A look at logging
Thinking timber in the Deh Cho

Derek Neary
Northern News Services

(This is the first in a series of articles regarding the state of the logging industry in the Deh Cho)

Fort Simpson (Feb 25/00) - The Deh Cho is rich in timber, but local political bodies in the region are at various stages on the matter of logging.

Timber prices have been climbing over the past few years and currently stand at approximately $450 per thousand board feet, still a far cry from 1996 levels, which peaked around $800 per thousand board feet, according to GNWT regional forester Steve Gooderham.

There's roughly 10 to 12 million cubic metres of spruce in the Liard Valley alone he said (there are approximately 200 board feet to the cubic metre).

"It was about '95 or '96 when everybody started saying of the quality of Northern timber, 'That is a good product,'" he said, adding that the greatest demand is for conifer. "Since I've come on board (three years ago) I've been getting a lot more inquiries from outside the territories, people looking for the wood ... it's up to the people looking for the wood to talk to the (Dene) bands. If they like the approach and it's good for everybody, then they, as a joint-venture company, will approach us (RWED) for a licence. "

Fort Liard

A "fair size" mill is in the plans for the Acho Dene Koe, but not until natural gas is flowing in the community to power it and other buildings, Chief Harry Deneron said.

"Even though we don't have natural gas (in the community) we intend to put a business proposal together this summer," he said.

It was hoped that Paramount would have natural gas available in Fort Liard this year, but that's clearly not going to happen, Deneron acknowledged. However, he said he believes there are other sources of gas to tap that won't force them to pipe it across the Petitot or Liard rivers.

He also said he's determined to wait until the benefits from logging can be maximized, just as the community has done with its oil and gas industry, he suggested. It will also take a while before enough human resources can be freed up from the oil and gas work to concentrate on logging, Deneron said.

"It's just something that's on standby for the time being because logs don't go away ... if you have good trees like you have here, it should make money," he said, adding that the Acho Dene Koe almost sold some logs to a company in Seattle because the price, in American dollars especially, was attractive.

The going rate for a thousand cubic metres is around $85, according to Deneron.

The Acho Dene Koe currently have a maximum allowable cut of 60,000 cubic metres of white spruce per year. Yet, unless the band acquires its own equipment, some of that profit will be lost to another outfit who would do the work, he pointed out.

He said the Acho Dene Koe would be interested in having another aboriginal group become a partner in their future mill.

"We want to do a good mill. The North has a bad reputation for mills that don't survive," he said.

In the meantime, the Acho Dene Koe have acquired a small, portable mill to process waste wood from clean-up projects around the community, he noted. A sizable amount of timber is being harvested through the construction of access roads, leases and right-of-ways, he said.

Nahanni Butte

Jim Betsaka, manager of the Nahanni Butte Development Corporation, said the Nahanni Butte Dene Band hopes to work alongside other communities to make a saw mill more feasible.

"The amount of logs that's allocated to us isn't enough to supply a mill," he said. "If we combine all our wood we can make it work. One community can't do it alone, unless you're in Fort Liard."

The band is cutting 24,000 cubic metres this year through a joint-venture with Trans-North, a private company. The logs are being exported to Prince George, B.C., but the allowable export decreases each year. The percentage of timber that isn't exported is milled through Mackenzie Wood Products (near Check Point), but "that's where we always lose money," he contended.

Next year the plan is to cut 35,000 cubic metres and acquire a portable mill to process it in or near Nahanni Butte, according to Betsaka. The extra employment will create an even bigger boost, he added.

The community currently receives a share of the wood it needs and an annual dividend, he said.

"We have invested probably over half-a-million dollars to date on our own access road into the community," he said. "This is where we put people to work again. It's going back into the community."