TimberWest - November/December 2016

WORKHORSE WOOD CHIPPER BC EcoChips’ Peterson 5000H chipper SPECIAL INSERT: 2017 INDUSTRY CALENDAR

INNOVATION LEADS TO SUCCESS Chilton, Logging, Vancouver, WA CREATING A SUSTAINABLE ANSWER IN ALASKA Tenakee Logging Company, Tenakee Springs, Alaska

HARVESTING

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PONSSE’S EIGHT-WHEEL HARVESTERS can be used for harvesting wood from slopes where mechanised harvesting was previously unprofitable, even impossible. The agility and ease of use of the crane and the stability provided by the eight wheels increase productivity considerably. The machine’s centre of gravity remains low when operating the longer reach of the crane, driving comfort is better, and there is no need to sacrifice the power of the machine.

TRACTION AID WINCH can be mounted on PONSSE machines* harvesting on extreme steep slopes. The winch is synchronized with the machine’s driving speed, and does not require any special actions while operating. Tethered PONSSE harvesters and forwarders provide unbeatable productivity with minimal ground disturbance even in the most demanding conditions.

PONSSE excels at diverse logging operations across North America. *available for Ergo 8w and Bear harvesters and Buffalo, Elephant and ElephantKing forwarders.

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ON THE COVER Peterson 5000H chipper is hard at work at a Sutco Contracting site.

November/December 2016 Vol. 41 No. 11-12

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Creating a Sustainable Answer in Alaska

Creating a Sustainable Answer in Alaska Tenakee Logging Company is a prime example of community inclusion, bringing both jobs and economic growth to the place they call home.

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Innovation Leads to Success Chilton Logging defines innovation and provides solutions to market needs.

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Workhorse Wood Chipper Wood residual hauling, general freight, heavy haul, and freight brokering are the mainstays of Sutco Contracting,

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Firebreak Column New Technology and the War Against Wildfire

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Three Ways to Extend the Life of Your Logging Equipment

Innovation Leads to Success

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A few practices to consider that will lengthen the life of your logging equipment or improve its performance.

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Workhorse Wood Chipper

Pacific Logging Conference Gathers in San Diego

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Conference a success and raises $30,000 for Pacific Forest Foundation

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Forest Residuals Take to the Air First air biofuel flight

DEPARTMENTS

Page 4 .............................................................In the News Page 26 ................................................. Association News Page 28 ..................................................... Machinery Row Page 36 ........................................................ New Products Page 37 ................... Calendar of Events/ Subscription Page 37 .................................................Advertiser’s Index Page 37 ................................................. Classified Section Page 38 ........................................................Guest Column

Three Ways to Extend the Life of Your Logging Equipment

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New Prototype Plywood Panels

There may be a massive plywood building panel on the horizon. Panels as big as 12feet wide, 48-feet long, and two-feet thick were made by Freres Lumber Company in Lyons, Oregon, and tested at Oregon State University (OSU).

The panels are the result of more than a year of development and performance testing. “The results look very promising,” said Ari Sinha, assistant professor in OSU’s College of Forestry, who oversaw the tests.

“This is a unique product with the potential for creating jobs in rural Oregon.”

100 Million Dead Trees

It is estimated that California’s forests hold 100 million dead trees. The mortality rate has skyrocketed over recent years.

Judging by surveys, approximately 62 million trees died in 2016.

The trees pose a serious fire hazard. In late November, Senator Diane Feinstein (D-Calif.) urged the U.S. Department of Agriculture to revisit her request for federal aid to help crews clear the dead trees.

The next problem, which California is already running into, is what to do with the dead trees. “There’s not the infrastructure to take on this quantity of trees,” U.S. Forest Service Spokesperson Stephanie Gomes told the LA Times on Wednesday, November 30.

OSU Receives $4 Million Genetic Engineering Grant

With a $4 million, five-year grant from the National Science Foundation, scientists at Oregon State University (OSU) will develop new approaches to identifying genes that control the ability of a plant to be genetically engineered.

Researchers will create new methods to image and analyze plants undergoing the process of genetic engineering. Their goal is to identify the genes that promote or retard the process.

“Many crop species, and many of the valuable varieties within, remain extremely difficult to genetically engineer,” said project leader Steve Strauss, OSU distinguished professor in the College of Forestry. “This greatly limits the ability of this method to be used for 4

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plant breeding and scientific research. There can be blockages at any of the several steps.

Regeneration of modified cells into plants is usually the most difficult to overcome.”

In collaboration with Fuxin Li in the OSU School of Electrical Engineering and Computer Science, the investigators will develop state-of-the-art image analysis to visualize the genetic engineering process.

Rosboro Sells Manufacturing Business

Springfield-based Rosboro announced that Wynnchurch Capital is buying its manufacturing business, which includes seven plants in Oregon.

As early as last April, Rosboro had stated that it would “explore strategic alternatives,” which included a sale. The announcement comes three weeks after the company sold off its timber holdings—95,000 acres.

Canada Hit with U.S. Trade Complaint over Lumber Imports

The Wall Street Journal reported that “the U.S. lumber producers filed a trade complaint over Canadian lumber imports in late November, making good on an earlier threat that could revive a decades-old trade fight at a time when U.S. President-elect Donald Trump seeks major changes to the North American Free-Trade Agreement.”

The lumber producers allege that Canadian lumber is sold at less than market value into the U.S. The coalition would like duties imposed on Canadian imports to make up that difference.

The two countries have been at a standstill since the expiration last year of the Softwood Trade Agreement—a 2006 bilateral deal that ended decades of legal battles over U.S. moves to impose duties on Canadian imports.

Washington State DNR Offering Paid Internships

To help develop future professionals, the Department of Natural Resources (DNR) turns to internships—both paid and unpaid—for students pursuing an associate, bachelors, or graduate degree in relevant fields. The DNR currently has several openings for salaried internships: nine in engineering, five in land surveying, and eight in forestry, recreation, agriculture, and other fields. Also available is an unpaid internship in Communications. Most of the interns work between May and September; however, some are year-round opportunities.

To find out more, go to www.dnr.wa.gov/ employment/jobs and search on the category Internships. You can also find DNR and other Washington state agency internship opportunities on www.careers.wa.gov. TW

TimberWest November/December 2016 www.forestnet.com

Editor: Diane Mettler, diane@forestnet.com Copy Editor: Beth Szyperski Contributing Editors: Loren J (Jody) Ellis, Paul MacDonald, Lindsay Mohlere, Mary Bullwinkel, Barbara Coyner ––––––––––––––––––––––––––––––––––––––– Sales Mgr: James Booth – jbooth@forestnet.com Director: Rob Stanhope – stanhope@forestnet.com Sales Contact Information: Toll Free: 1-866-405-6462 Phone: (604) 990-9970 • Fax: (604) 990-9971 ––––––––––––––––––––––––––––––––––––––– Publisher & Production Manager: Sheila Ringdahl – sringdahl@forestnet.com Office Manager: Betty Rosales – brosales@forestnet.com Corporate Office Information: Phone: (425) 778-3388 Fax: (425) 771-3623 timberwest@forestnet.com www.forestnet.com Send all materials - Insertion Orders, Contracts, Copy, Photos, Disks to: TImberWest Publications, LLC P.O. Box 610 (300 Admiral Way, Suite 105) Edmonds, WA 98020-0610 ––––––––––––––––––––––––––––––––––––––– Send both OLD and NEW Circulation information to: TimberWest Magazine Attn: George Aldridge P.O. Box 610, Edmonds, WA 98020 Fax: (425) 771-3623 • subscribetw@forestnet.com ––––––––––––––––––––––––––––––––––––––– Advertising created by TimberWest Publications, LLC is the sole property of TimberWest Publications, LLC and may not be copied or reproduced without the express written permission of the publisher.

PUBLISHER’S EDITORIAL STATEMENT: TimberWest reports on the logging and lumber segment of the forest industry in the Western United States with emphasis on the states of AK, WA, OR, ID, MT and CA, providing current information on timber harvesting techniques, sawmill operations, news, legislation, events, people and products pertinent to this market.

TIMBERWEST (USPS #024858) is published bi-monthly (Jan/Feb, Mar/Apr, May/Jun, Jul/Aug, Sept/Oct, Nov/Dec) by TimberWest Publications, LLC, 300 Admiral Way, Suite 105, Edmonds, WA, 98020. Periodicals postage paid at Edmonds, WA and at additional mailing offices. Copyright 2016. All rights reserved. Subscription rates to qualified subscribers are Free and all non-qualified subscriptions in U.S. are $22 per year payable in advance. Canada $35 (U.S.). Other $40 (U.S.). Single copies paid in advance $4. Company affiliation, title, date and signature must appear on subscription forms.

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ContractorProfile

Creating a Sustainable Answer in Alaska Tenakee Logging Company, Tenakee Springs, Alaska

By Loren J ( Jody) Ellis

I

n a town like Tenakee Springs,

Alaska, where fewer than 200 people live year round, working together is an important part of keeping the township alive and flourishing. Tenakee Logging Company is a prime example of community inclusion, bringing both jobs and economic growth to the place they call home.

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Owner Gordon Chew, his wife Anne Connelly, and their children Sterling and Meryl Chew, not only make their logging business a family affair, they work to include the township while maintaining an ethical and environmentally sound approach to their operation.

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Moving to Alaska

The Chews moved to Alaska in 1999, after a 1995 maritime tour of the inside passage left them longing to make it a permanent home. “We spent a wonderful summer up here as a family,” says Gordon Chew. “We

ContractorProfile explored Southeast Alaska, went fishing and crabbing, and at summer’s end, we were heartsick at the thought of leaving. So we made a plan to return for good.” That plan came to fruition just four years later.

