NEBC Conference On Managing Carbon

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NEBC Conference On Managing Carbon
Wood Is Good!
Steven J. Zika CEO, Hampton Affiliates
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Who is Hampton Affiliates?

• 167,000 Acres of Timberland Owned in Oregon
  Washington
• 120,000 Hectares of Timberland Managed in British
  Columbia
• Annual Lumber Manufacturing Capacity of 1.9
  Billion Board Feet
• Annual Sales Exceed 1 Billion

Babine Decker
Darrington
Cowlitz Studs
Tillamook
Willamina
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Forests Can Be Our Friends
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Or Our Foes To Improving Our Environment
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Forest Facts

• We manage our timberland sustainably under
  principles of SFI (Sustainable Forest Initiative)
• The other primary certification system FSC
  (Forest Stewardship Council) is not currently
  economically viable on Westside timberlands.
• Forest practice laws in the Northwest are the
  most stringent in the world.
• Trees are harvested after 45-75 years of growth
  and replanted within one year.

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Role of the Federal Forests

• Federal forests represent over 50 of all Oregon
  timberland.
• Environmental lawsuits have shutdown virtually
  all commercial logging on Federal forestland.
• More timber burns or dies in Northwest Federal
  forests than is harvested annually.
• Almost all significant forest fires begin or
  build on Federal lands.

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Future of Timberland

• The current sales prices for Northwest timberland
  far exceed the current economics.
• Conversion of timberland to other uses is a
  significant issue.
• New large timberland owners have increased
  short-term harvest levels.
• Maybe environmental benefits change the business
  equation.

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Timberland Carbon Markets Evolving

• Concept is sound that credits could be earned for
  storing carbon.
• Issues
• Sprinting Politicians
• Baseline / Additionality
• Perpetual Easements
• Life Cycle of Wood

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Which Is More Sustainable?
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Now is Our Chance!

• We are not the bad guys
• - We are the Good Guys
• Industry has been out-marketed for decades
• Time to tell our story

Wood Is Good!
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StrategyForestland Management

• Certification Environmental Stewardship
• Habitat Restoration Wildlife Considerations
• Carbon Credits Conservation Easements

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StrategyImproved Plant Site Environment

• New Hog Fuel Boilers
• Biomass Electrical Generation
• Stormwater Improvements
• Waste Reduction and Energy Conservation

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StrategyMarketing

• Currently no premium for significant volumes of
  certified lumber
• Mass merchandisers require good environmental
  record
• Evaluating future ECO-Markets
• Working with Home Depot on more
  environmentally-friendly packaging.

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StrategyCommunicate Our Story

• Calculating Environmental Footprint From 2000
• Internal company communications
• Meetings with Politicians
• Industry Focused Marketing
• Convince Moderates-

Wood Is Good!