Daily News for June 01, 2021

Today’s Takeaway

Construction boom is coming despite high material prices

June 1, 2021
Category: Today's Takeaway

A construction boom is coming despite skyrocketing material prices, although the US Fed fears the inflationary implications. In related news: US jobs depend on Canada— its #1 trading partner; supply and demand tightens in the UK; and NRCan releases State of Mass Timber 2021 report. Meanwhile, Paper Excellence seeks surety to reopen the Prince Albert pulp mill, while its acquisition of Domtar has an analyst asking market questions.

In First Nations/Forestry news: the BC First Nations Forestry Council honours National Indigenous History Month; FSC endorses the First Nations Forest Strategy; solidarity builds for Indigenous claims at Fairy Creek; and a new video on First Nation reconciliation within forestry. Meanwhile, more protesters antics at the old-growth blockades, and how cutting down trees can help tackle climate change.

Finally, the use of old-growth timber hits a sour note in the music industry.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Millions of U.S. jobs depend on the Biden administration respecting America’s No. 1 trade partner — and it’s not China

By Paul Brandus
Market Watch
June 1, 2021
Category: Business & Politics
Region: Canada, United States

If Canadians could have voted in the U.S. presidential election, Joe Biden would have beaten Donald Trump by an even bigger margin than he did. …Biden has pleased our neighbor to the north in several ways so far, including re-entering the Paris climate accord. …Yet don’t think it’s all kumbaya between the two countries. Biden and others already have done a few things to irritate Canada — the biggest market for exports of U.S. goods and services. …Trump slapped steep tariffs on softwood lumber in 2017, before lowering them in December 2020.  But not only has Biden not removed them, he’s now proposing to double them to more than 18%. Aside from irritating Canadian lumber producers, Biden’s proposal has caused the normally diplomatic NAHB Chairman, Chuck Fowke, to lash out at the administration. 

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With Domtar Acquisition, Paper Excellence Expands Presence in NA Market

By Tedd Powers
The Paper Advance
May 31, 2021
Category: Business & Politics
Region: Canada, United States

The post-COVID global landscape continues to shift in a number of new directions within the pulp and paper industry – some expected, some unexpected. The accelerated decline of the printing and writing (P&W) segment, for instance, is no surprise. However, while M&A and consolidation activity can largely be expected during transitional periods, new opportunities are prompting some ambitious moves. Most recently, BC-based Paper Excellence (PE) announced that it is in the process of acquiring South Carolina-based Domtar. Post-acquisition, Paper Excellence intends to retain the pulp and paper mills operated by the former Catalyst Paper as well as those belonging to Domtar. …This move raises a number of questions for North American companies operating in a few key segments as Paper Excellence expands its mill portfolio. …If PE allows Domtar to continue on its path of converting P&W assets to containerboard, how will the market absorb all of this new capacity?

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Paper Excellence wants surety amid longer term timber supply questions

By Alison Sandstrom
Prince Albert NOW
June 1, 2021
Category: Business & Politics
Region: Canada, Canada West

PRINCE ALBERT, Saskatchewan — Amid hints of an impending boom in the Prince Albert and area forestry sector, concerns over timber supply and who’s allowed to harvest it remain. …Paper Excellence, the company that bought the shuttered Prince Albert pulp mill in 2011… has announced its intention to reopen the mill in 2023, but says it needs assurance it’ll have access to wood in the long term in order to do that. “We’re making a very, very large investment into the restart of that facility,” Graham Kissask, Paper Excellence VP said. “And we need surety of fiber flow in the long term to give us confidence that it makes sense to spend that money.” …Meanwhile Minister Bronwyn Eyre said the government wants “all workable projects to move forward and thrive,” but …If Paper Excellence does not reopen the mill by December of 2021, its timber allocation will be available to other projects.

