Daily Archives: December 19, 2019

Today’s Takeaway

Pundits ponder as Nova Scotia premier defers until Friday

December 19, 2019
Category: Today's Takeaway

Nova Scotia premier holds off commenting on Northern Pulp’s future until tomorrow, drawing opposition ire and pundit conjecture. Meanwhile, despite the efforts of BC’s labour minister and premier Horgan’s hopes, the forestry strike drags on; US housing starts fail to spur lumber prices, US homebuilders applaud NAFTA 2.0; and analyst’s revise Canfor’s target price up after failed takeover bid.

In Climate/Forestry news: Canada’s top ten weather stories point to more extremes; Australia experiences record temperatures, declares wildfire emergency; the Sierra Club’s take on old-growth logging and greenhouse gas emissions.

Finally, is your wrapping paper recyclable? Try the AF&PA scrunch test.

Kelly McCloskey, Editor

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Business & Politics

Will New USMCA Trade Deal Calm Industry Jitters?

By Bruce Buckley
Engineering News-Record
December 18, 2019
Category: Business & Politics
Region: Canada, United States

News that House Democrats and the Trump administration have come to an agreement on the United States-Mexico-Canada Agreement (USMCA) provided a bit of calm in the storm over trade policies that have roiled the construction market since 2017. The National Association of Home Builders (NAHB) praised the Dec. 10 announcement. …David Logan, NAHB director, says important effects of the deal are providing some level of certainty to U.S. trade policy with key partners and increasing business confidence. …NAHB is particularly focused on the effect on lumber prices. Logan noted that one of the critical components that remains in place from NAFTA is a dispute resolution mechanism. “It’s been used so often in softwood lumber disputes with Canada to combat tariffs that the U.S. has placed on incoming lumber,” Logan adds. …Despite recent announcements and ongoing tariffs, Logan says he has a “fairly positive outlook on pricing moving forward.”

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LP’s Neil Sherman will lead American Wood Council’s Board

By American Wood Council
Thomasnet.com
December 19, 2019
Category: Business & Politics
Region: Canada, United States

Leesburg, VA. – The American Wood Council (AWC) announced the election of LP Corp’s Executive VP Neil Sherman as the AWC Board of Directors’ Chairman for a one-year term. T. Furman Brodie, VP of Charles Ingram Lumber was elected First Vice-Chairman, and Eric Cremers, President of PotlatchDeltic, was elected as Second Vice-Chairman. Roseburg Forest Products Chairman Allyn Ford will serve as the Immediate Past Chairman. New members to the AWC board in 2020 include Nate Jorgensen, Boise Cascade; Kevin McKinley, Canadian Wood Council; Keith O’Rear, Weyerhaeuser; and Todd Payne, Seneca Sawmill. Mike Dawson with Norbord was elected to a second two-year term. …AWC President Robert Glowinski… said, “Neil has been in the wood products industry for over 25 years and has served on the AWC board for four years.

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B.C. labour minister to meet with both sides in forestry strike after talks break down

By Dean Stoltz
Chek News
December 18, 2019
Category: Business & Politics
Region: Canada, Canada West

B.C. Labour Minister Harry Bains said Wednesday afternoon that he plans to meet with both United Steelworkers Union and Western Forest Products following the breakdown in talks Tuesday.“I am disappointed to learn that talks for a renewal contract have broken off between Western Forest Products (WFP) and United Steelworkers (USW) Local 1-1937,” said Bains.“I have arranged to immediately meet with representatives of both parties to discuss how to move forward and find a solution that helps the parties reach an agreement that supports sustainable forestry jobs in coastal communities.”On the picket lines on Wednesday, workers say they are frustrated but remain determined. …Port McNeill Mayor Gaby Wickstrom says families are suffering more and more every day. …The union says alternate shift schedules is one of its main outstanding issues and that contracting out is still a main issue for WFP.

