rates in B.C.; one for coastal regions and the other for the interior regions of the province. The Value Index of each appraised timber stand on the coast, for examnle, is calculated and com- pared to the average of the Value Indexes of all stands on the coast. And this brings us to the next term — Mean (average) Value Index. Mean Value Index (MVD): The Mean Valuc Index is the volume- weighted factor in the formula. Basically, this is the average of the Value Indexes for all licensed areas calculated under the Com- parative Value system on which harvesting has taken place during the preceding 12 months. Accord- ing to the ministry, this is “the benchmark against which indivi- dual stands of timber are com- pared" The Mean Value Index for the coast (and separately for the- interior) is re-calculated quarterly by the Valuation Branch by divid- ing the sum of the products of the Value Index and the volume of each licence in the region, by the total volume of ali licences in that same region. Confused? Don’t worry about it. The ministry does the calculation; the logger simply pays the bill. And besides, not everyone is affected by the Mcan Value Index anyway. Only Tree Farm Licences, Forest Licences, Watershed Licences and Timber Sale Licences with an annual allowable cut of more than 10,009. cubic metres are included. And a’ ‘specific licence is not included unless 1,000 cubic metres or more has been billed in the preceding 12 months. So this . calculation affects only about 500 licences on the coast and 2,000. licences in the interior. © let’s get back to the S stumpage rates. On 92 r percent of our forested Crown land, the Indicated (stum- page) Rate is a sel. amount in dollars per cubic metre of timber, and is calculated by adding the Base Rate to the difference between the Mean Value Index and the Value Index. In other words, IR = BR+{MVI-VI). The indicated. price, then, for. each individual stand of timber on the coast or in the interior depends on whether the value of that stand is greater or less than the average coast or interior Base Rate. But we're not quite finished yet. This is only the Indicated Rate. : Firat, there is a minimum rate. - Stumpage cannot be less than 25 cents per cubic metre — a value which is called the Prescribed Minimum Rate — without an Order-in-Council. So the Indicated ‘A8 Terrace Review — Wednesday, October 10, 1990 Forestry Insights — the Bonus Bid, finally, is called the _ Final Charge; or, what you and I might call the stumpage rate. Just for a little added confusion: in the interior, Reserve Rates over $14 per cubic metre are reduced by one-half the amount exceeding $14 per cubic metre; a procedure known as “half-capping". And there are other things that play on the Final Charge. Market Indexing and Quarterly Adjust- ments ensure that prices charged for timber under the Contparative Value system are market-respon- sive. Levies come into play in the Small Business Forest Enterprise Program (Small Business Program) to compensate for the fact that big licence holders have to pay their own silviculture and road building costs, while the Crown pays these costs for stands logged under the ‘Small Business Program. As another point of interest, the actual tate calculated by all the formulae above applies to the “atand-as-a-whole", In other words, the price is determined for all appraised timber on the site, ir- respective of species, and doesn’t reflect the real value an individual tree. And a final note: to all rules there are exceptions, and the Com- parative Valuc system is no dif- ferent. The system applies to all timber in the province, except chipper grade logs, fence posts, shake blocks and harvested deci- duous (leafy) species. For these, er Continued from page A7 rates are set in “the appropriate appraisal manual", For reject (in- terior) and chipper grade logs (coastal) this rate is set at 25 cents per cubic metre. Cedar shake blocks, fence posts, orchard props, deciduous species, and a few other items are set at rates varying from 50 cents to $7.20 per cubic metre. till confused? Don't worry about it. Uniess you're a rocket scientist or Philadel- phia lawyer there is no shame in | your bewilderment. So don't panic. Stumpage rates and other financial wizardry that govems the forest industry in our province will become more clear over the next few weeks, We'll begin by looking at some of the pros