MINUTES OF MEETING

FOREST RESOURCES ASSOCIATION

NATIONAL OPERATIONS COMMITTEE

10:30 AM – 12:25 PM Hotel Monteleone

April 17, 2018 New Orleans, LA

GUEST PRESENTATION: D.K. KNIGHT

D.K. Knight, Executive Editor and Co-Publisher of Hatton-Brown Publishers, Inc. presented the results

of Timber Harvesting magazine’s 2017 Trucking Survey and shared his observations and insights on

many of the challenging log trucking issues. He also provided recommendations for loggers, truckers,

wood-receiving facilities, and insurance companies on ways they can help improve the safety,

efficiency, image, and profitability of log and chip trucking operations. Advice included the following:

Use older, experienced, and retired drivers as mentors for younger and newer drivers.

Offer safety bonuses and rewards for drivers with safe records.

Improve the visibility and brightness of log trucks and trailers.

Drive truck turnaround time down.

Understand that consistent demand for wood and consistent work schedules make it easier to attract

and retain qualified truck drivers.

Treat drivers with respect, reward top drivers, support driver training and the TEAM Safe Trucking

program.

Reevaluate freight rates.

Pay more attention to how the wood is loaded on the trucks.

Support truck weight reform regulations that encourage log trucks to run on Interstates whenever

possible.

ANTITRUST STATEMENT

Operations Committee Meeting Secretary Rick Meyer reminded Committee members to adhere to

FRA’s antitrust law compliance policy that was written in the Detailed Agenda. He cautioned that, as

log trucking issues were about to be discussed, that there must be no discussions related to specific

logging or trucking rates, or agreements on who may haul wood to mills, or other matters which might

inhibit the competitive workings of the free market.

DISCUSSION OF D.K. KNIGHT’S PRESENTATION; TRUCKING ISSUES

Meeting attendees engaged in a lengthy discussion of various trucking issues and challenges.

Mark Joiner presented data showing that the DOT/law enforcement officers stop and inspect/weigh log

and forestry trucks at a much higher rate than trucks in other industries such as haulers of aggregate

products in the area where Beasley Logistics operates in the southern U.S. Other individuals commented

that the more successful log trucking businesses (with nicer looking trucks) seem to be targeted for DOT

compliance checks more often than independent contract truckers with lower-quality rigs.

FRA Legal Counsel Tony Macleod stated that while competitors and meeting attendees cannot engage

in group discussions that lead to agreements which create barriers to entry in log trucking or other

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businesses, it is acceptable for an industry to advocate legislative or regulatory actions where there is a

perceived problem. Additionally, any “standards” that are developed by an industry cannot be so

restrictive or difficult to meet that they present an artificial barrier to entry for new businesses or

individuals.

“TEAM SAFE TRUCKING” UPDATE

TEAM Safe Trucking’s driver continuing education Module 1 (completed and accessible at

https://teamsafe.talentlms.com) provides basic information on the FMCSA rules and regulations that

apply to log truck drivers (and managers). Module 2 will address many in-woods and on-the-road

driving safety best practices and will be available soon. Individuals may create an account and complete

the modules online; those wishing to facilitate a group training effort may contact TEAM Safe

Trucking’s new Special Project Coordinator, Miranda Gowell, at

miranda.gowell@teamsafetrucking.com. She will focus on the development and completion of

additional safety training curricula.

Keith Biggs reported that TEAM Safe Trucking (TST) is working on the development of a database that

can track continuing education or training for drivers, possibly connecting driver’s TST module

completion records to their CDL number. He reported that the TEAM Safe Trucking leadership includes

a representative from each of four geographic regions in the U.S.

It was reported that the Wood Supply Research Institute has funded Miranda Gowell’s position for a six-

month period. Additionally, FRA’s Timber Harvesting and Transportation Safety Foundation would be

evaluating a proposal to fund some of the direct module development costs for TEAM Safe Trucking

materials/modules.

It was moved, seconded, and voted to recommend that FRA members host trucker safety education

(TST Module One) sessions at their facilities and that FRA members involved in their state logger and

trucker continuing education programs encourage their SFI or other state implementation committees to

incorporate TEAM Safe Trucking education modules into the continuing education program.

