Timber Bulletin May/Jun - Minnesota Forest Industries

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Kevin Kallinen processes harvested birch with a Serco 170-A loader with a 60-inch Siiro slasher.“That would depend on thewood,” he says. “If you hadthe right wood, you could havefour guys out here on all fourmachines, and that would behighly productive. But after beingtotally alone for years, the biggestthing I see when you put moremen on the job is waste. Becausewhen you’re out here alone, youhop on the skidder, you get thosethree or four skids or whatever,then you get on the slasher andyou cut them up. There’s never amoment where that machine’s beingrun and not being productive. Andwhen you have people runningmachines, the guy running theskidder pulling to the slasher, if theguy on the skidder isn’t getting thewood to the slasher quick enough,the guy in the slasher sits andwaits five minutes or two minutes,whatever, it’s still two minutes, andevery minute counts.”Kallinen has had help from timeto time as well, including a cousinwho helped out for a while. Overthe past few years, several ofKevin’s five sons have lent a hand.“Last winter there were three ofus,” Kallinen says. “I’d pretty muchrun the slasher and the faller, andmy one son would run the limberand the other one would run theskidder, pretty much.”On top of that, Kevin’s wifeLaurie is helping out with the booksand office tasks, and his cousin,Brion Kallinen, drives truck, makingdeliveries.“Brion’s been here a year and ahalf,” Kevin says. “He cut woodwith me a little bit some years back.When we were kids, we’d play inthe sand box, and even back then,he was driving truck and I wasrunning the equipment. Isn’t thatsomething?”Brion’s off on a delivery,taking hardwoods to NewPage’shardwood yard. There, he’ll pickup pine logs to deliver toHedstrom’s Grand Marais mill,reducing the time the truck isempty. Louisiana Pacific in TwoHarbors will also get some wood,as will Sappi in Cloquet. And someof the birch pulp will end up in theNorth Shore Forest Products yardnorth of Two Harbors. They’realso sorting out bolts to be hauledto White River Hardwoods downby Sanborn, Wis., 10 miles south ofAshland.The current harvest site is a bigone: 2,500 cords of aspen, birch,spruce, and balsam on Lake Countyland, spread throughout five cuttingblocks. Two have already beenharvested.“We moved in here the weekbefore the road bans went on, thelast week in March,” Kallinen says.Knowing the ground wouldsoften up soon, he harvested asmany trees as he could and skiddedthem close to the road. Thanks tohis knowledge of the road here,he knew the road would be goodthrough break-up.“Twenty years ago I workedreally hard at making road to getdown into this area from the otherdirection,” he says. “This road wasmade to build Forest Highway 11.There’s a gravel pit up here. Wecame in off the Beaver River Road20-some years ago, built a bridgeacross the Little Thirtynine Creekand got into some area that hadn’tbeen logged yet. So I’ve beendriving by these trees for 20 years.It’s nice wood, but we worked hardto get here. We’ve been processingthe trees right at the road.”It’s been almost two months sinceKallinen has harvested trees here.The buncher is sitting idle while he10Timber Bulletin May/June 2013

continues to skid andslash what is already onthe ground.“We had piles of woodwithin a tree lengthor two of the road, soit’s pretty easy to laylimbs and tops downand drive on them toget everything slashed,loaded, and delivered,”he says.So it’s not the typicallogging company, andin this instance, not thetypical logging process.Kallinen had to adapt todifferent conditions inorder to keep workingand keep the woodmoving.“I would have to sayadaptability is one of thebiggest things that helpsme out here,” he says. “Ithink loggers in generalare adaptable peoplebecause all kinds of curveballs are being thrown atthem, today way moreKallinen Logging’s Timbco T425-C buncher is parked while Kallinen processes what hasalready been harvested.LUA is proud to continue our 108-year tradition of service bypartnering with Northern Capital Insurance Group to meet theinsurance needs of the MTPA members.Northern Capital has been serving the ForestProducts Industry for over 20 years specializing inworkers compensation, property, general liabilityand truck/auto insurance coverages.For more information contact Northern Capital at1-800-676-8818 or info@northerncapital-mn.comATTN: Judy King.Timber Bulletin May/June 2013 11

