28th October 2009
QXMC
Chief Ken Brown signed the documents to complete the conversion of Tree Farm License 10 to Community Forest Agreement (CFA) K4C. The official licensee remains Klahoose Forestry Limited Partnership, which is operating for the sole benefit of Klahoose First Nation.
This was a key piece of the Incremental Treaty Agreement signed in March and a big step forward for us ensuring sustainable management of the valley and economic success for this business venture. This conversion is a first in the province and Klahoose now owns one of the largest CFAs in the province. In terms of re-branding, we may want to start referring to ourselves as Klahoose Community Forest (in Toba River valley).
Some further note worthy information:
The CFA covers the same area as TFL 10. It is a 25 yr, replaceable licence. CFA's no longer have a probationary period. Our initial CFA AAC is 103,293 m 3/yr, the same as it was under the TFL.
CFAs are subject to tabular stumpage rates, which are calculated annually based on 30% of the average MPS rate. Along with this being a significant cost advantage on some cutting permits, being fixed rates they are not subject to the timber appraisal process, saving time and money for the Klahoose Nation.
In our approved CFA Management Plan, we have committed to undertaking a timber supply review process and new AAC calculation before September 2011. We have recently obtained Forest Investment Account funding to begin that planning process. Along with long term timber supply planning, we have to develop strategic plans for conservation of old growth and wildlife habitat.
As you know we have undertaken harvesting on the first two cutting permits under the TFL and they will be completed under the MPS stumpage system. A key part of our 2009 business plan, was having our third (and future) cutting permits issued under the CFA. We hope to gain approval of the next CP in the next day or so.