OPERATIONS COMMITTEE FOCUS AND ALIGNMENT WITH STRATEGIC PLAN GOALS

Chairman DeLano briefly reviewed the portion of FRA’s Strategic Plan that was most applicable to the

Operations Committee: The major goal (#3) to “Address Forest Operations Challenges.” He noted that

FRA staff had recently proposed a new high-priority project under this major goal:

Address Trucking Safety and Insurance Challenges

Identify and promote efforts to meet the current log trucking challenges of high insurance costs &

declining insurance availability; shortage of qualified, insurable drivers; and log trucking safety and

loss control issues.

Publish trucking safety-related FRA Technical Releases and Safety Alerts.

Include trucking safety and insurance-related presentations at FRA regional and national meetings to

share successes and possible solutions.

Support and promote the efforts of TEAM Safe Trucking to develop and implement nationwide

truck driver safety training and continuing education.

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It was moved, seconded, and voted to recommend that this new project be added to FRA’s current

Strategic Plan.

FRA REGIONAL REPORTS

Appendix pages A4-A12 of the Detailed Agenda contained brief updates on recent activities and the

“most pressing issues” facing members in each of FRA six geographic regions. Following is an

abbreviated summary of the key issues in each region.

Appalachian: High trucking and truck insurance costs; lack of qualified and insurable truck drivers;

China’s booming hardwood log demand disrupting stumpage market; oversupply of sawmill residues

and declining/uncertain demand for woody biomass energy.

Lake States: Growing need for both skilled and unskilled workers; shortage of log truck drivers; high

insurance costs and lack of worker health coverage; need to educate community leaders on value of

healthy forests & healthy forest products industry; seasonal harvesting constraints on logging activity;

declining rail service.

Northeastern: Loss of pulp, biomass, and wood pellet markets; trucking capacity shortage and uncertain

future logging workforce; concern over spruce budworm infestation spreading from Canada into the

northeastern U.S.

Southcentral: Trucking insurance costs way up and available trucking insurance options down;

escalating trucking costs and lack of enough trained, safe drivers; substandard rural roads with bridge

and road maintenance backlogs; truck weight restrictions and local road bonding or permitting issues.

Southeastern: All things trucking: increased liability and insurance costs; fewer insurance companies

left; ELD mandate impacting some trucking costs and taking away drivers flexibility; loggers reporting

that their logging operations must subsidize their trucking operations; lawyers focusing on lawsuits

against trucking operations; finding insurable drivers with good MVRs – age, experience, and other

eligibility requirements mandated by insurance companies.

Western: Truck driver shortage; general labor shortage; log supply shortage (mostly weather related);

USFS fire suppression budget and costs.

Issues common to the majority of regions:

Assorted log trucking issues – driver shortages, high insurance costs or shortage of insurers,

numerous regulations.

General labor shortage across industry job types.

DeLano asked that anyone with new, important issues in their region provide feedback to FRA staff.

(Note: The FRA regional reports are included in Appendix pages A1-A9 of these Minutes.)

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TIMBER SECURITY UPDATE

Aaron Gilland, a timber security consultant and owner of Dendro Resource Management, Inc., provided

a brief overview of current timber security issues. He noted the following:

Be aware that timber fraud and theft tends to increase when there is financial pressure and stress;

currently there is stress on the log trucking sector of our industry.

Several cases of “zone jumping” are known. If caught and addressed quickly, the financial losses to

a mill can be fairly low.

FRA still conducts one Southwide Timber Security Group Meeting annually in the fall. The next one

will be held in Starkville, Mississippi in late October or early November.

MINUTES OF MEETING

It was moved, seconded, and voted to approve the Minutes of the October 6, 2017 Operations

Committee meeting as previously e-mailed to committee members.

OTHER BUSINESS

Chairman DeLano asked if there was any other business that should be brought before the Operations

Committee. Discussion then continued on log trucking challenges, with the following questions or

observations brought up by meeting attendees:

Is there a better or safer log truck design or a way to load the wood better or safer on a log truck?

Perhaps FRA Technical Releases can be developed on the best and safest trailer configurations or

loading methods.

Maybe more log truckers should request brightly colored log trailers when ordering new ones.

Perhaps there is an opportunity to encourage the development of trucking business education

programs to improve the professionalism and safety of owner-operators and small-size trucking

businesses.