Gordon initially worked as a builder, and as the jobs got bigger, he struggled with the logistics and cost of trying to import lumber for projects from places like Oregon and Washington. “We live in the largest temperate rainforest on the planet,” says Chew.

“We started ordering timber from more local mills but were still faced with very high delivery costs. So we bought our own mill, and eventually, we had a steady stream of timber from the forest service, developing our twoacre special-use site in nearby Corner Bay.”

Big Employer

Since then, the company has become a big part of Tenakee Springs and is one of its largest employers. Harvesting and processing approximately 100,000 BF per year, their timber includes Sitka Spruce, Western Hemlock, Yellow Cedar, and Alder.

Chew focuses on a business model that is dedicated to sustainable logging practices, which means they only do selective cutting.

“The forest service will individually mark trees in an NEPA-cleared unit, never marking or cutting more than one third of the trees,”

Sterling Chew filling a yellow cedar order on the Wood-Mizer LT40 superhydraulic. says Chew. “We carefully fall and yard these marked trees without doing undue damage to the ground or to the remaining trees. A beautiful, viable stand of timber is left, which offers a remarkable deer habitat as the brush, berries, and trees all respond quickly to the openings we create in the canopy.”

Milling Equipment

Mill equipment includes a mobile dimension Model 127 Wood-Mizer LT40 Super Hydraulic, a 1974 Kenworth self-loading log truck fit with an early Crown 3000 loader, and an obsolete Tulsa hydraulic winch for yarding.

“We also have a 32” ramp barge to move our products and a 21-foot Parker launch with a 150 hp Yamaha outboard to tow with,” says Chew. “We are considering

building a sailing scow to help with freight costs out of the national forest. We currently load products onto our barge with a rough terrain forklift at a log transfer facility.”

Additionally, the company uses a JD 410 backhoe, a 1988 Ford F-350 dually with a twin boom Holmes wrecker unit, and a rough terrain forklift at a log transfer facility to load products onto their barge.

Products and Projects

Tenakee Logging offers clients roughsawn, fine-grained old-growth timber as their mainstay, while also producing dimensional lumber, beveled siding, board and batten siding, shakes and shingles, deck packages, fences, boat lumber, and pilings.

The company helps support Alaska’s thriving

Left: A Case 686G Telehandler. Used to load/unload landing crafts, load logs onto our 2 mills, move and load units of lumber and skid trees. Above: Wife Anne Connelly directing a load-out of timber sold to Denali National Park.

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ContractorProfile

The company’s original rig—1988 F-350 1 ton with a Holmes Wrecker unit—Alaska Jammer! Sterling Chew to the left and Gordon Chew to the right. tourist industry by supplying wood to local artists, both native and transplants, including providing instrument wood for native flutes and tone wood. “Our clients include Native carving shops and shipwrights working to rebuild the fishing fleets in places like Haines and Sitka, as well as boat builders, USDA Forest Service, the Department of the Interior National Park Service, and local builders.” Chew says they offer products to tourists who visit the mill site, which sits on

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two acres of national forest.

The company is also very involved in projects close to home, including a milling and reconstruction job that involved the largest and most historic building in Tenakee Springs.

“We are the only local lumber producers so we have the ability to provide and deliver lumber,” says Chew. “The Snyder Mercantile Building was first built in 1899, and we rebuilt it from the pilings up. Our lumber also

TimberWest November/December 2016 www.forestnet.com

helped rebuild the St. Francis Chapel — the town’s only church—as well as many local deck projects, additions, new homes, boats, and barges. While we are not the only ones involved, we do like to think we are rebuilding the infrastructure of our town.”

The construction end of the business is what keeps them the top employer in Tenakee Springs, providing work for local residents.

“Providing employment gives people money in their pockets, which helps spread that

ContractorProfile economic boost around to other local businesses. We have had as many as seven employees at one time, but mainly in the construction department as the logging and milling side has very high workman’s comp costs,” says Chew. “My son and I do the work in partnership and rarely hire any outside help in regard to the logging side of our business.”

With recent debates over a new management plan for the Tongass National Forest, Chew’s focus on sustainable logging practices has become more important to him than ever. “All of our three current contracted timber sales are exclusively old growth,” he says, “but the forest service has a transition policy in place, so our next sale will include a 10 percent young-growth component. We are researching the markets for this timber so we can adapt to the changing policies of the Tongass National Forest, and we are excited to work together with conservationists and the forest service to develop a market for young-growth timber products. This will take some time and experimentation.”

Sterling Chew on our old Crown 3000 loader with a big spruce.

Sustainability

Chew says the biggest issue for him is always about how to best use Alaska’s timber in a sustainable way. “From our perspective, there is no debate about the exportation of clear-cut round logs overseas,” he says. “It is a failed policy that isn’t good for Alaska. While other mills may take exception to it and threaten to close if their export permits are revoked, as a small Alaska mill, Tenakee Logging will do its best to take a leadership role in the transition away from old growth. We have always refused to bid on any clear cutting at all.”

As far as future plans, Chew says they have no plans to grow much larger, as they are just becoming fully self-supporting. “We have no large mills in Southeast Alaska and only two medium-sized mills. The rest of us, more than 30 in all, are small mills,” he says.

“We are a long way from big markets so our business plan is to provide as much timber to the Southeast Alaska economy as we can. We’ve kept all our timber in Alaska to date, with the exception of 16 electric guitar bodies ordered out of Iowa.” Chew says they did obtain a permit for a dry kiln, which will help add value to their products, and he plans to eventually purchase a larger excavator.

While Chew strives to deliver a highquality product to his buyers, he also cares about the economic health of his communities and the future of the forest. “We want to enjoy Southeast Alaska’s temperate rainforest as the unique local asset it is, while keeping the benefits it offers here in Alaska.

These are things that are part of our core personal values, and we are happy that we can transcend that into our family business.”

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ContractorProfile

Innovation Leads to Success Chilton Logging, Inc., Vancouver, Wash.

Lindsay R. Mohlere

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f the definition of innovation is

“the application of better solutions that meet new requirements, unarticulated needs, or existing market needs,” then Craig Chilton of Chilton Logging Inc. fills the bill.

Raised in a logging family, Craig started out in the woods right out of high school, working for his dad and uncle at their logging company. Soon after that, Craig met his wife Robin while attending classes at Clark College in Vancouver, Washington.

“I worked for my dad and uncle for 14 years,” Craig says. “We basically logged our own timber; had about 1,000 acres. We also logged for some private owners, farmer patches really.”

Real Estate and Logging

In their early twenties, the couple bought

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their first piece of property. “We weren’t making much money then, and Robin was a stay-at-home mom. We lived in a doublewide, but we went out and borrowed 10,000 dollars and bought our first piece of property.

Our goal was to buy one piece of property a year,” he said.

Craig’s land acquisition plan was an inventive, yet simple program. He and Robin would find a property, buy it, log it, and then list it. By the time Craig was in his midthirties, he was ready to concentrate on real estate only.

“I gave my notice to my dad and uncle that I was going to move on. At that point, my dad was 60 and my uncle was 64. They decided to retire, so I bought the business,” Craig said. “I told Robin, if we get into logging, we’ll do both logging and real estate, but I’ll only have one side. Period.”

The company is now split into three separate corporations. Chilton Logging Inc.

TimberWest November/December 2016 www.forestnet.com

has grown from its seven original employees to more than 80 and now runs five ground and three tower sides. Headquartered in Woodland, Washington, the company logs from Olympia south to Molalla, Oregon, and from the coast to the Columbia River Gorge.

Chilton Inc. is a land management company that oversees 1,200 acres of its own forestry land managed as future harvest ground and 15,000 acres of land owned by Pacific Corp. The company also manages smaller, private parcels. Chilton Custom Homes Inc. offers high-quality construction and design of new homes.

Major Growth During Troubled Times

After he took over the logging business in 1996, Craig started looking for work, going to state timber sales and knocking on doors.

“RSG gave us our first real job. Probably, just to keep me from bugging them,” Craig

ContractorProfile says with a slight laugh. “We had an SJ4, and we were yarding big wood across a canyon.

We were really out of our league … It’s a wonder we didn’t tip the yarder over or break things in half. We took it easy and got that job done. We did a good job. It was our start.”

Over the next ten years, Craig continued to look for work, and the company experienced positive growth. “We started growing little by little. Land was doing well,” he said.

Then 2007 rolled in. Fuel cost doubled, home building ceased, banks imploded, and the national economy tanked.

Like many other logging outfits, Chilton began losing money, something they had not experienced before. “We had not really seen any bad times. It had all been good. We’d bid jobs and work as hard as you could work, and we still were losing money like no tomorrow,” he says.

Throughout the downturn, Chilton forged ahead, picking up every job that came their way, just to keep cash flowing. Craig says, “The interesting thing that happened— and it wasn’t by design—we grew. Losing money, but growing. It didn’t make sense.

We grew about a third.”

During that time, the company went from 50 employees to about 80. “We had good men. Good used equipment. We had (continued on page 12)

Cat 568 with Waratah HTH625C harvesting head, working along with a Doosan DX 225LL.

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ContractorProfile (continued from page 11) the throttle down, and we still tried to keep our quality really high. Just like when we were a bunch of family guys. Quality was number one,” Craig says.

A Practical Equipment Philosophy

As the economy started to turn around, Chilton’s fortunes also changed. According to the company’s vice president, Josh Chilton, the company began to aggressively upgrade its logging equipment.

“We’re not locked into any particular brand,” he says. “We do prefer to go Caterpillar, but we try to look for the next best thing. We try to demo everything before we buy it. We have eight CAT shovels.”

Josh emphasized that at least 50 percent of the decision to purchase a machine depends on what the operator thinks. “We let the operators make the decision,” Josh says.

“They’re in it ten hours a day, and if they don’t like it, it’s not going to happen.”

