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UBC Theses and Dissertations

Sawlog pollution in the Lower Fraser River Fairbairn, Bruce 1974

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SAWLOG POLLUTION IN THE LOWER FRASER RIVER by Bruce F a i r b a i r n B.Sc. Un i v e r s i t y of B r i t i s h Columbia, 1970 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE i n the School of Community and Regional Planning We accept t h i s thesis as conforming to the r e q u i r e ^ standard THE UNIVERSITY OF BRITISH COLUMBIA A p r i l , 1974 In p r e s e n t i n g t h i s t h e s i s i n p a r t i a l f u l f i l m e n t o f the requirements f o r an advanced degree a t the U n i v e r s i t y of B r i t i s h Columbia, I agree t h a t the L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e and study. I f u r t h e r agree t h a t p e r m i s s i o n f o r e x t e n s i v e c o p y i n g o f t h i s t h e s i s f o r s c h o l a r l y purposes may be granted by the Head o f my Department or by h i s r e p r e s e n t a t i v e s . I t i s understood t h a t c o p y i n g or p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l not be a llowed w i t h o u t my w r i t t e n p e r m i s s i o n . Department The U n i v e r s i t y o f B r i t i s h Columbia Vancouver 8 , Canada ABSTRACT Wood debris has been a natural component of the Fraser River system for centuries. However, with the development and expansion of a diverse forest industry in British Columbia, the volume of waterborne logging wastes being discarded into the river has gradually increased to the point where logging slash, uncontrolled sawlogs, trimmed log ends and dislodged bark now present a serious problem to the users of the Lower Fraser and i t s shorelands. Where water pollution can be defined as any residual discharge into a watercourse which causes both a deterioration in the quality of the receiving waters and some form of related social costs, sawlogs and other types of wood debris present a rather unique example of a pollutant to the Lower Fraser River. From this perspective, the available literature on pollution control provides an appropriate methodology for defining and analyzing the issues and problems associated with the presence of this material in the waterway. In 1972, uncontrolled sawlogs accounted for 9.2 million cubic feet of wood debris or roughly 80 per cent of the total debris load in the river. These logs were responsible for approximately 4.5 million dollars in costs to fishermen, pleasure boat owners, harbour authorities, and private logging companies. While i t is realized that there are substantial additional costs related to the environmental impacts of sawlog debris, more studies are needed to determine the significance of these impacts on the ecology of the Fraser estuary. However, i t i s f e l t that these unquantifiable costs are important enough to warrant serious consid-e r a t i o n and values should be properly attached to these costs through the p o l i t i c a l process so that they can be weighed i n any analysis concerned with the a l l o c a t i o n of the r i v e r ' s resources. A d i s c u s s i o n of how market i n s t i t u t i o n s have acted to regulate the use of the r i v e r , demonstrates that the costs and b e n e f i t s of log storage and transportation are being d i s t r i b u t e d unequitably to groups external to the f o r e s t industry. Further, the a v a i l a b l e evidence i n d i c a t e s that the resources of the r i v e r are being a l l o c a t e d i n e f f i c i e n t l y by the e x i s t i n g market str u c t u r e . P o l i t i c a l l y speaking, our i n s t i t u t i o n s have not been e f f e c t i v e i n c o n t r o l l i n g sawlog p o l l u t i o n e i t h e r . If regulatory controls are to be used to t h i s end, then new teeth i n the l e g i s l a t i o n w i l l have to be developed. There are a number of log handling techniques that could be introduced by the f o r e s t industry to help reduce the frequency of log loss i n the r i v e r , the most e f f e c t i v e of which appears to be a bundle booming p o l i c y for hemlock and small diameter logs. While the a n a l y s i s presented i n t h i s paper in d i c a t e s that the b e n e f i t s of such a p o l i c y are greater than the costs from both a p r i v a t e and s o c i a l accounting stance, i t i s f e l t that an extra incentive to industry would be needed to stimulate p r i v a t e firms to adopt t h i s approach to log loss c o n t r o l . One way of providing t h i s incentive would be through the i v a p p l i c a t i o n of a sawlog charge system administered through the Gulf Log Salvage Cooperative under a revised c o n s t i t u t i o n . This charge i n the form of a fee l e v i e d against log owners for each cubic foot of uncontrolled sawlog debris recovered by salvagers i n the Lower Fraser would (a) provide an extra economic incentive for p r i v a t e firms to reduce t h e i r l o s s es, (b) give the industry an opportunity to i n t e r n a l i z e the external costs of log handling and (c) allow some f l e x i b i l i t y of response i n that p r i v a t e firms would have the option of continuing to lose logs i f such an a l t e r n a t i v e proved more e f f i c i e n t f o r t h e i r p a r t i c u l a r circumstances. I t i s f e l t that a charge system would be preferable to a program of voluntary or government r e g u l a t i o n , however, a combination of these a l t e r n a t i v e s could be developed so as to provide an integrated approach to the problems of sawlog c o n t r o l on the Lower Fraser River. V TABLE OF CONTENTS PREFACE 1 INTRODUCTION 4 1.1 Wood Debris and the Forest Industry i n the Lower Fraser 4 1.2 Wood Debris as a Po l l u t a n t 7 1.3 Wood Debris as a Useful Commodity 8 1.4 Chapter Organization and Focus 8 BACKGROUND INFORMATION 12 2.1 Composition and Volume Estimates of Wood Debris < 12 2.2 Upstream Sources of Sawlog Debris 14 2.3 Downstream Sources of Sawlog Debris 16 2.4 Causes of Log Loss 18 QUANTIFIABLE COSTS OF SAWLOG DEBRIS 22 3.1 Introduction 22 3.2 Harbour Clean-Up and Maintenance 23 3.3 Beach Clean-Up 25 3.4 Damage to Tow Boats 26 3.5 Damage to F i s h Boats and Equipment 28 3.6 Damage to Pleasure Boats 29 3.7 Forest Service Burning Program 30 3.8 In t e r n a l Losses to the Forest Industry 30 3.9 Cost Summary f o r 1972 33 THE ENVIRONMENTAL IMPACTS OF SAWLOG DEBRIS 36 4.1 Introduction 36 4.2 Leachates 36 4.3 Bark 38 4.4 The Aesthetics of Sawlog Debris 41 4.5 Summary 43 v i THE INSTITUTIONAL CAUSES OF SAWLOG DEBRIS - Part 1: Market F a i l u r e 45 5.1 Introduction 45 5.2 How Markets Function 46 5.3 P r i v a t e Versus S o c i a l Costs and Benefits 47 5.4 Market F a i l u r e : E x t e r n a l i t i e s 49 5.5 Market F a i l u r e : Common Property Resources 50 5.6 The A l l o c a t i o n of Resources on the Lower Fraser 54 5.7 Summary 56 THE INSTITUTIONAL CAUSES OF SAWLOG DEBRIS - Part 2: P o l i t i c a l F a i l u r e 58 6.1 Introduction 58 6.2 L e g i s l a t i v e Controls 59 6.3 C i v i l Law 70 6.4 S p e c i a l Bodies 74 6.5 Summary 79 SAWLOG CONTROL TECHNIQUES 82 7.1 Introduction 82 7.2 Log Dumping 83 7.3 F l a t Raft Standards ' 83 7.4 Barging 84 7.5 Dry Land Storage 85 7.6 On S i t e Scaling 86 7.7 Bundle Booming Hemlock and Small Diameter Logs 86 7.8 Costs of a Comprehensive Bundling P o l i c y 90 7.9 Benefits of a Comprehensive Bundling P o l i c y 96 7.10 A S o c i a l Cost Accounting 100 7.11 A P r i v a t e Cost Accounting 101 ALTERNATIVE APPROACHES TO CONTROLLING SAWLOG POLLUTION 104 8.1 Introduction 104 8.2 Voluntary Regulation 107 8.3 Government Regulations 111 8.4 A Charge System for Uncontrolled Sawlogs 112 8.5 Advantages of a Charge System Over Regulatory Controls 116 8.6 Summary 118 CONCLUSIONS 119 • 1. PREFACE I t may be of some in te res t to the reader to b r i e f l y describe the process and events which led up to the presentation of th i s thesis on sawlog con t ro l . In response to an increasing publ ic concern over the r i s i n g l e v e l of debris p o l l u t i o n i n the Lower Fraser R i v e r , Westwater Research Centre i n i t i a t e d a study to explore the problems of debris control as part of the i r Lower Fraser Water Qual i ty Pro jec t . The i n i t i a l stages of th i s research which begain i n June 1973, were devoted to i s o l a t i n g these problems and es tab l i sh ing contacts wi th other concerned groups inc luding the B.C. Forest Service , The North Fraser and Fraser River Harbour Commissions, the Fishermen's Union , the Towboat Owners Assoc ia t ion , and representatives of the forest indust ry . The information generated from th is prel iminary enquiry i d e n t i f i e d sawlog p o l l u t i o n as one of the most serious debris problems facing the Lower Fraser and the one which could perhaps be most e f f ec t i ve ly tackled i n the one-year time horizon set for the study. Although most of the groups d i r e c t l y involved were very much aware of the need to reduce the l e v e l of sawlog p o l l u t i o n i n the r i v e r , i t took a subs tan t ia l amount of publ ic c r i t i c i s m to i n i t i a t e some pos i t i ve ac t ion . Westwater was able to play an important ro le i n th i s process through two a r t i c l e s published i n the l o c a l press which documented the seriousness of the sawlog problem and placed the r e s p o n s i b i l i t y for 2. c o n t r o l l a r g e l y on the shoulders of the f o r e s t i n d u s t r y (The Vancouver Sun, August 16, 1973 and The Fisherman, October 19, 1973). In a d d i t i o n , some p r e l i m i n a r y r e s u l t s of the research were c i r c u l a t e d to the p u b l i c i n a Westwater B u l l e t i n ( B u l l e t i n No. 5, J u l y 1973). As a r e s u l t of t h i s exposure, both i n d u s t r y and the p u b l i c became more aware of the d e t e r i o r a t i n g s i t u a t i o n i n the Lower F r a s e r . In September 1973, Westwater was i n v i t e d to s i t on the "Committee on U n c o n t r o l l e d Waterborne Wood" e s t a b l i s h e d by the B.C. Forest S e r v i c e to coordinate and d i r e c t the e f f o r t s of v a r i o u s p u b l i c agencies and f o r e s t companies towards an i n t e g r a t e d program of d e b r i s c o n t r o l i n both c o a s t a l and i n l a n d waters. A r i s i n g from d i s c u s s i o n s w i t h i n t h i s committee, the C o u n c i l of For e s t I n d u s t r i e s was requested to prepare a rep o r t which would o u t l i n e ways i n which the i n d u s t r y might act to reduce t h e i r l o g l o s s e s and d e b r i s discharge. This a c t i o n , supported by Westwater, was perhaps the f i r s t p o s i t i v e step taken towards the development of a comprehensive system of d e b r i s c o n t r o l . While t h i s t h e s i s i n p a r t responds to the c o u n c i l ' s r e p o r t , i t goes f u r t h e r to suggest some a l t e r n a t i v e approaches to a c h i e v i n g the same end — that being a r e d u c t i o n i n the l e v e l of sawlog p o l l u t i o n i n the Lower F r a s e r . The r e s u l t s of the study have taken the form o f : (1) a Master's Thesis i n the School of Community and Regional P l a n n i n g . (2) a t e c h n i c a l r e p o r t p u b l i s h e d by Westwater Research Centre. (3) an a r t i c l e i n the N a t u r a l Resources J o u r n a l , (4) a press r e l e a s e o u t l i n i n g the f i n d i n g s of the study. In retrospect, the project has over the past year involved Westwater p u b l i c a l l y i n the e f f o r t to control wood debris and has helped to i n i t i a t e a p o s i t i v e p r a c t i c a l response from the f o r e s t industry. I t i s hoped that t h i s research w i l l serve to further the progress of a l l those groups and i n d i v i d u a l s concerned with debris p o l l u t i o n , e s p e c i a l l y those who are d i r e c t l y involved i n developing a program f o r e f f e c t i v e c o n t r o l i n the Lower Fraser River. My thanks go out t o : - I r v i n g Fox, who advised me throughout the p r o j e c t . - Ken Peterson, who was a great help i n organizing and e d i t i n g the report. - Mike Paynter and Ken Boyd from the C.F.I, and Hans Waelti 1 from the B.C. Forest Service. A. CHAPTER 1: INTRODUCTION 1.1 Wood Debris and the Forest Industry on the Lower Fraser Wood debris has been a natural component of the Fraser River system for centuries. Now as i n the past, the timeless processes of erosion scour the river embankments and adjacent h i l l s i d e s producing a continuous flow of waterborne vegetation and s i l t . As the river runs i t s course to the sea, quantities of this debris become stranded upon sand bars and beaches creating enormous accumulations of shattered tree trunks, uprooted stumps, and broken branches. However over the years, nature has always managed to avoid any serious build-up of these materials through the constant flushing action of the river, the changing of the tides, and the natural decomposition of resident organic remains. Because of i t s proximity to both local markets and export f a c i l i t i e s , the Lower Fraser has gradually developed as the centre of British Columbia's wood processing industry as i s evidenced by the large volume of wood transported in and out of the river each year. This region provides excellent fresh water storage space, free from the threat of toredo damage as well as an inexpensive transportation route to sawmills and pulping plants. Whereas present development trends indicate that the productivity of the individual mills along the river i s generally increasing, the overall industry i s not expanding in this area in terms of the total volume of wood processed and the construction of new facilities."'" Logging debris, however 1. Westwater Land Use Study, Fred Friesen (1974). 5. continues to present a serious problem to many users of the r i v e r and i t s shorelands and over the past few years the volume of waterborne logging 2 3 s lash , log but t s , trimmed branches, discarded lumber, bark, and 4 uncontrolled sawlogs has increased to the point where i t now exceeds the volume of natura l wood debris i n the Lower Fraser estuary. 2. Slash i s a term used to describe "logging garbage". This mater ia l consists of branches, unusable pieces of wood, dislodged bark, chips , e tc . 3. Log butts are the sawn-off ends of l ogs . . 4. Uncontrolled sawlogs i s a term used to describe logs that have escaped from booms or assembly areas, low f loa t ing logs , deadheads, and logs that have washed up on r i v e r banks and beaches. 1.2 Wood Debris as a P o l l u t a n t I t should be pointed out by way of i n t r o d u c t i o n , that the r i v e r as a natural resource of the Crown, i s a p u b l i c good, and as such i s managed by a number of government agencies for the p u b l i c or s o c i a l b e n e f i t . While c e r t a i n groups apart from the f o r e s t industry have an equally v a l i d r i g h t to the use of the r i v e r , they are i n some cases presently forced to bear some of the costs of log storage and transportation as imposed on them by the industry. For example, fishermen are often damaged through c o l l i s i o n s with uncontrolled sawlogs and i n some areas r e c r e a t i o n i s t s are prevented from enjoying the r i v e r where the shoreline i s clogged with logging debris. ! Many i n d i v i d u a l s regard sawlogs, n a t u r a l wood debris, and logging wastes, as co n t r i b u t i n g factors to the d e t e r i o r a t i o n of the water Quality i n the Lower Fraser. This material represents e i t h e r a r e s i d u a l discharge or an a c c i d e n t a l by-product of the f o r e s t industry, and i n f a c t a wide range of both damage costs and s o c i a l costs are incurred as a r e s u l t of i t s presence i n the waterway. As a consequence, these costs often r e s t r i c t or p r o h i b i t the use of the r i v e r f o r other purposes. I f p o l l u t i o n i s defined as any r e s i d u a l discharge into a watercourse which causes both a d e t e r i o r a t i o n i n the q u a l i t y of the r e c e i v i n g waters and some form of r e l a t e d s o c i a l cost, wood debris can be t h e o r e t i c a l l y classed as a p o l l u t a n t i n the r i v e r and the problem of uncontrolled water-borne wood can be thought of as a c l a s s i c case of water pollution."* 5. Managing Water Qua l i t y : Economics, Technology, I n s t i t u t i o n s , Knesse and Bower, 1968. 8. From t h i s perspective then, the a v a i l a b l e l i t e r a t u r e on p o l l u t i o n c o n t r o l provides an appropriate methodology f or defi n i n g and analyzing the issues and problems associated with uncontroled sawlogs i n the Lower Fraser. 1.3 Wood Debris as a Useful Commodity While i t i s recognized that there are s u b s t a n t i a l costs associated with the presence of wood debris i n the Lower Fraser i n terms of boat damage, clean up, and a e s t h e t i c s , there are those who f i n d t h i s m a t e r i a l to be both an i n t e r e s t i n g and us e f u l commodity when used f o r f u r n i t u r e , firewood, or decoration. One can often go down to the North Arm J e t t y by Iona Island and f i n d people hauling away o l d logs f o r firewood or scavanging odd shapes of drfitwood f o r c u r i o s . Even discarded timbers are sometimes c o l l e c t e d and recycled. In a d d i t i o n , wood debris as an i n t e g r a l and c h a r a c t e r i s t i c component of the sho r e l i n e scenery i s also valued f o r i t s c o n t r i b u t i o n to a n a t u r a l l y flowing r i v e r system. 1. A Chapter Organization and Focus Although debris can be shown to be u s e f u l to some extent, t h i s study i s p r i m a r i l y concerned with d e f i n i n g the nature of the problems i t causes and ex-amining ways of g r e a t l y reducing the costs which are evidently imposed upon society as a r e s u l t of i t s presence i n the r i v e r . In pursuing t h i s o b j e c t i v e , there are perhaps three l e v e l s of g e n e r a l i t y that can be i d e n t i f i e d . The f i r s t i s the impact of the fo r e s t industry as a whole on the Lower Fraser estuary. The se-cond i s the impact of wood debris on the economics and ecology of the r i v e r system. 9. The t h i r d and most spec i f i c l e v e l i s the impact of uncontrolled sawlogs on the r i v e r environment and i t s users. Because these three approaches are so c lose ly r e l a t ed , i t i s d i f f i c u l t to deal separately wi th any one of them without re fe r r ing to the other two. While th i s report endeavours for the most part to focus a t tent ion on the problem of sawlogs, there are sections which address issues r e l a t i n g to the broader impacts of wood debris on the r i v e r and the effect of the forest industry on the Lower Fraser estuary. The mater ia l presented i n the fol lowing pages has been organized into eight chapters. Chapter 2 out l ines the relevant background information on the a c t i v i t i e s of the forest industry i n the Lower Fraser . This data includes: log loss estimates, debris volumes and composition, and a discussion of the sources of debris flowing in to the lower r i v e r . Chapter 3 i d e n t i f i e s the nature, desc r ip t ion , and magnitude of the quant i f iable costs of wood debr is . Calcula t ions are presented which show the proportion of these costs that can be d i r e c t l y a t t r ibuted to sawlogs. Chapter 4 continues with a discussion of the environmental and aesthetic costs of sawlog p o l l u t i o n i n a r i v e r system. Because of the d i f f i c u l t y involved i n accurately quantifying these costs , no attempt has been made to ca l ib ra te them using a monetary sca le . These costs r e su l t mainly from (1) a b u i l d up of bark on the r iverbed and shore l ine , (2) the d i f fus ion of wood leachates in to the watercourse, and, (3) the aes the t i ca l ly unat t ract ive appearance of some log storage areas and debris accumulations. Although a great deal of uncertainty ex is t s wi th regard to the environmental impacts of sawlog p o l l u t i o n , an attempt i s made to iden t i fy the extent to which these impacts are f e l t on the Lower Fraser . The discussion of costs i s followed i n Chapters 5 and 6 by an examination of the i n s t i t u t i o n a l causes of sawlog debr is . Chapter 4 addressed the question of "market f a i l u r e " . Here evidence i s presented i n support of two prel iminary hypotheses; f i r s t , that soc i e ty ' s resources are being a l loca ted i n e f f i c i e n t l y wi th respect to the use of the r i v e r for sawlog storage and t ranspor ta t ion, and second, that the resul tant costs and benefits are not being d i s t r ibu ted equi tably . Chapter 6 describes the " p o l i t i c a l f a i l u r e " of our i n s t i t u t i o n s to regulate and cont ro l sawlog p o l l u t i o n . A number of relevant l e g i s l a t i v e statutes and administrat ive structures having a bearing on sawlog debris are discussed and evaluated. F i r s t l y , i n s t i t u t i o n a l arrangements under federal j u r i s d i c t i o n s are examined followed by those under p r o v i n c i a l and l o c a l c o n t r o l . Then the per t inent c i v i l law i s described. The chapter concludes with a review of two spec ia l bodies; the Gulf Log Salvage Cooperative and the Committee on Uncontrolled Waterborne Wood. Chapter 7 i d e n t i f i e s and describes several a l t e rna t ive techniques of sawlog con t ro l , inc luding what can be ca l l ed a comprehensive bundle booming p o l i c y for hemlock and small diameter logs . Because th is bundling p o l i c y i s thought to be the most e f fec t ive act ion that could be taken by industry to reduce the frequency of log loss i n the Lower Fraser , the costs and benefits of such a program are analyzed from both a pr iva te and s o c i a l accounting stance. 11. Chapter 8 examines three policy-program approaches to sawlog c o n t r o l . The f i r s t i s a voluntary system of regulations developed and implemented by the f o r e s t industry. The second i s a set of l e g i s l a t e d government regulations. The t h i r d i s a charge system f o r uncontrolled sawlogs designed to provide an economic in c e n t i v e to encourage industry to reduce t h e i r l o s s e s . The advantages and disadvantages of these three approaches are discussed i n the context of the Lower Fraser s i t u a t i o n . The report sums up with a set of conclusions which i t i s hoped w i l l be of some use to those groups or i n d i v i d u a l s concerned with a l l e v i a t i n g the problems of sawlog p o l l u t i o n . CHAPTER 2: BACKGROUND INFORMATION 2.1 Composition and Volume Estimates of Wood Debris In the Lower Fraser Wood debris i n the Fraser system can be generally c l a s s i f i e d as origin a t i n g from natural or man-made sources. Natural wood debris which i s composed of stumps, branches, and other products of stream bank erosion, i s carried downstream by r i v e r currents where i t i s eventually deposited i n the Lower Fraser or washed out to sea. The volume of this material (800,000 cubic feet i n 1971, 851,000 cubic feet i n 1972, and 370,000 cubic feet i n 1973)^ varies each year with the size of the freshette. The man-made wood debris found i n the r i v e r , largely originates with a c t i v i t i e s of the forest industry with the exception of some construction materials. This unnatural debris can be subdivided into two groups: (1) Manual debris: waste material associated with logging operations; usually round wood l i m i t e d i n length or condition showing cuts or other signs of mechanical handling. This group would include logging slash, trimmed branches, butt ends, etc. (2) Sawlogs:logs suitable f o r pulp and/or lumber with a minimum mid-diameter of s i x inches and a minimum length of twelve feet. In 1972, 2.3 m i l l i o n cubic feet of both man-made and natural debris passed under the Mission Bridge from upstream sources; 37 percent of this 6. Fraser River Debris Study, B.C. Forest Service Engineering D i v i s i o n F i l e No. 0268446 and 0311646, February 1972, January 1973, and July 1973. material was natural debris, 29 percent was sawlogs, 32 percent was manual debris, and 2 percent was lumber. A lower runoff in 1973 resulted in a downstream debris flow of only 1.0 million cubic feet; 36 percent of which was sawlogs, and 31 percent manual debris.^ These figures show a relative increase in the percentage volume of sawlog debris between 1972 and 1973, as compared with natural materials. Although the quantity of debris that comes down the river i s very large, i t i s but a fraction of the total amount that creates a problem in the Lower Fraser in the v i c i n i t y of Vancouver. In addition to the debris that passes downstream under the Mission Bridge in 1972, there was an estimated 9.4 million cubic feet of wood debris in the form of uncontrolled sawlogs which originated from log transportation and storage operations in the estuary of the Lower Fraser (see Table 1 ) . Thus, each year the loading of debris that reaches the Fraser estuary can be expected to total between 9 and 12 million cubic feet, depending upon the number of sawlogs handled in the lower river and the size of the spring runoff. Generally speaking, over 85 percent of this total i s the direct result of forest industry operations. More specifically, in 1972, 80 percent of the 11.7 million cubic feet of wood debris in the Lower Fraser was sawlog debris. Furthermore, about 94 percent of these sawlogs originated from log storage and transportation a c t i v i t i e s in the lower river below Mission. 