1. Protecting Pinelands Sands Forest and Aquatic Habitats A landscape scale approach to habitat protection Thank you Mr. Chair: For the record, I am Richard Peterson Minnesota DNR Forest Legacy Coordinator. Thank you for your support for phase 1 which has already helped protect the nearly 900 acre Badoura Jack Pine SNA which closed in July of this year. This acquisition features the rare jack pine woodlands native plant community. Approximately $500,000 of our $1,050,000 Ph. 1 appropriation was spent on this acquisition (217 acres worth of total). 2300/acre Total project costs of $2,070,000. 1

2. Current Situation: The Phase 2 proposal continues the work of Phase 1 and is part of an interdisciplinary effort by the Department of Natural Resources to assess and prioritize for protection industrial forestland in west central Minnesota in the Pinelands Sands area. In Phase 2 we are proposing to protect by fee acquisition up to 2,000 acres of priority forest land and associated habitats. (SEE MAP). The project area (SEE MAP) is located in northeastern Wadena County and contains important land and water resources including a state forest, several WMAs and a state designated water trail-the Crow Wing River. The landowner for this proposal is an industrial timberland owner with lands across northern MN. Like many other industrial ownerships, these lands are interspersed with public forest lands and provide habitat continuity. This area contains a mosaic of habitats including forest, wetlands and aquatic habitats. The forests include a diversity of types and ages to benefit a variety of wildlife. Pine, oak, aspen forests predominate with wetlands, lowland brush, grasslands, rivers and small lakes and ponds scattered throughout. The Crow Wing River provides additional habitat diversity with its bottomland forests of elm, ash, cottonwood, box elder, oak, basswood, maple, willow and aspen as well as open wetlands, bogs and swamps found throughout the river corridor. Common game species in the area include deer, ruffed grouse, woodcock, wild turkey, black bear, timber wolves, and waterfowl. Other notable species include Greater Prairie Chicken and Sharp-tailed Grouse. Game fish species in the Crow Wing River includes northerns, walleye, and bass. Red horse, white sucker, and rock bass are also present. This area is an important recreational resource in the state and that draws thousands annually to recreate. Hunting, fishing, canoeing, camping, trail riding, and hiking are some of the other popular recreational uses of the area. The Huntersville SF, several WMAs and the Crow Wing River have been identified in the State Wildlife Action Plan as important habitat areas for species in greatest conservation need. Listed species on the target properties or in adjacent waters include: Greater Prairie Chicken, Least darter, and Black Sandshell ( a mussel) – all listed as special concern species. Pugnose shiner is threatened. Bald Eagle is on watch list. Several others within 1 mile of the properties. 2

3. Risk/Threat-Why are we concerned? There is high demand in this area for additional cropland due in part to high commodity prices is resulting in forest conversion to irrigated agriculture. The results are outright loss of forest habitat but also results in an increasingly fragmented and unconnected forest landscape. Because of organizational restructuring, timberland owners, including the owner of the subject properties, are turning to land sales as part of their revenue stream. We’re losing forest habitat as lands are being sold and converted to agricultural uses. NOTE: Most/if not all private industrial forestland is currently leased and not publically accessible. Over 7,500 acres of industrial forests within this landscape alone have been converted to irrigated cropland, with more to follow. 140,000 acres statewide have been sold. Some of the consequences of the sale and conversion of private industrial forestland include: a) parcelization and conversion of larger blocks of forest habitat; b) Resulting in a more fragmented and unconnected landscape; c) loss of access to public forests for management and recreational purposes; and d) greater impacts to ground and surface waters from agricultural uses. 3

4. 4 DNR Response and Approach Our goal in this landscape is to conserve and protect forest parcels with high habitat and other ecological values that also provide access, connectivity and public land consolidation benefits. This is a great opportunity for DNR to add key inholdings and adjacent parcels to existing management units resulting units that are larger, better connected and better consolidated. The parcels acquired by this proposal would become part of existing management areas – either the Huntersville State Forest or one of the several WMAs in the vicinity. As note earlier, this project is part of an interdisciplinary effort by the Department of Natural Resources to assess and prioritize for protection industrial forestland in west central Minnesota in the Pinelands Sands area. The effort has included representatives from the Divisions of Fish and Wildlife, Ecological and Water Resources, Parks and Trails, and Forestry who have identified parcels containing high ecological, watershed, habitat, recreational, access and timber values. The process has included the participation of county boards, county staff and landowner representatives.

5. 5 In summary, Benefits: Prevent parcelization, provide for more consolidate public ownership with better management and public access. This proposal will result the consolidation of larger blocks of public forestland and enhance management access to state owned parcels. By preventing parcelization and land conversion, this proposal will reduce habitat fragmentation in the landscape. The resulting lands will be open to public access; currently they are closed to the public as they are in private hunting leases. Consistent with multiple statewide plan goals. MN State Wide Conservation Plan Priorities to: 1) protect large blocks of forestland; 2) improve connectivity and access to recreation; 3) protects priority land habitats; 4) protects critical shoreland of lakes and streams; and 5) supports and expands sustainable practices on working forestlands. Efficiency in land acquisition; approximately 97% of the funding will go directly to habitat protection. 2% professional services and 1% to support travel, salary and agency direct support services. Direct and Necessary/Admin/Direct Support Services Costs – Why is yours $X and another proposal’s is $Y?...Why is your admin cost so high?, etc.The department uses a standard method to calculate each project’s direct and necessary support costs (such as HR, safety, bill processing, communication, etc.). I can’t speak to that in more detail, but the department would be happy to come back and talk with the Council again on the topic. Easement Stewardship – How are you going to spend/track stewardship $$?...How does the department track and ensure $ set aside for AMA stewardship is only spent for that? -The department is looking to do something similar to what we’ve already done in Forest Legacy, and we’re working on how to do it specific to each program. I can’t provide any more detail on that at the moment. (do not offer DNR to testify on the topic, as it’s still under development).