Interpretation

1  In this regulation:

"Act" means the Forest Act;

"agreement" means a forest licence, timber sale licence, timber licence, tree farm licence, pulpwood agreement, woodlot licence, licence to cut or Christmas tree permit entered into under the Act;

"licensee" means a person who enters into an agreement, other than a Christmas tree permit, with the Crown;

"permittee" means a person who enters into an agreement with the Crown in the form of a Christmas tree permit.

[am. B.C. Reg. 147/83, s. 2.]

 Timber sale licence and forest licence

2  An advertisement inviting applications for a forest licence or a timber sale licence shall,

(a) where

(i)  the total volume of timber to be authorized for harvesting under the licence is less than 2 000 m³, or

(ii)  the timber must be removed expeditiously because it is in imminent danger of being damaged, destroyed or otherwise lost,

be published at least once, a minimum of 5 days before the date of sale, in at least one newspaper circulating in or near the area proposed for the licence,

(b) where the total volume of timber to be authorized for harvesting under the licence is 2 000 m³ or more, but less than 15 000 m³, be published

(i)  in at least one issue of the Gazette, and

(ii)  at least once, within a period of 3 consecutive weeks following the date of the publication in the Gazette, in at least one newspaper circulating in or near the area proposed for the licence,

(c) where the total volume of timber to be authorized for harvesting under the licence is 15 000 m³ or more, but less than 100 000 m³, be published

(i)  in at least one issue of the Gazette, and

(ii)  at least once every 2 weeks, within a period of 4 consecutive weeks following the date of publication in the Gazette, in at least one newspaper circulating in or near the area proposed for the licence, or

(d) where the total volume of timber to be authorized for harvesting under the licence is 100 000 m³ or more, be published

(i)  in at least one issue of the Gazette, and

(ii)  at least once every 2 weeks, within a period of 8 consecutive weeks following the date of the publication in the Gazette, in at least one newspaper circulating in or near the area proposed for the licence.

[en. B.C. Reg. 328/89, s. 1.]

 Tree farm licence or pulpwood agreement

3  An advertisement inviting applications for a tree farm licence or pulpwood agreement

(a) shall be published

(i)  in at least one issue of the Gazette, and

(ii)  in at least one newspaper circulating in or near the area proposed for the licence or the agreement, as the case may be, with at least one advertisement in every second week within the period of 8 consecutive weeks from the date of the publication in the Gazette,

(b) shall be broadcast at least once every second week within a period of 8 consecutive weeks on a radio or television station received in or near the area proposed for the licence or the agreement, as the case may be, and

(c) shall include

(i)  an informal description of the land proposed for the licence or agreement,

(ii)  the place and a date, at least 4 months following the publication in the Gazette for the public hearing required under section 33 (4) or 40 (5) of the Act, as the case may be, and

(iii)  a name of a place in the forest region where persons are able to obtain details of the proposed licence or agreement, as the case may be.

[am. B.C. Regs. 147/83, s. 4; 393/97, App. s. 1 (a).]

 Woodlot licence

4  An advertisement inviting applications for a woodlot licence

(a) shall be published

(i)  in at least one issue of the Gazette, and

(ii)  in at least one newspaper circulating in or near the area proposed for the licence, at least once every 2 weeks within a period of 4 consecutive weeks following the date of publication in the Gazette, and

(b) shall include

(i)  an informal description of the land proposed for the licence, and

(ii)  the name of a place in the forest region or forest district where persons can obtain details of the proposed licence.

[am. B.C. Regs. 147/83, s. 5; 328/89, s. 2.]

 Publication of notice

5  (1)  Notice of

(a) an offer of a forest licence made under section 15 (1.1) or (1.2) or an intent to offer a forest licence under section 15 (1.1),

(b) an offer of a timber licence made under section 28 (2),

(c) an offer of a tree farm licence made under section 36 (1.1) or (1.2) or an intent to offer a tree farm licence under section 36 (1.1), or

(d) an offer of a woodlot licence made under section 46 (1)

of the Act must be published in the Gazette and in at least one issue of at least one newspaper circulating in or near the area of the agreement not later than 6 weeks after the offer or intent to offer, as the case may be, is made.

(2)  A notice published under subsection (1) must

(a) identify the person to whom the offer was made,

(b) describe informally the land and timber subject to the agreement offered, and

(c) describe the term of the agreement offered.

[en. B.C. Reg. 238/2003, s. (b).]

