 BC Timber Sales BCTS manages the harvesting and reforestation of a significant portion of the timber in British Columbia's provincial forest. We operate in 12 business areas throughout the province and employ more than 600 staff in 33 communities. BCTS is a self-financing program within British Columbia's Ministry of Forests, Lands, Natural Resource Operations and Rural Development. Most of the land in British Columbia is public, and more than half of public land is provincial forests. The provincial chief forester determines how much of the timber on public lands can be sustainably harvested. This is referred to as the Allowable Annual Cut, or the AAC. BCTS manages 20% of the Allowable Annual Cut for the province. Anyone, including BCTS, who wants to harvest timber from public land, must develop plans that comply with forest laws and sustainable forest management principles. We consult with the public, First Nations, industry, and experts to ensure plans include steps to maintain ecosystem health and support resilient communities and good-paying jobs. Before anyone can harvest public timber, a forest stewardship plan must be created and approved. Forest stewardship plans, or FSPs, are legal documents that identify where roadbuilding, forest harvesting, and civil culture activities such as planting and brushing may occur. FSPs are valid for five years. They describe how our licensee will meet with objectives set by government for managing soil, timber, wildlife, water, fish, biodiversity, visual quality, cultural heritage, recreation, invasive plants, and natural range barriers. BCTS encourages community members to participate in planning our forest activities and to provide input on our forest stewardship plans. Whenever a forest stewardship plan is prepared or amended, it is made available for public review and comment. This gives the public, stakeholders, and First Nations the opportunity to inform BCTS about their interests before any site-specific plans are made, including roads and harvesting locations. Once a forest stewardship plan is approved, foresters and other professionals develop site-specific plans and assessments for archaeology, hydrology, visual impacts, and terrain stability. Sustainable forest management is an overarching principle for BCTS. All of our operations are certified to internationally-recognized sustainable forest management standards. This provides assurances to the public and to our customers that our timber comes from legal and well-managed forests. Sustainable forest management is more than just managing timber. We also help manage habitat for species at risk and support the Provincial Forest Carbon Strategy. After the site-specific planning has been completed, we generally employ local contractors to lay out cut-block boundaries on the ground and build roads to access the timber. At BCTS, we respond to ever-evolving situations by incorporating scientific advances to better meet changing public expectations and new market circumstances. We apply adaptive forest management to both long-term planning and day-to-day decision making. Once laid out, cut-blocks are bundled to form timber sale licenses, or TSLs, which BCTS competitively auctions. Timber sale licenses are awarded to the BCTS registrant with the highest bid. The licensee may be a market logger, sawmill operator, independent timber processor, or a major licensee. Once a timber sale license is awarded, the licensee manages the harvesting operations. Data obtained from BCTS's timber auctions is used to determine the market value of timber harvested from public land. This business process is referred to as the market pricing system. The market pricing system is used to demonstrate to our trade partners that public timber is being sold at market prices. The market pricing system also ensures British Columbians receive fair market value for their timber resources. As well, by providing a reliable supply of timber through open and competitive auctions to loggers, wood processors, and other forestry businesses, BCTS supports workers and rural communities across BC. Our operations directly support over 8,000 jobs and another 10,000 indirect jobs in British Columbia. Since its creation in 2003, BCTS provides, on average, over $50 million a year in net revenue to the province. Net revenue from BCTS operations support other government programs and infrastructure such as highways, hospitals, schools, and provincial parks. The vast majority of our activities, such as development, road construction, tree planting, and road deactivation, are contracted to the private sector. Each year we competitively award over $140 million in contracts to forest sector companies and local contractors throughout the province. Between 2003 and 2018, we put over $1.1 billion into rural communities and economies. At BCTS, worker safety is an overarching principle. BCTS operations have had third-party safe company certification since 2007. All our contractors working in the field are required to be safe certified. Strong relationships are essential to our success. Key areas of focus for BCTS are effective communication, transparency, information sharing, and maintaining strong business-to-business relationships. We continually seek input, collaboration, and partnership opportunities with First Nations, major licensees, communities, contractors, and other divisions of government for mutual benefit. In 2018, BCTS adopted a new overarching principle, reconciliation with indigenous peoples. We are helping to increase First Nations' capacity and participation in the forest sector, and have entered into nearly 100 agreements with First Nations. All areas harvested by BCTS licensees are reforested with a diverse array of seedlings native to the area. Each year BCTS spends over $40 million on silviculture activities and grows and plants more than 40 million of our own seedlings. We also supply seedlings to government reforestation and restoration programs such as the Forests for Tomorrow program, the Forest Carbon Initiative, and the Forest Enhancement Society. In 2017-2018, BCTS managed the production, storage, and distribution of more than 20 million seedlings for other government programs. All seedlings planted on public land are tended to for up to 20 years, or until they are declared healthy and free of competition from surrounding plants, shrubs, or trees. This ensures healthy, sustainable forests for the future. BCTS is dedicated to the safety of everyone affected by our operations and are invested in our relationship with First Nations, local communities, industry, contractors, and other government departments. We play an important role in the forest sector, contribute to the health and resiliency of rural communities and sustainably manage the forests for the benefit and prosperity of all British Columbians.