Historic, archived document Do not assume content reflects current scientific knowledge, policies, or practices. 25 Ym ou LOG EXPORT RESTRICTIONS OlF Vhs WESTERN SUAUES AND BRITISH COLUMBIA by JOHN W. AUSTIN a eden 4s S & PACIFIC NORTHWEST FOREST AND RANGE EXPERIMENT STATION FOREST SERVICE U.S. DEPARTMENT OF AGRICULTURE USDA FOREST SERVICE RESEARCH PAPER PNW-91 PORTLAND, OREGON 1969 The volume of logs exported from the Pacific Northwest has been widely publicized in the past few years. These exports, with the strong domestic market for wood products, have resulted in increasing demands on the Pacific Northwest's timber resources. In response to these pressures, various log export restrictions and primary manufacturing requirements for timber products have been proposed and enacted. This paper presents the main provisions of these export restrictions. CONTENTS JOINT DETERMINATIONS OF APRIL 22, 1968, BY THE SECRETARIES OF AGRICULTURE AND INTERIOR . 5 Log exports limited to 350 Tenor ieara Bock on ececau lands in western Washington and western Oregon Washington National Forests were allocated 199 million Reena feet of export quota ... 66.0 3 Oregon Federal lands were Binineated 151 mieton ford cee of export quota: 91 on National Forests, 60 on BLM Districts FOREIGN ASSISTANCE ACT OF 1968 Export quota of 350 million board eee exeended cneouen 1971 National Forest log export allocation is 187 million board feet in Washington, 88 million in eos and 15 million in California . : Bureau of Land Manneeneae aralecaces its Enon cable einben volume to western Oregon districts ; Some cedar declared surplus and exportable AG weoninecont Oregon, California, and Alaska STATE OF OREGON RESTRICTION . : Oregon requires primary processing aca Uniceds erates WASHINGTON STATE'S INITIATIVE 32 : : Export restriction defeated in Washineton: Reeseneie no limitation on State logs ....... SMALL BUSINESS ADMINISTRATION'S SET-ASIDE PROGRAM Small Business Act limits exports to 30 percent of set-aside sale volume .......... PRIMARY PROCESSING REQUIREMENTS OF SUSTAINED-YIELD UNITS Shelton Cooperative Sustained-Yield Unit requires local processing of a volume equal to 80 percent of unit timber . Grays Harbor Federal Sustained-Yield Unit requires 100-percent local processing .. S old 699 6 Lakeview Federal Sustained-Yield Unit prondbies Bxtoct COMPO OCR EM ciiccitirola vol nei tieytrs) ctolhee, “cl No vex a Joi vie iver f ogi isl) va) vere ACT OF APRIL 12, 1926, ON FEDERAL TIMBER IN ALASKA . Alaska Federal lands prohibited from exporting logs to other 49 States as well as to foreign countries STATE OF ALASKA'S LOG EXPORT RESTRICTION . All log expert is prohibited on State- eoneroried Hands@ineAVaskayes 3) 6 i 6 «+s BRITISH COLUMBIA LOG EXPORT RESTRICTIONS ......... Provincial restrictions require primary ieee within British Columbia... . 6 6. oo. oo 8 Dominion restriction supports peouinetenl Beimaey processing requirement .... SUMMARY COMPARISON OF VARIOUS LOG EXPORT RESTRICTIONS 12 13} JOINT DETERMINATIONS OF APRIL 22, 1968, BY THE SECRETARIES OF AGRICULTURE AND INTERIOR Log exports limited to 350 million board feet on Federal lands in western Washington and western Oregon On April 16, 1968, the Secretaries of the Departments of Agriculture and Interior jointly issued determinations on log exports, effective April 22a covering Federal timber in western Washington and western Oregon and a few National Forest areas in the eastern portions of the two States. The eastern areas were included because of their economic relationship to the timber economy of the western areas. These plans, which were to be effective until June 30, 1969, required that all but 350 million board feet of timber sold annually from certain designated National Forests and Bureau of Land Management (BLM) lands in the Pacific North- west receive primary manufacture in the United States. The exempt volume was a combined judgment determination by the two Federal agencies of the volume that could be excepted from domestic manufacturing. Western Washington and western Oregon National Forests were allowed an annual exemption from the primary proc- essing requirement of 290 million board feet (long log, Scribner scale) and the Bureau of Land Management was allowed an exemption of 60 million board feet on its western Oregon lands. The National Forest portion was divided among the various forests according to estimated amounts of National Forest timber believed to have been exported from the producing zones during the previous year. The plan covered all Forest Service advertised sales with an appraised value in excess of $2,000. The Bureau of Land Management allocated its 60 million board feet to the Bureau's five western Oregon districts in direct proportion to each district's allowable cut. Such exempt volume was allocated to