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Jobs minister talks up regional, provincial economies

By Mark Nielsen
Prince George Citizen
December 18, 2019
Category: Business & Politics
Region: Canada, Canada West

Bruce Ralston

There is “every reason” to be optimistic about the economy heading 2020, B.C. Jobs, Labour and Technology Minister Bruce Ralston said this week. “Certainly there will be challenges, I wouldn’t want to minimize those in the forest sector, but in broad terms, the opportunities in British Columbia and the region of Prince George are pretty good for the year to come and so I’m optimistic…” Ralston said. …On the troubles in the forest sector, he made reference to the $69-million support package for displaced sawmill workers. “The forest industry, I think, will come back but probably not in the same strength as it was before,” Ralston said in reference to the major lumber producers. He made note of relative buoyancy among the pulp and pellet producers. …In response, Prince George-Valemount MLA Shirley Bond …accused the NDP of lacking a jobs plan and of being “out of touch on the forestry file in particular.”

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Fruitvale mill navigating through market downturn

By Sheri Regnier
The Trail Times
December 18, 2019
Category: Business & Politics
Region: Canada, Canada West

With the B.C. lumber industry plagued by a market downturn for most of 2019, a Fruitvale company is plugging along each day like they have for the past 60+ years. “I can tell you that business conditions in the forest industry in North America and particularly B.C. are very challenging right now,” said Scott Weatherford, chief executive officer for ATCO Wood Products. …Weatherford said his company is monitoring conditions daily but didn’t offer any speculation on Christmas production schedules. …As a producer of softwood veneer for the plywood industry, ATCO supplies a small, niche product to a market that has experienced a downswing this year. …Aside from poor market conditions, wildfires and ongoing insect infestations have wholly impacted the industry for several years. But the Beaver Valley business has prepared itself to face these challenges through progressive planning.

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Horgan refuses to act on forestry

Donna Barnett, MLA
The 100 Mile Free Press
December 18, 2019
Category: Business & Politics
Region: Canada, Canada West

Donna Barnett

Fed up with inaction on the part of John Horgan and the NDP, forest workers on Vancouver Island converged on the B.C. Legislature last week to demonstrate the need for government to do something to prevent the industry from further collapse. …Up until now, the provincial government has largely ignored the forestry crisis in rural and northern B.C. because the NDP has few seats outside of Metro Vancouver. The strike at Western Forest Products is different, however, as the NDP holds eight of the twelve seats on Vancouver Island, yet Horgan still won’t act. That’s because United Steelworkers are the NDP’s biggest financial supporter and Horgan refuses to help end the strike. But there comes a time when government can’t take sides in a labour dispute and must take action when two parties are too far apart.

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Brutal forestry strike drags on despite Horgan’s hopes

By Mike Smyth
The Province
December 18, 2019
Category: Business & Politics
Region: Canada, Canada West

Talks broke down Tuesday, after the premier raised hopes of a settlement. Gaby Wickstrom, the hard-working mayor of Port McNeill, says… the strike is inflicting deep damage on the economy of north and central Vancouver Island, damage that hits home with struggling families. …On Tuesday, Western Forest Products issued a terse news release saying contract talks had broken off with the United Steelworkers union and no new talks are scheduled. …“When you hear the premier saying multiple times that the end was coming, that it’s imminent, you get your hopes up,” she said. …Wickstrom and other officials are scheduled to meet Thursday with Forests Minister Doug Donaldson. …Wickstrom and other local mayors and officials will likely plead again for some sort of government intervention in the dispute. Maybe arbitration, or a cooling-off period or an industrial inquiry commission.

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In Nova Scotia, pulp rules; it always has and until the forests have nothing left, it always will

By Linda Pannozzo
The Halifax Examiner
December 19, 2019
Category: Business & Politics
Region: Canada, Canada East

Tomorrow, Premier Stephen McNeil is going to hold a news conference to announce his intentions regarding the legislated deadline for closing down Boat Harbour as Northern Pulp’s waste lagoon. …Given that successive governments have bowed to pulp interests, and given that it’s not an overstatement to say that for decades the province has been held hostage by the industry’s demands — damaging so many of our prospects to restore the forests, protect forest-dependent species at risk, and ensure a viable, long-term, plan — my spiny sense is on high alert. For me, it’s not inconceivable that Minister Wilson’s decision, to require a full EA, was intended to play into Northern Pulp’s hands. …If I were a betting man I’d say Premier McNeil is going to allow an extension to the Boat Harbour deadline.

