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

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

Montreal Process Criteria and Example Indicators 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 Sustainable Forest 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 Carbon Cycles Erosion Water Quality Carbon Pool Carbon Budget General Protection

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

Oregon Forest Assessment-- Priority Areas Communities at Risk of Fire Loss of Forest Land Base Loss of Habitat Diversity Invasive Species Water Quality Fuels Build Up Expanding Urban Interface Loss of Market Opportunity 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 Spread of Current Invasive Species Introduction of New Invasive Species Continued Outbreaks of Invasive Insects & Disease Conversion of Forest Lands Catastrophic Wildfire Resulting from Woody Fuel Build Up Invasive Species Lack of Administrative Dollars for Forest Practices Act

Washington Forest Assessment– Priority Areas Working Forests Biodiversity Water Quality Wildfire Forest Health Urban Forests Forest Land Conversion Loss of Economic Viability Climate Change Habitat Fragmentation & Loss of Legacy Features Altered Disturbance Regimes Invasive Species Climate Change Loss of Surface Water Quality Forest Roads Climate Change 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 Loss of Urban Trees & Forests Loss Urban Ecosystem Function Loss Social & Economic Benefits of Urban Trees Lack of Planning & Mgt. Invasive Species

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

Consult the State Wildlife Conservation Strategy-- 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

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)