Search Results | Clear Search | Previous (in doc) | Next (in doc) | Prev Doc | Next Doc
This Act is current to November 14, 2018
See the Tables of Legislative Changes for this Act’s legislative history, including any changes not in force.

Forest Act

[RSBC 1996] CHAPTER 157

Part 4 — General Tenure Provisions

Division 1 — Interpretation

Interpretation and application

53   (1) In this Part:

"affiliate" means a corporation that is affiliated with another corporation within the meaning of subsection (2);

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

"control of a corporation" means the holding, other than by way of security only, by or for the benefit of a person or a group of persons not dealing with each other at arm's length, of shares in a corporation that, in an election of the directors of the corporation, carry, in the aggregate, sufficient voting rights, if those rights are exercised, to elect 50% or more of the effective directors or to otherwise effectively control the operations and direction of the corporation;

"deletion period" means, with respect to

(a) a tree farm licence and replacements for it, each successive 25 year period commencing with the beginning of the term of the original tree farm licence entered into under section 33 of this Act or under section 33 of the Forest Act, R.S.B.C. 1979, c. 140,

(b) a tree farm licence entered into under section 39 and replacements for it, each successive 25 year period commencing with the beginning of the term of the original tree farm licence entered into under that section,

(c) a timber licence, the term of the licence,

(d) a forest licence and replacements for it, each successive 15 year period commencing with the beginning of the term of the original forest licence entered into under section 13 or 16 of this Act or under section 15 of the Forest Act, R.S.B.C. 1979, c. 140,

(d.1) a forest licence entered into under section 19 and replacements for it, each successive 15 year period commencing with the beginning of the term of the original forest licence entered into under that section,

(d.2) a forest licence entered into under section 47.3 and replacements for it, each successive 15 year period commencing with the beginning of the term of the original forest licence entered into under that section,

(e) a woodlot licence entered into under section 44 and replacements for it, each successive 15 year period commencing with the beginning of the term of the original woodlot licence entered into under that section,

(e.1) a woodlot licence entered into under section 47.3 and replacements for it, each successive 15 year period commencing with the beginning of the term of the original woodlot licence entered into under that section,

(f) a community forest agreement entered into under section 43.2 and replacements for it, each successive 25 year period commencing with the beginning of the term of the original community forest agreement entered into under that section,

(g) a community forest agreement entered into under section 43.41 and replacements for it, each successive 25 year period commencing with the beginning of the term of the original community forest pilot agreement entered into under section 43.5 or the original probationary community forest agreement entered into under section 43.51, as the case may be,

(h) a community forest agreement entered into under section 43.51 and replacements for it, each successive 25 year period commencing with the beginning of the term of the original community forest agreement entered into under that section, and

(i) a first nations woodland licence entered into under section 43.54 and replacements for it, each successive 25 year period commencing with the beginning of the term of the original first nations woodland licence entered into under that section;

"disposition", in relation to an agreement, includes a disposition of an interest in the agreement;

"effective director" means an effective director as defined in the regulations;

"holder of an agreement" means a person, other than the government, that enters into an agreement, either singly or jointly with another person, and includes the transferee or assignee of an agreement and each partner of a partnership that enters into an agreement or is the transferee or assignee of an agreement;

"spouse" means a person who

(a) is married to another person, or

(b) is living with another person in a marriage-like relationship, and has been living in that relationship for the immediately preceding 2 years.

(1.1) [Repealed 2003-30-8.]

(1.2) For the purposes of this section and Divisions 2 and 4 of this Part, "agreement" includes a pulpwood agreement.

(2) For the purposes of this Part, one corporation is affiliated with another corporation if one of them is the subsidiary of the other, or both are subsidiaries of the same corporation, or each of them is controlled by the same person.

(3) For the purposes of this Part, a corporation is a subsidiary of another corporation if

(a) it is controlled by

(i) that other corporation,

(ii) that other corporation and one or more corporations, each of which is controlled by that other corporation, or

(iii) 2 or more corporations, each of which is controlled by that other corporation, or

(b) it is a subsidiary of a subsidiary of that other corporation.

(4) For the purposes of subsections (2) and (3), a corporation is controlled by a person if

(a) shares of the corporation carrying 50% or more of the votes for the election of the directors are held, other than by way of security only, by or for the benefit of that person, and

(b) the votes carried by the shares referred to in paragraph (a) are sufficient, if exercised, to elect 50% or more of the directors.

Division 2 — Transfer and Exchange

Transfer of agreements permitted

54   (1) Subject to subsection (2) and to section 54.4, the holder of an agreement may dispose of the agreement to another person.

(2) A disposition of an agreement is without effect unless

(a) both the holder of the agreement and the intended recipient of the agreement give written notice of the intended disposition

(i) to the minister, and

(ii) in the form required by the minister,

(b) as of the end of the day of the completion of the disposition, all money

(i) required to be paid to the government under the circumstances set out in section 130 (1.1), and

(ii) due and payable to the government under that section

in respect of the agreement

(iii) has been paid, or

(iv) is the subject of an arrangement for payment approved by the revenue minister,

(c) in the case of a disposition of an agreement that is a tree farm licence, any private tenure in the tree farm licence area remains subject to the tree farm licence,

(d) in the case of a disposition of an agreement that is a woodlot licence, any private land in the woodlot licence area remains subject to the woodlot licence,

(d.1) in the case of a disposition of an agreement in relation to which the holder of the agreement has a replaceable contract with a contractor, all obligations of the holder of the agreement under the replaceable contract are assumed by the recipient of the agreement,

(d.2) in the case of a disposition of an agreement

(i) that is a non-BCTS licence, as defined in section 22.2 (1), and

(ii) in relation to which rights to harvest Crown timber have been released to the government under a BCTS disposition agreement under section 22.2,

all rights and obligations of the holder of the non-BCTS licence under the BCTS disposition agreement are assumed by the recipient of that non-BCTS licence,

(e) the minister, on being satisfied that the requirements set out in section 54.1 have been met, gives notice to the holder and the intended recipient that the disposition may proceed to completion, specifying in the notice the latest date by which it must be completed, and

(f) the disposition is completed by the date referred to in paragraph (e).

(3) In subsection (2) (d.1), "replaceable contract" and "contractor" have the same meaning as in section 152.

Transfer requirements

54.1   On receipt of written notice of an intended disposition of an agreement in accordance with section 54, the minister must give the notice under section 54 (2) (e), if satisfied that

(a) in the case of the disposition of an agreement that is a tree farm licence, forest licence or pulpwood agreement, the disposition will not unduly restrict competition in the standing timber markets, log markets or chip markets,

(b) in the case of a disposition of an agreement that is a BC timber sales agreement, the intended recipient is a BC timber sales enterprise, and

(c) in the case of a disposition of an agreement that is a woodlot licence, the intended recipient is a person, band or corporation that, under section 44, may enter into a woodlot licence.

Confirmation of completion of disposition and effect of completion

54.2   (1) On completion of the intended disposition of an agreement referred to in section 54, both the holder of the agreement and the person who acquired the agreement under the disposition must confirm the completion in writing to the minister within 7 days after the completion.

(2) On completion of the intended disposition referred to in section 54, the person who acquired the agreement under the disposition becomes the holder of the agreement for the purposes of this Act.

Transfers exempt from certain requirements

54.3   (1) Sections 54 to 54.2 do not apply to, or in respect of,

(a) a disposition in good faith of an agreement, by way of a grant of a mortgage or a security interest,

(b) a disposition to the trustee in bankruptcy of the holder of the agreement,

(c) a disposition made by way of transmission from the estate of a deceased person to that person's personal representative, or

(d) a disposition in other prescribed circumstances.

(2) Within 3 months after completion of a disposition under subsection (1) (b) to (d) of an agreement, the person who acquired the agreement under the disposition must notify the minister in writing of the disposition.

Transfer of certain agreements not permitted

54.4   (0.1) In this section, "restricted forest licence" and "supplemental forest licence" have the same meaning as in section 14.2 (1).

(1) The holder of an agreement may not dispose of the agreement to another person if the agreement

(a) [Repealed 2013-12-23.]

(b) is one of the following agreements, unless the disposition is made with the approval of the Lieutenant Governor in Council or as permitted by the regulations:

(i) an agreement entered into under section 47.3 (1) (a);

(ii) a community forest agreement;

(iii) a first nations woodland licence;

(iv) a community salvage licence,

(c) is a road permit, unless the disposition is made in conjunction with the disposition of the agreement to which the road permit pertains,

(d) is an occupant licence to cut unless the disposition is made in conjunction with a disposition of

(i) land, or

(ii) a right to occupy land

to which the licence to cut pertains, or

(e) is a free use permit.

(1.01) The holder of an agreement that is a restricted forest licence or supplemental forest licence may not dispose of the agreement to another person if the holder, at the time the agreement was entered into,

(a) owned or leased a prescribed type of processing facility, or

(b) intended to own or lease a prescribed type of processing facility,

unless the disposition is made with the approval of the Lieutenant Governor in Council or as permitted by the regulations.

(1.1) The Lieutenant Governor in Council may attach conditions to an approval under subsection (1) (b) or (1.01).

(1.2) Despite any of the exceptions to the prohibitions on disposition in subsections (1) and (1.01), a person may not dispose of an agreement in respect of which rights are under suspension, in whole or in part, under section 76 or 78.

(2) A disposition of an agreement contrary to this section is without effect.

Change in control of a corporation that is the holder of an agreement

54.5   (1) Without notice and despite section 77, the minister may cancel an agreement if the holder of the agreement is a corporation and

(a) the holder amalgamates with another corporation or, by means of one or a series of transactions, the control of the holder, or of another corporation that directly or indirectly controls the holder, changes, is acquired or is disposed of, and

(b) immediately after completion of the amalgamation, the change of control, the disposition of control or the acquisition of control, all as set out in paragraph (a),

(i) all money

(A) required to be paid to the government under the circumstances set out in section 130 (1.1), and

(B) due and payable to the government under that section

in respect of the agreement

(C) has not been paid, and

(D) is not the subject of an arrangement for payment approved by the revenue minister,

(ii) in the case of an agreement that is a tree farm licence, forest licence or pulpwood agreement, the minister is satisfied that the change of control, the disposition of control or the acquisition of control unduly restricts competition in the standing timber market, log market or chip market,

(iii) in the case of an agreement that is a BC timber sales agreement, the change of control, the disposition of control or the acquisition of control results in the BC timber sales agreement being held by a person who is not registered in the applicable category of BC timber sales enterprises,

(iii.1) in the case of an agreement that is a first nations woodland licence, the change of control, the disposition of control or the acquisition of control results in the first nations woodland licence being held by a person or entity who, under section 43.54, is not permitted to enter into a first nations woodland licence,

(iv) in the case of an agreement that is a woodlot licence, the change of control, the disposition of control or the acquisition of control results in the woodlot licence being held by a person who, under section 44, is not permitted to enter into a woodlot licence, or

(v) on the date of the disposition, rights under the agreement are suspended, in whole or in part, under section 76 or 78.

(2) This section does not apply to a change in, or acquisition of, control of a corporation that is caused by a transmission of shares in its capital from the estate of a deceased person to the person's personal representative.

Effect of disposition on obligations

54.6   (1) If a disposition of an agreement is completed in accordance with section 54, the person who acquired the agreement under the disposition becomes liable in the person's capacity as the holder of the agreement

(a) for payment of all money in respect of the agreement that

(i) is required to be paid to the government under the circumstances set out in section 130 of the Forest Act, whether before or after the date of completion, and

(ii) is due and payable to the government under that section after the date of the completion or under an arrangement for payment under section 54 (2) (b) (iv),

(b) to perform all obligations under the agreement, including but not limited to obligations accrued or accruing as of the date of completion and still outstanding as of that date, and

(c) to perform all other obligations in respect of the agreement, including but not limited to obligations

(i) accrued or accruing as of the date of completion of the disposition and still outstanding as of that date, and

(ii) imposed with respect to the agreement under this Act, the Forest and Range Practices Act or the Wildfire Act.

(2) The person who disposes of an agreement is jointly and severally liable with the person who acquires the agreement under the disposition for the liabilities described in subsection (1) accrued or accruing as of the date of completion of the disposition and still outstanding as of that date.

Disposition of private land subject to tree farm licence or woodlot licence

54.7   (1) The minister's prior written consent must be obtained for the disposition of private land or an interest in private land if the private land or interest is subject to a tree farm licence or to a woodlot licence.

(2) The minister may attach conditions to a consent given under subsection (1).

(3) The minister, without notice and despite section 77, may cancel a tree farm licence or woodlot licence if the minister determines that

(a) the minister's prior written consent was not obtained to a disposition for which the consent was required under in subsection (1), or

(b) the person to whom a consent was given under subsection (1) does not comply with a condition attached to the consent under subsection (2).

(4) If the minister determines that there are grounds under subsection (3) to cancel a tree farm licence or woodlot licence, but decides against cancelling the licence,

(a) the minister is deemed to have consented to the disposition of the private land or the disposition of the interest in the private land, and

(b) the minister, in making the decision not to cancel, may attach conditions to the licence that the minister considers appropriate in the circumstances.

(5) The holder of a licence to which conditions are attached under subsection (4) (b) must comply with the conditions.

Transition

54.8   (1) Sections 54 to 56, as they were immediately before the coming into force of this section, apply to a consent that was given under section 54 (1) before the coming into force of this section.

(2) [Enacted 2003-30-9, not in force; 2003-30-9 repealed 2004-36-129.]

Repealed

55-56   [Repealed 2003-30-9.]

Repealed

56.1   (1) to (4) [Repealed 2003-30-9.]

(5) and (6) [Repealed 2003-30-10.]

(7) and (8) [Repealed RS1996-157-56.1 (8).]

Exchanges of rights

57   (1) The minister, with the consent of the Lieutenant Governor in Council, may enter into, in exchange for the surrender of a timber licence, a new timber licence describing Crown land the timber on which is not otherwise encumbered.

(2) Despite section 95 of the Land Act, the Lieutenant Governor in Council may accept under that section, in exchange for Crown land, private forest land of greater or lesser value.

