The Teal Jones Group, Honeymoon Bay Operation was certified to the CSA Sustainable Forest Management Z809-02 Standard in December 2005; Fraser Valley Operation was certified in November 2007. The two operations were certified under a joint certificate in November 2008. The following is a summary of the External Audit Reports:

• 12 month Re-Assessment Audit Honeymoon Bay and Fraser Operations Sep. 2011
• 12 month Surveillance Honeymoon Bay and Fraser Operations September 2010
• 12 month Surveillance Honeymoon Bay and Fraser Operations November 2009
• Registration Audit Honeymoon Bay and Fraser Operations November 2008
• 24 month Surveillance Honeymoon Bay Operation March 2008
• Registration Audit Fraser Valley Operation November 2007
• 12 month Surveillance Honeymoon Bay Operation January 2007
• Registration Audit Honeymoon Bay Operation December 2005

Audit Report Summary
(12 month Re-Assessment Audit Honeymoon Bay and Fraser Operations Sep. 2011)

The Teal Jones Group underwent a Re-Assessment Audit of their management system to the CAN/CSA - Z809-2008 Sustainable Forest Management Standard in September 2011. The audit was conducted by a third party, QMI SAI Global in the Defined Forest Area (operations in Honeymoon Bay and Fraser Valley). The audit included field tours and office (interviews and file reviews), as well as interviews with Teal personnel, members of the public advisory groups, First Nations with traditional territory within the Defined Forest Area and government agencies.

The following is a summary of the audit results:

• The Teal-Jones Group will be recommended for re-registration.
• All of the applicable requirements of the CAN/CSA Z809-2008 Sustainable Forest Management standard were considered to be adequately implemented.
• There were no instances of Non-Conformances or Non-Compliances.
• Four Areas of Concern were identified. The audit found that:
  
  
  • the Terms of Reference did not clearly define provisions on a mechanism to measure participants' satisfaction with the process.
  • the 2005 Environmental Policy did not include a statement that the company will honour all international agreements and conventions relevant to SFM to which Canada is a signatory.
  • details were lacking on pre-work checklists where specific requirements for management around streams eg. decking and clean up and fuel management criteria for fueling were required.
  • an area identified with Japanese Knotweed with not grass seeded as per the strategy in the FSP (Indicator F2.1 Invasive Plants).
• Several Opportunities for Improvement and Positive Aspects were also noted

Audit Report Summary
(12 month Surveillance Honeymoon Bay and Fraser Operations September 2010)

The Teal Jones Group underwent a surveillance audit in September 2010. The audit was conducted by a third party, QMI SAI Global in order assess compliance with the CAN/CSA Z809-2002 Sustainable Forest Management for the Defined Forest Area (operations in Honeymoon Bay and Fraser Valley). The audit included field tours and office (interviews and file reviews), as well as interviews with Teal personnel, members of the public advisory groups, First Nations with traditional territory within the Defined Forest Area and government agencies. The following is a summary of the audit results:

• The Teal-Jones Group will continue to be recommended for registration.
• All of the applicable requirements of the CAN/ CSA Z809-2002 Sustainable Forest Management standard were considered to be adequately implemented.
• There were no instances of Non-Conformances or Non-Compliances.
• One Area of Concern was:
  • The audit found that 3 - S6 streams (presently dry) had logs decked in them contrary to the Yarding and Loading SOP which states to protect the stream channels and banks and maintain natural drainage patterns. Ensure the plans address the placement of logs during harvest to protect the riparian resources.
• Several Opportunities for Improvement and Positive Aspects were also noted

The Auditor interviewed a selection of First Nations and PAG Members and summarized their comments. The Audit report also included a letter submitted to the Auditor from a First Nation outlining their satisfaction with Teal's SFM process as well as a few concerns.

