Spearfish timber producer lays off 50 employees, says regulations are to blame

RAPID CITY, S.D. (KOTA) - Spearfish Forest Products is the largest sawmill in the Black Hills. A subsidiary of Wyoming-based Neiman Enterprises, the company operates just down the street from Black Hills State University in Spearfish.

Neiman Enterprises announced Thursday they have laid off 50 staff members in Spearfish. Some mass layoffs at larger companies come from financial troubles, but leaders with Neiman say this wasn’t the case here. Regulations on timber harvesting quantities forced them to cut their staff, as they had too many employees for the number of trees they were now allowed to harvest.

“It’s different from the West Coast, where I came from,” said Neiman Chief Operations Officer Scott Shaull. “We are very much dependent on the Forest Service.”

Timber harvests in the Black Hills must go through the Forest Service’s timber sale program. According to multiple Neiman executives, they aren’t allowed to operate in many parts of the Black Hills where forest thinning could be ecologically beneficial. These recent setbacks in timber harvesting have them concerned about the health of the forests.

“We’re reducing the capacity of our sawmills,” said Paul Pierson, Nieman’s Black Hills operations manager. “Which are our best way to treat our National Forest and our private lands to reduce the risk of catastrophic wildfire.”

Senator Mike Rounds introduced the Timber Harvesting Restoration Act in early March intending to increase timber sales in the Black Hills.

If passed, Spearfish Forest Products and other timber companies may be able to regain their previous employment and production levels.

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