the potential for the occurrence of heritage resources

Target: 100% of new all-weather roads to be reviewed for the potential for the presence of heritage resources

2015 Status:

Met

Progress Reported:

No roads were reviewed for heritage resource potential in 2015. There were no heritage resources encountered during 2015 PHFI surveys. No blocks which had a heritage site noted in the PHFI survey were harvested during the 2014-15 operating year. Tolko logging contractor encountered a headstone in BZ-44 in the Buzz Lake Operating Area, the feller buncher operator immediately backed out of the area and advised his supervisor who contacted the Tolko supervisor. Operations were suspended in the area, Historic Resources Branch (HRB) was contacted. Tolko worked with HRB and

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knowledgeable locals to determine that this was the Herb Lake Cemetery which we were aware was in the area but our information from locals and the HRB indicated it was 230 m away from where we found it and 150 m outside of the harvest block boundary. A manual bucking crew was employed to carefully remove the felled trees from within the cemetery and clean it up. Snow fence was set up around the exposed side to ensure no traffic would enter the area and a new buffer was established in the remaining timber on the actual location. The wood was supplied to a local trapper that was living nearby for firewood. HRB was advised to review the newer version of our Operating Plan, the 2015-2017 version. Tolko met with HRB staff in June to discuss the Operating Plan and supplied copies of several heritage assessments that had been performed in previous years as well as Standard Operating Procedures (SOPs) related to road construction.

Indicator 2.2.1.1.1 3.1.1.1.1 4.2.1.1.2

Limit extent and duration of in-block seasonal roads and landings

Target: (A) Limit extent of in-block roads and bulldozed landings and campsites to less than 5% of total harvested area each year (B) Reduce duration of in-block roads and bulldozed landings and campsites by actively prescribing and conducting a renewal action to compliment the block renewal strategy. (C) Reduce disturbance to regenerating and re-vegetating in-block roads through access control on class two roads leading in to them. Once harvest and renewal operations are completed in operating areas. Road closure to occur within three years following final harvest.

2015 Status:

Met

Progress Reported:

(A) % Areas occupied by Roads & Landings: (2014/2015 operating year) Saskatchewan River 2.75% High Rock 3.43% Nelson River 4.91% DFA Total= 3.25% (B) 44 cutblocks were treated in the renewal program in 2015. 41 were planted, 3 were scarified. All blocks had a renewal strategy that addressed roads and landings. In all cases, roads that were not required for future operations were planned for planting or scarification. In some cases, only shoulders and edges of roads are able to be planted because of density of road bed soils. (C) No roads were closed in 2014 as no areas reached final harvest stage. Temporary closure of the Namew Road was established at the end of the harvest season in 2015. Harvest was anticipated in the winter of 2016 in that area. The Hobbit Road was not closed, as active harvest continues in that area. Access to in-block roads was blocked with debris and earthen berms. Access to in-block roads in the Crossing Bay area were also blocked with earthen berms. Five roads were decommissioned in 2015 - Naosap (old) Naosap (new), Okaw, Okaw West, and Sugar Road.

Indicator 2.2.1.1.2 3.1.1.1.2 4.2.1.1.1

Amount of area in all-weather roads (Categories 1 & 2) in place at any given time

Target: (A) Total amount of Company Category 1 and 2 all-weather roadbed across the DFA not to exceed half of one percent (0.5%) of the total productive forest landbase (B) Road closure to occur within three years following final harvest

2015 Met

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Status:

Progress Reported:

(A) Class 1 & 2 roads occupy 0.0202 % of the total productive forest landbase in 2015 (B) No operating areas reached final harvest stage. The Namew Road was closed using debris and earthen berms at shut down of harvesting in spring 2015. Re-opened for fall/winter harvest commencement. The Hobbit Road remains open, with access to in-block roads blocked by debris and earthen berms. Harvest blocks on the Crossing Bay road had in-block roads blocked by debris and earthen berms. Legacy Roads for decommissioning: Three roads were decommissioned in 2015 – Naosap (old) Naosap (new) and Sugar Road. At the end of 2015 there were 5 roads not listed as decommissioned on the ledger that the harvest is complete on: • North Joey – harvest completed in 2013/14, scheduled for decommissioning in 2016 • Little Atik – partial closure, 1.2 km open, last harvested 2006/07, was an additional block there but a large portion of it was included in a more recent TLE selection and the remainder not worth accessing, have been discussing closure location with the Province over the last couple of years but haven’t settled on it yet, limited use, not high priority • Davidson – harvest completed in 2003, decommissioning has been discussed for several years but there are community issues with Moose Lake and Grand Rapids, no permit has been forthcoming from the Province to date • Talbot – harvest complete in 2004, road has been re-vegetating naturally, there are no high risk (from safety or environmental perspective) crossings on this road, some commercial activity (outfitting) taking place, mixed response from the community on road decommissioning, no permit from the Province • Spruce – harvest complete in 1996, tertiary road off Talbot Road, has been re-vegetating naturally, there are no high risk (from safety or environmental perspective) crossings on this road, potentially mis-categorized as Class 2 road, should have been a Class 3 road, would be effectively cut off with decommissioning of the Talbot Road

Indicator 2.2.1.1.3 3.1.1.1.3 4.2.1.1.3 5.1.2.1.1

Harvest blocks are regenerated as soon as possible

Target: 100% of all harvest blocks, for which the Company has renewal responsibility, receive a forest renewal treatment within 3 years of harvest

2015 Status:

Met with Variance

Progress Reported:

On the FML, 54 cutblocks were harvested in 2015. 4 were held as MC renewal Responsibility – quota holders. 2 blocks (DO-210, DO-214), did not meet the three year standard. Winter blocks with Limited Access. There were operational issues and the harvested roundwood remained in the block until winter 2016. Scheduled for plant in Spring 2017, which meets the 5 year requirement. These are smaller cutblocks totaling 25 ha.

Indicator 2.2.1.1.4

Provision of information on insects and disease to MC for the DFA

Target: Provide information annually to MC on insects and disease compiled from PHFI, Regeneration surveys and Free-to-Grow surveys

2015 Status:

Met

Progress PHFI survey reports are submitted with all harvest work permit requests. The 2014 PHFI

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Reported: health data was forwarded to the Forest Health Branch of MC on November 4th 2015. The 2015 survey data was not ready to be sent before the end of 2015. FTG Surveys were conducted on 68 complete blocks for a total of 3916.1 ha and 2138 plots during 2015. The data packages for 2007, 2009, 2011, and 2015 were submitted to CWS in the new ledger format on January 8th 2016. A Forestry Field Coordinator and 6 Forestry Assistants were trained in identification of forest insects and diseases on May 6th and May 7th 2015. The owner of Kaskittaw, and two Kaskittaw employees were trained in identification of FTG forest insects and diseases on September 14th 2015. Manuals for the PHFI and FTG survey outline the methodology of recording occurrences of any of the relevant insects and diseases.

