1. Presented by: Peter McAuliffe, Sr. Forestry Specialist, Regulatory Affairs and Stewardship Branch Lori Miller, GIS Analyst, Regulatory Affairs and Stewardship Branch BC Oil and Gas Commission Fibre Utilization Plan Training Presentation to: Industry Clients January 14, 2009

2. Fibre Utilization Information Letter 08-21 Requirement: All merchantable fibre cleared in conjunction with oil and gas activities will be utilized where practicable. Oil and gas operators will monitor and report both merchantable and non-merchantable fibre volumes to the Commission. Effective January 15, 2009, all new holders of a MLTC and/or CPs issued by the Commission must utilize all merchantable fibre as described below. A Fibre Utilization Plan is to be submitted to the Commission along with each application that impacts merchantable fibre. This plan will include an estimate of the volume of both merchantable and non-merchantable fibre to be cleared and a description of how the fibre will be utilized or made available for utilization.

3. Fibre Utilization Information Letter 08-21 (cont’d) Fibre Merchantability: Fibre is considered merchantable if it meets the merchantability specifications listed in Section 1.5 of the current Interior Appraisal Manual (2008) 12.5 cm DBH for Pl, 17.5 cm DBH (all other species) Exemptions: Exemption from fibre utilization requirements must be requested at the time the application is submitted. Exemption may be given by the Commission if: 1. the volume of fibre is small and/or remote, or 2. the holder of the MLTC or CP can provide documentation from potential buyers stating that the species and grades of fibre are not currently being utilized, or 3. the recovery of the fibre would cause damage to other resources in excess of the value of the fibre recovered, or 4. utilization of the fibre is not practicable. Reporting Requirement: Oil and gas operators are required to submit a report of merchantable fibre utilized at the end of the clearing phase for each project. The Commission will monitor and inspect projects to verify submitted reports and will track utilization by the oil and gas industry. Forest Health: All fibre waste left on site must be managed to minimize fire and pest risks and must be disposed in accordance with the Wildfire Act and Regulations.

4. Fibre Utilization Plan Form Fibre Utilization Plan Administration (Section A) This form must be submitted with any application requiring clearing of trees. Company Name: OGC File Number: Company File Number: MLTC# : Phone # Land Referral Agent: Forest District: Fibre Volume and Extent (Section B) New Crown Land Area Disturbance (proposed) ___ Ha. (not including woodlot area) Source of Volume Estimate:  Forest Cover Maps  Appraisal  Ocular estimate Volume Summary of Merchantable Timber (initial estimate) (final estimate) Coniferous ____m 3 Deciduous ____ m 3 Coniferous ___ m 3 Deciduous ____m 3 Volume Summary of Non-Merchantable Timber (initial estimate) (final estimate) Coniferous ____m 3 Deciduous ____m 3 Utilization Plan (Section C)  Exemption Requested – Justification attached  Process to Highway Haul specs and deck at roadside (include GPS coordinates for proposed deck sites)  Process to Mill specs and deliver to ____ (name facility and location)  Utilize material on site for ___ (list uses) Zone: North Central East/ West South

5. Sample Fibre Utilization Plan and Request for Exemption SAMPLE FIBRE UTILIZATION PLANS: (1)Company XXXX plans to deliver the merchantable component of cleared timber to the YYYY mill in ZZZZZZZZ. (2)Company XXXX plans to deliver only the merchantable white spruce and pine components of cleared timber to the YYYY mill in ZZZZZZZZ. (3)Company XXXX plans to deck the peeler component of cleared timber at the following location: (give coordinates). (4)Company XXXX plans to utilize 50% of the non-merchantable component of cleared timber for biofuels feedstock, to be delivered to the YYYY mill in ZZZZZZZZ. (5)Company XXXX does not plan to utilize any of the fibre cleared in this project (see request for exemption letter for rationale). (6)There is no fibre within the boundary of the proposed project area, so no fibre will be utilized. SAMPLE REQUESTS FOR EXEMPTION FROM FIBRE UTILIZATION REQUIREMENT: Exemption from fibre utilization requirements must be requested at the time the application is submitted. Exemption may be given by the Commission if: 1) the volume of fibre is small and/or remote, or 2) the holder of the MLTC or CP can provide documentation from potential buyers stating that the species and grades of fibre are not currently being utilized, or 3) the recovery of the fibre would cause damage to other resources in excess of the value of the fibre recovered, or 4) utilization of the fibre is not practicable.

