The NSW Environment Protection Authority has fined the NSW Foresty Corporation more than $45,000 for a contravention of post-fire logging regulations in the Mogo State Forest.
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An investigation by the EPA found Forestry cut down "at least 70" mature habitat trees, and fined Forestry for three separate breaches of site-specific operating conditions in Mogo State Forest between May 2020 and December 2020.
The fines mean Forestry has been fined $78,000 for offences committed in the Eurobodalla Shire over the past three years.
In a statement, Forestry Corporation acknowledged the fines and said it was in discussions with the EPA about the "definition and identification" of hollow bearing trees.
"The PINs relate to an operation under site specific operating conditions in Mogo State Forest where all hollow bearing trees were required to be protected," a Forest Corporation spokesperson said.
"Forestry Corporation undertook ground assessments with trained staff walking through the forest to identify trees with visible hollows and identified and protected hundreds of such trees during the harvesting operations.
"A small number of trees were determined by the EPA to have been hollow bearing trees after they were felled and FCNSW has received these fines as a result.
"Forestry Corporation is currently discussing with the EPA the definition and identification and visibility of hollow bearing trees before and after harvesting."
A spokesperson from the Nature Conservation Council of NSW said Mogo State Forest was home to several threatened species.
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"These species include powerful owls, greater gliders, gang gang cockatoos, yellow-bellied gliders, and the forest also contains important food sources for the critically endangered swift parrots," they said.
"Gang gangs and yellow-bellied gliders recently had their threat status upgraded, largely because the Black Summer bushfires have made their survival more precarious."
The spokesperson said the EPA was alerted to Forestry's breaches by volunteers of Coastwatchers Association Inc who inspected the forest after logging operations were completed.
"The EPA investigation was prompted by the detailed photographic evidence with GPS coordinates that Coastwatchers provided."
Nick Hopkins, a spokesperson for Coastwatchers whose home was destroyed in the Black Summer bushfires, said the destruction of vital habitat trees so soon after the fires was "utterly appalling".
"Hollow bearing trees were scattered all over the forest floor like dismembered corpses," he said.
"Our members recorded at least 70 tree hollows that logging contractors had cut down in clear breach of post-fire orders.
"These hollows are critical for many species that bore the brunt of the catastrophic fires.
"The recent decisions by the Federal Environment Minister Sussan Ley to upgrade the threat status of some forests species was directly linked to the Black Summer fires.
Nature Conservation Council CEO Chris Gambian said the fines should give Forestry "pause for thought" about how they manage state forests.
"NSW state forests are not simply a natural resource - they are critical ecosystems that are not only vital for our wildlife, they are essential for the wellbeing of our society," he said.
"Forestry Corporation should not merely be a supplier of timber. It should be a world leader in sustainable forest management. These fines show just how far the corporation has to go to reach that standard."
The Forestry Corporation spokesperson said operations only took place in "re-growth forests" around the states.
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"Native forests provide important timber resources not available from the relatively small holdings of hardwood plantations planted in NSW over the last 50 years, and the demand for these timber products is strong for housing, furniture and infrastructure like powerpoles and wharf timbers," they said.
"Since the 2019-20 bushfires, Forestry Corporation has adopted additional environmental safeguards above the requirements of the CIFOA to balance providing timber to local industry ... and ensuring the forests can regenerate after the bushfires.
"These safeguards include things like setting aside additional areas from harvesting in feed tree clumps, landscape exclusions, and undertaking additional landscape surveys. These measures remain in place today.
"We also have increased our focus on compliance with additional resources on the ground for planning and monitoring, and are committed to complying with the stringent ruleset and minimising any environmental impact from operations so that the forests can regenerate and provide both wildlife habitat and timber supply for future generations."