Indicator 2.2.1.1.5

Company caused forest fires

Target: Limit individual accidental fire incidences to less than 2 hectares in size (productive forest land)

2015 Status:

Met

Progress Reported:

No company caused fires in 2015

Indicator 2.2.1.1.6

Recurrence mistletoe infections in regenerating stands

Target: Prevent re-infection of regenerating jack pine stands to achieve Free-to-Grow certification status.

2015 Status:

Met

Progress Reported:

No mistletoe problems requiring special treatment were identified in blocks treated in 2015.

Indicator 3.1.1.1.4 3.2.1.1.2 5.1.1.2.1

Adherence to work permit conditions and Tolko SOPs guiding Tolko and contractor forestry operations on the DFA including those pertaining to rutting, protection of non-timber values, and for operations adjacent to watercourses including buffers and the handling and storage of fuels, lubricants and herbicides

Target: No major non-compliances, pertaining to rutting, protection of non-timber values, and for operations adjacent to watercourses including buffers and the handling and storage of fuels, lubricants and herbicides ,with government work permit conditions for Tolko and contractor operations (major non-compliances are those that result in issuing of a “Summary Procedure” or an “Indictment Notification” by MC).

2015 Status:

Met

Progress Reported:

No major non-conformances resulting in enforcement action.

Indicator 3.2.1.1.1 Proportion of watershed or water management areas with recent stand-replacing disturbance

Target: Monitor the percentage of productive Manitoba crown forest land in any watershed to

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have a stand replacing event (fire or harvest) within the last 7 years. Develop and implement an action plan within one year to protect watershed if stand replacing events exceed 30% of productive Manitoba crown forest land.

2015 Status:

Met

Progress Reported:

GIS analysis was carried out to calculate percentage of disturbance from harvesting and fire on all watershed on the FML. For the 2015 report, data for analysis of disturbance on portions of watersheds outside the FML in Manitoba the productive forest lands information was available to Tolko. No watersheds reached the disturbance level of 30% so no action plans were required. The watershed with highest disturbance level was 05TAF03 (Elbow Lake), which covers the majority of Grass River Provincial Park (FMU 60) as well as small portions of FMU 59 and 67. The disturbance level was 17.70%, with over 99% of the disturbance due to forest fire. The majority of the forest fire is accredited to the 2010 Peterson fire so the disturbance level in this watershed will drop significantly in 2016. The most current data sets used were 2009-2015 for harvest and 2010 to 2016 for fire. For the 7 year period 2009-2015 the total percentage of productive forest land harvested was 0.56%. The maximum disturbance from harvesting in any single watershed for that period was 2.70 %.

Indicator 3.2.1.1.3 Condition of stream crossings and roadways in terms of erosion control

Target: Construct and maintain stream crossings and roadways in a condition that prevents siltation and blockage that results in serious impacts to commercial or recreational fish bearing water courses.

2015 Status:

Met

Progress Reported:

30 roads were inspected in 2015

Indicator 4.1.1.1.1 Net Carbon Uptake

Target: Track the volume of hog fuel produced on the DFA in the field for use in the manufacturing plant and report annually on amount of fossil fuel displaced by its use.

2015 Status:

Met

Progress Reported:

Two separate power systems at Manitoba Kraft Paper, a power boiler and a lime kiln. The power boiler is capable of generating heat using a combination of hog fuel, waste oil and bunker c. KP estimate a maximum volume of 150,000 tonnes/year can be used in the boiler, a minimum of 7.5 million l of waste oil (or bunker c) is required as well. Limitations in the hog burning capabilities of the boiler and during high steam loads on the boiler, require the plant to use fossil fuels to supplement. In addition, the grates of the boiler are not automated and need to be raked, usually twice per day, at which time the hog fuel flow is stopped and replaced with either fossil fuel. KP has a contract supply for up to 14 million l of waste oil, after which would have to consider burning bunker c. The lime kiln is not able to burn biomass and requires about 7-8 million liters of bunker C annually. It is a separate process from the power boiler. 150,000 tonnes of hog fuel would offset 36 million l of waste oil or 31.5 million l of bunker c. This volume of fossil fuel ( bunker c) would release 98,650,000 kg of co2 Hog fuel production from wood sourced on the FML was 70,316 green tonnes. This is

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equivalent to approximately 14,766,360 l of bunker c which would have generated 45,776 tonnes of CO2 if burned. In 2015 the power boiler burned 135,025 green tonnes of hog, 7,333,781 litres waste oil and 948,974 litres bunker c. Based on replacing green hog with bunker c, the power boiler used renewable energy that otherwise would have caused 87,901 tonnes of CO2 to be released (from burning 28,355,250 l of bunker c). The three year average for hog production on the FML is 54,293 green tonnes. Assumptions • Hog fuel, 1 green tonne displaces 240 l waste oil or 210 l bunker c • 1 l of bunker c produces 3.1 kg of CO2 when burned • If hog fuel was unavailable bunker c would have been required. In reality some additional waste oil might have been available for purchase

Indicator 4.1.1.1.3 Level of awareness of Woodlands staff of effects of unnecessary vehicle idling

Target: Increase level of awareness of Woodlands staff of the importance of reducing unnecessary vehicle idling

2015 Status:

Met

Progress Reported:

A video link was sent to all staff in 2015.

Indicator 5.1.1.1.2 5.2.4.1.1 6.1.1.1.2 6.1.2.1.1 6.1.3.1.1 6.2.1.1.1


Target: Forest management planning will take into account Aboriginal and other Community and stakeholder interests and concerns for development of SFM Plans, FMPs, AOPs and Road Management Plans

2015 Status:

Met

Progress Reported:

The Company’s policy is to take a pro-active role in communicating planned harvest and forest renewal activities to the general public. With the move to a two year Operating Plan (OP) with the development and submission of the 2013-2015 OP, the OP public community consultation meetings only occur every second year in conjunction with development of the plan. Public community consultation meetings on the 2015-17 Operating Plan (OP) covering the period of June 1, 2015 to May 31, 2017 occurred between January 26 and February 20 of 2015 in 12 communities. Approximately eight of these communities likely had Aboriginal representation at the meeting. Invitation letters were sent out to organizations, groups and individuals on the Company’s mailing list including First Nations. An open invitation was extended to all members of the general public through local newspaper and radio ads. Opportunity to raise concerns or make comments privately is accommodated through a public consultation questionnaire available at every meeting. Where issues are raised that require more than a clarification answer and would result in further meetings, discussions, field trips and potential modification of plans or operating directions, such issues are then noted in the issues and concerns table for follow-up, a summary of the

