Estimating Timber Value Estimating Timber Value in Leave-tree Buffersin Leave-tree Buffers

Western Mensurationists Meeting

WA-DOR Forest Tax

Laurence Reeves

Purpose of StudyPurpose of Study

“Forest & Fish” Bill (HB 2091, 1999 spec. session) increased Forest Practice requirements

Eligible timber harvests get 16% FET credit to offset compliance costs

Study was mandated to examine the degree to which credit covers costs

Nov 2002 deadline to Legislature

Overview of MethodologyOverview of Methodology

Identify eligible units for cruising Measure leave-tree volume Allocate volume between old and new Forest

Practice rules Assign value to volume Analyze data Summarize results

Methodology- Unit IdentificationMethodology- Unit Identification

Harvest must be completed, tax paid and FET credit received

Credit eligibility based on complying with one or more of six EARRs

Only cruised units with RMZ, wetland and/or steep/unstable slope

Did not cruise units with RMAPs only (no leave-trees) or HCP/WA (non-uniformity)

Methodology- Measuring TreesMethodology- Measuring Trees

3-person teams using relaskops, tapes, laser rangefinders and MC-5 computer

100% tree visitation for DBH and specie. FF, bole height and log grade were continually sampled, 20% min target

SuperAce 98 extrapolates FF, bole height and log grade to entire population

L.O.s may request cruise data, some have check-cruised units with similar results

Methodology-Allocating Volume Methodology-Allocating Volume

Lack of consensus whether to measure incremental or total FP rule impact

Decided to cruise all EARR leave-trees then remove trees in SuperAce based on old FP rules and WRT/GRT reqs.

Remaining trees allocated to new FP rules SuperAce generates 3 volume reports based on

total, new and old FP rules

Methodology- Assigning Value Methodology- Assigning Value

DOR Stumpage Value Tables used to value leave-tree volume

Timber quality codes in Tables are based on % of #2 sawmill grade for DF & WH and % #3 sawmill grade for RA

Export sorts not a factor in cruise or valuation Values produced for all 3 groups (total, new and

old FP rule volume)

STUMPAGE VALUE TABLE

STUMPAGE VALUE AREA 1July 1 through December 31, 2002

Stumpage Values per Thousand Board Feet Net Scribner Log Scale(1)

TimberQuality Hauling

Species Code Distance Zone NumberSpecies Name Code Number 1 2 3 4 5

Douglas-fir DF 1 $533 $526 $519 $512 $5052 474 467 460 453 4463 447 440 433 426 4194 364 357 350 343 336

Western Redcedar(2) RC 1 602 595 588 581 574Western Hemlock and Other WH 1 277 270 263 256 249Conifer(3) 2 232 225 218 211 204

3 224 217 210 203 1964 214 207 200 193 186

Red Alder RA 1 294 287 280 273 2662 249 242 235 228 221

Black Cottonwood BC 1 1 1 1 1 1Other Hardwood OH 1 172 165 158 151 144Douglas-fir Poles DFL 1 708 701 694 687 680Western Redcedar Poles RCL 1 1094 1087 1080 1073 1066Chipwood CHW 1 1 1 1 1 1RC Shake Blocks RCS 1 303 296 289 282 275RC Shingle Blocks RCF 1 121 114 107 100 93RC & Other Posts(4) RCP 1 0.45 0.45 0.45 0.45 0.45DF Christmas Trees(5) DFX 1 0.25 0.25 0.25 0.25 0.25Other Christmas Trees(5) TFX 1 0.50 0.50 0.50 0.50 0.50(1)Log scale conversions Western and Eastern Washington. See conversion methods WAC 458-40-680.

(2)Includes Alaska-cedar

(3)Includes Western Hemlock, Mountain Hemlock, Pacific Silver Fir, Noble Fir, Grand Fir, Subalpine Fir and all Spruce.

Pacific Silver Fir, Noble Fir, Grand Fir, and Subalpine Fir are all commonly referred to as "White Fir".

(4)Stumpage value per 8 lineal feet or portion thereof.

(5)Stumpage value per lineal foot.

Methodology- Analyze Data Methodology- Analyze Data

Main focus is on credit versus leave-tree value, but also examining % of total FPAs receiving credit and credit qualifier

With roughly 100 cruises statewide, only large strata are possible, such as east vs. west and large vs. small harvester

Harvest units differ widely by size, aquatic resources, timber quality, etc: data are not normally distributed and highly variable

Methodology-Summarize Results Methodology-Summarize Results

Because of high variability, presenting an average doesn’t tell whole story

Median or weighted-average statistic may give better representation due to large tail

Overall, value of leave-tree buffers tends to be larger than FET credit

Majority of value (and volume) lies in area required by new FP rules

Most FPAs get credit for only RMAPs

Current Status (as of 6/11/02)Current Status (as of 6/11/02)

Progress: 96 units cruised – 81 westside, 15 eastside– 77 large, 19 small harvesters– 4 with no impact– we have 13 identified units left to cruise

Budget Complications– In March 2002 we had to curtail remote

harvest units due to budget crisis