As with most large logging outfits, Chilton fields a variety of iron. The equipment stable includes, along with others, a Tigercat LX830C, a 527 Caterpillar, a 568 Cat with a Southstar QS635 head, eight log loaders, of which two are Doosan 225s, five processors, a TimberPro feller buncher, and three Thunderbird yarders as well as a Waratah HTH625C harvesting head.

In the past three years, Chilton has also grown its road building operation, going from just a couple of excavators used to take care of their own spurs, to five excavators, four dozers, a grader, a roller, three highway dumps, and two off-highway dumps.

Additionally, the company runs 12 Kenworth log trucks, with two new 880s and more than 20 other contracted trucks. “We run an average of 350 loads per week,” Josh says.

Always on the hunt to find the right iron that works best for their operation, Chilton has purchased the first ClimbMAX steep

Clinton says they are always on the hunt for the right equipment. Above: Two Doosan DX 225LL log loaders at work at a site. Left: Southstar QS635 head.

slope harvester. The ClimbMAX is a singlecable tethered machine equipped with a felling head and a winch. It is capable of felling trees on slopes of up to 45 degrees and will significantly improve safety and productivity.

Because Chilton does a lot of downhill tower logging, the ClimbMAX single-cable system looked best.

“We get into a lot of places that don’t have roads on top,” Josh says. “We think we can eliminate some of our downhill tower logging because we’ll be able to cut it and log it down the hill. We can make a haywire layout and get the rope to the top of the hill, and then you can cut and downhill shovel log … that’s the big bonus of the ClimbMAX.” Josh adds they’re going to take a 6355 Thunderbird and set it up for grapples. With

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TimberWest November/December 2016 www.forestnet.com

the ClimbMAX, they’ll be able to cut and put the stems in piles to utilize the grapples.

“It’s a big change,” he says. “We think it’s going to make our tower ground more productive. It will eliminate the downhill tower work.”

Setting the Bar Higher

With several contracts working, new equipment, and the expansion of its road building capabilities, Chilton admits that their biggest struggle is finding the right employee.

In the past, working in the woods was a premier job paying top wages. Now, many other industries have surpassed the benefits of the logging life and have made it difficult for loggers to even compete for qualified people.

Chilton Logging Inc. has taken the steps to set the bar higher so their crews do not have to sacrifice to come to work in the woods.

Currently Chilton offers a good family wage, a matching 401K to four percent, paid holidays, one week paid vacation after one year of employment, one half medical and 100 percent L&I. (Washington workers comp is usually split between employee and company.)

“We’re not perfect,” Craig says. “We try hard every day to do the best we can for this industry. We know the problem in the industry is people. This industry has worked hard to make it safer, and we continue to work at that. The bottom line is we need to take care of our people.”

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WoodChipping

Workhorse Wood Chipper

By Paul MacDonald

W

ood residual hauling,

general freight, heavy haul, and freight brokering are the mainstays of Sutco Contracting, based in the small town of Salmo, surrounded by the Selkirk Mountains of B.C.’s West Kootenays region.

As the transportation needs of Sutco’s customers evolved, they have continued to seek new and better ways to maintain their commitment to being transportation specialists.

Responding to a Need

Along the way, they have also ramped up meeting the needs of their forest industry customers, setting up a chipping division, BC EcoChips.

These days, the chipping operation principally meets the needs of one customer in particular, the Zellstoff Celgar pulp mill in Castlegar, B.C. Sutco set up a chipping operation in the region to supply the pulp mill

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and transport the chips using Sutco trucks.

The chipping operation, which includes the transportation of the chips, is an excellent fit for Sutco, with their strength in trucking—and chipping.

“As a general rule, all of the trucking is done with Sutco trucks,” says Sam Beaulieu, who manages the chipping operation on a day-to-day basis.

Chipper Meets Demand

From the start, the BC EcoChips chipping operation has been operating with a Peterson 5000H chipper, from Peterson dealer Woodland Equipment, and Beaulieu says it has been an “incredible workhorse for us—and fast.”

Sam adds, “Watching the chipper right now, the loader operator is taking the pulp wood off the truck, and I can pretty much guarantee that by the time the driver has his trailer loaded and is scaled out, the wood that he brought in will have gone through the Peterson—and will be wood chips on the ground.”

TimberWest November/December November/December 2016 2016 www.forestnet.com www.forestnet.com TimberWest

Depending on the operator, a load of logs goes through the chipper every 20 to 25 minutes.

BC EcoChips has made some changes to the chipper, but Beaulieu says running the Peterson efficiently often has more to do with having a feel for its operations.

“It’s knowing what the chipper likes,” he says. “A lot of times, we will go from the really small stems to the larger stems, and you’ve got to feed the machine differently.

It has three flails, and with the bigger wood, you might turn off one flail and lift the wood because that way, the bigger wood will feed in better. And with smaller wood, you might have all the flails on and turn them up really high.”

They have made some minor changes, though, notes Beaulieu.

“We’ve changed the end of the chip chute,” he explains. “Wood chippers generally work in the bush on a landing, and the chip trucks drive right under the chute, and you hot-load them.

“But we have two chutes; we have one for

WoodChipping hot loading, and we have another chute that we use to shoot the chips to make piles.”

Beaulieu says they have put on some belt shrouds and made some alterations to radiator mounts. “But for the most part, the Peterson is original—they are good machines.”

The operators gauge how to run the chipper. Beaulieu says that lately they have been hiring some younger guys as operators.

“They might have a little less experience, but we train them—show them how to run the chipper and fix it.

“Once they get the hang of it, they just run with it. These young guys just need an opportunity, and if you give that to them, they want to do the work.” One of their newer operators has taken a heavy equipment operator’s course.

They now have four guys that can run the chipper—and their Hitachi 200 log loader, the Link-Belt 290 butt ‘n top, and the two Volvo wheel loaders. The Volvo machines came from Great West Equipment, and they got the Link-Belt from the Inland Group (formerly Parker Pacific).

“So everyone knows how to run every piece of equipment we have here,” says Beaulieu. “That way, they can go from (continued on page 16)

From the start, the BC EcoChips chipping operation of Sutco Contracting has been operating with a Peterson 5000H chipper, from Peterson dealer, Woodland Equipment.

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WoodChipping (continued from page 15) machine to machine all day.” This gives the operation great flexibility if someone needs to take a day off, he adds.

Maintenance

The chipping operation uses dealer services on the mobile equipment and the chipper if necessary, but the emphasis is on doing their own repairs.

“We probably do 80 percent of our maintenance. For example, if a pump goes on the chipper, and we have an extra one, we’ll change it out before we call a mechanic from the dealer.

“I’ve welded the boom on the chipper, refurbished a chip bucket, and surfaced the tips on the grapples,” Beaulieu says.

“We also have a hose press, so we can make 95 percent of the hoses we need for our operation. It’s not very often that we have a lot of downtime due to a hose or something like that. We can usually get the equipment going if we have the parts, and it’s not a major component failure.”

That said, Beaulieu says they have received solid service from Woodland Equipment for the Peterson chipper, and they have a lot of the common parts needed, like bearings and certain coils.

Peterson makes a variety of products including hog grinders, drum chippers, and flails, and some of the parts are interchangeable and well stocked.

Larger components may have to come from Peterson production facilities in Oregon or South Carolina. “If we’re doing major component repairs, we’ll try to schedule it and order the part in advance so there is no delay in getting it.”

One of the two BC EcoChips Volvo wheel loaders at work.

All wood chippers work hard, and the Peterson 5000H is no exception, so maintenance is key to its efficiency.

“In a 12-hour day, we might have to stop three times to change knives, and we’ll grease it and fuel it up. In terms of oil changes and other maintenance, we try to keep all our machines on a similar schedule, so if the chipper is ready for an oil change, so are the loaders.” They carefully track the maintenance that is performed on their machines.

As with all forestry operations working in tough conditions, though, repairs are not always scheduled.

“The chipper is hard on itself, and things

can break. The other day we had a bearing go on the back of the roll case, next to the wheel. That took about 45 minutes, taking the old bearing off, putting the new one on, and some welding — and then checking it to make sure it works properly.”

Beaulieu says that as much as they monitor the chipper’s performance, it can sometimes go down quickly, without warning.

“With some of it, there’s no way you can see it coming. It will run like a top for three months, and then something will happen.”

The Peterson chipper is working on its second motor, with 2200 hours on it. The first motor lasted 14,000 hours. “I was pretty happy with that,” says Beaulieu. “You have to remember that the chipper runs wide open, all day, every day.”

Pulp Logs and Sawlogs

The chipping operation and the transportation of chips, is an excellent fit for Sutco, with their strength in trucking, and now, chipping. Virtually all of the trucking is done with Sutco turcks.

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TimberWest November/December 2016 www.forestnet.com

This past summer, one of BC EcoChips operations was also sorting the wood they received for both pulp logs and sawlogs.

“As a general rule, we’re just chipping.

But we’ve been doing a few different sawlog sorts, as well,” says Beaulieu.

He noted the amount of mountain pine beetle wood they are dealing with has tapered off.

“We are still getting some dry beetle wood, but it’s definitely not the same amount as we used to get,” he says.

“Now, a lot of the stands that are close to us . . . are small, tight, dense trees.” These will be 25 to 30 feet, four-inch at the butt, two inches at the top. “They’re really small trees,” (continued on page 18)

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WoodChipping (continued from page 16) says Beaulieu, and very suited for pulp wood.

They like to have a small sea of wood at the chipping operation. “It’s ideal for us to have at least 500 to 600 loads of logs in inventory at break-up. When the trucks stop hauling, it’s amazing how fast the Peterson can go through that wood.

“When the trucks stop hauling, you sure notice it,” he adds. “You don’t realize how much wood you are burning through.” An average day will see them getting as many as 30 loads of logs.