Harvested spruce bolts wait on the landing to be hauled to White River Hardwoods in Sanborn, Wis.than ever, about environmental issues and this thingand that thing and we just keep dealing with it.“I’ve found that if I don’t get fifty solid hours in thewoods each week, things start piling up and the moneystarts depleting. Really, you have to get sixty hours in.If you back off to 50 you can hold your own. If you putin sixty you can move ahead pretty fair, if things aren’tbreaking, of course. If we’re cutting wood, I’m tryingto put in sixty, even seventy hours each week.”Kallinen also says his religious faith is a big reasonwhy he’s able to adapt and keep working, even throughdifficult times.“I attribute my ability to keep going to my faith,”Kallinen says.Work ethic, adaptability, and faith. These traits allpay off, not only in profitability, but also in helping toclear the obstacles his company faces each day. And it’sthose obstacles that keep the job interesting.“To me it’s a challenge,” Kallinen says. “Setting upa landing so the truck can come and go without anyproblem. Setting up the job so it’s the most efficientas far as getting the wood. I’m not saying I have it allfigured out. And maybe that’s another part. As soonas you think you have it good here, it changes and youhave to do it different over there.“Maybe that’s another part. It’s changing all the time.I get bored pretty easy,” he chuckles. “You have four orfive machines, you get tired of one and you can hop inanother one.” NORTHERN ENGINE AND SUPPLY, INC. DOZERS GRADERS LOADERS SKIDDERS BACKHOESLogging AttachmentsLogging Fork BalerS – Log GrapplesStacking Rakes – Brush RakesPEWAG SKIDDER CHAINSDetroit Diesel – EngineS & PartsRockford-Rockwell-Spicer Distributor PARTS & SUPPLIESDuluth (218) 624-1443 Fargo (701) 232-3284Virginia (218) 741-2980 Proctor (218) 628-2337Wyoming (307) 686-371312Timber Bulletin May/June 2013

Need your logo orDOT numbers for your truck?Give us a call218-722-2569 • bolson@duluthsign.com116 W. Superior St., Duluth, MN 55802 • www.duluthsign.comWHEN DoINGWHAT’S RIGHT IS JUSTgoodbusiness.We have an attorney for you.° Business/Corporate Law °›› Michael Donovan ›› John Gasele ›› Robert Kanuit›› Dexter Larsen ›› Daniel Maddyfryberger.comTimber Bulletin May/June 2013 13

Boe, Mill PresentationsHighlight TPA Annual MeetingTPA Executive Vice President Wayne Brandt gives his Annual Report on association activities to the TPA AnnualMembership Meeting, including events in the industry over the past year and an outline of the 2013 legislative session.TPA ‘s Annual Meeting istraditionally a place where memberscan have access to information andpresentations about Minnesota’sforest products industry they can’tget anywhere else, and the 2013Annual Meeting didn’t disappoint.This year’s session at Ruttger’sSugar Lake Lodge featured apresentation from TPA ExecutiveVice President Wayne Brandt onthe association’s accomplishmentsover the past 12 months, as wellas a panel discussion featuringrepresentatives from severalconsuming mills on markets and thestate of the industry. In addition,DNR Division of Forestry DirectorForrest Boe gave a presentation onhis first year on the job, Sue Burksof the DNR shared the latest on aproposal to combat the gypsy mothin Minnesota’s state forests, andRebecca Barnard of the DNR thedepartment’s view of the SFI andFSC certification programs.Annual Report ofAssociation ActivitiesIt was a critical year forMinnesota’s Logging Community,which had to adjust to severalbig developments, not all of thempositive: closures at the Verso andGeorgia Pacific mills, layoffs atBoise in International Falls, andblowdown events in the Bemidjiand Deer River areas. Thesedevelopments and others resulted inmeetings with Minnesota Gov. MarkDayton and his staff, and a seriesof articles in the Minneapolis StarTribune on the state of the industry.The news wasn’t all bad. Sappicompleted a mill conversion thatwill enable the company to makespecialized cellulose in addition topaper and ensure the mill’s viabilityfor years to come.The elections of 2012 flippedcontrol of both houses of theMinnesota Legislature to theDFL. Brandt and the TPA staffworked with the legislature andthe governor on several pieces oflegislation that will help the state’stimber industry. Among them:• Increased funding for the DNR’sDivision of Forestry• Revisions to state law affectingtimber sales and other DNRoperations• Relief for those holding statepermits that contain balsam firDetails on these pieces oflegislation are contained in a fullreport on the 2013 legislative sessionelsewhere in this issue of the TimberBulletin.In addition, Brandt outlined asampling of the other TPA activitiesof the past year, including:• Work with the DNR on thetopics of Extended RotationForestry (ERF) and RotationAges• Completion of the ForestManagement GuidelineRevision Process• Maintaining the $1 million capon mandated insurance liabilityin St. Louis County• Approval of County ForestManagement Plan in HubbardCountyFeatured SpeakersFour representatives fromMinnesota mills – Potlatch MillManager Pete Aube, NorbordWood Procurement ManagerJerry Richards, Boise WoodlandsManager Dan Toivonen, andSappi Manager of Wood FiberProcurement Gary Erickson –discussed their views on the stateof the industry and the health of14Timber Bulletin May/June 2013

