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Supreme Court To Hear Appeal Of Oregon Ruling On Regulation Of Forest Roads

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The U.S. Supreme Court announced in late June that it will hear an appeal of a lower court ruling in an Oregon case holding that forest logging roads were a potential “point source” of pollution from storm water run off requiring regulation and permitting by the Environmental Protection Agency (EPA).  An appeal to the high court of the potentially far-reaching Oregon ruling had been filed by forestry groups and supported by attorneys general of 26 states.  The Supreme Court is expected to hear oral arguments in the case this fall or winter and issue a final decision by next spring or early summer.

Prior to the Supreme Court’s review announcement, EPA had filed formal notice that as a result of the Oregon ruling it would review its regulations to specify that “logging roads” are not included in the definition of “storm water discharge associated with industrial activity” — a point raised in the Oregon case.  But the agency said its rule-making would include studies of “water quality impacts of forest roads…on existing voluntary programs designed to address them to determine if additional Agency [EPA] action is necessary.” This appears to be a reference to existing state Best Management Practices (BMPs).

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Increased Rainfall, Possible El Nino Return Brighten Near-Term Timber Market Prospects

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Increased rainfall across much of the drought-stricken Southeast and Mid-South has brought short-term improvement in timber markets in some parts of the region, but prospects for a return of El Nino weather conditions is “potentially the brightest hope for the near future,” President Marshall writes in the summer issue of his firm’s newsletter, The F&W Forestry Report.

“While NWS [National Weather Service] won’t say we are back to El Nino yet, at least there is a 50-50 chance we will get there in the next six months,” Thomas writes.  “Oftentimes it takes a little rain to help tree markets find their potential, for buyers to feel enough pressure to pay their top price.  We haven’t had enough rain in a long time, Southwide, to put real pressure on our markets.  Maybe, just maybe, there is enough increased demand in our depressed markets for a little (or a lot) of rain to decrease supply enough so we can see how high prices can go.”

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Pulpwood Demand At Near Record; U.S. Wood Pellet Exports Now Even With Canada

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Although sawtimber demand remains weak due to the housing slump, two other forest products — pulpwood and wood pellets — are going great guns.

Pulp and paper mills in the U.S. South consumed a near record level of pulpwood in 2010, according to a newly released report of the U.S. Forest Service, and appear to be running strong this year, according to industry leaders.  And while the number of pulp mills in the region has declined in recent years, individual mill production has increased sharply.

In a separate report, wood pellet exports to Europe from North America set a new record in 2011 and the U.S. has pulled even with Canada in these shipments.  The report, compiled by Wood Resources International of Seattle, said six pellet export plants are now operating in the U.S., four others are in the “trial shipment” stage, and plans for six more have been announced.

TO SEE THE FULL ARTICLE IN THE SPRING 2012 F&W FORESTRY REPORT, SUBSCRIBE NOW.