The Maine Future Forest Economy Projectwas a year-long analysis of the state’s forest products manufacturing industry, funded by

the Department of Conservation-Maine Forest Service (with funding from the USDA Forest Service) and theMaine Technology Institute.This effort, led by Innovative Natural Resource Solutions LLC’s vice president,Eric Kingsley, benefited from the advice of a 12-memberadvisory committee and the input of hundreds of membersof Maine’s forest products manufacturing industry.

Maine’s forest products industry hasentered a period of rapid change.Theindustry is consolidating, diversifying,and becoming more efficient in the faceof ever-increasing global competition.Part of this change includes a decline in the number of employees.Whileemployment numbers are down, Mainemills have strived to increase productivity.Far from the “dying industry” some outside observers see, Maine’s pulp and paper industry has enjoyedstable production over the last decade, and the volume oflumber produced in Maine has increased by roughly 250%since 1975.

Continued on page 2

NOT ANOTHER NEWSLETTER?!Well, yes, but more importantly a

way for Innovative Natural ResourceSolutions LLC to let you know whatwe have been up to.We have been busyworking for a variety of clients from theprivate, public and non-profit sector over the last 11 years––and not doing such agood job of letting folks know about it!

We have been fortunate over theyears to work with dozens of companies,non-profits and agencies doing what we love best––helping find new ways to achieve what isimportant to them. Now with offices in Maine and NewHampshire, INRS goes where clients need us––to date in 14 states and two provinces of Canada.

Over the last decade INRS has:� COMPLETED a feasibility study to determine the availability of wood for a forest products processing facilityin Maine;

� HELPED a land trust develop a strategic plan that has led to a several-fold increase in budget and accomplishments;

� LED forest certification audits on over 2.5 million acres in 11 states, through The Plum Line, a partnership withStrategic Resource Systems of Michigan.

� ASSISTEDThe Trust for Public Land in conserving the171,000 acre Connecticut Lakes property in Northern NewHampshire;

� PROVIDED public involvement assistance to the WhiteMountain National Forest in developing a new forest plan;

� ADVOCATED for non-profit and for-profit clientsbefore the state legislature and agencies;

� COORDINATED, researched and wrote for the NHEnergy Plan;

� PUBLISHED Forest Certification Auditing, a book on thesubject through the Society of American Foresters (Oct. ’05)

And the list goes on. So please read on––we’ve highlight-ed two projects from this past year.We thank you for yourbusiness and association. Please call us if we might assist.

Charles A. Levesque, President

Eric Kingsley

Solutions...Solutions...A periodic newsletter for clients and friends of Innovative Natural Resource Solutions LLC

What’s this?

Charles A. Levesque

The MaineFuture ForestEconomyProject

The MaineFuture ForestEconomyProject

www.inrsllc.com

October, 2005 Volume 1, Issue 1

RecommendationsThese recommendations are designed to help Maine stategovernment, forest product manufacturers and other stake-holders develop the conditions necessary for the forest industry to prosper in a changing economy.They are notfocused on individual manufacturing facilities, bur rather seek to improve the underlying economic system that Mainemills operate in while safeguarding public values.

Recommendations contained in the Maine Future ForestEconomy Project range from the tax treatment of new capital investment to development of entrepreneurial net-works where businesses can share ideas and create opportu-nities. Improvements to the transportation network, develop-ment of new forest-based products, and improved connec-tions between businesses and state programs are discussed.

As these challenges are addressed, Maine can harness public support for the forest products industry. In a poll of Maine residents conducted for this project, 93% ofrespondents indicated that it is important to maintain theforest products economy as a significant component of theMaine economy. Sixty-four percent of respondents supportchanges to the state’s tax policy to help forest industriesbecome more competitive, and 58% support investment ofpublic dollars to improve the health of the forest economy.

The text of the full report, an executive summaryand individual chapters can be found at the MaineForest Service website:http://www.state.me.us/doc/mfs/mfshome.htm

“...The most comprehensive study ever done on the forest products

industry in Maine.”“The report...and the recommendations flowing from it, will help the forest products

industry capitalize on its strengths and address its weaknesses.”

PATRICK MCGOWAN, Maine Conservation Commissioner

Continued from page 1

The Maine Future Forest Economy ProjectThe Maine Future Forest Economy Project

Strengths of Maine’s Forest Products IndustryMaine forest product manufacturers have significant strengths,and these present opportunities. Maine’s forest products “cluster”––the depth and variety of manufacturers––providesopportunities to find profitable niches and adapt to changingmarkets. Maine is physically close to the largest market of consumers in the world, an advantage that cannot be replicatedby other regions. Maine’s white pine lumber industry hasenjoyed strong demand, and mills have been making continuedinvestments in productivity.The state’s spruce-fir resource isunusual in the U.S. and positions Maine mills to exploit certainmarket niches for lightweight papers.

Of course, Maine forest products manufacturers face veryreal challenges.The past five years have seen a number of forestproducts manufacturing facilities close, from paper mills todowel manufacturers.

During this same time period, new forest products havecome to Maine, and existing facilities have added capacity and product lines. More changes can be anticipated in thefuture––some of them challenges, some of them opportunities.