their mills, as well as expectationsof market factors in their individualsectors in a panel discussiontitled “Outlooks, Trends, andConsiderations in Wood Markets.”In his presentation, Aube says thecompany has survived the worstdepression in the history of thelumber industry, which was cut inhalf over the past several years. Hesaid housing and related marketsare improving, with the US on theway to building 1.4 million homesper year. Aube said there will bevolatility, but that Minnesota iswell-positioned to survive it.“The winners in the recoverywill be the ones with trees,” Aubesaid, referring to geographic areassuch as British Columbia, Quebec,the Southeast U.S., etc. “We havethe trees here, which is a positive.Trees in Minnesota can create ahigh-quality stud, and we’re excitedabout that.”Aube also announced the millis adding a fourth kiln, which willallow the company to continue tobuy balsam saw bolts. Aube saidthe company has already receivedthe appropriate permits from thestate of Minnesota, and he thankedthe mill’s parent company forproviding funding.Lt. Col. Eric Chandler of the Duluth-based 148th Fighter Wing speaks at the TPAAnnual Banquet about his life as an F-16 fighter pilot through tours of duty inIraq and Afghanistan, and how lessons learned on executing a plan can apply inthe business world.“This is good news for Potlatchand for our loggers,” Aube said.Erickson discussed Sappi’sconversion to specialized cellulose,which was completed in May.Sappi is already the world’s largestsupplier of specialized cellulose,a high growth and high marginbusiness, which speaks well for thefuture of the Cloquet mill. Sappiexpects to use roughly the sametotal volume of wood, with aspenand maple being the major species.Richards also talkedoptimistically, citing improvementsin U.S. housing markets. He saidNorbord corporate is also showingconfidence in Minnesota’s timberTimber Bulletin May/June 2013 15

industry by makingimprovements to theSolway mill, including asecond scale. Richardssaid he expects the mill toincrease production by tenpercent in the coming year.Toivonen talked aboutchanges to the Boise mill,which included the idlingof the I1 and I3 papermachines. Although thisresulted in the loss of265 jobs in InternationalFalls, the move allowsthe company to focus onthe more profitable officeand printing papers,eliminates the need topurchase expensive marketpulp, and provides a secureand competitive mill for thefuture of the 580 remainingemployees.Toivonen said the millcurtailments will have little impacton wood consumption, althoughthey may see a slight increase insoftwood usage.For the second consecutive year,DNR Division of Forestry DirectorForrest Boe addressed the AnnualMeeting. Boe said he’s now beenon the job for just over a year andcited the difficulties in the industryover the past year, and thankedTPA members for their efforts inovercoming these obstacles.L-R: Boise’s Dan Toivonen, Sappi’s Gary Erickson, Jerry Richards of Norbord, andPete Aube of Potlatch participate in a panel discussion titled “Outlooks, Trends, andConsiderations in Wood Markets” at the TPA Annual Meeting.“We are survivors,” Boe said ofthe members of Minnesota’s forestrycommunity. “We get through thisstuff, and we work together to makethat happen.”Boe said the state harvest in fiscalyear 2012 was 2.4 million cordsacross all ownerships, down froma high of 4.1 million cords withinthe past decade. Boe said it’s notbecause Minnesota doesn’t havethe wood, but due to the economicrecession. But he echoed whatPotlatch’s Pete Aube had saidmoments earlier, that those with thetrees will succeed.“I like that,” Boe said.Boe said the division of forestryhas had to overcome significantgeneral fund reductions over thelast few years, but thanked WayneBrandt, TPA’s staff, and membersfor their help in securing additionalgeneral fund dollars during therecently completed legislativesession. He said the additionaldollars will help the DNR do its job.“We couldn’t have survived thissession without TPA’s help,” Boesaid. “Our general fund increase isjust a tad over $5 million per year. Idon’t think there’s been a time whenTPA Members had the benefit of hearing several valuable presentations during this year’s TPA Annual MembershipMeeting.16Timber Bulletin May/June 2013

the division of forestryhas garnered that muchgeneral fund support. Itallows us to continue tooffer our traditional levelsof harvested wood onstate lands. That’s hugefor you and it’s huge forus too, because we live offof those revenues.”DNR Invasive SpeciesProgram CoordinatorSue Burks updated themembership on effortsto fight the gypsy mothin Minnesota, andspecifically a proposalfrom the MinnesotaDepartment of Agricultureto quarantine Lakeand Cook counties inthe spring of 2014 “torestrict the movement ofpotentially infested itemsand thereby contain theinfestation.Burks discussed how thequarantine will work, if it isimplemented as proposed. Aquarantine would regulatemovement of wood out of aquarantine area, so anyoneTPA members David Haley (L) and Mike Warren took the opportunity to ask questions ofDNR Division of Forestry Director Forrest Boe (R) following his presentation at the TPAAnnual Membership Meeting.harvesting in a quarantine areaand then moving it outside of thequarantined county would needa compliance agreement with theDepartment of Ag, as would anytrucker transporting from the area,or any mill receiving that wood.Such an agreement would workout a system of best managementpractices for transporting the wood.Implementation of the proposalhas not been finalized by the state.TPA is participating in discussionswith the Department of Ag and theDNR regarding the proposal and itsTimber Bulletin May/June 2013 17