6. Derivation of Volume Estimates Downloadable Data GeoBC data discovery download site at the following link: http://aardvark.gov.bc.ca/apps/dwds/home.so VRI - Forest Vegetation Composite Polygons and Rank 1 Layer (the data is freely available and users do not require a BCeID to access the site). File information: FOREST VEGETATION COMPOSITE POLYGONS: A composite table comprising the polygon table attributes including tree species and tree volume tables. Procedure Import data into GIS software from the mapsheet(s) of interest Load VRI composite polygon data containing volume attributes (file above) Overlay specific oil and gas application data Query Select underlying forest cover polygon(s) to query attributes for entry into excel spreadsheet Enter attributes into provided Fibre Volume Utilization Calculation Table Mandatory VRI polygon attributes: polygon id, species code and number, volume per hectare (at 12.5 cm dbh for Pl and 17.5 cm DBH for all other species), area of polygon with project.

7. Derivation of Volume Estimates (cont’d) Insert data into spreadsheet: Enter each species into the appropriate coniferous or deciduous spreadsheet. A list of species can be found in the above link for the VRI data dictionary. If the feature falls within multiple VRI polygons, the application disturbance area must be adjusted to reflect the area within each VRI polygon. The Merchantable Volume (m3) and Non-merchantable Volume (m3) will be calculated under the respective columns and total volumes will then be populated. Non-merchantable Volume can be calculated from the estimated average of 20% of the Merchantable Volume. Detailed instructions are posted on the OGC ftp site at: ftp://www.ogc.gov.bc.ca/outgoing/OGC_Data/Forestry/FibreUtilizatio n/ ftp://www.ogc.gov.bc.ca/outgoing/OGC_Data/Forestry/FibreUtilizatio n/

8. Polygon ID - 696

9. Polygon ID – 612

10. GEOPHYSICAL ROJECTS Geophysical Project Volume Estimate: The procedure for estimating fibre volumes on geophysical projects requires the applicant to visually integrate all polygons or satellite photo cover types for the entire project area and use the average or typical polygon type to calculate volumes using the volume calculation spreadsheet.

11. Volume Calculation Spreadsheet Example of feature falling within multiple VRI polygons Polygon ID Species Code NumberSpecies Volume/ha (m 3 ) Application Disturb ance Area (ha) Merchantable Volume (m 3 ) Non-merchantable Volume (m 3 ) 6461SW449.91.45652.355130.471 6462EP3.71.455.3651.073 8541SW215.70.47101.37920.2758 8542PL104.80.4749.2569.8512 8543AT27.80.4713.0662.6132 Total Merchantable Volume (m 3 ): 821.421 Total Non-merchantable Volume (m 3 ):164.2842 Total Fibre Volume (m 3 ): 985.7052

12. To be submitted at end of the clearing phase of each project. Summarizes actual level of fibre utilization. Used by OGC to monitor utilization and to confirm that the Fibre Utilization Plan is being followed. Fibre Utilization Report

13. Questions/comments? Contacts: Peter McAuliffe (policy) Peter.McAuliffe@gov.bc.ca (250)365-2774Peter.McAuliffe@gov.bc.ca Lori Miller (GIS procedures) Lori.Miller@gov.bc.ca (250)261-5713Lori.Miller@gov.bc.ca PACA Staff (specifics): Annette Block (North Zone)- Annette.Block@gov.bc.ca (250)261-5798Annette.Block@gov.bc.ca Karen Larsen (East-West Zone)- Karen.Larsen@gov.bc.ca (250)787-3213Karen.Larsen@gov.bc.ca Glen Swanson (Central Zone)- Glen.Swanson@gov.bc.ca (250)261-5714Glen.Swanson@gov.bc.ca Dean Zimmer (South Zone) - Dean.Zimmer@gov.bc.ca (250)787-3230Dean.Zimmer@gov.bc.ca Thank you.