(3) Before a transaction is completed under subsection (1) or (2), the minister must obtain a current appraisal of the value of the lands or timber, as the case may be, involved in the transaction, prepared by an independent appraiser appointed by the minister.

Division 3 — Extensions, Increases, Deletions and Reductions

Extension of term of non-replaceable forest licences 

58   (1) Each time the allowable annual cut authorized in a non-replaceable forest licence is reduced under section 63 the minister must

(a) extend the term of the licence in accordance with subsection (2), and

(b) if required, reduce the allowable annual cut for the last year of the extended term of the licence in accordance with subsection (4).

(2) The term of a licence must be extended by the number of additional years that is equal to

(a) the extension factor calculated under subsection (3), if the extension factor is a whole number, or

(b) a number determined by rounding up the extension factor, calculated under subsection (3), to the nearest whole number, if the extension factor is not a whole number.

(3) The extension factor is determined by the following formula:

where
 = the total volume of timber that the licensee would have been entitled to harvest under the licence using the allowable annual cut specified in the licence when the licence was issued less any reductions made under this Act, other than section 63, or the cut control provisions of the licence
NE  = the total volume of timber that the licensee is entitled to harvest under the licence after the reduction under section 63 of the allowable annual cut authorized in the licence
NAAC  = the allowable annual cut authorized in the licence after the reduction under section 63 of the allowable annual cut authorized in the licence.

(4) If the extension factor contains a fraction before it is rounded up under subsection (2) (b), the allowable annual cut for the last year of the licence must be determined by multiplying the NAAC determined under subsection (3) by the fraction.

(5) This section does not apply to the holder of a licence if the notice under section 63 is sent to the holder after the total volume authorized under the licence has been harvested.

Extension of timber sale licences and cutting permits

58.1   (1) The holder of a timber sale licence that

(a) has a term of less than 4 years, and

(b) was entered into on or after November 4, 2003

may apply in writing to the timber sales manager for an extension of the term of the licence for a period that

(c) does not exceed one year, and

(d) does not result in a term of more than 4 years for that licence.

(2) The holder of a cutting permit that

(a) has a term of less than 4 years,

(b) is not issued under a licence to cut, and

(c) was entered into on or after November 4, 2003

may apply in writing to the district manager for an extension of the term of the permit for a period that

(d) does not exceed one year, and

(e) does not result in a term of more than 4 years for that permit.

(3) Subject to subsection (8), the timber sales manager or district manager must accept an application under subsection (1) or (2) if

(a) the timber sale licence or the agreement under which the cutting permit was issued, does not prohibit the extensions,

(b) rights under the timber sale licence or the cutting permit are not under suspension, and

(c) the holder of the timber sale licence or cutting permit has paid to the government a fee equal to the amount determined under subsection (5) and, if applicable, subsection (5.1).

(4) On the date of acceptance of an application under subsection (3), the term of the timber sale licence or cutting permit, as the case may be, is extended in accordance with the application.

(5) The fee referred to in subsection (3) (c)

(a) for a timber sale licence for which there was a bonus bid is a fee equal to a prescribed percentage of an amount calculated according to the following formula:

or

(b) for a timber sale licence for which there was a bonus offer is a fee equal to a prescribed percentage of an amount calculated according to the following formula:

and

(c) for a cutting permit is a fee equal to a prescribed amount or equal to an amount determined in accordance with one or more prescribed formulas.

(5.1) If the holder of a timber sale licence harvested timber under the licence before applying to extend the term of the licence under subsection (1), the fee payable under subsection (5) (a) or (b) is reduced, to a maximum of 90%, by the percentage derived from the following formula:

(6) However, at the request of the holder of a timber sale licence or cutting permit who has submitted an application for an extension under subsection (1) or (2), the minister or a person authorized by the minister may waive the fee referred to in subsection (3) (c), if the minister or authorized person is satisfied that the reasons for the extension are circumstances

(a) beyond the holder's control, and

(b) unrelated to the holder's financial situation.

(6.1) A request referred to in subsection (6) must

(a) be submitted within 30 days after the date an application for an extension under subsection (1) or (2) is made,

(b) be signed by, or on behalf of, the requesting person, and

(c) specify the reasons for the request.

(7) A fee paid under subsection (3) (c) must not be credited towards stumpage.

(8) The timber sales manager or district manager may refuse to accept an application to extend the term of a timber sale licence or cutting permit under subsection (3) if, in his or her opinion, the extension would prevent the fulfillment of an obligation under the Forest and Range Practices Act or the Forest Practices Code of British Columbia Act.

(9) The term of a timber sale licence or cutting permit to which this section applies must not be extended except in accordance with this section.

Transition for extension

58.2   (1) Despite anything to the contrary in an agreement or a cutting permit, a cutting permit, issued before November 4, 2003, with a term that expires after March 31, 2007 expires on that date instead of on the later date specified in it.

(2) A cutting permit that was in effect on November 4, 2003, with a term expiring before March 31, 2007, may be extended to March 31, 2007, on application of its holder made

(a) before the expiration of the term, or

(b) despite the expiration of the term, if the term expired on or after November 4, 2003 and before the elapse of 60 days after the coming into force of this section.

(2.1) A cutting permit that was in effect on November 4, 2003 and expiring on March 31, 2007 may be extended by the minister for a period not exceeding 2 years beginning on April 1, 2007, on application made before March 31, 2007 by the holder.

(2.2) For cutting permits that are extended under subsection (2.1), the minister may grant further extensions, each for a period not exceeding 2 years.

(3) This section does not apply to a cutting permit issued under a licence to cut.

(4) [Repealed 2007-18-33.]

Postponement of operation of cutting permits

58.21   (1) On application by the holder of a cutting permit that was issued on or after November 4, 2003, the minister, in accordance with the regulations, may postpone the operation of the cutting permit for a period of up to 2 years.

(2) The effective date of a postponement under subsection (1) is the date determined by the minister that is on or after the date of application for the postponement.

(3) Despite subsection (2), the effective date of a postponement under subsection (1) for a cutting permit

(a) that was issued on or after November 4, 2003 and before June 1, 2007, and

(b) that has less than 2 years' time remaining on its term from the date of the application for the postponement to the expiration date of the cutting permit,

is the date that is the later of

(c) the date that timber harvesting under the cutting permit ceased, if harvesting under the cutting permit took place, and

(d) the date that is 2 years before the expiration date of the cutting permit, if no harvesting under the cutting permit took place during that 2 year period.

(4) On application by the holder of a cutting permit that had its operation postponed under subsection (1), the minister, in accordance with subsection (1), may grant further extensions to the period of postponement, each for a period not exceeding 2 years.

(5) The holder of a cutting permit that had its operation postponed under subsection (1) must not exercise any of the rights granted by the cutting permit during the period of postponement, including any extensions to the period of postponement granted under subsection (4).

(6) Despite subsection (5), the holder of a cutting permit that had its operation postponed under subsection (1) is liable to perform all obligations imposed under this Act, the Forest and Range Practices Act, the Forest Practices Code of British Columbia Act or the Wildfire Act in respect of the cutting permit that were incurred before the operation of the cutting permit was postponed.

(7) On application by the holder of a cutting permit that had its operation postponed under subsection (1), the minister must rescind the postponement of the cutting permit.

(8) If the postponement of a cutting permit is rescinded under subsection (7),

(a) all rights under the cutting permit are exercisable by the holder of the cutting permit,

(b) despite any contrary information in the cutting permit, the period of time remaining on the term of the cutting permit on the date the postponement is rescinded is equal to the period of time that remained on the term of the cutting permit on the effective date of the postponement under subsection (1), and

(c) the operation of the cutting permit must not be postponed again under subsection (1), nor the period of postponement extended under subsection (4).

Surrender of BC timber sales agreement

58.3   (1) The holder of a timber sale licence may apply in writing to the timber sales manager to surrender the licence.

(2) The timber sales manager must accept the application to surrender the licence if

(a) no harvesting has taken place under the licence, and

(b) any requirements prescribed for the purposes of this section are fulfilled.

(3) On the date of acceptance of an application under subsection (2)

(a) the timber sale licence that is the subject of the application is surrendered, and

(b) if the timber sale licence was advertised on or after November 4, 2003, any deposit required under this Act in relation to the licence and held by the government is forfeited to the government.

(4) However, at the request of the holder of a timber sale licence, the minister or a person authorized by the minister may relieve the holder of a timber sale licence surrendered under this section from the forfeiture imposed under subsection (3) (b) if the minister or authorized person is satisfied that the reasons for the surrender are circumstances

(a) beyond the holder's control, and

(b) unrelated to the holder's financial situation.

(5) A request referred to in subsection (4) must

(a) be made within 30 days after the date an application to surrender a timber sale licence under subsection (1) is made,

(b) be signed by, or on behalf of, the requesting person, and

(c) specify the reasons for the request.

Increase of allowable annual cut

59   If the holder of a forest licence carries out silviculture treatments to free growing stands, as defined in the Forest and Range Practices Act, located on Crown land in the timber supply area specified in the licence, the minister, subject to and if authorized by the regulations, may increase the allowable annual cut authorized under the licence by a volume equal to the determination by the minister of the potential gain in timber production from the Crown land attributable to the silviculture treatments.

Innovative forestry practices

59.1   (1) For the purpose of improving the productivity of the forestry resource, the minister, at his or her discretion, may enter into an agreement with a person referred to in subsection (2) to allow that person to carry out, subject to subsection (5) and the Forest and Range Practices Act, one or more of the innovative forestry practices and other activities that are set out in a regulation made under subsection (4).

(2) For the purposes of subsection (1), the minister may enter into an agreement with a person who

(a) is the holder of a forest licence or other agreement that is entered into under section 12 and specified in a regulation made under subsection (4) of this section, and

(b) presents a written proposal for an agreement to the minister.

(3) An agreement under subsection (1)

(a) must be for a term not exceeding the term prescribed in a regulation made under subsection (4) (c), and

(b) may include terms and conditions that

(i) the minister considers are necessary to effectively carry out the purpose of the agreement and further the social and economic objectives of the government, and

(ii) are consistent with this Act and the regulations and the Forest and Range Practices Act, and the regulations and standards made under that Act.

(4) The Lieutenant Governor in Council may make regulations as follows:

(a) specifying the innovative forestry practices and other activities that may be the subject of an agreement referred to in subsection (1);

(b) specifying the agreements entered into under section 12, the holders of which may enter into an agreement with the minister under subsection (1) of this section;

(c) prescribing the maximum term of an agreement under subsection (1).

(5) A person may only carry out an innovative forestry practice or other activity referred to in subsection (1) if the person

(a) has prepared and obtained the minister's approval of a forestry plan that meets the requirements of subsection (6), and

(b) is carrying out the practice or activity in accordance with the plan.

(6) A forestry plan

(a) must contain a description of the management area where the innovative forestry practices or other activities will be carried out,

(b) must specify the particulars of the innovative forestry practices or other activities,

(c) must contain a description of how the innovative forestry practices or other activities will be carried out,

(d) must contain a schedule of when the innovative forestry practices or other activities will be carried out,

(e) must specify how the innovative forestry practices or other activities will contribute to improved productivity of the forestry resource,

(f) must specify how the innovative forestry practices or other activities will justify an increase in the allowable annual cut of the participant's licence or agreement referred to in subsection (2) (a), and

(g) may include other terms and conditions that

(i) the minister believes are necessary to effectively carry out the agreement referred to in subsection (1), and

(ii) are consistent with this Act and the regulations and the Forest and Range Practices Act, and the regulations and standards made under that Act.

(7) After approving a person's forestry plan, the minister may increase the allowable annual cut authorized in the person's licence or agreement referred to in subsection (2) (a) by an amount that is justified according to timber supply analysis methodology approved by the chief forester or the chief forester's designate.

(8) When the minister increases an allowable annual cut under subsection (7), the minister may limit the increase to a period of time, area of land and type of timber, and may make the increase subject to conditions.

(9) If an assessment of

(a) the innovative forestry practices or other activities being carried out under the forestry plan, or

(b) information that was not available at the time the minister increased the allowable annual cut under subsection (7)

indicates that all or part of the allowable annual cut increase was not justified, the minister may reduce the allowable annual cut of the licence or agreement referred to in subsection (2) (a) by an amount not exceeding the increase granted under subsection (7).

(10) If, with respect to an innovative forestry practice or other activity, a person is not complying with

(a) the agreement referred to in subsection (1),

(b) the forestry plan approved under subsection (5),

(c) any limitation or conditions imposed under subsection (8), or

(d) this Act and the regulations made under this Act, or the Forest and Range Practices Act and the regulations or standards made under that Act,

the minister may do one or both of the following:

(e) suspend or cancel the agreement referred to in subsection (1) and sections 76 and 77 apply with respect to that suspension or cancellation;

(f) reduce the allowable annual cut of the person's licence or agreement referred to in subsection (2) (a) by an amount the minister determines is attributable to the default.

(11) A reduction under subsection (9) or (10) may be apportioned over a period of up to 5 years.

(12) If the forest licence, or other agreement referred to in subsection (2) (a), is suspended, the agreement under subsection (1) is suspended.

(13) If the forest licence, or other agreement referred to in subsection (2) (a), is cancelled or surrendered, the agreement under subsection (1) is cancelled.

(14) If the agreement referred to in subsection (1) is suspended or cancelled, the forestry plan is suspended or cancelled, as the case may be.

Deletions, not affecting allowable annual cut, of Crown land from tree farm licences

60   (1) In this section, "Crown land" does not include Crown land described in a timber licence.

(2) The minister by written order may delete Crown land from a tree farm licence area, if the deletion does not affect the allowable annual cut determined for the tree farm licence.

(3) Subject to section 60.92, no compensation or damages is payable by the government to a person for a deletion of Crown land under this section.

Other deletions, not affecting allowable annual cut, of Crown land

60.01   (1) The minister by written order may delete Crown land from

(a) a community forest agreement area,

(a.1) a first nations woodland licence area, or

(b) a woodlot licence area

if the deletion does not affect the allowable annual cut determined for the community forest agreement, first nations woodland licence or woodlot licence.