potential implementation.In the morning’s finalpresentation, DNR ForestCertification CoordinatorRebecca Barnard discussedthe latest developmentsin Forest Certification thatTPA members should beaware of. She outlined themarket-driven forces thathave resulted in the need forcertified wood in our state,and how the implementationof the Forest ManagementGuidelines serve to facilitatewood certification.Barnard also briefed TPAmembers on FSC’s proposalto implement 343 new draft“International GenericIndicators” (IGIs), and theconcerns the DNR has overthe issue. Barnard said theDNR agrees with only 62 of theproposed IGIs – only 18% – and thatthey won’t work here in Minnesota.Among the problems withthe proposed IGIs, according toBarnard:• They reference internationaltreaties that haven’t beenratified in the U.S.• Many won’t lead to benefits onthe ground.• They broaden the definitionsof “local communities” andL-R: Jerry Richards of Norbord and Joe and Larry Dukek of Dukek Logging have thechance to spend time together during the social hour before the TPA Annual Banquet.“forest workers,” including oneprovision that would requirethe DNR to see to it that “forestworkers” have a balanced dietThe balanced diet requirementis “clearly inappropriate,” Barnardsaid. “We’re not accepting thisunder any terms.”Barnard said DNR CommissionerTom Landwehr has written a letterto FSC International that states,“Unless FSC revamps its wholeapproach to the IGIs, MNDNR willneed to reevaluate the viability ofcontinued FSC Forest Management(FM) Certification on the 4.96million acres of currently certifiedstate lands.”FSC is still receiving commentson the proposed IGIs. TPA willbe submitting comments on theproposals.TPA Thanks Our Sponsors!Annual Meeting Sponsors:AgStar Financial ServicesBell Timber, Inc.Boise PaperBorder State BankFryberger, Buchanan, Smith & Frederick, P.A.Hedstrom Lumber CompanyMinnesota Forest IndustriesMN SFI ® Implementation CommitteeNorbord MinnesotaNortraxPomp’s Tire / Titan TirePonsse North AmericaPotlatch CorporationPrairie TrailerRDO - Vermeer LLCSappi Fine PaperUPM – Blandin PaperZiegler CATDoor Prizes:AgStarBlandinBoiseBorder State BankLand -O- Lakes Wood PreservingMFINorbordPetro ChoicePotlatchSappiUltima BankVermeerKeynote speaker and chainsawsponsored by Minnesota ForestIndustries18Timber Bulletin May/June 2013

TPA Safety AwardsSafety was againhighlighted at theAnnual Banquet, asthe winners of the 2013TPA Safety contestwere recognized.First and foremostwas Lundberg ForestProducts of Solway,a repeat winner for25 consecutive years.Dan, Matt, and KyleLundberg werepresented a plaquerecognizing thisachievement.Those members withno lost-time accidentsfrom April 2012through March of thisyear:Logging Division• C & M Walsh Logging, Inc., ParkRapids• C. O. Johnson Logging, Inc.,Blackduck• Dean & Bob Walsh Logging, Inc.,Park Rapids• Dick Walsh Forest Products, LLP,Park Rapids• Dukek Logging, Inc., Bemidji• Erickson Timber Products, Inc.,Baudette• Great Northern Logging, Inc.,Pierz• Greg Cook Logging, Inc. Bigfork• Johnson Logging, Inc., CannonFalls• Junker Logging, Inc. Littlefork• Kelliher Forest Products, Kelliher• Killmer Bros., Inc., Big Falls• Kimball’s Logging, Inc., ParkRapids• Lundberg Forest Products, Inc.,Solway• M & R Chips, Inc., Grand Rapids• Mike Gates Logging, LLC, BigFalls• Northwoods Chipping, Inc., Int’lFalls• Page & Hill Forest Products, Inc.,Big Falls• Palmer Logging, BarnumL-R: Kyle, Dan, and Matt Lundberg of Lundberg Forest Products were honored for 25consecutive years without a lost-time accident at the TPA Annual Banquet.2013 SAFETY CONTEST WINNERS• Pittack Logging, Inc., Bovey• Root River Hardwoods, Inc.,Preston• Shuster Logging, Gheen• Simco & Habisch Logging,McGrath• Third Generation Logging,Bigfork• Tim Kelm Logging, Bemidji• Weijo Logging, ElyTrucking Division• C & M Walsh Logging, Inc., ParkRapids• C. O. Johnson Logging, Inc.,Blackduck• Dean & Bob Walsh Logging, Inc.,Park Rapids• DeMenge Trucking & ForestProducts, LLC, McGregor• Dick Walsh Forest Products, LLP,Park Rapids• Erickson Timber Products, Inc.,Baudette• Great Northern Logging, Inc.,Pierz• Greg Cook Logging, Inc. Bigfork• Johnson Logging, Inc., CannonFalls• Junker Logging, Inc., Littlefork• Kelliher Forest Products, Kelliher• Kimball’s Logging, Inc., ParkRapids• Lake Nebagamon Trucking Corp.,Lake Nebagamon, WI• Lundberg Forest Products, Inc.,Solway• M & R Chips, Inc., Grand Rapids• Mannco Trucking, Inc., Int’l Falls• Mike Gates Logging, LLC, BigFalls• Northwoods Chipping, Inc., Int’lFalls• Page & Hill Forest Products, Inc.,Big Falls• Palmer Logging, Barnum• Pittack Logging, Inc., Bovey• Root River Hardwoods, Inc.,Preston• Tim Kelm Logging, Bemidji• Two Inlets Mill, Park RapidsSawmill Division• Bergstrom Wood Products, Inc.,Int’l Falls• Cass Forest Products, Cass Lake• Erickson Timber Products, Inc.,Baudette• Johnson Logging Inc., CannonFalls• Kelliher Forest Products, Kelliher• Land O Lakes Wood Preserving,Tenstrike• Two Inlets Mill & BuildingSupply, Park Rapids20Timber Bulletin May/June 2013