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issues and concerns that have been documented throughout 2015 are listed in the Summary of Public Issues and Concerns Table January 1 to December 31, 2015 (Appendix II). In 2015, Company staff meetings with individual or group to discuss concerns or provide information included the following: • Contacted/met with two Wekusko area trappers to discuss our plans in the area and any issues they might have, gave one of them a tour of operations • Contacted Kelsey Trail Sno-Riders (KTSR), reviewed 2014-15 winter plan and agreed on safety task list, did same for 2015-16 • Multiple phone and e-mail contacts with representatives of Misipawistik Cree Nation (MCN) – Grand Rapids, met twice with MCN Lands Committee • Advise OCN Lands Dept that we would be active on the Beach Ridge Road, contacted them and met them about using the Stony Point Road • Gave two Forest Management presentations to Grade 10 Geography class at MBCI • Met with Sherridon resident multiple times to discuss community involvement in various facets of the operation • Provide operational update and maps to Vamp Lake area trapper • Herb Lake Cemetery encounter in BZ-44, contact 3 knowledgeable locals to help guide and advise us through remediation work, multiple telephone contacts and on-site visits • Contact Sipiwesk area trapper to inform him of new blocks being included in his area in the new OP, sent map to him, multiple meeting and phone contacts through the year to review operational status and discuss issues • Upon request, e-mailed Herb Lake Cemetery information to ANA • Cutblock design presentation to UCN NRMT class and several “ride-along” field tours, provide Forestry skills instruction at Fall Camp • Met with Wekusko area prospector and reviewed our plans for the area and supplied him with a map • Contacted Crossing Bay resident to follow up on previous requests and let him know what we were and were not able to do • Herb Lake resident concern about road condition • Work with MBCI Envirothon team through the school year • Attended/presented at career fairs in Flin Flon Cranberry Portage, Moose Lake and at UCN • Work with Sherridon resident to develop capacity for Free-to-Grow surveyors • Met with a second Wekusko area prospector - reviewed our plans and his important sites, mapped his sites, modified block to accommodate his interests, supplied him with a map, agreed to keep him informed, had multiple phone/e-mail contacts through balance of the year • Several contacts and three meetings with Mathias Colomb Cree Nation Chief and MCCN working group to discuss opportunities to work together, ensure harvest of HO-28/29 was acceptable, Crow Lake Road project • Met with Halfway Road area trapper/bear outfitter to learn/map his important sites • Follow-up with Herb Lake resident on satisfaction with actions taken at the cemetery • Escort U of W students to a potential bat cave recorded by Tolko PHFI survey crews to do sampling work • Calls and e-mails with Pimicikamak representatives and their environmental consultants on mitigation of features noted in their Traditional Land Use and Occupancy study • Called to inform Wanless area trapper that we would be harvesting three small blocks on his trapline • Presentation on career opportunities to high school students from area schools • Forestry presentation to Forestry students from Germany and the U of W • Participate in two interviews by U of W Forestry grad student

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• OP presentation to CSA SFM Committee • Contacted remote cottager to advise that we would be doing decommissioning work on a road that they use to get to a recreational fishing area • Present OP at Crown Consultation session with Mosakahiken Cree Nation (Moose Lake) • Spoke with a PhD student doing his thesis on karst topography about our experience with karst landforms

Indicator 5.2.1.1.1 5.2.3.1.1 6.3.1.1.2

Extent of local involvement in forest operations in the DFA

Target: To have at least 75% of the financial value of signed contracts to be conducted on the DFA, held by local contractors.

2015 Status:

Met

Progress Reported:

During 2015 approximately 54 signed contracts/purchase orders on the DFA were acted on. Of the 54 contracts/purchase orders, 41 were held by resident contractors, 8 by Manitoba based contractors and 5 by non-residents to the province. The value of the 2015 contracts/purchase orders was $20,857,763 with the distribution of the value as follows: Local DFA origin $15,020,508 72% MB based operations $ 3,818,716 18% Combined Local/MB $18,839,223 90% Nonresident to province $2,018,540 10% The MB based operations all provided services that local contractors on the DFA did not possess the capability or capacity to conduct the work. The target to have at least 75% of the financial value of signed contracts to be conducted on the DFA, held by local contractors was met. Initiatives to encourage local contractors: During 2015 Tolko continued to work with contractors to improve efficiencies through installation of Geo Tab units in trucks and expanded program to create further efficiencies through installation of FP Dat units in harvest equipment. Tolko’s need for hog material continued to provide Quota Holders on the DFA with the opportunity to diversity operations to include the harvest of hardwood (Poplar) in their operations. In 2015 the company worked with and expanded on a 2014 contract with a local resident of Sherridon for collection of cones, to include contract survey services as well as monitor road conditions, debris burning and road right of way clearing. The expansion and training of these services was successfully completed, resulting in additional local seasonal employment. During early 2015, as part of community meetings, Tolko promoted interest in jobs in the logging industry. Posters were distributed seeking candidates to work in the forest industry with Tolko Contractors in central Manitoba. Approximately 33 résumés were received at the Tolko office and forwarded to Tolko Contractors for consideration for employment. 2015 continued contracting hog fuel purchase agreement with vendor on behalf of OCN for delivery of hardwood from a band allocation. A three-way discussion initiated in 2014 with Hydro and Cormorant to enable the

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community to market wood from the Hydro ROW, resulted in deliveries during 2015 which provided an economic benefit to the community.

Indicator 5.2.2.1.1 6.5.3.1.2

Tolko understanding and practices based upon current and emerging knowledge and recommended practices

Target: Representatives of Woodlands staff will attend conferences, workshops and field trips related to current and emerging knowledge and recommended practices and bring forward any relevant recommendations for process improvement

2015 Status:

Met

Progress Reported:

Presentation by Ducks Unlimited on Wetland Classification and advances in road planning for wetland areas. Migratory Bird Convention workshop (NCASI) Drone applications in forestry (Webinar) Working effectively with Aboriginal People (Webinar) Advanced Vegetation Management (MCFT)

Indicator 5.2.2.1.2 6.5.3.1.1

Training and awareness opportunities for contractors on the DFA

Target: Provide annual information sessions to 100% of all contractors on the DFA

2015 Status:

Met

Progress Reported:

May 27, 2015 Contractors’ Annual meeting Reviewed: • Site, Pulp mill market and Woodlands update • Tolko Corporate Presentation by Murray Wilson, Manager, Stewardship & tenures for BC and MB to provide help to woodlands departments. Provided overview of other Tolko woodlands operations and discussed their challenges. • Review of monthly statistics for 2014 RIR. • Tolko safety program – provided information on Tolko’s new Safety Management System (SMS) for all woodland departments; changes, responsibilities and how it will impact contractors. Covers woodlands staff and contractor management. Copy of presentation provided with the minutes. • EMS/CSA review – no changes to SOPs, remain blue color. Copy of presentation provided with the minutes. Of the 21 contractors invited; 5 contractors were unable to attend. Signed attendance was 35 which included contractors, Tolko employees and SFMC members. A copy of the minutes and attachments were distributed to all contractors. Contractors not in attendance were also required to review the minutes as part of their COR. Tolko provided 7 opportunities for contractor employees to attend EMS- CSA awareness sessions. Tolko developed a new guideline card ‘Tolko Guidelines to Nesting Birds-Best Management practices for logging and silviculture’ for contractor reference and training. Forest Management Planning and Operating Practices (FMPOP) Operators Guide updated May 4, 2015 was distributed at Contractor meeting and with the minutes. Updates in guide were highlighted in yellow for contractor reference. One contractor was and remains inactive Four Contractors had new COR where the meeting minutes were reviewed

EMS-CSA sessions for contractor employees were also held through the year.

