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This Act is current to May 14, 2024
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:

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

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

"marketing of fibre" means

(a) the acquisition and disposition of rights to harvest timber in British Columbia, and

(b) the buying and selling, within British Columbia, of timber or wood residue;

(1.1) [Repealed 2003-30-8.]

(1.2) For the purposes of this section and Divisions 2, 2.1 and 4 of this Part, "agreement" includes a pulpwood agreement.

(2) to (4) [Repealed 2019-31-2.]

Holders of agreements

53.1   (1) For the purposes of this Part and subject to subsection (2), a person is the holder of an agreement if any of the following applies:

(a) the person has entered into the agreement, whether singly or jointly with one or more other persons;

(b) the person, under section 54.2 (2), became a holder of the agreement on completion of a disposition;

(c) the person is a partner in a partnership that is a person referred to in paragraph (a) or (b) of this subsection.

(2) The government is not to be considered the holder of an agreement for the purposes of this Part.

Repealed

53.2   [Repealed 2023-43-42.]

Division 2 — Dispositions of Agreements

Cutting permits to be treated as part of agreement

53.3   For the purposes of this Division, a cutting permit issued for an agreement is to be treated as if the cutting permit formed part of the agreement.

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 all of the following conditions have been met:

(a) the minister, in writing, approves the disposition;

(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 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 a woodlot licence,

(i) the intended recipient is a person or first nation that, under section 44, may enter into a woodlot licence, and

(ii) the private land, if any, 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;

(d.3) in the case of a disposition of a BC timber sales agreement, the intended recipient is registered

(i) as a BC timber sales enterprise, and

(ii) if applicable, in a category of BC timber sales enterprises that, under section 20 (2) (b) (i), was eligible to apply for the agreement;

(d.4) in the case of a disposition of a road permit, the intended recipient is an eligible holder within the meaning of section 114;

(e) [Repealed 2019-31-5.]

(f) the disposition is completed within the longer of the following periods after approval is given by the minister under paragraph (a) of this subsection:

(i) a period specified by the minister in giving the approval;

(ii) a prescribed period, if any.

(2.1) On the request of the minister for the purposes of considering whether to approve a disposition, the holder of the agreement or the intended recipient of the agreement must provide to the minister

(a) prescribed information, and

(b) any other information the minister considers necessary.

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

Conditions attached to ministerial approval of dispositions

54.01   (1) In this section, "specified agreement" means a specific agreement held by one or both of the following:

(a) the intended recipient of an agreement under a disposition referred to in section 54;

(b) a related person of the intended recipient.

(2) The minister may, in approving a disposition of an agreement under section 54 (2) (a), attach conditions to the approval.

(3) Without limiting subsection (2), the minister may, in approving a disposition of an agreement under section 54 (2) (a), attach as a condition that one or more specified agreements be disposed of

(a) in accordance with section 54 to a person who is at arm's length from the intended recipient and from the related persons of the intended recipient, if any, and

(b) by a date specified by the minister.

(4) Without limiting subsection (2), the minister may, in approving a disposition of an agreement under section 54 (2) (a), attach conditions in relation to a road permit associated with the agreement, including conditions requiring the holder of the agreement to do any of the following:

(a) dispose of the road permit, in accordance with section 54, to the intended recipient of the agreement;

(b) surrender the road permit or rights under the road permit;

(c) if the holder will continue to hold the road permit after the disposition of the agreement, provide security to the minister for the performance of the holder's obligations under the road permit, this Act, the Forest and Range Practices Act and the Wildfire Act.

Mandatory refusal of dispositions

54.02   (1) In considering whether to approve a disposition under section 54 (2) (a), the minister must consider the effect of the disposition on

(a) the marketing of fibre in British Columbia, and

(b) the public interest.

(2) Subsection (3) applies if, in considering the matters under subsection (1), the minister considers that any of the following applies:

(a) in the case of a disposition of a tree farm licence, forest licence or pulpwood agreement, the disposition would result in one or more of the following persons, on an individual or aggregate basis, holding or otherwise controlling rights to harvest Crown timber in an amount that is detrimental to competition in the marketing of fibre in all or part of British Columbia:

(i) the intended recipient of the agreement;

(ii) a related person of the intended recipient;

(b) in any case, it would not be in the public interest for the intended recipient to acquire the agreement under the disposition or to hold the rights under the agreement.

(3) In the circumstances referred to in subsection (2), the minister

(a) must not approve the disposition, or

(b) may approve the disposition only if the minister attaches conditions to the approval that will address, to the satisfaction of the minister, the applicable circumstances under subsection (2).