Audit Report Summary
(12 month Surveillance Honeymoon Bay and Fraser Operations November 2009)

The Teal Jones Group underwent a surveillance audit in November 2009. The audit was conducted by a third party, QMI SAI Global in order assess compliance with the CAN/ CSA Z809-2002 Sustainable Forest Management and PEFC Annex 4 Chain of Custody standards for the DFA (operations in Honeymoon Bay and Fraser Valley; and associated Dryland Sorts). The audit included field tours and office (interviews and file reviews), as well as interviews with Teal personnel, members of the public advisory groups, First Nations with traditional territory within the DFA and government agencies. The following is a summary of the audit results:

• The Teal-Jones Group will continue to be recommended for registration.
• All of the applicable requirements of the CAN/ CSA Z809-2002 Sustainable Forest Management standard were considered to be adequately implemented
• The Chain of Custody continues to be adequately established and maintained as per the requirements of the PEFC Annex 4 Chain of Custody standard
• A Non-conformance was identified in the Sustainable Forest Management audit:
  • alternative strategies for the indicators have not been adequately documented in the SFMP.
• Two Non-conformances were identified in the Chain of Custody audit:
  • The organizations procedure failed to recognize the raw material flow sold to other mill sites and the documentation of this in the procedure.
  • The training provided to the staff did not utilize the most current Standard Operating Procedure.
• Four Areas of Concern were identified in the Sustainable Forest Management audit:
  • Performance Requirements: Ensure that all forecasts have been reviewed and updated by the 2010 external audit.
  • Training Awareness: Ensure all contractors are trained as per the CMS requirements and provided with the required documents.
  • Communication: although the external audit summary’s are included on Teal’s website, the summary’s provided did not include the 2008 QMI audit findings.
  • Operational Controls: Ensure the required SOP’s are distributed and available at the active operations.
  • Nonconformity Corrective and Preventative Actions: Ensure the items listed on the Corporate Tracker are reviewed and completed in a timely manner.
• Four Areas of Concern were identified in the Chain of Custody audit:
  • Ensure the procedure describes how certified and non-certified logs are segregated on the sort.
  • The production batch must be clearly described to identify the products covered by the Chain of Custody.
  • Document who has the responsibility for maintaining the Chain of Custody records and where they are located.
  • Document who has the overall responsibility and authority for the Chain of Custody
• Several Opportunities for Improvement and Positive Aspects were also noted

The Auditor interviewed a selection of First Nations and PAG Members and summarized their comments. The Audit report also included a letter submitted to the Auditor from a group of FPAG members outlining their concerns.

Audit Report Summary
(Registration Audit Honeymoon Bay and Fraser Operations November 2008)

The Teal Jones Group underwent a registration audit in November 2008. The audit was conducted by a third party, QMI SAI Global in order assess compliance with the CAN/ CSA Z809-2002 Sustainable Forest Management and PEFC Annex 4 Chain of Custody standards for the DFA (operations in Honeymoon Bay and Fraser Valley; and associated Dryland Sorts). The audit included field tours and office (interviews and file reviews), as well as interviews with Teal personnel, members of the public advisory groups, First Nations with traditional territory within the DFA and government agencies. The following is a summary of the audit results:

• The Teal-Jones Group will continue to be recommended for registration.
• All of the applicable requirements of the CAN/ CSA Z809-2002 Sustainable Forest Management standard were considered to be adequately implemented
• The Chain of Custody continues to be adequately established and maintained as per the requirements of the PEFC Annex 4 Chain of Custody standard
• There were no instances of Non Conformance
• Five Areas of Concern were raised during the audit and relate to the following elements of the CAN/CSA Z809:2002 standard:
  • Indicators (General-2)
  • Indicators (Specific-1)
  • Emergency Preparedness and Response,
  • Monitoring and Measurement, and
  • Internal Audit.
• Several opportunities for improvement and good practices were identified.
• The Auditor interviewed a selection of First Nations and PAG Members and summarized their comments.

Audit Report Summary
(24 month Surveillance Honeymoon Bay Operation March 2008)

Teal Cedar Products Ltd. Operations in Honeymoon Bay (southwest Vancouver Island) and the Dryland Sort facility in Duke Point underwent a surveillance audit in March of 2008. The audit was conducted by a third party, Quality Management Institute (QMI) in order assess compliance with the CAN/ CSA Z809-2002 Sustainable Forest Management and PEFC Annex 4 Chain of Custody standards. The audit included field tours and office (interviews and file reviews), as well as interviews with members of the public advisory group, First Nations with traditional territory within the DFA and government agencies.