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Indicator 5.2.2.1.3 Level of investment in training and skills development

Target: Document actual economic and administrative efforts to promote economic development and meaningful participation for communities in the forest industry.

2015 Status:

Met

Progress Reported:

1.Public Consultation: Notices for the Proposed Tolko two-year harvest and renewal plan (2015-2017) was emailed or mailed out in 2015 to approximately 247 people on Tolko’s mailing list comprised of Community groups, Mayor and Councils, Chief and Councils, First Nations and Special Interest groups plus the material was advertised in newspapers located in The Pas, Flin Flon, Snow Lake, Thompson, and Grass Roots publications. Ads were also run on radio stations in The Pas, Moose Lake, Flin Flon, Thompson and CBC Radio Winnipeg. Tolko’s planner also did an on air radio interview with The Pas radio station. Posters were faxed for placement on community bulletin boards and given to local government office for posting. Because this was a two- year plan the public meetings held in 2015 covered both 2015/2016 and 2016/2017 operating years. Based on demographics of the region, it is possible all communities had Aboriginal representation at the meetings. Two public meetings regarding Sipiwesk operations (OP amendment). One meeting was in an Aboriginal community. 2. Public concerns: when the company is contacted by phone, letter or through discussion about any particular concern/issue, a note of that concern is documented on the public concerns table for that date. The company also documents their response. The table is posted monthly on the internet site and is summarized in the annual report. Public concerns table is also reviewed regularly at SFMC meetings. Starting October 2012 a similar concerns table was initiated for Aboriginal issues and concerns. A summary is not posted to maintain confidentiality and non-disclosure (e.g. location of important plants). 3. A minimum of twelve meetings with resource users. Of these meetings, approximately 6 may have involved Aboriginal participation or concerns. 4. Three meetings including one field trip. Aboriginal members participated in two meetings. 5. Public access is available at www.tolkomanitoba.com providing information on: Upcoming Events, CBFA, CSA-SFM, Forest Management Plan, Operating Plan, Public Participation, Public Awareness, Contact information for MB Woodlands, Links to a variety of industry related sites and Archives. Economic efforts -consultant developed summary information. 6. 2015 Newsletter completed and posted under Public Awareness tab at www.tolkomanitoba.com 7.Education: 3 contractors’ information sessions on heritage resource plan-Aboriginal participation- one company Public education-over 11 events- over 187 people in approximately 14 days. 8. During 2015 approximately 54 signed contracts/purchase orders on the DFA were acted on. Of the 54 contracts/purchase orders, 41 were held by resident contractors, 8 by Manitoba based contractors and 5 by non-residents to the province. Of the 41 signed contracts/purchase orders held by resident contractors, 14 were held by resident aboriginal contractors.

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The value of the 2015 contracts/purchase orders was $20,857,763with the distribution of the value as follows: Local DFA origin $15,020,508 72% MB based operations $ 3,818,716 18% Combined Local/MB $18,839,223 90% Nonresident to province $2,018,540 10% The MB based operations all provided services that local contractors on the DFA did not possess the capability or capacity to conduct the work. Level of Employment within the Company. Thirteen people were employed full-time in Woodlands in 2015; one person retired, two people left and three new staff were hired leaving thirteen employed full-time at the end of 2015. In addition, there were eight term positions: one was road construction supervisor, one was an office worker, one worked in Silviculture and the remaining five worked in forestry. 9. One meetings with resource management boards in 2014. Travel expenses for SFMC members were covered in 2015.

Indicator 5.2.4.1.2 6.4.2.1.1

Evidence of efforts to promote capacity development and meaningful participation in general

Target: Document actual economic and administrative efforts to promote economic development and meaningful participation for communities, including Aboriginal communities, in the forest industry.

2015 Status:

Met

Progress Reported:

In 2015 there were 14 contracts with Aboriginal companies on the DFA with a total payment of $6,342,632

Development of Tri-party project with MCCN (Sherridon First Nation) and MIT on Crow Lake road extension. Benefit to MCCN and Sherridon through: increased winter road safety, access to Kississing lake Reserve land, road construction/harvesting job opportunities

Repairs to Limestone road allowing access by wild rice/commercial fishermen

Training work for Sherridon workers in FTG surveys, testing training, partnering with our survey crew

Forestry work for Sherridon (cone collection, debris pile burning, boat rental)

Road work for Sherridon (repairs, inspections, maintenance)

Indicator 6.1.1.1.1 Percentage of Woodlands staff who have participated in Aboriginal, treaty rights and cultural awareness sessions

Target: 100% of all Woodlands staff will receive Aboriginal title and rights, treaty rights and cultural awareness training

2015 Status:

Not Met

Progress Reported:

Aboriginal awareness training occurred November 22, 2013. This indicator requires training every 3 years so the next session will be in November 2016. All new permanent staff reviewed the aboriginal awareness training materials at time of orientation. All term summer field staff reviewed aboriginal awareness training materials during

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training in May 2015. The term summer administrative assistant did not review aboriginal awareness training materials. Target not met.

Indicator 6.3.1.1.1 Evidence that the organization has co-operated with other forest-dependent businesses, forest users, and the local community to strengthen and diversify the local economy

Target: Have meaningful discussion with at least one local and one regional development organization towards an economical opportunity (in the first year) and have at least one agreement in place within five years

2015 Status:

Met

Progress Reported:

In 2015 the company worked with and expanded on a 2014 contract with a local resident of Sherridon for collection of cones, to include contract survey services as well as monitor road conditions, debris burning and road right of way clearing. The expansion and training of these services was successfully completed, resulting in additional local seasonal employment. During early 2015, as part of community meetings, Tolko promoted interest in jobs in the logging industry. Posters were distributed seeking candidates to work in the forest industry with Tolko Contractors in central Manitoba. Approximately 33 résumés were received at the Tolko office and forwarded to Tolko Contractors for consideration for employment. 2015 continued contracting hog fuel purchase agreement with vendor on behalf of OCN for delivery of hardwood from a band allocation. Company initiated three-way discussion with Cormorant and Hydro to allow Cormorant to supply Tolko with wood from the hydro right of way. Discussions led to deliveries in 2015 and economic benefits to the community.

