west fraser timber co. ltd. fraser timber co. ltd. ... west fraser timber co. ltd. report to...
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West Fraser Timber Co. Ltd.
E N V I R O N M E N T A L R E p O R T 2 0 1 1
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Report to Shareholders
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West Fraser Environmental Policy
West Fraser is committed to responsible stewardship of the environment. A philosophy of
continual improvement of our forest practices and manufacturing procedures has been
adopted to optimize the use of resources and minimize or eliminate the impact of our
operations on the environment.
West Fraser recognizes that environmental excellence is an integral aspect of long-term business
success. Our Company and its employees are committed to the following:
• Complyingwithallapplicableenvironmentallawsandregulations,andwithother
requirements to which the organization subscribes.
• Preventingpollutionandcontinuingtoimproveourenvironmentalperformancebysetting
and reviewing environmental objectives and targets.
• Conductingperiodicenvironmentalaudits.
• Providingtrainingforemployeesandcontractorstoensureenvironmentallyresponsible
work practices.
• Communicatingourenvironmentalperformancetoemployees,customers,shareholders,
local communities and other stakeholders.
• Reviewing,onaregularbasis,thispolicytoensurethatitreflectstheCompany’songoing
commitment to environmental stewardship.
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Environmental Certification
WestFrasermaintainsvariouscertificationsrelatedtotheCompany’swoodlands,fibresupplychainandmanufacturingoperations.
WestFraser’swoodlandsoperationsinBritishColumbiaandAlbertaarecertifiedthroughtheSustainableForestryInitiative(“SFI”).SFI
is an internationally recognized system which certifies that forest management practices are carried out to a standard that integrates
thesustainablegrowingandharvestingoftreeswiththeprotectionofwildlife,plants,waterandsoilquality,andwithawiderangeof
other conservation goals.
WestFraseralsosubscribestotheProgrammeforEndorsementofForestCertification(“PEFC”)standardforitsCanadian-produced
forest products. pEFC chain of custody allows the Company to demonstrate to customers that the fibre in its supply chain comes from
sourcesthatcomplywithapplicablelaws,regulationsandsustainableresourcestandards.
InadditiontothePEFCcertification,theCompany’sfourpulpandtwoMDFmillsareregisteredtotheForestStewardshipCouncil’s
(“FSC”)StandardforChainofCustodyCertificationandtheStandardforCompanyEvaluationofFSCControlledWood.Thisallows
verificationthattheCompany’spulpandMDFproductsarenotderivedfromcontroversialsources.
TheCompanyalsomaintains ISO14001certificationof theEnvironmentManagementSystem(“EMS”)at itsCanadianwoodlands
operations. This provides independent verification that the Company considers and takes measures to minimize or eliminate the
environmental impact of its activities while striving for performance improvements.
Withrespecttomanufacturingactivities,eachoftheCariboo(“CPP”),Hinton(“HP”)andQuesnelRiver(“QRP”)pulpmillsmaintains
anEMSISO14001certification,whileeachoftheAlbertaNewsprintmillandtheSlaveLakepulpmillmaintainscertificationofitsEMS
andsafetyprogramsundertheAlbertaForestProductsAssociationForestCareprogram.EachoftheCompany’stwoMDFoperations
maintainsGreenCrossCertification,whichverifiesthatitsproductsaremanufacturedfrom100%recycledmaterial.
Formoreinformationoncertification,refertotheWestFraserSustainabilityReportatwww.westfraser.com.
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Conservation
InMay2010WestFraserand20otherforestcompanieswhoaremembersoftheForestProductsAssociationofCanadasignedthe
CanadianBorealForestAgreement(“CBFA”).TheCBFAisanagreementbetweenthesecompaniesandnineenvironmentalorganizations
whichappliesto72millionhectaresofpublicforeststhatarelicensedtothecompanies.Whenfullyimplemented,theCBFAisexpected
toconservesignificantareasofCanada’sborealforest,protectthreatenedwoodlandcaribouandprovideacompetitivemarketedgefor
participatingcompanies.ForfurtherinformationandmaterialsontheCBFA,visit:www.CanadianBorealForestAgreement.com.
Aswell,during2011theCompanycontinuedtoworkwithgovernmentagencies,industryandpublicinterestgroupsrelatedtowildlife
habitat protection and multiple use of the woodlands under its management. For more on these conservation initiatives refer to the West
FraserSustainabilityReportatwww.westfraser.com.
Permits and Approvals
IntheU.S.,theEnvironmentalProtectionAgencyissuedthefinalversionoftheBoilerMACTRule(MaximumAchievableControlTechnology)
inDecember2011.ThisruleislikelytoaffectvariousindustrialsitesintheU.S.includingseveralofWestFraser’sU.S.operations.