In five 10-hour days, the Peterson will go through a double-high row of timber, representing 75 loads of logs. Generally, it takes about 40 loads of logs to make 35 loads of chips.

The pulp company Zellstoff Celgar works directly with the loggers who are hauling the wood to the BC EcoChips yard.

Zellstoff Celgar set wood chip standards from the start, and these have to be steadily maintained. “Whatever we produce for them, it has to be the right species, the right size, and can’t have too much bark,” says Beaulieu.

“If they say our bark content is too high, we figure out a way to get the bark content

down. That could mean changing the flail chains or changing the way we feed logs.

There are a lot of things we can do to get the quality they need.”

The work BC EcoChips is doing reinforces the importance of an integrated forest industry, with pulp mills and saw mills and logging operations working together.

Much of the wood they are chipping, had it not been brought out of the bush, would have been burned as slash. In this sense, the

chipping operation is adding value to the wood.

In the other locations where the chipping operation was set up, most of their logs were tree length. The majority of their logs now are cut-to-length, 35 feet and shorter.

BC EcoChips has looked into using the delimbinator on a long-term basis, but decided it would be best to leave that work to the logging contractors and focus on chipping. That’s what they do best.

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Meet the Board

T

he OLC Board chose Growing

the Future Today as the theme of its 2017 Conference. The theme recognizes that, every day, the logging industry continues to provide for the future, by growing trees, providing jobs, educating the public, building wood structures, providing new technology, and more.

2017 Oregon Logging Conference President Jeff Wimer, along with two OLC Board members, Scott Melcher and Robin Tucker, came up with the idea for the theme.

“This theme reflects how our industry continues to grow more trees as we prepare for the future,” stated OLC board member Scott Melcher.

The board is excited to see that the 2017 OLC is shaping up to be even larger than 2016. Conference Director Rikki Wellman says, “We will be using the same buildings we did last year, including the auditorium, which has 13,000 square feet. And we invite

attendees to check out the antique log truck display that will be housed in the Expo Hall.”

The OLC board has continued to work hard to create an event that supports our professional and diverse industry, by providing education, networking opportunities, and state-of-the-art technology displays, as well as ongoing support in the form of

grants and scholarships through the Oregon Logging Conference Foundation program.

The OLC Board of Directors encourages you to register for the Oregon Logging Conference and help us all grow our future in 2017. Visit www.oregonloggingconference.

(OLC continued on page 20)

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19

OLC Foundation Scholarship Auction

M

ark your calendars for the

Thursday

• $5,000 gift certificate toward purchase of a set of Olofsfors tracks, donated by Ponsse, Coburg location • $1,000 gift certificate toward purchase of a set of Michelin pickup tires, donated by Superior Tire Service • Pair of truck seats donated by DSU Peterbilt • Ryan Anderson wood carving • Truck seat donated by Brattain International • Pair of Bridgestone front truck tires donated by Far West Tire Factory

mornings of Thursday, February 23, and Friday February 24, when the OLC Foundation will hold a benefit auction. One hundred percent of the proceeds will go to support scholarships to deserving students to assist with their tuition. These same students are the individuals who will go on to play a vital role in our industry’s future. The auctions will be held during breakfast each morning in the Wheeler Pavilion.

One of the exciting items that will be auctioned this year is a FD750 felling head donated by Southstar Equipment. All proceeds after the reserved bid has been met will be donated to the OLC Foundation Scholarship fund — a 501c3 charitable taxdeductible foundation.

The felling head will be on display at Southstar’s outside exhibit area. If you can’t attend the conference, call the OLC office (541-686-9191) to make arrangements to place a proxy bid.

There will, of course, be many more items to bid on. Here are just a few.

A

• Truck seat donated by Papé Kenworth • Jay Peppard wood carving • Pair of Michelin front truck tires donated

by Farwest Tire Factory • Truck seat donated by Gold Coast Truck Repair To find out more about the auction and the OLC Foundation Scholarships, visit www.oregonloggingconference.com. If you are interested in donating an auction item to this worthy charity, please call (541) 686-9191.

Panels and Seminars at a Glance

ttendees rely on the OLC

to offer a wide range of panels and seminars and earn professional logger credits. This year is no different. Following is a brief look at the topics attendees will have to choose from.

THURSDAY

Better Ideas/New Technology in Logging Panel – 2 OPL Credits Moderator: Mike McKibbin, Stimson Lumber Co. • How Drones Can Be Used in a Forestry/Logging Environment Joe Vaughn, Skyris Imaging • Legal Requirements When Using Drones Craig Russillo, Attorney, Schwabe, Williamson & Wyatts

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Friday

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• Computerized Diagnostics in the OffHighway Industry Tyler Robertson, Diesel Laptops • Tethered Logging Update Matt Mattioda, Miller Timber Services • Timber Navi Matt Flood, John Deere Forestry • Timbeter-Innovation Smart-Device Solution for Timber Measurement Vallo Visnapuu, CEO, Timbeter

FRIDAY

Oregon Forest Practices Act Compliance Audit - 3 FP Credits Moderator: Terry Mann, LL Forestry • Tethered Logging - Presentation on the Ponsse/Herzog system Matt Mattioda, Miller Timber Lukas Herzog, Herzog Forsttechnik AG • Safety Concerns with Tethered Logging/ OSHA Waiver Process Tom Bozicevic, Oregon OSHA • Update on New Riparian Management Area Rules Josh Barnard, Field Support Unit Mgr, Private Forests Div., ODF • Industrial Fire Protection Tom Fields, Fire Prevention Coordinator, ODF

TimberWest November/December 2016 www.forestnet.com

• Overview of the FERNS Website for Online Notice of Operations Permits Joe Touchstone, ODF

Washington Forest Practices

• One Year to Understand the Challenges We Face Jenny Knoth, PHD, Director Environmental Affairs, Green Crow • Road Maintenance Do It. Or Be Done!

- A look at Washington’s RMAPs Program Dave Roberts, Port Blakely Tree Farms • Bridges Over Troubled Waters - Bridge Inspection Programs, Unexpected Conditions and Repairs Steve Faulkner, PE, Pacific Forest Resources Inc.

Washington Forest Practices Seminar - 2 WAFP or 2 OPL Credits

Moderator: George Kirkmire, WCLA • RMAP Fish Passage Issues Sam Lovelace, Manager, Longview Tree Farm road maintenance and construction operations, Weyerhaeuser • Unstable Slope Identification Brandon Austin, WA DNR

For Information Call: 541-686-9191 www.oregonloggingconference.com

Earn up to 10 Credits

B

y attending seminars at the OLC, you can stay up to date on the most current rules, regulations, and techniques and earn Professional Logger Credits while doing so.

Loggers can earn up to ten credits by attending panel discussions and presentations at the Oregon Logging Conference. As an added bonus, all registered logging companies who come and enjoy the OLC can earn two additional Professional Logger credits

just for attending the show. These credits are applicable toward Professional Logger’s Certification and fulfillment requirements as outlined in the Sustainable Forestry Initiative.

The hole punch system is used to track credits earned. All paid registered members of the OLC will receive a punch card in the registration packet. At the end of each seminar or panel discussion, someone will be available to punch your card as you exit.

Registration Registration for the 79th Oregon Logging Conference couldn’t be easier.

Just log on to www.oregonloggingconference.com and either register online or download a complete 2017 Registration Form.

If you have any questions, please call (541) 686-1919.

We’ll see you at the show.

TENTATIVE PROGRAM AND SCHEDULE OF ENTERTAINMENT W EDNESDAY, FEBRUARY 22, 2017 - Activities Held At The Eugene Hilton 4p.m. – 6:30p.m.

Pre-Registration – Meet & Greet - “Hosted Beer & Wine” – Sponsor: Wilcox and Flegel

4p.m. - 10p.m.

Doors Open for Silent Auction benefiting “Talk About Trees” OWIT Dinner and Live Annual Auction – Call OWIT 503.831.1593 to order tickets.

“Hosted Beer & Wine” – Playwrights Hall, Eugene Hilton

6:30p.m.

THURSDAY, FEBRUARY 23, 2017 - Program Sessions Held At Lane County Fairgrounds 7a.m. - 4p.m.

Registration - Main Convention Center Lobby

8a.m. - 5p.m.

Equipment Displays Open

7a.m. - 8a.m.

Opening Session Breakfast - Wheeler Pavilion – Sponsors: Peterson CAT & Caterpillar

8:00a.m. – 11:00a.m.

Oregon Logging Conference Foundation Auction: Auctioneer Jaime Yraguen, Basco Logging Call to Order and Opening Remarks: Wheeler Pavilion - 2 PL Credit President's Address: Jeff Wimer, 2017 President, Oregon Logging Conference Keynote Speaker: Merv George Forest Supervisor F.S.,Six Rivers National Forest, Eureka, Ca.

10a.m. - 1p.m.

Elementary School Education Tours, Presented by: Oregon Logging Conference, OWiT & Forests Today & Forever

1:30p.m.

Operators of the Year Presentation – Oregon Department of Forestry

2:00p.m. - 4:00p.m. Better Ideas / New Technology - 2 OPF Credit � How Drones Can be Used in a Forestry / Logging Environment, Joe Vaughn, Skyris Imaging Legal Requirements When Using Drones Craig Russillo, Attorney, Schwabe, Williamson & Wyatts. � Computerized Diagnostics in the Off-Highway Industry, Tyler Robertson, Diesel Laptops � Cut-to-length With a Tethering Systems, Matt Mattioda, Miller Timber Services, Philomath, Ore. � John Deere ForestSight Technology Solutions, Matt Flood, John Deere Forestry � Timbeter-Innovation Smart-Device Solution for Timber Measurement Vallo Visnapuu, CEO, Timbeter 5p.m. - 6:30p.m.