Main Street, Rice, MN 56367 • Phone 320-393-2169 • Fax 320-393-2164Contact: Jim or Al Voigt

TPA Golfers and Anglers Battle RainRain and fog were the dominant conditions atRuttger’s Sugar Lake Lodge for the TPA Golf andFishing outings. But as is typical for a group that worksin a wide variety of weather conditions, golfers andanglers weren’t deterred – and were light on the land aswell!Fishing awards went to the angler with the longestfish and the angler with the shortest fish. Becauseit was again a catch-and-release event, fish weremeasured at the boat and anglers reported their lengthsat the end of the day.The Conservation Award (smallest fish of the day)went to Chuck Hughes of Boise with a 7-inch perch,while the Big Walter Award (largest fish) went to KellyKimball of Park Rapids with a 22-inch walleye.In the golf event, the Foot Wedge Award – earnedby the team with the best score – went to Team RMS,featuring Ryan Milette, David Haley of Haley Logging,Mike Rieger of Rieger Logging, and Dave Hensel ofUPM Blandin.The Caddyshacker Award – for the team that had themost fun and the highest score – went to Dan Holen,Joe Ulwelling, Dale Erickson, and Kit Hasbargen.Ben Preston and Mark Radzak of Bell Timber head out ontoSugar Lake in search of fish during the TPA Fishing Outing.Ross Korpela of Sappi Fine Paper celebrates after golfteammate Brian Gulseth of North Shore Forest Productsmakes a putt at the TPA Golf Event.Golfers at the TPA Event didn’t let a little rain stop them from having a good time. (L-R): Andy Shermoen, Ryan Milette,Ted Kromy, Mike Rieger, Jon Rolle, Dave Hensel, Cam Hardwig, and David Haley.22Timber Bulletin May/June 2013

Years Agoin the BulletinA sampling of stories andtopics from over 75 yearsof the Timber Bulletin25 years agoBoise Cascade Corporation has detailed plansfor a major modernization and expansion programat its pulp and paper mill in International Falls.The program represents approximately a $525million investment in the company’s uncoatedwhite paper business. Major components of theprogram include modernization and expansionof the existing pulp mill, construction of a stateof-the-artcleach l[ant, and a new 345-inch-trimpaper machine. AN estimated 190 new permanentjobs will be created when the expansion is fullyoperational in 1990.40 Years AgoOn July 1, The Minnesota DNR changed from a96-inch to 100-inch cord.Enactment of the Occupational Safety and HealthAct of 1973 makes possible the assignment to theDepartment of Labor and Industry responsibilityfor administration and enforcement of the worksafety program in the state.Hahn Machinery, Inc. of Schroeder will berelocating its entire operation to a new facility atTwo Harbors. The new plant is in the Two HarborsIndustrial Park.50 Years AgoTPA appointed Dana Worrall, Cloquet, as ActingExecutive Secretary.A new building is to be constructed for theMinnesota Forest Service in Finland, Minn. and itis to be made from western lumber, specified bythe state architect.DeliveringproductivityTHroughadvancedfluid powersolutionsComplete hydraulic ServicesCustom manufacturinghydraulic rebuild/repairMachine ShopLeak DetectionTrainingUSED REPAIR PARTSWheel Loaders, Crawlers, Track ExcavatorsLoader Backhoes, Skidders, Skid-SteerLoaders, Engines and Transmissions“Rely on our experience–Est. 1967”1-800-626-6046www.sewlparts.com - parts@sewlparts.com4535 State Route 3 N • PO Box 136Wolf Lake, IL 62998218-326-891034718 Industrial Blvd. E.Cohasset, MN 55721www.RapidsHydraulic.comTimber Bulletin May/June 2013 23

