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"Point in Time" Regulation Content

Forest Act

Disposition and Change of Control Regulation

B.C. Reg. 351/2004

NOTE: Links below go to reg content as it was prior to the changes made on the effective date. (PIT covers changes made from September 19, 2009 to present)
SECTIONEFFECTIVE DATE
Title April 11, 2019
Section 1 June 9, 2011
Part 1 April 11, 2019
July 19, 2019
Section 1.1 June 9, 2011
April 11, 2019
Section 2 April 11, 2019
Section 3 April 11, 2019
Part 2 April 11, 2019
Part 2 Section 4 June 9, 2011
Section 4 to 7 June 9, 2011
July 13, 2012
October 24, 2014
November 28, 2016
Section 5 November 28, 2016
Section 6 November 28, 2016
Section 7 November 28, 2016
Section 8 July 13, 2012
Part 3 Section 9 to 19 April 11, 2019
Part 3 July 19, 2019
Section 9 July 19, 2019
Section 11 July 19, 2019
Section 12 July 19, 2019
Section 13 July 19, 2019
Section 17 July 19, 2019
Section 18 July 19, 2019
Section 20 July 19, 2019

 Regulation title BEFORE amended by BC Reg 76/2019, effective April 11, 2019.

Transfer Regulation

 Section 1 BEFORE re-enacted by BC Reg 104/2011, effective June 9, 2011.

 Interpretation

1  (1)  In this regulation:

"Act" means the Forest Act;

"affiliate" has the same meaning as in section 53 of the Act;

"agreement" means an agreement in the form of a licence, permit or agreement referred to in section 12 of the Act.

(2)  Section 53 (2), (3) and (4) of the Act applies for the purposes of this regulation.

 Part 1 heading BEFORE amended by BC Reg 76/2019, effective April 11, 2019.

Exempt Transfers

 Part 1 BEFORE repealed by BC Reg 176/2019, effective July 19, 2019.

Part 1 — Exempt Dispositions

Definition

1.1   In this Part, "agreement" means an agreement in the form of a licence, permit or agreement referred to in section 12 of the Act.

[en. B.C. Reg. 76/2019, s. 3.]

Repealed

2   Repealed. [B.C. Reg. 76/2019, s. 4.]

Dispositions where notice not given may be exempt

3   For the purposes of section 54.3 of the Act, sections 54 to 54.2 of the Act do not apply to, or in respect of, a disposition of an agreement where

(a) notice is not given under section 54 (2) (a) of the Act, or

(b) the disposition occurs before the minister gives notice under section 54 (2) (e) of the Act

if

(c) the disposition complies with section 54 (2) (b) to (d.2) of the Act, and

(d) the minister, having considered the circumstances existing on the date of the disposition, is satisfied that the requirements set out in section 54.1 of the Act have been met.

[am. B.C. Reg. 76/2019, s. 5.]

 Section 1.1 was enacted by BC Reg 104/2011, effective June 9, 2011.

 Section 1.1 BEFORE re-enacted by BC Reg 76/2019, effective April 11, 2019.

Definitions and interpretation

1.1   (1) In this Part:

"affiliate" has the same meaning as in section 53 of the Act;

"agreement" means an agreement in the form of a licence, permit or agreement referred to in section 12 of the Act.

(2) Section 53 (2), (3) and (4) of the Act applies for the purposes of this Part.

[en. B.C. Reg. 104/2011, Sch. 5, s. 2.]

 Section 2 BEFORE repealed by BC Reg 76/2019, effective April 11, 2019.

Transfers between affiliates exempt

2   For the purposes of section 54.3 of the Act, sections 54 to 54.2 of the Act do not apply to, or in respect of, a disposition of an agreement if the disposition is from a corporation to an affiliate corporation.

 Section 3 (c) BEFORE amended by BC Reg 76/2019, effective April 11, 2019.

(c) the disposition complies with section 54 (2) (b), (c) and (d) of the Act, and

 Part 2 heading BEFORE amended by BC Reg 79/2019, effective April 11, 2019.