individual sales of 100,000 board feet or larger, on a basis of approximately 5 percent of the contract volume for such sales. All western Oregon Bureau of Land Management timber sale contracts of 100,000 board feet or more required primary manufacture of approximately 95 percent of the contract volume to be done in Washington, Oregon, or California. Sales of less than 100,000 board feet required primary manufacture of all sale volume in the three-State area. These log export restrictions applied to all species except Port-Orford-cedar which was declared surplus to domestic needs. Primary manufacture under these restrictions consisted of cants sawn on two sides, or squares that were 8 inches or less in thickness through the sawn dimension, and smaller sawn products, veneer, pulp, or chips. Under these restrictions, if a sale were offered and there were no bidders, the sale could then be reoffered without the primary man- ufacturing requirement. Poles and piling, structural timbers, and other products that would be used without further processing and that required no further manu- facture were also exportable. With respect to Bureau of Land Management timber, i) — USDA Forest Service. Plan for requiring domestic primary manufacturing of logs from National Forest land in the Pacific Northwest. 1968. shipment of such products outside the States of Washington, Oregon, or California required written approval of the Bureau. Sale contracts made before April 22, 1968, were not affected by the restrictions. Washington National Forests were allocated 199 million board feet of export quota The export allocations to National Forest areas in Washington were as follows: Annual exportable National Forest log volume (Million bd. ft., Scribner long log scale) Mount Baker 45 Snoqualmie 59 Olympicl/ 30 Gifford Pinchot 55 Wenatchee2 10 Total 199 1/ — Restriction did not apply to either the Grays Harbor Federal Sustained-Yield Unit or the Shelton Cooperative Sustained-Yield Unit, both of which are located on the Olympic National Forest. Zi Applied only to the Forest's west-side Ranger Districts, i.e., Cle Elum and Lake Wenatchee Ranger Districts. Oregon Federal lands were allocated 151 million board feet of export quota: 91 on National Forests, 60 on BLM Districts In Oregon both the Forest Service and the Bureau of Land Management had volumes exempted from the primary manufacturing requirements. The areas and al- locations in western Oregon were as follows: Annual exportable National Forest or District log volume (Million bd. ft., Scribner long log scale) National Forests: Mount Hood Syl Willamette 20 Siuslaw 10 Umpqua 2 Siskiyou 3} Rogue River al Deschutes L/ = Total, National Forests 91 Bureau of Land Management Districts: Salem 14 Eugene 9 Coos Bay 12 Roseburg 10 Medford aD) Total, Districts 60 Total Oregon 151 1/ — Applied only to the Forest's west-side Ranger Districts, i.e., Sisters, Bend, and Crescent Ranger Districts. This log export restriction was superseded on January 1, 1969, by part IV of the Foreign Assistance Act of 1968 (Morse Amendment). FOREIGN ASSISTANCE ACT OF 1968 Export quota of 350 million board feet extended through 1971 Part IV of the Foreign Assistance Act of 1968 (Morse Amendment) specifies that not more than 350 million board feet of unprocessed timber can be sold an- nually from Federal lands located west of the 100th meridian (a line running through the middle of North Dakota in the north and Texas in the south) for export from the United States.2/ This limitation is effective for each of the calendar years 1969 through 1971. The amendment covers all advertised sales with an ap- praised value over $2,000 and, as it is effective for the life of the timber sale contract, will not necessarily expire on December 31, 1971. The amendment also applies to timber sale contracts which are extended at the request of the purchaser. This is true only on contracts made prior to the April 16, 1968, determination in western Washington and western Oregon, or con- tracts which were made prior to the effective date of the Foreign Assistance Act of 1968 (January 1, 1969) elsewhere west of the 100th meridian. The 350 million board feet of exportable timber has been allocated 290 million board feet to the Forest Service and 60 million board feet to the Bureau of Land Management for calendar year 1969.3/ The portion of exempt volume to be allocated between the Forest Service and the Bureau of Land Management, and to each of the National Forests and BLM Districts, is subject to change in 1970 and 1971; however, the total exemption, 350 million board feet, will remain unchanged through 1971 unless specific quantities and species of unprocessed timber are declared surplus to domestic needs. 2 ZI U.S. Congress. Foreign assistance act of 1968 (P.L. 90-554, H.R. 15263), pt. IV. 1968. 