(4) Nothing in this section is intended to limit the authority of the minister to refuse approval of a disposition under section 54 (2) (a).

Repealed

54.1   [Repealed 2019-31-8.]

Confirmation of completion of disposition and effect of completion

54.2   (1) On completing a disposition of an agreement, 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 completing a disposition of an agreement, the person who acquired the agreement under the disposition becomes the holder of the agreement for the purposes of this Act.

Dispositions exempt from certain requirements

54.3   (1) In this section, "security interest" means an interest, in an agreement, that secures payment or performance of an obligation.

(2) Sections 54 (2) and 54.2 do not apply to the following dispositions:

(a) the granting, in good faith, of a security interest in an agreement;

(b) the transmission of an interest in an agreement

(i) to a trustee in bankruptcy of the holder of the agreement, or

(ii) from the estate of a deceased holder of an agreement to the deceased holder's personal representative.

(3) Within 3 months after a disposition referred to in subsection (2) (b), the trustee or personal representative referred to in that subsection must provide to the minister written notice of the disposition.

(4) For certainty, subsection (2) (a) does not include a disposition resulting from the enforcement of a security interest.

Transfer of certain agreements not permitted

54.4   (0.1) In this section, "restricted forest licence" has 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) a non-replaceable forest licence entered into under section 13.1 (4) or (4.2);

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

(ii) a community forest agreement;

(iii) a first nations woodland licence,

(iv) [Repealed 2021-38-30.]

(c) [Repealed 2021-37-7.]

(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 under section 76 or 78.

(1.3) A disposition approved by the Lieutenant Governor in Council under subsection (1) (b) or (1.01) must be completed within the longer of the following periods after approval is given:

(a) the period specified by the Lieutenant Governor in Council in giving the approval;

(b) if authorized by Lieutenant Governor in Council in giving the approval, a period specified by the minister.

(1.4) The conditions under section 54 (2) (a) and (f) do not apply to a disposition approved by the Lieutenant Governor in Council under subsection (1) (b) or (1.01) of this section.

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

Repealed

54.5   [Repealed 2019-31-12.]

Effect of disposition on obligations

54.6   (0.1) In this section, "outstanding liability", in relation to an agreement, means a liability referred to in subsection (1)

(a) accrued or accruing as of the date on which a disposition of the agreement is completed, and

(b) still outstanding as of that date.

(1) Subject to subsection (1.1), on completing a disposition of an agreement, 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, 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.

(1.1) Subsection (1) does not apply to a person who acquires an agreement under a disposition referred to in section 54.3 (2).

(2) The following persons, as applicable, continue to be liable, jointly and severally with the person referred to in subsection (1) who acquires an agreement under a disposition, for all outstanding liabilities in relation to the agreement:

(a) the person who disposed of the agreement, other than a trustee in bankruptcy or a personal representative referred to in section 54.3 (2) (b);

(b) a person who held the agreement, if the agreement was disposed of

(i) by the trustee in bankruptcy, referred to in section 54.3 (2) (b) (i), of the person, or

(ii) by the personal representative, referred to in section 54.3 (2) (b) (ii), of the person.

Suspension of rights if condition of disposition not met

54.61   (1) The minister may suspend rights under an agreement under section 76 (1), or under a BC timber sales agreement under section 78.1 (1), if any of the following apply:

(a) the holder purports to dispose of the agreement when a condition set out in section 54 (2) is not met;

(b) the holder purports to dispose of the agreement contrary to section 54.4;

(c) a condition attached under section 54.01 or 54.4 (1.1) to an approval of a disposition of the agreement is not met.

(1.1) The minister may suspend rights under a road permit under section 76 (1) if a condition relating to the road permit attached under section 54.01 (4) to an approval of a disposition of an agreement is not met.

(2) A timber sales manager may take action under section 78 (1) in relation to a BC timber sales agreement if satisfied that any of the circumstances set out in subsection (1) of this section applies to the agreement.

Division 2.1 — Corporate Changes of Control and Amalgamations

Interpretation

54.62   (1) For the purposes of this Division, control of a corporation that holds an agreement changes if, as a result of an amalgamation or one or more transactions,

(a) control of the corporation changes or is acquired or disposed of, or

(b) control of a holding corporation, whose subsidiary is the corporation, changes or is acquired or disposed of.

(2) For the purposes of this Division, a corporation that holds an agreement amalgamates with another corporation that holds an agreement if the corporation, or a holding corporation whose subsidiary is the corporation, amalgamates with

(a) another corporation that holds an agreement, or

(b) a holding corporation whose subsidiary is a corporation that holds an agreement.