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Finance & Economics

A Construction Boom is Coming Despite Skyrocketing Material Prices

By Les Shaver
GlobeSt.com
June 1, 2021
Category: Finance & Economics
Region: Canada, United States

While rising costs have canceled some construction projects, CBRE says 2021 will still see a boom in new commercial real estate development. This is not to discount surging prices, which have resulted in domestic steel and lumber prices tripling since last year, according to  SteelBenchmarker and TradingEconomics. Things have moderated some in May. After peaking at $1,686 per thousand board feet on May 7, lumber prices dropped by 23% to $1,306 on May 19. …“Material cost growth is expected to outpace all other elements of construction cost increases this year,” says Henry D’Esposito, JLL’s senior research analyst. …Residential development spending is at 95% of commercial real estate development, according to CBRE. By comparison, in 2009, it was just 36% of commercial spending. “With thriving single-family home markets across the US seeing even more new development and permit authorizations in 2021 at a 10-year high, this trend shows no sign of reversing,” according to CBRE.

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Lumber Futures: The Taming Of The Inflation Shrew

By Douglas Adams
Seeking Alpha
May 31, 2021
Category: Finance & Economics
Region: Canada, United States

Commodity prices have soared in YOY comparisons. Oil, copper, corn, soybean, and energy futures are all running about twice 2020 levels to date. July 2021 random length lumber options have more than quadrupled YOY. …While lumber future prices have fallen over the past week, future prices will likely stay above $1,000/thousand board feet through the end of the year. …The biggest challenge for the US economy… is precisely the growing number of industries that are now muddling through supply and demand shocks to their productive processes – simultaneously. …The Fed’s greatest fear comes with relative price increases bleeding into inflation expectations, increasing the drumbeat of popular pressure for the Fed to act. The risk is a double-edged sword since an inflation scare could cause policy makers to pull back on its support for the economy too aggressively, choking off the recovery progress to date.

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Timber industry warns of major shortages in Q3 2021

Planning, BIM & Construction Today
June 1, 2021
Category: Finance & Economics
Region: International

The Timber Trade Federation (TTF) has warned of major challenges ahead for timber users in Q3 2021, as the balance between supply and demand continues to tighten. Recent communications from Sweden, who supply almost half of the structural wood that is used in the UK, have warned that current stock levels are at their lowest in over 20 years – despite record levels of production from the Swedish sawmill industry. The supply and demand balance for structural wood for Q2 2021 means that almost all wood arriving in the UK has been presold to customers. Despite strict allocations, most buyers are already unable to purchase all the timber they want for their business. …TTF technical and trade manager, Nick Boulton, said: “As we enter July, sawmills and wood production facilities in Sweden and other European countries start to close for essential summer maintenance, and this will significantly reduce the available supply of structural wood for the UK.

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Wood, Paper & Green Building

Preserved Wood: Deck Specification and Use

Wood WORKS! BC
June 1, 2021
Category: Wood, Paper & Green Building
Region: Canada

Just in time for deck season! Our June event is hosted with Wood Preservation Canada and Western Wood Preservers Institute. Join us for an introduction to Preserved Wood with Dallin Brooks! In applications where wood may be exposed to moisture, insects or fungal organisms, preservative-treated wood can help ensure durability and safety. In this webinar, participants will learn about the manufacturing process for pressure-treated wood, available products and their differences, and how preserved wood is used in construction. Join us for the upcoming Wood Webinar Wednesday on June 16. Register today!

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The Government of Canada invests in plastics science research to further understand environmental threats

By Environment and Climate Change Canada
Cision Newswire
May 31, 2021
Category: Wood, Paper & Green Building
Region: Canada

GATINEAU, Quebec — The Government of Canada is committed to achieving zero plastic waste by 2030, and is working to take action to reduce plastic pollution across the country and to create a circular economy for plastics. …Minister Jonathan Wilkinson, and Minister François-Philippe Champagne, announced that the Government of Canada is providing close to $7 million to support seven science-based research projects. …Among the selected projects are those being carried out by UBC, which aims to advance technologies to quantify and characterize microplastics in aquatic environments; the National Institute of Scientific Research, which will assess the potential effects of nanoplastics on human health; and the University of Guelph, which will assess potential risks that microplastics pose to freshwater and soil ecosystems.