In South Africa, there was a program where log truckers who completed a “Master Trucker” safety

program could bypass a long line at the mill scales and instead go through the mill’s separate, shorter

line designated for Master Truckers only.

ADJOURN

Chairman DeLano adjourned the National Operations Committee Meeting at 12:25 PM.

Rick Meyer, Meeting Secretary

Reviewed by:

Deb Hawkinson, FRA President

Tony Macleod, FRA Counsel

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ATTENDANCE

MEMBERS COMPANY/ORGANIZATION LOCATION

Bud DeLano (Chair) Expera Iron Mountain, MI

Ryan Hendrix (Vice Chair) Green Bay Packaging, Inc. Morrilton, AR

DJ Aderman FutureWood Hayward, WI

Shawn Baker Forisk Athens, GA

Ray Berthiaume Wagner Forest Mgt. Errol, NH

Keith Biggs Forestry Mutual Insurance Raleigh, NC

Randy Blomberg Blomberg Logging Inc. Ogema, WI

John Boyette International Paper Shreveport, LA

Bruce Brewer Idaho Forest Group Couer d’Alene, ID

Mark Fryer AssuredPartners NL Columbia, SC

Brad Fuller Huber Engineered Woods Farmville, VA

Aaron Gilland DRM, Inc. Lugoff, SC

Patricia LeRoux Norbord Toronto, ON, Canada

Dale Lemmons Interstate Wood Prod. Kelso, WA

Carl Lockhart John Deere Ontonagon, MI

Chris Marsh Rayonier AM Dublin, GA

Tommy Norris Tri-State Land & Timber LLC Rocky Point, NC

Joseph Parnell Parnell Inc. Maplesville, AL

Barry Parrish Georgia Biomass LLC Waycross, GA

Jay Phaup Greif Packaging LLC Amherst, VA

Dan Smith Northwoods Mgmt. Bangor, ME

Jim Stemple Drax Biomass, Inc. Monroe, LA

Dan Toivonen LP Hayward, WI

David West KapStone Kraft Paper Charleston, SC

Clint Woods Westervelt Company Tuscaloosa, AL

GUESTS

Marcus Beard Price Companies Monticello, AR

Chris Becklean International Paper Memphis, TN

Michael Best Canfor Southern Pine El Dorado, AR

Tom Beyer Georgia Forestry Association Forsyth, GA

Danny D. Blount Norbord Cordele, GA

Johnny Boyd Tigercat Wetumpka, AL

David Buddingh Trimble Philomath, OR

Kevin Cain FBC LLC Augusta, GA

Dick Carmical Price Companies Monticello, AR

Steve Carruth J. Steven Carruth LLC/WSRI Valley Head, WV

Joe Conrad University of Georgia Athens, GA

René Cuchens BRUKS Rockwood Alpharetta, GA

Louisa Daniels Green Bay Packaging, Inc. Morrilton, AR

Paul Davis Weyerhaeuser Vancouver, WA

James Edelen LP Carthage, TX

Tom Gallagher School of Forestry & Wildlife Science Auburn, AL

Chris Gordy Norbord Greenwood, SC

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Bill Guthrie DS Smith Riceboro, GA