7. Ibid. • 14. TABLE 1 : LOG LOSS IN THE LOWER FRASER (1) Volume of sawlogs i n the r i v e r ( i n units of 1 ,000 cubic feet — Mcf). North Fraser* Main Channel** Hemlock Other Species Hemlock Other Species 1970 9 9 , 6 9 1 188,746 61,416 197,332 1971 93,240 165,760 55,900 165,268 1972 78,418 145,635 52,952 136,972 * Figures released by the North Fraser Harbour Commission as volume estimates of logs entering the harbour. ** These figures were obtained from the yearly average storage volume for hemlock (B.C. Forest Service log storage inventory). The average storage backlog i n the r i v e r i s estimated by industry to represent roughly 1/4 of the t o t a l volume of logs processed i n a year — hence the storage figures were m u l t i p l i e d by a f a c t o r of 4 to get the t o t a l volume of logs entering the r i v e r . (2) Volume of logs l o s t by industry based on a 5 percent l o s s for hemlock and a 1 percent l o s s f o r other species ( i n units of 1 ,000 cubic feet — Mcf).* Hemlock Other Species 1970 8 ,055 3,860 1971 7,457 3,310 1972 6 ,558 2,826 * B.C. Forest Service Note: Although the concentration of sawlogs contributed by upstream sources does vary with the s i z e of the runoff, the much la r g e r volume of l o s t logs which r e s u l t s from handling and transportation processes i n the Lower River v a r i e s with the a c t i v i t y of the industry. Therefore the concentration of the p o l l u t a n t i s more d i r e c t l y dependent on the operational l e v e l of the industry than the y e a r l y runoff volume. The gradual decline i n log volumes entering the r i v e r may be due to the closure of several m i l l s i n the past 3 years. This trend however i s not expected to continue and as was mentioned e a r l i e r the a c t i v i t y of the f o r e s t industry on the r i v e r i s projected to remain r e l a t i v e l y stable over the next few years. 15. I t i s In teres t ing to note that whereas the volume of coasta l forest production has increased by 10 percent over the past f ive years, the B.C. Council of Forest Industr ies estimates that the number of pieces logged has increased by 25 percent. This i s p r imar i ly the resu l t of greater volumes of small logs being cut under a Close U t i l i z a t i o n Logging P o l i c y . Therefore, although the volume of logs handled has not var ied s i g n i f i c a n t l y i n recent years, the number of logs handled has increased subs tan t ia l ly thereby adding to the log loss problem. 2.2 Upstream Sources of Sawlog Debris Dumping, so r t i ng , and booming areas are the major upstream sources 8 of sawlog debris flowing in to the lower region of the Fraser . As of December 1970, there were 13 log dumps on the Fraser River above Mis s ion . These extended to about 40 miles above Hope and included several i n s t a l l a t i o n s i n the Harrison Lake area. Timber i s generally trucked to these s i t e s from inland logging operations where i t i s unloaded and dumped, assembled in to f l a t r a f t s , and eventually towed downstream to processing plants located on the lower r i v e r . During the water phase of th i s operation, careless handling pract ices often resu l t i n logs escaping in to the r i v e r flow where they normally d r i f t downstream or become temporarily stranded on the r i v e r banks. In general , l i t t l e effor t i s made to recover or clean up these l o s t 8. Dumping areas are those places along the r i v e r where logs are unloaded from trucks and dumped in to the water. Free f a l l dumping i s a term used to describe the s i t ua t i on where logs are dumped d i r e c t l y in to the water with no cable or s l i d e control over the i r f a l l . At sor t ing grounds, logs are separated as to species and grade and then assembled into booms for t ransport . 16. logs and consequently they often remain lodged on sandbars or shorel ine frontage for long periods of time. Free f a l l dumping has been found to be the l eas t desirable technique of deposit ing logs i n the water i n terms of log loss and bark dislodgement. Because of the abrasive contact between logs during th i s process and the lack of cont ro l over t he i r entry into the water, free f a l l dumping i s gradually being phased out along the r i v e r i n favour of s l i d e dumps or cable hois t i n s t a l l a t i o n s which generally create less debr is . Upstream booming grounds are often poorly managed and the low qua l i ty of log raf t construction plus a lack of pr ide i n good workmanship are not I uncommon charac te r i s t i c s of these operations. Because of a constant ef for t to save money on log handling procedures, and i n some cases an i r respons ib le a t t i tude toward other r i v e r users, a large number of sawlogs are l o s t at these s i t e s . PLATE 1 shows the percentage contr ibut ion of wood debris entering the Fraser River system from i t s upstream t r i b u t a r i e s . 2 .3 Downstream Sources of Sawlog Debris The second main source of uncontrolled sawlogs i s a r e su l t of the t ransportat ion of large volumes of logs i n and out of the mouth of the r i v e r . Using North Fraser Harbour Commission figures which record the quantity of logs entering the North Arm of the Fraser , and B.C. Forest Service log inventory storage figures for the Main Arm, th i s study estimates that roughly 414 m i l l i o n cubic feet of wood were towed or barged in to the r i v e r i n 1972. This represents a l i t t l e less than one-half of the t o t a l B .C. 1 7 . PLATE 1: ORIGINS OF UPSTREAM DEBRIS As can be seen i n th is map which i s based on 1972 f igures released by the B.C. Forest Service , the Nechako River and the other t r i b u t a r i e s of the Fraser above Quesnel contribute 38% of the t o t a l land — the Thompson i s responsible for 18%. hako 7 % Upper Fraser 18*/« "^^Quesnel 13 "/« N. Thompson 1 2 % S.Thompson 4 % Kamloops Lk 2 % Lower Fraser 44 °L 1 8 . coastal cut of 1 ,000 m i l l i o n cubic feet per year. Of t h i s 414 m i l l i o n cubic feet handled i n the Lower Fraser, 9 .4 m i l l i o n cubic feet are l o s t through careless handling or sinkage. Because of the v a r i a b i l i t y i n the B.C. Forest Service s c a l i n g procedures and because i n d i v i d u a l logging companies i n general do not keep accurate transportation records, the log los s estimates c i t e d i n the l i t e r a t u r e range anywhere from 2 percent to 10 percent depending on species, source, s i z e , handling procedure, time of year, and time i n storage. Weighing the a v a i l a b l e data on hand, f i g u r e s of 5 percent f o r hemlock and 1 percent f o r other species have been chosen as most c l o s e l y 9 approximating actual l o s s e s . TABLE 1 presented e a r l i e r shows the magnitude of t h i s log lo s s i n the Lower Fraser River over the past three years. 2.4 Causes of Log Loss Logs f l o a t i n g f r e e l y i n dumping or s o r t i n g ponds and those that have escaped from booms i n t r a n s i t w i l l sink i n fresh water i f t h e i r s p e c i f i c g r a v i t y i s greater than 1 . 0 0 . The following information regarding sinkage should be considered: (1) The moisture content of a log i s the major determinant of i t s s p e c i f i c g r a v i t y . 9 . Taken from log los s f igures from the B.C. Council of Forest Industries Task on Log Losses (1974) and estimates c i t e d i n a B.C. Forest Service Report on Log and Debris Salvage i n the S t r a i t of Georgia (1971) . 19. (2) Hemlock accounts for the largest percentage of log loss and sinkage (75 percent) . (3) The seasonal time of harvest can affect bouyancy. (4) Bouyancy decreases wi th residence time of wood in ,water . (5) A B.C. Research Report No. 60-34-B which studied the s p e c i f i c gravi ty d i s t r i b u t i o n of 1,039 hemlock logs from MacMil lan-Bloedel ' s F rank l in River D i v i s i o n , l i s t e d the fol lowing resu l t s : "^ —• 20.6 percent of the logs had a spec i f i c gravi ty of .901 - 1.00. These are low f loa ters wi th a high po ten t i a l for escaping f l a t raf ts or sinkage af ter prolonged storage i n water. — 9.3 percent had a spec i f i c g rav i ty of greater than 1.00. These logs are s inkers . (6) Logs cut from second growth stands generally have smaller butt diameters and higher s p e c i f i c g r a v i t i e s . As one might expect i n view of these fac t s , a s i gn i f i c an t number of sinkers and low f loaters escape and are l o s t during the water handling of logs i n the Lower Fraser . While water sor t ing areas, free f a l l log dumps, as w e l l as some water storage s i t e s represent major sources of th i s l o s s , the f e a s i b i l i t y of dry land a l te rna t ives to replace these methods have yet to be determined. Because of the close proximity of the coastal dumping grounds to the Fraser River and the r e l a t i v e l y stable water conditions that p r e v a i l i n 10. B r i t i s h Columbia Research, Vancouver, Project No. 61-34-B, 1964; Sinking of Hemlock Logs, commissioned by MacMillan-Bloedel L imi t ed . these areas, the majority of logs entering the river are transported and stored as f l a t rafts."'"''' These booms have a high loss factor for the 12 following reasons: (1) Low floaters escape underneath boomsticks in choppy weather, or because of waves created by a passing vessel, or by ro l l i n g out when the boom rounds a bend. (2) High floating logs may escape for the same reasons over p a r t i a l l y submerged boomsticks. (3) Logs may escape through gaps between boomsticks i f chains that are too long are used. (4) Sloppy makeup of booms with poor boomsticks, inadequate swifters, sections not tightly packed, small logs on outside rather than i n the middle of the boom, etc., contributed to seepage of logs. (5) Fast and powerful tugs have increased the rate of escape; i f start-up i s too fast, or i f a tug does not slow down when changing direction, logs escape inevitably. (6) If booms are stored in rocky areas that may go dry during low tide, logs escape when boomsticks hang up on rocks. (7) When booms enter the lighter fresh water at the mouth of the Fraser, low floaters may sink down to the more dense sea water and reappear at the surface on the d r i f t l i n e between salt water and fresh water. 11. These booms are constructed with only one layer of logs floating f l a t on the surface of the water. 12. Taken from Log and Debris Salvage on the Strait of Georgia, B.C. Forest Service, F i l e No. 0 2 6 8 4 4 6 , June 2 0 , 1971. ^Boomsticks are those logs strung around the perimeter of a boom. They are held together by chains and are used to keep the boom together. **Swifters are logs chained across the top of a boom to add st a b i l i t y in conjunction with boomsticks. Bundle booms on the other hand, generally incur fewer losses during 13 t r a n s i t . Nevertheless some logs with a high spec i f i c g rav i ty that may have been held af loat w i th in the bundle, w i l l often sink when and i f the bundle i s broken open i n the water, or i n f ac t , at any stage i n the process where the logs are allowed to free f l o a t . In add i t ion , bark and other smaller pieces of wood debris can also become enclosed i n a bundle and released into the water at t h i s stage. Regardless of these disadvantages, i t i s commonly accepted wi th in the industry that bundle booms are preferable to f l a t raf ts i n that they incurr fewer losses during t r a n s i t . 13. A bundle boom, as the name impl i e s , i s constructed from logs bundled together with cables. They look l i k e the bundles of logs often car r ied by logging t rucks . 22. CHAPTER 3: THE QUANTIFIABLE COSTS OF SAWLOG DEBRIS 3.1 Introduction In general, two categories of q u a n t i f i a b l e costs can be i d e n t i f i e d : (1) clean up and prevention costs. (2) the costs of damage to property and possessions. Clean up and prevention involves expenditures on the part of the two harbour commissions having j u r i s d i c t i o n on the Lower Fraser, the Federal Department of P u b l i c Works, the Parks Board of Greater Vancouver,and West Vancouver, and f i n a l l y , the B.C. Forest Service. Damage costs are incurred by several groups using the r i v e r i n c l u d i n g tow boat owners, fishermen, and pleasure i boat owners. i Because of the d i f f i c u l t y i n many cases of obtaining r e l i a b l e cost measurements, the fi g u r e s quoted i n t h i s chapter should be inte r p r e t e d as in d i c a t o r s of magnitude rather than as exact estimates. Moreover, many cost figures can be r e a d i l y manipulated i n presentation and i n t e r p r e t a t i o n i n order to r e f l e c t the biases of the group doing the a n a l y s i s . I t was intended therefore, that the estimates given here should serve simply as a l i s t of the costs of sawlog debris as based on the information a v a i l a b l e . No attempt has been made to perform a d e t a i l e d a nalysis of the fi g u r e s — t h e i r purpose being p r i m a r i l y to point out the seriousness of some of the problems. 23. 3.2 Harbour Clean-up and Maintenance Each year subs tant ia l costs are incurred by harbour au thor i t i es i n an ef for t to minimize the numerous hazards to small boat navigat ion caused by the build-up of debris i n the r i v e r . Insofar as wood debris does not generally const i tute a serious hazard to large commercial t r a f f i c such as freighters and barges, the Harbour Commissions are not s t r i c t l y bound by l e g i s l a t i o n to the maintenance of debris c lear ing programs. The cost estimates that follow were obtained from discussions wi th representatives of the agencies involved . The Fraser River Harbour Commission i (1) In 1972, the Commission expended roughly $8,000 on the p u l l i n g and towing of deadhead sawlogs. (2) In 1972 , the costs of debris c o l l e c t i o n and burning at Annacis Is land were given as $42,000. The c o l l e c t i o n program at Annacis Is land focuses p r imar i l y on unsalvageable wood debr is . Most of the marketable sawlogs are salvaged p r i o r to burning. I t should also be noted that because clean-up costs are l a rge ly dependent on the volume of debris entering the lower r i v e r from upstream, they f luctuate year ly with the s i ze of the runoff. In contrast , the costs of p u l l i n g deadheads are r e l a t i v e l y constant due to the fact that the concentration of sawlogs i n the r i v e r varies for the most part wi th the volume of sawlogs transported i n and out of the mouth. Recent Greater Vancouver Regional D i s t r i c t a i r p o l l u t i o n by-laws (1973) have i n effect prohibi ted the burning phase of the Annacis Island operation and i t i s therefore l i k e l y that the immediate operational costs of the program w i l l be small u n t i l such time as an alt e r n a t e technique of disposal can be found. I t i s expected that the a d d i t i o n a l costs of disposing of the debris backlog w i l l be considerable i n view of the large volumes that have already accumulated. The North Fraser Harbour Commission (1) The North Fraser Harbour Commission (N.F.H.C.) maintains a comparable debris c o l l e c t i o n and burning program located at the North Arm J e t t y on Iona Island. In 1972, t h i s program operated at a cost of $80,000. (2) The N.F.H.C. also employed a tow boat 24 hours a day, 7 days a week, i at a cost of approximately $92,000 i n 1972. I t has been estimated by the Commission that 50 percent of the tug's operating time was spent p u l l i n g or towing deadheads and low f l o a t i n g sawlogs i n an e f f o r t to cl e a r the harbour. This represents a cost of $46,000. Department of P u b l i c Works The f e d e r a l Department of P u b l i c Works subsidizes the operation of an old paddle wheeler (Sampson) along the main arm of the r i v e r . I t i s estimated that 50 percent of i t s time i s spent p u l l i n g sawlog snags and deadheads at a cost to the f e d e r a l government of roughly $69,000 per year. Summary In 1972, a t o t a l of $245,000 was expended on e f f o r t s to c l e a r the Lower Fras River harbour area of assorted debris through c o l l e c t i o n and burning or deadhead and snag removal programs. Of t h i s t o t a l roughly $123,000 or 50 percent was spent e x c l u s i v e l y on c l e a r i n g sawlog debris, the concentration of which i s p r i m a r i l y dependent on log transportation a c t i v i t i e s i n the lower r i v e r and not on the debris volume c a r r i e d downstream by the f r e s h e t t e . Because a l l three of the agencies involved are government sponsored these harbour clean-up costs are i n d i r e c t l y borne by the p u b l i c through taxes. Considerably greater sums of money could conceivably be spent on debris c o n t r o l , however budget r e s t r i c t i o n s are presently the governing fa c t o r i n determining what percentage of the debris w i l l be removed and consequently what water q u a l i t y standards w i l l be maintained with respect to debris p o l l u t i o n . 3.3 Beach Clean-Up Both the Vancouver and West Vancouver Parks Boards set aside an annual budget to cover the costs of c l e a r i n g away and burning the excess debris that has accumulated on p u b l i c beaches during the spring. Because of the nature of the t i d a l flows and currents that run i n t o Burrard I n l e t much of the debris found on t h i s shoreline i s of Fraser River o r i g i n . Therefore, these costs have been included i n the study as follows: (1) Vancouver Parks Board's expenditures for 1972 were $40,000. (2) Comparable figures f or the West Vancouver Parks Board were $10,000. •26. 3.4 Damage to Tow Boats The costs described i n t h i s s e c t i o n are d i r e c t damage costs s u s t a i n e d by i n d i v i d u a l commercial tow boat owners op e r a t i n g i n the Lower Fr a s e r R i v e r area. The main cause of tow boat damage from d e b r i s i s the r e s u l t of c o l l i s i o n s w i t h submerged or p a r t i a l l y submerged sawlogs. Accidents of t h i s nature can r e s u l t i n bent or broken p r o p e l l e r s and s h a f t s , and i f weather c o n d i t i o n s are p a r t i c u l a r l y adverse, the l o s s of a prop can present a very s e r i o u s danger. Although o f f i c a l c o n f i r m a t i o n has not been giv e n , i t i s thought that the disappearance of the tow boat "Harrow S t r a i t s " (which r e s u l t e d i n both the l o s s of l i f e and l o s s of boat) was due to a p r o p e l l e r m a l f u n c t i o n caused by a c o l l i s i o n w i t h a sawlog i n heavy seas o f f the coast. The amount of damage i n each accident case i s dependent on the s i z e of the tug ( s i z e of the props, etc.) and the type of p r o t e c t i v e p r o p e l l e r guard (or l a c k of i t ) i n s t a l l e d on the boat. The frequency of accident i s r e l a t e d to the s k i l l of the operator and the type of work undertaken by the tug. In g e n e r a l , tow boats that yard booms, e s p e c i a l l y i n shallow water, i n c u r a g r e a t e r i n c i d e n c e of l o g damage than do those boats o p e r a t i n g i n the main channel. As a r u l e , the cost of r e p a i r v a r i e s w i t h the s i z e of the boat. The f i g u r e s l i s t e d here i n c l u d e the cost of working time l o s t due to r e p a i r s (opportunity cost) as r e f l e c t e d by the h o u r l y r e n t a l fee foregone w h i l e the tug i s out of s e r v i c e , as w e l l as the a c t u a l cost of r e p a i r . Repair jobs can range from $150 to over $1,000 f o r the l a r g e r boats. For purposes of th is study, three cost to ta l s are presented; a low estimate using the $150 f igure , a middle estimate using a $400 figure (the average repair cost calculated from quotes given by the 14 tow boat companies working the r i v e r ) , and a high estimate using the $1,000 f igure . Most tow boat companies take the damage costs r e su l t i ng from c o l l i s i o n s with sawlogs as natural hazards of the i r business. They r e a l i z e that a reduction i n the concentration of sawlogs i n the r i v e r which would perhaps r e l i eve some of these cos ts , would l i k e l y mean e i ther a slowdown i n towing a c t i v i t y or regulations requi r ing more responsible and perhaps more cos t ly log handling procedures. The fo l lowing re su l t s of a telephone survey which contacted the 14 major companies operating i n the r i v e r "gives an ind i ca t i on of the extent of the damages caused by sawlog c o l l i s i o n s : (1) A t o t a l of 90 boats were found to be a c t i v e l y working i n the Lower Fraser area. (2) Each boat incurred roughly 3 damaged props or shafts a year due to sawlog accidents . This f igure showed considerable v a r i a t i o n based on the type of protect ive equipment i n s t a l l e d and on the type of work being done by the boat. (3) A t o t a l count showed 253 repairs i n 1972. (4) Cost estimates for 1972: Medium High Low $ 38,000 $100,000 $253,000 These damage costs to tow boats do not f l u c t u a t e s i g n i f i c a n t l y each year. According to the operators, t h i s i s probably because most of the accidents are caused by h i t t i n g sawlogs and the concentration of t h i s type of debris i s dependent on the r e l a t i v e l y stable log transportation a c t i v i t y i n the r i v e r . 3.5 Damage to F i s h Boats and Equipment Fishermen are perhaps the most vocal objectors to concentrations of debris i n the r i v e r . Because of t h e i r frequent contact with the Lower Fraser while f i s h i n g , during d e l i v e r i e s to. canneries, or t r a v e l l i n g to and from moorage, fishermen frequently incur damages to t h e i r boats and equipment as a r e s u l t of accidents i n v o l v i n g l arge pieces of wood debris. Some fishermen are not insured against damage of t h i s type and i n most cases compensation from the responsible logging company i s impossible to obtain because of the d i f f i c u l t y involved i n proving who owned the piece of debris that caused the accident. Hence i n some cases, the costs of debris damage are borne by the i n d i v i d u a l boat owners. It i s very d i f f i c u l t to obtain an estimate of the damages incurred by fishermen as a r e s u l t of debris c o l l i s i o n s i n the Lower Fraser, however, insurance claims for debris damage as given by P a c i f i c Coast Fishermen's Mutual Marine can be used as a guide. Mutual Marine insures about 1,300 f i s h boats from a l l over the B.C. coast. In 1972, they reported 145 claims caused by c o l l i s i o n s with debris at a t o t a l cost of $32,588. These claims did not cover compensation for l o s t f i s h i n g time. 29. O f f i c i a l s of the Fishermen's Union estimate that at peak f i s h i n g times there are up to 1,000 boats making d e l i v e r i e s and c r u i s i n g i n the lower r i v e r . I f we take the accident frequency r a t i o and cost estimate c i t e d by Mutual Marine, and apply them to the 1,000 boats using the Lower Fraser, one a r r i v e s at a damage cost of approximately $25,000 per year. Discussions with fishermen i n d i c a t e that because t h i s estimate does not include the value of l o s t f i s h i n g time while the boat i s under r e p a i r , and because the fishermen damaged are not always able to claim f u l l compensation, t h i s f i g u r e of $25,000 i s s u b s t a n t i a l l y low. I t might be suggested therefore, that a f i g u r e of $100,000 i s perhaps more r e a l i s t i c i n terms of the above f a c t o r s . For purposes of t h i s report, $25,000 has been used as a low estimate, $100,000 as a high estimate, and an average of the two or about $63,000 as a middle estimate. 3.6 Damage to Pleasure Boats Marinas and moorage f a c i l i t i e s f o r pleasure c r a f t are r a p i d l y expanding along the Lower Fraser as i s the p o p u l a r i t y of r e c r e a t i o n a l c r u i s i n g i n the r i v e r . The inexperience and careless d r i v i n g of some boat owners and t h e i r general lack of f a m i l i a r i t y with the area r e s u l t i n a high frequency of "debris accidents".and high damage costs. Figures released by the B.C. Safety 14. Further, fishermen often sustain damages nets as a r e s u l t of debris and are u s u a l l y not compensated for t h i s cost. They claim that most of the boat damages are caused by c o l l i s i o n s with logs. Council revealed that damage costs i n the order of $300,000 accrued to B.C. pleasure boat owners during the 1967 season. Taking i n t o account the increased p o p u l a r i t y of boating since 1967 and the increase i n the number of boats moored i n the r i v e r , t h e damages to pleasure boats i n the Lower Fraser are thought to be s u b s t a n t i a l . Marina managers and boat owners complain b i t t e r l y about the hazards of entering and leaving the r i v e r as a r e s u l t of f l o a t i n g debris and uncontrolled sawlogs. Unfortunately, no figures are a v a i l a b l e to quantify the extent of these damage costs, and therefore, they have been omitted from the a n a l y s i s . i 3.7 Forest Service Burning Program In an e f f o r t to c o n t r o l the accumulation of debris along the Lower Fraser, the Forest Service has f o r the past two years undertaken a spring c o l l e c t i o n and burning program at various l o c a t i o n s along the r i v e r above Mission and below Hope. The cost of t h i s program for 1972 was roughly $40,000. Because the debris i n the r i v e r i s constantly s h i f t i n g , the effectiveness of t h i s type of burning program cannot be assessed other than to say that a c e r t a i n volume of wood was removed from the system. 3.8 Internal Losses to the Forest Industry To t h i s point we have been discussing those costs measured i n terms of economic losses which are incurred by groups external to the f o r e s t 15. Westwater Marina and Boating Study, Chris Nelson, 1972. 