NEW FOREST MANAGEMENT AGREEMENT FOR SASKFOR MACMILLAN

Saskatchewan Environment and Resource Management (SERM) Minister Lorne

Scott and Saskfor MacMillan Limited Partnership President John

Robillard today signed a new Forest Management Agreement (FMA) which

will make possible the construction of a new OSB plant in Hudson Bay

and will ensure proper reforestation of the area.



Under the new FMA, Saskfor MacMillan is guaranteed a secure annual

supply of approximately 450,000 cubic metres wood for processing

facilities in Hudson Bay and Carrot River. Saskfor MacMillan assumes

responsibility for the sustainable management of the forest in the FMA

area including long-term planning with public and stakeholder

involvement, ongoing monitoring and reporting, and full renewal of

harvested sites. The agreement also commits the provincial government

to renew up to 70,000 hectares of Not Sufficiently Restocked (NSR)

lands over the next 10 years.



"This agreement is the fulfilment of a commitment that we made to the

people in this area, and to all the citizens of Saskatchewan - to make

sure that forest developments are sustainable," Scott said. "This

signing marks completion of the first example of a new process to

ensure the sustainability of forest developments that will double the

size of the forest industry in Saskatchewan and create 10,000 jobs."



This agreement follows the government's completion of an

integrated land use plan for the Pasquia-Porcupine area, as well

as Saskfor MacMillan's preparation of a 20-year Forest Management

Plan and Environmental Impact Statement (EIS). The company's

EIS, prepared over the last three years, was approved by the SERM

Minister last month, after thorough government, public and

independent scientific review.



"All of the processes used leading to the approval of this FMA

and the allocation of almost two million hectares of forest land

have helped to ensure that the proposed development is a good fit

with the available forest resource," Scott said. "We look

forward to working with Saskfor MacMillan and other forest

companies toward our shared goals of a sustainable forest

industry and a healthy forest ecosystem."



Robillard said, "The signing of this agreement ends many years of

uncertainty for the people of northeast Saskatchewan. Now we can

move forward and begin the management of this resource in a

sustainable manner and demonstrate our long-term commitment to

the people dependent on it."



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For more information, contact:



Hugh Hunt

Saskatchewan Environment and Resource Management

Regina

Phone: (306) 787-9117