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Building a Greener Future with Mass Timber

By Judi Beck, PhD, RPF, Director General Pacific Forestry Centre
Natural Resources Canada
June 1, 2021
Category: Wood, Paper & Green Building
Region: Canada

On May 26, the Green Construction through Wood program (GCWood) officially announced the inaugural release of a solid new publication: The State of Mass Timber in Canada 2021 (SMTC). The SMTC is the first report of its kind in Canada, providing a glimpse into market trends in the mass timber sector. Using information from a wide range of industry professionals and government agencies, it demonstrates the value of building with wood to builders and designers. The report establishes a baseline data set for mass timber construction and manufacturing, and provides key information and analysis on the growing market. This data helps inform policymakers in the decision making process. The SMTC also aims to help industries invest in mass timber, helping to grow the bioeconomy. In addition to detailing the history of mass timber construction in Canada and the emergence of engineered wood products, the report highlights domestic mass timber building projects and production capacity across the country.

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Why can’t this massive wood pile in central Newfoundland be recycled?

By Garrett Barry
CBC News
June 1, 2021
Category: Wood, Paper & Green Building
Region: Canada, Canada East

Central Newfoundland’s regional waste authority has begun burying thousands of tonnes of wood products at its dump, after years searching for ways to recycle the material. …It will be buried in a rock quarry, alongside an additional 20,000 tonnes that’s already on site. Roughly 4,000 more tonnes will be added to the pile each year. While that wood pile looks massive, there’s a problem: The waste management group says there’s not enough good product inside it to find another use. Edward Evans, head administrator at Central Newfoundland Waste Management, said, “unfortunately, the material has been stockpiled for in excess of 12 years now and a lot of material has gone to a sawdust or rotting down, broken down.” …Though the wood is being covered with about three feet of fill, Evans said it will still be accessible if market forces change or if someone shows an interest in processing some of the fibre.

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Use of Old-Growth Timber Hits a Sour Note in the Music Industry

By Chris Gibson and Andrew Warren
The Tyee
June 1, 2021
Category: Wood, Paper & Green Building
Region: United States

Musicians are often concerned about environmental problems, but entangled in them through the materials used in their instruments. The guitar industry, which uses rare woods from old-growth trees, has been a canary in the coal mine — struggling with scandals over illegal logging, resource scarcity and new environmental regulations related to trade in endangered species of trees. We spent six years on the road tracing guitar-making across five continents, looking at the timber used — known in the industry as tonewoods for their acoustic qualities — and the industry’s environmental dilemmas. …Attachments to “traditional” instrument woods have prevented heritage brands from switching to more sustainable options. …But attitudes are shifting. Musicians are increasingly concerned about the provenance and environmental impact of their instruments, encouraging guitar brands to improve transparency and rethink their ecological entanglements.

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Forestry

FSC Canada’s endorsement of the BC First Nations Forest Strategy a step forward

By Monika Patel, Director of Program and Communications, FSC Canada
Wood Business – Canadian Forest Industries
May 31, 2021
Category: Forestry
Region: Canada

In 2019, the Forest Stewardship Council introduced a new national standard for responsible forest management – a commitment to ensuring Canada’s forests meet the social, ecological and economic needs of present and future generations. Those needs are no more paramount than those of our Indigenous peoples, who are still fighting for inclusion in decisions around the use of their traditional territory. …FSC’s new forest management standard enhances and clarifies the need for Free, Prior and Informed Consent, a key requirement of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), and compels all stakeholders to uphold these rights. …In May 2019, the BC First Nations Forestry Council released a Forest Strategy… to implement UNDRIP and modernize government-to-government relationships. …Both the Forest Strategy and FSC’s new standard are based on the principles of shared responsibility and collaborative approaches.