Notice of change of control or amalgamation

54.63   A corporation that holds an agreement must give written notice to the minister of the following events within 30 days after each event:

(a) a change of control of the corporation;

(b) an amalgamation of the corporation with another corporation that holds an agreement.

Review of change of control or amalgamation

54.64   (1) On receiving notice under section 54.63, the minister must

(a) review the change of control or amalgamation, as applicable, and

(b) consider the effects of the change of control or amalgamation, as applicable, on

(i) the marketing of fibre in British Columbia, and

(ii) the public interest.

(2) On the request of the minister for the purposes of a review under subsection (1) (a), the corporation must provide to the minister

(a) prescribed information, and

(b) any other information the minister considers necessary.

Circumstances in which minister may take administrative action

54.65   The minister may take action under section 54.66 against a corporation that holds an agreement if

(a) control of the corporation changes, or the corporation amalgamates with another corporation that holds an agreement, and

(b) any of the following apply:

(i) immediately after the change of control or amalgamation, all money

(A) required to be paid by the corporation 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 a change of control or amalgamation of a corporation that holds a BC timber sales agreement, the change of control or amalgamation results in the corporation no longer being registered

(A) as a BC timber sales enterprise, or

(B) if applicable, in a category of BC timber sales enterprises that, under section 20 (2) (b) (i), was eligible to apply for the agreement;

(iii) in the case of a change of control or amalgamation of a corporation that holds a first nations woodland licence, the change of control or amalgamation results in the corporation being a person or entity that, under section 43.54, is not permitted to enter into a first nations woodland licence;

(iv) in the case of a change of control or amalgamation of a corporation that holds a woodlot licence, the change of control or amalgamation results in the corporation being a person who, under section 44, is not permitted to enter into a woodlot licence;

(v) in the case of a change of control or amalgamation of a corporation that holds a tree farm licence, forest licence or pulpwood agreement, the minister considers that the change of control or amalgamation results in one or more of the following persons, on an individual or aggregate basis, holding or otherwise controlling rights to harvest Crown timber in an amount that is detrimental to competition in the marketing of fibre in all or part of British Columbia:

(A) the corporation;

(B) a related person of the corporation;

(vi) the minister considers that, as a result of the change of control or amalgamation, it is not in the public interest for the corporation to continue to hold the agreement or to exercise the rights under the agreement.

Administrative actions following change of control or amalgamation

54.66   (1) In the circumstances referred to in section 54.65, the minister may

(a) without notice, immediately suspend rights under one or both of the following:

(i) the applicable agreement referred to in section 54.65 (b);

(ii) if applicable, a cutting permit issued for the agreement, and

(b) after giving the corporation an opportunity to be heard, do one or more of the following:

(i) confirm or vary a suspension under paragraph (a) of this subsection;

(i.1) suspend rights under the agreement, a cutting permit issued for the agreement or both;

(ii) subject to subsection (3) of this section, require the corporation to dispose of the agreement, in accordance with section 54 and by the date specified by the minister, to a person who is at arm's length from the corporation and from the related persons of the corporation, if any;

(iii) accept a proposal made by the corporation under section 54.67;

(iv) impose other requirements on the corporation.

(2) The minister must reinstate any rights suspended under subsection (1) (a) if the minister does not confirm or vary the suspension after providing an opportunity to be heard under subsection (1) (b).

(3) The minister may not impose a requirement under subsection (1) (b) (ii) if the minister accepts a proposal under subsection (1) (b) (iii).

Proposal by corporation following administrative action

54.67   (1) In this section, "specified agreement" means a specific agreement held by one or both of the following:

(a) a corporation that has been given an opportunity to be heard under section 54.66 (1);

(b) a related person of the corporation.

(2) For the purposes of addressing a circumstance under section 54.65 (b), a corporation that has been given an opportunity to be heard under section 54.66 (1) may propose to the minister that one or more specified agreements be disposed of.

(3) If the minister accepts a proposal under subsection (2), it is a condition of the minister's acceptance that each specified agreement be disposed of

(a) in accordance with section 54 to a person who is at arm's length from the corporation and from the related persons of the corporation, if any, and

(b) by a date specified by the minister.

(4) The minister must accept a proposal made under subsection (2) if

(a) the minister intends to impose a requirement under section 54.66 (1) (b) (ii) to address circumstances under section 54.65 (b), and

(b) the proposed disposition will address, to the satisfaction of the minister, those circumstances.