(2) Subject to section 60.92, no compensation or damages is payable by the government to a person for a deletion of Crown land under this section.

Definitions for sections 60.2 to 60.91

60.1   In this section and in sections 60.2 to 60.91:

"for an access purpose" means for the purpose of

(a) access to Crown timber,

(b) a right of way for

(i) a highway,

(ii) a pipeline, or

(iii) power transmission, or

(c) water storage;

"for another purpose" means for any purpose other than

(a) an access purpose, or

(b) timber production.

Other deletions of Crown land — tree farm licences

60.2   (1) In this section, "Crown land" does not include Crown land described in a timber licence.

(2) The minister by written order may delete from a tree farm licence area Crown land to be used for an access purpose or for another purpose.

Other deletions of Crown land — community forest agreements, first nations woodland licences, woodlot licences and timber licences

60.3   The minister by written order may delete, from any of the following areas, Crown land to be used for an access purpose or for another purpose:

(a) a community forest agreement area;

(b) a first nations woodland licence area;

(c) a woodlot licence area;

(d) the area described in a timber licence.

Reductions in allowable annual cut under forest licences and timber sale licences

60.4   The minister by written order may reduce the allowable annual cut authorized in

(a) a forest licence, or

(b) a timber sale licence

if Crown land in the timber supply area specified in the licence is used for an access purpose or for another purpose.

Notice of an order under sections 60, 60.01 or 60.2 to 60.4

60.5   (1) Subject to section 60.501 and subsection (2), the minister may not make an order under section 60, 60.01 or any of sections 60.2 to 60.4 unless the minister serves at least one year's advance notice of the proposed order on the holder of the agreement or licence that is the subject

(a) of the intended deletion of Crown land, in the case of a tree farm licence, community forest agreement, first nations woodland licence, woodlot licence or timber licence, or

(b) of the intended reduction in allowable annual cut, in the case of a forest licence or timber sale licence.

(2) If the Crown land to be deleted

(a) by order under section 60.2 from a tree farm licence area, or

(b) by order under section 60.3 from a community forest agreement area, first nations woodland licence area, woodlot licence area or the area described in a timber licence

is to be used for exploration or development activities associated with oil and gas purposes, the minister may make the order if the minister serves at least 60 days' advance notice of the order on the holder of the licence that is the subject of the intended deletion of Crown land.

(3) A notice under this section must include or be accompanied by particulars of the intended deletion of Crown land or reduction in allowable annual cut, as the case may be.

Deletions under the Park Act

60.501   (1) If, under section 11 (2.3) of the Park Act, Crown land is deleted from a tree farm licence area, community forest agreement area, first nations woodland licence area or woodlot licence area, the minister must

(a) make the order under section 60, 60.01, 60.2 or 60.3 of this Act the minister considers appropriate, and

(b) serve a notice of the order on the holder of the tree farm licence, community forest agreement, first nations woodland licence or woodlot licence that includes or is accompanied by particulars of the deletion.

(2) If, under section 11 (2.3) of the Park Act, Crown land is deleted from the area described in a timber licence, the minister must make an order under section 60.3 of this Act in relation to the deletion and serve a notice on the holder of the timber licence that includes or is accompanied by particulars of the deletion.

(3) If, under section 11 (2.3) of the Park Act, Crown land is deleted from a timber supply area, the minister

(a) must serve a notice on the holder of a forest licence or timber sale licence affected by the deletion, advising whether there will be an order made under section 60.4 in relation to the forest licence or timber sale licence, and

(b) may make an order under section 60.4 in relation to a forest licence or timber sale licence affected by the deletion.

(4) A reduction in allowable annual cut under subsection (3) (b) is deemed to have been ordered on the date the deletion is effective under section 11 (2.3) of the Park Act.

Deemed amendment to affected agreements

60.51   (1) Each tree farm licence that is affected by an order under section 60 or 60.2 is deemed amended to reflect the order under that section.

(2) Each community forest agreement, first nations woodland licence or woodlot licence that is affected by an order under section 60.01 is deemed amended to reflect the order under that section.

(3) Each community forest agreement, first nations woodland licence, woodlot licence or timber licence that is affected by an order under section 60.3 is deemed amended to reflect the order under that section.

(4) Each forest licence or timber sale licence that is affected by an order under section 60.4 is deemed amended to reflect the order under that section.

Compensation in respect of tree farm licence areas

60.6   (1) In this section:

"Crown land" does not include Crown land in the area described in a timber licence;

"current allowable annual cut" means the allowable annual cut that the chief forester determines to be attributable to the Crown land in a tree farm licence area immediately before a deletion under section 60.2;

"original allowable annual cut" means the allowable annual cut that the chief forester determines was attributable at the beginning of the applicable deletion period to the Crown land in a tree farm licence area.

(2) If, during the deletion period for a tree farm licence,

(a) a deletion, or

(b) a series of deletions, if more than one,

from the tree farm licence area, of Crown land to be used for an access purpose has the effect of reducing the current allowable annual cut by more than 5% of the original allowable annual cut, the holder of the tree farm licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).

(3) If, during the deletion period for a tree farm licence,

(a) a deletion, or

(b) a series of deletions, if more than one,

from the tree farm licence area, of Crown land to be used for another purpose has the effect of reducing the current allowable annual cut by more than 5% of the original allowable annual cut, the holder of the tree farm licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).

(4) The compensation to which the holder of a tree farm licence is entitled under subsection (2) or (3), as the case may be, is an amount equal to the value, for the unexpired portion of the term of the licence, of the harvesting rights under the licence that are taken by means of the part of the reduction that, in the opinion of the chief forester, exceeds 5% of the original allowable annual cut.

Compensation in respect of community forest agreement, first nations woodland licence and woodlot licence areas

60.7   (1) In this section:

"current allowable annual cut" means the allowable annual cut for a community forest agreement, first nations woodland licence or woodlot licence immediately before a deletion under section 60.3;

"original allowable annual cut" means the allowable annual cut for a community forest agreement, first nations woodland licence or woodlot licence at the beginning of the applicable deletion period.

(2) If, during the deletion period for a community forest agreement, first nations woodland licence or woodlot licence,

(a) a deletion, or

(b) a series of deletions, if more than one,

from the community forest agreement area, first nations woodland licence area or woodlot licence area, of Crown land to be used for an access purpose has the effect of reducing the current allowable annual cut by more than 5% of the original allowable annual cut, the holder of the community forest agreement, first nations woodland licence or woodlot licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).

(3) If, during the deletion period for a community forest agreement, first nations woodland licence or woodlot licence,

(a) a deletion, or

(b) a series of deletions, if there are more than one,

from the community forest agreement area, first nations woodland licence area or woodlot licence area, of Crown land to be used for another purpose has the effect of reducing the current allowable annual cut by more than 5% of the original allowable annual cut, the holder of the community forest agreement, first nations woodland licence or woodlot licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).

(4) The compensation to which the holder of a community forest agreement, first nations woodland licence or woodlot licence is entitled under subsection (2) or (3), as the case may be, is an amount equal to the value, for the unexpired portion of the term of the agreement or licence, of the harvesting rights under the agreement or licence that are taken by means of the part of the reduction that exceeds 5% of the original allowable annual cut.

Compensation in respect of timber licences

60.8   (1) In this section:

"current timber licence area" means the area that, immediately before a deletion under section 60.3, was the area described in a timber licence;

"original timber licence area" means the area that, at the beginning of the deletion period for a timber licence was the area described in the timber licence.

(2) If, during the deletion period for a timber licence,

(a) a deletion, or

(b) a series of deletions, if more than one,

from the current timber licence area, of Crown land to be used for an access purpose has the effect of reducing the current timber licence area by more than 5% of the original timber licence area, the holder of the timber licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).

(3) If, during the deletion period for a timber licence,

(a) a deletion, or

(b) a series of deletions, if more than one,

from the current timber licence area, of Crown land to be used for another purpose has the effect of reducing the current timber licence area by more than 5% of the original timber licence area, the holder of the timber licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).

(4) The compensation to which the holder of a timber licence is entitled under subsection (2) or (3), as the case may be, is an amount equal to the value of the harvesting rights under the licence that are taken by means of the part of the reduction that exceeds 5% of the original timber licence area.

Compensation in respect of forest licences or timber sale licences

60.9   (1) In this section:

"current allowable annual cut" means the allowable annual cut for a forest licence or timber sale licence immediately before a reduction under section 60.4;

"original allowable annual cut" means the allowable annual cut for a forest licence or timber sale licence at the beginning of the applicable deletion period.

(2) If, during the deletion period for a forest licence or timber sale licence,

(a) a reduction, or

(b) a series of reductions, if more than one,

in the current allowable annual cut for the forest licence or timber sale licence, as a result of the use of Crown land in the timber supply area specified in the licence for an access purpose, reduces the current allowable annual cut by more than 5% of the original allowable annual cut, the holder of the forest licence or timber sale licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).

(3) If, during the deletion period for a forest licence or timber sale licence,

(a) a reduction, or

(b) a series of reductions, if more than one,

in the current allowable annual cut for the forest licence or timber sale licence, as a result of the use of Crown land in the timber supply area specified in the licence for another purpose, reduces the current allowable annual cut by more than 5% of the original allowable annual cut, the holder of the forest licence or timber sale licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).

(4) The compensation to which the holder of a forest licence or timber sale licence is entitled under subsection (2) or (3), as the case may be, is an amount equal to the value, for the unexpired portion of the term of the licence, of the harvesting rights under the licence that are taken by means of the part of the reduction that exceeds 5% of the original allowable annual cut.

Access purpose deletions or reductions unrelated to those for another purpose

60.91   (1) In this section:

"Crown land" does not include Crown land in the area described in a timber licence;

"current allowable annual cut" means the allowable annual cut

(a) that the chief forester determines to be attributable to the Crown land in a tree farm licence area immediately before a deletion under section 60.2,

(b) for a community forest agreement, first nations woodland licence or woodlot licence immediately before a deletion under section 60.3, and

(c) for a forest licence or timber sale licence immediately before a deletion under section 60.4;

"original allowable annual cut" means the allowable annual cut

(a) that the chief forester determines was attributable at the beginning of the applicable deletion period to the Crown land in a tree farm licence area,

(b) for a community forest agreement, first nations woodland licence or woodlot licence at the beginning of the applicable deletion period, or

(c) for a forest licence or timber sale licence at the beginning of the applicable deletion period.

(2) The calculation, for a tree farm licence, community forest agreement, first nations woodland licence, woodlot licence, forest licence or timber sale licence, of the percentage by which a reduction, referred to in section 60.6 (2), 60.7 (2) or 60.9 (2), for an access purpose exceeds 5% of the original allowable annual cut is separate from the calculation, for that licence or agreement, of the percentage by which a reduction referred to in section 60.6 (3), 60.7 (3) or 60.9 (3) for another purpose exceeds 5% of the original allowable annual cut.

(3) The calculation, for a timber licence, of the percentage by which a reduction referred to in section 60.8 (2) for an access purpose exceeds 5% of the original timber licence area is separate from the calculation, for that timber licence, of the percentage by which a reduction referred to in section 60.8 (3) for another purpose exceeds 5% of the original timber licence area.

Compensation for improvements

60.92   The holder of a tree farm licence, community forest agreement, first nations woodland licence, woodlot licence, timber licence, forest licence or timber sale licence who is the subject of an order made under section 60, 60.01, 60.2, 60.3 or 60.4 is entitled to compensation from the government in an amount equal to the value of improvements made to Crown land that

(a) are authorized under an enactment,

(b) are not improvements to which section 174 of the Forest Practices Code of British Columbia Act applied, before the repeal of that section, or to which section 120 of the Forest and Range Practices Act applies, and

(c) are not, or have not been, paid for by the government under the Forest Act or the former Act as defined in the Forest Act.

Arbitration Act applies

60.93   If the amount of compensation is not agreed, it must be submitted for determination under the Arbitration Act.

Compensation may take form of agreement

60.94   (1) On application by the holder of a tree farm licence, community forest agreement, first nations woodland licence, woodlot licence, timber licence, forest licence or timber sale licence, the compensation to which the holder is entitled under sections 60.6 to 60.9, in whole or in part, may take the form of an agreement listed in section 12 (1).

(2) Without advertising or inviting applications from other persons, the minister, for the purpose of subsection (1), may enter into the agreement with the holder who is entitled to the compensation.

Set-off for benefits previously received

60.95   The amount of compensation to which the holder of a tree farm licence, community forest agreement, first nations woodland licence, woodlot licence, timber licence, forest licence or timber sale licence is entitled under sections 60.6 to 60.9 must be reduced by any financial benefit or other benefit received by that holder from the government arising out of the deletion or reduction that gives rise to the entitlement.

Temporary reductions

61   (1) The minister, with the consent of the holder of the licence or agreement, may reduce for a specified period the allowable annual cut authorized

(a) in a forest licence, or

(b) for a tree farm licence area, community forest agreement area, first nations woodland licence area or woodlot licence area.

(2) Before expiry of a period of reduction specified under this section, the minister, with the consent of the holder of the licence or agreement, may

(a) extend the period of the reduction, or

(b) increase or decrease the size of the reduction.

(3) During the period of a reduction under this section, the total volume of timber comprised in the reduction is available for disposition under this Act to persons other than the holder of the licence or agreement.

Return of surrendered harvesting rights

62   At the end of the period of any reduction specified under section 61, the allowable annual cut authorized in or for the licence or agreement that was subject to the reduction is restored by this section to the amount that is equal to the allowable annual cut that was in effect for the licence or agreement immediately before the reduction, minus any reductions, other than under section 61, that have been made under this Act or the licence or agreement during the period of the reduction.

Proportionate reduction

63   (1) In this section:

"base-level allowable annual cut" means the allowable annual cut that is prescribed for the purposes of this section;

"exempted licence" means a licence described in subsection (3);

"licence" means a forest licence.