TPA Scores Major Victoryin DNR Funding at LegislatureThanks to TPA’s lobbyingefforts during the 2013 Minnesotalegislative session, the DNR’sDivision of Forestry will receivean additional $10.1 million in newappropriations, which will allowthe state to continue to offer 800,000cords of new wood annually.The governor’s initial budgetproposal of $4 million in newappropriations would have reducedstate timber sales from just over800,000 cords per year to the600,000 - 650,000 cord range. TheEnvironment, Natural Resourcesand Agriculture Omnibus bill in theHouse of Representatives also didn’tcontain sufficient funding. Butbecause the version of the bill passedin the Senate contained a higheramount – one that would adequatelyfund the Division of Forestry – theprovision went to a House-SenateConference Committee whereconferees agreed upon the finalamount of $10.1 million.A decrease in timber offered bythe DNR would have likely resultedin increased stumpage prices atauctions due to reduced supply.The additional funding will allowthe DNR to hire additional forestersand maintain its recent yearlytimber offerings. Thanks go toDNR Division of Forestry DirectorForrest Boe, as well as severalnortheastern Minnesota legislators,including Sen. Tom Bakk, Sen. TomSaxhaug, and Sen. Dave Tomassonifor their leadership on this issue.The additional funds amountedto 32% of the entire new GeneralFund money included in theEnvironment, Natural Resourcesand Agriculture Omnibus bill.In other actions affecting loggingand the forest products industryduring the 2013 legislative session:Timber Sale Re-codification: There-codification and revision of MNChapter 90 laws dealing with timbersales was passed. The changeswere mostly technical in nature andwere reviewed by TPA prior to theintroduction of the legislation.Balsam Fir Sales: The TPAprovision to provide relief forowners of DNR timber salescontaining a minimum amount ofbalsam fir passed.The legislation reads, “Uponwritten request submitted by apermit holder to the commissionerof natural resources on or beforeJune 1, 2015, the commissioner shallBOX 1008 • CASS LAKE, MN 56633 • 218-335-2694www.cassforest.comBuying Fresh Logs: Red and White PinePine Bolts: Jack, Red and WhiteFor Specifications Call 218-335-2694cancel any provision in a timbersale permit sold prior to September1, 2012, that requires the securitypayment for, or removal of all orpart of the balsam fir when thepermit contains at least 50 cords ofbalsam fir. The remaining provisionsof the permit remain in effect. Thepermit holder may be required tofell or pile the balsam fir to meetmanagement objectives.”The provision will help loggerswho lost their balsam market whenthe Verso and Georgia Pacific millsclosed last year.County Intermediate Timber Sales:Permissive language that clarifiesthat counties can offer timber forsale in the manner approved by thecounty board passed.State Nurseries: The prohibitionson state nursery operations enactedin 2011 were repealed. Funding wasappropriated to study and makerecommendations on future nurseryoperations.TaxesSFIA: The cap on SFIA paymentswas lifted and a rate of $7/acrewas enacted. SFIA payments onlands with conservation easementsgreater than 60,000 acres areprohibited. SFIA payments onfuture conservation easement landsare prohibited.Conservation Easement LandValuations: County assessorsare prohibited from lowering the24Timber Bulletin May/June 2013

valuation of lands with conservationeasements with the exception ofcertain easement lands in DakotaCounty.Sales Tax on Capital Equipment:Converting the refund program toan up-front exemption for the salestax on capital equipment passed andwill be effective in the third quarterof 2014.Payment In Lieu of Taxes (PILT):PILT payments to local unitsof government for state-ownedlands were increased. Countyadministered lands were increasedfrom $1.283 to $1.50/acre; “otherlands” were increased from $0.642to $1.50/acre; and “land utilizationproject lands were established at$5.133/acre which is the same rateset for various other lands.Utility Personal Property Taxes:Proposals to remove certain utilitypersonal property tax exemptions,including the exemption onpollution control equipment, didnot pass. The elimination of theseexemptions would have ultimatelycost the forest products industryseveral million dollars per yearwhen they worked their waythrough the rate-making system.Fuel Tax: Proposals to increase thefuel tax and charge a 5.5% salestax at the wholesale level were notenacted.Sales Tax - Warehousing: The salestax is extended to “warehousing.”It will take some time to determinewhere, to what and how the tax willbe implemented. It does appear thatthe tax will not apply to goods youown stored in facilities that you own.Sales Tax - Machinery Repair: Thesales tax was extended to labor onmachinery repair. Again, it will takesome time to sort out the applicationand impact of this provision.EnergySolar Mandate: Papermills,sawmills, oriented strand boardplants and other wood productsfacilities are exempt from payingthe cost of the new solar mandate.Electrical usage by these facilitieswill not be used to determine howmuch solar energy an investorowned utility must have. Electricityprovided by co-ops and municipalutilities are also exempt.Cost-Based Electrical Rates: Afterbeing part of the final negotiationsin two different bills, the phasedinnorthern MN provision did notpass.OtherMade in Minnesota Paper: Aprovision to require the State ofMinnesota to purchase papermade on paper machines locatedin Minnesota wherever practicablepassed.Permanent School Trust Fund:Funding was not provided for thetrust fund oversight position thatwas established in legislation passedin 2012 due to opposition from theDNR.Bonding: The bare bones bondingbill that passed did not include anyfunds for reforestation or forestroads.Truck Weights: A provisionto expand current truck weightprovisions for forest andagricultural products to certaindistribution centers in westernMinnesota passed. Provisions toalso extend this to aggregate and allfreight did not pass.Timber Bulletin May/June 2013 25