Exempt changes of control

54.68   (1) Sections 54.63 to 54.67 do not apply to a change of control of a corporation that is caused by a transmission of shares in its capital

(a) to a trustee in bankruptcy of the holder of the shares, or

(b) from the estate of a deceased person to the deceased person's personal representative.

(2) Within 3 months after a change of control referred to in subsection (1), the corporation must provide to the minister written notice of the change of control.

Subsequent suspension or cancellation of rights

54.69   (1) The minister may suspend rights under an agreement under section 76 (1), or under a BC timber sales agreement under section 78.1 (1), if any of the following apply:

(a) the holder did not dispose of the agreement as required under section 54.66 (1) (b) (ii);

(b) a proposal of the holder was accepted under section 54.66 (1) (b) (iii) by the minister and a condition of the minister's acceptance set out in section 54.67 (3) was not met;

(c) the holder failed to comply with a requirement imposed under section 54.66 (1) (b) (iv).

(2) The minister may cancel an agreement, other than a BC timber sales agreement, under section 77 (1) if

(a) rights under the agreement were suspended, or a suspension of rights under the agreement was confirmed or varied, under section 54.66 (1) (b) (i),

(b) the suspension remains in effect, and

(c) any of the circumstances set out in subsection (1) of this section applies to the agreement.

(3) A timber sales manager may take action under section 78 (1) in relation to a BC timber sales agreement if satisfied that any of the circumstances set out in subsection (1) of this section applies to the agreement.

Division 2.2 — Dispositions of Private Lands Subject to Agreements and Exchanges of Rights

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.

(6) This section does not apply to a disposition of private land, or an interest in private land, that is subject to a tree farm licence or woodlot licence if

(a) the licence is disposed of in accordance with section 54, and

(b) the private land or interest in private land, as applicable, is disposed of to the person who acquired the licence under the disposition referred to in paragraph (a) of this subsection.

Repealed

54.8   (1) [Repealed 2019-31-18.]

(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 and Reductions

Repealed

58   [Repealed 2021-38-32.]

Extension of timber sale licences and cutting permits

58.1   (1) The holder of a timber sale licence may apply in writing to the timber sales manager for an extension of the term of the licence for a period that

(a) does not exceed one year, and

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

(2) [Repealed 2023-43-47.]

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

(a) the timber sale licence does not prohibit the extension,

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

(c) the holder of the timber sale licence pays 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 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:

[(the bonus bid) + (the upset stumpage rate)] × the volume or estimated volume of timber, as
applicable, that was advertised in the invitation
for applications for the licence

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:

[the bonus offer] + (the upset stumpage rate) × (the volume or estimated volume of timber, as
applicable, that was advertised in the invitation
for applications for the licence)

(c) [Repealed 2023-43-47.]

(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:

the volume of timber harvested under the licence
on or before the date of application as
determined by the timber sales manager

 × 100
the volume or estimated volume of timber,
as applicable, that was advertised in the
invitation for applications for the licence

(6) At the request of the holder of a timber sale licence who has submitted an application for an extension under subsection (1), the timber sales manager may waive the fee referred to in subsection (3) (c) if the timber sales manager 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) [Repealed 2023-43-47.]

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

(8) The timber sales manager may reject an application to extend the term of a timber sale licence if, in the opinion of the timber sales manager, the extension would prevent the fulfillment of an obligation under the Forest and Range Practices Act.

(9) [Repealed 2023-43-47.]

Repealed

58.2   [Repealed 2021-37-9.]

Repealed

58.201-
58.21
 
[Repealed 2023-43-48.]

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.

Repealed

59-59.1   [Repealed 2023-43-49.]

Repealed

60-60.95   [Repealed 2021-38-34.]

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.

Definitions for sections 63 to 63.05

62.1   In this section and in sections 63 to 63.05:

"base-level allowable annual cut" means the allowable annual cut prescribed as the base-level allowable annual cut for ungrouped licences and groups of licences;

"combined allowable annual cut", in relation to a group of licences, means the combined total of the allowable annual cuts authorized for each licence in the group of licences;

"combined allowable annual cut reduction", in relation to a group of licences, means the share of a timber supply area reduction that applies to the group of licences, as determined under section 63.02 and, if applicable, section 63.03;

"group of licences" means 2 or more licences that are in a group of licences, as determined under section 63.01;

"licence" means a forest licence;

"timber supply area reduction", in relation to a timber supply area, means the amount of reduction in the allowable annual cut for the timber supply area that is to be distributed among the licences in that timber supply area, as determined under section 63 (2) (a);

"ungrouped licence" means a licence that is not in a group of licences.

