Enclosure 4A - Project Summary Form
NATIONAL FIRE PLAN COMMUNITY ASSISTANCE AND WILDLAND URBAN INTERFACE PROJECTS
Application for Fuels Utilization and Marketing Projects
Applicant
Applicant/Organization:
Greater Eastern Oregon Development Corporation (GEODC)
Phone:
FAX:
Email:
541 276-6745
541/276-6071
mdrugge@oregonvos.net
Address (Street or P. O. Box, City, State, Zip):
P.O. Box 1041, Pendleton, OR 97801
Project Coordinator
Project Coordinator (Name and Title):
Melisa Jo Drugge, Executive Director
Organization/Jurisdiction:
GEODC
Phone:
FAX:
Email:
See Above
See Above
See Above
Project Information
Project Title:
Value-Added Options for Local Sawmill
Project Start:
Project End:
May 15, 2002
September 15, 2002
Federal Funding Request:
Total Project Funding:
$31,500.00
$39,500.00
Are you submitting multiple projects? If so, please explain and prioritize:
No
Brief Project Description:
Project consists of assisting Blue Mountain Lumber Products (Reith) and Boardman Chip Co.
(Boardman) (Richard Dodge, Owner) examine options to add value to smaller diameter logs
removed from Federal, State, and private lands in the Blue Mountains. A report will be produced
that will include basic market analysis and economic feasiblity, and general description of
equipment recommended or needed. Project includes limited testing of lumber samples to ensure
physical and mechanical suitability of raw material for purposes identified. Detailed engineering
design is not included.
Options that will be examined include:
1) Residuals - Pellets, Fire Logs and animal bedding;
2) Lumber and Trim Ends - Fingerjointed studs and glue-laminated stock, including suitability and
economics of Greenweld process for green lumber ;
3) Machine Stress Rating Potential; and
4) Maximization of Small Log Values at Boardman Chip Plant.
Project Location:
County:
Congressional District:
Reith and Boardman
Umatilla and Morrow
2nd
If the applicant is an unincorporated area, define the geographic area being represented:
Vicinities of Reith (unincorporated) and Boardman (incorporated)
Enclosure 4B (Page 1 of 3) - Project Narrative Description
Applications for funding must include a narrative response that describes the proposal. Please do not submit responses longer than one page,
single space, 12-pitch font.
Describe project including, but not limited to:
 project location
Address these
 project implementation
items as
 anticipated outcomes
applicable:
 measures and reporting
 partners





project income
project time frames
specify types of activities and equipment used
amount or extent of actions (acres, number of homes, etc)
environmental, cultural and historical resource requirements
Response:
PROJECT LOCATION: Blue Mtn. Lumber Products (Reith) and Boardman Chip Co. (Boardman);
PROJECT IMPLEMENTATION: Private consultants will be used to clarify economically feasible options to
add value to residuals and products produced by Blue Mtn. Lbr Products (Reith) and Boardman Chip Co.
(Boardman), as well as to raw material (logs). Blue Mtn. Lbr Products is a random length dimension mill
(max. production - two shifts of about 40 MMBF/yr.) and Boardman Chip Co. is a stationary chipping
operation located next to the Columbia River (max. production of over 50,000 BDT/yr.). Options that will be
examined include: 1) Methods and technology to extract more value from logs currently chipped at the
Boardman operation; 2) Pellets, fire logs and animal bedding from mill residuals; 3) Machine stress rating
potential of current and expected lumber output; and 4) Value-added markets for lumber and trim ends,
including, but not limited to, finger-jointed studs, glue-lam stock, including use of Greenweld gluing process
for green lumber. Project will probably be broken into two contracts, one for the pellets, fire log and animal
bedding option and the other for the remaining options. Limited testing of samples for MSR potential and
with Greenweld process are expected.
ANTICIPATED OUTCOMES: 1) Clear picture of economically feasible value-added options for both the
sawmill and chip operation; 2) Retention of about 97 jobs; 3) Improved utilization of smaller diameter logs;
and 4) Creation of 7+ full-time equivalent jobs.
MEASURES & REPORTING: Short updates from contractors will be required every 30 days, as well as
draft and final reports, summarizing results and implications, and recommendations.
PARTNERS: Currently include Blue Mountain Lumber Products, Boardman Chip Co., GEODC, and Oregon
Economic & Community Development Department (OECDD). Other interested potential partners include
Umatilla County, City of Pendleton, Pacific Power, Port of Morrow, and Morrow County.
PROJECT INCOME: None planned.
PROJECT TIME FRAMES: Less than six months (would prefer three months or less).