Indicator 6.3.2.1.1 Evidence of co-operation with DFA-related workers and their unions to improve and enhance safety standards, procedures, and outcomes in all DFA-related workplaces and affected communities

Target: Review and update annually the Haul Safety Program with contractors

2015 Status:

Met

Progress Reported:

There were no changes to the Radio Traffic Channel guideline for the contractors’ meeting May 27, 2015. The Truck Haul Safety Guidelines were revised in October 2015 with updates for truck driver PPE when in the yard. Copies were provided to contractors. During road inspections, signage is checked.

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Indicator 6.3.2.1.2 Evidence of co-operation with DFA-related workers and their unions to improve and enhance safety standards, procedures, and outcomes in all DFA-related workplaces and affected communities

Target: Safety issues will be dealt with at least as frequently as annually at an all-contractor meeting

2015 Status:

Met

Progress Reported:

May 27, 2015 Contractors’ Annual meeting Reviewed: New Tolko Contractor Safety management Program was rolled out on at the Contractor Meeting. Emphasis was on new program. • Tolko safety program – provided information on Tolko’s new Safety Management System (SMS) for all woodland departments; changes, responsibilities and how it will impact contractors. Covers woodlands staff and contractor management. Copy of presentation provided with the minutes. • Safety inspections by Woodlands staff • Safety plans • Contractor safety stats (RIR) Of the 21 contractors invited; 5 contractors were unable to attend. A copy of the minutes and attachments were distributed to all contractors

Indicator 6.3.3.1.1 Evidence that a worker safety program has been implemented and is periodically reviewed and improved

Target: 100% of woodlands contractors have a workplace safety and health plans.

2015 Status:

Met

Progress Reported:

All contractors are required to have a safety plan as a contractual requirement. Also reviewed during COR meetings. Discussion on safety plans at May 27, 2015 Annual Contractor Meeting including introduction of new Tolko Contractor Safety Management Program. Reviewed Contractor Responsibilities, Contractor Supervisor Responsibilities, Contractor Safety Inspections and requirement for all Contractors to have Safety Plan. All contractors working for Tolko submitted a Safety Plan. Refer to the Contractor files for copies of Safety Inspections.

Indicator 6.3.3.1.2 Evidence that a worker safety program has been implemented and is periodically reviewed and improved.

Target: 100% of Tolko Woodland employees involved in annual review of workplace safety and health plan.

2015 Status:

Met

Progress Reported:

In May 2015 a new Safety Program was unveiled to staff at which all staff and students were signed off and trained. Twelve monthly safety meetings were held with staff and four safety committee meetings occurred in 2015. In November of 2015 a review of Safety Management Systems SOP’s was added to the Agenda as a standard requirement. Refer to the Safety Minutes for details of the Safety Program Review.

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Indicator 6.4.1.1.1

Degree of satisfaction with the public participation component of the planning process

Target: The majority of the FRAC Committee members responding to the survey indicate being satisfied (or better) with the public participation process of the FRAC Committee

2015 Status:

Met

Progress Reported:

In 2015, SFMC meetings occurred in January, May, September, and November. Surveys were conducted at each meeting and a summary report compiled by the Woodlands Admin Assistant for review at the following meeting. The majority of members at the meeting were satisfied or better with the meetings and process. 81% of the participants completed surveys and 100% of these response were satisfied with the process.

Indicator 6.4.3.1.1

Evidence of efforts to promote capacity development and meaningful participation for Aboriginal communities

Target: 6.4.3.1.1 (A)Woodlands employees will provide at least three days of forest education annually in an effort to inform and educate groups or individuals. 6.4.3.1.1(B) Make available summary documents on topics that are identified by stakeholder groups. 6.4.3.1.1 (C) FRAC and SFM Committee members will receive forest management presentations and information updates from the Company at least 3 times per year and the opportunity to participate in at least one field tour per year 6.4.3.1.1 (D) FRAC and SFM Committees will be provided with the opportunity to place a representative on SFM audits for the DFA

2015 Status:

Met

Progress Reported:

(A) 8 EMS-CSA awareness sessions for contractor employees; Public education- 16 events- 644 people in approximately 21.5 staff days. Approximately 391 Aboriginal attendees. (B) 6. 2015 Newsletter completed and posted under Public Awareness tab at www.tolkomanitoba.com. A summary document on AAC- Wood Supply was distributed in 2015. (C) SFMC met 4 times in 2015. In May, the SFMC committee attended the Contractor meeting held annually. An AOP presentation was conducted. A presentation from Tolko’s Corporate division from Vernon BC was made which incorporated a review of BC operations and discussion on pine beetle management. Review of the CSA Z809 standard revisions was conducted. A presentation on the Jack pine beetle outbreak in the Grand Rapids area was conducted with information regarding pest management. Field trips was a tour of the Kraft Paper Mill for the group in November. Aboriginal members participated in all four meetings. (D) No formal audit occurred in 2015

Indicator 6.5.1.1.1 Number of people reached through educational outreach

Target: Woodlands employees will provide at least three days of forest education annually in an effort to inform and educate groups or individuals.

2015 Status:

Met

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Progress Reported:

Young Women's Conference- Staff mentored 8 girls (4 were aboriginal) - 1 staff day Fall camp- 3 students (1 aboriginal) - 5 staff days Class presentation- grade 10 (Mike) – 22 students (8 aboriginal) - 0.25 staff day Class presentation- grade 10 (Matt) – 20 students (10 aboriginal) – 0.25 staff day Operations tour (3 times) - 41 people (15 aboriginal) - 5 staff days Frontier Engaged Learners - 7 attendees (7 aboriginal) – 0.5 staff day Forestry week Middle School (Grade 6) Field Trip – 100 attendees (estimate 30 aboriginal) - 4 staff days Career day The Pas – open to public- unknown number (~12 aboriginal) 1 staff day Career Day-Cranberry Portage-1 staff day- 100 total- 80 aboriginals Career day-Flin Flon-1 staff day- 150 total- 100 aboriginals Career Day- Moose Lake-1 staff day- 140 aboriginals & attendees Total 13 events- 20 staff days

Indicator 6.5.2.1.1 Availability of summary information on issues of concern to the public

Target: Make available summary documents on topics that are identified by stakeholder groups.