31. industry. However one important cost which i s r e f l e c t e d i n the market p r i c e of wood i s the consequence of an i n t e r n a l l o s s to the industry i t s e l f . Each year logging companies forego thousands of d o l l a r s i n revenue as a r e s u l t of sawlogs l o s t during t r a n s i t . Although the industry subsidizes the operation of a log salvage cooperative i n an attempt to recover some of t h i s l o s t revenue, the B.C. Forest Service estimates that only one-quarter of the l o s t 16 logs are ever returned to the market. These losses to the f o r e s t industry can be documented as follows. (1) Volume of sawlogs i n the Lower Fraser River during 1972 ( i n cubic f e e t ) : North Fraser Main Channel Hemlock Other Species Hemlock Other Species 78,418,000 145,635,000 52,752,000 136,972,000 (2) Volume of logs l o s t by industry using 5 percent l o s t f i g u r e s f o r Hemlock and 1 percent l o s s figures f o r other species ( i n cubic f e e t ) : Hemlock Other Species 6,558,000 2,826,000 (3) Although one-quarter of these logs are recovered by salvage, only 22 percent of the market value of these logs ever returns to the owners. The balance i s l o s t i n handling costs and salvage fees and can be considered a s o c i a l cost of log l o s s . " ^ This cost can be 16. Fraser River Debris Study, B.C. Forest Service Engineering D i v i s i o n , F i l e No. 026446, January 1971. 17. This 22 percent f i g u r e was obtained through discussions with o f f i c i a l s of Gulf Log Salvage Cooperative. 32. c a l c u l a t e d as follows. The volume of l o s t logs recovered by salvagers i n 1972 was roughly ( i n cubic f e e t ) : Hemlock Other Species 1,639,000 706,000 The 1972 market p r i c e of logs (to the m i l l ) averaged $47 per cunit f o r Hemlock and $50 per cunit f o r a l l other species. (This f i g u r e was c a l c u l a t e d from a l l three grades of marketed wood. I t should be pointed out that i n order to avoid double counting c e r t a i n s o c i a l costs, the stumpage value of these logs i s included i n t h e i r 18 market values. This assumes that the stumpage i s assessed p r i o r to a r r i v a l at the m i l l . ) Therefore the t o t a l value of the recovered logs i s : Hemlock Other Species $770,330 $353,000 Seventy-eight percent of t h i s f i g u r e represents the value l o s t to salvage costs: Hemlock Other Species $600,857 $275,340 Therefore the t o t a l s o c i a l cost of recovering these logs i s $187,197. Stumpage i s a government fee assessed against a l l logged trees. It serves as a kind of rent to the people f or harvesting the resource. cunit equals 100 cubic f e e t . 33. (4) The t o t a l value of the logs that are not recovered by salvagers can also be considered as a s o c i a l cost. This net loss f o r 1972 i s estimated at ( i n cubic f e e t ) : Hemlock Other Species 4,919,000 2,120,000 The revenue forgone from t h i s l o s s i s estimated to be approximately $3,371,930. Therefore i n 1972, the t o t a l cost to the industry a r i s i n g from l o s t logs was about 4.2 m i l l i o n d o l l a r s . 3.9 Cost Summary f o r 1972 (1) A summary of the measurable costs of wood debris i n the Lower Fraser. Low Medium High Harbour Clean-up and Maintenance 245,000 245,000 245,000 Beach Clean-up 50,000 50,000 50,000 Damage to Tow Boats 38,000 100,000 253,000 Damage to F i s h Boats and Equipment 25,000 63,000 100,000 Damage to Pleasure Boats 7 Cost of Forest Service Burning Program 40,000 40,000 40,000 Internal Losses to the Forest Industry 4,200,000 4,200,000 4,200,000 T o t a l $4,598,000 $4,698,000 $4,888,000 • 34. (2) Costs a s s o c i a t e d or a t t r i b u t a b l e to u n c o n t r o l l e d sawlogs. Low Medium High Harbour Clean-Up and Maintenance 123,000 123,000 123,000 19 Beach Clean-up Damage to F i s h Boats and Equipment (assumes 75% of the „~ damages are caused by sawlogs) 19,000 19,000 19,000 Damage to Pleasure Boats - — Fore s t S e r v i c e Burning Program I n t e r n a l Losses to the Forest Industry 4.200,000 4,200,000 4,200,000 T o t a l $4,377,000 $4,480,000 $4,651,000 Therefore the cos t s r e s u l t i n g from d e b r i s accumulating i n the Lower Fraser during 1972 t o t a l l e d roughly as f o l l o w s : Low $4.6 m i l l i o n Medium $4.7 m i l l i o n High $4.9 m i l l i o n These estimates do not i n c l u d e the damages to pleasure boats which are thought to be s u b s t a n t i a l l y h i g h . Unless measures are taken to r e v i s e current l o g han d l i n g p r a c t i c e s , these f i g u r e s are not l i k e l y to decrease i n f u t u r e y e a r s . 19. Marketable sawlogs are salvaged p r i o r to clean-up, t h e r e f o r e most of the cost i s devoted to removing other types of wood d e b r i s . 20. D i s c u s s i o n s w i t h fishermen and insurance a d j u s t e r s support t h i s 75 percent f i g u r e . 35. I t i s in te res t ing to note that i n 1972, sawlogs accounted for 80 percent of the volume of wood debris load coming down the Fraser , and were responsible for over 90 percent of the measurable costs tabulated above. Because the major proportion of sawlog debris i s contributed as a function of log transport and handling a c t i v i t y on the r i v e r , i t i s not expected that these figures w i l l vary s i g n i f i c a n t l y with the s i ze of the annual runoff. 36. CHAPTER 4: THE ENVIRONMENTAL IMPACTS OF SAWLOG DEBRIS 4.1 Introduction There i s considerable uncertainty associated with the extent of the environmental impacts of sawlog p o l l u t i o n i n the Lower Fraser r i v e r system. It i s thought that these impacts r e s u l t mainly from (1) the b u i l d up of bark on the r i v e r bed and shoreline, (2) the d i f f u s i o n of wood leachates 21 into the watercourses, and (3) the a e s t h e t i c a l l y u n a t t r a c t i v e appearance of some log storage areas and debris accumulations. This chapter describes the adverse environmental e f f e c t s of uncontrolled accumulations of sawlog debris and examines the extent to which the impacts of these accumulations are f e l t on the Lower Fraser. 4.2 Leachates Leachates from sawlogs generally take the form of tannins, wood sugars, n u t r i e n t s (nitrogen and phosphorus), or l i g n i n - l i k e substances. Soluble tannins and l i g n i n s often impart a yellowish brown colour to na t u r a l r e c e i v i n g waters and t h i s can have the e f f e c t of reducing the value of log holding areas f o r c e r t a i n r e c r e a t i o n a l a c t i v i t i e s . Experiments have shown that nearly a l l of these colour-producing materials are leached either from the bark or sawn ends of submerged logs as opposed to t h e i r 22 c y l i n d r i c a l surface area. The quantity of soluble organics contributed 21. Wood leachates are substances such as wood sugars, tannins and l i g n i n s that seep out of a log while i t i s i n the water. 22. The Influence of Log Handling on Water Qual i t y, U.S. Environmental Pro t e c t i o n Agency, EPA-R2-73-085, 1973. to the water i s dependent on the species of log, the amount of bark remaining i n t a c t , the surface area of the exposed log ends, and the c i r c u l a t i o n flow of the holding waters. For example, the more bark remaining on a log and the larger the exposed end area, the greater the amount of leachate withdrawn. With regard to c i r c u l a t i o n , a stagnant storage pond or slough w i l l b u i l d up a concentration gradient along the water-log i n t e r f a c e thus retarding the r a t e of leachate d i f f u s i o n . In contrast, logs accumulating i n n a t u r a l l y flowing r i v e r s and estuaries are subject to a continual interchange of water over log surfaces and consequently there i s l e s s l i k e l i h o o d of a concentration gradient b u i l d up. Thus the rate of d i f f u s i o n w i l l not be slowed and the logs w i l l give up much larger q u a n t i t i e s of tannins and l i g n i n s . This s i t u a t i o n i s t y p i c a l of the one i n the Lower Fraser where the leachates from most logs are constantly flushed by the t i d a l and current flows of the r i v e r . It should also be mentioned that the leaching rate does not s i g n i f i c a n t l y d i f f e r i n logs f l o a t i n g i n s a l i n e waters as opposed to f r e s h water. Leachates have been found to be r e l a t i v e l y non-toxic to salmon and trout f r y during exposure periods of up to four days. Similar 23 r e s u l t s have been found using adult sockeye salmon. Bark extracts do, however, exert a biochemical oxygen demand on holding waters, l a r g e l y due to the presence of soluble wood sugars and small q u a n t i t i e s of nitrogen and phosphorus. Even though a measurable quantity of biodegradable substances leach from f l o a t i n g logs, the s e v e r i t y of the p o l l u t i o n problem 23. E f f e c t s of Decaying Bark on Incubating Salmon Eggs, S e r v i s i , J.A., IPSFC, 1970. associated with any log accumulation depends upon the quantity of logs, t h e i r age and species, and the flow rate of the holding water. It therefore seems necessary to evaluate each s i t u a t i o n separately i f enviornmental costs are to be determined. Because of the c h a r a c t e r i s t i c a l l y large flow of water down the Fraser River, and the constant- f l u s h i n g a c t i o n of the t i d e s , i t i s not l i k e l y that colour, t o x i c i t y or bio-chemical oxygen demand from leachates w i l l present a serious problem unless large q u a n t i t i e s of uncontrolled logs are allowed to b u i l d up i n slow moving sloughs or back ponds. Even though the absolute q u a n t i t i e s of leachates are l e s s i n these stagnated areas due to the b u i l d up of a d i f f u s i o n gradient, the concentrations are higher and thus the detrimental e f f e c t s on f i s h and plant l i f e are p o t e n t i a l l y more dangerous. In view of t h i s f a c t , i t seems reasonable to suggest that the b u i l d up of soluble organic materials i n the absence of a c i r c u l a t i n g water flow, should be a c t i v e l y guarded against i n the management of log storage areas and debris accumulations along the Fraser, 4.3 Bark The repeated handling of logs during dumping, s o r t i n g , booming, transportation and storage, r e s u l t s i n the l o s s of considerable amounts of bark. This dislodged m a t e r i a l , which i s u s u a l l y deposited i n the r i v e r , e i t h e r becomes water saturated and sinks or i s washed ashore. The bark which s e t t l e s to the bottom of the r i v e r bed forms benthic deposits which may have deleterious e f f e c t s on acquatic organisms i n h a b i t i n g the benthic zone."""* These deleterious e f f e c t s can include (1) a demand f o r di s s o l v e d oxygen on the surrounding waters which reduces the a v a i l a b l e supply to other organisms, and (2) the covering or d i s r u p t i o n of bottom feeding areas and habitat. Generally speaking, the quantity of bark l o s t from a log i s dependent on two f a c t o r s . F i r s t l y , each species of timber e x h i b i t s d i f f e r e n t bark c h a r a c t e r i s t i c s . For instance cedar bark i s long and s t r i n g y aid i s e a s i l y dislodged whereas Pondorosa pine has r e l a t i v e l y t i g h t l y packed adherent bark. Studies have also shown that Douglas f i r bark i s quite susceptible 25 to s t r i p p i n g . Secondly, the dumping technique used to place logs i n the r i v e r i s an important determinant i n the amount of bark dislodged. The v e r t i c a l dump i s as might be expected, the most abrasive technique followed by sloped s l i d e and cable h o i s t operations. Therefore the method of dumping selected by industry can s u b s t a n t i a l l y a f f e c t the quantity of bark released i n t o a water source. The r a t e at which dislodged bark w i l l sink i s a f f e c t e d by the moisture content of the bark (density), the s i z e of the piece, and the rate at which water d i f f u s e s into the wood pores. Most pieces of bark w i l l f l o a t f or a short time before they e i t h e r soak up moisture and sink or wash ashore, 24. The benthic zone i s the top sediment layer of a lake or stream bed. 25. The Influence of Log Handling on Water Qual i t y , U.S. Environmental Protection Agency, EPA-RZ-73-085, 1973. 40. Bark accumulations are usual ly found l o c a l i z e d i n dumping and storage areas. Where the water flow i s slow, the bark w i l l tend to sink d i r e c t l y to the bottom and i s found uniformly d i s t r ibu ted over a l im i t ed space. However, i f the r i v e r current i s strong, the dislodged bark w i l l be deposited over a much wider area. I t i s important to note that the b i o l o g i c a l oxygen demand exerted on overhead waters as a r e su l t of the biodegradation of the bark i s dependent upon (1) the surface area of the benthic layer (not i t s depth), (2) the water temperature of the holding area (the rate of degradation decreases with a decrease i n temperature), and (3) the complex chemical composition of the bark. In view of the high current v e l o c i t y i n the lower reaches of the r i v e r , i t i s expected that dislodged bark from those storage and dumping s i t e s and sor t ing ponds located along the main channels w i l l be dispersed over a large area of bottom surface. Although th i s d i s t r i b u t i o n pattern i s l i k e l y to produce a higher BOD than would a concentrated deposi t , the large volume flow of the r i v e r acts to absorb much of the oxygen demand and r e l a t i v e l y cool water temperatures help to retard the rate of degrad-a t ion . Therefore i t i s u n l i k e l y that bark deposits along the faster flowing sections of the r i v e r w i l l cause a measurable oxygen sag. Any exceptions to th i s general condi t ion would most l i k e l y occur during low flow periods i n places where logs are allowed to accumulate or are stored i n sloughs or pack ponds which are i so la ted from the main channel of the r i v e r . One of the po ten t i a l costs of benthic bark deposits i s that they compete with f i s h and other benthic organisms for the ava i lab le oxygen 41. supply. This competition can endanger the s u r v i v a l of some species. In add i t i o n , bark can also cover f i s h feeding areas — a p o t e n t i a l hazard i n r i v e r s such as the Fraser where dislodged bark i s deposited over a large surface area and where the shalows of the r i v e r are used by young salmon f r y . These young f i s h , a product of the la r g e s t s i n g l e salmon run i n the world, make t h e i r way down the Fraser to the ocean over a period of one to two years, spending part of t h i s time feeding and r e s t i n g i n the shallower sections of the r i v e r . High density log storage and extensive transportation a c t i v i t i e s i n these c r i t i c a l feeding areas can exert considerable damage to these f i s h stocks. However to date no tes t s have been made to assess the magnitude of these damages on the Lower Fraser. 4,4 The Aesthetics of Sawlog Debris The accumulation of f l o a t i n g bark on beaches and shoreline areas and the presence of f r e e - f l o a t i n g sawlogs i n the r i v e r are judged by some i n d i v i d u a l s to be a e s t h e t i c a l l y u n a t t r a c t i v e elements of the r i v e r system and detrimental to the q u a l i t y of the nat u r a l environment. Bark deposits i n combination with old weatherworn sawlogs and other forms of logging waste, often clog up p o t e n t i a l l y valuable r e c r e a t i o n s i t e s along the r i v e r , thus 26 reducing the value of these areas to other users. This waste material i n many cases detracts from the scenic beauty of the r i v e r and can be removed 26. There i s a considerable opportunity cost associated with the water storage of logs. In some cases along the Lower Fraser, log booms are moored so close to the shoreline that they r e s t r i c t other a l t e r n a t i v e uses of the waterfront. A c t i v i t i e s such as boating and bar f i s h i n g are often l i m i t e d because of t h i s c o n f l i c t and although the Fraser River i s not a highly popular r e c r e a t i o n area at th i s time, the l o s s of opportunity associated with the foreclosure of these sections of the r i v e r should not be d i s -missed as an unimportant cost. Log booms have also been known to block access to commercial f i s h i n g areas and moorage sloughs. only at great expense. In ad d i t i o n , log booms are considered by some to be an eyesore to the r i v e r panorama. However, i t should be stressed that the perceived extent of any ae s t h e t i c damage to the r i v e r environment caused by sawlog debris i s e n t i r e l y dependent upon i n d i v i d u a l values and therefore measurement of the costs becomes extremely d i f f i c u l t . Apart from the d i r e c t problems of log l o s s , high-powered tow boats engaged i n salvage operations or booming, sometimes c r u i s e upriver i n close proximity to the shore. This a c t i v i t y tends to produce large washes which not only d i s t u r b the bottom gravel environment frequented by f i s h but 27 also add to the e f f e c t s of bank erosion. I t i s commonly accepted that there are s u b s t a n t i a l costs associated with the adverse environmental impacts of such p o l l u t a n t s as sawlogs and logging debris. These kinds of costs include such things as the p r i c e of destroying or damaging c e r t a i n components of the nat u r a l eco-system, the cost of f i s h k i l l s , the p r i c e attached to the de s t r u c t i o n of feeding areas for young salmon f r y , or the reduction i n s a t i s f a c t i o n experienced by r e c r e a t i o n i s t s or n a t u r a l i s t s when and i f t h e i r a c t i v i t i e s are impaired by wood debris. Generally speaking these types of costs cannot be accurately 27. Between 1885 and 1952, one farmer l o s t seven feet of r i v e r bank s o i l . Between 1952 and 1961, 20 feet were eroded. The most recent measure-ment showed that between 1961 and 1972, 32 feet had washed away. He a t t r i b u t e s much of t h i s erosion to the expanded a c t i v i t y of towboats adjacent to his waterfront since when one consults the runoff records no corresponding c o r r e l a t i o n between natural erosion and water l e v e l can be observed. Unfortunately, tow boat companies, well aware of the consequences of t h e i r actions and h o s t i l e reactions of the af f e c t e d farmers along the r i v e r , continue to operate t h e i r boats close to the banks. quantif ied because of the d i f f i c u l t i e s involved i n measuring the extent of the impact and expressing th is impact i n some form of cost u n i t . Further, i t remains a question of judgement as to what value should be u l t imate ly attached to these natural amenities. Therefore rather than attempt to estimate a f igure for the cost of the environmental de te r iora t ion caused by sawlog p o l l u t i o n , th i s study feels that decisions of t h i s type should be l e f t to p o l i t i c i a n s , where adverse environmental impacts can be re la ted to the i r costs through the expression of i n d i v i d u a l preferences i n the p o l i t i c a l process. i Although i t i s not known how s ign i f i can t the environmental costs of sawlog debris are i n comparison to the quant i f iable costs , i t i s thought that they are important enough to warrant serious consideration i n any analysis used to determine the appropriate a l l o c a t i o n of the r i v e r ' s resources. 4.5 Summary In most areas of the r i v e r , decomposing bark deposits do not present a problem i n terms of the i r demand on the ava i lab le oxygen supply. These deposits may however cover salmon feeding areas, and studies should be undertaken to determine more p rec i se ly the extent and s igni f icance of the spec i f i c s i t ua t i on on the Lower Fraser . Because of the large flow of the r i v e r , leachates from log accumulations do not appear to be adversely affect ing the water q u a l i t y ; however, care should be taken to avoid the b u i l d up of logs i n slow moving sloughs. There i s some evidence to indicate that debris r e s t r i c t s the use of some shoreline areas for recrea t ional purposes, but here once again, further studies are needed to es tab l i sh the extent of these c o n f l i c t s . F i n a l l y , while sawlog debris i s considered by many to be a contr ibut ing factor to the de te r io ra t ion of the 'aesthetic qua l i ty of the r i v e r environment, i t remains a p o l i t i c a l judgement as to value of these perceived damages. 45. CHAPTER 5: THE INSTITUTIONAL CAUSES OF SAWLOG DEBRIS Part 1: Market F a i l u r e 5.1 Introduction The evidence presented i n the preceding chapters demonstrates that one user of the Fraser River, the f o r e s t industry, imposes s u b s t a n t i a l costs on other users. Two preliminary hypotheses can be suggested on the basis of thi s evidence. One i s that society's resources are being a l l o c a t e d i n e f f i c i e n t l y . Another i s that the costs and be n e f i t s of resource use, p a r t i c u l a r l y the r i v e r resource, are not being d i s t r i b u t e d equitably. That these are hypotheses and not judgments has to be emphasized; the burden of t h i s and the following chapter i s to adduce further evidence, both t h e o r e t i c a l and em p i r i c a l , i n support of these hypotheses. This chapter examines the r o l e of markets with respect to common property resources. The following one turns to a discussion of the non-market network of j u r i s d i c t i o n a l and administrative i n s t i t u t i o n s presently i n f l u e n c i n g the management of sawlog debris i n the Lower Fraser region. Although there are two aspects to t h i s problem of i n s t i t u t i o n a l f a i l u r e , equity, and e f f i c i e n c y , they should not be viewed as d i f f e r e n t problems. They are d i f f e r e n t aspects of the same problem. The e s s e n t i a l unity of purpose underlying market and non-market processes has to be stressed repeatedly: one i s not an adjunct of the other. In examining the r o l e of markets i n t h i s chapter we s h a l l look f i r s t at the way i n which an i d e a l i z e d market operates and then examine conditions 46. which cause markets to f a i l and the impl ica t ions of t h i s . F i n a l l y , the i dea l i s compared to the actual s i t ua t i on on the Lower Fraser . 5.2 How Markets Function The pr ivate sector of the economy consists of the exchange of goods and services among i n d i v i d u a l c i t i z ens or p r i va t e ly owned businesses. In contrast , the publ ic sector concerns those transactions undertaken by the government of the day on behalf of the people. Any place or arrangement whereby these goods and services are transferred can be defined as a market i and the exchange rate i s ca l l ed the p r i c e . In the process of exchange, buyers given the i r taste preferences and incomes, make known i n the market the i n t ens i ty of t he i r wi l l ingness to pay for a p a r t i c u l a r good or s e rv ice . This behaviour can be p lo t ted as a demand curve. S i m i l a r l y , s e l l e r s , given the structure of t he i r cos ts , d isplay i n the same market the i r wi l l ingness to make ava i lab le cer ta in quant i t ies of goods at various a l t e rna t ive p r i c e s . This a c t i v i t y can be comparably expressed by a supply curve. In a market s i t ua t i on these desires i n t e r a c t . Se l l e r s seek high pr ices for the i r goods and are w i l l i n g to increase the amount ava i lab le to the consumer only i f the p r i ce goes up. Conversely, buyers pursue lower pr ices and w i l l consent to purchase more only i f the p r i ce goes down. An equi l ibr ium pr i ce i s established where the amount producers want to s e l l equals the amount consumers want to buy. However a number of conditions must be met before the pr iva te market economy w i l l function e f f i c i e n t l y wi th respect to the a l l o c a t i o n of soc ie ty ' s resources. They can he summarized as fo l lows: (1) Perfect competition i n a l l sectors , i . e . , many buyers and s e l l e r s . (2) Increasing costs to sca le . (3) The exclusion of external e f fec ts . (4) An absence of publ ic goods. (5) Complete knowledge and access to information wi th regard to the consequences of a l t e rna t ive decis ions . (6) Complete mob i l i t y of resources. The extent to which the market system adheres to these conditions w i l l determine the extent to which those goods and services demanded by consumers are produced i n the quant i t ies wanted and i n the cheapest way poss ib le . 5.3 Pr iva te Versus Soc i a l Costs and Benefits In a smoothly functioning pr iva te market the costs to society of sa t i s fy ing the various consumer demand preferences are embodied i n the supply curves. Consequently when the market reconci les demands and supplies i t ensures that everything which i s produced y i e l d s benefits to buyers which exceed the i r costs of production. The costs of producing a pa r t i cu l a r good or service can be described as the pr iva te costs of production and they are borne generally by those ind iv idua l s responsible for the production a c t i v i t y . 