TYPES OF ACTIVITIES/EQUIPMENT PLANNED: Activities consist primarily of those related to market
and economic feasibility studies. No special equipment will be required, other than that used for sample
production and testing.
AMOUNT/EXTENT OF ACTIONS: Project will not produce fuel treatment acres or thinnings. If
successful, local markets for smaller diameter pine, Douglas-fir, larch, Engleman spruce, lodgepole pine, and
white fir will be retained and possibly expanded.
ENVIRONMENTAL/CULTURAL/HISTORICAL REVIEW REQUIREMENTS: None needed.
Enclosure 4B (Page 2 of 3) - Project Evaluation Criteria
Applications for funding must include narrative responses that address the following four criteria. Within each criterion, subcriteria are listed in descending order of importance. Limit your responses to the areas provided.
1. Increasing Local Capacity (35 Points)
A. How would the proposal improve or lead to the improvement of the local economy in terms of jobs and sustainable economic
activity? How many jobs are expected to be created or retained and for how long (please distinguish between essentially
year-round and seasonal jobs)?
B. Will biomass or forest fuels be utilized; if so, in what manner and how much?
C. Which, if any, private businesses will participate?
D. To what extent will this project be offered to serve as a model for other communities or businesses?
Response:
LOCAL ECONOMY: Results of study directly affect retention of up to 97 jobs, including about 57 at the
mill, 10 at the chipping facility, and the remainder related to in-the-woods operations. Between 20-30 of the
jobs are seasonal. Average wages are $12-14/hr. with benefits. In addition to retaining jobs, 7 or more jobs
will be created.
BIOMASS UTILIZATION: The chipping facility uses nothing but "chip" logs or biomass (capacity of over
50,000 BDT/yr.). The sawmill currently process about 6.5 MMBF of 8-in. or smaller logs per year with the
potential of doubling on two shifts. Options to add value to biomass and smaller diameter logs are needed
because of poor lumber and chip markets.
PRIVATE BUSINESS PARTICIPATION: Blue Mountain Lumber Products and Boardman Chip Co.
MODEL POTENTIAL: Project will be excellent model of non-profit and private business cooperation to
explore value-added markets for smaller-diameter logs and retain forest product jobs.
2. Reducing fire risk. (30 points)
Describe how the proposal promotes reduction of risk in high hazard areas and communities.
Describe how the proposed project benefits resources on federal land or adjacent non-federal land, or how it protects the
safety of communities.
C. To what extent does the project implement or create a cooperative fuels treatment plan or community fire strategy (include
evidence of the plan if it already exists)?
D. Explain how the proposal (a) leads to, enhances or restores a local fire-adapted ecosystem, and/or (b) mitigates or leads to the
mitigation of hazardous fuels conditions.
A.
B.
Response:
HAZARDOUS FUELS RISK REDUCTION: Much of the material used by the sawmill and chipping
operation comes from near or adjacent (within five miles) to at least twenty-five communities on the "Oregon
Interface Communities" list. The remainder comes from the Blue Mountains, which has been the subject of
many studies and reviews concerning high fuel hazard situations, and from Eastern Washington.
RESOURCE BENEFITS: Raw material for the two facilities comes from Federal, State, and private
timberlands, mostly in the Blue Mountain region. The Blue Mountain region has a national reputation for
high fire hazard and overstocked stands. Almost all the material processed comes from thinning or fuels
reduction projects.
COOPERATIVE FUELS TREATMENT PLAN/COMMUNITY FIRE STRATEGY PLANS: It is unknown
how much of current log supply comes from areas with cooperative fuels treatment or community fire
strategy plans. It is assumed that the log supply that comes from Federal and State lands (over 50%) is
related to watershed restoration and fuels treatment activities within Blue Mtn Demo Area
RESTORATION/MITIGATION OF HAZARDOUS FUELS CONDITIONS: Current log supply and size of
logs is indicative of objectives of most of removal - thinning to improve forest health and reduce fuel loading.
Sucessful implementation of value-added options will preserve public/private treatment options and markets.
Enclosure 4B (Page 3 of 3) - Project Evaluation Criteria
3. Increasing interagency and intergovernmental coordination. (15 Points)
A. To what extent have interested people and communities been provided an opportunity to become informed and involved in
this proposal?
B. Describe the extent of local support for the project, including any cost-sharing arrangements
C. What are the environmental, social and educational benefits of the project?
Response:
COMMUNITY INVOLVEMENT: This proposal is driven by a combination of public and private interests.
At this point, public involvement has been minimum due to the proprietary business nature of the discussions.