3 F ey USDA Forest Service. Interim plan for implementing export restrictions of unprocessed timber from National Forests located west of the 100th meridian. 1968. The restriction defines processed timber as: 1. Lumber and construction timbers, regardless of size, manufactured accord- ing to standards and specifications suitable for end product use 2. Chips, pulp and pulp products (in Alaska, which does not presently share in the exempted volume, only chips from milling and logging wastes will be considered to have received primary manufacture and will be exportable only if there is no economic market for this material in Alaska.) 3. Green veneer and plywood 4. Poles and piling cut or treated for use as such 5. Cants sawn on two sides, squares, and lumber cut for remanufacture of a nominal 8 inches in thickness or less. This act also authorizes the Secretaries of the Departments of Agriculture and Interior to issue regulations preventing the substitution of timber restricted from export for exported non-Federal timber. On September 26, 1969, a joint Forest Service-Bureau of Land Management public advisory hearing on implementation of the substitution provision was held in Portland, Oregon. No regulations on substitu- tion have, as yet, been issued. Forest Service sales receiving no bids are treated differently in this regu- lation as compared with that of April 22. The April 22 restriction allowed such sales to be reoffered without the primary manufacturing requirement. Under the new restriction, if a sale receives no bids, advisory hearings must be held to determine whether the timber in the sale is surplus to domestic needs before the export restriction cam be removed. The Bureau of Land Management action plan to implement the log export restriction is silent with respect to the handling of no-bid sales. As the Morse Amendment also covers logs designed for export from sustained- yield units, those logs fall under the regulations of the Foreign Assistance Act. Thus all logs exported to foreign lands from a sustained-yield unit are included in the 350 million board feet quota. National Forest log export allocation is 187 million board feet in Washington, 88 . million in Oregon, and 15 million in California The Forest Service has allocated 275 million board feet to Region 6 (Oregon and Washington), primarily to National Forest lands west of the Cascade Mountains, and 15 million board feet to Region 5 (California). The distribution of the exempt volume by National Forest is as follows: 1969 exportable State and National Forest log volume (Million bd. ft., Scribner long log scale) Washington: Mount Baker 35 Olympic 33 Snoqualmie 57 Wenatchee— g Gifford Pinchot ees Total 187 Oregon: Mount Hood 49 Willamette 19 Siuslaw 9 Deschutes2/ 4 Umpqua 3 Siskiyou 8 Rogue River pecs _88 Total California: Eldorado Klamath Shasta-Trinity Six Rivers Stanislaus Tahoe Les) WW Wo fF WOO CO Oo Total a a) oO Total No \o So oO ik uy Exempt volume applicable only to the Cle Elun, Ellensburg, and Lake Wenatchee Ranger Districts. 2 Zi Exempt volume applicable only to the Bend, Sisters, and Crescent Ranger Districts. All logs sold in Regions 1, 2, 3, 4, and 10 which are also covered by the restric- tion must receive primary manufacture within the United States. The criteria used in allocating the 290 million board feet to the National Forests are the same as those used under the Secretaries’ determination. Bureau of Land Management allocates its exportable timber volume to western Oregon districts The Bureau of Land Management has allocated its 60 million board feet to its five BLM districts in western Oregon on the basis of each district's allowable cut. The allocation is approximately the same as that of the Secretaries' deter- mination (see tabulation on page 3). All other BLM timber west of the 100th meridian is subject to the restrictions relating to the export of unprocessed timber from the United States. The allocation of exempt BLM volume to specific sales differs slightly between the Secretaries' determination and the Morse Amend- ment. Under the amendment, exempt volume is allocated, on a percentage basis, only to sales in excess of 2 million board feet. The Oregon State Director for the Bureau may, however, approve volume exemptions in sales that are less than 2 million board feet in size or adjust exemption proportions in larger sales when species, grade, composition, or market conditions make such a course desirable. Some cedar declared surplus and exportable in Washington, Oregon, California, and Alaska Under provisions of the amendment, the Secretaries of Agriculture and Interior can hold hearings to establish whether specific quantities and species of unproc- essed timber may be surplus to the needs of domestic users and processors and thus freely exported. Public