and cons of both the Comparative Value and old Rothery sysiem next week. And then we'll join Milton M. Jovial of New York in his bid to log B.C. forests and make an honest (most- ly) dollar while he’s at it. Will he succeed? At this point, we're not ‘Teally sure. Taproot to treetop Stump to dump You'll find the best - | foresiry coverage in the | region in the pages of . the Terrace Review Uf you wish to announce the birth of YOUR baby, pleose fill out the form aveilable in the maternity ward ct Mills Memorial BRAGANZA — Peter Braganza and Noriko Shiga are proud to announce the birth of daughter Hikari Shiga on Sept. 28, 1990, weighing 6 Ibs. 1142 oz. BULLEID — Ray and Vikki are pleased to announce the birth of daughier - ji | Rianna Michele on Sept. 26, 1990 at 10:27 p.m., weighing 9 Ibs. 1 oz. DALY — Andre and Kim are the proud parents of daughter Miranda Leslie Lynn, born Oct. 4, 1990 at 5:30 p.m., weighing 7 Ibs. 7 oz. A little sister for Brian and Tyler. DOWSE — Rober: and Elizabeth are proud to announce the birth of son James Stuart on Sept. 30, 1990, weighing 10 Ibs. 12 oz. FUR3400 — Mario and Liz are pleased to announce the birth of daughter Christina Elizabeth Soares Furtado on Sept. 23, 1990, weighing 7 Ibs. 3 02. KAISER — Rob and Karen are: the proud parents of daughter Melissa, born | Sept. 28, 1990 at 6:35 p.m., veighing 7 lbs. 6 oz. LAMEE/POWERS -—— Rusvell Lamke and Carmen Powers are proud to an- nounce the birth of daughter Kayla Rose Mary Lamke on Sept. 30, 1990 at 9:28 p.m., weighing 7 Ibs. 7 az. - WAHL — Robert and Chery! are pleased to announce the birth of daughter . Sarah Marie on Sept. 28, 1990 at 7:09 a.m., weighing 7 ibs. 13 oz. FLOWERS A LA CARTE SKEENA MALL “EXPECT THE EXTRAORDINARY” WE DELIVER (635-4080) 12-4741 LAKELSE, TERRACE | , Ket: After Stora Hours 638-1964 / Taiex oavessan [EH | TERRACE FLOWERS . Timing of Your Response | Regional Workshops The Next Steps Rate is compared to the Prescribed § Minimum Rate and the higher of ] , the two is selected, This is called Sm the Reserve Rate. The ministry than adds to the fa Reserve Rate any cosis they might & have, or expect to incur, in order to determine the Upset Price, the lowest number of dollars per cubic . metre they are willing to accept. If a logging company puts in a bid larger than the Upset Price, the difference is called the Bonus Bid [| and the sum of the Upset Price and The Options Paper - We Want Your Input The Forest Resources Commission has just released its Options Paper for public review and comment. The Options Paper presents five major themes resulting from the Community Meetings last spring: land use planning, forest resource management, public involvement, economics, and education. The Options Paper is currently being mailed to those who submitted a brief to the Commission or participated in those meetings. if you did not participate earlier, you now have the opportunity to do so. If you are interested in reviewing and responding to the Options Paper, please write, phone or fax the Commission to request a copy. ‘The Commission needs your written response by November 14, 1990. A stamped, addressed response card is enclosed with the Options Paper. The Commissioners are also i inviting many of those who submitted briefs or made presentations to attend. regional workshops in. - - October and November, 1990. These workshops will be held in Parksville, Vernon, Creston, 108 Mile House, Prince George, Terrace and the Lower Mainland. The purpose of these workshops is to allow detailed discussion from a wide range of interest groups in a two-day workshop setting. The workshop process, along with the public response to the Options Paper, will make sure the Commissioners have heard and interpreted the public accurately, and will help identify preferred options, identify implications of these options, and develop local and regional implementation strategies. All public responses to the Options Paper and the results of the Regional Workshops will be reviewed by the Commissioners. A newsletter will be prepared outlining the results of both the workshops and public response to the Options Paper. In J anuary, 1991, the newsletter will be sent to all those who participated. The final Forest Resource Commission report, including all recommendations, will be presented to government early in the new year, and will be available to the public 30 days later. a i