This is a report on a compliance audit of Forest Licence A18671 held by Gorman Bros. Lumber Ltd. The audit examined timber harvesting and road practices, and related operational plans for the period June 15, 1998, to June 15, 1999, to assess compliance with the Forest Practices Code of British Columbia Act and related regulations (the Code).

The report examines if the flooding of ponds on the Neskonlith Indian Reserve was caused by forest practices and whether there were any contraventions of the Forest Practices Code of British Columbia Act and related regulations (the Code).

Neskonlith Indian Reserve #2 is situated about eight kilometres west of Chase, British Columbia. Three unnamed ponds are located on the reserve. Water levels in the ponds began rising in the spring of 1998 and the three ponds joined to form one lake. The high water levels flooded grassland and killed trees scattered around the perimeters of the ponds.