(2) Subject to section 63.1, if the allowable annual cut determined for a timber supply area is reduced under section 8 for any reason other than a reduction in the area of land in the timber supply area, the minister, by notice served on all persons who hold licences in the timber supply area that are not exempted licences, may reduce, by the method set out in subsection (4), the allowable annual cuts authorized in the licences.

(3) This section does not apply to or in respect of a licence that specifies an allowable annual cut less than the base-level allowable annual cut.

(4) A reduction in allowable annual cut imposed under this section in a timber supply area must be apportioned among all the licences in that area, except exempted licences, in accordance with the following method:

(a) first, calculate a reduction in allowable annual cut for each licence by distributing the part of the reduction under section 8 that the minister may assign to the licences proportionately among them according to the relative sizes of the allowable annual cut specified in each licence;

(b) second, calculate for each licence the annual volume of timber, if any, by which the calculations under this subsection reduce the allowable annual cut for that licence to less than the base-level allowable annual cut;

(c) third, calculate the aggregate of the annual volumes of timber calculated under paragraph (b);

(d) fourth, for each licence for which the calculation under paragraph (b) does not reduce the allowable annual cut to less than the base-level allowable annual cut, calculate a further reduction in allowable annual cut by distributing the amount determined under paragraph (c) proportionately among those licences according to the relative sizes of the allowable annual cut specified in each of them;

(e) fifth, repeat the calculations under paragraphs (b) to (d) until the end result of all the calculations is that the allowable annual cut for any of the licences is not reduced to a level that is less than the base-level allowable annual cut.

(5) This section and section 80 apply to licences, whether issued before, on or after the date this section comes into force.

(6) A licence is deemed to be amended to the extent provided in a notice served under this section on the holder of the licence.

Proportionate reduction if section 59.1 applies

63.1   (1) In this section:

"allowable annual cut increase", for the period from the date on which the determination of the previous allowable annual cut is made effective and the date on which the determination of the current allowable annual cut is made effective, means the sum of all increases under section 59.1 to the allowable annual cuts specified in forest licences or other agreements in the timber supply area;

"previous allowable annual cut" means the allowable annual cut that was in effect for a timber supply area immediately before the determination of the current allowable annual cut for the timber supply area.

(2) For the purposes of section 63 (2),

(a) the allowable annual cut for a timber supply area is reduced if it is less than the sum of the previous allowable annual cut and the allowable annual cut increase, and

(b) the amount of the reduction is determined by adding the previous allowable annual cut and the allowable annual cut increase and then subtracting the current allowable annual cut.

Date of increase or reduction in allowable annual cut and prorating

63.2   (1) In this section, "increase or reduction" means an increase or reduction in the allowable annual cut authorized under an agreement.

(2) An increase or reduction, made by the minister, chief forester or district manager under a provision of this Act that authorizes him or her to make the increase or decrease but does not specify or provide for a date on which the increase or reduction takes effect, must be made to take effect on either

(a) the date on which the minister, chief forester or district manager, as the case may be, exercises the discretion to increase or reduce the allowable annual cut, or

(b) January 1 of the year following,

whichever of those dates the minister, chief forester or district manager, as the case, may be considers reasonable in the circumstances.

(3) If the Act specifies or provides for a date on which an increase or reduction is to be effective other than January 1 of any year, or an increase or reduction is made to take effect on the date referred to in subsection (2) (a), the allowable annual cut authorized under the agreement for the calendar year of the increase or reduction is the sum, rounded to the nearest whole number, of

(a) the product obtained by multiplying the allowable annual cut before the date of the increase or reduction by the fraction obtained by dividing the number of days elapsed in the current calendar year up to and including that date by 365, and

(b) the product obtained by multiplying the increased or decreased allowable annual cut by the fraction obtained by dividing the number of days remaining in the current calendar year after that date by 365.

Repealed

64-66   [Repealed 2003-30-8.]

Repealed

67   (1) to (3) [Repealed 2003-30-12 (a).]

(4) and (5) [Repealed 2003-30-12 (b).]

Increase: disposition or deletion

68   If the holder of a tree farm licence identifies, in a management plan approved under section 35.2, land within the tree farm licence area that is not required to meet the allowable annual cut and the chief forester determines that

(a) sale of Crown timber on that land would neither affect the licensee's ability to manage the tree farm licence area in accordance with the management plan nor adversely affect other natural resources, Crown timber within the tree farm licence may be disposed of to a person other than the holder of the tree farm licence under

(i) a forestry licence to cut, or

(ii) a timber sale licence entered into under section 20, or

(b) forest management would be improved by doing so, the minister may delete the land from the tree farm licence.

Reduction by chief forester of allowable annual cut

69   (1) If

(a) a tree farm licence specifies, or

(b) the chief forester, in relation to a tree farm licence, specifies under section 8 (5)

that portions of the allowable annual cut for the tree farm licence are to be harvested from different types of timber or terrain in different parts of Crown land or private land within the tree farm licence area or from different areas of Crown land within the tree farm licence area and the holder of the tree farm licence fails to harvest a portion of the allowable annual cut so specified, the chief forester, in a notice served on the holder, may reduce the allowable annual cut available to the holder by a volume equal to the specified portion that was not so harvested.

(2) Crown timber within the tree farm licence area may be disposed of under this Act to persons other than the holder of the tree farm licence under

(a) a forestry licence to cut, or

(b) a timber sale licence

in a volume that does not exceed the reduction under subsection (1).

(3) If a replaceable forest licence provides that part of the allowable annual cut of the licence is to be harvested from a specified part of a licence area, from a specified type of timber or from a specified type of terrain and the holder of the licence fails to comply with that provision, the minister or a person authorized by the minister, in a notice served on its holder, may reduce the allowable annual cut authorized in the licence by a volume equal to the volume that was not so harvested.

Reductions in allowable annual cut

70   (1) In this section, "soil disturbance" has the same meaning as it has under the Forest and Range Practices Act.

(2) In a notice served on the holder of an agreement that is a major licence, a community forest agreement, a first nations woodland licence or a woodlot licence, the chief forester, subject to subsection (3), may reduce the allowable annual cut

(a) available to the holder of the agreement, if the agreement is

(i) a major licence that is a tree farm licence,

(ii) a community forest agreement, or

(iii) a first nations woodland licence, or

(b) for the agreement, if the agreement is

(i) a major licence other than a tree farm licence, or

(ii) a woodlot licence

by an amount not exceeding the volume of timber that the chief forester determines was on an area authorized for harvest under a cutting permit issued under the agreement.

(3) The chief forester may not make a reduction under subsection (2) unless he or she determines that the holder of the agreement, on the area authorized for harvest, caused or allowed soil disturbance in excess of the limits specified in an operational plan that pertains to the cutting permit referred to in subsection (2).

(4) In a notice served on the holder of an agreement that is a major licence, a community forest agreement, a first nations woodland licence or a woodlot licence, the minister, subject to subsection (5), must reduce the allowable annual cut

(a) available to the holder of the agreement, if the agreement is

(i) a major licence that is a tree farm licence,

(ii) a community forest agreement, or

(iii) a first nations woodland licence, or

(b) for the agreement, if the agreement is

(i) a major licence other than a tree farm licence, or

(ii) a woodlot licence

by an amount not exceeding 5% of the volume of timber that the minister determines was on an area authorized for harvest under a cutting permit issued under the agreement.

(5) The minister may not make a reduction under subsection (4) unless he or she determines that the holder of the agreement did not establish a free growing stand as required under the Forest and Range Practices Act.

Repealed

71   [Repealed 2003-30-2.]

Removal of dead or damaged timber

72   (1) In this section, "holder of the licence" means the holder of a tree farm licence, timber licence, community forest agreement, first nations woodland licence or woodlot licence for the area to which a forestry licence to cut, proposed to be entered into under this section, would apply.

(2) The minister may enter into a forestry licence to cut under this section with a person other than the holder of the licence.

(3) A forestry licence to cut referred to in subsection (2) must

(a) be restricted primarily to the harvest of windthrown, dead, damaged, insect infested or diseased timber or special forest products, and

(b) authorize the harvest of a volume of timber or special forest products of less than 2 000 m3.

(4) Before entering into a forestry licence to cut under this section, the minister must serve a notice on the holder of the licence inviting the holder to harvest the timber or special forest products that would otherwise be harvested under the proposed forestry licence to cut.

(5) The minister must include in the notice under subsection (4) a date by which the harvest must be completed, and in determining that date the minister must take into account

(a) the time by which the timber or special forest products must be harvested to prevent them from being significantly reduced in value, lost or destroyed or to minimize the spread of an insect infestation,

(b) any seasonal site conditions or constraints that would limit the harvesting of the timber or special forest products, and

(c) the nature and location of the holder of the licence's operations in the holder's licence area.

(6) To be eligible to harvest the timber or special forest products, the holder of the licence must reply to the minister within 14 days of receiving the notice agreeing to complete the harvest by the date specified in the notice.

(7) If a person to whom a notice under subsection (4) is sent

(a) does not reply and agree, within 14 days of receiving the notice, to harvesting the timber or special forest products, or

(b) replies and agrees, within 14 days of receiving the notice, to harvesting the timber or special forest products but does not do so by the date specified in the notice,

the minister may enter into a forestry licence to cut authorizing the harvesting of some or all of the timber or special forest products, if the minister considers the harvesting will not prevent the person from fulfilling their obligations under this Act, the Forest and Range Practices Act or the Wildfire Act.

(8) If a person to whom a notice under subsection (4) is sent replies and agrees within 14 days of receiving the notice to harvest the timber or special forest products but does not do so by the date specified in the notice and as a result timber or special forest products are lost, destroyed or significantly reduced in value, the minister must determine the amount that, in the minister's opinion, would have been harvested if a forestry licence to cut had been entered into under this section.

(9) The amount of timber or special forest products harvested under a forestry licence to cut entered into under this section, or the amount that the minister determines under subsection (8) would have been harvested, is deemed to be harvested under

(a) the tree farm licence or the woodlot licence of the person to whom the notice is sent under subsection (4), for the purposes of paragraph (a) of the definition of "volume of timber harvested" in section 75.1,

(b) the community forest agreement of the person to whom the notice is sent under subsection (4), for the purposes of the provisions of the agreement referred to in section 43.3 (1) (f.1), and

(c) the first nations woodland licence of the person to whom the notice is sent under subsection (4), for the purposes of the provisions of the licence referred to in section 43.55 (1) (g) (i).

(10) Subsection (9) does not apply if the amount of timber harvested under the forestry licence to cut has already been attributed to

(a) the tree farm licence or woodlot licence of the person to whom the notice is sent under subsection (4), for the purposes of paragraph (a) of the definition of "volume of timber harvested" in section 75.1,

(b) the community forest agreement of the person to whom the notice is sent under subsection (4), for the purposes of the provisions of the agreement referred to in section 43.3 (1) (f.1), and

(c) the first nations woodland licence of the person to whom the notice is sent under subsection (4), for the purposes of the provisions of the licence referred to in section 43.55 (1) (g) (i).

Removal of dead or damaged timber from a timber supply area

73   (1) In this section, "holder of the licence" means the holder of a forest licence for the area to which a forestry licence to cut, proposed to be entered into under this section, would apply.

(2) Section 72 (2) and (3) applies to this section.

(3) Before entering into a forestry licence to cut under this section, the minister must serve a notice on the holder of the licence whose operational plan applies to the area to which the proposed forestry licence to cut would apply, inviting the holder of the licence to harvest the timber or special forest products that would otherwise be harvested under the proposed forestry licence to cut.

(4) The minister must include in the notice under subsection (3) a date by which the harvest must be completed, and in determining that date the minister must take into account

(a) the time by which the timber or special forest products must be harvested to prevent them from being significantly reduced in value, lost or destroyed or to minimize the spread of an insect infestation,

(b) any seasonal site conditions or constraints that would limit the harvesting of the timber or special forest products, and

(c) the nature and location of the holder of the licence's operations in the timber supply area to which the proposed forestry licence to cut would apply.

(5) To be eligible to harvest the timber or special forest products, the holder of the licence must reply to the minister within 14 days of receiving the notice agreeing to complete the harvest by the date specified in the notice.

(6) If a person to whom a notice under subsection (3) is sent

(a) does not reply and agree, within 14 days of receiving the notice, to harvesting the timber or special forest products, or

(b) replies and agrees, within 14 days of receiving the notice, to harvesting the timber or special forest products but does not do so by the date specified in the notice,

the minister may enter into a forestry licence to cut authorizing the harvesting of some or all of the timber or special forest products, if the minister considers the harvesting will not prevent the person from fulfilling their obligations under this Act, the Forest and Range Practices Act or the Wildfire Act.

(7) If a person to whom a notice under subsection (3) is sent replies and agrees within 14 days of receiving the notice to harvest the timber or special forest products but does not do so by the date specified in the notice, and as a result timber or special forest products are lost, destroyed or significantly reduced in value, the minister must determine the amount that, in the minister's opinion, would have been harvested if a forestry licence to cut had been entered into under this section.

(8) The amount of timber or special forest products harvested under a forestry licence to cut entered into under this section, or the amount that the minister determines under subsection (7) would have been harvested, is deemed to be harvested under the forest licence of the person to whom the notice is sent under subsection (3) for the purposes of the definition of "volume of timber harvested" in section 75.1.

(9) Subsection (8) does not apply if the amount of timber harvested under the forestry licence to cut has already been attributed to the forest licence of the person to whom a notice is sent under subsection (3) for the purposes of paragraph (a) of the definition of "volume of timber harvested" in section 75.1 (1).

Timber cruise

74   (1) The minister, in a notice served on the holder of a timber licence, may require the holder to submit a timber cruise, to a standard required by the minister, of the area of land subject to the licence.