In order for Maine and its forest products manufacturers tobe best positioned for the future, the Maine Future ForestEconomy Project makes a number of recommendations.

INRS has had the pleasure of assisting the North EastState Foresters Association (NEFA) in a wide range of regional work on the forests of Maine, New

Hampshire,Vermont and New York since the late 1990s.The most wide-ranging NEFA effort has occurred this pastyear and INRS President Charles Levesque was in the lead.The year 2004 marked the 10th anniversary year of theissuance of Finding Common Ground: Conserving the NorthernForest, the final report and recommendations of the NorthernForest Lands Council (NFLC).

INRS organized a new group of stakeholders appointedthrough Governors Baldacci of Maine, Benson and Lynch of New Hampshire, Douglas of Vermont and Pataki of New York––not an easy task.The 23-member group reviewed and re-analyzed the issues surrounding the Council's reportand 37 action recommendations about the future of the 26 million acre Northern Forest region of the northeasternUnited States. INRS then facilitated the group’s deliberativeprocess in reaching agreement on a set of conclusive recommendations.

We are continuing to work with NEFA to move forwardall four recommendations but particularly recommendation 4––to get a collaborative process started through the gover-nor’s offices in the four-states to move ahead recommenda-tions 1-3.

Philip Bryce, New Hampshire State Forester and NEFAChair says of the process,“This effort may have some of themost lasting effects on the region’s forests and its people”.

INRS president Charles Levesque was the original executive director of the Northern Forest Lands Council.In his opinion, revisiting the work of the original Councilwas very important––changes taking place in the region’sforests and forest-based communities are significant.The 10thanniversary work tries to address these changes for the goodof the forests, communities and people of the region.

“This effort may have some of the most lasting effects on the region’s forests and its people.”

“This effort may have some of the most lasting effects on the region’s forests and its people.”

Northern Forest Lands Council 10th Anniversary ForumFINAL REPORT April 25, 2005Recommendations for the Conservation of the Northern Forest

Northern Forest Lands Council 10th Anniversary ForumFINAL REPORT April 25, 2005Recommendations for the Conservation of the Northern Forest �

�

North

East Foresters Association

State

NEFAThe State Foresters cooperating with the US Forest Service State and Private Forestry

Sponsored by the North East State ForestersAssociation (NEFA)

Northern Forest Lands Council 10th AnniversaryWorking to Conserve the Northern Forest

Northern Forest Lands Council 10th AnniversaryWorking to Conserve the Northern Forest

Policy RecommendationsThis new effort concluded that action was needed on four fronts:

Recommendation 1: INVEST public and privateresources to develop and implement community and economic development strategies across the region toreinvigorate the rural economies of the Northern Forest.

Recommendation 2: CONTINUE public and privateinvestment in the conservation and forest stewardshipefforts catalyzed by the work of the original NorthernForest Lands Council.

Recommendation 3: SUPPORT private forest landown-ers in practicing sustainable forest management and goodstewardship while encouraging public access to privateland for recreational purposes.

Recommendation 4: CREATE a collaborative regionaleffort to follow through and ensure the implementation of the initiatives in this report.The Forum urges the governors to initiate a continuing coordinating mecha-nism, to provide an ongoing and sustained focus on thechallenges and opportunities common to the NorthernForest geographies of the four states.

Governors Baldacci, Lynch, Douglas and Pataki have endorsed the report recommendations.

In Antrim, NH37 Old Pound RoadAntrim, NH 03440

In Concord, NH18 Low AvenueConcord, NH 03301

In Portland, ME107 Elm Street, Suite 100EPortland, ME 04101

Innovative Natural Resource Solutions, LLC37 Old Pound Road

Antrim, NH 03440

Where you can find usInnovative Natural Resource Solutions, LLC www.inrsllc.com

Charles Levesque, President603-588-3272 tel (Antrim)603-496-6513 celllevesque@inrsllc.com

June West, GrantsAdministrator/Office Manager603-226-0012 tel (Concord)west@inrsllc.com

Eric Kingsley, Vice President207-772-5440 tel (Portland)207-233-9910 cellkingsley@inrsllc.com

What INRS is doing now...

A few (of many) ongoing INRS projects:� Assisting several energy companies with wood-fired energy plant

development and renewable energy credit markets in New England.

� Completing Cost of Community Services studies for two NewHampshire communities.

� Assisting the North East State Foresters Association in completing business plans for forest-based businesses in the Northern Forest region.

� Completing a forest certification audit in North Carolina.

And our volunteer work is very important:Eric Kingsley is on the Board of Directors of the Small Woodland Owners Association of Maine.

Charles Levesque is on the Board and is the incoming President of theCenter for Woodland Education (publishers of Northern Woodlands magazine)and has chaired his hometown Open Space Committee for the last year.

Innovative Natural ResourceSolutions LLC is ready to provideyou with outstanding service in:� Advocacy and Government

Relations;

� Forest-based economic development;

� Renewable energy issues consulting;

� Fund-raising and development;

� Environmental auditing and audit prep;

� On-the-ground land protectionplanning and implementation;

� Process facilitation and mediation;

� Policy-related research;

� Public and media relations forbusiness and non-profit clients;

� Strategic planning;

� Natural resource managementassistance;

� Writing, editing and teaching.