48. Soc ia l costs , on the other hand, can be defined as the sum of the d i s u t i l i t i e s that a l l members of society bel ieve they incur as a resu l t of the production of a p a r t i c u l a r good or se rv ice . The costs that an i n d i v i d u a l or pr iva te f i rm may incur while seeking the i r own personal benefit through the production of a marketable commodity may be s i g n i f i c a n t l y d i f ferent from the costs incurred by society as a whole. In cases where these two costs diverge and decisions to a l loca te resources are based e n t i r e l y on a supply curve composed only of pr iva te costs , then the a l l o c a t i o n of resources w i l l be non-optional from a s o c i a l perspect ive. The i n e f f i c i e n t and sometimes inequi table resu l t s of th i s s i t u a t i o n can take the form of an overproduction or underproduction of some goods and services and/or no production at a l l of other s o c i a l l y worthwhile products. I f the pr iva te sector were to function according to the prescribed conditions for optimal market e f f i c i e n c y , then pr iva te and s o c i a l costs would be the same. However, because some pr iva te markets do not meet the e x i s t i n g requirements, there w i l l always be some divergence between the pr iva te costs upon which production decisions are based, and s o c i a l costs . In other words, i n choosing to exp lo i t a p a r t i c u l a r resource, an i n d i v i d u a l or f i rm w i l l often take in to account only what they p r iva t e ly have to give up i n order to use the resource and ignore what a l l the other members of society are forced to s a c r i f i c e as a consequence of that dec i s ion . Two charac te r i s t i c s ofthe e x i s t i n g market structure — the existence of common property resources and the resul tant presence of e x t e r n a l i t i e s , are of p a r t i c u l a r in te res t to our discussion of how pr iva te and s o c i a l costs diverge with respect to cer ta in aspects of resource a l l o c a t i o n i n the Lower Fraser area. 49. 5.4 Market F a i l u r e : E x t e r n a l i t i e s For markets to operate e f f i c i e n t l y , a l l benefits and costs r e su l t i ng from a given act ion have to be absorbed by the group or ind iv idua l s responsible for that ac t ion . This "exlusion p r i n c i p l e " can be interpreted to mean that any benefits or costs r e su l t i ng from the transfer of a commodity, must accrue only to those par t ies c o n t r o l l i n g the t ransfer . R e a l i s t i c a l l y however, goods and services often flow to ind iv idua l s or firms whether they l i k e i t or not . They cannot pay to avoid them nor do they have to pay for the i r use. For example, the a c t i v i t i e s of a f i rm may have undesirable effects on other ind iv idua l s or groups who are t o t a l l y removed from i t s operat ion. These external effects are referred to as ex t e rna l i t i e s or s p i l l o v e r s , and they represent the unintended side effects of an act ion or process. I f we accept the fact that each par t i c ipan t i n some system has a production or u t i l i t y function that re la tes various states of the system to i n t e rna l measures such as p r o f i t s or s a t i s f a c t i o n , i t i s c lear that there are many cases i n which one i n d i v i d u a l ' s actions i n "doing h is thing" enter in to the production function(s) of other i n d i v i d u a l s . For example, a neighbour's tree shades my yard as w e l l as h i s own (I may consider t h i s good or bad depending on how I l i k e shade); my s p i r i t may be l i f t e d by the sight of an elegant bu i ld ing or dashed by that of an a rch i t ec tu ra l d i sas te r . E x t e r n a l i t i e s that have s o c i a l cost consequences may operate through the market or i n other cases where a p a r t i c u l a r act ion produces adverse resul ts for various external pa r t i e s , the costs of th i s act ion can be 50. transferred from the decis ion uni t pursuing the act ion to an independent sector v i a a technica l or phys ica l l inkage and not by a market t ransact ion. In th is sense, the market system f a i l s to account for these costs (which may take the:; form of damage to property or possessions, a loss of income, or a reduction i n one's l e v e l of sa t i s fac t ion) during the regula t ion of transactions between buyers and s e l l e r s . I t can be sa id that external effects are often the d i r ec t r e su l t of p a r t i c i p a t i o n i n a common property resource and that t h e o r e t i c a l l y , ex t e rna l i t i e s do not occur i n t he i r absence. When the external effects are i n the form of costs , then one resu l t i s i ne f f i c i ency and a "Tragedy of the 28 Commons". A second resu l t can be the r e d i s t r i b u t i o n of income i n that the costs or benefits of the act ion are passed on to external p a r t i e s . 5.5 Market F a i l u r e : Common Property Resources The Fraser River i s a p u b l i c l y owned common property resource. As such, i f one person or group benefits from i t s use, t h i s opportunity cannot be withheld from other groups wishing to do the same. For example, the publ ic (which includes the forest industry) has the r igh t to transport or store logs i n the r i v e r , f i s h i n i t , swim i n i t , or jus t enjoy i t i n i t s na tura l s ta te , subject to the various constraints imposed on these basic r igh ts by the ex i s t ing l e g a l or j u r i s d i c t i o n a l framework. Each i n d i v i d u a l or group using the r i v e r w i l l do so i n a way that maximizes h i s personal u t i l i t y or 28. The Tragedy of the Commons, Garrett Hardin, Science, 162, December 1968. 51. s a t i s f a c t i o n . I t i s also true that each group entering the market perceives an opportunity or r igh t to benefit at the same l e v e l of u t i l i t y as a l l other groups presently using the r i v e r . Therefore each user r a t i o n a l l y finds i t to h i s advantage to increase output to the point where the extra gain from doing so equals the cost of the extra output. The t o t a l effect of these pr ivate decisions on the r i v e r system may i n time be detrimental because none of the i n d i v i d u a l users finds i t i n h i s own in te res t to moderate h i s a c t i v i t y to the point where the resource i s preserved, even though i t i s i n the in teres ts of a l l users c o l l e c t i v e l y to do so. The outcome i s that a l l users become worse off than before as a resu l t of the de te r iora t ion of the resource. i i In e f fec t , u t i l i t y maximizing groups faced wi th a competitive s i t u a t i o n invo lv ing a common property resource, can and often do, act contrary to t he i r 29 own in t e r e s t s . This phenomenon i s termed a c o l l e c t i v e act ion and represents the aggregate outcome of a number of i n d i v i d u a l dec is ions . Such ac t ion can have disastrous and t r ag ic consequences for the s u r v i v a l of the common property resource and the surrounding environment. I t i s useful to look at th i s problem i n terms of what i t means for the productive value , or economic rent , generated by the resource. Economic rent i s usual ly defined as the returns to the factor of production i n excess of i t s opportunity cost , i . e . , what i t could make i n the next a l t e rna t ive use. Rents are being generated by the fishermen, logging companies, and r ec rea t ion i s t s . 29. Monopolist ic Competition, Edward H. Chamberlin, 6th e d i t i o n , 1950. that are presently using the r i v e r , but because the resource i s common property, the tendency for each user to over-use the resource resu l t s i n the d i s s ipa t ion of these rents . With a s ingle owner or manager, rents could be c o l l e c t e d , traded of f , and transferred to the publ ic sector . I f no rent i s paid or co l l ec ted then the consumption of the resource i s 30 therefore not l i k e l y to be at the most e f f i c i e n t l e v e l . This idea may be more c l e a r l y i l l u s t r a t e d by posing a simple a l l ego ry . Consider a s i t ua t i on where a r i v e r i s owned by a s ingle i n d i v i d u a l whose objective i s to maximize h i s returns by using the r i v e r to i t s f u l l advantage. He has several customers competing for the use of the water as fo l lows: (1) A logging company who wishes to store logs i n the r i v e r . I f they are allowed to store them as f l a t r a f t s , which w i l l cost l ess to assemble, they w i l l be w i l l i n g to pay a higher rent for the storage space than i f they are required to store them as bundles, which are considerably more expensive to handle. (2) A group of fishermen who are w i l l i n g to pay a percentage of t h e i r p ro f i t s i n exchange for the r igh t to f i s h the r i v e r . However, they w i l l pay a higher r en ta l fee i f they can be guaranteed that a l l the logs i n the r i v e r w i l l be stored i n bundles. This i s because i f the logs are rafted they present numerous hazards to the fishermen, thus making i t more expensive for them to carry on business. (3) An environmental club whose members are w i l l i n g to pay a sum i n exchange for a guarantee that the r i v e r w i l l be l e f t unused i n i t s natura l s ta te . 30. Managing Water Q u a l i t y : Economics, Technology, I n s t i t u t i o n s , Knesse and Bower, 1968. 5 3 . (4) F i n a l l y , a f i s h and game club who w i l l pay a user fee to permit sport f i s h i n g on the r i v e r . They w i l l pay a higher rent i f they can be assured access to the good f i sh ing bars (no log booms blocking the way) and a minimum amount of competition from the commercial f i s h boats. In view of these ava i lab le sources of revenue, the owner must trade off the rent values (which represent the demand for the resource i n various uses) , and apportion the r i v e r to these users i n such a way that h i s benefi t i s maximized. I t i s l i k e l y that under these circumstances the r i v e r resource w i l l be a l loca ted among the competing users i n the most e f f i c i e n t pattern according to the market p r i n c i p l e of "them that pays the most gets the most". In the l i g h t of t h i s example, the Fraser appears as a commonly owned resource where: (1) Rents for resource use are not being assessed even though they may e x i s t . (2) These rents are not being captured due to the absence of an i n s t i t u t i o n a l framework to c o l l e c t them. (3) The ava i lab le rents from competing users are not being traded off by any kind of cen t ra l management agency or s ingle owner. Under such a s i t ua t i on a "management i n tenure" does not ex i s t and the t o t a l p roduc t iv i ty of the resource i n a l l uses i s not taken into considerat ion. Once again, the resu l t i s often the i n e f f i c i e n t use of the common property. 5.6 The A l l o c a t i o n of Resources on the Lower Fraser The var ied a c t i v i t i e s of the forest industry along the Lower Fraser have c h a r a c t e r i s t i c a l l y generated uncontrolled waterborne sawlogs as an acc iden t i a l by-product of the i r processes. These sawlogs have had numerous cos t ly effects on other r i v e r users who remain "external" to the act ion of the indust ry . In many cases, these costs which have been described i n the previous chapters, are transferred v i a the phys ica l l inkage of the r i v e r system — a resource common to the a c t i v i t i e s of a l l par t ies concerned. More important, however, i s the fact that the forest industry does not take these external costs associated wi th the i r production in to consideration when making decisions re la ted to production l e v e l s . When s p i l l o v e r s do occur, the supply curve for forest products f a i l s to capture a l l of the s o c i a l costs of production. Consider for example the case of an i n d i v i d u a l logging f i rm which "acc iden ta l ly" po l lu tes the r i v e r wi th sawlogs. I t s supply curve, whi le i t captures the i n t e r n a l costs of cut t ing and transport ing the logs as w e l l as loos ing a few, f a i l s to account for the costs of the resul tant p o l l u t i o n , which may include damages to f i s h boats, r e s t r i c t e d recrea t ional oppor tuni t ies , the costs of clean-up or aesthetic damages to the r i v e r environment. One b r i e f example of market f a i l u r e with regard to the a l l o c a t i o n of water resources, concerns the natural capacity of a common property r i v e r system such as the Fraser , to ass imi la te res idua l wastes. This cha rac t e r i s t i c i s extremely valuable and i f no pr ice i s placed on th i s se rv ice , the system w i l l eventually be overused; the r i v e r w i l l take on the function of a giant waste receptacle; f i s h w i l l d i e ; boats w i l l be damaged, and aesthet ic values associated with a natural environment w i l l dec l ine . Presently no rent i s being co l lec ted from the forest industry against the use of the a s s imi l a t ive capacity of the r i v e r to absorb sawlogs and other forms of wood pol lu tants r e l a t i v e to the surplus revenue that could be captured i f the water were used for other purposes. In effect then, the "free" market as presented here, w i l l l i k e l y produce too many logs and the p r i c i n g system used, because i t does not include the f u l l range of production and s o c i a l costs , w i l l not accurately r e f l ec t t h e i r true s o c i a l value. Thus, the timber resource w i l l t heo re t i ca l l y be used i n a non-optimal way such that too many of soc i e ty ' s resources are a l located to the production of forest products. The re su l t i s a misa l loca t ion of resources, ecnomic i n e f f i c i e n c y , and a free market performance which f a i l s to conform to the s o c i a l optimum. Therefore, i f the forest industry continues to exclude the i r external costs of production from the i r i n t e rna l decis ion processes, e f fec t ive se l f - regu la t ion and control of sawlog p o l l u t i o n l eve l s i n the r i v e r w i l l not l i k e l y be developed and society w i l l continue to suffer under the mismanagement of t he i r own resources. 56. 5.7 Summary The e x t e r n a l i t i e s of the f o r e s t industry appear to be s i g n i f i c a n t i n the Lower Fraser area and no compensation i s presently paid to those p a r t i e s external to the industry who are being damaged. Furthermore, these and other s o c i a l costs of wood production are not r e f l e c t e d i n the standard p r i c e structure for f o r e s t products. F i n a l l y , because of the common property nature of the r i v e r resource and the lack of an e f f e c t i v e management i n tenure arrangement, economic rents charged against the use of the water are not being c o l l e c t e d or traded o f f and consequently c e r t a i n services o f f e r e d by the r i v e r , such as logging waste a s s i m i l a t i o n , are being overused r e l a t i v e to the balancing of s o c i a l costs and b e n e f i t s . In t h e i r book, i 21 Managing Water Q u a l i t y , Knesse and Bower emphatically state that "a s o c i e t y that allows waste dischargers to neglect the o f f s i t e costs of waste d i s p o s a l w i l l not only devote too few resources to the treatment of waste, but w i l l also produce too much waste i n view of the damage i t causes". This would appear to c l o s e l y resemble the s i t u a t i o n presently faced by the f o r e s t industry i n the Lower Fraser River. The d i s c u s s i o n of economics to t h i s stage has hopefully i l l u m i n a t e d at l e a s t one point — that the e x t e r n a l i t i e s of the f o r e s t industry which have resul t e d from the common property nature of the r i v e r resource, are i n part responsible f o r the f a i l u r e of the r e a l l i f e market system to equate the p r i v a t e optimum with the s o c i a l optimum with regard to decisions a f f e c t i n g the use of p u b l i c l y owned trees and the water i n the Fraser River. 31. Managing Water Quality: Economics, Technology, and I n s t i t u t i o n s , Knesse and Bower, 1968. 57. Although th is study has not undertaken an analysis to prove that the current market i s functioning i n e f f i c i e n t l y i n i t s a l l o c a t i o n of these resources, the evidence considered to th i s point indicates that th i s may, i n fac t , be the case. Moreover, recent publ ic outcry over the ex i s t i ng debris problem can be seen as a publ ic re jec t ion of the way i n which the market system i s presently d i s t r i b u t i n g the assorted costs and benefits among various r i v e r users . •58. CHAPTER 6: THE INSTITUTIONAL CAUSES OF SAWLOG DEBRIS P a r t 2: P o l i t i c a l F a i l u r e 6.1 I n t r o d u c t i o n M a r k e t i n s t i t u t i o n s a r e n o t a l w a y s c a p a b l e o f r e s o l v i n g an i m b a l a n c e d d i s t r i b u t i o n o f c o s t s o r t h e p r o d u c t i o n i n e f f i c i e n c i e s g e n e r a t e d by t h e p r e s e n c e o f e x t e r n a l i t i e s . However, t h e marke t i s n o t t h e o n l y o r g a n i z a -t i o n a l arrangement t h r o u g h w h i c h t h e n e c e s s a r y c o o r d i n a t i o n among g r o u p s needed t o r e d u c e t h e s e s p i l l o v e r e f f e c t s may be a c h i e v e d . I f a l l a f f e c t e d p a r t i e s were t o n e g o t i a t e t h e n i t i s c o n c e i v a b l e t h a t some f o r m o f c o n t r a c t u a l o b l i g a t i o n c o u l d r e p l a c e p r i c e s as t h e means o f d e v e l o p i n g t h i s c o o r d i n a t i o n . A l t h o u g h one o f t h e a d v a n t a g e s o f m a r k e t s i s t h a t t h e y p r o v i d e a r e l a t i v e l y i n e x p e n s i v e means of c o o r d i n a t i n g b u y e r s and s e l l e r s , t h e r e may w e l l be c i r c u m s t a n c e s i n w h i c h t h e c o s t s o f a c h i e v i n g c o o r d i n a t i o n t h r o u g h some o t h e r p r o c e s s s u c h as b a r g a i n i n g o r l e g i s l a t i v e a c t i o n a r e 32 l e s s t h a n t h e c o s t s o f market a r r a n g e m e n t s . T h i s c h a p t e r w i l l examine some of t h e r e l e v a n t l e g i s l a t i o n and a d m i n i s t r a t i v e s t r u c t u r e s w h i c h have b e a r i n g on t h e p r o b l e m o f c o n t r o l l i n g s awlog d e b r i s . F i r s t , i n s t i t u t i o n s under f e d e r a l j u r i s d i c t i o n w i l l be examined f o l l o w e d by t h o s e under p r o v i n c i a l and l o c a l c o n t r o l . Then t h e p e r t i n e n t c i v i l l a w w i l l be d i s c u s s e d . S p e c i a l a r r a n g e m e n t s s u c h as t h e G u l f Log S a l v a g e C o r p o r a t i o n , and t h e Committee on U n c o n t r o l l e d W a terborne Wood Waste a r e a l s o r e v i e w e d . 32. C o n t r a c t u a l C h o i c e , Thomas D. C r o c k e r , N a t u r a l R e s o u r c e s J o u r n a l , O c t o b e r 1973, No. 4, p. 561. Two implications can be drawn from t h i s presentation. One i s that society i s not s a t i s f i e d with the r e s u l t s of the free market i n e i t h e r the e f f i c i e n c y of resource use or the d i s t r i b u t i o n of costs and b e n e f i t s . A second i m p l i c a t i o n i s that i n most cases the l e g a l and administrative c a p a b i l i t y evidently does not e x i s t to tackle the problem of sawlog debris. Where i t does e x i s t , i t i s not being adequately u t i l i z e d . In Chapter 5, using the terminology of economists, improper functioning of the market was c a l l e d market f a i l u r e ; here we s h a l l use an analogous term, p o l i t i c a l f a i l u r e , to express a judgement about the inadequate performance of l e g a l and administrative arrangements. 6.2 L e g i s l a t i v e Controls  Federal J u r i s d i c t i o n Federal j u r i s d i c t i o n over water management and shoreline development a r i s e s by v i r t u e of i t s exclusive l e g i s l a t i v e authority over navigation 33 34 and shipping, the sea coast and inland f i s h e r i e s , and the harbour properties transferred to i t at the time of the province's entrance into 35 Confederation. The exercise of these powers has r e s u l t e d i n two methods of c o n t r o l l i n g waterfront development and management — f e d e r a l harbour agencies, and f e d e r a l statutes bearing on waterfront a c t i v i t y . 34. 33. B.N.A. Act, s. 91(10). I b i d , s. 91(12). 35. Ibi d , s. 108. CI) Harbour Agencies Under the Third Schedule of the B.N.A. Act, section 108 transferred the property of p u b l i c harbours to the f e d e r a l government from the i n d i v i d u a l p r o v i n c i a l governments. As a r e s u l t , the f e d e r a l l e v e l gained c o n t r o l over shipping i n a l l navigable harbours and i n a d d i t i o n , held property r i g h t s i n those public harbours tr a n s f e r r e d to i t by the B.N.A. Act. F e d e r a l l y commissioned harbour a u t h o r i t i e s were incorporated i n a number of these areas f o r purposes of administering f e d e r a l i n t e r e s t s i n both property and shipping. A commission was established f o r the New Westminster harbour one month a f t e r the incorporation of the 36 North Fraser Harbour Commission i n J u l y 1913. In order that a harbour be transferred to the f e d e r a l government at the time of the provinces's entry into Confederation, the harbour had to be used as such and only those parts which were used as a harbour were 37 tra n s f e r r e d . This included the foreshore and bed. What was not used 38 as a harbour remained the property of the province. What was and what was not used as a harbour i n 1867 or 1871 has always been d i f f i c u l t to determine. In view of t h i s d i f f i c u l t y , the fe d e r a l government and the province of B r i t i s h Columbia entered into the Six Harbours Agreement i n 1924 which s p e c i f i e d that the New Westminster harbour located on the Main Arm of the Lower Fraser was, and i s a harbour under Section 108 of the B.N.A. Act. Where the Six Harbours Agreement 36. S.C. 1913, c. 112. 37. The foreshore i s that land between high and low water. 38. See Gerard V. LaForest, Natural Resources and Public Property Under  the Canadian C o n s t i t u t i o n , (University of Toronto Press, 1969), c. 4. did not apply the f e d e r a l government retained i t s j u r i s d i c t i o n over shipping while the property r i g h t s i n the foreshore and bed went to the province. Because t h i s agreement did not include the North Arm of the Fraser, i t s foreshore and bed remains the property of the p r o v i n c i a l government. 39 In 1964, the Harbour Commission Act provided a v e h i c l e whereby i n d i v i d u a l l y incorporated harbour commissions could e l e c t to reorganize under a s i n g l e piece of l e g i s l a t i o n . The Fraser River Harbour Commission re-established i t s e l f under the Act i n 1964, however, the North Fraser Harbour Commission remained and s t i l l remains under the terms of i t s o r i g i n a l 1913 charter. Both commissions are established with considerable independence from l o c a l j u r i s d i c t i o n and from l o c a l p u b l i c sentiment — three members being f e d e r a l appointees and two selected by the unanimous consent of the surrounding municipal c o u n c i l s . The commissions are 40 responsible only to the f e d e r a l M i n i s t e r of Transport. \ The powers of the North Fraser Harbour Commission and the Fraser River Harbour Commission are extensive with respect to t h e i r p o t e n t i a l to c o n t r o l log transportation and storage. Because a major proportion of the logs destined f o r wood processing plants located on the r i v e r must pass through or be stored w i t h i n t h e i r j u r i s d i c t i o n s , t h i s lever of c o n t r o l i s s i g n i f i c a n t i n terms of i t s p o t e n t i a l to influence f o r e s t industry log tran s p o r t a t i o n methods. 39. S.C. 1965-65, c. 32. 