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This presentation from April 5th, 2007, delves into the impact of Mountain Pine Beetle on harvest levels and forest values in Merritt. It aims to evaluate silviculture techniques to mitigate these impacts. The content covers various projections, conversion to managed harvest, economic indicators like ROI, and sensitivities in forest management strategies. The FFT Opportunity Project and environmental reporting considerations are also explored. Detailed analysis and scenarios are provided to enhance understanding and decision-making.
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Merritt TSA Type II Silviculture Analysis Merritt, B.C. April 5th, 2007
Presentation Overview • Project Objectives • MPB in Merritt • Basecase • Sensitivity Analyses • FFT Opportunity
Project Objectives Impact of MPB on harvest levels and other forest values such as wildlife habitat Evaluate how silviculture can reduce the impacts More specifically: • When, and by how much, will the beetle affect timber supply • Recommend and assess potential ways to improve timber supply and non-timber values • Prioritize spending
Defining a Base Case • Updated netdown; • Updated resultant file, which includes an updated inventory; • New analysis units and yield tables; • Recalculation of the PSI for each resultant polygon; • Old growth management area (OGMAs); • Disturbing the inoperable; • Updated UWR modelling; and • MPB projections to 2015.
-Return on Investment (ROI)-Merchantability Economic Indicators
Return On Investment (ROI) • Uses TIPSY to generate: • Yield Tables • Costs and Revenues • Standardized FFT IRR Worksheet: • Calculates ROI and NPVs
Example ROI Output ROI = 3.38%
Merchantability A tool for describing the relative economics of timber harvesting opportunities across a forested landbase. Merchantability = Product Value – Operating Costs
Merchantability- Product Value Product value approximates the selling price for lumber and chips Product Value is a function of: • Site Index • Species • Stocking • Age
Merchantability- Operating Costs Costs involved in operating, building roads, harvesting wood, manufacturing products and reforestation • Operating cost is a function of: • Slope • Terrain • Volume/ha • Cycle time • Species • BEC zone • Stocking • Age
Merchantability- Index • Each stand given a Merchantability Class • Summarized by graphs and maps
Plant all unharvested MPB Plant 122,000 ha Mid term increase: 370,000 m3/year
Plant Unharvested MPB-ROI > 2% Plant 89,000 ha Mid term increase: 370,000 m3/year
FFT Opportunity Scenario • Increased Planting of Genetically Improved Spruce • Plant all unharvested MPB kill with an ROI > 2% • CWS Restoration (planting) occurs irrespective of ROI • Retention of 100% FN Retention areas
Environmental Reporting • Seral Stage • Patch Size • Fine filter- UWR/Grizzly/Woodpecker • Harvest in FN Retention Area • CWS- ECA/Road Density/Seral stage
Harvest in FN Retention Areas • No harvest in FN 100% for 15 years