Kent Hall STIHL Inc. Virginia Beach, VA

Bradley Harper IndusTREE Timber Wetumpka, AL

Andy Hiegel University of Georgia Athens, GA

Deidra Holt International Paper Georgetown, SC

Jeff Jenkins P.H. Glatfelter Chillicothe, OH

Mark A. Joiner Beasley Logistics/Timber Hazlehurst, GA

D.K. Knight Hatton-Brown Publishers Montgomery, AL

Jane Knight Hatton-Brown Publishers Montgomery, AL

Donna Kopecky LP Nashville, TN

John Lemire Forestry Mutual Insurance Raleigh, NC

Chad Lincoln FIA Atlanta, GA

Doug Long Rayonier Yulee, FL

Matt Ludbrook Trimble Forestry Auckland, New Zealand

Chris Lyddan RISI Bellingham, WA

Tim Mahan Southern Forestry Inc. Golden, MS

Todd Martin Southern Loggers Co-Op Pinesville, LA

Amy McFadden White Oak Forest Mgmt. Georgetown, SC

Steven Meyers Interfor Perry, GA

Bill Miller F&W Forestry Fernandina Beach, FL

Wes Miller A.M. Logging, LLC Millheim, PA

Allen Morgan Hunter Wesson Timber Svc. Arkedelphia, AR

Frank Myers M.M. Wright Inc. Gasburg, VA

Bernard Rose KapStone Kraft Paper Roanoke Rapids, NC

Josh Sandt Canfor Southern Pine Myrtle Beach, SC

Kevin Selby Tigercat Industries Inc. Ontario, Canada

Matthew Senter Farm Credit East Auburn, ME

Tom Skaggs Outdoor Underwriters Knoxville, TN

Joel Slate PCA DeRidder, LA

Pete Stewart Forest2Market Charlotte, NC

Steven Stuart LandMark Spatial Solutions Starkville, MS

Tim Stuhr St. Joe Timberland Co. Panama City, FL

Tom Trembath FIA Atlanta, GA

Tess Ventress Tappisafe Atlanta, GA

Virgil Wall Norbord Ninety Six, SC

Mike West Precision Husky Moody, AL

Jeff Widmer 3LOG Systems Greensboro, NC

Joe Young LCFP, Inc. Georgetown, SC

STAFF

Deb Hawkinson FRA Staff Washington, DC

Steve Kariainen FRA Consultant Hayward, WI

Tony Macleod FRA Counsel Greenwich, CT

Rick Meyer FRA Staff Roanoke, VA

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APPENDIX

Item Page

FRA Regional Activity Reports – April, 2018 A1-A9

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FRA Appalachian Region Activity Report April 17, 2018

Current “most important” wood supply chain issues facing AR members (listed in order of priority as identified by AR Policy Committee members):

Trucking: Shortage of trucking services; some trucks idled due to lack of qualified and insurable drivers; high trucking insurance rates and fewer insurers; numerous trucking regulations have raised trucking costs and reduced driver labor pool.

China’s booming demand for hardwood logs has disrupted the hardwood stumpage market in the region.

Declining market for sawmill residues and in-woods fuel chips; unpredictable (declining?) demand

from woody biomass energy-producing facilities; loggers’ production hindered due to not enough hardwood pulpwood demand in certain locations.

Labor: Harder to find qualified, skilled, dependable logging workers; competition for logging services and labor from gas pipeline development, road projects, and metallurgical coal in central part of AR; aging workforce with fewer younger loggers in the pipeline to replace those who age out.

Recent AR Meetings:

April 5, 2017 - Appalachian Region Policy Committee Meeting in Abingdon, VA & field tour of American Chestnut Foundation’s Meadowview Farms’ research, test plantings, and seed orchards (to develop chestnut blight-resistant trees). September 20-21, 2017 – Appalachian Region Fall Meeting and Field Trip in Chillicothe, OH. Field trip included a drive-through tour of Glatfelter’s Chillicothe, Ohio pulp mill woodyard and fuel co-op station; Ohio Valley Stave Mill in Waverly; Glatfelter’s log merchandising yard in Piketon, and Speyside Bourbon Cooperage facility in Jackson County. General Session topics and speakers:

Deb Hawkinson, FRA President – FRA National Forestry Policy & Regulatory Issues.

Brad Perkins, Ohio Forestry Assn. Executive Director – Ohio Forestry & Timber Harvesting Issues.

Candee Blevins, Glockner Insurance – Logging/Trucking Insurance & Regulatory Compliance Checklist.

Rick Meyer, FRA Appalachian/Southwide Regions Manager – TEAM Safe Trucking Update & Education Module Overview.

Meeting Appalachian Logging & Trucking Challenges (Panel): o Richard Gessel, Richard Gessel Trucking, Vincent, OH o Chris Terry, Terry Logging, Inc., Morehead, KY o Ryan Redoutey, Redoutey Logging, McDermott, OH

Next AR Meetings: May 17, 2018 – Appalachian Region Policy Committee Meeting in Sandston, Virginia, in conjunction with the Richmond, VA Logging & Sawmill Equipment Expo. The meeting will include a Rountable on trucking issues. Fall, 2018 – AR to meet in conjunction with FRA Fall Board Meeting in Lexington, KY (Oct. 10-12)

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FRA Lake States Region Activity Report April 17, 2018

Current “most important” wood supply chain issues facing LSR members (as recently identified by

LSR Policy Committee members): Key issues identified by LSR members include the following, with the most important in bold:

High delivered fiber cost in LSR. Continued decline in rail service. Shortage of log truck drivers, especially those capable of operating loaders. Seasonal nature of log hauling. Extremely high workers comp rates. Lack of health care coverage for loggers. Growing need for both skilled and unskilled workers. Need to educate community leaders on value of healthy forests & healthy forest products

industry. Need for continuous performance review to guide future improvement.