40. I b i d , s. 212(2). A wide range of powers have been delegated to the Commissions through the i r respect ive federal s tatutes. For example, i n the case of the Fraser River Harbour Commission, l e g i s l a t i v e powers wi th the po ten t i a l to con t ro l log t ransportat ion and storage have been delegated from Parliament to the extent that : 13(1) A Commission may, with the approval of the Governor i n Counc i l , make by-laws respecting the management of i t s i n t e r a l a f f a i r s and the duties of i t s o f f i ce r s and employees, and for the management and con t ro l of the harbour and the works and property therein under i t s j u r i s d i c t i o n , inc luding by-laws respect ing: (f) The t ranspor ta t ion, handling or s tor ing w i th in the harbour of explosives or other substances that , i n the opinion of the Commission, cons t i tu te or are l i k e l y to const i tu te a danger or hazard to l i f e or ! property. In that uncontrolled sawlogs which have escaped or have been l o s t from log ra f t s i n tow or storage do i n fact i n f l i c t considerable damage to personal property ( i . e . boats) , i t i s f e l t that logs should f a l l under the substances covered by th is sec t ion . Furthermore, the Commission i s enabled to undertake: 1 3 ( l ) ( i ) The regula t ion of a l l persons and vessels coming into or using the harbour, inc luding the imposi t ion and c o l l e c t i o n of . ra tes to be paid upon such vessels and upon goods landed from or shipped on board such vesse l s , or transhipped by water w i th in the harbour. This sect ion gives the Commission the power to apply rates against logs being transported through the harbour. This would appear to provide an opportunity to introduce discr iminatory charges on log transportat ion which would favour those companies using towing p r a c t i c e s considered s o c i a l l y acceptable i n terms of log l o s s . Section 13(1)(h) allows the imposition of a f i n e not to exceed $500 f o r the breach of any by-law. To date, both the Commissions have exercised t h e i r l e g i s l a t i v e powers with l i t t l e emphasis on the d e f i n i t i o n of log handling standards to s p e c i f i c a l l y c u r t a i l log l o s s . The Commissions are responsible f o r maintaining a navigable channel i n the harbour area i n cooperation with the Department of Public Works. To t h i s end both-Commissions support a deadhead c o l l e c t i o n program but since t h e i r main concern l i e s with the larger commercial t r a f f i c , the wood debris which i s hazardous to smaller boats often remains i n the r i v e r . The delegation of the q u a s i - j u d i c i a l f u nction to the Commissions as i t r e l a t e s to log storage i s embodied i n t h e i r r i g h t to lease water l o t storage space as property of the Crown "on behalf of Her Majesty i n 41 r i g h t of Canada." The d i s c r e t i o n a r y power to grant water l o t leases for the purpose of log storage i s subject to the respective by-laws of the Commissions and t h e i r current p o l i c y covering log storage. The offshore storage of logs also a f f e c t s the r i p a r i a n r i g h t s of the waterfront or upland owner(s) adjacent to the leased water l o t i f the logs impede the r i g h t of access to the property by water. Therefore before the Commission i s permitted to enter i n t o a lease agreement, the tenant must produce a 41. R.S.C. 1964-65, s. 11(2). l e t t e r of permission from the upland owner. In many cases the tenant or logging f i r m i s also the upland owner above the water l o t and t h i s agree-ment i s not required. I t i s f e l t that the Commissions could exercise greater c o n t r o l over the way i n which logs are transported through the r i v e r . This could be achieved by permitting only those logs which are boomed i n a manner that would reduce log loss during t r a n s i t and storage, to enter the harbour. Furthermore although the regulatory and l e g i s l a t i v e powers a v a i l a b l e to the commissions appear to be adequate to e f f e c t a reduction i n sawlog los s i n the lower r i v e r , they could perhaps be more e f f e c t i v e l y applied and more fr q u e n t l y tested, e s p e c i a l l y with regard to the imposition of f i n e s f o r the breach of by-laws. (2) Federal Statutes 42 The Navigable Waters Pro t e c t i o n Act has t r a d i t i o n a l l y been used as a means of c o n t r o l l i n g shoreline b u i l d i n g and water structures to safeguard navigable channels. However i t i s noteably s i l e n t with respect to the pro t e c t i o n of small c r a f t from f l o a t i n g wood deb r i s . With water q u a l i t y as an i n c r e a s i n g l y popular topic of public 43 di s c u s s i o n , the F i s h e r i e s Act has frequently been used as a means of regulating water-related a c t i v i t y . Since 1971 t h i s Act has been administered by the Department of the Environment. Section 33 pertains to those parts 42. R.S.C. 1970, c. N-19. 43. R.S.C., 1970, c. F-14. of the r i v e r flowing past developed areas. Under subsection 1, i t i s unlawful to discharge any "deleterious substance" into the water or allow such to run o f f the land into the water. Although "deleterious substance" i s not defined and i t remains the o b l i g a t i o n of the prosecutor to prove the nature of the substance, subsections 2 and 3 sp e c i f y chemical substances, (tannins or l i g n i n s ) , logging slas h , and wood debris, as s i m i l a r l y being unlawful to allow to enter the water. I f these substances can be proved to be deleterious to f i s h and.the.party responsible f o r placi n g these materials i n the r i v e r subsequently i d e n t i f i e d , then a c t i o n can be i n i t i a t e d to r e s t r i c t t h e i r discharge.under t h i s Act. There are two main problems i n using t h i s l e g i s l a t i o n to prosecute i debris p o l l u t e r s . F i r s t l y , i t i s d i f f i c u l t i f not impossible to i d e n t i f y the source of f r e e f l o a t i n g wood deb r i s , with the exception of some marked sawlogs. The second disadvantage i s r e l a t e d to proving that the slash, sawlogs or leachates are dele t e r i o u s to f i s h . In the Lower Fraser, the a v a i l a b l e studies i n d i c a t e that because of the large flow, these substances are a problem only i n i s o l a t e d areas. Therefore i t i s not su r p r i s i n g to f i n d that evidence to support a case of t h i s nature has not as yet been presented i n the Lower Fraser River. P r o v i n c i a l J u r i s d i c t i o n P r o v i n c i a l authority i n matters of shoreline use a r i s e s from the province s j u r i s d i c t i o n over public lands belonging to that province 44. B.N.A. Act, s. 92(5); s. 109. 66. 45 and property and c i v i l r i g h t s . Even with these r i g h t s , the p r o v i n c i a l government does not have the same influence over water management as does the f e d e r a l government. Even where the e n t i r e harbour bed and foreshore i s owned by the province, the administrative r i g h t s of the f e d e r a l harbour commissions over shipping and navigation are paramount over the province's p r o p r i e t a r y r i g h t s . The province has made a p o t e n t i a l inroad i n t o the area of sawlog 46 c o n t r o l through the B r i t i s h Columbia P o l l u t i o n Control Act which enables 47 a P o l l u t i o n Control Board to set water and e f f l u e n t standards. Section 5(1) states that "no person s h a l l discharge sewage or other waste materials on, i n , or under, any land or into any water without a permit or approval from the D i r e c t o r " . To date logging companies are not required to obtain a permit'fro the " a c c i d e n t a l " discharge of sawlogs i n t o the Fraser River due to the f a c t that i n most instances an intent to discharge i s not i n evidence. A l e s s frequently used Act but c e r t a i n l y one with p o s s i b i l i t i e s f o r 48 some c o n t r o l , i s the P r o v i n c i a l Health Act. Section 6 of t h i s Act o u t l i n e s the powers of the Lieutenant-Governor i n Council i n respect to 49 health. He i s empowered to "present and remove nuisances", inspect and l i c e n c e canneries and any f a c i l i t y which processes f i s h ^ and f i n a l l y , he 45. I b i d . , s. 92(13). 46. S.B.C., 1967, c. 34. 47. I b i d , s. 4(a,b). 48. R.S.B.C., 1960, c. 170. 49. I b i d . , s. 6(d). 50. I b i d . , c. 6(1). i s responsible for the "prevention of the p o l l u t i o n , defilement, d i s c o l o u r a t i o n , or f o u l i n g of a l l lakes, streams, pools, springs, and waters".^"'" This would include the e f f e c t s of leachates from water stored logs. 52 The B r i t i s h Columbia Environment and Land Use Act i s an attempt to bring environmental and land use questions into a public forum. I t has an educational f u n c t i o n i n that i t establishes a cabinet l e v e l committee whose duty i s to f o s t e r p u b l i c concern and awareness of the 53 environment. More s i g n i f i c a n t i s i t s power to hold public hearings on 54 environmental and land use issues. This section i n p a r t i c u l a r could be used as an avenue for p u b l i c input into decisions and discussions formerly reserved f o r the o f f i c e s of the Commissions, planners or bureaucrats i n Ottawa. The cabinet i s also given the power, on recommend-a t i o n of the Committee, to make such orders respecting the environment as may be advisable, notwithstanding any other Act or r e g u l a t i o n . The a c t u a l functioning and operation of t h i s committee has only j u s t begun and i n view of t h i s , i t i s d i f f i c u l t to determine what i t s e f f e c t w i l l be on sawlog and debris c o n t r o l . J o i n t F e d e r a l - P r o v i n c i a l J u r i s d i c t i o n Whereas the Environment and Land Use Act i s an attempt to give the people an avenue i n t o the discussions on environmental matters, the Canada 51. I b i d . , s. 6 ( r ) . 52. S.B.C., 1971, c. 17. 53. I b i d . , s. 3. 54. I b i d . , s. 4. 55. I b i d . , s. 6. Water A c t J P i s an attempt to bring those persons together who are already involved. The Act i s designed to bridge the c o n s t i t u t i o n a l l i m i t a t i o n s imposed on both the f e d e r a l and p r o v i n c i a l governments, and i n essence, i t enables the two j u r i s d i c t i o n s to form a common policy-making structure for water management. Under t h i s l e g i s l a t i o n the Lower Fraser River could be designated a water management area and placed under the administration of a c e n t r a l management authority. Such an arrangement would p o t e n t i a l l y have the organizational c a p a b i l i t y to involve a l l concerned groups and a p p l i c a b l e l e g i s l a t i v e regulations i n an integrated program of sawlog c o n t r o l . i Local J u r i s d i c t i o n At present neither the Regional D i s t r i c t nor the l o c a l municipal governments bordering the r i v e r have any d i r e c t l e g i s l a t i v e or administrative c o n t r o l over sawlog de b r i s . However i t should be r e a l i z e d that the municipal l e v e l does c o n t r o l waterfront zoning and therefore could conceivably require that a l l wood processing plants proposing to locate on the r i v e r meet c e r t a i n procedural c r i t e r i a designed to reduce debris and log l o s s . To date no p o l i c i e s of t h i s nature have been developed. I n d i r e c t l y the Regional D i s t r i c t a i r p o l l u t i o n by-law which r e s t r i c t s open a i r burning has hampered the e f f o r t s of l o c a l harbour 56. R.S.C., 1969-70, c. 52. author i t i es to eliminate debris accumulations by burning. This has forced them to explore al ternate methods of disposal such as land f i l l i n g and smokeless burners. Research dealing wi th smoke free burners has i n recent years suffered from a lack of coordinated effor t on the part of a l l interested par i tes and as a consequence, harbour au thor i t i es responsible for debris d isposal are now faced wi th a subs tant ia l backlog of burnable mate r ia l . I t seems l o g i c a l that studies i n t h i s area should be i n t ens i f i ed i n view of the fact that a re laxa t ion of the a i r p o l l u t i o n by-laws would, not be i n the general publ ic i n t e re s t . Summary' Criminal prosecutions for sawlog or wood debris p o l l u t i o n under any of the environmentally oriented federal or p r o v i n c i a l statutes are noteably rare . Although there are a number of provis ions i n both the 57 58 Harbour Commissions A c t , and the Health Act that appear to contain su f f i c i en t l e g i s l a t i v e powers to con t ro l sawlog debr is , these are not being applied through the courts . I f wood waste could be proven deleter ious to f i s h as i s now suspected i n some cases, then the Fisher ies 59 Act could be used to prosecute the responsible pa r t i e s . However to date, cases of th i s nature have been the exception rather than the r u l e . 57. 58. 59. R . S . C . , 1965-65. R . S . B . C . , 1960. R . S . C . , 1970. I t might also be suggested that i f the B.C. P o l l u t i o n Act were to be expanded to include the " a c c i d e n t a l " l o s s of discharge of sawlogs, that a p o t e n t i a l avenue for r e g u l a t i o n would e x i s t i n that l e g i s l a t i o n . 61 Furthermore the Canada Water Act i f applied to the Lower Fraser River could prove e f f e c t i v e i n achieving some degree of coordination among these groups presently engaged i n sawlog c o n t r o l . The f a i l u r e to take advantage of t h i s a v a i l a b l e and p o t e n t i a l l y u s e f u l l e g i s l a t i o n i s evidenced by the continued high frequency of log los s i n the r i v e r . This s i t u a t i o n would seem to suggest that the e x i s t i n g l e g i s l a t i v e controls should be more frequently tested i n court and i f proven to be inadequate, s p e c i f i c l e g i s l a t i o n should be enacted to provide more e f f e c t i v e l e g a l t ools f o r the prosecution of "debris p o l l u t e r s " . 6.3 C i v i l Law Over the past few years, various groups using the r i v e r have become inc r e a s i n g l y concerned with the frequency and extent of "sawlog damage". Fishermen, boat owners, government o f f i c i a l s and environmentalists are now pointing accusing f i n g e r s at the f o r e s t industry with a greater r e g u l a r i t y than ever before. In response, industry i s quick to point 60. S.B.C., 1967. 61. R.S.C., 1969-70. out tha t a l a r g e percentage of the d e b r i s i n the r i v e r i s of n a t u r a l o r i g i n and consequent l y beyond t h e i r sphere of i n f l u e n c e . The l e g a l i t y of the c o n f l i c t l i e s i n the f a c t tha t (1) i n some cases l o g g i n g d e b r i s i s v e r y d i f f i c u l t to d i s t i n g u i s h from n a t u r a l d e b r i s , (2 ) when damage i s done to a boat through a c o l l i s i o n w i t h a p i e c e of d e b r i s , i t i s u s u a l l y ve ry d i f f i c u l t to s t o p , t u r n around and examine the p i e c e of wood as to i t s na tu re and o r i g i n , (3) i f i n some i n s t a n c e s a sawlog can be examined, t imber markings are o f t e n not v i s i b l e , thus making owner-s h i p i m p o s s i b l e to de te rmine . These f a c t s a l l p o i n t to the d i f f i c u l t y of o b t a i n i n g s u f f i c i e n t ev idence to support a cause of a c t i o n . L e t us assume however f o r purposes of d i s c u s s i o n tha t the ownership of the r e s p o n s i b l e p i e c e of d e b r i s can be p roven . Under the law of t o r t s , on l y p e r s o n a l r e l i e f f rom damages can be awarded e i t h e r th rough compen-s a t i o n or i n j u n c t i o n . Th is a c t i o n i s c o n t i n g e n t on the p l a i n t i f f p r o v i n g a case i n e i t h e r p u b l i c n u i s a n c e , p r i v a t e n u i s a n c e , n e g l i g e n c e , or a v i o l a t i o n of r i p a r i a n r i g h t . S ince r i p a r i a n r i g h t s are a p p l i c a b l e on ly .where there i s a p e r s o n a l ownership of w a t e r f r o n t p r o p e r t y , t h i s o p t i o n i s of l i t t l e use i n most i n s t a n c e s of d e b r i s damage. As was mentioned e a r l i e r , i n the s p e c i a l case of l o g s t o r a g e , l e s s o r s a re r e q u i r e d by the harbour commission a u t h o r i t i e s to o b t a i n the t r a n s f e r of r i p a r i a n r i g h t s from the upland owner p r i o r to the g r a n t i n g of a water l o t s to rage l e a s e . Where d e b r i s has accumulated on p r i v a t e w a t e r f r o n t to the ex tent that access to the l a n d from the water i s i m p a i r e d , a case f o r the v i o l a t i o n of r i p a r i a n r i g h t s does e x i s t , but because of the d i f f i c u l t i e s involved i n iden t i fy ing the responsible l ega l e n t i t i e s towards whom a su i t might be d i r ec ted , very few cases of t h i s nature ever appear before the courts . In the same v e i n , proof of negligence with respect to such things as log handling pract ices i s i n most cases impossible due to lack of su f f i i cen t evidnece. Although i r respons ib le or careless towing and booming procedures are often the d i r ec t cause of log l o s s , and more i n d i r e c t l y the cause of personal damages, only i n a very few cases where indisputable evidence has been produced i n support of the c l a im, has compensation for these damages been awarded through.the courts . S i m i l a r l y , nuisance su i t s are dependent upon proving damage to or infringement upon pr ivate property r i g h t s . An i n d i v i d u a l whose property i s phys i ca l ly damaged or where use and enjoyment of h i s property i s subs tan t ia l ly in terfered with by sawlog p o l l u t i o n so that the value of the property i s reduced, may br ing a pr iva te nuisance ac t ion against the persons responsible . Most "debris claims" involve damage to pr ivate property i n the form of boats and/or equipment, however, th i s use of that law i s not general ly successful once again because of the d i f f i c u l t y involved i n iden t i fy ing the responsible par ty. In the area of environmental degradation, not only does the p l a i n t i f f have the d i f f i c u l t y of proving ownership and r e s p o n s i b i l i t y , but also the added problem of measuring the extent of the damages. Unfortunately, c redible techniques for measuring damage to environmental or aesthetic qua l i ty have not been adequately developed to the point where they are widely accepted by the courts . How e f f e c t i v e are these p r i v a t e c i v i l remedies i n c o n t r o l l i n g sawlog p o l l u t i o n ? The answer would seem to be that they are not. F i r s t l y , they are designed to provide remedies for i n j u r i e s to p r i v a t e r i g h t s . The p l a i n t i f f must show that he has suffered damage beyond that suffered by the community at large. Even though sawlog and debris p o l l u t i o n c o n s t i t u t e a public nuisance or interference with a public r i g h t to c e r t a i n uses of the r i v e r , a p r i v a t e i n d i v i d u a l cannot take a c t i o n on behalf of any damaged group of users. The r i g h t to permit a c i v i l abatement ac t i o n l i e s s o l e l y with the attorney-general. It seems curious that as soon as p o l l u t i o n becomes widespread and o f f e n s i v e enough to cause concerned i n d i v i d u a l s to consider l e g a l a c t i o n , i t i s l i k e l y to be characterized as a p u b l i c , rather than p r i v a t e wrong and i n d i v i d u a l s not " s p e c i a l l y a f f e c t e d " are without remedy. Moreover, the requirement of s p e c i a l or p a r t i c u l a r damage cannot be circumvented by an i n d i v i d u a l bringing an a c t i o n as representative of an a f f e c t e d c l a s s such as fishermen. Even where each boat owner can show ph y s i c a l damage as a r e s u l t of debris, a representative c l a s s a c t i o n cannot be brought since the i n j u r y must be p e c u l i a r to each person alone. This would leave the d e c i s i o n to i n i t i a t e a c t i o n to the d i s c r e t i o n of the p r o v i n c i a l attorney-general. But i s i t reasonable to expect a p r o v i n c i a l government to vigorously pursue i t s duties as guardian of the p h y s i c a l environment when i t i s at the same time resource owner, and through lessees and l i c e n c e e s , resource developer? This f a c t o r along with the burden of proof and the need i n many environmental cases to provide t e c h n i c a l expertise (which because of larger f i n a n c i a l resources generally are more r e a d i l y a v a i l a b l e to the defendent), have served to l i m i t the eff e c t i v e n e s s of t o r t law when applied to cases of wood debris p o l l u t i o n . Furthermore, i t should be apparent that even i f the cumbersome and often expensive l e g a l procedures of the courts are within the a v a i l a b l e means of an i n d i v i d u a l or group seeking r e l i e f from the damages of log debris p o l l u t i o n , the p r o b a b i l i t y of r e c e i v i n g a favourable d e c i s i o n i s extremely low. I t i s however c l e a r beyond a doubt that the mere presence of f r e e - f l o a t i n g uncontrolled sawlogs i n the r i v e r remains the sole r e s p o n s i b i l i t y of the f o r e s t industry, i r r e s p e c t i v e of the unfortunate f a c t that no r e a d i l y r e l i a b l e recourse f o r damage compensation or p o l l u t i o n abatement e x i s t s w i t h i n the present framework of the c i v i l law. 6.4 Special Bodies The Gulf Log Salvage Cooperative The present system of log salvage i n B r i t i s h Columbia was established 62 under section 150 of the Forest Act (1960). Only the holders of a v a l i d log salvage permit have the r i g h t to salvage logs w i t h i n the boundaries of the Vancouver Log Salvage D i s t r i c t , which includes the mouth and channels of the Fraser River up to j u s t below Hope as w e l l as the Harrison and P i t t Lake drainage regions. Salvage permits cost $50.00 to acquire and $10.00 each year to renew. While there are presently about 200 a c t i v e permitees operating within the e n t i r e d i s t r i c t , i t i s very d i f f i c u l t 62. Forest Act, R.S.B.C, 1960. to estimate the exact number because salvagers sometimes only work part-time or work i n groups under one permit. Beachcombers can expect to make a percentage of the market value of t h e i r salvaged logs depending on the q u a l i t y of wood recovered. Over the past ten years the percentage return to the permitee has increased s t e a d i l y so as to provide a greater incentive f o r the recovery of l o s t logs. More r e c e n t l y a salvage c l a s s i f i c a t i o n known as S p e c i a l D i s t r i b u t i o n Logs (S.D.L.) has been introduced. S.D.L. #1 logs include tho se that are of good q u a l i t y but are too small to make t h e i r recovery by p r i v a t e operators f i n a n c i a l l y worthwhile. Therefore i n order to encourage the c o l l e c t i o n of these logs, 90% of t h e i r market value i s returned to the permitees. S i m i l a r l y , S.D.L. #2 m a t e r i a l which includes beachworn logs (imbedded with sand or g r a v e l ) , low f l o a t e r s (logs f l o a t i n g too low to reach market i n a f l a t boom) and deadheads (3/4 of t h e i r length submerged or one end diameter e n t i r e l y above water), return 100% of t h e i r market value. The f o r e s t s e rvice has also provided an incentive to recover low grade logs i n that stumpage fees are only 55t per cunit f o r S.D.L.'s as opposed to $2.00 per cunit f or other grades. These incentives have helped to o f f s e t the increased costs of salvaging poorer q u a l i t y logs with the object of increasing the volume recovered. In general, the more competitive beachcombers secure the higher grade logs (the most desirable from a p r o f i t point of view) and the poorer q u a l i t y logs (S.L.D.'s) are recovered by those i n d i v i d u a l s who operate with slower boats and a l e s s aggressive approach. Although the salvagers are paid 90-100% on logs lower than Grade #3 (that can be classed as S.D.L.)> the actual return on t h i s m a terial i s not p a r t i c u l a r l y high due to the poor market p r i c e i t brings. A f u r t h e r deterrent to the recovery of S.D.L. logs i s the f a c t that m i l l s are often hesitant to accept them because of higher handling costs. This can r e s u l t i n delays of three to four months between the d e l i v e r y of logs to the r e c e i v i n g s t a t i o n and payment to the permitee following the market sale of t h i s material to pulp m i l l s . The i n s t i t u t i o n a l arrangement responsible f o r the salvage of logs i s the Gulf Log Salvage Cooperative A s s o c i a t i o n . I t was established by l e g i s l a t i o n (section 150(4) of the Forest Act (1960) as a non-profit organization c o n s i s t i n g of members from the f o r e s t industry, log insurance agencies, brokers, and towing i n t e r e s t s . Gulf Log Salvage i s p r i m a r i l y a marketing organization designed to return l o s t p r o f i t s to the f o r e s t industry through the recovery and sale of salvaged logs. Under t h e i r c o n s t i t u t i o n they are required only to market merchantable logs d e l i v e r e d to a log r e c e i v i n g s t a t i o n and as such they have no commitment to extend t h e i r operations to include the recovery of unmerchantable wood deb r i s . It i s becoming more apparent that although the cooperative was o r i g i n a l l y designed as a v e h i c l e to recover p r o f i t s from l o s t logs, i t s function as a log clean-up operation i s now perhaps i t s most important task. This i s e s p e c i a l l y true as the a t t i t u d e s of f o r e s t industry representatives s h i f t to a more s o c i a l l y conscious outlook on sawlog p o l l u t i o n . 