(2) If a timber cruise required under subsection (1) in respect of an area of land

(a) is not submitted when required or, if submitted, discloses no merchantable timber on the area,

(i) a timber licence must not be entered into with respect to the area, and

(ii) an existing timber licence over the area, despite its terms and conditions or this Act, expires on the next anniversary of the day of its issue, or

(b) discloses that a portion of the area is not covered by merchantable timber,

(i) the portion, if the minister so orders, must be surveyed by and at the expense of the holder of the licence, and

(ii) the minister, in a notice served on its holder, may

(A) delete the portion from an existing timber licence over the area, and

(B) exclude the portion from a future timber licence to be entered into for the area.

Compatible use

75   No agreement made under this Act prevents or impedes the government from using, or granting the use of, Crown land for any purpose that the minister considers is compatible with timber harvesting.

Division 3.01 — Allowable Annual Cut Partition

Definitions

75.01   (1) In this Division:

"allowable annual cut partition" means a portion of the allowable annual cut for a timber supply area or tree farm licence area that is specified by the chief forester under section 8 (5);

"base-level allowable annual cut" means the allowable annual cut that is prescribed for the purposes of this Division;

"exempted licence" means a forest licence that

(a) specifies an allowable annual cut that is less than the base-level allowable annual cut, or

(b) is a non-replaceable forest licence that meets prescribed conditions;

"harvested volume" means,

(a) in relation to a licence to which a limit specified in an order made under section 75.02 applies to the licence, the volume, as determined in accordance with the regulations, of the partitioned timber that is harvested under that licence, or

(b) in relation to 2 or more licences held by the same person to which a limit specified in an order made under section 75.02 applies to the licences, the sum of the volume, as determined in accordance with the regulations, of the partitioned timber that is harvested under each of those licences;

"partitioned timber", in relation to an allowable annual cut partition, means the timber that is subject to the allowable annual cut partition.

(2) [Repealed 2016-11-13.]

Partition order

75.02   (1) In subsections (2) and (3), "forest licence" means a forest licence that is not an exempted licence.

(2) If the chief forester specifies an allowable annual cut partition for a timber supply area, the minister, by order, may, if he or she considers it necessary to ensure the attribution specified in the partition is carried out, specify a limit on the harvested volume for one or more forest licences in the timber supply area in respect of one or more of the following:

(a) a type of timber or terrain in parts of Crown land within the timber supply area;

(b) different areas of Crown land within the timber supply area.

(3) If the chief forester specifies an allowable annual cut partition for a tree farm licence area, the minister, by order, may, if he or she considers it necessary to ensure the attribution specified in the partition is carried out, specify a limit on the harvested volume for

(a) the tree farm licence, in respect of one or more of the following:

(i) a type of timber or terrain in parts of Crown land within the tree farm licence area;

(ii) different areas of Crown land within the tree farm licence area;

(iii) a type of timber or terrain in different parts of private land within the tree farm licence area, and

(b) one or more forest licences in the tree farm licence area, in respect of one or more of the following:

(i) a type of timber or terrain in parts of Crown land within the tree farm licence area;

(ii) different areas of Crown land within the tree farm licence area.

(3.1) In making an order under subsection (2) or (3) (b), the minister may specify one limit that applies in relation to 2 or more forest licences held by the same person.

(3.2) For greater certainty, if the minister specifies one limit that applies to 2 or more forest licences, as described in subsection (3.1), the person who is the holder of the forest licences may harvest any portion, including all or nothing, of the harvested volume under any of the forest licences that are subject to the limit.

(4) A limit specified under this section on the harvested volume for one or more forest licences or for a tree farm licence must be determined in accordance with the regulations.

(4.1) In determining a limit under this section on the harvested volume for one or more forest licences or for a tree farm licence, the minister may take into consideration the volume of partitioned timber harvested under the applicable licence or licences since the date the allowable annual cut partition took effect.

(5) An order made under this section must specify

(a) a term not exceeding 10 years,

(b) the allowable annual cut partition relating to the order, and

(c) the harvested volume limit that each licence holder affected by the order may not exceed during the term of the order.

(6) The minister must serve a copy of an order made under this section on the holder of one or more licences to which the order relates, but the order is not invalid only because it is not served.

(7) Subject to an amendment or cancellation under subsection (8) or an increase or waiver under section 75.03, the holder of a licence to which a limit specified in an order made under this section applies must ensure that,

(a) if the limit is specified for one licence, the harvested volume under the licence does not exceed the harvested volume limit specified for that licence in the order, and

(b) if the limit is specified for 2 or more licences held by the same person, the harvested volume under those licences does not exceed the harvested volume limit specified for those licences in the order.

(8) If, under section 8 (5.1), the allowable annual cut partition relating to an order made under this section

(a) is amended, the minister may amend the order if the minister considers it necessary to ensure the attribution specified in the partition is carried out, or

(b) is cancelled, the order is cancelled on the same date the partition is cancelled.

Increase or waiver of harvested volume limit in order

75.03   (1) On request of the holder of one or more licences to which an order made under section 75.02 applies, the minister may increase or waive the harvested volume limit specified for that licence or licences if the minister is satisfied that the reasons for the increase or waiver meet prescribed criteria.

(2) A request under subsection (1) must

(a) be signed by, or on behalf of, the requesting person, and

(b) specify the reasons for the request.

Consolidation, subdivision or replacement of licences subject to an order

75.04   (1) In this section, "original licence" means a forest licence or tree farm licence to which an order made under section 75.02 applies.

(2) If an original licence is replaced under section 19 or 39 by 2 or more other licences, the harvested volume that, before the replacement, was charged to the original licence must be charged to the other licences by allocating that volume among the other licences by the method set out in subsection (3).

(3) The part of the harvested volume to be allocated among each of the other licences must be determined by multiplying that volume by the fraction obtained by dividing the allowable annual cut of that other licence by the allowable annual cut of the original licence.

(4) If 2 or more licences are replaced under section 19 or 39 by one other licence, the harvested volume that, before the replacement, was charged to the original licences must be charged to the other licence.

(5) The minister must amend an order made under section 75.02 to account for an allocation of volume under subsection (2) of this section or a charging of volume under subsection (4) of this section.

(6) If an original licence is a forest licence that is replaced by another forest licence under section 15 or if an original licence is a tree farm licence that is replaced by another tree farm licence under section 36,

(a) the harvested volume that, before the replacement, was charged to the original licence must be charged to the replacement licence, and

(b) the order made under section 75.02 in respect of the original licence applies to the replacement licence as if the replacement licence were the original licence.

Penalty for non-compliance with minister's order

75.05   (1) If the harvested volume limit specified for one or more licences in an order made under section 75.02 is exceeded, the licence holder must pay to the government the penalty determined under subsection (2) of this section.

(2) The penalty under subsection (1) is the product of

(a) the volume of harvested timber that exceeds the harvested volume limit, and

(b) the prescribed rate.

(3) A penalty under this section is in addition to stumpage payable or another penalty under this Act or another enactment.

Relief from penalty

75.06   (1) On the request of a licence holder who is subject to a penalty imposed under section 75.05, the minister may grant relief, in whole or in part, from the penalty if the minister is satisfied that the reasons for the relief meet prescribed criteria.

(2) A request under subsection (1) must

(a) be submitted within 90 days after the date the penalty is imposed under section 75.05 (1),

(b) be signed by, or on behalf of, the requesting person, and

(c) specify the reasons for the request.

Regulation making powers

75.07   (1) Without limiting Division 3 of Part 12, the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing the allowable annual cut referred to in the definition of "base-level allowable annual cut" in section 75.01;

(b) prescribing conditions for the purposes of paragraph (b) of the definition of "exempted licence" in section 75.01;

(c) for the purpose of the definition of "harvested volume" in section 75.01 (1), specifying the rules, methods, formulas or requirements for determining the harvested volume, including, without limitation, requiring the holder of one or more licences to which an order under section 75.02 applies to make assessments of the partitioned timber;

(d) specifying the criteria, circumstances, rules, methods or formulas to be used to determine limits on harvested volume under section 75.02;

(e) prescribing criteria for increasing or waiving a harvested volume limit for the purposes of section 75.03;

(f) prescribing penalty rates for the purposes of section 75.05;

(g) prescribing criteria for relief from penalty for the purposes of section 75.06.

(2) [Repealed 2016-11-18.]

(3) A rate prescribed under subsection (1) (f) may be different for different portions of the volume referred to in section 75.05 (2) (a).

Division 3.1 — Cut Control

Interpretation

75.1   (1) In this Division:

"cut control period" in relation to a licence, means the cut control period determined for that licence under section 75.4 or 75.5;

"volume of timber harvested", in relation to each licence as defined in a provision of this Division, means the total of the timber volumes that are attributed to the licence

(a) in cut control statements issued on behalf of the government to the holder of the licence, or

(b) under the authority of a regulation made under subsection (3) (b) or (c),

for

(c) the term of the licence, if it is a licence as defined in section 75.2 or 75.21, or

(d) the cut control period for the licence, if it is not a licence as defined in section 75.2 or 75.21,

less all downward adjustments to those volumes to which the holder of the licence is entitled under subsection (3) of this section.

(2) In the definition of "volume of timber harvested" in subsection (1), "timber volumes" means the following volumes:

(a) if the timber volume is reported by scale under Part 6 of the Act,

(i) the volume of timber cut under the licence and under road permits associated with the licence, and

(ii) the volume of timber estimated to be wasted or damaged under the licence and under road permits associated with the licence;

(b) if the timber volume is calculated using information from a cruise of the timber before the timber is cut, the volume of timber calculated to have been cut under the licence and under road permits associated with the licence;

(c) the volume of timber cut, damaged or destroyed by the holder of the licence without authorization;

(d) the volume of timber attributed to the licence by the minister under the authority of a regulation made under subsection (3) (b) or (c);

(e) except for a licence as defined in section 75.2 or 75.21, the excess volume of timber, if any, carried forward under section 75.7 from the immediately preceding cut control period.

(3) For the purposes of the definition of "volume of timber harvested" in subsection (1), the Lieutenant Governor in Council may make regulations

(a) prescribing percentages or amounts by which the timber volumes attributed to a licence in statements referred to in that definition must be, subject to an applicable limit set out in an order issued under a regulation made under paragraph (a.1), adjusted downward to take into account

(i) grades and species of timber, or

(ii) uses of timber

included in the volumes described in subsection (2) (a) and (b),

(a.1) with respect to percentages prescribed under paragraph (a), authorizing the minister, subject to any terms specified in the regulation, to set, by order respecting an area, a limit on one or both of the following amounts:

(i) the aggregate volume of downward adjustments that may be made to one or more types of licences in the area;

(ii) the volume of downward adjustment that may be made to a licence or type of licence specified in the order,

(b) authorizing the minister, in specified circumstances and with the consent of the licensees, to attribute a portion of the volume of timber harvested under any type of licence, as defined in a provision of this Division, to another licence as so defined, whether of the same or a different type, and

(c) authorizing the minister, in specified circumstances and with the consent of the licensee, to attribute a portion of the volume of timber harvested under the licence in a cut control period to the immediately preceding cut control period.

(3.1) If the minister is authorized to make an order under authority of a regulation made under subsection (3) (a.1), the order made under that authority must set out the following:

(a) the area for which the order is made;

(b) the licence or type of licence to which the order applies;

(c) the time period during which the limit applies;

(d) the grade and species of timber, or the uses of timber, to which the order applies.

(3.2) An order made under authority of a regulation made under subsection (3) (a.1) must be published by posting the order on a publicly accessible website maintained by or on behalf of the government.

(4) A percentage prescribed under subsection (3) (a) for a grade or species of timber may be any percentage within the range of 0% to 100%.

Exception for licences that define "volume of timber harvested"

75.11   (1) If a licence, as defined in a provision of this Division,

(a) provides that the definition of "volume of timber harvested" in section 75.1 (1) does not apply to the licence, and

(b) contains a different definition that is specific to the licence,

that different definition applies to that licence for the purposes of this Division instead of the definition of "volume of timber harvested" in section 75.1 (1).

(2) For the purposes of a definition of "volume of timber harvested" included in a licence referred to in subsection (1), the Lieutenant Governor in Council may make regulations

(a) authorizing the minister, in specified circumstances and with the consent of the licensees, to attribute a portion of the volume of timber harvested under any type of licence, as defined in a provision of this Division, to another licence as so defined, whether of the same or a different type, and

(b) authorizing the minister, in specified circumstances and with the consent of the licensee, to attribute a portion of the volume of timber harvested under the licence in a cut control period to the immediately preceding cut control period.

Bonus bid equalization payment for attributed timber volumes

75.12   (1) The holder of a licence for which a bonus bid was tendered must pay an amount to the government, in accordance with the regulations, if

(a) a volume of timber harvested under another licence is attributed to the holder's licence under the authority of a regulation made under section 75.1 (3) (b) or 75.11 (2) (a), and

(b) the bonus bid that was tendered for the holder's licence is higher than the bonus bid, if any, that was tendered for the licence under which the attributed volume was harvested.

(2) Without limiting Division 3 of Part 12, the Lieutenant Governor in Council may make regulations respecting payments required under subsection (1), including, without limitation,

(a) the criteria, circumstances, rules, methods or formulas to be used in calculating the amount payable,

(b) the time period within which the amount must be paid, and

(c) the form and manner of payment.

Limit on total cut for licences with a term of 5 years or less

75.2   (1) In this section, "licence" means a

(a) timber sale licence that specifies an allowable annual cut,

(b) forest licence,

(c) tree farm licence, or

(d) woodlot licence

originally having a term ending 5 years or less after its commencement date.

(2) The holder of a licence must ensure that the volume of timber harvested during the term of the licence does not exceed a limit equal to the sum of the allowable annual cuts

(a) authorized for the licence if it is a forest licence, timber sale licence or woodlot licence, or

(b) available to the holder under the licence if it is a tree farm licence

for the period of the original term of the licence.

(2.1) The holder of a licence must ensure that the volume of timber harvested under the licence does not exceed the maximum harvestable volume specified in the licence.

(2.2) If compliance with subsection (2) is inconsistent with compliance with subsection (2.1), subsection (2.1) prevails to the extent of the inconsistency.

(3) If the volume of timber harvested during the term of a licence exceeds the applicable limit under subsection (2) or the limit under subsection (2.1), the holder of the licence must pay to the government the penalty determined under subsection (4).