Recent LSR Meetings: October 25-26, 2017 – Lake States Region 2017 Fall Meeting, Duluth, MN. FRA Chair Bill Johnson

and FRA President Deb Hawkinson provided summaries of FRA’s 2017 Fall Board Meeting and Fly-in held on Oct 5-6 in Washington, D.C. Both Hawkinson and Johnson deemed the Fly-in a success, as 70 people met with 86 Congressional offices to advocate for key issues like the Right to Haul Act, Resilient Federal Forest Act, and the H-2C Agricultural Guestworker Act. The Fall Meeting Theme was, “Working Together to Define Our Future”. Speakers and topics included:

Heather Berklund, WDNR - Update on Lake States Bat HCP

Peter Coutu, Forest2Market – LSR Timber Resource

Tamara Lowney, APEX – Workforce Development

Pat Tucker, Lost Bowl Development – Bio-Refinery Proposal at Ontonagon, MI

Jeff Widmer, 3Log Systems – Electronic Tickets The Fall Meeting also featured the following three panel discussion topics:

Transportation Challenges & Opportunities

Seasonality Challenges & Opportunities

Forestry Association Opportunities for Better Collaboration

The Fall Meeting field tour included observing a full log truck inspection at the Wisconsin Department of

Transportation’s new scale facility near Superior, a tour of Futurewood’s Parkland wood yard, and a visit

to Lake Superior Warehousing’s new multi-modal bulk freight facility at the Duluth Harbor.

At the Fall Meeting banquet, the FRA 2017 LSR Outstanding Logger award was presented by STIHL

Incorporated and FRA to Gordon Dobbs with Dobbs Logging of Littlefork, MN. Also attending was Kit

Hasbargen with Hasbargen Logging from Birchdale, MN who was FRA’s 2017 National Outstanding

Logger.

March 29, 2018 – Lake States Policy Committee Meeting in Rhinelander, WI: FRA President Deb Hawkinson and FRA Director of Government and Public Affairs Ryan Rhodes joined the meeting via

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conference call and provided attendees with a summary of FRA’s 2017 Achievements and a review of FRA’s Public Policy Priorities. Hawkinson cited the following achievements as “big wins”: • Guestworker visa program was favorably addressed in omnibus spending plan. • Tax reform that lowers corporate rates, preserves independent contractor status, and doubles the

estate tax exemption allowance. • Carbon neutrality was preserved for biomass through 2025. Hawkinson noted FRA’s efforts to encourage returning military personnel to consider employment opportunities within the wood supply chain by working with programs such as Soldiers for Life and Heroes for Hire. She also mentioned working with American Loggers Council (ALC) to advance the Future Logging Careers Act, which allows children aged 16 to 17 years old to work in family logging businesses under strict supervision. Rhodes noted that H-2B was favorably addressed in the Omnibus Spending Bill, but H-2C is a better long-term solution FRA will continue to work toward. He referenced the American Loggers Council as partnering with FRA, along with the Farm Bureau and the Rice Federation, in support of the Right to Haul Act. Rhodes also noted ongoing efforts toward legislation dealing with:

The Farm Bill

Permanent biomass neutrality

Independent contractor status (one standard federal definition)

Truck weigh reform

NEPA reform

Timber Innovation Act

Hawkinson suggested FRA will update the talking point cards used at FRA’s 2017 Fly-in and will provide region specific material as a guide to help members in communicating forest policy matters with community leaders. She also mentioned the North American Forest Partnership as a key alliance of diverse groups across the country working on forest policy messaging. Next LSR Meeting:

September 18-19, 2018 – Lake States Region 2018 Fall Meeting to be held at the Jefferson Street Inn, Wausau, WI. Theme for the meeting is, “Workforce Development – Matching Value with Investment”.