LOGGERS OF THE PAST . . .“The Menwith Authority”by J. C. RyanThis story is reprinted from an earlier Timber Bulletin–one of the first of “Buzz”Ryan’s ever-popular contributions to these pages. The Bulletin will continue toreprint selected stories from the memories he recorded for us.–Editor28Timber Bulletin May/June 2013

Timber Bulletin May/June 2013 29

Timber Bulletin March/April 2013 31

On the MarketsThe Timber Bulletin publishesinformation regarding results of asampling of recent timber sales andother market indicators, as well asother market-related news items.Recent Timber SalesAverage Prices, as reportedby each agencyAgency Regular IntermediateSt. Louis CountyMay 16 – Oral AuctionAspenpulpwood $28.76 NABirchpulpwood $ 8.43 NABalsam firpulpwood $12.04 NABlack Sprucepulpwood $26.36 NA24 of the 28 tracts offeredduring the sale were purchased.DNR – Park Rapids AreaMay 20 – Sealed BidTrembling Aspen(WC) $29.90 NAOak Species(WMP) $24.51 NASpruce-Balsam(WMP) $29.87 NAPaper Birch(WC) $ 8.50 NAAll 10 tracts offered duringthe sale were purchased.DNR – Backus andDeer River AreasMay 20 – Sealed BidAspen Species(WC) $22.34 $26.89Trembling Aspen(WC) $36.41 $32.80Mixed Hardwoods(WMP) $10.36 NABlack Spruce(WC) NA $26.3117 of the 22 tracts offeredduring the sale were purchased.DNR – Backus andDeer River AreasMay 21 – Oral AuctionAspen Species(WC) $26.22 $24.86Trembling Aspen(WC) $29.60 $33.47Balsam Fir(WC) $11.75 $11.5312 of the 19 tracts offeredduring the sale were purchased.DNR – Park Rapids AreaMay 21 – Oral AuctionTrembling Aspen(WC) NA $23.71Norway Pine(WMP) NA $35.53Red Oak(WMP) NA $25.82Paper Birch(WC) NA $ 8.96Pine Species NA $28.54Spruce-Balsam(WMP) NA $18.19All 35 tracts offered duringthe sale were purchased.Cass CountyMay 30 – Sealed BidAspen $19.28 $23.58Red Oak $21.24 $21.65Maple $11.28 $12.52Birch $13.02 $13.0911 of 13 tracts offered onthe auction were purchased.Itasca CountyMay 30 – Oral AuctionAspen $25.87 NARed Pine $51.84 NAPaper Birch $12.40 NABalsam $18.03 NABlack Spruce $23.36 NA44 of the 46 tracts offered onthe auction were purchased.DNR – Blackduck &Deer River AreasJune 4 – Oral AuctionAspen Species(WC) $33.02 $27.95Tamarack(WC) $ 5.10 NAMixed Spruce(WMP) $22.32 $34.398 of 15 tracts offered duringthe sale were purchased.DNR – Tower AreaJune 4 – Oral AuctionTrembling Aspen(WC) $24.48 $19.67Mixed Spruce(WMP) $19.31 $16.12Pine Species(WMP) $37.49 $34.45Aspen Species(WC) $17.85 $29.5415 of 27 tracts offered duringthe sale were purchased.DNR – Bemidji AreaJune 5 – Oral AuctionAspen Species(WC) $31.64 $25.83Trembling Aspen(WC) $26.21 $33.85Mixed Hardwoods(WMP) $16.54 NAWhite Spruce(WMP) NA $13.5919 of 22 tracts offered duringthe sale were purchased.DNR – Cloquet AreaJune 6 – Oral AuctionAspen Species(WC) $19.79 $39.28Maple Species(WMP) $11.11 $21.35Trembling Aspen(WC) $17.85 $33.20Paper Birch32Timber Bulletin May/June 2013