Sawdust Bowl "Hosted Beer & Wine – Performance Hall, Convention Center Sponsors: Koos Transportation, Carson Davis Oil and Chuck Bracelin Trucking

FRIDAY, FEBRUARY 24, 2017 - Program Sessions Held At Lane County Fairgrounds 7a.m. - 4p.m.

Registration - Main Convention Center Lobby

8a.m. - 5p.m.

Equipment Displays Open

7a.m. - 8a.m

Hosted Breakfast - Wheeler Pavilion – Sponsor: Pape’ Group (Ticket included with paid registration)

8a.m.

Oregon Logging Conference Foundation Auction: Auctioneer Jaime Yraguen, Basco Logging (OLC continued on page 22)

8:30a.m. 11:30a.m.

Oregon Forest Practices Seminar - 3 FP Credits - Wheeler Pavilion www.forestnet.com 2016 | TimberWest 21 | November/December | November/December 2016 | TimberWest 21 � Tethered Logging - Presentation on the Ponsse www.forestnet.com /Herzog system

FRIDAY, FEBRUARY 24, 2017 - Program Sessions Held At Lane County Fairgrounds 7a.m. - 4p.m.

Registration - Main Convention Center Lobby

8a.m. - 5p.m.

Equipment Displays Open

7a.m. - 8a.m

Hosted Breakfast - Wheeler Pavilion – Sponsor: Pape’ Group (Ticket included with paid registration)

8a.m.

Oregon Logging Conference Foundation Auction: Auctioneer Jaime Yraguen, Basco Logging

8:30a.m. 11:30a.m.

Oregon Forest Practices Seminar - 3 FP Credits - Wheeler Pavilion � Tethered Logging - Presentation on the Ponsse /Herzog system Matt Mattioda ,Miller Timber and Lukas Herzog, Herzog Forsttechnik AG � Safety Concerns with Tethered Logging/OSHA Waiver Process Tom Bozicevic, Oregon OSHA � Update on New Riparian Management Area Rules Josh Barnard, Field Support Unit Mgr, Private Forests Div., ODF, Salem, OR � Industrial Fire Protection, Tom Fields, Fire Prevention Coordinator, ODF, Salem, Oregon � Overview of the FERNS Website for Online Notice of Operations Permits Joe Touchstone, ODF, Salem, Oregon

8:30a.m. 10:30a.m.

Washington Forest Practices Seminars - SE Meeting Room Exhibit Hall, 2 WAFP or 2 PL Credit � One Year to Understand the Challenges We Face Jenny Knoth, PHD, Director Environmental Affairs, Green Crow � Road Maintenance Do It. Or Be Done! - A look at Washington’s RMAPs program Dave Roberts, Port Blakely Tree Farms � Bridges Over Troubled Waters - Bridge Inspection Programs, Unexpected Conditions and Repairs. Steve Faulkner, PE, Pacific Forest Resources, Inc., Enumclaw, Washington

10a.m. – 11:30a.m. Business Seminar 1 - 1 PL Credit - SW Meeting Room – Exhibit Hall “How to Build a Kick @$% Crew” � Wendy Farrand, Training Consultant, Limerick, Maine 10a.m. – 11a.m.

Hands On Seminar 1 – 1 PL Credit - Outside Display “Log Scaling Basics and Sorting Logs for Export” � Dave Sabol, Pacific Rim Log Scaling Bureau, Lacey, WA

11:30a.m. – 3:30p.m.

"OLC" Log Loader Competition – Sponsor: Triad Machinery and Linkbelt - Outside Display

1:00p.m. – 2:p.m.

Business Seminar 2 – 1 PL Credit - SW Meeting Room - Exhibit Hall – Green Area on Map "Loggers for the Future" � Wendy Farrand, Training Consultant, Limerick, Maine

1:00p.m. – 2:00p.m.

Hands On Seminar 2 – 1 PL Credit State of Oregon Fire Prevention and Suppression Requirements for Industrial Operations during Fire Season � Personnel from Western Lane District, Oregon Dept. of Forestry, Veneta, OR

1:30p.m. - 3:30p.m. Washington Forest Practices Seminar - SE Meeting – Exhibit Hall – 2 WAFP or 2 PL Credit � Sam Lovelace, Longview Tree Farm Weyerhaeuser, “RMAP Fish Passage Issues” � Brandon Austin, WA DNR, “Unstable Slope Identification” 2:30p.m. - 3:30p.m. Business Seminar 3 – 1 PL Credit - Wheeler Pavilion “Updates on Steep Slope Logging with a Feller Buncher” Steep Slope Logging from a Land Manager’s Perspective � Brandon Miller, Potlatch Corp., St Maries, Idaho 2:30p.m. - 3:30p.m. Exhibitor Hands On Seminar 3 - 1 PL Credit – Auditorium ,Valley Freightliner Inside Display Evolution on Diesel Exhaust Emissions � Clint O’Neill, Corporate Trainer, Valley Freightliner 5p.m. - 6:00p.m.

Sawdust Bowl "Hosted Beer & Wine" Performance Hall, Convention Center Co-Sponsors: US Bank Columbia Pacific Region and Ritchie Bros. Auctioneers

12:30p.m. - 3p.m.

LADIES' DESSERTS FOR DREAMS – Charity Event for SafeHaven Humane Society Enjoy Decadent Desserts Donated from area Restaurants and Bakeries

7p.m. – 11p.m.

79 OLC Celebration Buffet Dinner & Dance – Playwrights Hall, Eugene Hilton Co-Sponsors: General Trailer and Peerless Corp.

Doors Open - Hosted Beer & Wine Tasting Buffet and Dancing to Bump in the Road until 11pm.

EVENTS HELD AT THE EUGENE HILTON

7p.m. – 8p.m.

7p.m. – 9p.m.

th

SATURDAY, FEBRUARY 25, 2017 - All Activities Held At Lane County Fairgrounds 9a.m. - 2p.m.

All Exhibits Open To Public – Convention Center & Parking Area Family Fun and Education Activities – Wheeler Pavilion –Sponsor: KEZI TV Wood Carvers, High School Forestry Skills Competition - Outside Display Area Sponsors: Nygaard Logging / Warrenton Fiber

10a.m. - 12p.m.

"OLC" Log Loader Competition – Sponsor: Triad Machinery & Linkbelt - Outside Display

November/December 2016 www.forestnet.com 22 TimberWest 22 TimberWest| | November/December 2016| | www.forestnet.com

FireColumn

Photo courtesy of Global Supertanker LLC

New Technology and the War Against Wildfire

By Lindsay Mohlere

E

Advanced Design Fire Shelters

ver since the discovery of the

wheel, technology has driven our lives.

Whether it’s in the home, on the job, or at play, new tech has come to dominate the way we do things.

On the other hand, when it comes to fighting wildfires, new technology in wildland firefighting has been slow to evolve.

However, over the years there have been a few notable advances in man’s quest to solve the problems Mother Nature and its demon, Fire, throw down.

The Pulaski hand tool, invented in 1911

by Ed Pulaski, is still the tool of choice.

Other notable advances in wildland firefighting have been the use of smokejumpers in 1940; the use of aircraft in 1947 to drop water or retardant; and the use of fire shelters, first developed in 1959. Carrying a fire shelter became mandatory in 1977 after three fatalities occurred in the Battlement Creek Fire.

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Currently, research is being conducted

by NASA to design a better emergency fire shelter for wildland firefighters. The NASA Convective Heating Improvement for Emergency Fire Shelters (CHIEFS) project was started as a result of the deadly 2013 Yarnell Hill fire in Arizona. Nineteen Granite Mountain Hotshots were killed when the fire overran their position, and the fire shelters they deployed failed.

NASA, along with the Missoula Technology and Development Center (MTDC), hopes their decade of experience developing flexible heat shields can be applied to wildland fire shelters. An improved shelter is expected by 2018. Not a minute too soon.

On November 29, 2016, in Yarnell, Arizona — as a tribute to those firefighters who lost their lives — the Granite Mountain Hotshots Memorial State Park was officially opened. The park is located at the end of a three-mile trail from the highway to the spot where the flames trapped the hotshots.

TimberWest November/December 2016 www.forestnet.com

Aerial Attack — Big Is Better

We all know about Monster Trucks, now there’s a Monster Airplane that should have a huge impact on wildland and marine firefighting, as well as oil spill remediation.

The long-awaited B747-400 Global Super Tanker, from Global SuperTanker Services LLC, received its final safety and operational approvals from the FAA on September 12, 2016.

Christened “The Spirit of John Muir,” and designated by the Interagency Tanker Board as Tanker 944, the aircraft can carry 20,000 gallons of water or retardant, either of which can be released all at once over a three-mile stretch, or at variable rates from its pressurized tanks, producing a tailored response to the firefighting need.

Based in Colorado Springs, T-944 is the world’s largest, fastest, and longest-range aerial firefighting asset. It flies at 600 mph and can reach any place in the U.S. under three hours.

With fire season over, or nearly over,

FireColumn the T-944 deployed to Israel at the end of November to join a team of Israeli and international firefighters battling the spread of massive, arson-caused wildfires that have prompted thousands of evacuations and destroyed hundreds of homes.

Drones — the Good Side

In the last issue, I threw a few punches at the dolts who fly their consumer unmanned aerial vehicles (UAV), otherwise known as drones, through federal restricted airspace to take videos or still photos of the raging infernos below. These fairy-tale pilots either don’t know or don’t care that their little whirligigs create a mid-air collision environment, endangering the lives of the pilots and crews in the air and on the ground.

When it comes to fighting forest fires, drones in the hands of amateurs are problematic, but in the hands of firefighting professionals, drones can be extremely helpful.

Still in the experimental stage, drones can give ground crews important information in real time. This real-time data will help reduce risks on the ground and, potentially, take manned aircraft and pilots out of harm’s way.

