2008 Annual Members Meeting

1. 2008 Annual Members Meeting Forest Biometrics Research Institute 435 NW Fifth Street, Suite D Corvallis, Oregon 97330 April 7, 2008 Salbasgeon Inn, Corvallis

3. FBRI Meeting Agenda Structure and Organization of FBRI FBRI Organization and Staff FBRI Technical Services Members General round of participant introductions Goals and Mission of FBRI Progress through 2007 Refinements and Geographic Range of Species Libraries Development of the 10m Site Classification Method Quantifying Regeneration Success with the CASH Card Establishment of Response Surface Mosaic Trials Oregon Coast Range Douglas-fir Eastern Cascades Ponderosa Pine Ranking Family Growth Differences in Progeny Trials

4. FBRI Agenda (II) Site Productivity Classification (Workshop) Introduction to the 10m Site Class Concept Site Productivity Stratification of your Landbase Silvicultural Growth with the CASH Card Permanent Plots & Libraries (Workshop) FBRI Localized & Certified Regional Libraries Quantifying Family Growth Differences in Progeny Trials Quality and Location of Old / New Plot Installations Response Surface Mosaic – Spatial Thinning Method

5. FBRI Agenda (III) Commitments and Projects in 2008 Warm Springs – 10m Site, Ponderosa Pine RSM Thinning Idaho Department of Revenue – 10m Site Stratification Western Mensurationists Meeting – Boris Zeide visit 10m Site Publication 2008 Staffing and Budgeting Plans One or Two Additional Biometricians, 2008 – 2009 Conversion to Endowment Funding Base Letters of Support and In-House Contacts Feedback – Questions & Answers

7. Structure of FBRI IRS 501(c)3 Tax-exempt Status as Non-Profit Research Institute, Effective 14-Aug-2003 Filed Articles of Incorporation as Non-Profit Corporation in Oregon / Montana Filed Trademark Rights on FBRI Name Ensure Identity and Longevity of the Institute Ensure Security of Its Endowments and Funds

8. FBRI Organization Three Founding Directors (2002-2005) James D. Arney, Forest Biometrics LLC, Chairman Kelsey S. Milner, Champion Prof. of Forestry, Vice-Chairman JoAnn L. Arney, Forest Biometrics LLC, Secretary / Treasurer Evolve to Five Member Board of Directors – 2006 James D. Arney, Forest Biometrics, LLC, President David K. Walters, Roseburg Resources, Vice President Robert Taylor, Potlatch Forest Holdings, Secretary / Treasurer Kim Iles, Iles & Associates, Board Member Kelsey S. Milner, University of Montana (Retired), Board Member

9. FBRI Staff Forest Biometricians: James D. Arney, Ph.D., volunteer, Forest Biometrics, LLC Kelsey S. Milner, Ph.D., one-third time, Retired Brian L. Kleinhenz, Forest Biometrician, full-time Visiting Biometricians / Project-Based Appointments Support Staff: JoAnn L. Arney, Business Manager, part-time (2006 – 2010) Future Staff Expansions Forest Biometrician, M.S. Level (2008 – 2010) Forest Biometrician, Ph.D. Level (2008 – 2011) Full-Time Office Manager (2010 – 2011) Full-Time Technical Support Forester (2010 – 2012)

10. FBRI Technical Support Forest Analytics LLC Terry D. Droessler – Monmouth, Oregon McKenzie River Associates, LLC James Mehrwein – Eugene, Oregon Terra Verde, Inc. James McWhorter – La Center, Washington Eric da Rosa – Mendocino, California Northwest Management, Inc. Thomas Richards – Moscow, Idaho Free State Drivers Chuck Vopicka – Missoula, Montana ForesTree Dynamics, Ltd. Ian Moss – Duncan, British Columbia Total Forestry Jeff Webster – Redding, California Duck Creek Associates Frank Smith – Corvallis, Oregon Hansen Forest Management Chris Hansen - Lakeview, Idaho