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Lawyer for Pictou Landing believes Boat Harbour deadline will stand

By Andrew Rankin
The Chronicle Herald
December 19, 2019
Category: Business & Politics
Region: Canada, Canada East

Premier Stephen McNeil will honour the province’s commitment to Pictou Landing requiring Northern Pulp to stop pumping effluent into Boat Harbour by Jan. 31 because otherwise the First Nation community would have been consulted, says a lawyer representing Pictou Landing. “The province has a duty to consult with Pictou Landing about how a decision to extend the Jan. 31 deadline would impact them,” said Halifax lawyer Brian Hebert. The lawyer was part of negotiating the deadline … But the premier has faced heavy criticism for not yet announcing whether he intends to stand by the Act his government signed off on. He issued a statement on Wednesday saying he would announce his decision on Friday. …Gordon Wilson is requiring the mill to file a full environmental assessment that could take years to complete, said Hebert. Hebert doesn’t believe the premier is willing to wait that long and is confident the Boat Harbour deadline will remain in effect. [May require a subscription to read the full story]

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Premier’s delay on Boat Harbour decision draws opposition ire

By Michael Gorman
CBC News
December 18, 2019
Category: Business & Politics
Region: Canada, Canada East

Stephen McNeil

Nova Scotia Premier Stephen McNeil won’t speak publicly about the future of Boat Harbour and Northern Pulp until Friday, a move that’s drawing heaps of scorn from opposition leaders. …On Tuesday, Environment Minister Gordon Wilson said the company’s environmental focus report lacked enough science-based information for him to make a decision. …Wilson ordered an environmental assessment report, a process that could take at least two years. Mill officials responded by saying they would take time to consider the future of the operation and called on McNeil to make a decision as soon as possible about whether he would extend the legislated closure date of Boat Harbour. …McNeil is also expected to address the issue of what would become of Northern Pulp’s loans of $85.5 million from the province should the mill stop operating. …Opposition leaders lambasted McNeil’s silence.

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Nova Scotia premier holds off commenting on future of Northern Pulp mill

Canadian Press in CTV News Atlantic
December 18, 2019
Category: Business & Politics
Region: Canada, Canada East

HALIFAX — Nova Scotia’s premier has delayed his decision on the future of the Northern Pulp mill, drawing political fire from opposition leaders who accuse him of running from his responsibilities. Stephen McNeil was expected to address the situation on Wednesday, but his office issued a short statement saying he would now do so on Friday. McNeil said in an interview he needs to reflect on whether to give the company more time to complete an environmental assessment or let a legislated deadline stand. …”I need to weigh all sides of this,” McNeil said of a decision he described as the most difficult he’s had to make in his six years as premier. “There isn’t one side or another. There’s many facets associated with this whole issue… This is people’s lives.” …Pictou Landing Chief Andrea Paul said there is nothing the government can offer the band to win its approval for an extension.

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Hornepayne lumber-power operation lauds new forestry strategy

Northern Ontario Business
December 18, 2019
Category: Business & Politics
Region: Canada, Canada East

A joint lumber-power operation in northwestern Ontario is commending the provincial government’s commitment to a new Forestry Sector Strategy that’s aiming to help create jobs, promote economic growth, and reduce costs to business. The province unveiled a draft of the strategy on Dec. 4. A compilation of feedback gathered from industry, community, and Indigenous leaders, the draft is now available to the public on the Environmental Registry. In a Dec. 18 news release, Hornepayne Lumber and Hornepayne Power outlined the benefits of the strategy to their venture. The two operations together form an integrated sawmill and biomass cogeneration plant. In 2017, three area First Nations – Missanabie Cree, Chapleau Cree, and Netmizaaggamig Nishnaabeg (Pic Mobert) – formed the Northeast Superior First Nations Investment LP (NSFNI LP) consortium, investing $4-million into the operation to become equity partners in the enterprise, which had been shut down since 2015.

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UK timber evangelist Terence Mallinson dies aged 90

Timber Trades Journal
December 18, 2019
Category: Business & Politics
Region: International

Terence and Anne Mallinson

One of the UK timber industry’s best-known individuals – Terence Mallinson – has died at the age of 90. Mr Mallinson was the director at William Mallinson’s, director at Mallinson Denny, president of the Timber Trade Federation (1989-91), president of the Institute of Carpenters (IoC), President of the former Institute of Wood Science (IWSc), founder of the Forest Education initiative (FEI), instigator and developer of the Carpenters Awards (1970) – later becoming the Wood Awards – and was a Forestry Commissioner between 1989-1996. A statement by the TTF described him as an “amazing evangelist in the timber trade” and to the end he maintained an amazing interest and enthusiasm in all things wood.