Reduction among licences in timber supply area

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 may reduce the allowable annual cuts of the licences in the timber supply area.

(2) To reduce the allowable annual cuts of the licences referred to in subsection (1), the minister must do the following:

(a) determine how much of the reduction in the allowable annual cut determined for the timber supply area is to be distributed among the licences;

(b) determine under section 63.01

(i) which licences are in a group of licences, and

(ii) which licences are ungrouped licences;

(c) distribute the timber supply area reduction among the groups of licences and ungrouped licences by using the methods set out in section 63.02 and, if applicable, section 63.03;

(d) if the combined allowable annual cut of a group of licences is reduced as a result of the distribution under paragraph (c), distribute that combined allowable annual cut reduction among those licences by using the methods set out in section 63.04 and, if applicable, section 63.05.

(3) A reduction under subsection (2) to the allowable annual cut of a licence takes effect when notice of the reduction is served on the holder of the licence.

(4) When a reduction to the allowable annual cut of a licence takes effect, the licence is deemed to be amended to reflect the reduction.

Determining groups of licences

63.01   (1) For the purposes of section 63 (2) (b), the minister may determine that 2 or more licences are in a group of licences if either of the following applies:

(a) each of the licences is singly held by the same person;

(b) each of the licences is held, singly or jointly, only by persons who are related persons in respect of each other.

(2) If the minister determines under subsection (1) that a licence is in a group of licences, notice of the determination must be served on the holder of the licence.

(3) Within 30 days after the holder of a licence has been served notice under subsection (2), the holder may request the minister to reconsider the determination made under subsection (1) on the grounds that the determination is inaccurate with respect to the licence.

(4) A request under subsection (3) must include a statement setting out why the holder considers that the determination is inaccurate with respect to the holder's licence.

(5) If the minister receives a request under subsection (3), the minister must, before distributions are made under sections 63.02 to 63.05,

(a) confirm or reverse the determination, and

(b) give to the holder written reasons for the confirmation or reversal made under paragraph (a) of this subsection.

Distributing timber supply area reductions among groups of licences and ungrouped licences

63.02   (1) To distribute a timber supply area reduction under section 63 (2) (c), the minister must do the following with respect to the groups of licences and ungrouped licences in the timber supply area, other than the groups of licences and ungrouped licences referred to in subsection (2) of this section:

(a) determine the share of the reduction that applies to each group of licences and each ungrouped licence by using the following formula:

share = TSA reduction ×AAC

Total AAC

where

TSA reduction=the timber supply area reduction;
AAC=the combined allowable annual cut of the group of licences or the allowable annual cut of the ungrouped licence, as applicable;
Total AAC=the sum of the following:
(i)the total of all combined allowable annual cuts of the groups of licences;
(ii)the total of all allowable annual cuts of the ungrouped licences;

(b) reduce the combined allowable annual cut of each group of licences by the share of the reduction determined for that group under paragraph (a);

(c) reduce the allowable annual cut of each ungrouped licence by the share of the reduction determined for that ungrouped licence under paragraph (a);

(d) if, after being reduced under paragraph (b), the combined allowable annual cut of a group of licences is less than the base-level allowable annual cut, adjust the combined allowable annual cut so that it equals the base-level allowable annual cut;

(e) if, after being reduced under paragraph (c), the allowable annual cut of an ungrouped licence is less than the base-level allowable annual cut, adjust the allowable annual cut so that it equals the base-level allowable annual cut;

(f) if an adjustment is made to a combined allowable annual cut under paragraph (d) or to an allowable annual cut under paragraph (e), do the following:

(i) determine the remaining part of the timber supply area reduction that is left to be distributed by adding the amounts of the adjustments that were made to combined allowable annual cuts and allowable annual cuts under paragraphs (d) and (e);

(ii) determine which of the groups of licences still have a combined allowable annual cut that is greater than the base-level allowable annual cut;

(iii) determine which of the ungrouped licences still have an allowable annual cut that is greater than the base-level allowable annual cut;

(iv) repeat the steps in paragraphs (a) to (e) but apply them with respect to

(A) the remaining part of the timber supply area reduction determined under subparagraph (i) of this paragraph, and

(B) the groups of licences and ungrouped licences referred to in subparagraphs (ii) and (iii) of this paragraph, as reduced under paragraph (b) or (c), as applicable;

(g) repeat the steps in paragraph (f) as necessary until one of the following occurs:

(i) the timber supply area reduction is fully distributed among the groups of licences and ungrouped licences;

(ii) each group of licences has a combined allowable annual cut, and each ungrouped licence has an allowable annual cut, that is equal to the base-level allowable annual cut.