11. FBRI Endowments Bureau of Indian Affairs Oregon Bloedel Timberlands Washington Duck Creek Associates Oregon Edgewater Timber Mgmt Idaho Forest Analytics, LLC Oregon Forest Biometrics, LLC Montana ForesTree Dynamics British Columbia Grand Ronde Tribe Oregon Hansen Timber Management Idaho Hood River County Forestry Oregon J-Spear Ranch Oregon McKenzie River Associates Oregon M Three Timber Company Oregon Northwest Management Idaho Quinault Tribal DNR Washington Silver Butte Lumber Oregon Siletz Tribal Nation Oregon Terra Verde Washington, California Total Forestry California Van Eck Foundation Oregon, California

12. FBRI Annual Assessments Bennett Lumber Co. Idaho Collins Pine Oregon, California Conservation Fund Oregon, California Forest Capital Partners Idaho, Oregon, Washington, Minnesota, Louisiana Fort Lewis Army Reserve Washington Giustina Land & Timber Oregon Green Crow Washington Green Diamond Res. Washington, Oregon, California Gualala Redwoods California Inland Empire Paper Washington Lone Rock Timber Oregon Longview Fibre Washington Merrill-Ring Tree Farms Washington Moore Mill Oregon Nez Perce Tribe Idaho Port Blakely Tree Farms Washington, Oregon Potlatch Forest Holdings Idaho, Minnesota, Arkansas Rosboro Forest Products Oregon Roseburg Resources Oregon, California Sealaska Corporation Alaska Seneca Jones Oregon SDS Lumber Company Washington Starker Forests Oregon Stimson Lumber Oregon, Washington Warm Springs BIA Oregon West Fork Timber Washington

14. FBRI Founded 02-Jan-2002 Organized for advanced research, education and service in the field of forest biometrics. Devoted to the advancement of scientifically grounded and verified forest biometrics practices and procedures in the forest industry. Structured to serve the forestry profession and specifically forestry organizations in all Western States.

15. Goal of Assisting Forest Industry in: Achieving maximum productivity potential and use from the forest land base; Integrating all silvicultural treatments, environmental impacts and economic constraints; Deliver and validate improved decision-support tools; and, Quantify treatment effects on biodiversity and landscape diversity.

16. Mission of FBRI (1) Databases: Assist individual companies and agencies to establish, maintain and enhance a field-based permanent plot database of the major species, sites, stocking and silviculture found on each of their own lands. These data will be used to evaluate, verify, calibrate and update growth models within these ownerships. A major database already exists as compiled by Dr. James D. Arney over the past twenty-five years. It has been transferred to the Institute to use, maintain and enhance.

17. Mission of FBRI (2) Regional Libraries: Maintain and enhance the existing sets of Forest Projection System Species Libraries for Washington, Oregon, California, Idaho, Montana, Hawaii, Alaska, Minnesota, Arkansas, Louisiana, British Columbia and Alberta. These libraries provide regional calibrations of growth, mortality, taper and site by species for each of the regions in the United States and Canada.

18. Mission of FBRI (3) Co-operative Databases: Annually incorporate all response surface information into the regional libraries from each of the genetic, vegetative, nutrition and process modeling university-based research cooperatives in the West. Updates limited to FBRI members participating in each external Cooperative Project.

19. Mission of FBRI (4) Library Localization: Assist individual landowners in further localizing these regional species libraries for their own specific geographic regions, tree farms, watersheds, reservations and site-specific datasets. This assistance fulfills three goals: Provides third-party, professional review and technical assistance for localizing yield projection estimates; Provides a basis for obtaining third-party certification of growth projection methods for forest planning under SFI and FSC Programs; and, Expands the research testing and evaluation of biometrics methods, databases and approaches as established by the Forest Biometrics Research Institute.

20. Mission of FBRI (5) Yield Capacity: Assist individual landowners in evaluating and establishing long-term sustained yield levels under current and/or anticipated wildlife constraints, watershed buffers, biodiversity goals and silvicultural constraints. This assistance fulfills three goals: Provides third-party, professional review and technical assistance for establishing local sustained yield potentials under various levels of management and investment; Provides a basis for obtaining third-party certification of sustained yield harvest levels under SFI and FSC Programs; Provides feedback to the Institute on changing goals and policies that may affect future research, database needs and model structures.