2015 Status:

Met

Progress Reported:

A public newsletter was developed in 2015 identifying and expanding on the topics of: 3-d Aerial Imagery Infrared Detection Use in identifying Bat Caves Careers in Forestry AAC

Indicator 6.5.3.1.3 Training members of the Forest Resource Advisory Committees (FRAC) and the SFM Committee

Target: 6.5.3.1.3 (A) FRAC and SFM Committee members will receive forest management presentations and information updates from the Company at least 3 times per year and the opportunity to participate in field trip 6.5.1.1.3 (B) FRAC and SFM Committees will be provided with the opportunity to place a representative on SFM audits for the DFA

2015 Status:

Met

Progress Reported:

(A) SFMC met 4 times in 2015. In May, the SFMC committee attended the Contractor meeting held annually. An AOP presentation was conducted. A presentation from Tolko’s Corporate division from Vernon BC was made which incorporated a review of BC operations and discussion on pine beetle management. Review of the CSA Z809 standard revisions was conducted. A presentation on the Jack pine beetle outbreak in the Grand Rapids area was conducted with information regarding pest management. Field trips was a tour of the Kraft Paper Mill for the group in November (B) No formal audit in 2015. Internal review only.

Indicator 6.5.3.2.1 Access of the broad public to information on SFM, FMP and AOP plans and related public participation processes

Target: Sufficient information sharing mechanisms so the broad public will have access to the recent SFM Plan, FMP and AOPs and Annual SFM Report

2015 Status:

Met

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Progress Reported:

The following material was mailed and/or emailed in 2015 to members of the Sustainable Forest Management Committee (SFMC): • Meeting, notifications, agendas, minutes of SFMC meetings • Notification Tolko Annual Reports available online. • July: Letter re Tolko’s 2015-2017 Operation Plan and CSA Sustainable Forest Management Plan to the CSA Z809 2008 standard are available online at www.tolkomanitoba.com . This letter was also emailed to 70 interested citizens, SFMC members, Chief and Councils/Community Councils and mailed to 192 recipients. The letter included information for anyone who wished to be added to the email distribution list. • September: Email with letter re Major Changes to CSA Z809 Standard (fourth revision) with links to www.tolkomanitoba.com for review of plan and encouraging review and comment on changes being proposed to the standard on the attached summary. Public review period would end October 4, 2015. This letter was also emailed to Interested Citizens and Chief and Council email distribution lists. • November: Email with information from Anderson Assuah (Research Assistant/Natural Resources Institute) on University of Manitoba National Forestry Research on-going national survey of all forest-related public advisory committees, Model Forests, and community forests in Canada. Included with the email was a 74 page Natural Resources Canada/Canadian Forest Services document titled Public Participation in Forest Management: Results from a National Survey of Advisory Committees (J.R. Parkins, S. Nadeau, L. Hunt, J. Sinclair, M. Reed and S. Wallace) Information Report NOR-X-409 Northern Forestry Centre. Invitations to participate in SFMC: • September: Letter to Chief and Councils inviting participation in the SFMC. • November: Email letter to Mosakahiken Cree Nation with information on SFM Committee and invitation to participate. • July: Letter re Tolko’s 2015-2017 Operation Plan and CSA Sustainable Forest Management Plan to the CSA Z809 2008 standard are available online at www.tolkomanitoba.com included information for anyone who wished to be added to the email distribution list. Public Access available at www.tolkomanitoba.com : • Upcoming Events on home page: SFMC meeting dates • Company Info • CBFA – Description, commitments of Signatories, work focus, link to CBFA web site, CBFA Forest Section maps, FML harvest history, Dickstone South Road Environment Act Submission and Environment Act License • CSA-SFM –Links when clicked to: 2014 CSA SFM/EMS/PEFC Audit Summary, 2013 CSA SFM Indicator Report (revised March 2015), Tolko MB 2012 CSA SFM Plan (revised February 2014); Map 1: Defined Forest Area for Tolko MB CSA/SFM Plan; CSA Z809 2012 External Audit Summary; 2012 CSA SFM Indicator Report (dated January 2014), Tolko Manitoba CSA-SFM Advisory Committee Meetings, CSA Z809-2008 Sustainable Forest Management Standard and archived documents. • EMS - description of an Environmental Management System (EMS); what it provides and information on Tolko registration. • Forest Management Plan – description and links to 1997 – 2009 FMP Summary and Proposed Operations Map • Operating Plan – description of operating plans and links to 2015-2016 Public Meeting Agenda and related maps, 2015-2016 Operating Plan dated March 13, 2015, Forest Management Annual Reports and archived reports. • Public Participation – description of role of public participation in forest certification; links to Forest Resource Advisory Committee Meeting minutes (now known as Sustainable Forest Management Committee - SFMC), Sustainable Forest Management Committee Ground Rules and SFMC September 2011 Field Trip Report; information about Snow Lake and Sherridon Forest Resource Advisory Committees and Annual Plan Public Information meetings. • Public Awareness – Public Forestry Awareness definition; Tolko commitment, link to a summary report on the value of Coarse Woody Debris in the Tolko Manitoba

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Woodlands Newsletter – Highlights of 2012; links to information on the use of herbicide in forest management; Tolko MB Woodlands Newsletters and archived newsletters. • Contact information for Manitoba Woodlands • Links – MB Model Forest Inc, MB Forestry Association – Canada, Canadian Council of Forest Ministers (CCFM), Province of MB/MB Conservation, Forest Products Association of Canada (FPAC) and Tolko Industries Ltd. • Archives – Links to past plans, past standards and indicators, past management reports, past reports and audits and past newsletters. Postings to www.tolkomanitoba.com during 2015: • SFMC meeting dates • 2015 SFMC Meeting Minutes • Tolko Manitoba 2013 and 2014 CSA SFM Plans • 2014 CSA SFM/EMS/PEFC Audit Summary, • 2013 CSA SFM Indicator Report (revised March 2015) The following material for the Proposed Tolko two-year harvest and renewal plan (2015-2017) was emailed or mailed out in 2015 to approximately 247 people on Tolko’s mailing list comprised of Community groups, Mayor and Councils, Chief and Councils, First Nations and Special Interest groups plus the material was advertised in newspapers located in The Pas, Flin Flon, Snow Lake, Thompson, and Grass Roots publications. Ads were also run on radio stations in The Pas, Moose Lake, Flin Flon, Thompson and CBC Radio Winnipeg. Tolko’s planner also did an on air radio interview with The Pas radio station. Posters were faxed for placement on community bulletin boards and given to local government office for posting. Because this was a two- year plan the public meetings held in 2015 covered both 2015/2016 and 2016/2017 operating years. • Notices for the January/February 2015 community public meetings on the Proposed Tolko two-year harvest and renewal plan (2015-2017). The plan describes harvesting, reforestation and road development activities planned for Tolko Manitoba’s Forest Management Licence Area from June 1, 2015 to May 31, 2017. The letter for the notices provided information that preliminary draft maps containing the proposed operations for a 5 year period beginning with the 2015/2016 and 2016/20175 operating years were available at www.tolkomanitoba.com under the “Annual Plan” tab. Recipients were also invited to pass the invitation to others who may have an interest in learning more about forest management activities planned by Tolko, and contact information for questions was provided. Recipients interested in participating in the SFM process to identify traditional rights and values associated with communities were invited to contact paul ‘Chapman or visit www.tolkomanitoba.com A list of meeting dates and locations and a table of the logging roads under review for closure were included with the notification. Recipients wishing to receive correspondence by email were asked to email request to [email protected] • Topics covered on the agenda at the AOP meeting were 1. Attendance, Agenda Review, Mailing List and Addresses, Public Input Form and Update (on operations) 2. Access to Company Plans, 3. Annual Operating Plan Review (current 2013/2015 plan and planned two year plan, 4. Road Development and Closure, 5. Traditional Knowledge Concerns, 6. Local Plant and/or Wildlife Knowledge, 7. Local Community Issues, 8. Sustainable Forest Management Committee (SFMC) 9. Canadian Boreal Forest Agreement (CBFA) 10. Other/Additional Items and 11. Discussion and review of AOP Map.