(2) The following are excluded from a distribution under subsection (1):

(a) each group of licences in the timber supply area that has a combined allowable annual cut that is less than the base-level allowable annual cut;

(b) each ungrouped licence in the timber supply area that has an allowable annual cut that is less than the base-level allowable annual cut;

(c) each licence that is a prescribed licence or is in a prescribed class of licence.

Distributing remaining part of timber supply area reduction among groups of licences and ungrouped licences

63.03   (1) In this section, "remaining part", in respect of a timber supply area reduction, means the part of the timber supply area reduction, if any, that is not fully distributed after using the method set out in section 63.02.

(2) This section applies if the minister's use of the distribution methods under section 63.02 (1) results in the outcome referred to in paragraph (g) (ii) of that provision.

(3) In the circumstances referred to in subsection (2), the minister must distribute the remaining part of the timber supply area reduction among all the groups of licences and ungrouped licences in the timber supply area, including the groups of licences and ungrouped licences referred to in section 63.02 (2) (a) and (b) but not including the licences referred to in section 63.02 (2) (c), by doing the following:

(a) determining the share of the remaining part that applies to each group of licences and each ungrouped licence by using the following formula:

share = remaining part ×AAC

Total AAC

where

remaining part=the remaining part;
AAC=the combined allowable annual cut of the group of licences or the allowable annual cut of the ungrouped licence, as applicable, after reductions are made under section 63.02;
Total AAC=the sum of the following:
(i)the total of all combined allowable annual cuts of the groups of licences after reductions are made under section 63.02;
(ii)the total of all allowable annual cuts of the ungrouped licences after reductions are made under section 63.02;

(b) reducing the combined allowable annual cut of each group of licences by the share of the remaining part determined for that group of licences under paragraph (a);

(c) reducing the allowable annual cut of each ungrouped licence by the share of the remaining part determined for that ungrouped licence under paragraph (a).

Distributing combined allowable annual cut reductions among licences in groups of licences

63.04   (1) To carry out the distribution of a combined allowable annual cut reduction under section 63 (2) (d), the minister must do the following with respect to the licences in the group of licences, other than the licences referred to in subsection (2) of this section:

(a) determine the share of the combined allowable annual cut reduction that applies to each licence by using the following formula:

share = reduction ×AAC

Total AAC

where

reduction=the combined allowable annual cut reduction;
AAC=the allowable annual cut of the licence;
Total AAC=the total of all the allowable annual cuts of the licences, not including the total of all the allowable annual cuts of the licences referred to in subsection (2);

(b) reduce the allowable annual cut of each licence by the share of the reduction determined for that licence under paragraph (a);

(c) if, after being reduced under paragraph (b), the allowable annual cut of a licence is less than the base-level allowable annual cut, adjust the allowable annual cut so that it equals the base-level allowable annual cut;

(d) if an adjustment is made to an allowable annual cut under paragraph (c), do the following:

(i) determine the remaining part of the combined allowable annual cut reduction that is left to be distributed by adding the amounts of the adjustments that were made to allowable annual cuts under paragraph (c);

(ii) determine which of the licences still have an allowable annual cut that is greater than the base-level allowable annual cut;

(iii) repeat the steps in paragraphs (a) to (c) but apply them with respect to

(A) the remaining part of the combined allowable annual cut reduction determined under subparagraph (i) of this paragraph, and

(B) the licences referred to in subparagraph (ii) of this paragraph, as reduced under paragraph (b);

(e) repeat the steps in paragraph (d) as necessary until one of the following occurs:

(i) the combined allowable annual cut reduction is fully distributed among the licences;

(ii) each licence has an allowable annual cut that is equal to the base-level allowable annual cut.

(2) A licence is excluded from a distribution under subsection (1) if the licence has an allowable annual cut that is less than the base-level allowable annual cut.

Distributing remaining part of combined allowable annual cut reduction among licences in groups of licences

63.05   (1) In this section, "remaining part", in respect of a combined allowable annual cut reduction, means the part of the combined allowable annual cut reduction, if any, that is not fully distributed after using the method set out in section 63.04.

(2) This section applies if the minister's use of the distribution methods under section 63.04 (1) results in the outcome referred to in paragraph (e) (ii) of that provision.