The City of Pendleton, Port of Morrow, Morrow County and Umatilla County are involved as potential match
contributors. GEODC and OEDCC will assist in dissemination of relevant results;
LOCAL SUPPORT/COST-SHARING: Local support is high for this project because of the number and
quality of jobs potentially affected (up to 97), and regional interest in the forest products industry. Match
commitments have been obtained from GEODC (in-kind), OECDD (in-kind), Blue Mountain Lumber and
Boardman Chip Company.
ENVIRONMENTAL/SOCIAL/EDUCATIONAL BENEFITS: Environmental - Value-added options for
smaller-diameter logs improve the economic feasibility of fuels treatments and thinnings, and indirectly
contribute to an increase in acres treated; Social - Probably the most signficant aspect of this proposal is its
potential to help retain up to 97 forest product sector jobs in a rural area, with corresponding indirect positive
impacts on social cohesion and capital; Educational - The results of this project will be illustrative and may be
utilized to guide for local economic development efforts related to primary processors and value-added
options.
4. Increasing interagency and intergovernmental coordination. (20 Points)
A. Explain the level of cooperation, coordination or strategic planning among federal, state, tribal, local government and
community organizations in developing this proposal. List the cooperators.
B. Describe how this project implements a local intergovernmental strategy or plan, or creates such a plan. Describe the plan if
it already exists.
Response:
INTERAGENCY COOPERATION/COORDINATION - The development of this proposal involved
GEODC, City of Pendleton, Umatilla County, OECDD, and U.S. Forest Service (State and Private).
Implementation and follow-up is expected to include the same organizations and agencies, and probably
more, depending on which options prove economically viable and how much capital is needed.
LOCAL INTERGOVERNMENTAL PLANS - The Baker-Morrow Partnership has identified in their
Regional Investment Fund Action Plan that "a sustainable effort to retain and aid in the expansion of existing
businesses on local, regional and national levels." They have identified as a priority "to diversify the resource
based economies of the Region. This will include finding new, more creative ways to make use of the
available resources and attracting new, non-resource based industries into the Region
The Northeast Oregon Alliance has identified in their Regional Investment Fund Action Plan "encourages the
production of higher value-added products."
Greater Eastern Oregon Development Corporations Comprehensive Economic Development Strategy has a
focus to "bringing economic prosperity to everyone in the Greater Eastern Oregon Development Corporation
service region." Also, one priority providing and organizing technical assistance services to local
communities and businesses to address problems and to prepare to take advantage of opportunities."
Enclosure 4C - Project Work Form
Tasks
Time Frame
Responsible Party
Completion of Contract With USFS, and
Preparation and Advertisement of RFPs
May 1 - May 15, 2002
GEODC, With Assistance from Blue
Mtn. Lbr. Prods, USFS & OECDD;
Review Responses to RFP and Award
Contract
May 15 - May 31, 2002
Same as Above
Implement Contracts (assuming one for
Pellets/Fire Logs and animal bedding and the
other for remainder of tasks)
July 1 - August 15, 2002
Same as Above
Preparation and Submittal of Draft Final
Reports
August 15 - August 31, 2002
Same as Above
Draft Final Report Review With Cooperators
and Completion of Final Report With
Suggested Revisions
September 1 - September 15, 2001
Same as Above
Enclosure 4D - Project Budget
Cost Category
Description
Personnel
Project Coordination/Admin.
Mill Mgr $50/hr 80 hrs
Subtotal
Federal
Agency
Applicant
$3,500.00
$500.00
$3,500.00
$500.00
Partner 1
Partner 2
Total
$0.00
$0.00
$4,000.00
$4,000.00
$8,000.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$2,500.00
$1,000.00
$2,500.00
$1,000.00
$0.00
$31,500.00
$0.00
$31,500.00
$4,000.00
$4,000.00
Fringe Benefits
Subtotal
$0.00
$0.00
$0.00
Travel
Subtotal
$0.00
$0.00
$0.00
Equipment
Subtotal
$0.00
$0.00
$0.00
Supplies
Subtotal
$0.00
Contractual
Contracts (2)
$28,000.00
Subtotal
$28,000.00
$0.00
$0.00
Other
Subtotal
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Total Costs
$31,500.00
$500.00
$6,500.00
$1,000.00
$39,500.00
Project (Program) Income1
1
$0.00
Program income is the gross revenue generated by a grant or cooperative agreement supported activity during the life of the
grant. Program income can be made by recipients from fees charged for conference or workshop attendance, from rental fees
earned from renting out real property or equipment acquired with grant or cooperative agreement funds, or from the sale of
commodities or items developed under the grant or cooperative agreement. The use of Program Income during the project
period may require prior approval by the granting agency.