(4) The penalty under subsection (3) is the product of

(a) the volume of timber harvested during the term of the licence that exceeds the applicable limit under subsection (2) or the limit under subsection (2.1), and

(b) the prescribed rate.

(5) A penalty under this section is in addition to stumpage payable or another penalty under this Act or another enactment.

Limit on total cut for forestry licence to cut and community salvage licence

75.21   (1) In this section, "licence" means a forestry licence to cut or community salvage licence.

(2) The holder of a licence must ensure that the volume of timber harvested under the licence does not exceed the maximum harvestable volume specified in the licence.

(3) If the volume of timber harvested under a licence exceeds the limit specified in subsection (2), the holder of the licence must pay to the government the penalty determined under subsection (4).

(4) The penalty under subsection (3) is the product of

(a) the volume of timber harvested under the licence that exceeds the limit referred to in subsection (2), and

(b) the prescribed rate.

(5) A penalty under this section is in addition to stumpage payable or another penalty under this Act or another enactment.

Cut control period for short term licences that are extended

75.22   (1) In this section, "licence" means a forest licence originally having a term ending 5 years or less after its commencement date.

(2) On the date the term of a licence is extended under section 47.3 (3) (b) beyond 5 years from the commencement date,

(a) if the licence specifies an allowable annual cut greater than 10 000 m3, section 75.4 (2) to (7) applies to the licence,

(b) if the licence specifies an allowable annual cut of 10 000 m3 or less, section 75.5 (2) to (5) applies to the licence, and

(c) the first cut control period for a licence described in paragraph (a) or (b) as determined under section 75.4 (2) or 75.5 (2), as the case may be, is based on the commencement date of the term of the licence.

Reconciliation of cut control for short term licences

75.3   (1) In this section, "licence" means a licence that is a forest licence, woodlot licence or tree farm licence and has a term of 5 years or less.

(2) If a licence is replaced under section 19 or 39 by 2 or more other licences,

(a) each of the other licences, for the purposes of section 75.2, is deemed to have begun on the first day of the term of the replaced licence, and

(b) the volume of timber harvested that, before the replacement, was charged to the replaced licence must be charged to the other licences by allocating that volume among the other licences by the method set out in subsection (3).

(3) The part of the volume of timber harvested referred to in subsection (2) (b) to be allocated among each of the other licences must be determined by multiplying that volume by the fraction obtained by dividing the allowable annual cut of that other licence by the allowable annual cut of the replaced licence.

(4) If 2 or more licences are replaced under section 19, 39 or 46.2 by one other licence,

(a) the term of that other licence, for the purposes of section 75.2, is deemed to have begun

(i) on the first day of the terms of the replaced licences, if their terms began on the same day, or

(ii) on the earliest of the dates on which the any of the terms of the replaced licences began, if their terms began on different dates, and

(b) the volumes that before the replacement were charged to the replaced licences must be charged to that other licence.

Cut control period for major licences

75.4   (1) In this section and in section 75.41 "licence" means

(a) a forest licence that specifies an allowable annual cut greater than 10 000 m3 and has a term of more than 5 years,

(a.1) a woodlot licence that has a term of more than 5 years, or

(b) [Repealed 2007-18-41.]

(c) a tree farm licence that has a term of more than 5 years.

(2) The first cut control period for a licence, other than a woodlot licence, that is not a replacement for another licence is 5 years beginning on January 1 of the calendar year in which the term of the licence begins.

(2.1) The first cut control period for a licence that is a woodlot licence, and is not a replacement for another woodlot licence, is 5 years beginning on

(a) the first day of a month designated by the minister, or

(b) if the minister does not designate a month under paragraph (a), January 1

of the calendar year in which the term of the woodlot licence begins.

(3) For a licence that is a replacement under section 15, 36 or 46 for another licence,

(a) the first cut control period is the same as the cut control period for the replaced licence, immediately before its replacement, and

(b) the volume of timber harvested that, before the replacement, was charged to the replaced licence must be charged to the replacement licence.

(4) The holder of a licence, other than a woodlot licence, may terminate

(a) the first cut control period for the licence, and

(b) any subsequent cut control period determined under this section,

by written notice, delivered after January 1 and before June 30 of the calendar year of delivery, to a person designated by the minister.

(4.1) The holder of a licence that is a woodlot licence may terminate

(a) the first cut control period for the licence, and

(b) any subsequent cut control period for the licence determined under this section

by written notice to a person designated by the minister, delivered between the last anniversary date of the beginning of the cut control period for the licence and 6 months after that date.

(5) If the holder of a licence, other than a woodlot licence, terminates a cut control period under subsection (4),

(a) the termination takes effect on December 31 of the year immediately preceding the calendar year of delivery of the notice of termination, and

(b) a new cut control period of 5 years for the agreement begins on January 1 of the calendar year of delivery of the notice of termination.

(5.1) If the holder of a licence that is a woodlot licence terminates a cut control period under subsection (4.1),

(a) the termination takes effect on the day immediately preceding the last anniversary date of the beginning of the cut control period for the licence, and

(b) a new cut control period of 5 years for the licence begins on the last anniversary date.

(6) If the holder of a licence who under subsection (4) or (4.1) may terminate the cut control period for the licence does not do so, then, immediately after the expiry of that cut control period, a new cut control period of 5 years for the licence begins.

(7) If a licence

(a) expires or is surrendered, or

(b) is terminated under this Act,

the cut control period for the licence ends on the date the licence expires, is surrendered or is terminated despite any thing to the contrary in this Division.

Cut control limit for major licences

75.41   (1) The holder of a licence, other than a woodlot licence, must ensure that the volume of timber harvested during its cut control period does not exceed 110% of the sum of the allowable annual cuts

(a) authorized for the licence for that period if it is a forest licence, or

(b) available to the holder under the licence for that period if it is a tree farm licence.

(1.1) The holder of a licence that is a woodlot licence must ensure that the volume of timber harvested during its cut control period does not exceed 120% of the sum of the allowable annual cuts that for that period are authorized for the licence.

(2) Despite subsection (1) or (1.1), the holder of a licence must ensure that the volume of timber harvested during its final cut control period does not exceed 100% of the sum of the allowable annual cuts for that period that are

(a) authorized for the licence if it is a forest licence or woodlot licence, or

(b) available to the holder under the licence if it is a tree farm licence.

(3) The holder of a licence that provides that a replacement for it must not be offered must ensure that the volume of timber harvested under the licence does not exceed the maximum harvestable volume specified in the licence.

(4) If compliance with subsection (1), (1.1) or (2) is inconsistent with compliance with subsection (3), subsection (3) prevails to the extent of the inconsistency.

Cut control period for other licences

75.5   (1) In this section and in section 75.51:

"forest licence" means a forest licence that specifies an allowable annual cut of 10 000 m3 or less and has a term of more than 5 years;

"timber sale licence" means a timber sale licence that specifies an allowable annual cut of 10 000 m3 or less and has a term of more than 5 years.

(2) The first cut control period

(a) for a forest licence that is not a replacement under section 15 for another forest licence, or

(b) for a timber sale licence

is 5 years beginning on January 1 of the calendar year in which the term of the licence begins.

(3) [Repealed 2007-18-44.]

(3.1) For a forest licence that is a replacement under section 15 for another forest licence,

(a) the first cut control period is the same as the cut control period for the replaced licence, immediately before its replacement, and

(b) the volume of timber harvested that, before the replacement, was charged to the replaced licence must be charged to the replacement licence.

(4) Immediately after the expiry of the first cut control period, or any subsequent cut control period, for a forest licence or timber sale licence, a new 5 year cut control period for the licence begins.

(5) If a forest licence or timber sale licence

(a) expires or is surrendered, or

(b) is terminated under any provision of this Act,

the cut control period for the licence ends on the date the licence expires, is surrendered or is terminated despite any thing to the contrary in this Division.

Cut control limit for other licences

75.51   (1) The holder of a timber sale licence or forest licence must ensure that the volume of timber harvested during a cut control period for the licence is not more than 120% of the sum of the allowable annual cuts for that period that are authorized for the licence.

(2) Despite subsection (1), the holder of a timber sale licence or forest licence must ensure that the volume of timber harvested during the final cut control period for the licence is not more than 100% of the sum of the allowable annual cuts for that period that are authorized for the licence.

(3) The holder of

(a) a timber sale licence, or

(b) a forest licence

(c) [Repealed 2007-18-45.]

that provides that a replacement for it must not be offered must ensure that the volume of timber harvested under the licence does not exceed the maximum harvestable volume specified in the licence.

(4) If compliance with subsection (1) or (2) is inconsistent with compliance with subsection (3), subsection (3) prevails to the extent of the inconsistency.

Reconciliation of cut control for major and other licences

75.6   (1) In this section, "licence" means

(a) a licence as defined in section 75.4, excluding a woodlot licence, or

(b) a forest licence as defined in section 75.5.

(2) If a licence is replaced under section 19 or 39 by 2 or more other licences,

(a) the first cut control period for each of the other licences is deemed to have begun on the same day on which the latest cut control period for the replaced licence began, and

(b) the volume of timber harvested that, before the replacement, was charged to the replaced licence during its latest cut control period must be charged to the other licences by allocating that volume among the other licences during their first cut control period by the method set out in subsection (3).

(3) The part of the volume of timber harvested referred to in subsection (2) (b) to be allocated among each of the other licences must be determined by multiplying that volume by the fraction obtained by dividing the allowable annual cut of that other licence by the allowable annual cut of the replaced licence.

(4) If 2 or more licences are replaced under section 19 or 39 by one other licence,

(a) the cut control periods for the replaced licences are deemed to have ended on December 31 of the calendar year immediately preceding the calendar year of the replacement,

(b) the first cut control period for the other licence begins on January 1 of the calendar year of the replacement, and

(c) the following must be charged to the first cut control period of that other licence:

(i) the volume of timber harvested that was charged to the replaced licences during the calendar year of the replacement;

(ii) the volume of timber harvested that exceeded the volume that was authorized for, or available to the holders of, the replaced licences for the immediately preceding cut control periods.

Reconciliation of cut control for woodlot licences

75.61   (1) In this section, "licence" means a woodlot licence as described in paragraph (a.1) of the definition of "licence" in section 75.4 (1).

(2) If 2 licences are replaced under section 46.2 by one other licence,

(a) the cut control periods for the replaced licences are deemed to have ended on

(i) the day immediately preceding the last anniversary date of the beginning of the cut control periods for the replaced licences, if the anniversary date of their cut control periods is the same, or

(ii) the earlier of the days immediately preceding the last anniversary dates of the beginning of the cut control periods for the replaced licences, if the anniversary dates of their cut control periods are different,

(b) the first cut control period for the other licence begins on

(i) the last anniversary date of the beginning of the cut control periods for the replaced licences, if the anniversary date of their cut control periods is the same, or

(ii) the earlier of the last anniversary dates of the beginning of the cut control periods for the replaced licences, if the anniversary dates of their cut control periods are different, and

(c) the following must be charged to the first cut control period of that other licence:

(i) the volume of timber harvested that was charged to the replaced licences from the last anniversary date of the beginning of the cut control periods for the replaced licences to the date of the replacement;

(ii) the volume of timber harvested that exceeded the volume that was authorized for the replaced licences for the immediately preceding cut control periods.

Carry forward of excess harvest volume

75.7   If the volume of timber harvested during a cut control period for a licence, as defined in section 75.4, a forest licence, as defined in section 75.5, or a timber sale licence, as defined in section 75.5, exceeds the sum of the allowable annual cuts

(a) authorized for the licence for that period if it is a forest licence, timber sale licence or woodlot licence, or

(b) available to the holder under the licence for that period if it is a tree farm licence,

the excess volume of timber must be treated as being timber harvested during a cut period that is the next cut control period.

No carry forward of unharvested volume

75.8   (1) If the volume of timber harvested during a cut control period for a licence, as defined in section 75.4, a forest licence, as defined in section 75.5, or a timber sale licence, as defined in section 75.5, is less than the sum of the allowable annual cuts

(a) authorized for the licence for that period if it is a forest licence, timber sale licence or woodlot licence, or

(b) available to the holder for that period under the licence if it is a tree farm licence,

the holder of the licence must not harvest that unharvested volume of timber in a subsequent cut control period.

(2) The unharvested volume of timber, referred to in subsection (1), in a tree farm licence area or woodlot licence area may be disposed of to a person other than the holder of the tree farm licence or woodlot licence by means of

(a) a forestry licence to cut,

(b) a timber sale licence under section 20, or

(c) a non-replaceable forest licence.

Exemption from cut control limits

75.9   (1) If the minister considers that timber on Crown land or other forest resources on Crown land is at risk because of wind, fire, insect or disease, he or she

(a) may exempt the holder of a licence, as defined in section 75.4, a forest licence, as defined in section 75.5, or a timber sale licence, as defined in section 75.5, from the limit under section 75.41 or 75.51, as the case may be, and

(b) in granting the exemption must specify a different limit and may attach conditions to the exemption.

(2) The holder of a licence who is exempted under this section must comply with a condition of the exemption.

Penalty for exceeding cut control limits

75.91   (1) If the volume of timber harvested during a cut control period for a licence, as defined in section 75.4, a forest licence, as defined in section 75.5, or a timber sale licence, as defined in section 75.5, exceeds

(a) the limit under section 75.41 or 75.51, as the case may be, or

(b) the limit specified under section 75.9,

the holder of the licence must pay to the government the penalty determined under subsection (2).

(2) The penalty under subsection (1) is the product of

(a) the volume of timber harvested during the cut control period that exceeds the applicable limit referred to in subsection (1), and

(b) the prescribed rate.

(3) A penalty under this section is in addition to stumpage payable or another penalty under this Act or another enactment.

Relief

75.92   If the allowable annual cut

(a) authorized for a forest licence, a timber sale licence that specifies an allowable annual cut or woodlot licence, or

(b) available to the holder of a tree farm licence,

is reduced under section 8, 9, 61, 63 or 173, the minister or a person authorized by the minister may grant to the holder of the licence full or partial relief from the penalty under section 75.2 or 75.91.