77. There are four log r e c e i v i n g sations presently i n operation under Gulf Log Salvage; two of which are i n the Fraser River. These stat i o n s s o r t , s c a l e , boom and market logs as a service to salvage operators. Current plans include the expansion of these f a c i l i t i e s to better accommodate the return and e f f i c i e n t marketing of salvaged logs. Permitees are charged an average of $2.50 per cunit or $5.00 per 100 board feet f o r handling costs and the f o r e s t industry contributes a comparable amount from t h e i r share of the gross value of the marketed logs. Proceeds from the sale of salvaged logs are d i s t r i b u t e d very c a r e f u l l y i n accordance with section 4.07 of the Log Salvage r e g u l a t i o n s . Once a log i s accepted by Gulf Log Salvage i t i s processed and marketed through t h e i r f a c i l i t i e s . I f the log bears an ownership mark then the appropriate company i s n o t i f i e d that i t i s e l i g i b l e to receive a percentage of the revenue derived from the market sale of the log. The proceeds from the sale of a l l logs are placed i n what can be c a l l e d a "log equity fund". These funds t o t a l l e d approximately 4.5 m i l l i o n d o l l a r s i n 1972 and were roughly d i s t r i b u t e d as follows: (1) Stumpage fees, s c a l i n g charged — $220,000 (5 percent). (2) Gulf Log Salvage operation and maintenance costs — approximately 5 m i l l i o n d o l l a r s (10 percent). (3) Percentage payment of log value to permitees — approximately 3 m i l l i o n d o l l a r s (63 percent). (4) Returns to logging companies — approximately 1 m i l l i o n d o l l a r s (22 percent). The proportion of the equity fund that i s d i s t r i b u t e d to various p a r t i c i p a t i n g logging companies i s determined by the r e l a t i v e proportion of logs recovered that bear that p a r t i c u l a r company's i d e n t i f i c a t i o n mark. Gulf Log Salvage also has the r i g h t to withhold up to 25 per cent of t h i s fund to cover the costs of expansion and new f a c i l i t i e s . The incentives that have been established to encourage the recovery of deadheads, l o w f l o a t e r s , and beachworn logs, have helped to reduce the concentration of these logs i n the r i v e r . However the present terms of reference governing the a c t i v i t i e s of Gulf Log Salvage do not f a c i l i t i a t e the recovery of wood debris or those o l d , weathered, beach-worn sawlogs that are now considered unmerchantable i n the present market. Consequently t h i s m a terial s t i l l remains i n the watercourse and on the beaches^ and as such, creates a serious problem and s u b s t a n t i a l s o c i a l costs. The Committee on Uncontrolled Waterborne Wood In an e f f o r t to achieve some sort of coordination i n the c o n t r o l of sawlogs and other forms of wood debris, representatives of the B.C. Forest Service, the Council of Forest Industries, the Tow Boat Owner's Ass o c i a t i o n , the Truck Loggers A s s o c i a t i o n , the Harbour Commissions on the Fraser, and research i n t e r e s t s have formed a committee to deal with the problems of "Uncontrolled Waterborne Wood Waste". This organization i n i t s present state i s p r i m a r i l y a forum f o r d i s c u s s i o n and the exchange of ideas and information. Recently the committee encouraged representatives of the Council of Forest Industries to convene an industry task force to study the problems of log l o s s . Their report, released i n January of t h i s year, 79. o u t l i n e s 29 p o l i c y recommendations designed to c u r t a i l sawlog p o l l u t i o n 63 and reduce the concentration of wood debris i n c o a s t a l waters. The report addresses not only the s p e c i f i c problems of log l o s s but also the much broader question of how to c o n t r o l both man-made and n a t u r a l m a t e r i a l . The C.F.I.'s e f f o r t s towards e s t a b l i s h i n g a basis f o r cooperation between the various agencies and groups involved i n the c o l l e c t i o n and d i s p o s a l of debris i s to be commended, however, there are a number of questions that can be r a i s e d as to the ef f e c t i v e n e s s of t h e i r approach, e s p e c i a l l y with regard to sawlog c o n t r o l . These questions w i l l be discussed i n the following chapters. I t i s f e l t that the Committee has served and should continue to serve a very e s s e n t i a l r o l e as a coordinating body i n the development of agency programs and p o l i c i e s and that i t - s h o u l d perhaps consider expanding i t s present membership to include other groups such as fishermen and boat owners who also have a vested i n t e r e s t i n the c o n t r o l of waterborne wood debris. 6.5 Summary From the preceding examination of the i n s t i t u t i o n a l arrangements a f f e c t i n g sawlog d e b r i s , a number of the " p o l i t i c a l f a i l u r e s " have been i s o l a t e d . F i r s t l y although the e x i s t i n g l e g i s l a t i o n studied appears to 63. Report of the Task Force on Log Losses, Council of Forest Industries of B r i t i s h Columbia, January 1974. 80. demonstrate su f f i c i en t intent to cont ro l sawlog debr i s , i t has not i n most cases been tested to determine i t s effect iveness. I t may w e l l be that more " l e g a l teeth" w i l l be required before the prosecution of debris po l lu te r s becomes f eas ib l e . Further, there seems to be a de f in i t e lack of coordinat ion among the various j u r i s d i c t i o n s wi th an in te res t i n the problem and t h i s has led to a rather ine f fec t ive system of deal ing wi th sawlog p o l l u t i o n , devoid of any s i gn i f i c an t integrated effor t at con t ro l or d i sposa l . Secondly, because of the d i f f i c u l t i e s inherent i n iden t i fy ing those sawlog owners responsible for damages, the problems of proving a case of negligence, and the i n a p p l i c a b i l i t y of c lass ac t ions , c i v i l law remedies are r e l a t i v e l y useless i n obtaining compensation from or an in junct ion against companies deposit ing sawlogs i n the r i v e r . I t seems as though the Gulf Log Salvage Cooperative i s presently doing a reasonable job of recovering those higher qua l i t y sawlogs that can be eas i ly salvaged from the watercourse and beaches. However, i n sp i te of subsidies provided for lower grade logs , t h i s mater ia l i s s t i l l not p a r t i c u l a r l y p rof i t ab le to p ick up. Consequently the older beachworn logs and deadheads remain i n the water and on the beaches and continue to pose a hazard to small c raf t navigat ion. Res t r i c t i ons i n t he i r cons t i tu t ion unfortunately prevent the cooperative from e f f ec t i ve ly salvaging these lower grade logs and other forms of presently unmarketable wood debr is . 81. The only r e a l e f f o r t towards coordinating a program of debris and sawlog c o n t r o l i n v o l v i n g a l l the concerned groups, i s presently being undertaken by the Committee on Uncontrolled Waterborne Wood under the sponsorship of the B.C. Forest Service — a program which should d e f i n i t e l y continue and perhaps be expanded to involve a wider range' of i n t e r e s t s . i CHAPTER 7: SAWLOG CONTROL TECHNIQUES 7.1 Introduction Although our e x i s t i n g i n s t i t u t i o n s have been unable to s u c c e s s f u l l y cope with the problems of debris p o l l u t i o n , there are techniques a v a i l a b l e to e f f e c t i v e l y c o n t r o l sawlog l o s s . This chapter i d e n t i f i e s and describes several of these techniques as they might be applied by the f o r e s t industry. Log dumping procedures, f l a t r a f t standards, l og barging, dry land storage, and on s i t e s c a l i n g are b r i e f l y discussed as to t h e i r e f f e c t i v e n e s s , advantages, and disadvantages. The second part of the chapter goes on to i s o l a t e the bundling of hemlock and a l l small diameter logs of other species as the s i n g l e most eff e c t i v e log l o s s c o n t r o l p o l i c y f o r the Lower Fraser. Such a program would involve the construction, towing, and storage of bundles as w e l l as the conversion of several m i l l s along the r i v e r to the type of dry land s o r t i n g and feeding operations needed to handled bundled l o g s . In conclusion, a very cursory analysis describes the major costs and bene f i t s associated with a bundle booming p o l i c y and compares these estimates from both a s o c i a l and p r i v a t e cost accounting sense. The s o c i a l cost summary serves to demonstrate the net ben e f i t to so c i e t y of a bundling program and the p r i v a t e comparison i s used to determine the cost to industry of implementing the recommended p o l i c i e s . 8 3 . 7.2 Log Dumping The upgrading of log dumping s i t e s represents one of the smaller scale changes i n log handling procedures which i f adopted by industry could a s s i s t them i n reducing log losses i n the Lower Fraser. A number of the l o g dumps along the r i v e r s t i l l operate using free f a l l equipment. As was mentioned i n Chapter 2 , t h i s method i s the most abrasive of dumping techniques and contributes large q u a n t i t i e s of broken branches and dislodged bark to the watercourse. Because there i s v i r t u a l l y no c o n t r o l over the logs as they enter the water, they are h i g h l y susceptible to sinkage and escape. However, logging operators using cable h o i s t apparatus would s i g n i f i c a n t l y reduce t h e i r debris discharge while at the same time r e t a i n i n g greater c o n t r o l over t h e i r logs. Therefore companies wishing to reduce l o g l o s s along the r i v e r would b e n e f i t by using a h o i s t system and p r o h i b i t i n g free f a l l dumping at a l l operations. 7 . 3 F l a t Raft Standards Those firms u t i l i z i n g upstream dumping and s o r t i n g grounds and those downstream m i l l ponds that water sort f l a t r a f t e d or barged logs could reduce losses by introducing t i g h t e r controls on handling procedures. Where f l a t r a f t i n g remains the most e f f i c i e n t method of transporting the more bouyant logs, booming standards for construction and towing could be improved as o u t l i n e d recently by the Council of Forest Industries Task 64 Force on Log Loss. Because towing companies are not under any o b l i g a t i o n 64. Report of the Task Force on Log Losses, Council of Forest Industries of B r i t i s h Columbia, January 1974. 84. to accept f i n a n c i a l r e s p o n s i b i l i t y for log loss i n t r a n s i t , those companies not employing f i r s t - c l a s s pract ices might not be patronized. 7.4 Barging A number of the smaller log barges operating on the west coast are enabled, because of t he i r lower draught requirements to transport timber in to the main arm of the r i v e r . The rough waters between Vancouver Island and the Mainland require that those logs cut on the i s l and be transported by barge i n order to minimize loss during t r ans i t and cos t ly delays wai t ing for calm sea condi t ions . Although loss i n t r ans i t i s minimized while the logs are not i n the water, the barging operations do suffer subs tant ia l losses during unloading, when the logs are dumped in to the water. I i I t i s much more economical to use self-dumping water s p i l l barges than crane loading land-to- land vesse l s . The arguments presented against dry land unloading include the increased labour cost , the for ty-e ight hour time delay i n unloading, the cost of developing su i tab le moorage areas and the disadvantages associated with constructing and operating a dry land water-front storage s i t e . While land-to- land barging would solve the log loss problem, i t does not appear to be a feas ib le a l t e rna t ive at th i s time. However, those companies wishing to minimize losses during water dumping could maintain a pa t ro l boat i n the area for the purpose of containing and recovering escaped logs . As a second a l t e rna t i ve , barged hemlock and second growth logs could be bundled, thereby reducing the chance of loss during dumping. 85. 7 .5 Dry Land Storage The f e a s i b i l i t y of dry land storage as a method of reducing both log loss and debris p o l l u t i o n has been the subject of much a t tent ion i n recent months. Although i t i s beyond the scope of th i s report to develop a de ta i led cost-benefit analysis of t h i s procedure, i t i s perhaps useful from an information point of view to b r i e f l y out l ine some of the major impacts that could l i k e l y be expected from dry land storage along the Lower Fraser . Perhaps the most important benefit to be r ea l i z ed would be the removal of the logs from the water, thereby reducing the chances of log l o s s , e l iminat ing bark set t lage and the deposit ion of leachates, and freeing valuable shorel ine and water space for other uses. However, the costs of such a p o l i c y are considerable. Not only would the use of ce r t a in valuable upland areas be r e s t r i c t e d to the storage of logs , but dry land storage s i t e s are often unsight ly from an aesthetic point of view. Because of the greater frequency of abrasive handling needed to store logs on land , a large amount of bark i s knocked o f f . This debris must be cleaned up and dispossed of . Wood stored i n dry areas i s also subject to cracking and i n order to counteract t h i s damaging e f fec t , the logs must be sprayed frequently with water. The runoff may eventually f ind i t s way back to the watercourse and can carry with i t substances leached from the logs as w e l l as chemical residue from sprays that might be needed to combat insect infes ta t ions normally avoided by water storage. In view of these ef fec ts , dry land storage i s not considered by industry as a preferred means of reducing log loss at th is time. As techniques:are improved and fur ther .de ta i led 86. impact studies are undertaken, t h i s method may become a v i a b l e a l t e r n a t i v e i n the near future. 7.6 On S i t e Scaling F i n a l l y , i t i s f e l t that by s c a l i n g and booming as many logs as p o s s i b l e on s i t e , t h i s would lessen the chance of log l o s s i n the r i v e r area. Such a p o l i c y would increase government stumpage revenue by about $57,000 per year. This stumpage represents a rent on the harvest of B.C. trees which i s now l o s t because many logs are not scaled u n t i l they reach t h e i r d e s t i n a t i o n . Under t h i s type of system, logging companies would be forced to bear the cost of stumpage on any logs l o s t i n t r a n s i t and would therefore be encouraged to take precautions to avoid or reduce t h i s l o s s , i 7.7 Bundle Booming Hemlock and Small Diameter Logs One of the most e f f e c t u a l changes i n log handling procedure i n terms of reducing l o g l o s s i n the Lower Fraser, would require a l l hemlock and small diameter logs (le s s than sixteen inches across the butt) entering the r i v e r to be transported i n bundle booms as opposed to f l a t r a f t s . This p o l i c y would apply to logs boomed and towed i n upstream areas as w e l l as those logs entering the r i v e r through the mouth. Because of s p e c i a l p h y s i c a l constraints encountered i n towing logs out of Harrison Lake, booms from t h i s area should be excepted from the general p o l i c y . D ^ 65. At high t i d e , bundle booms cannot get clearance under the Harrison Bridge. At low t i d e , they would drag the bottom unless i t were dredged. 87. As was pointed out i n Chapter 1, bundle booms sustain fewer losses than any other type of p r a c t i c a l boom construction due to the r e l a t i v e l y short periods of time where the logs are ac tua l ly l e f t to free f loa t i n d i v i d u a l l y i n the water. Further, these booms are more s tably constructed and less l i k e l y to break up under adverse weather condi t ions . I t therefore seems l o g i c a l that t h i s type of boom should be used for those logs that exh ib i t the greatest frequency of loss i n t r ans i t and storage — namely hemlock and small diameter logs of other species. At the present time, the majority of log losses i n the Lower Fraser are hemlock, however, as more small diameter logs are harvested under close u t i l i z a t i o n p o l i c i e s , th i s r a t i o could be expected to change somewhat. For purposes of th i s ana lys i s , most of the figures used are based on the 1972 volume of hemlock that passed through the Lower Fraser . There are several aspects of current log handling procedures that would be affected by a comprehensive bundling p o l i c y . Not only would the booms have to be constructed d i f f e r e n t l y , but because of the increased water drag and the greater volume of logs contained i n each boom per square foot of surface area, towing rates for bundles would have to be adjusted. Bundle booms also require a deeper channel for passage and storage than do surface f l o a t i n g f l a t r a f t s . Bundle s izes tend to vary from about s i x to twenty cun i t s , however, the ten to twelve cunit s i ze appears to be most common. A bundle of th is s ize would be eight to ten feet wide and s i x feet h igh , drawing as much as four feet of water. Therefore, a continuous depth of at least four feet would be needed i n towing channels and storage areas i n order 88. to ensure bottom clearance under a l l but the most extreme t i d a l condi t ions . This draught requirement would necessitate subs tant ia l dredging work on the part of the two harbour commissions responsible for maintaining the navigable channels and log storage leases i n the Lower Fraser. Once the bundles a r r ive at the numerous m i l l s i t e s along the r i v e r , they must be loaded in to the p lan t . Most m i l l s are presently equipped wi th jack ladders designed to l i f t s ing le logs from a sor t ing pond in to the m i l l . In order to u t i l i z e t h i s type of conveyor feed, log bundles would have to be broken i n the water and loaded s ing ly onto the jack ladder . As was pointed out: e a r l i e r . i n . t h e paper, i f bundles are broken i n the water the low f loa ters that have accumulated moisture during transportat ion w i l l sink or escape as w i l l any accumulations of bark and small pieces of wood debris that may have been trapped ins ide the boom. Therefore, i n order to avoid cance l l ing the pos i t i ve effects of a bundling p o l i c y , a l l bundled booms would need to be loaded i n t a c t , from the water to the m i l l . This w i l l require some m i l l i n g operations to convert from a j ack ladder process to one designed to d i r e c t l y l i f t bundles from the water onto dry land assembly areas. Spec ia l ly adapted dry land feed decks w i l l also need to be i n s t a l l e d . As an a l t e rna t i ve , cer ta in m i l l s could e lec t to spec ia l i ze i n other more bouyant wood species that are less susceptible to loss when transported i n f l a t raf ts and water sorted. 89. Finally, a bundle loading process w i l l , in most cases, preclude the opportunity for a water sort at the m i l l . If a sort is required prior to processing, then dry land areas w i l l have to be purchased for this purpose. I n i t i a l l y dry land sorting would be needed only at those mills handling hemlock and small diameter second growth logs, however, ideally a l l water sorts presently undertaken upriver would also gradually be phased out in favour of a transition to dry land practices. Such a transition to dry land sorting would in a l l likelihood force the development of more comprehensive sorts at major water based sorting grounds and assembly areas located outside the river. In order to be effective, a bundle booming policy should involve a l l of the log handling techniques just described. The implementation of only part of,this process w i l l not l i k e l y achieve a significant reduction i n the frequency of log loss. Therefore, "bundle booming" as referred to throughout the rest of this paper should be understood to mean the complete package policy outlined above. In summary, this policy includes: the bundling of a l l hemlock and small diameter logs (less than sixteen inches at the butt) for towing and storage in the Lower Fraser; the use of bundle loading equipment so that bundles are not broken open in the water; and the introduction of dry land sorts at m i l l sites handling hemlock and small diameter logs. 90. 7.8 Costs of a Comprehensive Bundling P o l i c y As might be expected, there are a number of costs associated wi th the implementation of a bundling p o l i c y . In general , these costs w i l l vary with the s i t e spec i f i c condi t ion encountered i n each s i t u a t i o n . Because the forest industry has to date devoted very l i t t l e ef for t to an assessment of these costs as they would apply to the Lower Fraser , accurate estimates are very d i f f i c u l t to obta in . Therefore, the figures used i n th i s general analysis should be interpreted only as approximations Of average costs . (1) Boom Construction Experience has shown that bundle booms are more expensive to construct than f l a t r a f t s . The extra costs incurred to make and break bundles, inc lud ing the need for stronger boomsticks and chains, va r ies from $0.75 to $1.25 per cunit depending on log s izes and conditions at the so r t ing ground. Based on the log volume figures generated i n Chapter 1, the t o t a l costs of bundling the 1,300,000 cuni ts ' of hemlock that entered the r i v e r i n 1972, at an average of $1.00 per cun i t , would, be $1,300,000. (over and above what i s now expended on booming these logs i n f l a t r a f t s ) . (2) Storage As was mentioned e a r l i e r , i t appears as though each bundle boom w i l l require a four foot draught under a l l t i d a l conditions i n order to move freely i n towing channels and storage areas. Therefore, i n response to indus t ry ' s demand for bundle storage space for hemlock and small diameter logs , both the Fraser River Harbour Commission and the North Fraser River Harbour Commission w i l l have to undertake subs tant ia l dredging i n storage areas and access channels. The costs of th i s program w i l l l i k e l y be i n i t i a l l y d i s t r ibu ted between the federal Department of Pub l i c Works and the Harbour Commissions. A B.C. Forest Service storage inventory showed a peak storage of 280,320 cunits of hemlock i n the Main Arm between January, 1972 and January, 1973. This represents a l i t t l e l ess than h a l f of the t o t a l volume of hemlock entering the r i v e r . In the North Arm, 784,180 cunits of hemlock passed through the r i v e r i n 1972. I f h a l f of th i s volume i s required for peak storage as i s the case i n the Main Arm, then roughly 392,000 cunits of storage space would be required i n the North Arm. Therefore, a t o t a l act ive storage area of about 672,000 cunits woud have been needed to accommodate the volume of hemlock processed through the m i l l s located on the Lower Fraser i n 1972. I f an average s ized hemlock bundle contains ten cun i t s , then peak storage i n the r i v e r would involve approximately 67,200 bundles (assuming that a l l hemlock entering the Fraser i s bundled and that 1972 represents a t y p i c a l production year ) . A ten cunit bundle w i l l measure roughly ten feet wide and draw four feet of water. Therefore, a bundle boom, twenty feet i n length, would require two hundred square feet of surface area storage space. Let us assume that about h a l f of the e x i s t i n g storage i n the r i v e r now occupied by f l a t rafted hemlock has su f f i c i en t depth to accommodate bundles of th i s s i z e . Further , that the remaining f i f t y percen would have to be dredged an average of two feet i n order to meet the four 92. foot draught requirement. I f twenty feet i s selected as an average length for the hemlock bundle, then the 67,200 bundles would need i n the neighbourhood of 13.4 m i l l i o n square feet of storage space. Half of t h i s , or 6.7 m i l l i o n square feet , dredged an add i t iona l two feet i n depth represents 13.4 cubic feet , or roughly 4.5 m i l l i o n cubic yards of dredged sand. Because of t i d a l act ion and i n f i l l i n g , i t i s expected that th i s dredging would have to be repeated every three years . P r iva te dredging contracts which include the p r o f i t from sand sale to offset the cost can be obtained for about $0.60 a cubic yard . This would set the cost of a dredging program to maintain the log storage s i t e s for hemlock bundles at 2.7 m i l l i o n do l l a r s every three years ( this excludes the cost of dredging towing channels and storage space for bundles of other species wi th small diameter bu t t s ) . Spread equally over three years wi th no i n t e r e s t , th i s represents an annual cost of .9 m i l l i o n d o l l a r s . I t i s d i f f i c u l t to say what proportion of th i s cost would be borne by the forest indust ry . So l e t us use . the .high, . low,. medium approach. For a low estimate, i t might be assumed that the harbour commissions d i r e c t l y responsible for the dredging are able to pass the ent i re cost on to the federal Department of Pub l ic Works (D.P.W.). This would mean that storage rates could remain at the current l e v e l and the industry would avoid the costs of dredging al together . At the other extreme, i t may w e l l be that the harbour commissions w i l l be forced to pay the t o t a l .9 m i l l i o n d o l l a r annual expense. In th i s case, the f u l l amount w i l l most probably be passed on to the industry through i n f l a t ed storage ra tes . As a middle-of-the-road estimate, 93. i t i s reasonable to propose that a cost sharing agreement could be worked out where h a l f the cost would be covered by D.P.W. and the remainder by the harbour commissions. Under t h i s type of arrangement, the industry would only have to expend about $450,000 per year over and above t h e i r current log storage fees. In summary then, the cost to industry would l i k e l y be as follows: High $900,000 per year Medium $450,000 per year Low no cost (3) M i l l Equipment: Bundle Loaders and Dry Land Feed Decks Those m i l l s dealing mainly i n hemlock would be required to convert t h e i r loading and infeed operations from jack ladder conveyors to machinery capable of handling bundles. The cost of t h i s equipment v a r i e s with the s i z e of the m i l l s i t e , the s i z e of the logs to be handled, and the feed rate desired. An average siz e d m i l l would probably need two bundle loaders v e r s a t i l e enough to remove bundles from the holding pond, so r t the logs i f necessary, and then load them onto a feed deck. Several manufacturers now produce these loaders between $90,000 and $150,000 depending on the carry i n g capacity of the u n i t . Dry land feed decks designed to accept bundles and s i n g l e logs are presently a v a i l a b l e at a wide range of p r i c e s . A deck that turns ten logs per minute and i s able to accept logs up to twenty-four feet i n length can be purchased f o r roughly $100,000. I n s t a l l a t i o n charges might r a i s e t h i s cost to $150,000 depending on the type of deck and the p h y s i c a l constraints associated with the. l o c a t i o n of the m i l l . 