In This Issue:

• Message from the CEO
• Corporate News
• Operations
• Log Harvesting
• Forestry News
• Information Systems
• Mill Report
• Combatting a Cold
• Safety Stats
• Calendar

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By Gary Collinge, ManagerLog Harvesting

The coast forest industry is entering into an area we haven't dealt with for many years, the high Canadian dollar. For parts of the coastal industry the recent agreement between USW and FIR means a return to work, but for how long? The dollar coupled with a very weak domestic lumber market is going to make for a tough winter. Coulson is well positioned due to our cedar volumes but the dollar will eventually effect that market as well.

The log market has been sliding for awhile in all species except cedar, logging production is still holding at 50% cedar. The mill is surviving on its ability to cut all species, both to market and custom cut. This flexibility bodes well for survival in this market.

We are working through all the permit issues to bring TFL 54 on line as soon as possible. At this point road construction and falling are scheduled for late January / February, with logging scheduled for late March.

Toquart is being put to bed at this time with a small volume being held back in block 73 for January mill production.

All our focus is Cataract; the LL4, L19, L17 and H19 will move into Cataract for added production ability. We recently completed a $75,000 sort overhaul which I hope will last for the next 70,000 m3. With the additional equipment and sort improvements, we will man up and target 800m3 per day.

Trucks continue to be an issue as the CL36 haul is testing everything we have. We may have to add a truck and reduce load size to hit the mark. The H10 has had suspension repairs and is in for paint, the H14 has engine problems with its future undecided, and we will bring the H16 to town for suspension repairs.