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Global production of wood products posts highest growth in 70 years

By FAO
Food and Agriculture Organization of the United Nations
December 19, 2019
Category: Business & Politics
Region: International

The global production and trade of major wood products such as industrial roundwood, sawnwood and wood-based panels have surged to their highest level since the Food and Agriculture Organization (FAO) began recording forest statistics in 1947. According to the latest data released by FAO, record volumes of wood-based products were produced and traded around the world in 2018. The value of international trade was 11% higher than in 2017. “The increased production of renewable forest products provides an opportunity to replace fossil-based products that have a higher carbon footprint, thereby contributing to the Sustainable Development Goals,” said Sven Walter, senior forestry officer who heads FAO’s forest products and statistics team. The fastest growth was seen in North America, Europe and the Asian-Pacific region, largely driven by positive economic growth.

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Finance & Economics

Analysts expect ‘short-term’ pain for Canfor stock after shareholders spurn billionaire’s takeover offer

By Gabriel Friedman
The Financial Post
December 17, 2019
Category: Finance & Economics
Region: Canada, United States

Canfor Corp.’s stock, which had been trading around $15.52 on Monday dropped more than 18 per cent. …Analysts said the drop was expected and several signs pointed to a likely recovery. …Paul Quinn, an analyst with RBC… wrote that he had lowered his price target for Canfor to $16 based on an expectation that Great Pacific’s bid would win shareholder approval. But in light of the rejection, he revised his price target to $22. …Hamir Patel, of CIBC, also wrote that the horizon looks clearer for the industry. …Mark Wilde, a BMO analyst, wrote that Great Pacific’s bid “significantly undervalues” Canfor and had placed a $22 to $24 intrinsic value on the company.

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US Housing Starts vs Softwood Lumber Prices: 3Q 2019

By Madison’s Lumber Reporter
Cision Newswire
December 19, 2019
Category: Finance & Economics
Region: Canada, United States

Housing starts in the US grew +3.2% in November to a seasonally adjusted annual rate of 1.365 million and the pace for October was revised upward, according to the Department of Housing and Urban Development and the Department of Commerce December 17. …Canadian and US sawmills are reporting they are holding off booking new sales until January, just to  maintain current price levels. …For their part, similarly, reloads, wholesalers, and secondary suppliers have also not been building lumber inventory. …Sentiment among customers that prices might go down stubbornly persists.

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Wood, Paper & Green Building

Sauter Timber picks Estacada for CLT fab facility

By Stephanie Basalyga
Pamplin Media Group
December 18, 2019
Category: Wood, Paper & Green Building
Region: United States

An effort to establish mass timber as a cluster industry in Clackamas County is about to take a giant step forward. County officials, along with city leaders from Estacada, announced this week that Sauter Timber, recognized nationally as a leading second-tier manufacturer in the mass timber sector, will open an Oregon production plant in 2020. The company, which is based in Rockwood, Tennessee, has purchased five acres of land in the Estacada Industrial Park located off State Highway 211 and plans to build a manufacturing facility expected to bring at least 25 new jobs to Clackamas County. Started in the early 2000s by Reinhard Sauter, Sauter Timber built a reputation turning out timber framing and timber components before expanding into prefabricated cross-laminated timber (CLT) and glulam components for buildings. It’s the latter service that Sauter Timber plans on focusing on in its Estacada facility, which could be up and running by the middle of next year.

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The case against wrapping paper

By Stan Noraczek
Popular Science
December 18, 2019
Category: Wood, Paper & Green Building
Region: United States

Wrapping paper is ridiculous. It’s reportedly a roughly $7 billion business in the U.S. alone. It creates millions of tons of waste; estimates claim half of it ends up in landfills. …“But, I recycle my wrapping paper”. …Despite the “paper” in its name, much of that festive wrap does more harm than good when you throw it in the recycling bin. “Paper with coatings, glitter, foil, bows, etc. is generally not recyclable”. …The American Forest and Paper Association recommends trying something called the “Scrunch Test” to determine whether to trash or recycle it. Crinkle the paper up into a ball—if it stays that way when you let go, it’s fine to put in the recycle bin. If it tries to go back to its original shape, there’s a good chance it’s going to the landfill.

