Definitions

1   In this regulation:

"Act" means the Forest Act;

"agreement" means an agreement entered into by the minister in the form of a licence, an agreement or a permit, other than a road permit, referred to in section 12 (1) [form of agreements] of the Act;

"applicant" means the holder of an agreement who has applied under section 2 (1) to surrender the agreement;

"application" means an application under section 2 (1);

"continuing obligation", in relation to the surrender of an agreement, means an obligation that the holder of the agreement is liable to pay or perform under section 79 [continuing liability] of the Act;

"forest cover inventory" has the same meaning as in section 1 (1) [definitions] of the Forest Planning and Practices Regulation;

"money owing" means money that

(a) is required to be paid to the government under the circumstances set out in section 130 (1.1) [lien] of the Act, and

(b) is due and payable under that section.

Application to surrender agreement

2   (1) The holder of an agreement may apply in writing to the minister to surrender the agreement.

(2) An application to surrender an agreement must include the following:

(a) if the agreement is a major licence, community forest agreement or woodlot licence, a report setting out the extent to which the applicant, in respect of the agreement, has outstanding obligations under section 29 [free growing stands] of the Forest and Range Practices Act;

(b) if the agreement is a tree farm licence, community forest agreement, first nations woodland licence or woodlot licence, the following inventories for the area that is subject to the agreement:

(i) a forest cover inventory;

(ii) an inventory of forest, recreation and cultural heritage resources;

(c) a report setting out the extent to which the applicant has outstanding obligations to maintain or deactivate roads constructed or used for activities carried out in respect of the agreement;

(d) other reports, inventories or information the minister may require.

(3) An application to surrender an agreement, including the reports, inventories and information required under subsection (2),

(a) must be provided in the form and manner the minister requires, and

(b) must meet the specifications the minister requires.

Waste assessments

3   Before accepting an application to surrender an agreement, the minister may require the applicant to conduct waste assessments required under the agreement.

Money owing

4   Before accepting an application to surrender an agreement, the minister may require that all money owing in respect of the agreement

(a) be paid,

(b) be the subject of an arrangement for payment approved by the revenue minister, or

(c) be addressed by a combination of the methods referred to in paragraphs (a) and (b).

Security for surrender of agreement

5   (1) Before or after accepting an application to surrender an agreement, the minister may require the holder of the agreement to provide security for the performance of one or more of the holder's continuing obligations.

(2) The minister may require security under subsection (1) in respect of one or more continuing obligations only if, after considering the likelihood and consequences of the continuing obligations not being met, the minister considers it in the public interest to require security.

(3) In imposing a requirement under subsection (1) in respect of one or more continuing obligations, the minister may require the holder of the agreement to

(a) maintain with the government the deposit required, for that agreement, under the Advertising, Deposits, Disposition and Extension Regulation, and

(b) provide additional security in an amount the minister considers sufficient to ensure performance of the continuing obligations.

(4) Security required under subsection (1) must be provided in a form authorized under section 8 (4) and (5) [deposits] of the Advertising, Deposits, Disposition and Extension Regulation.

Acceptance of application to surrender agreement

6   (1) Subject to subsection (2), the minister must accept an application to surrender an agreement if the minister is satisfied that the following requirements have been met:

(a) the application meets all the requirements under section 2 [application to surrender agreement];

(b) in the case of an applicant who is required under section 3 [waste assessments] to conduct waste assessments, the applicant has conducted those waste assessments;

(c) in the case of an applicant who is required under section 4 [money owing] to take an action referred to in paragraph (a), (b) or (c) of that section, the applicant has taken that action;

(d) in the case of an applicant who, before the application is accepted, is required under section 5 to provide security, the applicant has provided that security;

(e) rights under the agreement are not under suspension, in whole or in part, under section 76 [suspension of rights] of the Act.

(2) The minister may not accept an application to surrender an agreement unless the minister is satisfied that, if the application is accepted, the continuing obligations of the holder of the agreement will be fulfilled or addressed under

(a) the agreement,

(b) the Act, or

(c) the Forest and Range Practices Act, the Forest Practices Code of British Columbia Act or the Wildfire Act.

(3) If the minister accepts an application to surrender an agreement, the surrender takes effect on the date agreed to by the minister and the applicant.

Forfeiture of security for non-compliance with obligations

7   (1) The minister may realize, in whole or in part, security maintained or provided under section 5 [security for surrender of agreement] if satisfied that one or more of the continuing obligations to which the security relates have not been fulfilled.

(2) If the minister realizes a security under subsection (1), the minister must refund to the person who provided the security the surplus, if any, of funds remaining after both the following have occurred:

(a) the direct and indirect costs that the minister determines were reasonably incurred in carrying out the work to fulfill the continuing obligations in respect of which the security was realized have been paid out of the funds;

(b) the minister is satisfied that the security is no longer required to address other continuing obligations of the holder of the agreement to which that security relates.

Refund of security

8   If section 7 does not apply, security maintained or provided under section 5 [security for surrender of agreement] may be refunded under section 14 [refund if obligations fulfilled or substantially fulfilled] of the Advertising, Deposits, Disposition and Extension Regulation.