AN EXAMPLE OF SUSTAINABLE DEVELOPMENT IN INDIAN COUNTRY January 21, 2004

1. AN EXAMPLE OF SUSTAINABLE DEVELOPMENT IN INDIAN COUNTRYJanuary 21, 2004 Warm Springs Forest Products Industries (WSFPI)

2. “Sustainable Development” • “Development seeking to meet the need of the present generation without compromising the ability of future generations to meet their own needs.” • Brundtland Report, 1987 Warm Springs Forest Products Industries

3. Warm Springs Forest Products Industries • “For Profit” Sawmill Enterprise of the Confederated Tribes of Warm Springs. • Located in Warm Springs, OR. • 70 Million Board Foot Capacity. • Electrical Generation Capability. • Cutting Contract Provides for Exclusive Use of Reservation Timber at Market Rates. • Employs 132 People. • Supports 101 Tribal Families. Warm Springs Forest Products Industries

4. 3 COMPONENTS OF SUSTAINABILITY • SOCIAL • ENVIRONMENTAL • ECONOMIC Warm Springs Forest Products Industries

5. Tribal Council Mandate To WSFPI • “Profit” is First Priority. • “Employment of Tribal Members” is the Second Priority. • “Provide Education and Training” is the Third Priority. Warm Springs Forest Products Industries

6. COMPONENTS vs. MANDATE • Social and Economic Components of Sustainable Development are Addressed through the Tribal Council Mandates. Warm Springs Forest Products Industries

7. Environmental Component • Integrated Resource Management Plan (IRMP). Implemented 1992. • Annual Allowable Timber Harvest at 45% of Biological Potential of Reservation Forest. • One Third of Commercial Timber Base in Conditional Use Classification. • Forest Stewardship Council (FSC) Certification, November 2003. Warm Springs Forest Products Industries

8. WSFPI Management Mandate to Employees • “Safety”- First Priority • “Quality”- Second Priority • “Production’- Third Priority SOCIAL-ENVIRONMENTAL-ECONOMIC Warm Springs Forest Products Industries

9. WSFPI STRATEGIC PLAN • INCREASED PROFITS: • Employee Education and Training. • Cost Control. • Reduced Unit Costs. • Increase productivity. • Enhanced Sales Revenue. • Product Selection. • FSC Certification. Warm Springs Forest Products Industries

10. WSFPI STRATEGIC PLAN • INVESTMENT: (Driven by proven resource supply.) • Small Log Technology. • Bio-Energy- • Phase 1- New Boiler. • Phase 2- New Turbine to enable Cogeneration (Plant load). • Phase 3- Added Electrical Generation Capacity to meet Market Needs. Warm Springs Forest Products Industries

11. WSFPI STRATEGIC PLAN • Develop Off-Reservation Timber and Biomass Sources: • Working with USFS. • Working with Local Governments. • Working with Collaborative Processes. • MOU Between CTWS and Federal Government. Warm Springs Forest Products Industries

12. WSFPI STRATETIC PLAN • Off-Reservation (con’t) • Recognition that to increase the required supply of sawlogs for the lumber manufacturing facility, we must find a way to profitably utilize the very small diameter forest products associated with fuels reduction and thinnings. Warm Springs Forest Products Industries

13. WSFPI STRATEGIC PLAN • PROFITS, EMPLOYMENT, EDUCATION AND TRAINING in conjunction with strong ENVIRONMENTAL POLICIES on and off the Reservation equals: SUSTAINABLE DEVELOPMENT! Warm Springs Forest Products Industries

14. Warm Springs Forest Products PO Box 810 Warm Springs, OR 97761 541-553-1131 541-553-1561 FAX www.warmsprings.com Warm Springs Forest Products Industries