A4

FRA Northeast Region Activity Report April 17, 2018

Current “most important” wood supply chain issues facing NER members: Markets

Since 2014, the Northeast has lost markets for more than 4 million tons of wood. Most of this market loss has been at pulp mills, but this figure also includes the loss of biomass and wood pellet mills. This market loss has been centered in Maine, and has disproportionately impacted softwood markets – particularly pine and hemlock. New York has also lost a biomass market and some wood pellet mills. Given low wholesale electricity prices and limited public support, there is concern for the future of biomass markets across the region. Without a range of markets for low-grade wood, foresters have fewer options for forest management. Given market constraints it can be difficult to implement appropriate silviculture. Of particular and increasing concern is markets for softwood mill residuals – spruce / fir and white pine. While most sawmills currently have outlets for residuals, the region is at a critical point and continued strength of the solid wood sector is reliant upon addressing this issue in a sustainable manner, particularly for softwood mills. Fortunately, forests in the region are very diverse and allow for some flexibility in matching harvesting operations to market demands. Also, as a whole Northeastern forests are productive and healthy with a balanced harvest to growth ratio ensuring a good source of quality wood material into the future. These forest attributes should allow markets time to develop to fill the void of closed mills while the core industry supply chain can remain mostly intact. On the positive side, the region has seen significant investment at existing mills. Many pulp mills in the region have made or are planning significant capital investment, including new paper machines, a new wood yard, and increased processing capacity. Both hardwood and softwood sawmills are providing strong markets, and log exports continue to divide the industry. Several sawmills in the region are investing in new production capacity, and there have been two cross laminated timber (CLT) production facilities announced for the region. Logging and Trucking Capacity

Trucking capacity is the single largest constraint on the industry supply chain in the region. The shortage of drivers has been exacerbated by increasing insurance costs and efficiency losses as a result of federally mandated ELDs for some trucking. Logging capacity in the Northeast has decreased with loss of markets, but less than many expected. That may be changing, as some landowners are reporting challenges finding enough crews to meet their needs. It appears that loggers are facing the decision of whether to remain in the industry at the time they need to invest in new equipment. Even with the loss of markets, finding, training and capitalizing the next generation of the logging workforce remains one of the most significant challenges facing the region. Hands-on training programs for new loggers in Maine and New York have seen success, and are introducing new entrants to the industry. With efficiency becoming more and more important to every aspect of the supply chain and in all operations, quality equipment operators, truck drivers, foremen, and mechanics are perhaps more important now than ever before.

A5

Bugs

The spruce budworm infestation in nearby Quebec and New Brunswick has reached serious levels, but has not yet had a significant impact on U.S. timberland. We expect to see damage affecting our spruce/fir forests in the coming years, but exactly when is increasingly unclear. In addition, the emerald ash borer is having an impact in the western and central part of the Region as it continues to spread. A number of landowners, loggers and mills have reported challenges finding and keeping qualified truck drivers, and this area is becoming a constraint in the industry. Meetings - Forestry Forums

The region’s popular monthly Forest Forums have just concluded for the season, and will re-start in September. Forum topics have included developments in mass timber and cross laminated timber construction, drones in forest management, redevelopment of closed mills, regional markets, life flight and improvised first aid, carbon credits for forestry, and a report on a forestry tour of Scandinavia and France. The Forest Forums will restart in September.

FRA Southcentral Region Activity Report April 17, 2018

Current “most important” wood supply chain issues facing SCR members (as recently identified by

SCR Policy Committee members):

Trucking issues: Insurance costs way up and available insurance options down; hard to attract enough trained, safe drivers; escalating trucking costs overall.

Substandard rural roads; bridge and road maintenance backlog; local road bonding or permitting issues.