advisory hearings were held in Portland, Oregon, on December 6, 1968, to determine whether two species, Alaska yellow-cedar and Port-Orford-cedar, were to be considered surplus. As a result of these hearings, the two Secretaries removed primary manufacturing requirements from Alaska yellow-cedar in Washington, Oregon, and California National Forests and Bureau of Land Management lands. Port-Orford-cedar is also exempted from primary processing, with one restriction. Because arrow shaft manufacturers pointed out their need for small amounts of dead and down Port-Orford-cedar trees, sales containing Port-Orford-cedar and designated as "arrow wood sales" are not considered surplus. The amount of the two cedar species exported from Washington, Oregon, and California Federal lands will be in addition to the 350 million board feet per- mitted for export under the Morse Amendment. In Alaska, public advisory hearings were held in Juneau on December 3, 1968, and on May 5, 1969, to determine whether the two species in question, Alaska yellow-cedar and western redcedar, could be considered surplus to domestic needs. At the December hearing, one mill then being constructed reported that it would require approximately 20 million board feet of cedar a year, and on this basis these species were considered necessary for domestic needs and thus not exportable. However, the mill later decided it would use little or no cedar in its operations. At a second hearing on May 5, 1969, these two species were declared surplus to domestic needs. Any volume of these two species exported to foreign countries from Alaska will be in addition to the 350 million board feet permitted under the Foreign Assistance Act. a STATE OF OREGON RESTRICTION Oregon requires primary processing within United States The State of Oregon has limited the foreign export of State-, county-, or city-owned logs in round form since 1961. The regulation, which excludes Port- Orford-cedar, reqtires primary processing within the United States. The State law defines "primary processed" as "that stage of manufacture next beyond the log form of said timber. "4/ However, the State Forestry Department will issue a permit allowing log exports if no economic market for the logs can be found in the United States. The State requires anyone seeking a permit to have the timber in log form. This prevents bidding on a State sale with the idea of exporting the timber, because the bidder does not know if he can obtain an export permit before the logs are cut. Since State lands in Oregon contribute only a minor part of the total log supply, the restriction has had little apparent effect on the log export volume. WASHINGTON STATE'S INITIATIVE 32 Export restriction defeated in Washington; presently no limitation on State logs In the State of Washington, there are no export restrictions on timber owned or managed by the State. Voters defeated Initiative Measure No. 32, titled the "Washington State Log Conservation and Full Employment Act," on November 5, 1968.2/ This act would have required primary manufacturing of all timber from State-owned lands to take place in the State of Washington, or within 15 miles of the State's borders. The measure defined primary processing as either making all longitudinal surfaces of a log flat by sawing or converting a substantial portion of a log into veneer or chips. Although Initiative 32 was defeated, its proponents announced that further attempts would be made either through State legislative action or by future ini- tiatives to limit the export of Washington State logs. However, no new proposal to restrict export of logs from State-owned lands was introduced into the 1969 legislature. SMALL BUSINESS ADMINISTRATION'S SET-ASIDE PROGRAM Small Business Act limits exports to 30 percent of set-aside sale volume The set-aside program under the Small Business Act has had the effect of limiting log exports from some sales, although this was not an express purpose of 4 — State of Oregon. Oregon forest laws and administrative rules. Pp. 17-18. 1967. 5/ — State of Washington. Initiative measure No. 32 to the Legislature, 40th regular session. Filed Feb. 3, 1967. that act .6/ Originally the program was designed to aid small businesses in ob- taining a share of available public timber by making local timber available to the smaller, nonintegrated sawmills. The size of the "small business" as defined in the program allows firms with 500 or less employees to bid on these special sales. These small business set-aside sales are set up at the request of small businesses in an area. To be eligible, a firm must guarantee that 70 percent of the Federal logs purchased under the set-aside program will be manufactured into lumber with either its own facilities or those of other domestic concerns that also qualify