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Appendix II:

Summary of 2015 Public Issues and Concerns Table

40

PUBLIC ISSUES AND CONCERNS TABLE January 1 to December 31, 2015

Month Venue Issue or Question Company Response Plan Modification or

Operational Direction

Provided January- Phone call Trapper in Vamp Lake area wanted an

updated map of the area and to know what our plans were for the near future

One planned block wasn’t harvested, no immediate plans to harvest, possibly next winter, printed and mailed a large map to him

N/A

Meeting During meeting with Buzz Lake area trapper

he advised Area Supervisor of another

trapper that would be impacted by our

operations and shared his contact

information.

The second trapper was contacted and a meeting

with the Area Supervisor was arranged and carried

out. Area Supervisor took trapper for a tour of

operations and reviewed maps of proposed harvest

areas – trapper had no issues with the proposed

harvest.

N/A

Phone call Operations Forester called representative of

Kelsey Trail Sno-Riders to advise that there

had been a change of plans and we would be

active on the Mitchell Lake Road within a

few weeks’ time. We discussed need for

signage and their preference is to have snow

windrowed on the north side of the road as

the south side is very deep already.

Passed this info on to Area Supervisor for

implementation, roads were opened up but no

logging ended up taking place.

N/A

Nelson River Logging encountered a grave

marker while harvesting in BZ-44

Operator immediately left the area by the route he’d

come in and advised his supervisor of what he’d

encountered, NRL supervisor contacted their Tolko

supervisor who passed information to Operations

Forester and went to investigate, got GPS

coordinates, took photos, determined the site was

within the permit boundary, Historic Resources

Branch (HRB) of MB was contacted, 3 locals who

are active in the area were contacted and 2 visited the

site and confirmed that it was in fact the Herb Lake

Cemetery (we were aware that there was a cemetery

in the area and had buffered the location supplied by

HRB with 150 m buffer but cemetery was 230 m

from this location) and provided their knowledge of

the extents and orientation of the site, they were also

on site when we brought in a manual bucking crew

to buck and remove the trees that had been laid down

by the harvesting equipment within the cemetery

boundary, this wood was bucked into stove lengths

Brought in a manual bucking crew to buck and remove the trees that had been laid down by the harvesting equipment within the cemetery boundary, this wood was bucked into stove lengths and delivered to a local trapper’s cabin that was nearby, snow fence was set up around the exposed side of the cemetery to ensure no equipment accidentally entered the site, a new GPS shapefile was created with 130 m buffer (on advice from HRB) on the actual location and loaded into GPS tablets.

41

and delivered to a local trapper’s cabin that was

nearby, bundles of trees that were well outside of the

cemetery were skidded to roadside by a grapple

skidder, snow fence was set up around the exposed

side of the cemetery to ensure no equipment

accidentally entered the site, a new GPS shapefile

was created with 130 m buffer (on advice from

HRB) on the actual location and loaded into GPS

tablets.

OP Meeting Meeting attendee asked for maps of

recent cut at Vamp lake and herbicide

treatment near Imperial road

Will provide Maps were produced and sent to

the individual

OP Meeting Meeting attendee asked why do you decommission roads so close to the highway? As an outfitter I have a lot of gear in my truck and if I leave it near the highway stuff goes missing, better if you would decommission the road part way down so a parked truck wouldn’t be seen from the highway.

Safer, limits the amount of speed a vehicle can

build up before encountering an obstacle, keep

in touch with us about roads you are concerned

with, moving the decom location in a bit is

something that could be considered on a case-

by-case basis

No further contact to date

OP Meeting Attendee asked if their community councilors could get on the distribution list

No problem, provide a contact list and we’ll

add them

To date no contact list has been

provided but the Mayor and

Council of Sherridon remains on

the list

OP Meeting Snowmobile club requests that operator on hardwood auction blocks around Wanless to preserve the trail as much as possible

That would be the responsibility of MB

Conservation who are in the room and can see

that the request is communicated

N/A

OP Meeting Attendee identified that an extension to Athapap road could conflict with the skidoo trail operated by the Flin Flon club, suggested Tolko should contact them

Doesn’t look like we will be pursuing that road

in the near future but when we do we’ll be sure

to contact them

Currently in the process of

initiating some dialogue

OP Meeting Attendee identified that an all-weather road south of halfway (proposed Bignell Road) could be close to the snowmobile trail along the west side of Scaler Lake, would require discussion with the club

We will be in contact with the Club There have been a few discussions

to date, will be a few more before

any construction activity is

initiated, club has indicated that as

long as we leave or make room for

them adjacent or parallel to the

road they are ok with that

42

February OP Meeting Attendee asked if there had been any more discussion of JO-100 and JO-101, would you meet with the trapper and resource users?

Yes we can Harvest of these blocks is not

imminent at this time, issue was

recorded in WTS for each block to

contact the trapper to mitigate prior

to harvesting

OP Meeting Proposed herbicide is in an area where I catch lynx, removing the aspen would reduce the lynx habitat. Can you avoid the parts I access from the road?

Yes, we have the flexibility to do things like

that

Areas that the trapper did not want

to be sprayed were discussed and a

follow-up confirmation meeting is

planned prior to the herbicide

application

Phone call to trapper on Stuart Lake February 20, 2015.

Told trapper that we are going to be

actively harvesting bz-44 in the next

couple weeks. He said he is done

trapping now and not to drop any trees

on his cabin at Stuart lake.

Trapper was told that there was a 100m buffer

on Stuart lake and the inblock road will be

within 125 m of the lake. Trapper was ok with

this. Trapper said that his cabin was in a rocky

area close to the lake. He also marked the

trapping trail with ribbon and liked the idea of

high stumps to mark the trail. Another part of

his trail goes through swamp and he told me

that the bunchers wouldn’t be in the area

anyways because there was no merchantable

wood.

N/A

March The Pas Woodlands Building

Mining and Exploration claimer Peter

Dunlop, from The Pas MB, (Heinz road)

came into office wondering where we

were logging in the buzz lake area, and

would like to remove a couple

excavators from his cabin along

Wekusko lake from the old Herb Town.