 Deposits

6  (1)  Where, under Part 3 of the Act, an application is made for an agreement, other than a Christmas tree permit, the application shall include

(a) in cash or by certified cheque an amount that equals one year's rent for the agreement as calculated according to the Act, and

(b) in cash, by certified cheque or by other security acceptable to the minister, a deposit that equals the amount calculated under section 7, according to the information available at the time of the application.

(1.1)  Notwithstanding subsection (1), where an application is made for an agreement in the form of a timber sale licence to which section 7 (1) (c) (i) applies, the application may be without a deposit or may include part or all of the deposit amount required under subsection (1) (b) of this section, as specified by the regional manager, the timber sales manager or the district manager.

(2)  Repealed. [B.C. Reg. 403/2003, Sch. A, s. 1 (b).]

(3)  The successful applicant for a timber sale licence to which section 7 (1) (c) (ii) applies must pay, on demand, before entering into the agreement, any amount by which the deposit calculated under section 7 (1) (c) (ii) exceeds the amount of deposit paid under subsection (1) or (1.1).

(3.1)  Where all or part of the deposit is used by the Crown during the term of a timber sale licence, the successful applicant shall, on demand, make a further payment to maintain the deposit in the amount determined by this section.

(4)  Where

(a) an offer of a replacement for an agreement, other than a Christmas tree permit, entered into under the Act or the former Act is accepted, or

(b) an agreement, other than a Christmas tree permit, entered into under the former Act is surrendered for replacement,

the person who accepts the offer or surrenders the agreement

(c) shall maintain on deposit with the Crown an amount equal to one year's rent for the replacement agreement plus a deposit for that agreement calculated in accordance with section 7, and

(d) where the amounts required to be maintained on deposit by paragraph (c) exceed the like amounts on deposit with the Crown in respect of the agreement being replaced, shall pay the Crown the difference on demand.

(5)  An application for any agreement referred to in section 12 of the Act or for an offer or surrender of an agreement, other than a Christmas tree permit, that relates to

(a) the construction or operation of a timber processing facility or other improvement, or

(b) land on which is situated the personal property owned by a person other than the applicant or a person accepting the offer or surrendering the agreement or the Crown,

shall include in cash, by certified cheque or by other security acceptable to the minister a deposit that equals the amount specified in the invitation for application or the offer or surrender, as the case may be.

[en. B.C. Reg. 147/83, s. 7; am. B.C. Regs. 328/89, s. 3; 393/97, App., s. 1 (c); 242/2003, Sch. B, s. 1; 403/2003, Sch. A, s. 1.]

 Repealed

6.1  Repealed. [B.C. Reg. 403/2003, Sch. A, s. 2.]

 Amount of deposit

7  (1)  The deposit referred to in section 6 (1) to (4) is

(a) for a tree farm licence, 10¢/m³ of the allowable annual cut,

(b) for a timber sale licence entered into under section 24 (2) of the Act, 20¢/m³ of the allowable annual cut,

(c) for a timber sale licence, other than a timber sale licence referred to in paragraph (b), an amount determined by the regional manager, timber sales manager or district manager that

(i)  for the purpose of section 6 (1) (b), and subject to section 6 (1.1), is not less than the greater of

(A)  $3 000, or

(B)  2% of the total estimated upset stumpage value, and

(ii)  for the purpose of section 6 (3) is not less than the sum of 10% of the first $100 000 of total estimated stumpage value plus 5% of the remaining total estimated stumpage value,

(d) for a forest licence, 15¢/m³ of the allowable annual cut,

(e) for a community salvage licence, $1 500,

(f) for a woodlot licence, $200,

(g) for a forestry licence to cut entered into under section 47.6 (2) of the Act, an amount determined by the regional manager or district manager that is the sum of 10% of the first $100 000 of the total estimated stumpage value plus 5% of the remaining total estimated stumpage value, and

(h) for a forestry licence to cut entered into under

(i)  section 47.6 (3), an amount determined by the timber sales manager, and

(ii)  section 47.6 (4), an amount determined by the regional manager or district manager.

(2)  If under subsection (1) (g) the minimum amount of deposit is less than $500, the deposit required must be

(a) zero, or

(b) $500,

as determined by the regional manager or district manager.

[en. B.C. Reg. 403/2003, Sch. A, s. 3.]

 Timber sale licence deposits — transition

7.1  Section 7, as it was immediately before the effective date of this section, applies to a timber sale licence that was advertised or entered into before that date.

[en. B.C. Reg. 403/2003, Sch. A, s. 4.]