as small businesses. In Alaska, the requirement is 50 percent. The 20-percent difference is to allow for resale of the large portion of pulp logs found on most Alaska timber sales. Timber sold under the set-aside program is subject to the export limitations of the Morse Amendment. During 1968 there were 87 set-aside sales made on the National Forests in Washington and Oregon, representing a total volume of 274.6 million board feet or an average of 3.2 million board feet per sale. PRIMARY PROCESSING REQUIREMENTS OF SUSTAINED-YIELD UNITS The sustained-yield units were set up under the Sustained-Yield Forest Act of 1944. When established, they were primarily concerned with domestic competi- tion for timber, but they also restrict log exports. There are six active sustained-yield units in the Nation: ome cooperative unit, the Shelton unit located in northwest Washington, and five Federal units located in the West. Shelton Cooperative Sustained-Yield Unit requires local processing of a volume equal to 80 percent of unit timber The Shelton Cooperative Sustained-Yield Unit, set up in 1946 through an agree- ment between the Forest Service and Simpson Timber Company, covers approximately 270,000 acres in Mason and Grays Harbor Counties of western Washington. This agreement requires the cooperator to maintain within a 10-mile radius of the Shelton-McCleary area sufficient primary manufacturing plant capacity to use as a minimum 80 percent of the forest products removed from the cooperating lands. Primary processing is not specifically spelled out in the agreement between the Forest Service and the Simpson Timber Company. However, the following state- ment from the agreement specifies the conditions to be met: "as to convert the raw material of the forest to salable manufactured products economically and with- in a minimum of waste . . . into products for which they are best suited." In 1968, 162.1 million board feet of logs were sold from the Shelton Sustained- Yield Unit by the Forest Service. Gf U.S. Congress. Small business act (72 Stat. 384), pt. 121, as amended. 1953. 1/ UY c USDA Forest Service. Shelton Cooperative Sustained-Yield Unit. P. 15, Grays Harbor Federal Sustained-Yield Unit requires 100-percent local processing The Grays Harbor Federal Sustained-Yield Unit was established in 1949 in western Washington on the Olympic National Forest in Grays Harbor County.2 Primary manufacturing of all logs from this unit must take place in an area which covers most of Grays Harbor County. For the purpose of this unit, primary manu- facturing is defined as the production of rough green lumber containing the ap- proximate percentages of the various dimensions of lumber usually produced by mills of comparable size in western Washington, rough green veneer, chips, and shingles and shakes of any marketable grade. Special products, such as poles and piling, are excluded from the primary manufacturing stipulations. Any purchaser of National Forest timber from the unit who is unable to find an economic market within the Grays Harbor area may, upon establishing this fact to the satisfaction of the Regional Forester, receive special authorization to market such timber elsewhere. In 1968, the Forest Service sold 59.9 million board feet of logs from the unit. Lakeview Federal Sustained-Yield Unit prohibits export of logs The Lakeview Federal Sustained-Yield Unit was established in 1950 and is located in the Lakeview Working Circle of the Fremont National Forest in Oregon. The provisions require all timber sold for commercial use from National Forest land in the unit to be manufactured within 6 miles of Lakeview or 3 miles of Paisley. Special forest products such as, poles, piling, and fuelwood are excluded from the manufacturing stipulations. Primary manufacturing is defined as: The cutting of logs in sawmills into rough green lumber containing the approximate percentages of the various dimensions of lumber usually pro- duced by mills of comparable size in the sawmill industry of the ponder- osa pine area of eastern Oregon; and in addition the expenditure of at least an average of 5 man-hours of work per thousand board feet of logs used, in remanufacturing, refinement or other processing beyond the rough green lumber stage. In other log-using plants, manufacture will be considered to have been accomplished when an equivalent degree of employment has been expended on the material used .9/ The primary manufacturing definition used by the unit is currently undergoing some investigation. The requirement calling for 5 man-hours of work per thousand USDA Forest Service. Amended policy statement for the Grays Harbor Federal Sustained-Yield Unit. 1968. oy USDA Forest Service. Amended policy statement for the Lakeview Federal Sustained-Yield Unit. P. 2. 