(3) In the circumstances referred to in subsection (2), the minister must distribute the remaining part of the combined allowable annual cut reduction among all the licences in the group of licences, including the licences referred to in section 63.04 (2), by doing the following:

(a) determining the share of the remaining part that applies to each licence by using the following formula:

share = remaining part ×AAC

Total AAC

where

remaining part=the remaining part;
AAC=the allowable annual cut of the licence after reductions are made under section 63.04;
Total AAC=the total of all allowable annual cuts of the licences after reductions are made under section 63.04

(b) reducing the allowable annual cut of each licence by the share of the remaining part determined for that licence under paragraph (a).

Repealed

63.1   [Repealed 2023-43-49.]

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 for 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 for 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 timber licence or area-based 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

75.21   (1) [Repealed 2021-38-40.]

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

(3) If the volume of timber harvested under a forestry licence to cut exceeds the limit specified in subsection (2), the holder of the forestry licence to cut 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 forestry licence to cut 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   The minister may grant to the holder of a licence full or partial relief from the penalty under section 75.2 or 75.91 in any of the following circumstances:

(a) timber is deemed, under section 119.2 (2), to be harvested under the licence during the cut control period to which the penalty relates;

(b) in the case of a timber sale licence that specifies an allowable annual cut, or in the case of a forest licence or woodlot licence, the allowable annual cut authorized for the licence is reduced under section 8, 9, 61, 63, 173, 185, 202 or 273 or Part 18;

(c) in the case of a tree farm licence, the allowable annual cut available to the holder of the licence is reduced under section 8, 9, 61, 63, 173, 185, 202 or 273 or Part 18.

Repealed

75.93-
75.96
 
[Repealed 2023-43-52.]

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 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), 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 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) [Repealed 2021-38-42.]

(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 rights under a replaceable major licence or a replaceable woodlot licence if

(a) the holder is subject to a requirement under the Forest and Range Practices Act, in respect of a non-replaceable major licence or non-replaceable woodlot licence, to establish a free growing stand, and

(b) the holder has failed to comply with the requirement referred to in paragraph (a).

(2.1) If the minister is authorized under subsection (1), (1.1) or (2) to suspend rights under an agreement for which a cutting permit has been issued, the minister may suspend rights under the agreement, the cutting permit or both.

(2.2) If the minister is authorized under subsection (1) to suspend rights under an agreement that is a cutting permit, the minister may suspend rights under the cutting permit, the agreement for which the cutting permit was issued or both.

(3) to (6) [Repealed 2023-43-56.]

Notice and duration of suspension

76.1   (1) Before rights under an agreement are suspended under section 76, the minister must serve on the holder of the agreement a notice of suspension that specifies

(a) the reason for the suspension, and

(b) the date on which the suspension takes effect, which must be at least 5 days after the date of service of the notice.

(2) If rights under an agreement held by a first nation or its representative are suspended under section 76 (1.1), the notice of suspension must include the particulars of the first nation's non-compliance with the agreement between the government and the first nation respecting treaty-related measures, interim measures or economic measures.

(3) A suspension of rights takes effect on the date specified in the notice of suspension and continues until

(a) the rights are reinstated by the minister, or

(b) the agreement is cancelled under this Act.

(4) The minister, on request of the holder of an agreement who has been served with a notice of suspension under this section, must allow the holder an opportunity to be heard and may, after hearing the holder, rescind the notice.

(5) If rights under an agreement have been suspended under section 76 on the grounds that the holder

(a) did not perform an obligation referred to in section 76 (1) (c),

(b) failed to comply with a requirement referred to in section 76 (1) (d), or

(c) contravened a condition referred to in section 76 (1.1),

the minister must, on application by the holder, reinstate the suspended rights if the minister is satisfied that the holder is performing the obligation or complying with the requirement or condition, as applicable.

(6) If rights under a cutting permit are reinstated under subsection (5), the period remaining on the term of the cutting permit, as at the date of the reinstatement and despite the terms and conditions of the cutting permit, is equal to the shorter of the following:

(a) the period remaining on the term of the agreement for which the cutting permit was issued;

(b) the period that remained on the term of the cutting permit on the date on which the suspension took effect.

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

(a) the agreement, and

(b) a road use permit issued to the holder of the agreement, if the road use permit is associated with 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.

(6) If the minister cancels a road permit under subsection (1), the minister may specify the date by which a road authorized under the permit must be deactivated.

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 rights under 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 rights under 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 that has been issued to the holder of the agreement and that is associated with the agreement.