Transitional — cut control

75.93   (1) A 5 year cut control period that was in effect in the period beginning on January 1, 2003 and ending on November 3, 2003, in this section called the "original cut control period",

(a) under a forest licence or timber sale licence that provides that a replacement for it must not be offered,

(b) for a licence as defined in section 75.4 that does not so provide,

(c) for a forest licence as defined in section 75.5 that does not so provide,

(d) for a timber sale licence as defined in section 75.5 that does not so provide, or

(e) for a woodlot licence as defined in section 75.5 that does not so provide,

is deemed for the purposes of this Division to be the first cut control period for the licence, in this section called the "first cut control period", having the same beginning date as the original cut control period.

(2) A volume of timber that under section 65 of this Act immediately before the repeal of that section by the Forest (Revitalization) Amendment Act, 2003 was deemed to be timber harvested in the original cut control period is deemed to be timber harvested in the first cut control period, without regard to any direction, as to amount of volume each year, under section 65 (5) before its repeal.

(3) A volume of timber that is referred to in a forest licence or timber sale licence, and is treated in the licence as timber harvested in the original cut control period, is deemed, for the purposes of this Division, to be timber harvested in the first cut control period, if the licence

(a) provides that a replacement for the licence must not be offered, and

(b) was in effect in the period beginning on January 1, 2003 and ending on November 3, 2003.

(4) If, after December 31, 2002, any provisions of

(a) a timber sale licence described in subsection (1), or

(b) a forest licence described in subsection (1)

that pertain to cut control conflict or are inconsistent with this Division, this Division prevails.

(5) Section 75.2 applies to a licence as defined in section 75.2 (1) if the licence was in effect in the period beginning on January 1, 2003 and ending on November 3, 2003.

Transitional — carry forward

75.94   (1) In this section:

"first cut control period", in relation to a licence, means the first cut control period under this Division for that licence;

"licence" means a licence, as defined in section 75.4, a forest licence, as defined in section 75.5 or a woodlot licence, as defined in section 75.5.

(2) A volume of timber that, before the repeal of section 67 of this Act by the Forest (Revitalization) Amendment Act, 2003, was the subject of an approval under section 67 (4) granted to the holder of a licence, is approved for harvesting in the first cut control period.

(3) A restriction under section 67 (4), as it was before its repeal, on volume of timber permitted to be harvested each year is without effect.

(4) Subject to subsections (5) and (6) of this section, an approval referred to in section 67 (4) may be granted under that provision, as if section 67 had not been repealed, in respect of a 5 year cut control period that ended before January 1, 2003, to the holder of a licence if

(a) no previous approval under section 67 (4) has been granted in respect of that 5 year cut control period, and

(b) the holder applies in writing before July 1, 2003 to the minister or a person authorized by the minister for the approval.

(5) An approval authorized under subsection (4) may not restrict the volume that may be harvested in any year of the first cut control period.

(6) The volume of timber that is the subject of an approval authorized under subsection (2) or (4) and granted to the holder of a licence

(a) must be harvested in the first cut control period for the licence, and

(b) for the purposes of the definition of "volume of timber harvested" in section 75.1 is deemed not to be charged to the licence.

Transitional — volume of timber harvested

75.95   (1) This section applies only to a licence, as defined in a provision of this Division, that

(a) is in effect immediately before the date this subsection comes into force, or

(b) is entered into on or after the date this subsection comes into force without a provision that the definition of "volume of timber harvested" in section 75.1 (1) does not apply to the licence.

(2) If the minister considers that

(a) a licence to which this section applies includes provisions respecting the quality and quantity of the timber

(i) cut, or

(ii) subject to waste assessment

under the licence and under road permits associated with the licence, and

(b) those provisions require a greater volume of timber to be attributed to the licence than would be attributed to it under the definition of "volume of timber harvested" in section 75.1 (1),

the minister by order may impose for that licence a definition of "volume of timber harvested" that is specific to that licence and that reflects the greater volume referred to in paragraph (b).

(3) A licence to which this section applies and that is the subject of an order under subsection (2) is deemed to have been amended on the date of the order to include the definition of "volume of timber harvested" imposed for the licence by that order.

(4) If a licence to which this section applies is amended under subsection (3), the definition of "volume of timber harvested" imposed for the licence under this section applies for the purposes of this Division instead of the definition of "volume of timber harvested" in section 75.1 (1).

(5) For the purposes of a definition of "volume of timber harvested" imposed for a licence by order under subsection (2), the Lieutenant Governor in Council may make regulations authorizing the regional manager or district manager, in specified circumstances and with the consent of the licensee, to attribute a portion of the volume of timber harvested under the licence in a cut control period to the immediately preceding cut control period.

Transitional — woodlot licence cut control and carry forward

75.96   (1) In this section, "original cut control period" means the cut control period that, under section 75.5 (3), (3.1) or (4), was in effect for a woodlot licence immediately before the repeal of section 75.5 (3) by the Forests and Range Statutes Amendment Act, 2007.

(2) The original cut control period for the woodlot licence is deemed to be the first cut control period under section 75.4 (2.1) having the same beginning date as the original cut control period.

(3) A volume of timber harvested under the woodlot licence in the original cut control period is deemed to be timber harvested in the first cut control period under section 75.4 (2.1).

(4) A volume of timber that was deemed to be timber harvested in the original cut control period under section 75.7 or 75.93 (2) is deemed to be harvested in the first cut control period for the woodlot licence under section 75.4 (2.1).

(5) A volume of timber approved in accordance with section 75.94 for harvesting under the woodlot licence in the original cut control period

(a) is approved for harvesting in the first cut control period under section 75.4 (2.1),

(b) may be harvested only in the first cut control period under section 75.4 (2.1), and

(c) is, for the purposes of the definition of "volume of timber harvested" in section 75.1, not charged to the woodlot licence.

Division 4 — Suspension and Cancellation

Suspension of rights

76   (0.1) In this section, "agreement" does not include a BC timber sales agreement.

(1) In addition to any penalty, charge or order under this Act or the Forest and Range Practices Act, the minister may suspend, in whole or in part, rights under an agreement if its holder

(a) made a material misrepresentation, omission or misstatement of fact in the application for the agreement or in information provided in the application,

(b) made a material misrepresentation, omission or misstatement of fact in an operational plan,

(c) did not perform an obligation to be performed under the agreement, other than an obligation described in section 14 (1) (g.1), 43.3 (1) (g.1), 43.55 (1) (h), 43.8 (g.1), 45 (1) (f.1) or 47.7 (g), or

(d) failed to comply with the requirements under this Act, the Forest and Range Practices Act, the Forest Practices Code of British Columbia Act or the Wildfire Act.

(1.1) In addition to any penalty, charge or order under this Act or the Forest and Range Practices Act, the minister may suspend, in whole or in part, rights under

(a) a forest licence if there is a contravention of the condition described in section 14 (1) (g.1),

(b) [Repealed 2015-26-18.]

(c) a community forest agreement if there is a contravention of the condition described in section 43.3 (1) (g.1),

(c.01) a first nations woodland licence if there is a contravention of the condition described in section 43.55 (1) (h),

(c.1) a community salvage licence if there is a contravention of the condition described in section 43.8 (g.1),

(d) a woodlot licence if there is a contravention of the condition described in section 45 (1) (f.1), or

(e) a forestry licence to cut if there is a contravention of the condition described in section 47.7 (g).

(2) Without limiting subsection (1), the minister may suspend, in whole or in part, rights under a major licence or woodlot licence that is replaceable, if its holder fails to comply with a requirement to establish a free growing stand, as defined in the Forest and Range Practices Act, imposed on the holder under that Act in respect of a major licence or woodlot licence that is non-replaceable.

(3) Before rights are suspended under subsection (1) or (2), the minister must serve a notice on the holder of the agreement specifying the reason for the suspension of rights and a date, at least 5 days after the date of service, on which the suspension takes effect.

(3.1) Before rights are suspended under subsection (1.1), the minister must serve notice on the holder of the agreement

(a) stating the particulars of the holder's non-compliance with the agreement between the first nation and the government referred to in section 14 (1) (g.1), 43.3 (1) (g.1), 43.55 (1) (h), 43.8 (g.1), 45 (1) (f.1) or 47.7 (g), as the case may be, and

(b) specifying a date, at least 5 days after the date of service, on which the suspension takes effect.

(4) A suspension of rights takes effect on the date specified in the notice and continues until the rights are reinstated by the minister or cancelled under this Act.

(5) The minister, on request of the holder, must allow the holder an opportunity to be heard and must rescind the notice if he or she considers that the holder is not subject to subsection (1).

(6) The minister, on application of the holder, must reinstate rights suspended under this section if the holder is performing the holder's obligations and is complying with this Act and the regulations.

Cancellation

77   (1) If rights under an agreement are under suspension under section 76 (1) or (2), the minister may cancel the agreement.

(1.1) If rights under an agreement are under suspension under section 76 (1.1), the minister may cancel the agreement or a road use permit granted for the agreement to the holder of the agreement.

(2) At least 3 months before cancelling an agreement or road use permit the minister must serve on its holder a written notice of cancellation specifying the grounds of cancellation and the day on which cancellation takes effect.

(3) If within 30 days after a notice of cancellation has been served the holder so requests, the minister must give the holder an opportunity to be heard.

(4) A notice of cancellation may be rescinded or the day on which a cancellation takes effect may be postponed.

(5) Notice of a cancellation must be published in the Gazette.

BC timber sales — disqualification, suspension and cancellation

78   (1) By notice served on a person, the timber sales manager, in addition to any other action that may be taken under this Act, may do any or all of the following, if any of the criteria referred to in subsection (2) are met:

(a) disqualify the person, indefinitely or for a specified period, from being registered as a BC timber sales enterprise;

(b) disqualify the person from making an application under Part 3 for a BC timber sales agreement, either in person or through an agent, for a period not exceeding 2 years beginning on the date of the notice;

(c) suspend, in whole or in part, rights in any BC timber sales agreements held by the person;

(d) cancel any BC timber sales agreements held by the person.

(2) The timber sales manager may take an action under subsection (1) against a person if satisfied that the person

(a) has made a material misrepresentation, omission or misstatement of fact in

(i) an application for registration as a BC timber sales enterprise under the regulations or in information furnished with the application, or

(ii) an application for a BC timber sales agreement or in information furnished with the application,

(b) has not performed an obligation of the person under a BC timber sales agreement, or

(c) has not complied with

(i) this Act or a regulation made under this Act,

(ii) the Forest and Range Practices Act or a regulation or standard made under that Act,

(ii.1) the Forest Practices Code of British Columbia Act or a regulation made under that Act, or

(iii) the Wildfire Act or a regulation under that Act.

(3) The timber sales manager may impose conditions with which a person referred to in subsection (1) (a) to (c) must comply before a disqualification or suspension under subsection (1) is rescinded.

(4) Despite subsection (1), the timber sales manager must disqualify a person, indefinitely or for a specified period, from being registered as a BC timber sales enterprise if the person

(a) is the successful applicant for a BC timber sales agreement and does not enter into the agreement, or

(b) is the holder of a BC timber sales agreement that has been cancelled because the person did not comply with the agreement.

(5) For the purposes of subsection (4), the Lieutenant Governor in Council may make regulations

(a) specifying periods of disqualification that may differ for different circumstances set out in the regulations, and

(b) authorizing the timber sales manager to determine, on a case-by-case basis, within prescribed limits and according to prescribed criteria, the period of disqualification.

BC timber sales — minister's powers of suspension and cancellation

78.1   (1) By notice served on a BC timber sales enterprise, the minister, in addition to any other action that may be taken under this Act or the Forest and Range Practices Act, may suspend, in whole or in part, rights in any BC timber sales agreement held by the person, if the person

(a) has made a material misrepresentation, omission or misstatement of fact in an operational plan prepared by the person, or

(b) has not complied with

(i) this Act or a regulation made under this Act, or

(ii) the Forest and Range Practices Act, the Forest Practices Code of British Columbia Act, the Wildfire Act or any regulations or standards made under those Acts.

(2) The minister may impose conditions with which a person referred to in subsection (1) must comply before a suspension under that subsection is rescinded.

(3) If rights under a BC timber sales agreement are under suspension under section 78 or under this section, the minister may cancel a road use permit granted for the agreement to the holder of the agreement.

Continuing liability

79   (1) Despite the expiry, surrender, suspension or cancellation of a holder's agreement, the holder is liable

(a) to pay the rent, fees, costs and penalties owing to the government in respect of the agreement,

(b) to perform all other obligations under the agreement,

(c) to perform all other obligations imposed under this Act, the Forest and Range Practices Act, the Forest Practices Code of British Columbia Act or the Wildfire Act with respect to the agreement, and

(d) to pay to the government all other money required under this Act to be paid to the government in respect of the agreement

incurred before its expiry, surrender, suspension or cancellation.

(1.1) Subject to subsection (1.2), for the purposes of performing obligations referred to in subsection (1) (b) and (c), the holder may enter onto Crown land.

(1.2) Subject to the regulations under subsection (1.4), if any, the minister or timber sales manager may impose requirements he or she considers necessary or desirable to be met by the holder as conditions of entering onto the Crown land, including that the holder provide security.

(1.3) The holder must comply with any requirements imposed under subsection (1.2).

(1.4) For the purposes of subsection (1.2), the Lieutenant Governor in Council may make regulations

(a) limiting the circumstances under which the minister or timber sales manager may exercise the discretion under subsection (1.2),

(b) specifying the form and amount of the security, and

(c) specifying the circumstances under which the security may be realized.

(2) In this section,

(a) references to an agreement are to be read as including references to a cutting permit, road permit or road use permit issued to the holder of the agreement, and

(b) "holder" includes a former holder.

Division 4.1 — Miscellaneous

Residual fibre orders

79.1   (1) In this section:

"agreement" means

(a) a form of agreement referred to in section 12, or

(b) a pulpwood agreement;

"residual fibre" means Crown timber in an area that is cut but not removed from the area.