1957. board feet of logs used was established in 1950, and because of technological advancements the primary manufacturing requirements for the unit will probably be rewritten soon. The three other Federal sustained-yield units also have primary manufacturing requirements. The Big Valley Federal Sustained-Yield Unit on the Modoc National Forest in northeast California requires 80 percent local processing for its timber; the Flagstaff Federal Sustained-Yield Unit in Arizona requires 85 percent; and the Vallicitos Federal Sustained-Yield Unit on the Carson National Forest in New Mexico requires 100 percent of its timber to be processed within 1 mile of Vallicitos, N. Mex. ACT OF APRIL 12, 1926, ON FEDERAL TIMBER IN ALASKA In Alaska there are primary manufacturing requirements on National Forest, Bureau of Land Management, and State lands. Private holdings in Alaska account for only 5 percent of total commercial forest land and about 1 percent of all commercial sawtimber; therefore, most of the timber in the State falls under pri- Mary manufacturing restrictions. Alaska Federal lands fall under two export restrictions, the Act of April 12, 1926, and the Morse Amendment to the Foreign Assistance Act of 1968. The Act of 1926 authorizes the secretaries of the departments administering Federal lands in Alaska to issue rules and regulations regarding the export of timber .10/ Alaska Federal lands prohibited from exporting logs to other 49 States as well as to foreign countries Under the authorization of the 1926 act, the Department of Agriculture made the following ruling on exports from Alaska National Forests: Timber cut from the National Forests in Alaska may not be exported from the Territory of Alaska in the form of logs, cordwood, bolts, or other similar products necessitating primary manufacture elsewhere, without prior consent of the Regional Forester . In determining whether consent will be given to the export of such products, consideration will be given, among other things, to whether such export will (1) permit a more complete utilization of material on areas being logged primarily for products for local manufacture, (2) prevent loss or serious deterioration of logs unsaleable locally because of an unforeseen loss of market, (3) permit the salvage of timber damaged by wind, insects, or fire, (4) bring into use a minor species of little importance to local industrial development, (5) provide material required to meet national emergencies or to meet urgent and unusual needs of the Nation. 11/ ay) U.S. Congress. Act of April 12, 1926, exportation of timber (44 Stat. EDS MS WoeSelGoq GlLO)s IY26, 11/ title 36. Office of Federal Register. Code of Federal regulations, sec. 221.25, 10 This ruling not only limits foreign exports of National Forest timber as does the Morse Amendment, but also restricts shipments to the other 49 States. Primary manufacture of timber from Alaska National Forests under this law is defined as the production of cants, slabs, or planks 8 inches or less in thick- ness through the sawn dimension.12/ Poles and piling and other products needing no further processing, green veneer, and pulpable material processed to a point where the wood fibers have been separated may also be exported. Chips cannot be exported unless they are produced from logging or mill waste and no economic mar- ket for the material can be found in Alaska. A permit to export timber from Alaska covers individual shipments only and is not renewable. The Bureau of Land Management has basically the same restrictions on its Alaska lands as does the Forest Service. Applications for the export of timber within the United States are handled individually and are forwarded to the Secre- tary of the Interior for a determination. STATE OF ALASKA'S LOG EXPORT RESTRICTION All log export is prohibited on State-controlled lands in Alaska Log export limitations by the State of Alaska on lands under its management vary somewhat from Federal limitations. The State's policy is to manage its forests on a sustained-yield basis, to protect existing industry, to provide for the establishment of new industries, and to derive revenue from all timber re- sources. Primary manufacturing restrictions on Alaska State lands 13/ require cants 12 inches and under to be slabbed on two sides and cants over 12 inches to be slabbed on four sides. Chips derived from logging and mill waste which do not have a local market may also be exported. With an application approved by the Commissioner of Natural Resources, limited quantities of all species except spruce and hemlock may be exported in the form of round logs for experimental purposes only. Spruce and hemlock logs may not be exported under any condition from State lands in Alaska. BRITISH COLUMBIA LOG EXPORT RESTRICTIONS Provincial restrictions require primary processing within British Columbia The Province of British Columbia has, since the passage of the "Timber Manu- facture Act," effective March 12, 1906, prevented the export of logs from lands 2. 