To facilitate regulatory approval of Paper Excellence’s acquisition of Resolute, the Thunder Bay pulp & paper mill will be sold. In other Business news: a fire destroyed Verville Enterprises’ Timmins lumber mill; US new home sales fell back as mortgage rates rose; and Q3, 2022 results courtesy of: West Fraser Timber, International Paper, Acadian Timber and Goodfellow.
In Forestry/Climate news: Canada’s environment minister on the UN Biodiversity Conference in Montreal; Alberta’s new cabinet is panned by ENGOs; a positive wildfire season is reported by Quebec; the US Forest Service agrees to accelerate a redwood emergency action plan; and a biochar incinerator is tested in Missoula. Meanwhile, mass timber news from TimberCon; and wood-based plastics make headway in Sweden.
Finally, our apologies if you missed yesterday’s Tree Frog News due to our service provider being down. Click here or check out the WEEK AT A GLANCE section of our news page.
Kelly McCloskey, Tree Frog Editor
MONTREAL — Paper Excellence and Resolute Forest Products announced their intention to sell Resolute’s Thunder Bay pulp and paper mill to further facilitate the regulatory review process. On July 6, the Paper Excellence Group through its wholly-owned subsidiary Domtar entered into an agreement with Resolute to acquire all of the outstanding common shares of Resolute stock. …”This is a very hard thing to do, but we believe it is necessary in order to accelerate our strategic combination with the Paper Excellence Group,” stated Remi G. Lalonde, Resolute’s CEO. “The mill is an exceptional asset. Any sale of the Thunder Bay pulp and paper mill will be contingent upon closing of the announced acquisition of Resolute by Domtar, and to applicable regulatory approvals. The acquisition of Resolute by Domtar continues to be expected in the first half of 2023, following stockholder and regulatory approvals.
VANCOUVER, B.C. – West Fraser Timber reported today the third quarter results of 2022. Sales were $2.088 billion, compared to $2.887 billion in the second quarter of 2022. Third quarter earnings were $216 million compared to $762 million in the second quarter of 2022. Third quarter Adjusted EBITDA was $426 million compared to $1,124 million in the second quarter of 2022. “West Fraser generated solid financial results in the third quarter of 2022 and returned more than $200 million of capital to shareholders through share repurchases and a quarterly dividend. Ray Ferris, West Fraser’s CEO said, “We saw considerable improvement in the transportation challenges that had impacted our business earlier this year. However, ongoing inflationary cost pressures and slowing demand for many of our key products impacted our financial results this quarter.
Mortgage rates topped 7 percent this week, the highest level in 20 years — and the latest sign that the Federal Reserve’s aggressive moves to slow the broader economy are hitting the housing market hard already. The average rate for a 30-year fixed mortgage, the most popular home-loan product, reached 7.08 percent, according to data released Thursday by Freddie Mac. The last time mortgage rates climbed so high was April 2002, and they are slated to keep climbing as the Fed moves swiftly to tame a red-hot housing market, a key step in lowering rent costs and ultimately quelling inflation in the broader economy. …Demand for mortgages has also plummeted as quickly as rates have spiked. Total application volume is at its lowest level since 1997, according to the Mortgage Bankers Association.
The similarities between the fires now and then are uncanny, as described in my book 
The Province has convened a new advisory council in support of forestry workers and communities. …”
Months of record-breaking dry weather have set B.C. up for the perfect storm, the province’s power supplier is warning. BC Hydro says drought-stricken trees are far more likely to become uprooted or snap in half as the windy season picks up. As a result, British Columbians could be facing more serious power outages this fall and winter than in a typical year. BC Hydro’s meteorologist is predicting “a greater likelihood for substantial damage this storm season,” according to a Wednesday (Oct. 26) news release. “Trees that have been impacted by the drought will not show immediate visible effects. However, drought conditions have impacted the small structural roots that provide trees with stability, making them more susceptible to wind of any speed,” BC Hydro says.
The Oregon Board of Forestry has approved more than 100 changes to the Forest Practices Act. The rule changes are a result of the Private Forest Accord (PFA) that brought together representatives from conservation groups and the timber industry. The changes will impact timber harvest activities on more than 10 million acres of private and non-federal forests in the state. “The rules we adopted are just one of a great many changes coming from the Private Forest Accord that will advance how Oregon protects its natural resources and responds to the climate change crisis, while also providing some stability for the communities and economies that rely on the forest products industry,” Oregon Board of Forestry Chair Jim Kelly said. …The goal of the PFA and the Forest Practices Act rule changes is to provide long-term certainty to industry while providing enhanced protection to critical aquatic species.
Forest Service Chief Randy Moore has denounced the arrest by an Oregon sheriff of a Forest Service employee after a planned burn in a national forest spread onto private land. The criticism by Moore was followed by a statement from Grant County District Attorney Jim Carpenter in which he defended the arrest of a U.S. Forest Service “burn boss” on allegations of reckless burning. …Sheriff Todd McKinley occasionally briefs Carpenter on the case, the prosecutor said. Once it’s completed, “a decision will be made as to whether a charge will be made or not,” Carpenter said. Burn Boss Randy Snodgrass told the local Blue Mountain Eagle newspaper that his arrest by McKinley disrupted the chain of command while the Forest Service crew was conducting the prescribed burn in the Malheur National Forest. …Snodgrass said, “[the sheriff] put not only my guys at risk, but he put that land at risk.”
A first-of-its-kind
The U.K. government on Oct. 25 announced it will implement a 12-month suspension of certain fuel quality requirements for domestic and non-domestic Renewable Heat Incentive scheme participants using wood pellets to help ensure adequate fuel supplies this winter. The U.K. Department for Business, Energy and Industrial Strategy opened a public consultation on its proposal to temporarily suspend certain fuel quality requirements for RHI participants using wood pellets. The suspension aims to ensure adequate wood pellet supplies following supply disruptions associated with Russia’s invasion of Ukraine. …While the use of non-ENPlus pellets could have some short-term negative impact on fuel efficiency and air quality, the BEIS said those impacts have been deemed as acceptable so that homes heated by biomass do not experience significant price rises or a lack of fuel supply this winter.