Effluent Quality, Air Quality and Greenhouse Gases
In2011WestFraseroperatedfivepulpandpaperfacilitiesinB.C.andAlberta.Alloftheseoperationshavetakenmeasuresaimedat
sustainability,includingreducedenergyconsumption,andgreenhousegas(“GHG”)emissionsandimprovedeffluentandairquality.
FormoreinformationoneffluentandairqualityandGHG,refertotheWestFraserSustainabilityReportatwww.westfraser.com.
Climate Change Regulation
AlbertaispresentlytheonlyjurisdictioninwhichWestFraserhasoperationsthathasamandatoryGHGemissionreductionsystemin
place.TheAlbertalegislationmandateda12%reductioninGHGemissionintensityforeachapplicablefacilitybytheendof2007.HP
is the only West Fraser operation in Alberta subject to the reduction.
Intotal,WestFraser’sAlbertaoperationshavegeneratedover670,000GHGcreditsandoffsetsfromfuelswitchingandenergyreduction
projects.
In2011,theB.C.governmentcontinuedtotakepartintheWesternClimateInitiative’s(“WCI”)developmentofaregionalGHGcap
andtradesystem,however,thegovernmentwillnotimplementtheprogramin2012asoriginallyplanned.TheWCIisacollaboration
ofcertainwesternU.S.statesandtheCanadianprovincesofB.C.,Manitoba,OntarioandQuebec,withthegoaltodevelopregional
strategiestoaddressclimatechange.Thegroupissuedthedetaileddesignforaregionalcapandtradesystemin2010andthetarget
dateforimplementationwastobe2012.However,severalofthejurisdictionsparticipatingintheWCIhavestatedthattheywillnotbe
implementingthesystembythenandonlyCaliforniaandQuebeccontinuetotargetthe2012date.Atthistime,theB.C.governmentis
assessingtheeconomicimpactofproposedGHGreductionprograms.
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Environmental Certification (continued)
UnderB.C.’sGHGlegislation,twoofWestFraser’spulpmills(QRPandCPP)reportedtheir2010third-partyverifiedGHGemissionsin
thespringof2011.Their2011emissionswillalsobereported.
During2011 theCanadian government did not take any steps or announce any initiatives to regulateGHGemissions from forest
products. Canada continues to monitor regulatory developments in the U.S. and the government has stated that any regulatory
approachitdevelopswouldbesimilartoapproachesdevelopedbytheU.S.Atthistime,itisnotpossibletopredictinwhatformorwhen
CanadamayimplementaGHGreductionschemethatwouldaffecttheforestproductsindustry.
B.C.implementedacarbontaxonpurchasedhydrocarbonfuelsinJuly2008.ThetaxincreasedonJuly1,2011from$20to$25per
tonneofcarbondioxideequivalentemissionsandwillincreasebyanadditional$5onJuly1,2012.ThishasaffectedallWestFraser’s
B.C.divisions.The2012increaseisthelastincreaseundertheexistinglegislation.TheB.C.governmenthasnotannouncedanymore
increases in the tax but is assessing the possibility.
Non-compliances, Charges, Spills
TheB.C.MinistryofEnvironment (the“MoE”) issuedapollutionpreventionorder relating to theFraserLakesawmill’sstormwater
runoff.Inresponse,WestFraserdevelopedandimplementedaplantotreatthestormwaterrunoff.Astormwatertreatmentsystemwas
constructedandtheMoEissuedapermitforitsoperation.TheCompanyalsoreceivedtwoviolationticketsimposingfinesof$575each
foranincidentpriortothecompletionofthestormwatertreatmentsystem,whensomedischargedstormwaterwasfoundtobetoxic.
WestFraserandtheB.C.MinistryofNaturalResourceOperations(formerlytheMinistryofAgricultureandLands)areworkingtogether
to develop a remediation plan for a coal-washing waste pile on Vancouver Island. The Crown lease for the waste pile was owned for
manyyearsbyWeldwoodofCanadaLimitedwhichwasacquiredbytheCompanyin2004.Thewastepilewasformedinthelate19th
andearly20thcenturywhencoalminingwasasignificantindustryonVancouverIsland.
