Canfor 2012

Report to Quesnel Airshed Management Committee June 1, 2012

For the Reporting Period: January 2011 to December 2011

The Canadian Forest Products Ltd. Quesnel Division operated a sawmill and planermill with associated log delivery operations throughout the year. A curtailment from December 17th to December 31st 2011 for the Christmas season was the only non-operating period.

The mill manufacturing operation runs 4 days per week (Monday to Thursday) and log delivery operations run 5 days per week (Monday to Friday) when hauling operations are available. No logs were delivered into the Quesnel operation between the end of March and the end of May. During these time periods (Monday to Thursday) the sawmill and planermill operated from 6:00 A.M. until 4:30 P.M. and from 5:00 PM until 3:30AM, at which time the 5 cyclones covered in PA-7844 are operational. An annual inspection of this permit is conducted by representatives of the Ministry of Environment to ensure compliance. (Airshed Management Plan Recommendation 5.2.2- Permitted Operations)

The two main sources of potential emission to the airshed are the two large cyclones attached to the Coastal Planer and the Stetson Ross Planer which are used to slow down blown shavings materials prior to dropping into a vertical storage bin for truck delivery.

These two cyclones are monitored closely to ensure that they work effectively with minor excursions occurring from time-to-time which results in some wood dust blowing out the top of the cyclones. These excursions generally occur when a blockage in the cyclone or bin filler pipe occurs due to moist material binding on itself. The Canfor Quesnel mill manufactures lumber from 99 % dry mountain pine beetle-killed wood fibre. If an excursion starts the planers are shutdown while any blockage is cleared to prevent large escapes of the wood dust materials.

Road dust from the movement of log trucks along Commons Avenue from direct bush deliveries, rehauled logs from a storage yard approximately 0.8 km east of the main mill yards and movements within our main mill logyard can be a concern between mid-April and mid-November each year. In order to mitigate this dust issue we apply dust suppressants each spring to the main travel areas in our millyard and along Commons Avenue to reduce the effects of road dust from log delivery operations. We also apply water from a tank on our loader as required in areas that do not have the lignin-based dust suppressant applied. (Airshed Management Plan Recommendation 5.2.3- Mitigation of Dust from Paved and Unpaved Sources)

The lumber storage yard and other areas on the mill site (including parking lots) are paved and street sweeping is conducted in the Spring (usually April) utilizing the attachments on Canfor mobile equipment. Water is applied prior to sweeping to mitigate dust generation during sweeping activities and the material is picked up by a front-end loader and stored for future use for winter sanding.

As Commons Avenue is a City of Quesnel roadway it would be most beneficial in the long-term to have this stretch of roadway (approximately 0.5 km) paved. All
of the lumber handling yard at the Canfor millsite is paved and there is little to no dust generated from forklift operations on-site.
All wood waste materials (chips, hog fuel, sawdust and shavings) are shipped off-site in covered trucks to prevent the escape of this wood material to the atmosphere or roadways.

The minimal log yard debris generated in the log yards is scraped up by a front­ end rubber-tired loader as it accumulates and loaded into a dump truck for transfer to either the City/Regional District landfill or the permitted Kopetski landfill, depending on the large woody debris content of the material. A tipping fee is paid for all material transported to either of these disposal sites. The amount of this material has been reduced significantly (80%) over the last 5 years because of the cut-to-length log delivery system that minimizes breakage. The beetle-killed logs also have minimal bark that is knocked off in the yard and the minimized handling and storage in the millyard is now exclusively by rubber­ tired all-terrain grapple loaders.

We have been approached by the City of Quesnel in January 2012 to request that we significantly reduce the volume of wood debris being delivered to the City/Regional District land fill site. This material originates from our hog fuel reclaim system and it is too large for delivery to CPP. We agreed to stop delivering this material to the landfill and are now storing this material on our property at Pine Crest. It is our intention to contract a portable wood grinder in the Fall 2012 to process and remove the material to a pulpmill once we have an accumulation that is economically viable to bring the portable grinder on-site.

A log inventory control program is also in place that provides that most logs delivered are unloaded at the mill directly for consumption between June and December annually. This minimizes re-handling and re-transport which has the potential to create dust from May to October each year. Inventory is only built in the yard during the December to March period for use in April and May when log deliveries are stopped due to spring break-up conditions. The average log yard inventory during the summer/fall months is expected to be approximately 35,000 m3.

Canfor Quesnel only operates our dry kilns for approximately 6 hours per kiln per day 5 days per week (we have 4 primary dry kilns). The emissions to the Quesnel airshed from the Canfor Quesnel millsite are a fraction of what they were when the original Airshed Management Plan was introduced and adopted. We continuously look at ways to improve any emissions to the Quesnel airshed and any gains to be found now will be very minor in nature.

Any questions or concerns regarding air quality concerns at the Canfor Quesnel site should be directed to either Brad Eckford, Planer Superintendent (250-992-1306) or Dan Alexander, Division Manager (250-992-1301).

Dan Alexander- General Manager
Date: June 1, 2012