Amount of stumpage

103   (1) Subject to sections 107, 108 and 142.7, if stumpage under section 104 or under an agreement entered into under this Act is payable to the government in respect of Crown timber, the amount payable must be calculated by multiplying the volume or quantity of the timber

(a) reported in a scale made under Part 6, or

(b) calculated using the information required to be submitted to the government under section 106 (2)

by the sum of

(c) the rate of stumpage applicable to the timber under section 105, and

(d) if applicable, the bonus bid offered in respect of the timber.

(2) Nothing in subsection (1) limits a requirement under this Act, or under an agreement entered into under this Act, to pay a bonus offer.

(3) Despite sections 107 and 108 but subject to section 142.7, a person who cuts, damages, destroys or removes Crown timber without authorization must pay, in addition to all other amounts payable under this Act or another enactment, stumpage calculated by multiplying the volume or quantity of the timber that was cut, damaged, destroyed or removed without authorization, as determined by an official designated by the minister, by the sum of

(a) the rate of stumpage that an employee of the ministry referred to in section 105 (1) determines would likely have applied to the timber under that section if rights to the timber had been granted under an agreement entered into under this Act, and

(b) if applicable, the bonus bid that an employee of the ministry referred to in section 105 (1) determines would likely have been offered for the timber if rights to the timber had been granted under an agreement entered into under this Act.

Assessments for merchantable Crown timber that is not cut and removed

103.1   (1) If an agreement entered into under this Act specifies that waste assessments are payable to the government in respect of merchantable Crown timber that could have been cut and removed under the agreement, but, at the agreement holder's discretion, is not cut and removed, the amount payable must be calculated in accordance with the agreement.

(2) Subject to subsection (3), a requirement in an agreement entered into under this Act is without effect to the extent that it requires the holder of the agreement, on or after November 4, 2003, to cut and remove timber in accordance with the agreement.

(3) If an agreement referred to in subsection (2) requires its holder to pay an amount determined in accordance with the agreement for timber that is not cut and removed in accordance with the agreement, the holder must pay the amount required to be paid under the agreement.

(4) Despite subsections (1) to (3), the Lieutenant Governor in Council may make regulations specifying circumstances under which waste assessments are payable to the government in respect of merchantable Crown timber that could have been cut and removed under the agreement but, at the agreement holder's discretion, is not cut and removed.

(5) If a provision in an agreement entered into under this Act conflicts or is inconsistent with a regulation made under subsection (4), the regulation prevails.

Assessments for merchantable Crown timber
that is not cut under road permit and stored

103.2   If a road permit specifies that waste assessments are payable to the government in respect of merchantable Crown timber described in section 119.1 (3) (a) (i) or (ii) of this Act, the amount payable must be calculated in accordance with the road permit.

Stumpage rate for timber licence

104   (1) Despite any other Act, any election made under section 23 of the Forest Act, R.S.B.C. 1979, c. 140, before the repeal of that section, or any agreement, the holder of a timber licence must pay stumpage to the government at rates determined under section 105 for timber that is cut under the licence and scaled.

(2) Despite another Act or a grant of Crown land, no royalty is reserved or payable to the government in respect of timber cut from private land and scaled after January 1, 1979.

(3) Despite subsection (1), no stumpage is payable in respect of timber cut on land granted by Canada by letters patent and situated within the Railway Belt or Peace River Block.

Stumpage rate determined

105   (1) Subject to the regulations made under subsection (6) and orders under subsection (7), if stumpage is payable to the government under an agreement entered into under this Act or under section 103 (3), the rates of stumpage must be determined, redetermined and varied

(a) by an employee of the ministry, identified in the policies and procedures referred to in paragraph (c),

(b) at the times specified by the minister, and

(c) in accordance with the policies and procedures approved by the minister.

(1.1) For the purpose of taking into account differences in the obligations of the holders of agreements in respect of their agreements, Treasury Board may make regulations prescribing adjustments to be incorporated in the policies and procedures approved under subsection (1) (c).

(1.2) A regulation under subsection (1.1) may be different for different timber, places, transactions or holders of agreements entered into under this Act.

(2) Rates, policies and procedures under subsection (1) may be different for different timber, places, transactions or holders of agreements entered into under this Act, and the policies and procedures referred to in subsection (1) may, for stumpage paid or payable in respect of timber cut under a cutting authority issued after July 31, 2005, provide that the determination, redetermination or variation of a rate of stumpage is effective at any date, including, without limitation, at any date before or after

(a) the harvesting or scaling of the timber in respect of which the stumpage has been or is to be paid, or

(b) the payment of stumpage based on any earlier determined, redetermined or varied rate of stumpage.

(2.1) For the purposes of subsection (2), "cutting authority" has the same meaning as in the policies and procedures approved under subsection (1) (c).

(3) Despite subsection (1), but subject to the regulations made under subsection (6) and orders under subsection (7), the holder of a timber licence must pay stumpage to the government at a percentage of the rates determined under subsection (1).