This year, the University of Montana Fire Center conducted drone flights on the Roaring Lion Canyon fire to map hotspots.

It is the first use of drones on an actual fire.

More testing is planned with the expectation that UAVs will have a positive impact on how firefighting assets are managed and deployed.

More on Dumb Guys and Drones

Because of the drone intrusion problem, a prototype system has been developed with the Department of the Interior (DOI) along with DJI, the largest U.S. manufacturer of UAVs, and AirMap, a provider of airspace intelligence and navigational services to unmanned aircraft.

AirMap now obtains wildfire information directly from DOI’s incident command system and immediately sends it to a drone-control apparatus creating a “geofence” around wildfires. When drones hit the virtual boundary, the geo-fencing software overrides the flight controller and forces the drone to hover in place. A drone deployed inside the barrier will be unable to fly.

Other anti-drone methods are being developed by the Department of Defense and a handful of startups. The developing technology ranges from detection systems to software that forces drones to go home or land safely and lasers that can shoot down unwanted drones.

In this case, thanks to new tech, I guess you can fix stupid.

What’s Burning Now!

Fire season has basically come to an end in the west, but has ramped up in the southeast.

There have been over 30 large wildfires in North Carolina, South Carolina, Georgia, Tennessee, Alabama and Kentucky. Over 120,000 acres have burned across the states and 6.300 firefighters, many from the west, have been deployed to fight the fires. Despite recent rains, drought conditions still remain.

In Sevier County, home of Gatlinberg, Tennessee, 14 people have lost their lives and another 134 were injured as a result of the 891 acre Cobbley Knob fire. The fires gnawed away over 1,600 structures, decimating Gatlinberg. Two teens were charged Wednesday, December 7, with aggravated arson in connection to the deadly wildfires. ___________________________________ (Source: InciWeb, Wire Service Reports) That’s a wrap. Stay safe out there.

(Talkback – TWfirecolumn@gmail.com) TW

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www.forestnet.com November/December 2016 TimberWest

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Region 6 2016 Timber Stats

The AFRC reported that Region 6 awarded 96 percent of the target assigned to it by the Washington Office, selling 589 million board feet (MMBF) of the 610 MMBF target. Approximately 70 MMBF of the accomplishment came from salvage sales. As seen in the chart below, the accomplishments ranged from a low of 12 percent to a high of 122 percent. Forest level shortfalls were mostly from no-bid sales.

Some other statistics for the total program are: 83% Sawlogs, 9% Biomass, 8% Fuelwood, 30% Stewardship contracts

AFRC Welcomes New Members

AFRC has two new members from the Northwest, Tricon Timber and T2 Inc. Tricon Timber is the largest privately owned mill in the state of Montana. It’s a full-service facility, which utilizes 100 percent of all wood products with zero waste.

T2 focuses on grinding, logging, chipping, land clearing, biomass consolidating, and forest thinning. Launched in 2006, T2 is headquartered in Sweet Home, Oregon. T2

uses 100 percent of all raw materials coming from the forest; sawlogs go to the lumber mills, tops are classified as chip logs and

are processed onsite into clean paper chips, and the left-over limbs and bark are ground onsite for biomass.

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TimberWest November/December 2016 www.forestnet.com

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Daniel Muramoto Named Marketing Manager

DENSO Products and Services Americas Inc., a subsidiary of leading global automotive supplier DENSO Corp., has named Daniel Muramoto marketing manager of the company’s aftermarket automotive products and services, as well as its MovinCool, Robotics and ADC divisions. In this position, Muramoto is responsible for directing DENSO’s team of marketing professionals handling advertising campaigns, product websites, social media, trade shows, product

catalogs, technical publications, external affairs, and corporate communications.

Harry Merlo dies at 91

In 1973, Georgia-Pacific spun off Louisiana-Pacific, and Merlo became its first chief executive. He ran the company for 22 years, much of it from his corporate suite atop the U.S. Bancorp Tower, one of the tallest buildings in town.

Merlo built Louisiana-Pacific into a $3-billion-a-year company. It employed 13,000 and operated 46 sawmills, three pulp mills and other facilities.

Morbark Names New CEO

Morbark, a manufacturer of equipment used in forestry, recycling, tree care, landscaping, sawmill and biomass markets, announced the appointment of David Herr as Chief Executive Officer. In addition to being an active member of the current Morbark Board, he brings extensive knowledge from

David Herr experience with both products and services companies. He replaces Dan Ruskin, who resigned due to health issues.

“The Board is thankful for Dan’s leadership over the past six months as the Company has transitioned to the next phase in its development,” said Ray Whiteman, Chairman of the Board. “Our thoughts are with Dan and his family, and we wish him a speedy recovery.”

Barko Names Talaga Product Manager for Forestry Equipment

Steve Talaga has been appointed Product Manager for forestry equipment manufacturer Barko Hydraulics LLC, part of the Pettibone Heavy Equipment Group. In his new position, Talaga is responsible for product line development, market analysis, and general support and interaction with Barko dealers and customers.

Prior to his new position, Talaga worked for sister company Pettibone/Traverse Lift LLC for four and a half years, first as a service technician and then as a design engineer. Talaga has a Bachelor of Science degree in mechanical engineering technology from Michigan Technological University.

TW 28

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TimberWest November/December 2016 www.forestnet.com

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Visit your nearest Pacific Northwest Kubota Engine dealership to ensure performance and productivity with Genuine Kubota parts, engines and generators.

Find your dealer at: www.cascadeengine.com

EducationalSpotlight

Three Ways to Extend the Life of Your Logging Equipment

By Joe Grycko, Pacific Power Group Industrial Engine Division

Y

our machines and workers are the lifeblood of your logging operation. Whether you’re yarding, skidding, or shoveling, getting the most value from your equipment can help your logging operation run more efficiently and add more to your bottom line.

Here are a few practices to consider that will lengthen the life of your logging equipment or improve its performance.

1. Plan a Detailed Survey of Your Equipment

While you’re an expert at operating your equipment, do you really know how your typical day-to-day operations affect the inner workings of your machinery? Planning regular surveys of your equipment can give you a better understanding of how different landscapes and activities affect your machinery, help you plan for necessary service downtime, and prevent larger service issues.

Once you have a better understanding of the current state of your equipment, you can take steps to mitigate any issues you find and be on a path to maximize the life of your equipment. In every field, the cost of downtime far outweighs the cost of a good preventative maintenance plan. While you can’t prevent every issue, you shouldn’t let preventable issues stop your workday.

When conducting an equipment survey, it’s vital to use a checklist to ensure that all parts of your machinery have been reviewed and checked over for wear and tear or major malfunctions. Make sure to include all hydraulics, the transmission, and engine components.

Use the first survey as a baseline to plan

how often you’ll need to conduct surveys in the future.

Choose a regular interval to survey your equipment that you can commit to, which works with your operation and your equipment manufacturer’s recommendations.

2. Make an Effective Service Plan and Stock Key Parts

The most important part of making an effective service plan that will extend the life of your logging equipment is to be proactive.

Instead of reacting to issues as they occur in the field, planning for regular maintenance such as fluid analysis and engine diagnostics can help you eliminate downtime and increase the amount of productive hours you get with each piece of equipment.

Your plan should be based on your particular equipment, how easy it is to service, and the cost versus benefit associated with servicing. In the long run, preventative maintenance on your machinery can add significant dollars to your bottom line. A local OEM or engine service dealer can also help you develop an ongoing maintenance plan for your equipment or answer any questions (continued on page 32) 30

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TimberWest November/December 2016 www.forestnet.com

© 2015 Husqvarna AB. All rights reserved.

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Husqvarna’s XP ® chainsaws are constantly tested under harsh conditions that require power, precision and durability. Our engineers balance all that power and speed with low weight and world class ergonomics. Together that generates excellent maneuverability, so that you can work both faster and safer.

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EducationalSpotlight (continued from page 30) you have about servicing a particular piece of equipment.

Here are a few tips that can help your service plan be more effective: Educate your workers. Teach them to look for key factors that indicate your equipment may be in need of service. This could be signs of lower performance, particular sounds, or lower fuel efficiency.

Plan ahead. Scheduling maintenance for power and hydraulic systems will keep those systems working more effectively.

Make an individual service plan for each piece of equipment. You know how your equipment functions in your daily work environment better than anyone else. If there’s one piece of machinery that is used more frequently than other equipment on your jobsites or for longer hours, you may need to step up the service frequency for that piece of equipment.

Consider an outsourced service provider.

To maximize the efficiency of your workforce, an outsourced maintenance provider may be a good solution. Using factory certified technicians and state-of-the-art equipment can ensure maintenance is completed at regular intervals and to factory standards, and helps keep you in line with your warranty.

To increase your service plan’s effectiveness, one option is to stock key parts. For minor issues, having a stock of critical parts on hand can allow your team to make a quick fix. When your machinery has a serious malfunction, having parts available can have a large effect on your downtime and service costs.

“Most service providers simply cannot stock parts for all unique applications of each piece of machinery. We coach customers to

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stock a few key parts so that during emergency situations, our field techs are able to service equipment much faster and save our customers significant cost,” said Dan Miller, Off-Highway Field Service Manager at Pacific Power Group. “By stocking a few important parts, you can take better advantage of your service providers and get your equipment up and running faster.”

3. Repower for Better Performance

After years of successful service, your forestry machinery might be a little tired and less efficient — but still generally in good shape. Repowering with a remanufactured engine and refurbishing your equipment can help give your machinery years of additional life.

A few factors to consider when thinking about an equipment repower: • Take into account the current condition

TimberWest November/December 2016 www.forestnet.com

and remaining useful life of the piece of machinery. Since a remanufactured engine can add approximately 20,000 hours or more to your equipment’s life, you want to ensure that it can last that long.