94. Current operation and labour cost estimates show that the dry land sort and feed type of system needed to handle bundles at a m i l l can be run at a cost of roughly $1.00 per cunit of wood processed. In comparison, water sorts and jack ladder feeds cost about $0.80 per cunit to operate. Present trends indicate the expense of operating, a water infeed process w i l l be increasing i n the near future due to higher labour costs . Therefore, i t i s expected that both systems w i l l eventually function at approximately the same cost l e v e l . Based on these estimates, i t i s thought that an average s ized m i l l could add bundle loading equipment (two loaders and a medium sized feed deck) for a minimum cost of about $400,000. The 1 larger m i l l s would be required to purchase the la rger feed decks and more e f f i c i e n t loading systems and might be expected to incur conversion costs of w e l l over one m i l l i o n d o l l a r s . Therefore, the cost estimates could run: (4) Dry Land Sort ing Because a bundling p o l i c y would not achieve the most ef fec t ive resu l t s i f the bundles were opened i n the water, the opportunity for a f i n a l sort at the m i l l w i l l i n many cases be e l iminated. As a consequence, e i ther a more thorough sort w i l l have to be done i n areas such as Howe Sound, where the logs are f i r s t sorted p r i o r to the i r entry in to the r i v e r , or the m i l l w i l l be forced to purchase adjacent land to serve as a dry land sor t ing area. Medium Low High $1,500,000 $ 800,000 $ 400,000 95. As an ind ica tor of land values near the major wood processing plants along the north shore of the r i v e r i n the New Westminster area, the Fraser River Harbour Commission figures show an average pr ice of about $50,000 per acre. I f a m i l l were to purchase four acres of land for a sor t ing area, t h i s would involve an expenditure of about $200,000. (5) Cost Summary I t i s perhaps u n r e a l i s t i c to expect an accurate estimate of m i l l conversion costs when one considers the v a r i a t i o n i n m i l l standards and capaci t ies and the fact that i t i s extremely d i f f i c u l t to project how each i n d i v i d u a l m i l l would a l t e r i t s production processes to implement a bundling p o l i c y . Although the exact magnitude of the costs cannot be calculated for the r i v e r as a region, i t should be appreciated that these costs w i l l i n a l l l i k e l i h o o d be subs tan t ia l i f not greater than those estimates given here. An average s ized m i l l might be able to convert to bundling equipment with a dry land sort for about one m i l l i o n d o l l a r s . A larger m i l l would incur subs tan t i a l ly higher costs for equipment and land , br inging the i r conversion costs to about two m i l l i o n do l l a r s or more. For a low estimate of t o t a l conversion costs for the Lower Fraser area, l e t us assume that ten average sized m i l l s and no large m i l l s are forced to switch to new techniques. This low cost would be about ten m i l l i o n d o l l a r s . As a medium estimate, perhaps twelve average and two large sized m i l l s would be converted at a cost of s ixteen m i l l i o n d o l l a r s . F i n a l l y , a high estimate might involve f i f t een 96. average m i l l s and four large operations at a cost of approximately twenty-three m i l l i o n d o l l a r s . In summary then: High $23,000,000 Medium $16,000,000 Low $10,000,000 I f the affected firms were to d i s t r i bu t e these costs over a twenty-year l i f e t i m e for the equipment at nine percent in te res t per annum, the annual cost to the forest industry would be: High $ 2,530,000 • Medium $ 1,760,000 Low $ 1,100,000 | j One further cost of bundling that has not been incorporated in to th i s analysis i s re la ted to the market demand for bundled logs . I f the market favours the sale of f l a t rafted logs , t h i s w i l l create an add i t iona l cost for those firms transporting i n bundles. However, because of the wide market f luctuat ions cha rac t e r i s t i c of the forest indust ry , i t i s d i f f i c u l t to p i n -point an estimate of t h i s cost . 7.9 Benefits of a Comprehensive Bundling P o l i c y (1) The Avoidance of Delays Due to Adverse Weather Conditions There are several advantages to be r ea l i zed through handling hemlock and small diameter logs i n bundles. Because bundle boom construction i s considerably more durable under adverse weather condi t ions , cos t ly delays i n de l ivery that are sometimes forced upon firms that are f l a t r a f t ing logs would be l a rge ly e l iminated. Although the waters i n the Howe Sound and Lower Fraser region are general ly calm, there are times when f l a t raf ts are unable to navigate i n these areas. (2) Reduced Log Loss I t i s expected that the added s t a b i l i t y and safety of bundle booms would subs tan t i a l ly reduce the loss of hemlock and small diameter logs during handling. For a low estimate, i t i s assumed that 50 percent of the losses would be avoided, a medium estimate — 75 percent, and a high estimate — 100 percent. This represents a savings to the industry of about: This assumes that most of the "other species" logs presently l o s t are, i n fac t , those second growth logs with small butt diameters. (3) Lower Damage Costs to Small Boat Owners Another major benefit r e su l t i ng from a bundling p o l i c y would be the reduction i n damage costs to small pleasure c ra f t , commercial boats, and f i sh ing vessels using the r i v e r . Using the medium estimate c i t ed i n Chapter 2, these damages amount to about $150,000 per year (assuming 1972 to be a representative year and not inc luding damages to pleasure c r a f t ) . Once again using high (100 percent) , medium (75 percent) , and low (50 percent) estimates for loss reduct ions, the savings that might be Medium Low High $4.2 m i l l i o n per year $3.2 m i l l i o n per year $2.1 m i l l i o n per year 98. expected by small boat owners are: Medium Low High $150,000 per year $ 93,000 per year $ 75,000 per year (4) Improvements i n the Qual i ty of the Environment I t i s thought that a bundling p o l i c y would also r e su l t i n ce r ta in benefits as a consequence of an improved aesthet ic environment. There would be a reduction i n the volume of sawlog debris presently clogging up shoreline areas su i tab le for rec rea t ion . In add i t ion , because bundle booms require less surface area storage space and deeper water, i t i s poss ib le that storage s i t e s could be relocated i n an offshore pat tern , thereby freeing some areas for rec rea t iona l use. Although these benefi ts are s i g n i f i c a n t , they are unfortunately very d i f f i c u l t to quantify i n do l l a r s and cents. For those who consider sawlogs an encumberance on the aesthet ic at t ract iveness of the r i v e r environment, these adverse effects would be lessened. Furthermore, there may be cer ta in benefits a r i s i n g from a reduction i n the damage to f i s h environments and the habitat of other aquatic organisms that may now or i n the future be threatened by sawlog storage and p o l l u t i o n . At present, very l i t t l e i s known about the extent of these impacts on the Lower Fraser . I t i s thought however, i n view of soc i e ty ' s current a t t i tude towards p o l l u t i o n and the concerns for preservation of environmental q u a l i t y , that the benefits to be gained from a reduction i n sawlog concentration i n the r i v e r would be valued h i g h l y . I t should be stressed that th i s type of value judgment i s h ighly p o l i t i c a l and that any 99. pr ice attached to aesthetic amenities i s subject to change, due to f luctuat ions i n publ ic a t t i tudes and perceptions. For purposes of th i s paper.and so.that the:reader might see how these costs can be. incorporated in . an. analysis, of: t h i s : type, three judgements have been made which attach low, medium, and high values to those aesthet ic and environmental q u a l i t i e s of the r i v e r that are i n danger of de te r iora t ion as a resu l t of sawlog p o l l u t i o n . Each estimate assumes that society would value these q u a l i t i e s at that p a r t i c u l a r l e v e l . High $1,000,000 per year Medium $ 500,000 per year Low No cost (5) Towing Charges Bundles because of the i r shape and s ize offer more resis tance to the water undertow. This reduces towing speeds and resu l t s i n longer t r i p times. The added expense i s offset by the fact that an average s ized bundle holds more wood than a f l a t ra f t covering the same water surface area. Towing rates used by some companies for bundles are determined on a volume basis at approximately $1.40 per cunit towed. Such a system discriminates against the use of bundles. However, other companies have recent ly switched to a towing rate which i s based on the surface area of the boom. These new rates which average about $65.00 per sect ion for yarding and de l ivery (one sect ion i s s i x t y - s i x feet square and i s not re la ted to the height of the boom) allow 100. three sections of bundled logs to be transported for the same pr i ce as three sections of f l a t rafted logs . The major saving ar ises i n that a bundle i s able to hold more logs . On a tow from the Howe Sound dumping ground to a m i l l i n the Burnaby area, i t i s estimated that a saving of about $0.50 per cunit would be r ea l i zed i f the logs were bundled and towing rates assessed on a per sect ion sca le . I f a l l 1,300,000 cunits of hemlock entering the Lower Fraser were bundled and towed according to th i s system, the t o t a l saving to industry would be approximately $650,000 per year. This assumes, of course, that logging companies wishing to transport bundles have the option of dealing wi th those towing companies that offer the per sect ion ra te . 7.10 A Soc ia l Cost Accounting The fol lowing table out l ines the benefits and costs discussed i n the previous sect ion that could be included i n a s o c i a l cost-benefi t comparison: Soc ia l Costs (Annual Estimates) Low Medium High Dredging & Maintenance of Storage Areas Cost of Converting Saw M i l l s to Bundle Equipment Bundle Boom Construction 1,300,000 900,000 1,300,000 900,000 1,300,000 900,000 1,100,000 1,760,000 2,530,000 Market Fluctuat ions ? ? Total $3,300,000 $3,960,000 $4,730,000 S o c i a l B e n e f i t s (Annual Estimates) Low Medium High Reduced Log Loss 2,100,000 3,200,000 4,200,000 Reduced Damage Costs to Small Boat Owners Towing Charges 650,000 650,000 650,000 Environmental and A e s t h e t i c B e n e f i t s None 500,000 1,000,000 T o t a l $2,825,000 $4,433,000 $6,000,000 As the h i g h , low, and medium f i g u r e s are t o t a l l e d i n t h i s a n a l y s i s , only the low column shows a s l i g h t l y negative b e n e f i t - c o s t r a t i o . The other two columns show a d i s t i n c t net s o c i a l b e n e f i t from a bundle booming program. While each i n d i v i d u a l w i l l have to base t h e i r comparison on the column which they t h i n k most c l o s e l y resembles the a c t u a l s i t u a t i o n on the r i v e r , t h i s study w i l l use the medium column f o r the remainder of the a n a l y s i s . 7.11 A P r i v a t e Cost Accounting I f one chooses to i s o l a t e and compare j u s t those costs that would accrue d i r e c t l y to the f o r e s t i n d u s t r y , a d i f f e r e n t b a l a n c i n g of costs and b e n e f i t s r e s u l t s , as shown on the f o l l o w i n g page. •102. Pr iva te Costs (Annual Estimates) Low Medium High Bundle Boom Construction Dredging and Maintenance of Storage Areas 1,300,000 1,300,000 1,300,000 450,000 900,000 Cost of Converting Saw M i l l s to Bundling Equipment 1,100,000 1,760,000 2,530,000 Tota l $2,400,000 $3,510,000 $4,730,000 Pr iva te Benefits (Annual Estimates) Low Medium High Reduced Log Loss 2,100,000 3,200,000 4,200,000 Towing Charges 650,000 650,000 650,000 Fewer Del ivery Delays ? ? ? Tota l $2,750,000 $3,750,000 $4,850,000 From th i s perspect ive, the pr iva te benefits of bundle booming outweigh the costs i n a l l cases. This would seem to indicate that i t would be i n the in teres ts of the forest industry to switch to bundling i n the Lower Fraser . In fac t , there are several companies that are now ser ious ly considering such a change i n t ransportat ion p o l i c y . 103. However, there are a number of questions that can be ra ised i n th i s regard. F i r s t l y , although the analysis shows a pos i t i ve benefi t -cost re la t ionsh ip for the Lower Fraser forest industry as a whole, i t may be that because of cer ta in economics of sca le , some of the smaller firms located on the r i v e r w i l l not be a pos i t i on to r e a l i z e the benefi ts of bundling to the same extent as other larger operations. These economics of scale could resu l t i n a marginal or even negative benef i t -cost r a t io s for some companies. Therefore, each f irm w i l l need to undertake i t s own analysis to determine i f bundling w i l l , i n fac t , be an economically b e n e f i c i a l a l t e rna t ive for t he i r p a r t i c u l a r circumstances. Secondly, t h i s type of pr iva te cost-benefit comparison ignores the external costs that accrue to groups outside the forest indust ry . I t can be argued that the industry should be forced to take these costs in to account. L a s t l y , for those firms faced wi th marginal p r o f i t returns from bundle booming, an add i t iona l economic incent ive may be required to stimulate the desired switch to bundle t ranspor ta t ion. The fol lowing chapter w i l l examine three a l te rna t ive policy-program approaches that could be taken to encourage forest companies to adopt bundling techniques i n the Lower Fraser . CHAPTER 8: ALTERNATIVE APPROACHES TO CONTROLLING SAWLOG POLLUTION 8,1 Introduction How can we act most e f f e c t i v e l y to correct the f a i l u r e of our " p o l i t i c a l and market" i n s t i t u t i o n s to c o n t r o l sawlog p o l l u t i o n ? It i s perhaps u s e f u l to think of sawlog or debris p o l l u t i o n as the outcome of a set of constraints imposed upon the users of the r i v e r by the e x i s t i n g i n s t i t u t i o n a l framework. So long as these c o n s t r a i n t s remain the same, the s i t u a t i o n cannot be s i g n i f i c a n t l y a l t e r e d nor can the r e s u l t a n t s o c i a l costs of the p o l l u t i o n be s u b s t a n t i a l l y reduced. From t h i s perspective, i t becomes evident that only when the appropriate i n s t i t u t i o n a l arrangements are changed, can the s i t u a t i o n be improved. I d e a l l y then, e f f o r t s to achieve a s o l u t i o n to the problems of sawlog or debris p o l l u t i o n should be d i r e c t e d towards a f f e c t i n g a change i n these i n s t i t u t i o n a l guidance systems. There are a number of ways to e f f e c t change i n i n s t i t u t i o n a l structure and/or p o l i c y . These methods generally involve e f f o r t s to modify human behaviour rather than the behaviour of the environment. In some cases, behaviour can be modified.on the b a s i s of new information. This type of approach r e l i e s on educational programs, information campaigns or a d v e r t i s i n g to modify the b e l i e f s , a t t i t u d e s , values and motivation of these i n d i v i d u a l s or groups whose behaviour seems to be most c l o s e l y associated with the undesirable c o l l e c t i v e phenomenon. However, experience has shown that human responses to 105. information are not always p r e d i c t a b l e , and p o s i t i v e r e s u l t s are often few and f a r between. The interventions l i k e l y to be most successful therefore, tend to r e l y on what can be c a l l e d s t r u c t u r a l d i r e c t i v e s . The intent of th i s approach i s to modify i n d i v i d u a l behaviour by modifying the s o c i a l or s t r u c t u r a l s e t t i n g i n which the a c t i v i t i e s take place. The v e h i c l e used to induce t h i s m o d i f i c a t i o n can take the form of economic i n c e n t i v e s , p o l i c y d i r e c t i v e s or the redesign of i n s t i t u t i o n a l arrangements. I t i s not enough to e f f e c t a change i n a t t i t u d e s and perceptions through the exchange of information, when i n f a c t , a change i n behavioural patterns i s required. Because of the common property nature of the Fraser River water resource and the p o l l u t i o n problems that r e s u l t as a consequence, s t r u c t u r a l d i r e c t i v e s aimed at cr e a t i n g new s o c i a l or i n s t i t u t i o n a l arrangements must i n i t i a t e a responsible pattern of behaviour on the part of those i n d i v i d u a l s using the resource. I t i s conceivable that these d i r e c t i v e s may, i n order to prevent the rapid d e t e r i o r a t i o n of the resource, involve c e r t a i n r e s t r i c t i o n s on the i n d i v i d u a l freedoms. This can be interpreted by some as a form of coercion or v i o l a t i o n of basic r i g h t s ; however, the measures employed should be implemented only i f they are agreed upon through the p o l i t i c a l process. The d i f f i c u l t y faced then i s one of presenting p o l i c y a l t e r n a t i v e s that do not p r o h i b i t f o r e s t industry a c t i v i t i e s , but rather provide the c o r r e c t i v e feedbacks that are needed to temper i n d i v i d u a l or group behaviour. 106. The f o r e s t industry appears to respond to the prospect of sawlog and debris p o l l u t i o n c o n t r o l according to three l e v e l s of s e n s i t i v i t y . F i r s t l y , they wish to minimize any increase i n i n t e r n a l costs due to the i n t r o d u c t i o n of procedural changes i n production. Secondly, i f extra costs cannot be avoided they w i l l implement i n t e r n a l l y regulated abatement measures only at the threat of government i n t e r v e n t i o n or extreme public pressure. T h i r d l y , and paramount i n the range of s e n s i t i v i t y exhibited by industry o f f i c i a l s , i s a vehement re s i s t a n c e to the p o s s i b i l i t y of government i n t e r v e n t i o n i n the industry i t s e l f . I t i s i n t e r e s t i n g to note that the basic t a c t i c to c o n t r o l p o l l u t i o n that has generally been used by the B.C. government to date, i s the fear of punishment brought about by regulations and f i n e s . " I t could be suggested that i n view of the c a p i t a l i s t i c ideology w i t h i n which our s o c i a l system functions, that a more e f f e c t u a l approach might be through an appeal to one of the more p o s i t i v e values commonly held by most entrepreneurs — namely the de s i r e to r e a l i z e higher p r o f i t s . From t h i s perspective i t appears as though economic incenti v e s are the c o n t r o l mechanisms most l i k e l y to achieve any success-in terms of a reduction i n the l e v e l of sawlog p o l l u t i o n i n the Lower Fraser. However, so as not to l i m i t the scope of t h i s a n a l y s i s , three approaches to sawlog c o n t r o l are presented and discussed i n t h i s f i n a l chapter. The f i r s t two are based on r e g u l a t i o n systems which u t i l i z e e x i s t i n g i n s t i t u t i o n s . The t h i r d concept i s a charge scheme which acts through the market to provide the f o r e s t industry with an economic i n c e n t i v e to reduce t h e i r losses and an opportunity to take i n t o account the external costs of t h e i r log transportation and handling a c t i v i t i e s . This approach i n e f f e c t , a l t e r s the i n s t i t u t i o n a l s e t t i n g w i t h i n which the industry now operates i n an e f f o r t to stimulate a p o s i t i v e change i n t h e i r behaviour with respect to sawlog p o l l u t i o n . A d e s c r i p t i o n of t h i s charge system as i t might be applied to the Lower Fraser River, demonstrates that the f o r e s t industry can be encouraged to c o n t r o l t h e i r log l o s s through an appeal to the p r o f i t motive of each company. By way of i l l u s t r a t i o n , the external costs of log movement and storage i n the Lower Fraser are used to e s t a b l i s h an experimental l e v e l f o r the charge. I t i s argued that through t h i s approach, industry would be induced to adopt the bundling of hemlock and small diameter logs as one way of c o n t r o l l i n g t h e i r losses and subseqeuntly increasing t h e i r p r o f i t s . 8.2 Voluntary Regulation To begin with, l e t us examine a program of voluntary regulations which has' r e c e n t l y been proposed by the f o r e s t industry. Under t h i s approach, i n d i v i d u a l companies would be encouraged to switch to bundle booming i n response to information d i r e c t i v e s and p o l i c y recommendations issued by the Council of Forest Industries — a p o l i c y and public r e l a t i o n s organization composed of management representatives from a l l the large logging i n t e r e s t s i n B.C. The Council's report o u t l i n e s a number of recommendations with methods of c o n t r o l l i n g sawlog l o s s 108. and other forms of wood debr is . Although the recommendations r e l a t i n g to sawlog cont ro l are w e l l designed with regard to such things as hemlock bundling, the e l iminat ion of free f a l l dumps, improved boom construct ion, debris control during so r t i ng , and towing standards and ra tes , there are several reasons why they are not l i k e l y to be ef fec t ive i f introduced through a program of voluntary regula t ion . F i r s t l y , because the C . F . I , has no " rea l power" to implement these recommendations, i t must r e l y mainly on the cooperation and goodwil l of i n d i v i d u a l member companies i n order to achieve the desired r e s u l t s . Secondly, not only would forest industry operators be affected, but these p o l i c i e s would also bear upon other groups outside the Counc i l ' s d i rec t sphere of inf luence , such as tow boat companies and harbour agencies. Although various forms of co-option and persuasion could be • appl ied , i t i s questionable as to what extent these non-member groups would be w i l l i n g to support the C . F . I , p o s i t i o n . T h i r d l y , the primary economic incent ive for industry to comply wi th the recommendations appears to be the savings that could be r ea l i z ed through a reduction i n the volume of wood now l o s t during t ransportat ion and storage. Each company w i l l l i k e l y respond by balancing the costs of the new p o l i c i e s that would accrue d i r e c t l y to them with the benefits that could be expected from reducing the i r log losses . As was mentioned e a r l i e r , cer ta in economies of scale may make i t more feas ible for some companies to comply with the regulations than for others. For example, the costs of 109. hemlock bundling for a large corporation may be rather i n s i g n i f i c a n t when compared to the costs of the i r en t i re operat ion, whereas the extra expense of bundling may be su f f i c i en t to force a smaller f i rm out of business. To date, the Council has not undertaken any analysis of t h i s type to determine e i ther the net cost of the i r program or the spec i f i c costs that might be expected to accrue to i n d i v i d u a l operators and m i l l s . Although representatives at the management l e v e l r e a l i z e that debris clean-up w i l l e n t a i l a subs tant ia l benefit to the industry as a whole, the extent to which any pr iva te f i rm w i l l comply with the Counc i l ' s p o l i c i e s w i l l depend p r imar i ly on the benefi t -cost r a t i o i t has to bear as a consequence. Each company can be expected to react so as to minimize i t s costs and th is type of behaviour could l i m i t the effectiveness of the program unless i t can be shown that i n a l l cases the benefits outweigh the costs for the affected pa r t i c ipan t s . Although the r e s p o n s i b i l i t y for sawlog cont ro l c l e a r l y rests wi th forest i n t e r e s t s , the opinions and perceptions of those external groups d i r e c t l y affected by p o l i c y decisions concerned wi th wood debris and log loss must also be considered. Experience has shown that i n many instances administrat ive agencies tend to iden t i fy with the par t ies they regulate and i n the case of the C . F . I . , which i s composed en t i r e ly of representatives of the forest industry generally holding s i m i l a r in te res t s and preferences, i t i s doubtful that groups such as fishermen, pleasure boat owners, and environmentalists w i l l receive a " f a i r deal" i f regulat ions are not tempered somewhat by external inf luences. I t must be kept i n mind that the water and timber being used are p u b l i c l y owned resources, and the. r igh t to 110. influence management decisions i n these areas remains the prerogative of the people. I f , i n fac t , the C . F . I , regulations are implemented i n response to the Counc i l ' s p o l i c y d i r e c t i v e s , then enforcement could present a serious problem i n terms of maintaining the standards and pract ices spec i f ied i n the report . Under present condi t ions , the forest industry s t i l l finds i t p ro f i t ab le to lose a ce r ta in number of logs during transportat ion and storage. Preventing th is loss w i l l i n a l l l i k e l i h o o d resu l t i n costs as w e l l as extra benef i t s . Depending on th i s balance i t may be a temptation for some firms to re lax the C . F . I , standards i f i t w i l l save them a l i t t l e money. , As a r e s u l t , someone w i l l be forced to "r ide herd" on the industry and ensure that the p o l i c y d i r ec t ives are enforced. Because the Council has no l e g a l power over i n d i v i d u a l members of-the indus t ry , t h i s task could prove to be extremely cos t ly and d i f f i c u l t . In fac t , i t i s doubtful that e f fec t ive p o l i c i n g could ever be achieved without outside in te rven t ion . I t must be r ea l i zed that the a t t i tude of the forest industry i s such that support of the task force p o l i c y recommendations i s poss ib le only at 66. One way of achieving some degree of " p o l i c i n g " might be through the use of labour union environment committees. Recent labour-management negotiations have seen the in t roduct ion of these environment committees in to the organizat ion of the I.W.A. Conceivably, the members of the loca l s working on log handling jobs could report any v i o l a t i o n of p o l i c y guidel ines and standards that had been designed to curb log loss and prevent excessive degradation of the environment. Workers could then refuse to work on jobs that were operating i n contravention of these standards. I f the union members were f i r e d for the i r refusal to work, a grievance could subsequently be f i l e d against the company through the environment committee. 