21. Mission of FBRI (6) Research & Development: Promote annual review and ranking of biometrics research priorities and software enhancements as suggested by member organizations within the Institute. These ranked priority potentials become core projects in the upcoming year. The resulting research results and summary papers are only distributed to those organizations that have provided financial support to this Institute in some form.

22. Transitions in Services Transitions in 2004: FPS from J.D. Arney to Forest Biometrics, LLC FPS Species Libraries and Databases to FBRI Transitions in 2005 - 2006: FBRI Manages and Updates Libraries FBRI Provides All Workshops and Textbooks Transitions in 2007: FPS from Forest Biometrics, LLC to FBRI Software Updates Distributed from FBRI FBRI Staff Maintain and Distribute all Software & Libraries Transitions in 2008: Support to 50 Organizations in Ten States & Provinces

23. FBRI Financial Status

24. FBRI Return on Investment Example Annual Assessment 300,000 Acre Tree Farm $6,000 per Year at $0.02/acre Return on Investment $170,000 Annual Research & Development 28 Times ROI (170,000 / 6,000)

26. FBRI Regional Libraries

29. Current FBRI Databases Over 23,000 Permanent Research Plots 75,000 Observations of Growth & Yield 3,000,000 Tree Measurements Up to 70 Years of Observation Over Twenty Species Represented $22 Million Dollar Investment ($300/Msmt) All Databases in Standardized Format

30. Species in FBRI Libraries Douglas-fir Western hemlock Mountain hemlock Grand fir White fir Sub-alpine fir Silver fir Noble fir Sitka spruce Englemann spruce White spruce Black spruce Pacific yew Rocky mountain juniper Alaska yellow cedar Western red cedar Western larch Western white pine Ponderosa pine Lodgepole pine Jack pine Sugar pine Coast Redwood Eucalyptus grandis Eucalyptus saligna Eucalyptus deglupta Queensland maple Bigleaf maple Red Alder Black cottonwood Quaking aspen Tan oak

31. Member Database Agreements Level I Available to all FBRI approved projects. Level II Available to specific projects on landowner’s case-by-case approval only. Level III Available only for landowner’s own internal proprietary use.

32. Sharpen the Saw (Stephen Covey) Background Analyses and Validations Collect Felled-Tree Taper and Site Profiles Collect and Evaluate Regeneration “CASH” Correct Age, Site, Height for Success Install & Maintain Permanent Growth Plots Evaluate Existing Permanent Installations Add New Installations to Fill Ownership Matrix Participate in Regional Growth Model Analyses Update & Localize your Regional Species Library

33. The Forest Projection System (FPS) Forest Inventory Relational Database Stand Polygon - #, Type, Size Cruise Selection / Cruise Compiler Cruise Expansion Re-Merchandiser Habitat Classification Growth and Yield Model (Individual-tree, DD) Species, Size mixtures (natural, planted & regeneration) Localized Site, Clumpiness, Taper relationships Silviculture effects (Site Prep, Brush, Animal, Thin, Fert, Prune) Linked GIS Database – Live FPS ? GIS Interface Harvest Scheduling Model Stand & Neighbor (GIS) Constraints Watershed Constraints (basin forest cover) Wildlife Constraints (nesting sites) Ownership Constraints (pre-assigned & periodic set asides)

34. Inventory Methods Continuous Forest Inventory (CFI) – <1980 Re-Measure Permanent Plots for Growth Forest-Wide Statistics, no Stand details Stand-based Inventory – 1990+ Aerial Photo Stratification of Vegetation Types Annual Sampling of Stands within Types Temporary Plot Designs within Stands Use of Growth Models to Update Inventory

35. Growth Models Stand-based Inventory Attributes (/Stand) Unique Species / Size / Age / Spatial Distrib. Unique Site Productivity, Operability, Access Unique Silvicultural Constraints / Options Tree-List Growth Models update Stands Model Confidence sets Re-Measurement Timing Model Validation sets Local Confidence Model Flexibility sets Range of Silviculture