Permitted Dispositions

 Part 2, section 4 BEFORE repealed by BC Reg 104/2011, effective June 9, 2011.

Part 2 - Permitted Transfers

 Transfer of section 47.3 agreements

4  (1)  In this section:

"first nations agreement" means an agreement, referred to in section 43.5 (1.1) (a), 43.51 (1) (a) or 47.3 (1) (a) of the Act, between a first nation and the government respecting treaty-related measures, interim measures or economic measures;

"licence" means a licence entered into under section 47.3 (1) (a) of the Act.

(2)  For the purposes of section 54.4 (1) (b) of the Act, a First Nation may dispose of a licence to a person if

(a) the minister is satisfied that the First Nation will continue to comply with the first nations agreement that relates to the licence, and

(b) the person is

(i)  an individual,

(ii)  a corporation

(A)  established by or under an enactment, or

(B)  registered as an extraprovincial company under the Business Corporations Act, or

(iii)  a partnership comprised of

(A)  individuals,

(B)  corporations referred to in subparagraph (ii), or

(C)  a combination of the entities referred to in clauses (A) and (B).

 Sections 4 to 7 were enacted by BC Reg 104/2011, effective June 9, 2011.

 Section 4 (1) definitions of "processing facility", "restricted forest licence", and "secondary processing facility" were added by BC Reg 203/2012, effective July 13, 2012.

 Section 4 (2) BEFORE amended by BC Reg 203/2012, effective July 13, 2012.

(2)  Section 53 (2), (3) and (4) of the Act applies for the purposes of this Part.

 Section 4 (1) definition of "restricted forest licence" before amended by BC Reg 190/2014, effective October 24, 2014.

"restricted forest licence" has the same meaning as in section 54.4 (0.1) of the Act;

 Section 4 (1) definition of "society" BEFORE amended by BC Reg 211/2015, effective November 28, 2016.

"society" means a society incorporated under the Society Act.

 Section 5 (3) (b) BEFORE amended by BC Reg 211/2015, effective November 28, 2016.

(b) the society must not be prohibited under section 2 (2) of the Society Act from holding a licence.

 Section 6 (4) (b) BEFORE amended by BC Reg 211/2015, effective November 28, 2016.

(b) the society must not be prohibited under section 2 (2) of the Society Act from holding a licence.

 Section 7 (3) (b) BEFORE amended by BC Reg 211/2015, effective November 28, 2016.

(b) the society must not be prohibited under section 2 (2) of the Society Act from holding a community forest agreement.

 Section 8 was enacted by BC Reg 203/2012, effective July 13, 2012.

 Part 3 and sections 9 to 19 were enacted by BC Reg 76/2019, effective April 11, 2019.

 Part 3 heading BEFORE re-enacted by BC Reg 176/2019, effective July 19, 2019.

Part 3 — Dispositions and Changes of Control That Unduly Restrict Competition

 Section 9 (1) definition of "change of control" BEFORE repealed by BC Reg 176/2019, effective July 19, 2019.

"change of control", in relation to a corporation that holds an agreement, means a change of control, disposition of control or acquisition of control of the corporation, as referred to in section 54.5 (1) of the Act;

 Section 9 (2) (b) BEFORE amended by BC Reg 176/2019, effective July 19, 2019.

(b) an affiliate of the interested person, if applicable.

 Section 9 (3) (b) BEFORE amended by BC Reg 176/2019, effective July 19, 2019.

(b) an affiliate of the interested person, if applicable.

 Section 11 BEFORE re-enacted by BC Reg 176/2019, effective July 19, 2019.

Dispositions of agreements that unduly restrict competition

11   (1) For the purposes of section 54.1 (a) of the Act, the minister may determine that a disposition of a tree farm licence, forest licence or pulpwood agreement unduly restricts competition in a fibre market if any of the following apply:

(a) in relation to the fibre distribution zone that includes the agreement area, the HHI would be 1 800 or greater after the disposition and, subject to subsection (2),

(i) the HHI would increase by 100 or more as a result of the disposition, or

(ii) the HHI share associated with the intended recipient would be 100 or greater after the disposition;

(b) the HHI share associated with the intended recipient is 100 or greater for a fibre distribution zone adjacent to the fibre distribution zone that includes the agreement area;

(c) in relation to the fibre distribution zone that includes the agreement area,

(i) the estimated annually received timber of the timber processing facilities for which the intended recipient holds an interest is 150 000 m3 or greater, and

(ii) the allocated fibre volume/estimated annually acquired timber ratio associated with the intended recipient is 1.0 or greater.