The following is a summary of the audit results:

• All of the applicable requirements of the CAN/ CSA Z809-2002 Sustainable Forest Management standard were considered to be adequately implemented
• The Chain of Custody continues to be adequately established and maintained as per the requirements of the PEFC Annex 4 Chain of Custody standard
• Zero Non-conformances were identified
• Two System Weaknesses were identified in the Sustainable Forest Management audit:
• Teal must ensure there is an indicator under Element 6.1 of the standard that better addresses the requirement to recognize and respect aboriginal and treaty rights
• Teal must ensure there is a statement in the Sustainable Forest Management Plan that identifies that the company is committed to identifying and respecting aboriginal rights within the DFA
• Two System Weaknesses were identified in the Chain of Custody
  audit:
• Teal must ensure that all suppliers of non-certified logs submit a written statement to identify that the logs received are not from controversial areas
• Teal must ensure that a risk assessment is carried out of all areas where logs are received from to identify if the logs are from high or low risk areas
• Several Opportunities for Improvement and Positive Aspects were also noted

Audit Report Summary
(Registration Audit Fraser Valley Operation November 2007)

Teal Cedar Products Ltd. operation in Fraser Valley was successfully registered following an audit in November 2007. The audit was conducted by Quality Management Institute (QMI) in order to assess compliance with the CAN/ CSA Z809-2002 Sustainable Forest Management Standard.

The following is a summary of the audit results:

• All of the applicable requirements of the CAN/CSA-Z809-2002 Standard were audited and considered to be adequately implemented.
• Zero Non-Conformance were issued. Six system weaknesses were identified that will need to be addressed before the next Surveillance Audit.
• Several Positive Aspects of the Management System and Opportunities for improvement were also noted. Good record keeping and tracking of action items.
• No compliance issues were noted. The MoFR noted that there is a good level of cooperation from Teal Jones.
• The Fraser Public Advisory Group (FPAG) members felt that the process is working out well. There is a general feeling that information is being communicated to the FPAG in order to facilitate effective indicator development. The FPAG recommended that field trips and more guest speakers be considered for the next year.

Audit Report Summary
(12 month Surveillance Honeymoon Bay Operation January 2007)

Teal Cedar Products Ltd. operations in Honeymoon Bay (southwest Vancouver Island) and Dryland Sort Facility at Duke Point underwent a surveillance audit in January of 2007. The audit was conducted by Quality Management Institute (QMI) in order to assess compliance with the CAN/CSA Z809-2002 Sustainable Forest Management standard and PEFC Annex 4 Chain of Custody Standard.

The following is a summary of the audit results:

• All of the applicable requirements of the CAN/CSA-Z809-2002 and PEFC Annex 4 (Chain of Custody) were audited and considered to be adequately implemented.
• Zero Non-Conformance (NCR) was noted during the audit.
• The corrective Action Plan for the previous minor non-conformance finding from the 2005 audit was reviewed and closed.
• First Nation participation in the Southwest Island Public Advisory Group was highlighted as a positive aspect of the system. Members expressed a high level of satisfaction with the PAG process and are impressed with willingness of Teal Jones to share information and consider issues that were raised by the PAG and the SFM Planning process in general.
• Several opportunities for improvement were identified.
• Teal continues to maintain a good relationship with MoFR Compliance and Enforcement as well as achieve a good compliance record.

Audit Report Summary
(Registration Audit Honeymoon Bay Operation December 2005)

Teal Cedar Products Ltd. operations in Honeymoon Bay (southwest Vancouver Island) and Dryland Sort Facility at Duke Point, were successfully registered following an audit in December 2005. The audit was conducted by Quality Management Institute (QMI) in order to assess compliance with the CAN/CSA Z809-2002 Sustainable Forest Management standard and PEFC Annex 4 Chain of Custody Standard.

The following is a summary of the audit results:

• All of the applicable requirements of the CAN/CSA-Z809-2002 and PEFC Annex 4 (Chain of Custody) were audited and considered to be adequately implemented.
• One minor Non-Conformance relating to Checking and Corrective Action was issued.
• Several Positive Aspects of the Management System and Opportunities for improvement were noted.
• No outstanding compliance issues of any significance were noted.
• Southwest Island Public Advisory Group (SIPAG) members felt that their input into SFM plan was well received-felt they had made a definite contribution to the development of the final SFM plan and Values, Objectives Indicators & Targets.