(4) The percentage referred to in subsection (3) is

(a) 100% of the rates referred to as "miscellaneous stumpage rates", in policies and procedures approved from time to time by the minister under subsection (1), and

(b) for rates not referred to in paragraph (a), the percentage set out in column 2 opposite the time period in column 1 in which the stumpage rate is determined.

(5) Within 30 days after the minister approves the policies and procedures referred to in subsection (1) (c), they must be posted on a publicly accessible government website or published in any other manner that the minister considers will allow the public to have access to those policies and procedures.

(5.1) The policies and procedures referred to in subsection (1) (c) may require the holder of an agreement to submit information to the government as necessary or desirable for the determination, redetermination or variation of a stumpage rate.

(5.2) The holder of an agreement who is required, under the policies and procedures referred to in subsection (1) (c), to submit the information referred to in subsection (5.1) must comply with the requirement.

(6) A stumpage rate must not be lower than the prescribed minimum.

(7) If the Lieutenant Governor in Council considers it to be in the public interest, he or she may

(a) subject to subsection (6), order that stumpage rates applicable to all timber or a class of timber in an area of British Columbia or cut under an agreement are to be lower than the rates determined under subsection (1) for a period not exceeding one year, and

(b) attach conditions to an order made under paragraph (a).

(8) On the date that a condition attached to an order made under subsection (7) (a) is not complied with,

(a) the order is terminated, and

(b) the stumpage rate must be determined, redetermined or varied in the same manner as it was determined, redetermined or varied immediately before the order was made.

Complete and accurate information

105.1   (1) In this section:

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

"applicant" means a person who applies for an agreement.

(2) An applicant who is required under this Act to submit information to the government must ensure that, at the time the information is submitted, the information is complete and accurate.

(3) The holder of an agreement who is required under the agreement or this Act to submit information to the government

(a) for use in determining, redetermining or varying a stumpage rate, or

(b) for any other purpose under this Act,

must ensure that, at the time the information is submitted, the information is complete and accurate.

Redetermination of stumpage rate at direction of minister

105.2   (1) In this section, "policies and procedures" means the policies and procedures referred to in section 105 (1) (c).

(2) The minister may direct under this subsection that a stumpage rate be redetermined or varied under section 105 (1) if the minister is of the opinion that the stumpage rate was determined, redetermined or varied under that section based on information, submitted by or on behalf of the holder of an agreement, to which one or both of the following apply:

(a) at the time the information was submitted, the information was incomplete or inaccurate;

(b) at the time the information was submitted, the information did not meet the requirements of the policies and procedures.

(3) The minister may direct under this subsection that a stumpage rate be redetermined or varied under section 105 (1) if the minister is of the opinion that both of the following apply:

(a) after the stumpage rate was determined, redetermined or varied under section 105 (1), the minister became aware of information that

(i) existed but was not taken into account when the stumpage rate was determined, redetermined or varied, or

(ii) did not exist when the stumpage rate was determined, redetermined or varied;

(b) a redetermination or variation that takes into account the information described in paragraph (a) of this subsection is likely to result in a stumpage rate that is different from the earlier determined, redetermined or varied stumpage rate.

(4) A direction of the minister under this section may be made at any time,

(a) whether the earlier determined, redetermined or varied stumpage rate is still in effect or has expired, and

(b) whether before or after stumpage is paid in respect of the timber to which the stumpage rate relates.

(5) If the minister directs under this section that an earlier determined, redetermined or varied stumpage rate be redetermined or varied under section 105 (1),

(a) in the case of a direction issued under subsection (2) of this section, the redetermination or variation must take into account the information that is necessary to completely and accurately meet the requirements of the policies and procedures,

(b) in the case of a direction issued under subsection (3) of this section, the redetermination or variation must take into account the information described in paragraph (a) of that subsection, and

(c) the redetermination or variation must be made in accordance with the policies and procedures that were in effect at the time the earlier stumpage rate was determined, redetermined or varied.

(6) A stumpage rate that, at the direction of the minister under this section, is redetermined or varied under section 105 (1)

(a) is deemed to have taken effect on the day after the date on which the earlier determined, redetermined or varied stumpage rate took effect, or

(b) takes effect on the day after the intended effective date for the earlier determined, redetermined or varied stumpage rate, if that earlier rate is not in effect when the redetermination or variation is made.

Small scale salvage costs portion to be paid into special account

105.3   All revenue derived from the small scale salvage costs portion, if any, of a stumpage rate imposed in accordance with the policies and procedures referred to in section 105 (1) (c) must be paid into the Small Scale Salvage Sub-account of the Forest Stand Management Fund special account established by the Special Accounts Appropriation and Control Act.

Cruise instead of scale

106   (1) The amount of stumpage payable on Crown timber

(a) may, with the approval of the minister, or

(b) must, in the circumstances provided for in the policies and procedures referred to in section 105 (1) (c),

be calculated using the information provided by a cruise of the timber conducted before the timber is cut, instead of the volume reported in a scale of the timber made under Part 6.