He bought the old mine mangers cabin

from 1944 and claims in the area. He

said there was nothing going on with

claiming or mining in the area because

the industry is not active. He was given

a large ortho map which showed areas

within the buzz lake area and future

years. Peter showed on the map where

two more graves were at old Herb town

30-0’ from shore, showed where the

grave was located near the Laguna for

clarification. Also showed where the old

Peter was told to contact us when he had any

questions. Also we could lend him a radio to

safely get any things out from his cabin. He

was also told that there would be updated maps

every year on harvest areas and proposed areas.

Peter was told that the buncher operators were

given direction to not cut any claim posts and to

leave stand as they were.

N/A

43

school site was located. Peter said he

owns a 3 mile radius of his cabin and

lake within BZ-44.

Phone call from Herb Lake resident

Access road to Herb Lake has gotten

very narrow with snow windrows, not

enough room for 2 vehicles to meet in

some spots, having to back up to find

spots, operators for Tolko staying at the

lodge create additional traffic, wondered

if we could run our grader up the road to

widen it out so traffic can meet.

I talked to the Area Supervisor about it, who

figured we could do that, passed on to the caller

that we would try to get the grader down there

in the next few days.

Province had their grader on there

before we got to it.

Phone call from herb town resident

access from his house at the old laguna

to the old mine site, upset that the

packed snow was taken off the road and

he couldn’t snowmobile the

1.5kilometers of road. The individual

wanted to walk his tracked excavator

out the buzz road and wanted to know

when trucks weren’t using the road.

I talked to the supervisor and was told that there

was no snow anywhere, dust was flying. I

contacted the resident and told him that there

would be less traffic on the weekends during

the day to move out the excavator and he was

welcomed to borrow a radio to call out

kilometers and listen for traffic. It was worked

out that we the company would lowbed out his

excavator on March 20th 2015 in the morning

and drop it off at the buzz lake stockpile.

Resident said RIGHT ON! I told him that the

cutover might have exposed and heated up the

ground to make the road exposed to dirt and

melted the snow.

Company moved the excavator out

for the caller.

April April 14 meeting

Wekusko Lake area prospector had

concerns that our activities in BZ blocks

may impact his work in the same area,

provided information on some of his

important sites across the landscape

Agreed to work with him, map his important

points and do our best to preserve them

Several sites have been mapped

for protection, BZ-40 block was

reduced to provide some

buffering on area of high

activity

April 22 telephone call for representative of Provincial Geologic surveys

Wondering what activity had taken

place over the fall/winter and what we

had planned for this year and wanted to

make sure his proposed campsite did not

conflict with anything we had planned

Reviewed work completed to date and what we

have planned for the upcoming summer and

camp location should not be a problem for us

but would pass the info on to Woodlands

Manager – Harvesting so he is aware – e-

mailed Wally and Joyce this info

N/A

44

April 29, 2015 – Met with Bear outfitter on Thicket Road close to SI-56

Discussed current and future block plans

in the Sipiwesk area with outfitter in

order to coordinate locations for bear

baits and stands.

Outfitter indicated he may send GPS

coordinates to Tolko so sites can be mapped

and avoid conflict. Left company contact info

with outfitter.

N/A

May none

June None

July Via phone, 9:15 am on July 6, 2015.

Concerned citizen asked if Tolko would

gravel Williams Lake Road. He was

talking to the resources mgmt. board

about this and that there is 15 families

coming there to camp. He said that

Tolko workers that work on the road

come there to swim and to get water.

He said that there are really serious

potholes that a vehicle would touch

bottom while driving and that they are

really big. He would like us to pour

gravel before they start camping on July

18th, 2015. He also said that the

fisherman’s association would like

Tolko to build a boat launch and dug

out. He said that the shoreline is straight

and you can’t hide the boats from the

waves. They would like a marina dug

out in through an existing river into the

bush so they could park their boats for

protection.

Tolko would get back to him on his requests No action was taken on this

August none

September None

45

October Oct 5 – telephone call from representative of Kelsey Trail Sno-Riders

Wanted to know where we would be

active this winter to discuss pre-cautions

Would be harvesting/chipping/hauling on

Mitchell Lake Rd from around km 9 and will be

chipping/hauling on the Sturgeon Landing Rd –

will ensure snowmobile crossing signs are

erected and will avoid leaving a large windrow

of snow at the crossing location on Mitchell,

also informed them of the future possibility of

all-weather Bignell Road that will cross their

trail at one location and will have to work out

details at another spot where road should go

where trail currently is – suggested we could

push an alternate location for the trail

Signs were erected, Mitchell -

snow was pushed into the ditch

to form an approach adjacent to

the road and trees were cut in

the vicinity of the crossing to

improve visibility.

Bignell – more conversations

have taken place, no

construction has occurred –

they have indicated they are

fine if we push a trail for them

parallel to the road.

November None

December None

46

Appendix III:

Environmental Incident Reports

2015-09-16 EIR - Enforcement Notice (Littering)

2015-09-08 EIR – Soil Disturbance (ST-5)

47

EIR Title Enforcement Notice (Warning)

Date of Incident 2015-09-16

Description Failure to remove old, broken culverts that were removed from a water crossing when it was decommissioned

Root Cause Culverts were forgotten about. Staff changeover and the area being not an active area of operation meant the culverts were not being seen by Tolko staff, and the job not being recognized as incomplete. Manitoba Conservation issued a warning for littering in the spring of 2016.

Mitigation and Corrective Action

Conservation was informed of the plan to remove the culverts to an appropriate waste disposal grounds once ground conditions allowed for safe operation of equipment. Old culverts were removed to a waste disposal ground in June of 2016.

EIR Title ST-5 Soil Disturbance

Date of Incident 2015-09-08

Description Excessive soil disturbance caused by skidding wood from block to roadside chipper

Root Cause Repetitive use of the area near where the chipper was situated combined with shallow soils and pockets of standing water or areas of higher water table contributed to soil structure loss in some areas, rutting, and general disturbance beyond normal disturbance. Summer time operations have a greater chance of creating soil disturbance beyond acceptable levels.

Mitigation and Corrective Action

The Harvesting Superintendent met with the Contractor responsible for operations on the site and reviewed the incident and provided instruction on the prevention or re-occurrence of such an issue. A field trip with staff that are responsible for supervising harvest operations was conducted to ensure consistency of knowledge with respect to soil disturbance management. A letter to contractors regarding their responsibility in the protection of the integrity of soil, and the need for prevention of soil disturbance was sent by the Woodlands Manager to all contractors. The area was reviewed by the Forestry Superintendent to determine if special or exceptional silviculture strategies would be required to ensure site productivity is maintained. Some larger stock seedlings were ordered for the block to ensure success of renewal for planting in the summer of 2017. All Contractors were trained in preventing soil disturbance at the Spring 2016 contractor meeting.