 Refund if application not approved or if conditionally approved

8  If an application for an agreement is not approved or is approved subject to a condition, the money paid under section 6 in respect of the application may be refunded, if the regional manager, timber sales manager or district manager is satisfied that there is no need for a deposit.

[en. B.C. Reg. 178/2002; am. B.C. Reg. 242/2003, Sch. B, s. 3.]

 Forfeiture of deposit for failure to enter agreement

9  (1)  If an application for an agreement is approved or conditionally approved but the applicant fails to enter into the agreement, the money paid under section 6 in respect of the application is forfeited to the Crown.

(2)  The minister or the minister's delegate may waive the requirement under subsection (1) to forfeit the money paid in respect of the application if satisfied that the failure was the result of

(a) an event that

(i)  is not related to financial circumstances of the applicant,

(ii)  is beyond the control of the applicant, and

(iii)  would, if the licence were entered into, prevent the licence obligations from being carried out, or

(b) a mistake made by the Crown which would make the agreement voidable.

[en. B.C. Reg. 178/2002.]

 Refund if obligations fulfilled or substantially fulfilled

10  A deposit paid under this regulation may be refunded,

(a) in full, if the regional manager, timber sales manager or district manager is satisfied that the licensee has fulfilled its obligations under or in respect of the agreement, or

(b) in part, if the regional manager, timber sales manager or district manager is satisfied that the licensee has substantially fulfilled its obligations under or in respect of the agreement.

[en. B.C. Reg. 178/2002; am. B.C. Reg. 242/2003, Sch. B, s. 3.]

 Forfeiture of deposit for failure to comply

11  (1)  The regional manager, timber sales manager or district manager must realize a licensee's deposit if satisfied that the licensee failed to comply with the terms and conditions of an agreement and the agreement

(a) is cancelled, or

(b) expires.

(2)  The regional manager, timber sales manager or district manager must dispose of the amount realized from the deposit, first, under the terms of the agreement, and then as to any amount remaining,

(a) 50% of the original deposit, or all of the balance remaining if the balance is less than 50%, to the Crown, and

(b) the remainder to the licensee, unless the regional manager, timber sales manager or district manager is satisfied that some or all of the remainder should be retained by the Crown after consideration of the following:

(i)  whether the licensee owes money to the Crown that may be set-off under the Financial Administration Act;

(ii)  an estimate of the direct and indirect costs to the Crown resulting from the licensee's failure to comply with the terms and conditions of the agreement including without restriction

(A)  foregone stumpage, and

(B)  costs incurred or that will probably be incurred in the ordinary course of business, by the Crown, as a result of the failure;

(iii)  any other information that the regional manager, timber sales manager or district manager considers to be relevant.

(2.1)  Despite subsections (1) and (2), the regional manager, timber sales manager or district manager must realize a licensee's deposit paid under this regulation if

(a) the deposit is for a timber sale licence,

(b) the licence is cancelled or expires, and

(c) no harvesting has taken place under the licence.

(3)  Despite subsections (1), (2) and (2.1), the minister or the minister's delegate may waive the requirement to realize a deposit under this section or may substitute a different amount than determined under subsection (2) if satisfied that the failure was the result of an event that

(a) is not related to financial circumstances of the licensee,

(b) is beyond the control of the licensee, and

(c) prevents the licence obligations from being carried out.

(4)  This section does not apply to a licence in existence immediately before the coming into force of this section, if the licence has provisions that conflict with this section.

[en. B.C. Reg. 178/2002; am. B.C. Regs. 242/2003, Sch. B, s. 3; 403/2003, Sch. A, s. 5.]

 Extension of timber sale licences

12  (1)  An application to extend the term of a timber sale licence must be in a form required by the timber sales manager.

(2)  Before an application to extend a timber sale licence is approved, the applicant is required to pay the Crown a fee equal to 5% of the amount calculated under section 58.1 (5) of the Act.

[en. B.C. Reg. 403/2003, Sch. A, s. 6.]

 Extension of cutting permits

13  (1)  An application to extend the term of a cutting permit must be in a form required by the district manager.

(2)  Before an extension of a cutting permit is approved, the applicant is required to pay to the Crown a fee equal to the amount calculated according to the following formula:

[(the total stumpage rate in effect at time of cutting permit issuance) X (the total net cruise volume at the time of cutting permit issuance or, in the absence of the total net cruise volume, an estimation of the total volume)] X 5%.

[en. B.C. Reg. 403/2003, Sch. A, s. 6.]