I am curious if it is necessary or helpful for the tree's survival to seal the area of the tree after removing a burl like the one in your picture. Just very curious, not a tree hugger trying to stir the pot!
Not necessary in that case. Would be no different than an arborist trimming/pruning a tree in your yard. It's a good time of year, too, before things really begin blooming out.
In the case of legality, I think the "burl poachers" are an issue they have out west with the giant redwoods & such. The west coast has a thriving burl market where big money can be made. In the eastern half of the country, burls are considered a disease, nuisance to be rid at any convenience. Loggers actually call them tree cancer and cut them to rot on the forest floor so they won't infect other trees. Apples & oranges between east & west. What gets you tossed in jail in California would get you a pat on the back in the Appalachians. All that said, it's still illegal if you aren't cutting on your own land or don't have permission, albeit about as illegal as jaywalking.