• With the value that remanufactured engines offer, you can save significant costs instead of making a large capital investment in new equipment. If you can repower for lower costs, those dollars can be reinvested elsewhere in your operation.

• Depending on the type of engine currently in your equipment, you can typically replace it with the same or similar remanufactured engine. This saves significant downtime for engineering that must occur when integrating a different type of engine. Repowering with a remanufactured engine also allows you to skip EPA End Product Questionnaire testing, which can take up to a week to complete.

Consult your engine manufacturer, dealer, or distributor for compliance with the EPA regarding the use of a remanufactured or new engine in an equipment repower. In many cases you may be able to use an engine that requires little or no change to your equipment support systems.

Reman (remanufactured) engines are typically updated with the latest engine technologies and have been rebuilt to make them nearly as good as new, while offering significant cost savings. Reman engines such as those made by Detroit Diesel can improve your equipment’s performance and dependability in the field, plus increase the service life. They can also help your equipment operate safely and more reliably, with better fuel economy.

Making these practices a priority in your equipment program can help you extend the life of your equipment and see greater value for years to come.

TW

PLCReview

Pacific Logging Congress Gathers in San Diego

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nder the theme Improvise Adapt - Overcome, the 107th Pacific Logging Congress (PLC) held its convention in San Diego November 6 – 9, 2016.

President Doug Mays opened the convention reading a quote spoken by George Cornwall (the first secretary of PLC) in 1909.

Cornwall said, “Logging is an engineering science ... the average logger must be a man of good executive ability and possess the power of initiative. He must work with difficult problems, whose solution determines the success or failure of his camp.

Therefore, loggers should have frequent contact if they expect to keep pace with the changing times and benefit from associated effort and a frank exchange of views…”

“Those words still ring true today,” Mays said.

Convention attendees included representatives from the United States, Canada, and New Zealand, who learned about important and timely topics such as Fire in California; Who Needs Loggers and Why: The Evolution of Forest Ownership and Legal Structure; Steep Slope Logging; Challenges Faced by Landowners, Loggers, and Mills; Optimizing the Forestry Supply Chain; Adapting LEAN for the Woods;

and a World Market Overview of Logs and Lumber.

The gathering concluded with a dinner and auction, raising $30,000 for the Pacific Forest Foundation, which funds scholarships and other educational activities.

All were invited to attend the 108th Pacific Logging Conference, which will take place in November 2017 in Scottsdale, Arizona. Specific dates and location of the 2017 congress will be announced soon.

Attendees were also asked to mark their calendars for PLC’s 8th Live in the Woods Show, which is being planned for 2018 on the Oregon State University forest near Corvallis, Oregon.

TW

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www.forestnet.com November/December 2016 TimberWest

33

Spotlight

Forest Residuals Take to the Air First air biofuel flight on November 14, 2016

By Barbara Coyner

“

I

f it smells a little bit like

Christmas trees as you are flying across country today, it’s because this plane is being fueled, in part, by 20 percent biofuel that is sourced from forest residual products found right here in the Pacific Northwest, our home.

So it’s a pretty exciting demonstration flight we’re doing today to show that a market exists for biofuels, and we are excited to have all of you on board …”

Historic Flight

With that announcement in the jet’s cabin, the Alaska Airlines 737 taxied down the Sea-Tac runway and was off, winging its way to Washington D.C. The November 14 nonstop flight carried its share of dignitaries, along with regularly booked passengers who were given the option to choose another flight. After hearing about the development of the jet fuel and the historic nature of the flight, however, virtually all the commercial passengers chose to stay on board. Also on board was a contingent of Northwest Advanced Renewables Alliance (NARA) members who have been working on the novel biofuels project for over five years.

When the plane touched down at Reagan International, Secretary of Agriculture Tom Vilsack greeted the passengers, underscoring the part USDA played with its initial $39.6 grant for research. The historic flight signaled the serious progress in developing alternatives to fossil fuels, and the potential part the Northwest timber industry can play in green energy.

“This isn’t a lab experiment, it’s a social experiment,” said Washington State University Professor Mike Wolcott, one of the instigators of NARA. He noted that bringing together the diverse blend of timber industry people, academics, congressional members, and rural specialists provided a rare opportunity to broaden dialogue. “Education goes in both directions,” he said, of the partnership that also featured Alaska Airlines and biofuel producer Gevo. “We all worked hand in hand.”

Creating the Fuel

Wolcott described the research of biomass

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Image of the plane and some of the dignitaries on the flight, including Craig Rawlings and Tom Vilsack, Secretary of Ag, who is standing in the center. as thorough and rigorous, including sampling more than 20 harvest sites using GIS mapping, and analyzing everything from slope contours, to the use of rubber tires on sites and factoring in numerous transportation challenges.

Because forest residues vary in moisture content, one big focus was getting the load weights consistent. Most loads dropped below the allowable weight due to moisture reduction, as truckers such as Montana’s Kevin Jump stepped in to help with the analysis. Additionally, Potlatch Corporation furnished its various long-term data sets, and area tribes brought in their experience, as did Lane Forest Products at Springfield, Oregon. Forest residuals were drawn from both private and tribal lands.

Wolcott has long been eager to put his own forestry-related experience to work in making the timber industry even more efficient. “I often wondered why we were always looking for new feed stock when we have a perfectly good one right here,” he said, adding that the pulp industry isn’t competing for branches and other forest residue, which have traditionally ended up being burned as waste in slash piles.

The fuels and chemical side of biomass especially drew the attention of Wolcott and others on the NARA team. Profitability was also an issue. “But the hallmark has always been utilization and to use every piece we can,” he added. “There’s the environmental side and the need for rural jobs too. The rural economy is important to me, and there can be job growth in biomass. The challenge is to bring all the factors together.”

Finding a Producer

Among the biggest factors of the jet fuel experiment was finding a serious producer of

TimberWest November/December 2016 www.forestnet.com

the biofuel. NARA turned to Gevo, an established company that produced the 1,080 gallons of biofuel for Flight 4 at a demonstration plant in Minnesota, refining it at a Texas refinery.

The fuel had to meet American Society for Testing and Materials standards before the flight could proceed. But it’s a long leap from a lab experiment to making the jet fuel commercially. Pat Gruber, Gevo’s CEO, signaled that his company is ready to go the extra mile to bring forest residue into the mix of biofuels already produced by his company.

NARA member Craig Rawlings echoed Gruber’s optimism about commercially producing jet fuel from biomass. “Gevo has invested $50 million of its own money in this, and that is huge. They intend to get it to the commercialization stage. Also, the airlines want it to happen so they can get away from fossil fuels.”

Washington State Congressional Representatives Suzan Del Bene, Dave Reichert, and Denny Heck were among those flying on the historic flight and were pleased about the progress.

Senator Maria Cantwell voiced her support, as well, saying, “Today’s flight comes after years of investments to help the aviation biofuels industry take off. By creating these sustainable biofuels, we will revitalize our rural agricultural communities, foster economic growth, reduce greenhouse gas emissions, and cut our dependence on foreign oil, while growing our competitiveness in global markets.”

With the historic November 14 Alaska flight now in the books, the sky might indeed be the limit for the Northwest timber industry.

TW

New SARG-42 Sweep Action Rock Grapple

Worksaver Inc. introduces the new 42” SARG (Sweep Action Rock Grapple) for mini skid steers/compact tool carriers for handling rocks, brush, logs, stumps, debris, scraps, and more. The patent pending design allows operators to sort large or small rocks and debris with just one tool.

The front grapples operate in a sweeping action to pull rocks or debris into the bucket for easy site cleanup.

Grapple design then retains the rocks or debris while the operator rocks the attachment to sift out the dirt. Lower tines are 1” solid round and are spaced 3” apart. Optional bolt-in 10-gauge solid bottom is available for those jobs requiring all the material to be retained in the bucket. www.worksaver.com

Tigercat 632E Skidder

The 632E skidder is powered by the Tigercat FPT N67 engine, which provides full emissions compliance for Tier 2 and Tier 4f along with excellent fuel economy.

The Tier 4f engine delivers 285 hp at 2,200 rpm. The Tier 2 option delivers 288 hp at 2,100 rpm.

while increasing performance by 10%, on average. www.tigercat.com

Doosan DX380LL-5 Log Loader

The DX380LL-5, Doosan’s new, larger log loader, assists with shovel logging, sorting, and log-loading tasks.

Similar to other Doosan models, the DX380LL-5 log loader is designed for demanding logging applications. Weighing approximately 113,500 pounds and powered by a Tier 4-compliant, 318-horsepower diesel engine, it is the first Doosan log loader in this size class.

The DX380LL-5 features high swing torque, approximately 44 feet of reach at ground level, and powerful hydraulics, and it’s primed for peak performance when working on forestry tracts. Durable boom, arm, and heel cylinder guards, as well as machine guarding, help minimize damage and machine downtime. DoosanEquipment.com

support, allowing the machine to easily traverse rough terrain as it moves from one wood pile to the next. The RTC also includes front and rear planetary drive axles.

The unit can travel up to 12 miles per hour and is equipped with a power shift transmission that allows operators to shift on the fly. Additionally, the RTC delivers approximately 21,000 pounds of drawbar pull. This raw power is enough to pull a small log trailer, move easily through muddy conditions, and climb steep grades of up to 45 percent. www.barko.com

ASV RT-120 Forestry Compact Track Loader

ASV LLC has introduced the Posi-Track RT-120 Forestry. The large-frame RT-120 Forestry features more power and productivity with less ground disturbance.

Maximum power and torque, along with superior cooling capacity, make the RT-120F capable of using the largest attachments for long periods of time without bogging down or overheating. The rugged machine makes mulching, brush cutting, and highway and utility work faster and easier.