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Forget the log cabin. Wood buildings are climbing skyward – with pluses for the planet.

By Doug Struck
Chicago Tribune News
December 18, 2019
Category: Wood, Paper & Green Building
Region: United States, US East

…Builders see engineered wood and CLT as a way to construct midrise structures faster and cheaper. City planners see a fast track that could help reduce housing shortages. Architects love its light weight and look. And some environmentalists tout its ability to lock up carbon to combat climate change. …Advocates envision a radical shift in construction, with wood buildings of seven to 18 stories sprouting wholesale in cities, drastically reducing the cement and steel that generate tons of greenhouse gases. …Not all environmentalists are on board, though. The Sierra Club contends that nearly two-thirds of trees’ carbon is lost to the atmosphere when forests are cut and milled, and replanting young trees does not always offset that loss. …The timber structures, proponents believe, will be as long-lived and energy-efficient as those made of steel or concrete. The concrete industry hotly contests these assurances. …Nationwide, the possibilities depend in part on the availability of the engineered wood.

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The European Furniture Industries Confederation calls for harmonized standards

EUWID Wood Products and Panels
December 18, 2019
Category: Wood, Paper & Green Building
Region: International

The European Furniture Industries Confederation (EFIC) released a manifesto containing a variety of calls for action by EU decision-makers in November. The manifesto for the European Parliament’s current legislative period from 2019 to 2024 focuses on a number of issues: harmonising standards, conformity assessments, certifications and product labelling at EU level that would create a level playing on the EU internal market, promoting the circular economy and recycling as well as the gradual phase-out of harmful chemicals. The EFIC said that areas where not enough harmonisation currently exists include formaldehyde and flame retardants, which are subject to different rules in EU countries, and patchy implementation of due diligence systems required under the EU Timber Regulation. 

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Forestry

B.C.’s clear-cut forests are ‘dead zones,’ emitting more greenhouse gases than fossil fuels, report finds

By Clare Hennig
CBC News
December 18, 2019
Category: Forestry
Region: Canada, Canada West

The clear-cutting of B.C.’s forests is contributing more to greenhouse gases than the burning of fossil fuels, according to a new report from the Sierra Club of B.C. The report found that 3.6 million hectares of old-growth and second-growth forests were clear-cut in the province between 2005 and 2017 — creating  “dead zones” that, combined, are larger than Vancouver Island. It says the clear-cuts create carbon sequestration dead zones that put more carbon into the atmosphere from decomposing matter and soil than newly replanted trees can absorb. …”It’s a huge problem that the emissions from forests are not counted as part of our official emissions,” Wieting said. …Rik Logtenberg, a city councillor in Nelson, worries about how reports like the one coming out of the Sierra Club B.C. will impact public morale.

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Three aerial treatments to eradicate gypsy moth planned

By Ministry of Forests, Lands, Natural Resource Operations and Rural Development
Government of British Columbia
December 18, 2019
Category: Forestry
Region: Canada, Canada West

To prevent gypsy moth populations from becoming established and minimize the risk they pose to forests, farms, orchards and trees, government is planning aerial-spray treatments in three regions of the province in 2020. The Ministry of Forests has applied for a pesticide-use permit to aerial spray 241 hectares of residential and municipal parkland in North Surrey, 231 hectares in the centre of Lake Cowichan townsite and 167 hectares of semi-rural properties and wooded area north of Castlegar. Trapping and monitoring results over the past several years show clear evidence that gypsy moth populations are becoming established in the proposed treatment areas. If left untreated, the invasive moth could spread to new areas of the province via vehicles, containers, rail and marine vessels. The North Surrey area was hand sprayed in 2017 and 2018, and aerially sprayed in 2019. It is now apparent that the treatments did not completely eradicate this infestation.

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More land to be purchased from Cottonwood Lake logger

By Bill Metcalfe
Nelson Star
December 17, 2019
Category: Forestry
Region: Canada, Canada West

The Cottonwood Lake Preservation Society has entered into an agreement with a timber company to purchase 40 hectares of land, part of which had been slated for logging and almost half of which has already been recently clearcut (see map). The land is adjacent to 21 hectares of forest land at Cottonwood Lake purchased by the Regional District of Central Kootenay (RDCK) and added to Cottonwood Lake Regional Park earlier this year. The society has decided not to disclose the purchase price. “We are just saying that we have a fundraising goal of $750,000,” the society’s Andrew McBurney told the Star. “We are not disclosing the split between the purchase price and the ancillary costs.” Those costs, he said, include legal fees plus the costs of fundraising, administration, surveying, and subdividing.