(2) Subsection (1) (a) (ii) does not apply if the HHI for the fibre distribution zone that includes the agreement area would, as a result of the disposition, decrease by an amount equal to or greater than the HHI share associated with the intended recipient for the fibre distribution zone, as calculated after the disposition.

(3) If more than one person is intended to be the recipient of an agreement, the minister may make the determination under subsection (1) as though each person were the only recipient of the agreement.

(4) Subsection (1) does not apply if the intended disposition is from a corporation to an affiliate of the corporation.

[en. B.C. Reg. 76/2019, s. 7.]

 Section 12 BEFORE re-enacted by BC Reg 176/2019, effective July 19, 2019.

Corporate changes of control that unduly restrict competition

12   (1) For the purposes of section 54.5 (1) (b) (ii) of the Act, the minister may determine that a change of control of a corporation that holds a tree farm licence, forest licence or pulpwood agreement unduly restricts competition in a fibre market if any of the following apply:

(a) in relation to the fibre distribution zone that includes the agreement area, the HHI is 1 800 or greater after the change of control and, subject to subsection (2),

(i) the HHI increases by 100 or more as a result of the change of control, or

(ii) the HHI share associated with the corporation is 100 or greater after the change of control;

(b) the HHI share associated with the corporation, after the change of control, is 100 or greater for a fibre distribution zone adjacent to the fibre distribution zone that includes the agreement area;

(c) in relation to the fibre distribution zone that includes the agreement area,

(i) the estimated annually received timber of the timber processing facilities for which the corporation holds an interest is 150 000 m3 or greater after the change of control, and

(ii) the allocated fibre volume/estimated annually acquired timber ratio associated with the corporation is 1.0 or greater after the change of control.

(2) Subsection (1) (a) (ii) does not apply if, as a result of the change of control, the HHI for the fibre distribution zone that includes the agreement area decreases by an amount equal to or greater than the HHI share associated with the corporation for the fibre distribution zone, as calculated after the change of control.

[en. B.C. Reg. 76/2019, s. 7.]

 Section 13 (2) (a) BEFORE amended by BC Reg 176/2019, effective July 19, 2019.

(a) if 2 or more corporations, other than the interested person, are affiliates, the group of corporations is deemed to be a single person;

 Section 17 BEFORE re-enacted by BC Reg 176/2019, effective July 19, 2019.

Calculation of allocated fibre volume/estimated annually acquired timber ratio

17   The allocated fibre volume/estimated annually acquired timber ratio associated with an interested person for a fibre distribution zone is the number determined by the following formula:

allocated fibre volume/estimated
annually acquired timber ratio

 = 
total allocated fibre volume
associated with the interested person
estimated annually acquired timber
where
total allocated fibre volume associated with
the interested person
 = the sum of the allocated fibre volumes associated with each agreement that
(a) is held by the interested person, and
(b) has an agreement area in the fibre distribution zone;
estimated annually acquired timber = the estimated annually acquired timber of the timber processing facilities
(a) for which the interested person holds an interest, and
(b) that are located in the fibre distribution zone.

[en. B.C. Reg. 76/2019, s. 7.]

 Section 18 (1) BEFORE amended by BC Reg 176/2019, effective July 19, 2019.

(1) In this section, "acquired timber" means timber other than the following:

(a) timber that was harvested under an agreement that is currently held by the interested person, regardless of whether the agreement was held by the interested person at the time the timber was harvested;

(b) if the interested person is the intended recipient of an agreement, as referred to in section 11 (1), timber that was harvested under the agreement.

 Section 20 was enacted by BC Reg 176/2019, effective July 19, 2019.