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SIERRA PACIFIC INDUSTRIESc7f'l'`Z'
421 S. Front St. • Shelton,WA 98584 • (360) 427-8200 • Fax (360) 427-8219 Or fuv
September 7, 2023
Board of Natural Resources
P.O. Box 47001
Olympia,WA 98504-7000
Re: Timber sale impacts
Dear Board Members
I wanted to share with you some information that I presented to the Clallam County Board of
Commissioners. Last week they had a work session to learn more about the interrelatedness of the
timber industry and the impacts to the local economy of that industry.
Attached is what I presented to the Commissioners related to a single timber sale that Sierra Pacific
Industries purchased in Clallam County called the Pyramid Peak Timber Sale. We are still currently
operating the timber sale, but getting near completion which we anticipate finishing delivering logs later
this month.
The following are some key workforce and economic factors and community impacts associated with
this sale:
• Even though Sierra Pacific was the purchaser,we sent logs to quite a few other destinations.
This is typical of all timber sales as each mill in the area has different log needs. In the case of
the Pyramid Peak sale to date,we have delivered/sold logs to seven different mills.
• Through August 15, 2023,the bid value of the timber sale was about 27%of the timber sale
costs. When the sale is done logging and shipping,the bid price on the timber sale($1,751, 359)
will be close to just 20%of the economic activity generated by the timber sale activities (stump
to original mill destination through Aug. 15 was$6,547,718). When also incorporating the
milling costs,the residual sales, and then where the finished lumber or plywood contribute to
the built environment,the actual timber sale bid price will be well under 10% of the economic
activity generated when all is said and done.
• There are hundreds of jobs that are impacted by each timber sale. There are 1,217 employees
at the various mills where logs were delivered. The logging contractor, road builder and hauling
contractors also account for another approximately 30 positions. The log yards at the Port of
Port Angeles and Everett as well as the barge company and the tugboat crew add another
approximately 15 jobs. Looking at only the SPI employees,the average wage for all SPI
employees in 2022 was approximately$84,000 per year. These are good paying jobs with a
good benefit package. These are what sustain the rural communities and form the backbone of
the communities, real estate values and tax base where these timber sales are sold.
• Each one of the employees affected are also contributing to the tax base of the counties and
cities they live in. When the DNR fails to sell their calculated Sustainable Harvest level as they
have done the last couple of years, it has a major impact on families and communities. For
example, Port Angeles Hardwoods recently reduced their operating footprint from two shifts to
one shift.
Page 2
• While mill operating costs are not included as that is proprietary information,the economic
impact of the 7 mills who received logs from this timber sale is considerable. In the case of the
two SPI mills, each was built at the cost of over$100,000,000. The ongoing investments all
companies make in their operations is substantial.
• The residual products generated at each of these mills is then sent to other manufacturing
facilities including pulp and paper mills, wood pellet manufacturers, animal bedding companies,
landscape and bark companies,turf farms and more for further processing or use and to make
steam and electricity used in the manufacturing process.
• Lumber, plywood products and utility poles generated from these timber sales are then used in
the built environment as alternatives to imported wood or more carbon intensive materials like
concrete and steel.
• DNR staff and contractors generate additional jobs and economic benefits as well. Each timber
sale is carefully designed by DNR foresters. After harvesting the site prep and planting are done
by DNR contractors. The seedlings used in planting of the timber sales are from the DNR
Webster nursery. The precommercial thinning program is also a local employer that helps DNR
maximize growth and health of their forests.
People who testify before the BNR at times wrongly state that Washington schools and other
beneficiaries do not need the money from these harvests. As you can see from the above example,
the economic activity generated from these timber sales is not limited to the bid price but has much
broader impacts and implications.
Because of the interrelatedness and interdependency of the forest products sector,when we lose
one operation due to lack of supply, it affects all of us. Please keep in mind as you continue to
discuss timber sales,that there is a tremendous multiplier to the rural communities and the
beneficiaries through indirect payments not directly from timber sales, but through local taxes and
having a healthy community economically too. With professional DNR staff developing the timber
sales,they also ensure that all of the operations on the ground occur within all forest practice rules
and the Habitat Conservation Plan ensuring a healthy environment as well.
If you have any questions about any of this, or would like to discuss it further, please let me know.
Sincerely,
Epee 7cerwez
Bill Turner
Washington Timber Procurement Manager
CC: Todd Welker
Duane Emmons
Michael Kerney
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