22) USDA Forest Service. Export and primary manufacture policy, National Forests of Alaska. 1961. 13} as State of Alaska. Policy statement on primary manufacture, sec. 406.104, "Timber sale regulations." 1968. 11 owned by the Crown to areas outside the Province.14/ Restrictions were set up in British Columbia, as in Alaska, to encourage the development of a forest indus- try in the Province, and these restrictions have remained basically the same since 1906. Primary manufacture is required of all timber from provincial lands, in- cluding those areas in which the timber cutting rights have been alienated under various types of licenses and leases. Lands granted after March 12, 1906, also are included. In British Columbia, over 93 percent of the 118 million commercial forest acres are covered by the provincial log export restriction. The only timber for which there is no export control by the Province is that from lands alienated by the Province prior to 1906 and from lands alienated by the Federal Government in what was the Railway Belt, which was administered by the Dominion until 1930. The Lieutenant-Governor in Council, with the advice of the Export Advisory Committee when appropriate, may authorize the export of piling, poles, and other unmanufactured timber from the Province, as well as allow the export of logs, if the logs have been offered to three potential timber buyers and no sale made. How- ever, the timber must already have been cut and in log form before being declared surplus; this prevents the cutting of timber with the objective of exporting it. The export Advisory Committee representing loggers, manufacturers, and exporters is so constructed as to insure there will be no export of raw wood material which could beneficially have received further processing within the Province. The degree of primary processing required in British Columbia is really just an application of custom. The requirements for exporting lumber are limiting only in the amount of wane permitted. The wane requirements, except for one exception, are the same as those found in the Export R List Grading and Dressing Rulesl2. for No. 3 common lumber. The exception is that wane is permitted to any degree on dimension lumber less than 3 inches in thickness. Lumber not meeting wane re- quirements cannot be exported. Most of the lumber shipments from British Columbia are 4 by 4, 8 by 8, or 12 by 12 squares. Chips can be exported only after a permit valid for a stated period, is obtained in the same manner as a log export permit. Generally, most log exports are from Vancouver Island and the lower mainland coastal area, with little or no export from the interior or northern coast. In 1966 and 1967, over 65 percent of the logs exported from British Columbia were from lands requiring primary manufacture, for which a waiver from the Lieutenant-Governor in Council and the British Columbia Log Export Advisory Com- mittee had been obtained. In 1968, 47 percent of the exports were under permit. About 2 percent of the total log harvest in 1967 and 1968 was exported. Dominion restriction supports Provincial primary processing requirement In addition to provincial regulations, the Canadian Dominion Government also prohibits the exportation of logs. There is a certain judicial conflict here, but the two governing bodies have administratively agreed to cooperate. When the aes) Province of British Columbia. Forest act. Pp. 1471-1544. 1968. £3) Published by the Pacific Lumber Inspection Bureau Inc., Seattle, Wash- ington, 1951. 12 British Columbia Log Export Advisory Committee issues an export permit, the Cana- dian Government's Department of Trade and Commerce also issues one. If the log export restriction were repealed by the British Columbia Government, the Dominion Government restriction would still prevent log exportation, and, conversely, if the Dominion restriction were removed the Provincial restriction would still stand. The Dominion also has the authority to prohibit the export of logs from all lands not administered by the British Columbia Provincial Government including private lands. ercised. Restriction a a a ie Secretaries' determina- tions However, there have been very few cases where such authority has been ex- The primary processing requirements and other details regarding log ex- ports are the same under both governments. Summary Comparison of Various Log Export Restrictions Dates effective April 22, 1968, to Deets 31, 19684 Morse Amendment to Foreign Assistance Act of 1968 State of Oregon lands Washington Initiative 32 January 1, 1969, to December 31, 1971 Area covered Western Washington, western Oregon