(2) The minister may order the holder of an agreement

(a) to submit a report to the minister in the form and within the time period specified by the minister,

(b) to include in the report referred to in paragraph (a) information specified by the minister related to an area specified by the minister, which may include, without limitation, the following information:

(i) an estimate, made in accordance with the regulations, of the volume of residual fibre in the area at the time of the report;

(ii) an estimate, made in accordance with the regulations, of the volume of residual fibre the holder of the agreement reasonably expects to be in the area at a time specified by the minister;

(iii) an estimate, made in accordance with the regulations, of the volume of residual fibre the holder of the agreement does not intend to use,

(c) to submit updates of any information included in the report under paragraph (b), in the form and within the time period specified by the minister,

(d) if the residual fibre is not being utilized or is not going to be utilized, not to damage some or all of the residual fibre for a period of time specified by the minister in an area specified by the minister, and

(e) to handle the residual fibre as set out in the regulations.

(3) The minister may amend or rescind an order made under subsection (2).

(4) If an order is made under subsection (2) (d), the holder of the agreement may identify all or a portion of the residual fibre that is subject to the order and notify the minister that the holder of the agreement is willing to abandon the holder's rights to the identified residual fibre.

(5) If the holder of the agreement gives notice to the minister under subsection (4), for a period of 60 days starting on the date notice is received by the minister,

(a) the holder of the agreement may not deal with the residual fibre identified in the notice without the consent of the minister, and

(b) the minister may

(i) by order, specify some or all of the residual fibre identified in the notice and deem, as abandoned, the rights of the holder of the agreement to the residual fibre specified in the order, and

(ii) issue to a person other than the holder of the agreement one or both of the following in respect of some or all of the residual fibre specified in the order made under subparagraph (i):

(A) a fibre recovery permit referred to in section 47.72 (1) (c) if the person other than the holder of the agreement holds a fibre supply licence to cut under section 47.3 (1) or 47.71 that includes the area that is subject to the order made under subsection (2) (d) of this section;

(B) a forestry licence to cut referred to in section 47.6 (2.11) that includes the area that is subject to the order made under subsection (2) (d) of this section.

(6) Notice given under subsection (4) is deemed to be received by the minister as follows:

(a) if given by mailing a copy by ordinary or registered mail, on the 5th day after the copy is mailed;

(b) if given by sending a copy by electronic mail, on the 3rd day after the copy is sent;

(c) if given by leaving a copy at a district office, on the 3rd day after the copy is left;

(d) if given by delivering by hand a copy to a district manager, on delivery of the copy.

(7) On the date the minister makes an order under subsection (5) (b) (i) deeming the rights of a holder of an agreement to be abandoned with respect to the residual fibre specified in the order, all rights of the holder of the agreement to that residual fibre are cancelled.

(8) As soon as practicable after the date the minister makes an order under subsection (5) (b) (i), the minister must give to the holder of the agreement

(a) a copy of the order, and

(b) written notice stating that the rights of the holder of the agreement respecting the residual fibre specified in the order are cancelled.

(9) As soon as practicable after the date the minister issues a permit or licence under subsection (5) (b) (ii), the minister must give to the holder of the agreement written notice that the permit or licence has been issued.

When compensation is not payable

80   (1) In this section, "compensation" includes damages.

(2) No compensation is payable by the government and proceedings must not be commenced or continued to claim compensation from the government or to obtain a declaration that compensation is payable by the government in respect of an expiry, failure to extend, reduction, refusal, deletion or deeming, or a reduction in an allowable annual cut as a result of a determination or a deeming, under any of:

(a) the following provisions of this Act: sections 8 (1) and (2); 9 (3) and (4); 27 (a); 63, 63.1, 63.2, 68 to 70, 72 to 74 and 81.1;

(b) the following provisions of the Forest Act, R.S.B.C. 1996, c. 157, before their repeal: sections 64; 65; 66; 67; 71;

(c) the following provisions of the Forest Act, R.S.B.C. 1979, c. 140: sections 15 (1); 19 (b) and (c); 33 (1) and (5); 37 (1); 39 (1);

(d) the following provisions of the Forest Act, R.S.B.C. 1979, c. 140, before their repeal: section 44 (3); 95.

(3) No compensation is payable by the government and proceedings must not be commenced or continued to claim compensation from the government or to obtain a declaration that compensation is payable by the government in respect of the effect, under section 75.02, 75.1, 75.11 or 75.95, on a licence as defined in a provision of Division 3.1 of Part 4.

(4) No compensation is payable by the government and proceedings must not be commenced or continued to claim compensation from the government or to obtain a declaration that compensation is payable by the government as a result of a cancellation of rights under section 79.1 (7).

Limit on compensation

80.01   (1) In this section:

"agreement" means a tree farm licence, community forest agreement, first nations woodland licence, woodlot licence, timber licence, forest licence or timber sale licence;

"compensation" includes damages.

(2) The compensation payable to the holder of an agreement because of or arising out of

(a) a deletion of Crown land

(i) under section 60, 60.01, 60.2 or 60.3, or

(ii) referred to in section 60.4

affecting the agreement,

(b) a reduction in allowable annual cut affecting the agreement, or

(c) a deletion referred to in paragraph (a) in combination with a reduction referred to in paragraph (b)

is limited to the amount of compensation determined in relation to that agreement under sections 60 to 60.95.

(3) An action or other proceeding must not be brought or continued against the government for compensation in an amount that exceeds the amount limited under this section.

Relief from liability for appurtenancy and processing requirements

80.1   (1) In this section:

"appurtenancy requirement" means a provision of a licence that requires the holder to construct, modify or maintain a timber processing facility;

"licence" means a forest licence or a tree farm licence;

"non-replaceable licence" means a licence that provides that a replacement for it must not be offered;

"processing requirement" means a provision of a licence that requires the holder to process the timber harvested under the licence, or an equivalent volume of timber, through a timber processing facility;

"replaceable licence" means a licence for which a replacement licence must be offered under section 15 or 36.

(2) The holder of a replaceable licence, whether entered into before or after the coming into force of this subsection, is relieved in relation to the licence from

(a) any appurtenancy requirements, processing requirements or requirements of the licence directly related to either, and

(b) any commitments made in a proposal on which the award of the licence, or a predecessor of the licence, if applicable, was based, in relation to

(i) constructing, modifying or maintaining a timber processing facility, or

(ii) processing timber through a timber processing facility.

(3) On and after the later of

(a) the tenth anniversary of a non-replaceable licence, and

(b) the date this section comes into force,

the holder of a non-replaceable licence, whether entered into before or after the coming into force of this subsection, is relieved in relation to the licence from

(c) any appurtenancy requirements, processing requirements or requirements of the licence directly related to either, and

(d) any commitments made in a proposal on which the award of the licence, or a predecessor of the licence, if applicable, was based, in relation to

(i) constructing, modifying or maintaining a timber processing facility, or

(ii) processing timber through a timber processing facility.

Forestry Revitalization Act

80.2   (1) In this section:

"Acts" means this Act, the Forest and Range Practices Act and the Forest Practices Code of British Columbia Act, and includes the regulations under each of them;

"group licence interim period", in relation to a licence in a group of licences which licence is specified in a minister's order, means,

(a) if there is only one reduction in allowable annual cut for that licence under the minister's order, the period beginning on March 31, 2003 and ending on

(i) the date when the minister's order is made for the licence, if no subsequent date is specified in the minister's order in relation to that reduction and for the purposes of section 3 (5.1) of the Forestry Revitalization Act, or

(ii) the subsequent date, if one is specified in the minister's order, in relation to that reduction and for the purposes of section 3 (5.1) of the Forestry Revitalization Act, or

(b) if there are a series of reductions in allowable annual cut for that licence under the minister's order,

(i) for the first in the series of reductions, the period beginning on March 31, 2003 and ending on

(A) the date when the minister's order is made for that first reduction, if no subsequent date is specified in the minister's order, in relation to that first reduction and for the purposes of section 3 (5.1) of the Forestry Revitalization Act, or

(B) the subsequent date, if one is specified in the minister's order, in relation to that first reduction and for the purposes of section 3 (5.1) of the Forestry Revitalization Act, and

(ii) for the further reduction in the series of reductions, the period beginning at the end of the period for the immediately preceding reduction and ending on

(A) the date when the minister's order is made for that further reduction, if no subsequent date is specified in the minister's order, in relation to that further reduction and for the purposes of section 3 (5.1) of the Forestry Revitalization Act, or

(B) the subsequent date, if one is specified in the minister's order, in relation to that further reduction and for the purposes of section 3 (5.1) of the Forestry Revitalization Act;

"minister's order" means an order made under section 3 of the Forestry Revitalization Act;

"timber licence interim period", in relation to a timber licence specified in a minister's order, means

(a) if there is only one reduction in area for that licence under the minister's order, the period beginning on March 31, 2003 and ending on

(i) the date when the minister's order is made for the licence, if no subsequent date is specified in the minister's order in relation to that reduction and for the purposes of section 3 (5.1) of the Forestry Revitalization Act, or

(ii) the subsequent date, if one is specified in the minister's order, in relation to that reduction and for the purposes of section 3 (5.1) of the Forestry Revitalization Act, or

(b) if there are a series of reductions in area for that licence under the minister's order,

(i) for the first in the series of reductions, the period beginning on March 31, 2003 and ending on

(A) the date when the minister's order is made for that first reduction, if no subsequent date is specified in the minister's order, in relation to that first reduction and for the purposes of section 3 (5.1) of the Forestry Revitalization Act, or

(B) the subsequent date, if one is specified in the minister's order, in relation to that first reduction and for the purposes of section 3 (5.1) of the Forestry Revitalization Act, and

(ii) for a further reduction in the series of reductions, the period beginning at the end of the period for the immediately preceding reduction and ending on

(A) the date when the minister's order is made for that further reduction, if no subsequent date is specified in the minister's order, in relation to that further reduction and for the purposes of section 3 (5.1) of the Forestry Revitalization Act, or

(B) the subsequent date, if one is specified in the minister's order, in relation to that further reduction and for the purposes of section 3 (5.1) of the Forestry Revitalization Act.

(2) In this section words and expressions have the same meanings as they have in section 1 of the Forestry Revitalization Act.

(3) A determination of whether or not the holder of a licence in a group of licences has complied with the Acts, in relation to timber harvesting under the licence, during a group licence interim period must be made

(a) if there is only one reduction in allowable annual cut for that licence under a minister's order, without regard to the order, or

(b) if there are a series of reductions in allowable annual cut for that licence under a minister's order, without regard to the order, except as it pertains to the allowable annual cut remaining under the licence after each of the group licence interim periods, in turn, under the order.

(4) A determination of whether or not the holder of a timber licence specified in a minister's order has complied with the Acts, in relation to timber harvesting under the licence, during a timber licence interim period must be made

(a) if there is only one reduction in area for that licence under a minister's order, without regard to the order, or

(b) if there are a series of reductions in area for that licence under a minister's order, without regard to the order, except as it pertains to the area of Crown land remaining under the licence after each of the interim periods, in turn, under the order.

Division 5 — Eligibility of Applicants

Eligibility

81   (1) To the extent provided in the regulations, the issuance of a cutting permit may be refused or have special conditions attached if an agreement provides for cutting permits and the district manager determines that

(a) rights under the agreement are under suspension, or

(b) the holder of the agreement has failed to

(i) [Repealed 1997-48-12.]

(ii) provide security or a deposit required under this Act or the Forest and Range Practices Act,

(iii) perform an obligation under the agreement to be performed by the holder in respect of an area of land specified in

(A) a cutting permit previously issued under the agreement, or

(B) a road permit or road use permit associated with the agreement, or

(iv) comply with a requirement under this Act, the Forest and Range Practices Act, the Forest Practices Code of British Columbia Act or the Wildfire Act in respect of an area of land referred to in subparagraph (iii).

(2) The refusal to issue a cutting permit under subsection (1) may continue until

(a) the suspension is rescinded,

(b) the suspended rights are reinstated, or

(c) the holder of the agreement

(i) [Repealed 1997-48-12.]

(ii) provides the required security or deposit,

(iii) performs the obligation to be performed under the agreement in respect of land referred to in subsection (1) (b) (iii), or

(iv) complies with the requirement under this Act, the Forest and Range Practices Act, the Forest Practices Code of British Columbia Act or the Wildfire Act in respect of land referred to in subsection (1) (b) (iii).

(3) To the extent provided in the regulations, the minister, timber sales manager or district manager, as the case may be, may reject an application for any of the following on either of the grounds set out in subsection (4):

(a) an agreement listed in section 12;

(b) a permit not listed in section 12 that is issued under this Act or under an agreement;

(c) a permit under the Forest Practices Code of British Columbia Act.

(4) The grounds for rejection referred to in subsection (3) are that the applicant is the holder of an agreement or permit listed in that subsection and

(a) rights under the agreement or permit so held are under suspension, or

(b) the applicant, in respect of the agreement or permit so held has failed to provide, perform or comply as referred to in subsection (1) (b) (ii), (iii) or (iv).

(5) An application for any of the following may be refused on the grounds set out in subsection (6):

(a) an agreement listed in section 12;

(b) a permit not listed in section 12 that is issued under this Act or under an agreement;

(c) a scale site authorization under section 95 of this Act;

(d) a permit under the Forest Practices Code of British Columbia Act.

(6) The grounds for refusal referred to in subsection (5) are that one or both of the following have not paid stumpage or other money payable to the government by the due date under section 130:

(a) the applicant;

(b) a person not at arm's length, as defined in the Income Tax Act (Canada), from the applicant.

(7) The grounds for refusal described in subsection (6) apply whether or not the applicant or person has made arrangements satisfactory to the revenue minister to pay the stumpage or other money.

Refusal of cutting permit or road permit

81.1   If the minister determines that the issuance of a cutting permit or road permit would compromise government objectives as specified by regulation, the person who under this Act has discretion to issue the permit must refuse the application for the permit.

Contents | Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 11.1 | Part 12 | Part 13 | Part 14