38. Regional vs Local Calibration Regional (Global) Calibration – 1990s Reliable G&Y Forecasts and Options Strength in Large Research Databases Localized Calibrations – 21st Century Species Trends in Taper / Bark Profiles Species Trends in Relative Productivity Habitat Trends in Abundance of Regeneration Species Trends in Growth Dynamics

39. Harvest Planning Methods 1) Sustained Yield Capacity – 100 Year Plan Implement Range of Silvicultural Regimes Set Optimal Goals / Capacity for Yield & Value Apply Constraints – Riparian/Wildlife/Neighbor 2) Operational Plan – 20 Year Plan Subset Convert to Harvest Unit Polygons Set 5-Year Periods, Apply all Constraints Provide 5-Year Harvest List to Logging Depart.

40. Annual Inventory Update Grow Last Year’s Inventory Forward 1-Year Report Growth Rates – Species/Volume/Size Add New Cruises – Report Inventory Adjust. Overlay GIS Harvest Depletions Report Harvest Depletion Statistics (Invent.) Re-Run Harvest Planning Analyses Update 100-Year Sustained Yield Update 5-Year Harvest List of Stands

41. Professional Inventory / Planning Forester100,000 – 300,000 Acre Tree Farm Typically One Person In Organization B.S. Degree from Forestry School 3 – 15 Years Professional Experience Reports Inventory & Harvest Plans Annually Responsible for Inventory Cruise & Depletions Responsible for Silvicultural Planning & Costs Responsible for Harvest Levels & Plan Responsible for Assessing All Constraints

45. FBRI Research & Application(Our Mission) New R & D Technology Transfer Technical Support to the Industry Implementation of New Technology Integration of Genetics, Site, Region Intensive Plantation Culture Application & Training of Biometric Tools Continuing Education, Documentation

46. 2007 Completed Projects 10m Site Stratification Projects Forest Capital Partners – Colville, Coeur d’Alene, La Grande, Monmouth, Medford Collins Pine – Chester, California Response Surface Mosaic – Field Trials Starker Forests – Lilligren & Swank Progeny Vegetation Mgmt Coop – Stem Mapping Non-Tree Veg. NWTIC – FBRI Library to Incorporate Genetic Gains FBRI Web Site Update FBRI Inventory & Planning / Calibration Workshops Review and Analysis of Inventory / Planning Functions Presentation to Inland Empire Tree Improvement Coop Minor Enhancements & Debugs of FPS Software

47. 2008 Project Commitments Warm Springs Reservation 10m Site Stratification Project Ponderosa Pine – Response Surface Mosaic Review Inventory / Planning Applications Organize 2008 Western Mensuration Mtg Host Dr. Boris Zeide as Guest Speaker Idaho State – 10m Site Stratification Ten Timber Counties (2-Year Project) Publication of 10m Site Method – Western Journal of Applied Forestry

48. FBRI Staff & Location Forest Biometricians: James D. Arney, Ph.D., volunteer, Forest Biometrics, LLC Kelsey S. Milner, Ph.D., one-third time, Retired Brian L. Kleinhenz, Forest Biometrician, full-time Visiting Biometricians / Project-Based Appointments Support Staff: JoAnn L. Arney, Business Manager, part-time (2006 – 2010) Future Staff Expansions Forest Biometrician, M.S. Level (2008 – 2010) Forest Biometrician, Ph.D. Level (2008 – 2011) Full-Time Office Manager (2010 – 2011) Full-Time Technical Support Forester (2010 – 2012) Evolve to FBRI R&D Building / Training Center Research Library / Database Archive

49. FBRI Request for Endowments Requests to Foundations in 2008 Two requests for 3-yr Biometrics Salary Sixteen individual Requests for $500,000 Each Need FBRI Members’ “Letter of Support” Target Fund of $8 million dollars Provides Permanent Operating Budget Provides Permanent Salaries for Staff Retire the Annual Assessment to Members