General limitations Exemptions Definition of primary processing Foreign export of Togs from Forest Service lands of western Washington and western Oregon in excess of 290 million bd. ft. annually and BLM timber from western Oregon in excess of 60 million bd. ft. outside Washington, Oregon, and California All areas west of 100th meridian Foreign export of logs from Federal lands west of 100th meridian in excess of 350 million bd. ft. annually Port-Orford-cedar Cants and squares 8 inches or less in thickness, poles, veneer, pulp, or chips NN Alaska yellow-cedar and Port-Orford-cedar in Washington, Oregon, and California; Alaska yellow- cedar and western redcedar in Alaska Cants and squares 8 inches or less in thickness, poles, lumber, veneer, pulp, or chips (except Alaska chips) Next stage of manufacture beyond log form Logs with all longitudinal surfaces sawn flat, veneer, Oregon Foreign export of State None jogs ee ee Washington Export of State logs to None either foreign or domestic markets and chips $$ ——____+—_____— Smal] Business Adminis- tration's Set-Aside Sales July 18, 1958 Sustained-Yield Units: Shelton Cooperative Grays Harbor Federal Lakeview Federal ae Act of April 12, 1926, on Alaska. Federal Log Exports: Forest Service lands Bureau of Land Manage- ment lands Alaska State lands 1960 Alaska British Columbia (Forest Act) January 1, 1947, to December 31, 2046 eS eae November 2, 1949 October 10, 1950 1926 1906 Decided or agreed to on a sale-by-sale basis Processing of logs by other than U.S. small business firms Area within a 10- mile radius of the towns of Shelton and McCleary An area lying within Grays Harbor County 6-mile radius of Lakeview and 3-mile radius of Paisley Alaska Alaska British Columbia Must process in area covered, a volume equal to 80 percent of commercial timber harvested from unit Export from area of 100 percent of commercial tim- ber harvested Export from area of 100 percent of commercial tim- ber harvested 30 percent of the volume each sale (50 percent in Alaska) None Logs manufactured into lumber and timbers Logs converted into salable manufactured products for which they are best suited =I On a sale basis providing no economic market can be found in the area None Foreign or domestic export of National Forest logs Foreign or domestic export of BLM logs Foreign or domestic export of State logs On a case-by-case determination None Rough green lumber and veneer, chips, shingles, and shakes Logs converted into lumber with an average of 5 addi- tional man-hours of work per thousand bd. ft. of logs used in remanufacturing or an equivalent degree of employment Cants and squares 8 inches or less in thickness, poles, veneer, pulp, or chips pro- duced from mill wastes Cants 12 inches or less, slabbed on two sides, cants over 12 inches slabbed on four sides, chips from wood waste Export of logs from the Province By permit Limited only in quantity of wane allowed (varies by size) il , ; VY These determinations were superseded on January 1, 1969, by the Morse Amendment; originally the determinations were to be effective until July 1, 1969. 2/ —" Never enacted. 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JO SUOTIDTAISeA YA0dxe BOT *GO6T *M uyor ‘ut zsny “eTqunToOD Ystarag pue so7eI7S UIeISeM 9Uu FO SjZONporad AsquT} AO0;F sjuswei—~nbes Butanjzoejnuew ArewrTad pue suotjzoOTIASeA 3i0dx9 30[T ey} Jo suotstaAoid utew 3uj, SsjzUeSeIg *uo8eI19 ‘puetT 10g SuOTIeIS JUeUT —jodxq e8uey 9 JSe10q JSeMYyRAON OTFTOeg dd ¢][ ‘T6-MNd ‘deg “sey *Artes Asert0g vasn ‘“erqun~o) ystafag pue se7e3$ uUI97SeM 94} JO SuOTIOTIAAWSeA YA0dxKe BOT *696T °M uyor Sut zsny pe “ ae ee ol , sete" —— oT 5 ee oo] Se ee ee rg ome h i A 4 Headquarters for the PACIFIC NORTHWEST FOREST AND RANGE EXPERIMENT STATION is in Portland, Oregon. The Station’s mission is to provide the scientific knowledge, technology, and alternatives for management, use, and protection of forest, range, and related environments for present and future generations. The area of research encom- passes Alaska, Washington, and Oregon, with some projects including California, Hawaii, the Western States, or the Nation. Project headquarters are at: College, Alaska Portland, Oregon Juneau, Alaska Roseburg, Oregon Bend, Oregon Olympia, Washington Corvallis, Oregon Seattle, Washington La Grande, Oregon Wenatchee, Washington GPO 996-708 The FOREST SERVICE € of the U. , Department of Agriculture is dedicated to the principle. of multiple use management of the Nation’s forest resources for’ sustain 1 yields of wood, water, forage, wildlife, and- recreation. “Through forestry research, cooperation with the States and private forest owners, and management of the National. Forests and National Grasslands, it strives — as directed by, Conaress.- — to provide increasingly greater service to a growing Nation.