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0
20
40
60
80
100
Cariboo Pulp & Paper (%)
07 08 09 10 11 0
20
40
60
80
100
Hinton Pulp (%)
0
20
40
60
80
100
Alberta NewsprintCompany (%)
0
20
40
60
80
100
Slave Lake Pulp(%)
0
20
40
60
80
100
Quesnel River Pulp(%)
COMPLIANCE WITH TOXICIT Y REGUL ATIONS
0
5000
10000
15000
20000
Cariboo Pulp & Paper(kilograms per day)
0
2000
3000
4000
5000
6000
Hinton Pulp (kilograms per day)
0
1000
2000
2500
3000
3500
Alberta NewsprintCompany (kilograms per day)
0
1000
1500
2000
2500
3000
Slave Lake Pulp(kilograms per day)
0
200
400
600
800
1000
Quesnel River Pulp(milligrams per litre)
TOTAL SUSPENDED SOLIDS
5000 permit level
1000
19725 permit level
4868 permit level
1500
500
3500 permit level
3200 permit level
500
2800 permit level 938 permit level
655 permit level
616 permit level
0
2000
4000
6000
8000
Cariboo Pulp & Paper(kilograms per day)
0
1500
2000
2500
3000
3500
Hinton Pulp (kilograms per day)
0
1000
2000
2500
Alberta NewsprintCompany (kilograms per day)
0
1000
1500
2000
Slave Lake Pulp(kilograms per day)
0
100
200
300
400
Quesnel River Pulp(milligrams per litre)
BIOCHEMICAL OXYGEN DEMAND
3300 permit level
1000
7890 permit level
1500
500
2100 permit level
2000 permit level
500
1750 permit level
364 permit level
500
07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11
07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11
07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11
3088 permit level
0
20
40
60
80
100
Cariboo Pulp & Paper (%)
07 08 09 10 11 0
20
40
60
80
100
Hinton Pulp (%)
0
20
40
60
80
100
Alberta NewsprintCompany (%)
0
20
40
60
80
100
Slave Lake Pulp(%)
0
20
40
60
80
100
Quesnel River Pulp(%)
COMPLIANCE WITH TOXICIT Y REGUL ATIONS
0
5000
10000
15000
20000
Cariboo Pulp & Paper(kilograms per day)
0
2000
3000
4000
5000
6000
Hinton Pulp (kilograms per day)
0
1000
2000
2500
3000
3500
Alberta NewsprintCompany (kilograms per day)
0
1000
1500
2000
2500
3000
Slave Lake Pulp(kilograms per day)
0
200
400
600
800
1000
Quesnel River Pulp(milligrams per litre)
TOTAL SUSPENDED SOLIDS
5000 permit level
1000
19725 permit level
4868 permit level
1500
500
3500 permit level
3200 permit level
500
2800 permit level 938 permit level
655 permit level
616 permit level
0
2000
4000
6000
8000
Cariboo Pulp & Paper(kilograms per day)
0
1500
2000
2500
3000
3500
Hinton Pulp (kilograms per day)
0
1000
2000
2500
Alberta NewsprintCompany (kilograms per day)
0
1000
1500
2000
Slave Lake Pulp(kilograms per day)
0
100
200
300
400
Quesnel River Pulp(milligrams per litre)
BIOCHEMICAL OXYGEN DEMAND
3300 permit level
1000
7890 permit level
1500
500
2100 permit level
2000 permit level
500
1750 permit level
364 permit level
500
07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11
07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11
07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11
3088 permit level
0
20
40
60
80
100
Cariboo Pulp & Paper (%)
07 08 09 10 11 0
20
40
60
80
100
Hinton Pulp (%)
0
20
40
60
80
100
Alberta NewsprintCompany (%)
0
20
40
60
80
100
Slave Lake Pulp(%)
0
20
40
60
80
100
Quesnel River Pulp(%)
COMPLIANCE WITH TOXICIT Y REGUL ATIONS
0
5000
10000
15000
20000
Cariboo Pulp & Paper(kilograms per day)
0
2000
3000
4000
5000
6000
Hinton Pulp (kilograms per day)
0
1000
2000
2500
3000
3500
Alberta NewsprintCompany (kilograms per day)
0
1000
1500
2000
2500
3000
Slave Lake Pulp(kilograms per day)
0
200
400
600
800
1000
Quesnel River Pulp(milligrams per litre)
TOTAL SUSPENDED SOLIDS
5000 permit level
1000
19725 permit level
4868 permit level
1500
500
3500 permit level
3200 permit level
500
2800 permit level 938 permit level
655 permit level
616 permit level
0
2000
4000
6000
8000
Cariboo Pulp & Paper(kilograms per day)
0
1500
2000
2500
3000
3500
Hinton Pulp (kilograms per day)
0
1000
2000
2500
Alberta NewsprintCompany (kilograms per day)
0
1000
1500
2000
Slave Lake Pulp(kilograms per day)
0
100
200
300
400
Quesnel River Pulp(milligrams per litre)
BIOCHEMICAL OXYGEN DEMAND
3300 permit level
1000
7890 permit level
1500
500
2100 permit level
2000 permit level
500
1750 permit level
364 permit level
500
07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11
07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11
07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11 07 08 09 10 11
3088 permit level
West Fraser Timber Co. Ltd.
Tel:604.895.2700
Fax:604.681.6061
www.westfraser.com