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Solidarity builds for Indigenous claims over Fairy Creek watershed on Vancouver Island

By Nora O’Malley
Ladysmith Chemainus Chronicle
May 31, 2021
Category: Forestry
Region: Canada, Canada West

Disputes over a block of Crown land known as Tree Forest Licence 46 …erupted on May 29 as more than 2,000 Save Fairy Creek supporters made the journey to the Fairy Creek HQ. …Pacheedaht elder Bill Jones says his Nation is split: half want to reclaim TFL 46 and save the old growth while the other half want to uphold a Revenue Sharing Agreement Pacheedaht First Nation holds with the Province of British Columbia signed in October 2020 by elected Chief Jeff Jones. Under the agreement, the First Nation receives a percentage of the stumpage revenues from all timber cut by tenure holders like Teal Jones. Bill Jones would rather see TFL 46 turned into a memorial park. …Shawn Hall, communications liaison for Teal Jones, said the company continues to engage in constructive dialogue and acknowledge the Ancestral Territories of all First Nations that encompass the Tree Farm Licence, including the Pacheedaht and Ditidaht First Nations.

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Self Determination

BC Forestry Alliance
June 1, 2021
Category: Forestry
Region: Canada, Canada West

Our new video titled “Self Determination” focuses on real First Nation reconciliation within forestry. 

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City-owned forestry business has allowable cut renewed

By Jocelyn Doll
Revelstoke Review
May 31, 2021
Category: Forestry
Region: Canada, Canada West

While protesters gather across the province shouting for protection of ancient trees on Vancouver Island, the Ministry of Forests has approved the continued harvesting of old-growth forest north of Revelstoke. Tree Farm Licence 56 was granted a 90,000 cubic metres annual allowable cut on May 4, the same level that was set in Sept. 2010. The licence is shared by the Revelstoke Community Forestry Corporation and BC Timber Sales. RCFC, which is partially owned by the City of Revelstoke, harvests roughly 200 hectares a year. Mike Copperthwaite, general manager said the trees they harvest are probably 300 to 400 years old. …Companies forecast 300 years into the future, and Copperthwaite said they are projecting their licence to be able to support a higher allowable cut 80 to 100 years down the road because the trees they replanted are growing back better quality.

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Hundreds of protesters flood back into old-growth blockade camps cleared by RCMP

By Kieran Oudshoorn
CBC News
May 31, 2021
Category: Forestry
Region: Canada, Canada West

In the middle of the woods, 20 kilometres from a police barricade, sits a man in a boat in a tree. …He and others hauled the boat approximately 12 metres off the ground into the tree, which Lou says is a mountain hemlock, using ropes and pulleys. Since RCMP began enforcing the injunction on May 17, officers have arrested 142 people for breaching the injunction or for obstruction. Nine people have been arrested more than once, according to police. …CBC has requested an interview with the provincial government about the blockades six times since May 25. Each time, the province has declined. …Due to a combination of police and activist blockades, the camp is only accessible on foot, meaning all supplies must be carried up remote logging roads with gruelling grades.

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RCMP arrest all but one at Waterfall blockade, protesters take it back next day

By Zoe Ducklow
Saanich News
May 31, 2021
Category: Forestry
Region: Canada, Canada West

The people working to stop old-growth logging on southern Vancouver Island are using inventive tactics, determination and sheer numbers to prevent the RCMP from removing them from the various blockades in the forests. On Friday, RCMP arrested most people stationed in and around the Waterfall blockade, except for one. He was in what the organizers have dubbed a flying dragon: a cantilever position where the person was sitting at the end of a plank suspended over a steep drop. The other end of his plank was held in place by the weight of his car. …RCMP Sgt. Kris Clark, said the exclusion zones are necessary for safety purposes since it’s an active worksite. When asked why the RCMP were allowing the public to stay, Clark looked at the crowd of people, which he estimated to be between 700 and 1,000, and said, “I think you can infer why.”