Like all ASV equipment, the RT-120F includes maximum efficiency hydraulics and

Barko Rough Terrain Carrier

The new Rough Terrain Carrier (RTC) loader package is the most maneuverable and powerful log loading machine in the Barko product lineup. It provides increased productivity through a sharp turning radius and impressive pulling capacity.

The 4-wheel-drive RTC loader package features an exceptionally stable rigid frame

innovative, high-capacity cooling systems that allow for more work done in less time.

In addition, the machine achieves versatility on all surfaces, using ASV’s patented PosiTrack undercarriage. www.asvllc.com

Bandit Hand-Fed Drum Chippers

Bandit Industries has reintroduced its extremely popular hand-fed drum chipper line with a new look, minor enhancements, The 632E can be equipped with the largest grapple offered on any four-wheel skidder says the company. The larger 23 ft² option has a tip-to-tip opening of 152 inches. The hydraulic system and driveline have been extensively upgraded. Several components and structures have been upsized for improved durability.

The 632E uses a larger main hydraulic pump and valves for faster operation and better multifunctioning. The hydraulic cylinders are larger, allowing the machine to run pressures that are 10% lower, 36

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that provides 2-wheel, 4-wheel, and crab steering capabilities. When 4-wheel steer is engaged, the RTC offers an 18-foot turning radius that is sharper than many half-ton pickup trucks. All four wheels constantly maintain ground contact to provide proper

TimberWest November/December 2016 www.forestnet.com

now called Intimidator™ XP. Some of the equipment enhancements include new gasoline and Tier 4 final diesel engine options. www.banditchippers.com TW

Classified

CALENDAR January 10-12 Associated California Loggers 44th Annual Meeting, Reno NV 916-441-7940, www.calog.com

January 19-21 Associated Oregon Loggers’ 47th Annual Convention, Eugene, OR 503-364-1330, www.oregonloggers.org

January 10-13 Association of Equipment Distributors (AED) Summit, Chicago, IL 800-388-0650, www.aednet.org

February 8-10 16th Ann. Forestry Forum, Coeur d’Alene, ID 208-883-4488, www.forestersforum.com

ORDER ONLINE

www.HarvesterBars.com

January 18-20 74th Annual Truck Loggers Association Convention, Vancouver, BC 604-684-4291, www.tla.ca

February 9-11 Sierra Cascade Logging 68th Conf. & Forest/Construction Expo, Anderson, CA 530-222-1290 www.sierracascadeexpo.com

January 19 Mapping the course: Timberlands, forest products processing & fiber issues conf. Vancouver, WA 503-226-4562, westernforestry.org

February 23-25 Oregon Logging Conference, 79th Conf. & Equip. Show, Eugene, OR 541-686-9191,www.oregonloggingconference.com

SUBSCRIPTION CARD New, Renewal & Change of Address Name: ___________________________________________________________ Title:_____________________________________________________________ Company:_________________________________________________________ Address:__________________________________________________________ City, State, Zip:______________________________________________________ Phone:____________________________________________________________ Fax:______________________________________________________________ Email:____________________________________________________________ Website:__________________________________________________________

Change of Address & Renewal Subscriptions Please send BOTH old information and new changes to: TimberWest Magazine, P.O. Box 610, Edmonds, WA 98020 Fax: (425) 771-3623 • subscribetw@forestnet.com • www.forestnet.com ____________________________________________________________ signature date A signature and date is required on all renewals and new subscriptions.

November/December 2016

READER VERIFICATION The U.S. Postal Service requires readership verification at specified intervals. Please assist us by providing the information below.

Circle your Primary Business (enter one number) 1A Logging firm or contractor 1B Trucking company 1C Cutting contractor 1D Road builder/materials producer 1E Combined logging/processing forestry 2A Forest mgmt/government 2B Broker/consultant 3A Sawmill/chip mill 3B Veneer/plywood/panel mills 3C Pulp/paper mill 3D Specialty wood products 3E Biomass/Wood Energy Plant 4A Equipment manufacturer 4B Equipment distributor/dealer 6A Associations 6B Ad agency 6C Other 7 Forestry consultants 8 Education/Student/Library 9 Tree farming

NEW Subscriptions If you’re in the Western U.S. timber industry your subscription is FREE. All others... see below.

Send payment or request to: TimberWest Publications, P.O. Box 610, Edmonds, WA 98020 Subscription is for: m One Year $22.00 m Two Years $38.00 Washington Residents add 9.5% sales tax

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AD INDEX COMPANY PG# CASCADE ENGINE CENTER............................... 29 CASCADE TRADER........................................... 25 CYBER-TECH INC............................................. 33 FEENAUGHTY MACHINERY................................. 8 GEM CHAIN BAR.............................................. 18 HUSQVARNA.................................................... 31 JOHN DEERE...................................................... 5 LINK-BELT / TRIAD MACH./ BEJAC................... 23 LOG MAX......................................................... 40 OLOFSFORS..................................................... 17 PETERSON....................................................... 27 PEWAG CHAIN.................................................... 9 PONSSE............................................................. 2 PROLENC MANUFACTURING............................. 26 SIERRA CASCADE CONF................................... 11 SKULL BUCKET MFG........................................ 12 STEEP SLOPE LOGGING CONFERENCE............. 35 TIGERCAT / TRIAD MACHINERY......................... 13 WALLINGFORD’S.............................................. 18 WARATAH........................................................ 39 WHITE MOUNTAIN CHAIN................................. 28 CALENDAR January...................................... Komatsu America February................................................ Caterpillar March.......................................................Peterson April..........LInk-Belt / Bejac Corp / Triad Machinery May.......................................... Quadco Equipment June..........................................Pierce Pacific Mfg. July.................................................... Sennebogen August.......................................... Nelson Paint Co. September............................. Southstar Equipment October.................................................Husqvarna November................................................... Ponsse December................................................. Log Max

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www.forestnet.com November/December 2016 TimberWest

37

guestcolumnist

C Corporations with Qualified Timber Gains Get New, Lower Tax Rate with PATH Act Changes

By James Workman

T

here’s good news for C cor-

porations that have owned timber for at least 15 years.

The tax rate for timber gains just dropped to 23.8 percent under Section 334 of the Protecting Americans from Tax Hikes (PATH) Act, which was signed into law December 18, 2015. The 23.8 percent rate for qualified timber gains appears to come from the 20 percent tax on net capital gains that individuals are subject to plus the 3.8 percent additional tax on their net investment income, which came into effect with the passage of the Affordable Care Act. Now, any C corporation with both a net capital gain and a qualified timber gain can utilize the 23.8 percent rate—established under Internal Revenue Code 1201(b)—for tax years beginning after December 31, 2015. To be considered qualified timber gain, the corporation must cut timber that’s been owned for more than 15 years.

This is a big deal because, for decades, there was effectively no corporate tax rate break for eligible capital gains related to the harvest of timber, while one did exist for individual taxpayers. C corporations could use the alternative rate, which was the highest ordinary corporate rate: a whopping 35 percent.

This new provision offers some level of economic parity between individual taxpayers and corporations, which never really got the benefit of Internal Revenue Code Sections 631(a) or 631(b).

Code Sections 631(a) and 631(b)

Under IRC Section 631(a), if a taxpayer owned or held a contract right to cut timber for more than one year, the taxpayer could elect to treat the cutting of timber as a sale of standing timber, whether the logs are for 38

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sale or for use in the taxpayer’s trade or business. If the election is made, the gain or loss is calculated as the difference between the fair market value of the timber on the first day of the tax year and the adjusted basis for depletion of the timber in the hands of the taxpayer. Once the election is made, it can be revoked in later years only with consent from

the Internal Revenue Service commissioner.

Dispositions under Section 631(b) are different in that taxpayers don’t harvest the timber for sale or for their own use in a trade or business. The owner of timber disposes of timber through a cutting contract or through an outright sale. If the timber is held for more than one year and disposed of by the owner, then the difference between the amount realized from the disposal of the timber and the adjusted basis of the timber is considered as if it were a gain or loss on the sale of the timber.

For a cutting contract with a retained economic interest—a pay-as-cut contract, for example—the date of disposal is the date that the timber is cut; however, the owner may elect to treat the date of payment as the date of disposal if payment is made to the owner before the timber is cut. In this case, an owner includes any person who owns an interest in the timber, including a sublessor and a holder of a contract to cut timber.

Under the new rules, qualified timber gain is the gain a taxpayer would report

TimberWest November/December 2016 www.forestnet.com

under 631(a) or 631(b) on timber that was cut or sold (subject to the 15-year holding period).

Recalculating Your Tax

If you have qualified timber gain, then your tax on the capital gain income is the sum of 28.3 percent of the least of qualified timber gain, the net capital gain, or your taxable income, plus 35 percent of the excess gain (using the alternative rate) if your net gain exceeds your qualified timber gain.

However, it’s possible to lose the benefits of this rule under the so-called least-of rule if the recalculated tax is higher than the tax calculated under the ordinary tax rates.

The complexity of the calculations may require corporations to do some planning when applying the new law. For example, it may become relevant to coordinate the timing of qualified timber capital gains and other capital gains to best manage the overall tax results. This may result in either the acceleration or deferral of various types of income to manage this result.

Over the past number of years there have been conversions of corporate timber companies to take advantage of the real estate investment trust (REIT) provisions. The REIT provisions allow a corporation to effectively benefit from individual capital gain rates for a single layer of tax, subject to meeting certain conditions. The new tax law may provide corporations an alternative where a REIT conversion isn’t possible.

Does Your Company Qualify?

While it’s true this benefit will affect a relatively small number of companies, it’s an option that wasn’t available before. Be sure to carefully consider whether your company qualifies to avoid missing out on the potential savings.

James Workman is a tax partner at Moss Adams, Forest Products Practice, www.mossadams.com TW

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