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Trump Administration Determines No Federal Protections Needed For Oregon’s Red Tree Vole

By Monica Samayoa
Oregon Public Broadcasting
December 18, 2019
Category: Forestry
Region: United States, US West

The U.S. Fish and Wildlife Service has determined the north Oregon coast red tree vole does not warrant a listing as threatened under the Endangered Species Act. USFWS said the small mammal did not meet the definition of an endangered or threatened species after reviewing the best and most recent scientific data available. In 2011, the USFWS determined the population did warrant listing based on the information provided then. After conducing yearly species status assessments, known as a candidate notice of review, it reversed its decision based on past and present information in 2016. “What we discovered was a lot of that habitat exists on federal lands and it exists in large blocks,” U.S. Fish and Wildlife biologist Sue Livingston said.

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Grizzly bear managers voice concerns for Weyerhaeuser’s sale of Montana timberlands

By Laural Lundquist
The Missoula Current
December 18, 2019
Category: Forestry
Region: United States, US West

Members of the Interagency Grizzly Bear Committee on Wednesday said they’re worried about the potential impact of the sale of hundreds of thousands of acres of bear habitat in northwest Montana to a private equity firm. On Tuesday, Weyerhaeuser Company announced it was selling 630,000 acres of its timberland to an unnamed private investment firm for $145 million. …U.S. Fish and Wildlife Service biologist Wayne Casworm said he recalled the former Plum Creek easement was in the Fisher River basin. A fair amount of Weyerhaeuser’s land is in the Salish Mountains between Kalispell and Libby, so it provides connectivity for grizzly bears moving between the Northern Continental Divide Ecosystem and the Cabinet-Yaak ecosystem. …Wilderness Watch spokesman George Nickus asked the IGBC if they would try to approach the buyer and stress the importance of keeping the area somewhat wild.

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Carbon, Climate & Bioenergy

Canada’s Top Ten Weather Stories of 2019 – 2019 shows Canada’s changing climate is bringing more extreme weather

By Environment and Climate Change Canada
Cision Newswire
December 18, 2019
Category: Carbon, Climate & Bioenergy
Region: Canada

GATINEAU, QC – Environment and Climate Change Canada today released the 24th annual edition of Canada’s Top Ten Weather Stories. Canada’s Top Ten Weather Stories of 2019 clearly show, once again, that more and more Canadians are being impacted by extreme weather, from devastating wildfires and flooding to destructive storms and record droughts. Scientists have discovered that Canada is warming at nearly twice the global rate, with parts of western and northern Canada warming at a rate of three times the global average, and we know that, with warming, extreme weather events will happen more frequently. This year, Canadians in every region of the country were affected by extreme weather or climate events. They included destructive hurricanes, record flooding, snow storms, extreme cold, record heat, tornadoes, forest fires and poor air quality. These events resulted in hundreds of millions of dollars in property damage and billions of lost dollars for our economy.

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Forest Fires

Australia’s most populous state declares wildfire emergency

By Tristan Lafayette
The Associated Press in the Herald and News
December 18, 2019
Category: Forest Fires
Region: International

Australia’s most populous state of New South Wales declared a seven-day state of emergency Thursday as oppressive conditions fanned around 100 wildfires. Around 2,000 firefighters were battling the blazes, half of which remain uncontrolled, with the support of U.S. and Canadian backup teams and personnel from the Australian Defence Force. The last state of emergency ran for seven days in mid-November amid “catastrophic” fire risk and was the first implemented in New South Wales since 2013. Central Sydney reached a maximum of 39 degrees Celsius (102 Fahrenheit) on Thursday, while outer suburbs scorched at 42 Celsius (108 F). …Around 3 million hectares (7.4 million acres) of land has burnt nationwide during a torrid past few months, with six people killed and more than 800 homes destroyed. …Sydney’s air pollution levels on Thursday ranged from poor to hazardous.

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