Stimson Lumber Company’s Fee Land Management System

1. Stimson Lumber Company’s Fee Land Management System Company Objectives/Policies (SFI Guidelines Embedded) • SFI Audit Elements • Training/education of professionals • Research • Public education • Wildfire • Pest management • Legal compliance • Continuous improvement • Written policies • Statewide assessments • Silviculture • Biological diversity • Soils • Visual • Riparian protection • Special sites • Utilization • Trained logger • Reforestation • Chemicals • Prescribed fire • Exotic species • Integrated pest management • Continuous Improvement • Supervision • Communication • Internal SFI Audits • External SFI Audits Company Management 50-year harvest plan • Inventory of Company Assets • Stand inventory • Soils • Streams • Roads • Imagery • Special sites • Topography Annual Budget Fee Land Unit Harvest Plan 5-year harvest plan • Sale Unit File • Harvest unit specifications • FPA Compliance Review • FPA Written Plan • Contract • Contract Administration Reports • Harvest information (cut-out analysis, polygon mapping) • Annual Updates • GIS Database • Growth • Reinventory Analysis • Cutout Analysis SFI Audit Elements • Sustainable harvest • Inventory system • Data analysis • Landscape scale considerations • Silviculture Unit • Reforestation tracking • Post-harvest analysis • Silvicultural prescriptions • Tree Improvement Program Stimson MS 3/15/06

2. Stimson Lumber Company’s Procurement Management System Company Objectives/Policies (SFI Guidelines Embedded) SFI Audit Elements • Continuous Improvement • Supervision • Communication • Internal SFI Audits • External SFI Audits • Training/education of professionals • Research • Public education • Wildfire • Pest management • Legal compliance • Continuous improvement • Written policies • Statewide assessments Company Management Timbershed Supply Analysis Annual Budget Procurement • BMPs • Reforestation • Visual • Special sites • Qualified resource professionals • Adverse weather • Monitoring program system • Illegal logging • Timber Sales • Contracts • Qualified Logger • Contract Administration Reports • Monitoring • Gatewood • SFI Newsletter • Purchase Agreement • 5% Landowner Inspection Report Stimson MS 4/20/12

3. Montreal Process Criteria and ExampleIndicators for Sustainable Forest Management Species Diversity Ecosystem Diversity Genetic Diversity Monitoring Legal Biological Diversity Available Forestland Legal/Institutional/ Economic Framework Productive Capacity Growing Stock Economic Harvest vs. Sustainable R&D SustainableForest Management Production/ Consumption Wood Products Natural Processes Cultural/ Spiritual Values Ecosystem Health Socio-economic Benefits Air Pollution Investment Ecological Processes Employment/ Community Needs Soil and Water Global CarbonCycles Erosion Water Quality Carbon Pool Carbon Budget General Protection

5. Montana Forest Assessment– Priority Areas Conserve Working Forest Lands Protect Forests From Harm Enhance Public Benefits From Forests • Conserve high priority ecosystems & landscapes • Actively & sustainably manage forests • Retain/expand milling capacity • Co • Reduce risk from catastrophic wildfire • Manage for • Invasive Species • Insects & disease • Air quality • Water quality • Climate change • Fish & wildlife • Water quality • Air quality • Energy • Wildfire • Economic • Fish & wildlife • Connect people with forests • Urban forests • Climate change • Federal land management

6. Oregon Forest Assessment-- Priority Areas Communities at Risk of Fire Loss of Habitat Diversity Water Quality Invasive Species Loss of Forest Land Base • Fuels Build Up • Expanding Urban Interface • Loss of Market Opportunity • Conversion of Forest Lands • Catastrophic Wildfire Resulting from Woody Fuel Build Up • Invasive Species • Lack of Administrative Dollars for Forest Practices Act • Spread of Current Invasive Species • Introduction of New Invasive Species • Continued Outbreaks of Invasive Insects & Disease • Habitat & Water Quality Degradation • Increased Wildfire Suppression Costs • Limits Forest Management Practices • Intergenerational Transfer of Forest Property • Parcelization of Forest Lands Leads to Passive Management • Disturbance Regime Disruption • Land Use Conversion • Invasive Species • Habitat Fragmentation & Loss

7. Washington Forest Assessment– Priority Areas Wildfire Working Forests Biodiversity Water Quality Forest Health Urban Forests • Habitat Fragmentation & Loss of Legacy Features • Altered Disturbance Regimes • Invasive Species • Climate Change • Loss of Surface Water Quality • Forest Roads • Climate Change • Forest Land Conversion • Loss of Economic Viability • Climate Change • Loss of Urban Trees & Forests • Loss Urban Ecosystem Function • Loss Social & Economic Benefits of Urban Trees • Lack of Planning & Mgt. • Invasive Species • Public Safety • Develop-ment • Forest Health • Climate Change • Loss of Forest Markets • Invasive Species • Over-crowded EW Forests • EW Fuel Loads • WW Loss of Productivity & Function • Climate Change • Loss of Markets

8. Stimson Lumber Company Application of SFI Objective 15 Consult State Forests Assessments for Priority Areas— A tool for promoting business objectives & retaining public permission to manage our lands Consult SLC Forest Principles & Guidelines Company Actions Resources Division Marketing Division Fee Lands Procurement

9. Stimson Lumber Company’s Approach for Investing in Wildlife Conservation Consult the State Wildlife Conservation Strategy-- A tool for forest land management Identify ecological regions & species of concern Identify habitat needs (Consult the Wildlife Strategy, Natural Heritage Program & Other Data) Consult Company Principles & Guidelines Fee Lands Procurement Timber sale plans & contracts Information to log suppliers Regulatory requirements Voluntary actions

10. Guidelines for Setting Priorities • Regulated species (sensitive, threatened, endangered) and habitats (wetlands) • Save the Best: near pristine conditions, best representation of habitat type) • Habitats that are conservation targets (e.g. your state’s Conservation Strategy) • Protect “Inclusions”—rock outcrops, wetlands, cliffs, caves, “balds”, etc. • Address impaired ecological functions • Protect investments (complete and maintain projects) • Seize opportunities (funding sources, partnerships)