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National Indigenous History Month: BC Forestry and First Nations as Full Partners

BC First Nations Forestry Council
June 1, 2021
Category: Forestry
Region: Canada, Canada West

Vancouver, BC — To honor National Indigenous History Month, the BC First Nations Forestry Council is launching an awareness campaign to bring into focus the BC First Nations Forest Strategy and the six goals informed by direct input of First Nations for over a decade. “BC First Nations have endorsed the six goals identified within the Forest Strategy,” tells Charlene Higgins, CEO of the BC First Nations Forestry Council. “It’s time for Government and Industry to acknowledge and implement them; it’s time for us to move forward.” The Forest Strategy reflects the principles of UNDRIP and was developed to support government-to-government relationships between the Province and First Nations to increase the role Indigenous Nations play in the governance and stewardship of forest lands and resources. “The Forest Strategy and Implementation Plan were released in 2019, but the Province still hasn’t fulfilled their commitment to action or endorsing either,” says Higgins.

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Environmental protesters rally outside Surrey mill

By Tom Zytaruk
Surrey Now-Leader
May 31, 2021
Category: Forestry
Region: Canada, Canada West

Roughly 100 protesters gathered outside a Surrey saw mill Sunday afternoon to protest against the logging of old growth forests in B.C. …“There was good representation from Surrey for sure,” said Allison Richardson, leader of Surrey for Future. Protesters came from all over the Lower Mainland, representing climate justice groups like For Our Kids, Force of Nature, Babies for Climate Action among others. …Richardson said she expects protests to also be staged at MLAs’ offices across the province. Surrey for Future was planning Monday to deliver “a demand to introduce an immediate moratorium on old-growth logging” to Surrey-Newton MLA Harry Bains’ constituency office. …She said the provincial government is failing to offer support to transition loggers to “more sustainable” employment. “The government is ignoring them too.

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Forest tech students from Algonquin College in Pembroke plant tens of thousands of trees in Algonquin Park, Nipissing Forest

Pembroke Observer News
May 31, 2021
Category: Forestry
Region: Canada, Canada East

Twenty-three students in Algonquin College’s Forestry Technician Program recently planted 30,000 trees in Algonquin Park and the Nipissing Forest. The trees are a living memorial, each planted in memory of someone who recently passed away. The project was sponsored by the Ontario Woodlot Association, the Canadian Institute of Forestry, Friends of the Petawawa Research Forest, Nipissing Forest Management Inc. and the Algonquin Forestry Authority. The trees included white pine, red pine and white spruce seedlings. As a thank you to the students, a $5,000 donation was made to Algonquin College in support of the Forestry Technician program.

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How a skilled workforce will improve the environment

By House Committee on Natural Resources Ranking Member Bruce Westerman (R-Ark.) and U.S. Rep. Russ Fulcher (R-Idaho)
The Spokesman-Review
June 1, 2021
Category: Forestry
Region: United States

The two main benchmarks of environmental health are clean air and clean water. Healthy forests are critical for both. Unfortunately, years of catastrophic wildfires across the western United States have decimated many of our forests, turning critical wildlife habitats into ash and making it more difficult for trees to regenerate naturally. To solve this problem – and prevent severe wildfires from happening in the first place – requires scientific forest management, coupled with aggressive reforestation goals. In turn, these efforts require a reliable, skilled workforce. This is why we’ve introduced The Forestry Education and Workforce Development Act. Workforce expansion is critically important all across the reforestation spectrum, from seed collection and nursery production, to designing new reforestation projects, site preparation, tree planting and postplanting activities. The Forest Education and Workforce Development Act will provide a steady supply of skilled and reliable workers to meet the enormous reforestation challenges facing America.

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Merkley forest plan has merit

The East Oregonian
June 1, 2021
Category: Forestry
Region: United States, US West

Oregon voters should feel pretty good about U.S. Sen. Jeff Merkley’s ideas on forest management, concepts he discussed last week. Merkley wants to push the Biden administration to spend at least $1 billion per year for logging, proscribed burns and other work to get the tinderbox forests of the state in shape to withstand disease and uncontrolled blazes. Forest management are the key words Merkley used, and we hope that is exactly what happens. Forest management is not closure of forests. It does not mean blockading vast tracts of forest land to watch it die and then become kindling for another massive fire. Instead, Merkley seems to back a cooperative concept where traditional rivals — such as the timber industry and conservation groups — work together to help forests.