111. the broad management coordination l e v e l of the C . F . I . Problems of cost , p o l i c i n g , and i n some cases, the lack of su f f i c i en t incent ive are l i k e l y to render the proposed voluntary controls ine f fec t ive at lower l eve l s where on s i t e implementation and enforcement by i n d i v i d u a l operators are c r u c i a l to the success of the program. To some extent, t h i s kind of i n i t i a t i v e from the C . F . I , i s useful i n that forest companies may be encouraged to examine the benefits that could a r i se from switching to bundle booming i n the Lower Fraser . However, by i t s e l f t h i s type of approach i s not l i k e l y to achieve ef fec t ive resul ts i n terms of a reduction i n the present l e v e l of sawlog p o l l u t i o n i n the Lower Fraser . 8.3 Government Regulations Perhaps the most serious disadvantage of a system of compulsory government regulations for sawlog cont ro l i s that some of the smaller timber companies may be forced out of business i f the costs of complying with the regulations are too h igh . Unless spec ia l provisions were included to consider these cases, a program of regulations may prove i n e f f i c i e n t where companies are required to cont ro l loss where the i r costs outweigh the benef i t s . A further problem to.consider are the costs of p o l i c i n g and administering such a program. In view of the disadvantages of organiz ing, managing, and enforcing a system of government regulations and the beauocratic confusion that often accompanies th i s type of arrangement, such an approach i s perhaps not the most e f fec t ive way of reso lv ing the sawlog problem at th i s time. 112. 8.4 A Charge System f o r Uncontrolled Sawlogs Two objectives can be i d e n t i f i e d f o r a charge system of the type suggested here. One i s that the f o r e s t industry would be forced to consider the external costs of t h e i r l og handling a c t i v i t y i n the Lower Fraser. Secondly, a sawlog charge would give p r i v a t e firms handling hemlock and small diameter logs an a d d i t i o n a l economic incentive to switch to bundling procedures or other techniques which would reduce t h e i r l o s s e s . For example, by bundling, the i n d i v i d u a l operator would b e n e f i t by: (1) avoiding the extra costs of paying a charge on l o s t logs, and (2) c a p i t a l i z i n g on the economic advantages associated with bundle booming o u t l i n e d e a r l i e r . I f the charge i s set at the co r r e c t l e v e l , these savings should be large enough to induce the f i r m to make the switch. An experimental charge system i s described here as i t would apply to the Lower Fraser River region and a l l costs and c a l c u l a t i o n s are based on f i g u r e s taken from f o r e s t industry a c t i v i t y i n t h i s area during 1972. The actual magnitude of the charge, which w i l l be rather a r b i t r a r i l y e stablished i n t h i s paper only by way of example, should be allowed to fl u c t u a t e up or down u n t i l the desired response from industry i s achieved. Because the f o r e s t companies aff e c t e d by the charge are the most q u a l i f i e d source of the a n a l y t i c a l cost data needed to determine i t s l e v e l , access to thi s information w i l l have to be provided. I t i s thought that industry should be d i r e c t l y involved i n the process of e s t a b l i s h i n g t h i s r a t e , along with other groups having an i n t e r e s t i n the charge system. The charge should be assessed against l og owners f o r each uncontrolled 113. sawlog that can be considered e i ther a po ten t i a l hazard to navigat ion or a contr ibut ing factor to the de ter iora t ion of the environmental qua l i t y of the r i v e r . The i n s t i t u t i o n a l arrangement envisaged for the administrat ion of the charge system i s the Gulf Log Salvage Cooperative. As uncontrol led sawlogs are recovered by pr iva te salvagers and processed through the cooperative, the owners of marked logs would be duly n o t i f i e d of t h e i r recovery. In addi t ion to the handling charge and salvage fees that are now discounted from the market value obtained through the sale of the l o g , a charge per cubic foot would also be assessed against the owner and held by the cooperative. The company would then be e n t i t l e d to receive the remaining balance of the market p r ice or i f the handling costs plus j charge exceeded the value of the l o g , then the f i rm would be required to pay the difference to the cooperative. The " log equity fund" now used to proport ionately d i s t r i bu t e the sale p ro f i t s of unmarked logs to the owners of marked logs , would be used i n a s i m i l a r way to proport ionately assess the log loss charge. The cooperative would s t i l l be e n t i t l e d to deduct 25 percent of th i s fund for f a c i l i t i e s expansion. Although a more e f f i c i e n t on s i t e marking and sca l ing program would d e f i n i t e l y be b e n e f i c i a l to the charge scheme i n that more log owners would i n i t i a l l y be i d e n t i f i e d , i t i s by no means essen t i a l to the success of the charge system. B a s i c a l l y the same salvage and processing procedures that have been used i n the past can also be used to assess the sawlog charge. In e f fec t , each f i rm would be charged or taxed i n proportion to the use they make of the waste a s s imi l a t ive 114. and transport capacity of the r i v e r as re f lec ted by the number of uncontrolled sawlogs belonging to them that are recovered by salvagers. Furthermore there i s no reason to suggest why other groups involved i n sawlog recovery such as the Harbour Commissions should not pa r t i c ipa te i n the charge system, act ing perhaps as agents for the cooperative. Under a charge system, members of the forest industry presently supporting the salvage cooperative would have much less incent ive to pa r t i c ipa te i n view of the fact that the i r p r o f i t s from log recovery would l i k e l y be subs tan t i a l ly reduced or eliminated by the charge. In an t i c ipa t ion of an industry p u l l - o u t , the government should be prepared to step i n and purchase a majority in te res t i n the cooperative. However i t i s not expected that the maintenance and administrat ion costs of Gulf Log Salvage would be p r o h i b i t i v e . In 1972, $800,000 i n annual p r o f i t s were obtained through the marketing of logs salvaged i n the Lower Fraser and returned to the industry . Under the new system these p r o f i t s would be retained by the cooperative through the sat/log charge and could be i n part made ava i lab le to cover operat ional expenses. The ca lcu la t ions given on the fol lowing page i l l u s t r a t e how a charge l e v e l might be i n i t i a l l y set. •115. Low Medium High External Cost of Sawlog P o l l u t i o n $ 180,000 $ 760,000 $1,433,000 (including estimates of damages to f i s h boats, tow boats, harbour clean-up, and maintenance and the environment) Annual Volume of Logs Recovered i n the Lower Fraser River by Salvages 2,345,000 cubic feet By d i v i d i n g the t o t a l external costs of l o g transportation and handling (these costs accruing to groups external to the f o r e s t industry) by the annual volume of logs that are recovered each year by salvagers ( t h i s f i g u r e represents the volume of sawlogs that are l i k e l y to be picked up by beachcombers working the Fraser River and surrounding area and therefore subject to change), one arr i v e s at three l e v e l s f or the charge depending on which column of damages are used and the value attached to the q u a l i t y of the environment: High $0.08 per cubic foot Medium $0.32 per cubic foot Low $0.61 per cubic foot I f the medium charge l e v e l i s selected as most c l o s e l y representing r e a l i t y , and i f i t i s applied to the 1972 log l o s s volumes, a charge revenue i s generated equal to the external costs of the f o r e s t industry a c t i v i t i e s on the r i v e r . In terms of the volume of hemlock transported into the r i v e r i n 1972, t h i s represents an added transportation cost to the industry of about $0.06 per c u n i t . In terms of the t o t a l volume of logs entering the Lower 116. Fraser i n 1972 ( a l l s p e c i e s ) , t h i s cost i s roughly $0.02 per c u n i t . These figures can be doubled, i f the $0.61 charge based on the high cost-benefit estimates are used. The charge rate should be p e r i o d i c a l l y re-evaluated to correspond with f l u c t u a t i o n s i n cost l e v e l s , p o l i t i c a l a t t i t u d e s towards the environment, and the response of the f o r e s t industry. I f a f i r m acts to reduce i t s log l o s s , i t w i l l correspondingly avoid the extra costs of the charge and increase the number of b e n e f i t s that w i l l accrue as a r e s u l t of sawlog c o n t r o l . T h e o r e t i c a l l y then, to be e f f e c t i v e , the charge must be great enough such that the f i r m acting to reduce log loss w i l l be enabled to r e a l i z e : h i g h e r p r o f i t s than a company which e l e c t s to sustain a high log l o s s . 8.5 Advantages of a Charge System Over Regulatory Controls There are a number of advantages i n using a charge system to c o n t r o l log l o s s . In addition to the added economic incentive provided by the charge, each f i r m i s free to adjust i t s operation i n the most e f f i c i e n t way f o r i t s p a r t i c u l a r circumstance and s i t u a t i o n . For example, i n d i v i d u a l companies when faced with the charge could e l e c t to a l t e r l o g handling procedures and reduce l o s s e s , cut back production, switch to other species l e s s l i k e l y to escape or sink, pay the charge or a combination of these t a c t i c s . Because there are s i g n i f i c a n t d i f f e r e n c e s i n economics of scale f o r the p a r t i c i p a t i n g f o r e s t companies on the r i v e r and a wide v a r i e t y i n l o c a t i o n and process, i t i s expected that responses to the charge w i l l r e f l e c t t h i s d i v e r s i t y . Some firms may f i n d i t p r o f i t a b l e to convert 100 percent of t h e i r hemlock 117. handling procedures to bundles, others may benefit only i f they reduce ha l f t h e i r losses and pay a charge on the remainder. In any case, the charge on the use of the r i v e r w i l l allow each affected f i rm to respond i n the most e f f i c i e n t way for i t s i n d i v i d u a l needs. Enforcement would be at the expense of each company. Decisions would have to be made as to the most economically b e n e f i c i a l response the company could make to the charge, and once these decisions were taken, the management would be forced to keep a close watch on handling procedures i n the in teres ts of maintaining as high a p r o f i t margin as poss ib le . For example, a f i rm that elected to reduce log loss as the most p ro f i t ab le response to the charge would na tu ra l ly take precautions to ensure that t h e i r handling procedures ( i . e . , bundle booming) were a l tered and pol iced so as to r e su l t i n a minimum amount of l o s s . In general , companies responding to regulatory controls such as those proposed by the C . F . I , are induced, perhaps through fear of fines or publ ic harassment, to reduce the i r losses only to the minimum l e v e l required by the regulations even though they may have reached a point i n changing over t he i r pract ices where for a few do l l a r s more they could reduce the i r losses an add i t iona l 50 percent. Under a charge system, these firms would have an incentive to reduce t h e i r losses below a standard l e v e l to the point where i t becomes uneconomical to continue improving cont ro l e f f i c i e n c y . This on-going ef for t to reduce the cost effects of the charge could resu l t i n innovative research in to more e f f i c i e n t control techniques a s i t ua t i on that would not l i k e l y a r i se i f firms were encouraged only to curb the i r losses to a spec i f ied l e v e l . 118. F i n a l l y , one of the major advantages of the sawlog charge system proposed here i s that i t generates a revenue i n the form of a tax on the movement of logs i n the Fraser River . Because of the d i f f i c u l t i e s involved i n d i r e c t l y r e d i s t r i b u t i n g these funds to groups damaged by sawlog p o l l u t i o n , the a l l o c a t i o n of the charge revenue becomes an important considerat ion. As was mentioned previous ly , preference should be given to covering the operat ional costs of Gulf Log Salvage i n addi t ion to any f a c i l i t i e s expansion that may be required to administer the charge system. The remaining revenue might be a l loca ted to cover the costs of clean up presently borne by the harbour commissions, the parks boards, and the forest service such that these costs are in t e rna l i zed w i th in the forest industry. Through the sawlog charge, those companies responsible for the p o l l u t i o n would be required to pay i n proportion to the number of the i r logs l o s t i n the r i v e r . Such a scheme could act to p a r t i a l l y correct the f a i l u r e of the ex i s t ing market to equitably and e f f i c i e n t l y a l loca te some of the costs and benefi ts of resource use with regard to log handling and transportat ion i n the Lower Fraser. A model for a s imi l a r type of approach to p o l l u t i o n con t ro l already covers the petroleum indust ry , where o i l s p i l l p o l l u t i o n i s regulated through both a t ransportat ion tax and a set of federal l e g i s l a t i o n under the Canada Shipping A c t . ^ Under th i s arrangement a l l firms transporting o i l are required to pay a per b a r r e l tax which goes 67. S .O.R. , 1971. 119. into a spec ia l "equity fund". At such time as an o i l s p i l l i n f l i c t s damage on a t h i r d party, th i s fund i s used to cover any compensation and clean up costs that may a r i s e . The same amount i s then recovered from the responsible shipping company through the courts and returned to the fund. In that the o i l s p i l l l e g i s l a t i o n provides an e f fec t ive avenue of remedy i n such cases, th i s system has proven to be a successful way of i n t e r n a l i z i n g some of the external costs generated by the movement of o i l i n Canada's coas ta l waters. 8.6 Summary While the charge system i s one way of e f f ec t ive ly c o n t r o l l i n g sawlog po l l u t i o n , there i s no reason to suggest why i t could not be used i n conjunction wi th the C . F . I , p o l i c y recommendations and a program of s e l f -regula t ion . While a sawlog charge would al low for a f l e x i b l e response on the part of the indust ry , provide an add i t iona l economic incent ive for firms to reduce the i r losses , and serve as a veh ic le to i n t e r n a l i z e the external costs of log t ransportat ion and handling, the C . F . I , p o l i c y recommendations could provide the affected companies with guidelines as to the most e f f i c i e n t ways of reducing losses i n conjunction with the charge. I t i s f e l t that voluntary regulations and industry i n i t i a t i v e i n combination with a system of economic incentives could prove ef fec t ive i n a l l e v i a t i n g the sawlog p o l l u t i o n problems on the Lower Fraser. 1 2 0 . CONCLUSIONS There are a number of conclusions that can be drawn out of the previous chapters. They are b r i e f l y as fo l lows . Chapter 2 1« There are two main sources of wood debris i n the Fraser R ive r : (a) Logging and natura l debris coming downstream from above M i s s i o n . (b) Sawlogs that escape during t r ans i t and storage i n the Lower R i v e r . i 2. Over 85 percent of t h i s t o t a l debris load i s the d i rec t r e su l t of forest industry operations. 3. In 1972, sawlog loss contributed 9.2 m i l l i o n cubic feet of debris or 80 percent of the t o t a l debris load i n the Lower R i v e r . 4. Approximately one-quarter of the sawlogs l o s t are eventually recovered by salvagers, leaving a net loss volume of 6.9 m i l l i o n cubic feet for 1972. 5. This loss volume i s not l i k e l y to decrease i n future years unless measures are taken to revise current log handling p rac t i ces . Chapter 3 6. In 1972, a medium estimate of the measurable costs r e su l t i ng from debris accumulation i n the Lower Fraser t o t a l l e d roughly 4.7 m i l l i o n d o l l a r s . Sawlogs accounted for over 90 percent of these costs . 121. Chapter 4 7. Because of the large volume flow of the Fraser under most condi t ions , i t i s not l i k e l y that bark deposits w i l l exert a s i gn i f i c an t demand on the dissolved oxygen l eve l s i n the water. However, these deposits may cover f i s h feeding areas and rear ing grounds. 8. For most of the same reasons, the effects of leachates on the r i v e r environment do not appear to be s i g n i f i c a n t . 9. Leachates and bark deposits could present a problem i f logs are allowed to accumulate i n slow moving sloughs and back channels. 10. Generally speaking, i n view of the uncertainty associated wi th the environmental impacts of sawlog debr is , more studies are needed to determine the s ign i f icance of these impacts on the ecology of the Lower Fraser . 11. However, these unquantifiable costs are important enough to warrant serious consideration and values should be attached to these costs through the p o l i t i c a l process. Chapter 5 12. The discussion of the ro le of markets with respect to common property resources demonstrates: (a) That the costs and benefits of resource use, p a r t i c u l a r l y the use of the r i v e r for log storage and transportat ion are being d i s t r ibu ted inequi tably to groups external to the forest indust ry , (h) That the ava i lab le evidence indicates that these resources are being a l located i n e f f i c i e n t l y by the ex i s t ing market. 122. Chapter 6 13. Although the ex i s t i ng federal and p r o v i n c i a l l e g i s l a t i o n appl icable to sawlog cont ro l has not been s u f f i c i e n t l y tested, i t i s doubtful that t h i s body of statute law would prove ef fec t ive i f appl ied . Therefore, i f regulatory controls are to be used to reduce the present l eve l s of sawlog p o l l u t i o n i n the Lower Fraser , new teeth i n the l e g i s l a t i o n w i l l have to be developed. 14. The chances of damaged par t ies rece iv ing r e f l i e f under the c i v i l code are extremely poor. 15. Because of r e s t r i c t i o n s i n i t s present cons t i t u t i on , the Gulf Log Salvage Cooperative has been ine f fec t ive i n recovering the poorer grade logs and unmarketable wood debris that i s responsible for much of the p o l l u t i o n i n the r i v e r . 16. The B .C . Forest Service "Committee on Uncontrolled Waterborne Wood" i s doing a good job coordinating the effor t of industry and other groups concerned wi th wood debris as a f i r s t step towards an integrated program of con t ro l . Chapter 7 17. There are a number of log handling techniques that could be introduced which would also help to reduce log loss i n the r i v e r . These inc lude: (a) cable hois t dumping Cb) higher booming standards for f l a t raf ts (c) t igh te r log loss controls for sor t ing ponds 123. (d) land-to-land log barges or bundled logs on barges. (e) dry land storage. In most cases, these methods do not appear to be nearly as e f f i c i e n t as a bundle booming p o l i c y i n terms of t h e i r cost effectiveness to reduce log l o s s . 18. A comprehensive bundle booming p o l i c y appears to be the best way of c o n t r o l l i n g log l o s s i n the Lower Fraser. Such a p o l i c y would involve the towing and storage of hemlock and a l l small diameter logs with a butt diameter of l e s s than sixteen inches i n bundles i n conjunction with the i n s t a l l a t i o n of bundle loading equipment and dry land s o r t i n g f a c i l i t i e s at those m i l l s processing t h i s type of m a t e r i a l . 19. A bundling p o l i c y i s generally b e n e f i c i a l from a s o c i a l perspective as w e l l as from the standpoint of the industry. 20. The program of s e l f - r e g u l a t e d sawlog c o n t r o l proposed by the Council of Forest Industries i s not by i t s e l f l i k e l y to achieve the desired r e s u l t s due to: (a) a lack of s u f f i c i e n t economic incentive for a l l firms to comply with the regulations. (b) a lack of authority to e f f e c t enforcement. 21. Government regulations are also at a disadvantage i n that they may force smaller operators out of business i n the face of high c o n t r o l costs. Further, the beaurocratic maze often associated with regulatory systems would l i m i t the e f f e c t i v e n e s s of the program as would the costs and d i f f i c u l t i e s of enforcement. 124. 22. One way of ef fect ing a change i n the behaviour of the forest industry with respect to sawlog p o l l u t i o n would be through a modif icat ion of the i n s t i t u t i o n a l se t t ing i n which the a c t i v i t i e s of the industry take p lace . More s p e c i f i c a l l y through the app l ica t ion of an economic incent ive i n the form of a charge on sawlog l o s s . Such a program would: (a) allow some degree of f l e x i b i l i t y i n that firms could choose to pay the charge or introduce techniques to control loss depending on which a l te rna t ive was most e f f i c i e n t i n terms of t he i r p a r t i c u l a r economic circumstances. (b) provide an opportunity for the forest industry to take in to account the external costs of t he i r log handling a c t i v i t i e s i n the r i v e r . (c) supply i n d i v i d u a l firms wi th an add i t iona l incent ive to introduce sawlog cont ro l measures over and above the extra p r o f i t generated as a resu l t of fewer losses . 23. Three charge l eve l s based on low, medium, and high estimates of the external costs of log movement on the Lower Fraser , are suggested as an experimental program of economic incent ives . The charge would be assessed against log owners for uncontrolled sawlogs recovered i n the r i v e r by independent salvage operators as fol lows: Medium Low High $0.08 per cubic foot $0.32 per cubic foot $0.61 per cubic foot 125. The charge rate should remain f l e x i b l e so as to r e f l e c t the p o l i t i c a l valuat ion of those environmental costs re la ted to the impact of sawlog p o l l u t i o n on the r i v e r system. The three rates suggested here are based on judgments made about these costs . 24. The charge system could be administered by the ex i s t i ng Gulf Log Salvage Cooperative under a revised cons t i t u t i on . 25. Such a system would provide for self-enforcement of the p o l i c y and allow each pr iva te f i rm to respond i n the most e f f i c i e n t manner for i t s p a r t i c u l a r circumstances and economic s i t u a t i o n . BIBLIOGRAPHY 126. B.C. Council of Forest Industries. Report of the Task Force on Log  Losses, 1974 B.C. Forest Service. Fraser River Debris Studies, F i l e No. 0268446, 1972, January 1973 and July 1973. B.C. Forest Service. Log and Debris Salvage i n the S t r a i t of Georgia, 1971. B.C. Research. Sinking of Hemlock Log P r o j e c t , No. 61-34-B, 1964. Chamberlin, Edward H. Monopolistic Competition, 6th e d i t i o n , 1950. Crocker, Thomas D. Contractual Choice, Natural Resources Journal, October 1973. Friedman, John.Retracking America: A Theory of Transactive Planning, 1973. Friesen, Fred. Westwater Recreational Land Use Study, 1974. Hardin Garrett. The Tragedy of the Commons, Science 162, December 1968. Haveman, Robert H. The Economics of the Public Sector, 1970. Kneese, A l l e n V. and Bower, B l a i r T. Managing Water Q u a l i t y : Economics, Technology, I n s t i t u t i o n s , 1968. K r u t i l l a and Eckstein, M u l t i p l e Purpose River Development; Studies  i n Applied Economics, Resources for the Future, 1958. LaForest, Gerard V. Natural Resources and Public Property Under the  Canadian C o n s t i t u t i o n , 1969. Nelson, Chris. Westwater Lower Fraser River Marina Study, 1972. P a c i f i c Northwest P o l l u t i o n Control Council, Log Storage and Rafting i n  Public Waters, 1971. Parchomchuk, William. Truck R a i l and Water Transport i n the B.C. Forest Industry, M.B.A. Thesis, U n i v e r s i t y of B r i t i s h Columbia, 1968. Scott, Anthony. Natural Resources - The Economics of Conservation, 1955. S e r v i s i , J.A. E f f e c t s of Decaying Bark on Incubating Salmon Eggs, 1970. U.S. Environmental Pr o t e c t i o n Agency, The Influence of Log Handling on  Water Quality, E.P.A.-R2-73-085, 1973. 

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