Differing highway weight limits among states; truck weight restrictions. Recent SCR Meetings:

March 7-9, 2017 – Joint FRA Southcentral Region Spring Meeting and Southern Council on Forest Engineering Meeting, Mobile (Point Clear), AL. The Forestry Field Trip was a tour of the Port of Mobile, a major forest export and import facility in the U.S. General Session topics and speakers:

Deb Hawkinson, FRA – 2016 National Election Results & FRA Policy Priorities

Ashley Smith, Alabama Forestry Assn. – Alabama Forestry Association’s Industry Workforce Development Initiative

Antonio Solano, Caterpillar Safety Services – Analyzing Our Industry’s Safety Culture & Technology (webinar)

Log Truck Dispatching/Trucking Optimization/Efficiency – Lessons Learned (Panel):

Steve Matlock, Murphy Bros. Trucking, Arcadia, LA

A6

Freddy Tidwell, F&C Logging, Double Springs, AL

Lee Davis, IndusTREE Timber & IndusTREE Logging, Wetumpka, AL

Southern Council on Forest Engineering program included several forest operations research presentations, mostly from southern U.S. university professors and grad students. November 2, 2017 – Southcentral Region Policy Committee Meeting in Philadelphia, MS and tour of Biewer Lumber’s new pine sawmill in Newton, MS. Next SCR Meeting: April 16-18, 2018 – SCR to meet in conjunction with FRA National Annual Meeting in New Orleans, LA.

Includes guest presentations: Trey Wimberley – Do’s and Don’ts Following a Commercial Trucking Accident

Steven Stuart – LandMark Spatial Solutions’ Mobile Technology

FRA Southeastern Region Activity Report

April 17, 2018

Current “most important” wood supply chain issues facing SER members (as recently identified by

SER Policy Committee members): Trucking is the biggest limitation in the SER wood supply chain:

Increased liability and insurance costs; insurance companies are pulling out of the marketplace and the ones left are raising rates.

The Electronic Logging Device mandate takes away all flexibility in reporting Hours of Service where there are delays in loading or unloading or vehicle breakdowns, etc.—situations where the ELD doesn’t allow the driver to “clock out” during periods of inactivity due to delays.

Even the “top tier” logging contractors typically report that log trucking is not a profitable venture and that their logging operations must subsidize their trucking operations; they also report that they are having to replace contract truckers with their own trucking operations.

Truck turn time delays, especially at the mills but also in the woods, have a major negative impact on the number of loads loggers can deliver and on their profitability.

Many top tier logging operations report a huge challenge in finding enough insurable drivers—those with good enough records (MVRs) who meet age, experience, and other eligibility requirements mandated by insurance companies.

Lawyers have been focusing on lawsuits against trucking operations and especially target any driver or company with a less-than-perfect record, with the driver or company initially presumed as guilty.

Use of dash cameras in log trucks have saved companies from expensive claims in several cases, and the cost for dash cameras has decreased substantially.

Forest products companies are encouraged to host TEAM Safe Trucking Module One programs for trucking business owners with whom they do business.

A7

Recent SER Meetings:

October 25-26, 2017 – Southwide Forest Products Security Group Meeting and FRA Southeastern Region Policy Committee Meeting, Jekyll Island, GA. The SER Policy Committee Meeting included a Roundtable Discussion of activities and legislation/regulations that currently impact forestry, harvesting, and trucking in the Southern U.S. Southwide Forest Products Security Group Meeting:

“Map My Mill” Smartphone App Presentation/Demonstration.

Timber Security Overview for Landowners.

Overview and Application of Georgia’s Recent Timber Theft Legislation.

LandMark Spatial Solutions 4Loads Load Tracking System.

Roundtable discussion of Timber Security concerns.

Conflicts of Interest in the Forest Products Business

Security Video Camera (Reconyx) Presentation/Demo

Satellite-based change detection technology for security, timber auditing, and due-diligence

State Forestry Agency Timber Security Updates

Timber Security Case Studies March 21-22, 2018 – Southeastern Region Spring Meeting in Newberry, SC: Meeting included a General Session and a field trip to tour C.K. Doolittle Logging office/shop and the Norbord OSB mill & woodyard. General Session topics and speakers:

Deb Hawkinson, FRA President – Wood Fiber Supply Chain Policy and Regulatory Issues; FRA Update

Cam Crawford, Forestry Assn. of South Carolina President/CEO – South Carolina Forestry & Timber Harvesting Issues

Donnie Buckland, NWTF – National Wild Turkey Federation’s Forest Management Projects and Initiatives

Shawn Baker, Forisk Consulting – Trucking Pay, Benefits, & Insurance Study Results

Roger Williams, Williams Brothers Trucking, Inc. – Meeting Wood Fiber Trucking Challenges

Dean McCraw, Phloem – Log Truck Load Tracking & Turn Time App Next SER Meetings:

Fall 2018 – SE Region Policy Committee Meeting in Athens, GA or Auburn, AL – date & location TBA Spring 2019 – SE Region to meet in conjunction with FRA National Annual Meeting on May 20-22 in Amelia Island, FL

A8

FRA Western Region Activity Report

April 17, 2018

Most Important Issues Truck Driver Shortages – This cannot be overstated. This is an issue throughout the stream –

residuals, log, lumber, general freight systems. General Labor Pool Shortages – There are shortages on all levels. “Cannabis Friendly” states have an

even more difficult time getting clean employees. Log Supply Shortage – Log supply continues to be an issue. If there is a protracted breakup, there

could be mill closures due to log shortages. Last year’s long spring breakup followed by a severe fire season exacerbated this issue. USFS – Changing the way that fire suppression is paid for is significant. We are optimistic that having a

budget line item for forest fire costs will make a positive difference for the 2018 fire season. WR Meetings

Upcoming WR Meeting:

May 15-17, 2018 – WR Spring Meeting, Harrison Hot Springs, British Columbia Agenda: Technical Seminar (May 16th)

Albert Nussbaum (BC Ministry of Forestry) – Impacts of Wildfires and BC Spruce Beetle Update

Dave Dave Earle (BC Trucking Association) – BC Driver Shortage

Dale Lemmons (Interstate Wood Products) – US Perspective on Electronic Log Device Usage

Brad Markin (Sutco) – Canadian Perspective on Electronic Log Device Usage

Stan Hadikin (Zellstoff Celgar) – Challenges of Processing Charred Wood, Invited

Bill Fuller (FRM Consulting) – Updating Chip Quality Manual, Invited General Session (May 17th, Theme: “Forest Resources – Innovations Shaping our Future”)

Mike Byl (BC Ministry of Forestry) – Wood Exports and Exporting Forest Residuals

Murray Hall (Murray Hall Consultants) – Coastal BC Fibre

Keta Kosman (Madison’s Lumber Reporter) – Lumber Market Outlook

Anthony Kuchulis (Barran Liebman, LLP) – Workplace Culture Tips

Drones Panel – How are they being used in the industry? o Rob Nagel (Port Blakely US) – Forestry, Land Use o Jonathon Stephens (Stock Pile Reports) – Ag & Mulch Companies o Mark Standley, Sr. (Bighorn Logging) – Logging Use o Ryan Fobes (Foresite Engineering, PLLC) – Fiber Inventories

Previous Meeting held: September 19-21, 2017 – WR Fall Meeting, joint meeting with Montana Wood Products Association, Grouse Mountain Lodge, Whitefish, Montana

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Technical Seminar (September 20th)

Shaney Neuharth/Robert Crosswhite (Weyerhaeuser) – Medium Density Fiberboard Chipper Innovations

Rick Levine (Power Screens of Washington) – Wood and Rock Recovery Systems

James Erickson (KapStone) – Chip Quality Initiative Andrew Spaeth (Sustainable Northwest) – Forest Collaboratives in the US and BC

Matt Mattioda (Miller Timber Services) – Innovations in Tethered and Cut-to-Length Logging

David Smith (Oregon State University) – Biomass Enterprise Economic Model

Kurtis Vaagen (Vaagen Brothers) – Wood Utilization after Wildfires Jana Jarvis (Oregon Trucking Association)

Susan Reszczynski (EROAD) – Electronic Logging Device Demo

Jon Lucich (Veneer Chip Transport) – ELDs, Real World Experiences/Examples

Ross Lane (BNSF) – Rail Update for Montana

Jim Lewis (Montana Rail Link) – Shortline Rail Update for Montana General Session (September 21st, Theme: “It All Starts in the Forest”):

Bob Flynn (RISI) – Global Market Update

Christine Dawe (United States Forest Service) – Region One Update

Bill Imbergamo (Federal Forest Resources Coalition) – Federal Forests Update

Rocky Goodnow (Forest Economic Advisors) – From Where Will the Fiber Come?

Craig Rawlings/Arnie Didie (Forest Business Network) – Mass Timber – Changing the Way the World Builds

Steve Lovett (Softwood Lumber Board) – Changing How America Builds, An Update from the Softwood Lumber Board