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Policymakers are banking on trees to cut carbon. Forest experts say Virginia needs more seedlings.

By Sarah Vogelsong
The Virginia Mercury
June 1, 2021
Category: Forestry
Region: United States, US East

…Policymakers and companies both nationwide and in Virginia are banking on trees as a vital component of achieving net-zero emissions. Forests, with their carbon sequestration possibilities, are one of the most powerful ways officials have to offset the carbon that will continue to be pumped out as fossil fuels linger and in some industries like steelmaking remain a fixture. …“What’s become painfully obvious is there’s just not enough hardwood seedling capacity out there,” said Chandler Van Voorhis, co-founder and managing partner of ACRE Investment Management, a conservation finance investment firm headquartered in The Plains, Va. “There’s plenty of pine, but pine’s not what people are looking for.” …Virginia isn’t alone in the potential it sees for the tree seedling industry. One joint study by American Forests and the Nature Conservancy identified 133 million acres that would be suitable for reforestation for carbon capture

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Carbon, Climate & Bioenergy

UK, Indonesia lead global efforts to increase sustainable trade and protect forests

By Zack Goldsmith and Alue Dohong
The Jakarta Post
June 1, 2021
Category: Carbon, Climate & Bioenergy
Region: International

…The world’s forests are fundamentally important for the lives and livelihoods of hundreds of millions of people around the world. …The scale of the crisis demands urgent global action, and so as President of this year’s all-important UN Climate conference COP26, the UK has put nature at the heart of its response to climate change. There is no reliable pathway to… meeting the UN Sustainable Development Goals by 2030 without protecting and restoring nature on an unprecedented scale, and that means conserving forests and shifting toward sustainable agricultural land use. As part of those global efforts, the UK launched the Forest, Agriculture and Commodity Trade (FACT) Dialogue to try to forge a consensus among diverse nations on a plan of action that both protects forests and livelihoods, that delivers sustainable land use and promotes trade and development.

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Cutting Down Trees Can Help Save Climate in Forest Industry Math

By Jesper Starn
Bloomberg News in the Financial Post
June 1, 2021
Category: Carbon, Climate & Bioenergy
Region: International

Sweden’s forest industry has prepared a defense against critics who say trees should be left in the forest to bind carbon and help fight climate change. At the heart of the conflict is the European Union’s need to regulate sustainable activities across the bloc, where forest-based carbon sinks are on average declining, in net terms. That has prompted concerns that forestry accumulates a so-called carbon debt because trees take several decades to grow back. In densely forested Sweden, the industry is keen to show trees are, overall, sequestering more carbon dioxide than is released. …pulp, packaging and timber companies, commissioned a study that shows a bigger climate benefit from cutting trees than reducing or halting harvests. The math in the report centers on displacement effects: fossils can be left underground if wood is used to replace such materials, resulting in smaller carbon dioxide emissions than keeping forests intact but using materials such as plastic instead.

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Forest Fires

Klamath County wildfire grows to 650 acres; no containment but 80% lined

By Barney Lerten
KTVZ News
May 30, 2021
Category: Forest Fires
Region: United States, US West

BEATTY, Ore. – A wind-driven wildfire that broke out Sunday 20 miles north of the Klamath County town of Beatty, prompting a Level 2 (Be Set) evacuation order for residents of Sycan Forest Estates, has grown to 650 acres but is mostly lined, officials said Monday. It was the second Southern Oregon fire to prompt evacuation alerts this Memorial Day weekend. Meanwhile, a new fire, the Yellow Jacket Fire, was reported Monday afternoon and had burned 15 to 20 acres on state Department of Forestry-protected land about four miles south of Beatty. The fire was burning in juniper mixed with Ponderosa pine. Several structures were threatened, but there were no evacuation orders in place. The cause was under investigation.

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