(WMP) $13.78 $25.08Mixed Spruce(WMP) $17.52 $28.4412 of 15 tracts offered duringthe sale were purchased.Carlton CountyJune 6 – Oral AuctionAspen $31.04 NANorway PineP/B $32.39 NANorthernHardwoods $ 8.80 NA13 of 14 tracts offered duringthe sale were purchased.DNR – Hibbing AreaJune 7 – Oral AuctionTrembling Aspen(WC) $30.72 $25.85Northern Hardwoods(WC) $ 8.75 $ 7.95Black Spruce(WC) $19.70 NABalsam Fir(WC) $11.71 $11.76Mixed Spruce(WC) $17.73 $21.8529 of the 38 tracts offeredon the sale were purchased.DNR – Aitkin AreaJune 7 – Sealed BidAspen Species(WC) $22.08 NAAspen Species(WMP) $26.38 NATrembling Aspen(WC) $26.44 NANorway Pine(WMP) $55.47 NANorthern Hardwoods(WC) $16.07 NA13 of the 19 tracts offered duringthe auction were purchased.DNR – Aitkin AreaJune 10 – Oral AuctionAspen Species(WC) $28.96 $27.41Trembling Aspen(WC) $23.74 $17.85Norway Pine(WMP) $34.19 $26.36Northern Hardwoods(WC) $11.50 $20.0833 of the 41 tracts offered duringthe auction were purchased.DNR – Tower & Littlefork AreasJune 11 – Sealed BidAspen Species(WC) $35.39 $32.67Trembling Aspen(WC) $40.45 $31.83Black Spruce(WC) $22.72 $14.57Balsam Fir(WC) $11.71 $11.7314 of the 16 tracts offered duringthe auction were purchased.DNR – Littlefork AreaJune 12 – Oral AuctionAspen Species(WC) $25.75 $35.50Black Spruce(WC) $26.47 $15.69Tamarack(WC) $ 5.10 $ 5.00Trembling Aspen(WC) $29.63 $25.8825 of the 26 tracts offered duringthe auction were purchased.DNR – Two Harbors AreaJune 12 – Sealed BidAspen Species(WC) $28.96 $27.41Trembling Aspen(WC) $23.74 $17.85Norway Pine(WMP) $34.19 $26.36Northern Hardwoods(WC) $11.50 $20.0833 of the 41 tracts offered during theauction were purchased.Products:PB= Pulp and BoltsWMP= Woodsrun mixed ProductsWC= Woodsrun cordwoodST=SawtimberWST=Woodsrun SawtimberPW=PulpwoodDON EVANS INSURANCE AGENCY, INC607 Northwest 5th Street , Grand Rapids, MN 55744Office (218) 326-0563 Evenings: (218) 326-1959don.evans@donevansinsurance.comwww.donevansinsurance.comTruck - Equipment - General Liability - Workers’ Comp - LifeServing the loggingindustry forover 25 yearsRepresenting many fine companies, including:Representing many fine companies, including:Call us for a quote!218-326-0563Timber Bulletin May/June 2013 33

TIMBER BULLETIN Subscription OrderPlease ENTER my subscription to the Minnesota Timber Bulletin (six issues peryear). Payment is enclosed for: 1 year $ 25 2 years $ 40 3 years $ 55Please type or print clearly.NAME ____________________________________________________________ADDRESS _________________________________________________________CITY _____________________________STATE ____________ZIP____________COMPANY/ORGANIZATION ____________________________________________Please send my GIFT SUBSCRIPTION to the Minnesota Timber Bulletin (six issuesper year) to be sent to the name below. Payment is enclosed for: 1 year $ 20 2 years $ 33 3 years $ 45Please type or print clearly.NAME ____________________________________________________________ADDRESS _________________________________________________________CITY _____________________________STATE ____________ZIP____________ClassifiedsTo serve our readers better, the TimberBulletin offers free classified ads ofup to 85 words to all members andassociate members of the MinnesotaTimber Producers Association. All adsmust be submitted in writing to theAssociation office. The MTPA assumesno responsibility for ad contents andaccepts free ads on a first-come, firstservedbasis within space limitations.________________________________WANTED ________________________________Barrel stave logs – White Oak andBurr Oak butt cuts 12-inch diameterand up – random lengthsFor more information callRobert Staggemeier atStaggemeyer Stave Co. Inc.Caledonia, MN 55921Office: 507-724-3395Cell: 608-792-7598Make checks payable to:TPA Services, Inc., 903 Medical Arts Bldg., 324 W. Superior St., Duluth, MN 55802Note: Existing subscriptions will continue at their current rate until they expire.OUT OFSTOCKADVERTISERS INDEXAgStar..............................................................................4Cass Forest Products....................................................24Central Power Distributors...........................................9Don Evans Insurance Agency, Inc.............................33Fryberger, Buchanan, Smith & Frederick, P.A.........13Great Lakes Trailers.....................................................15Hedstrom Lumber Co.................................................13Industrial Fluid Technologies, LLC...........................25Itasca Greenhouse........................................................27Lumbermen’s Underwriting Alliance.......................11Northern Engine & Supply.........................................12Northern Timberline Equipment...............................17Nortrax......................................................................5, 35Otis-Magie Insurance Agency....................................32Petro Choice..................................................................23Pomp’s Tire.....................................................................5Rice Blacksmith Saw & Machine...............................21Rihm Kenworth............................................................27Road Machinery & Supplies.......................................36Schaefer Enterprises.....................................................23Stewart-Taylor Printing...............................................13Titan Machinery.............................................................7Wausau Sales Corp........................................................6Ziegler............................................................................1934Timber Bulletin May/June 2013

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