Continuing liability

79   (1) Despite the expiry, surrender or cancellation of a holder's agreement, or the suspension of rights under the agreement, the holder is liable to perform all of the following obligations, to the extent that the obligations were incurred before the expiry, surrender, cancellation or suspension:

(a) obligations to pay the following:

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

(ii) any other money required under this Act to be paid to the government in respect of the agreement;

(b) other obligations of the holder

(i) under the agreement, or

(ii) with respect to the agreement, under this Act, the Forest and Range Practices Act, the Forest Practices Code of British Columbia Act or the Wildfire Act.

(1.1) Subject to subsection (1.2), for the purposes of performing obligations referred to in subsection (1) (b), 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 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), (2) and (10); 9 (3) and (4); 27 (a); 63, 63.2, 68 to 70 and 72 to 74;

(b) the following provisions of the Forest Act, R.S.B.C. 1996, c. 157, before their repeal: sections 63.1; 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 or 75.11, 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).

(5) 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 following:

(a) a decision of the minister under Part 3.1 to

(i) refuse to issue a cutting permit, or

(ii) include a term or condition in a cutting permit;

(b) a decision of the minister under Part 8 to

(i) refuse to issue a road permit, or

(ii) include a term or condition in a road permit.

Repealed

80.01   [Repealed 2021-38-44.]

Repealed

80.1   [Repealed 2023-43-65.]

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 5Refusal to Issue Authorizations

Grounds for refusing to issue authorization

81   (1) In this section:

"Acts" means this Act, the Forest and Range Practices Act, the Forest Practices Code of British Columbia Act and the Wildfire Act;

"applicant" means a person, first nation or other entity who seeks a specified authorization;

"refuse to issue", in relation to a specified authorization, includes the following:

(a) to refuse or decline to approve an application for the specified authorization;

(b) to refuse to enter into, grant or give the specified authorization;

"replacement agreement" means an agreement, entered into under section 15 (6), 36 (6), 43.4 (9), 43.56 (5) or 46 (7), that is a replacement for another agreement;

"specified authorization" means

(a) an agreement listed in section 12, other than the following agreements:

(i) a replacement agreement;

(ii) a cutting permit,

(b) a fibre recovery permit referred to in section 47.72 (1) (c),

(c) a road use permit, other than a road use permit that the minister is required to issue under section 120.1 (2),

(d) a log salvage permit referred to in section 124,

(e) an exemption, under section 128, from section 127, and

(f) a special use permit.

(2) An application under this Act for a specified authorization may be refused, and a person who has discretion under this Act or the Forest Practices Code of British Columbia Act to refuse to issue a specified authorization may do so, on one or more of the following grounds:

(a) the applicant, or a related person of the applicant, has failed to pay by the due date money that is required to be paid to the government in a circumstance set out in section 130 (1.1) of this Act, regardless of whether, at the time the specified authorization is sought,

(i) the money has been paid, or

(ii) payment arrangements satisfactory to the revenue minister have been made;

(b) the applicant is not in compliance with, or has failed in the past to comply with, a requirement under this Act or the Forest and Range Practices Act to provide security or a deposit;

(c) the applicant holds another specified authorization or a replacement agreement and

(i) rights under the other specified authorization or replacement agreement, or a cutting permit issued for it, are under suspension, or

(ii) the applicant is not in compliance with, or has failed in the past to comply with,

(A) a requirement under the other specified authorization or replacement agreement, or a cutting permit issued for it, or

(B) a requirement under the Acts in respect of activities carried out under the other specified authorization or replacement agreement.

(3) The minister may refuse to issue a cutting permit for an agreement on one or more of the following grounds:

(a) the applicant, or a related person of the applicant, has not yet paid money required to be paid to the government in a circumstance set out in section 130 (1.1) of this Act and the due date for paying the money has passed, regardless of whether payment arrangements satisfactory to the revenue minister have been made;

(b) the applicant is not in compliance with a requirement under this Act or the Forest and Range Practices Act to provide security or a deposit;

(c) rights under a cutting permit previously issued for the agreement are under suspension;

(d) the applicant is not in compliance with

(i) a requirement under the agreement or a cutting permit previously issued for the agreement,

(ii) a requirement under a road permit or road use permit associated with the agreement, or

(iii) a requirement under the Acts in respect of activities carried out under a permit referred to in subparagraph (i) or (ii).

(4) Nothing in this section limits a person's discretion under this Act, on grounds other than those set out in this section, to refuse to issue a specified authorization or a cutting permit.

Repealed

81.1   [Repealed 2023-43-68.]

Contents | Part 1 | Part 2 | Part 3 | Part 3.1 | Part 4 | Part 5 | Part 6 | Part 6.1 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 11.1 | Part 12 | Part 13 | Part 14 | Part 15 | Part 16 | Part 17 | Part 18 | Part 19