(2) For the purposes of calculating the amount of stumpage payable using information provided by a cruise of the timber conducted before the timber is cut, the minister may require the holder of an agreement to submit the following information to the government:

(a) some or all of the information provided by the cruise of the timber;

(b) an estimate, in hectares, of the size of the area from which the timber is cut;

(c) any other information the minister considers necessary.

(3) The holder of an agreement who is required under subsection (2) to submit information to the government must submit the information in the manner and at the times required by the minister.

More than one rate

107   If the minister considers it appropriate and more than one stumpage rate applies to timber cut in a timber harvesting operation, a single rate of stumpage, calculated as the average of the rates that otherwise would be applicable and weighted according to the respective volumes of timber estimated by the minister to be subject to each rate, is payable on the timber.

Rate on unscaled or incorrectly scaled timber

108   Subject to section 142.7, if Crown timber on which royalty or stumpage is payable is

(a) processed,

(b) sold, or

(c) removed from British Columbia

without first being scaled correctly under Part 6, the amount of royalty or stumpage payable must be calculated by multiplying the minister's estimate of the volume or quantity of the timber by the rate of royalty or stumpage, as the case may be, that the minister considers would have applied if the timber had been scaled correctly under Part 6.

BC Timber Sales Account

109   (0.1) In this section, "BC Timber Sales official" means a person who

(a) is employed in the ministry of the minister, and

(b) is designated by the minister, by name or title, as a BC Timber Sales official.

(1) The Small Business Forest Enterprise Account is renamed as the BC Timber Sales Account and continued as a special account in the general fund of the consolidated revenue fund.

(2) The revenue due to the government under this Act, derived from the following sources, must be credited to the BC Timber Sales Account:

(a) fees and charges that BC timber sales enterprises are required to pay under this Act or a BC timber sales agreement;

(b) forest licences for which applications were restricted under section 13 (1.1), as it was immediately before its repeal;

(c) timber sale licences entered into under section 20;

(d) timber sale licences entered into under any of sections 21, 23 (1) (c), (d), (e) and (f), (2) and (3) and 24 (7) as they were immediately before their repeal;

(e) timber sale licences entered into under section 24 (2) as that provision was immediately before its repeal, that have an allowable annual cut of 10 000 m³ or less;

(f) forestry licences to cut entered into under sections 24.8, 24.9 and 47.6 (3);

(f.1) a road permit issued to the holder of a licence referred to in this subsection, if the road permit is associated with the licence;

(g) security for BC timber sales agreements realized under the regulations made under section 79 (1.4);

(h) deposits for BC timber sales agreements realized under a regulation made under section 151 (11) or (12);

(i) if the crediting is approved by Treasury Board, money derived from an expenditure made under subsection (3) (e);

(j) dispositions of property under subsection (5).

(2.1) Amounts, other than taxes, payable to the government under an agreement entered into under section 118 of the Forests and Range Practices Act must be credited to the BC Timber Sales Account if the agreement is entered into by a BC Timber Sales official who is authorized or designated, under that section, to enter into the agreement.

(2.2) Costs recovered from a ministry, including costs recovered from the ministry of the minister responsible for the administration of this Act, in relation to any of the following services must be credited to the BC Timber Sales Account if the services are provided to the ministry, on direction of the minister responsible for the administration of this Act, by or through a BC Timber Sales official:

(a) silviculture services;

(b) forest protection services;

(c) services respecting the classification or rehabilitation of forest resources;

(d) prescribed services.

(3) Subject to subsection (4), money in the BC Timber Sales Account may be expended

(a) to defray the costs of

(i) preparing or purchasing operational plans for agreements that yield revenue referred to in subsection (2), and

(ii) carrying out or purchasing assessments to formulate the plans,

(a.1) to defray the costs of consideration provided under BCTS disposition agreements referred to in section 22.2 and to defray any other costs associated with those agreements,

(a.2) to make payments as described in section 22.4 (2) and to defray any other costs associated with making those payments,

(b) to defray the costs that are necessary to meet the requirements of section 29 (2) of the Forest and Range Practices Act, and that are incidental to operations that yield BC timber sales revenue,

(c) to defray the costs of construction and maintenance of logging roads and bridges, protection of forests and administration and other forest management requirements that are incidental to operations that yield revenue referred to in subsection (2),

(d) to purchase, rent or lease a logging road or bridge for a purpose that is incidental to operations that yield revenue referred to in subsection (2),

(d.1) to defray the costs associated with agreements in relation to which subsection (2.1) applies,

(d.2) to defray the costs associated with the provision of services in relation to which subsection (2.2) applies,

(d.3) to defray the costs associated with dispositions of property under subsection (5), and

(e) if the expenditure is for a prescribed purpose and is approved by Treasury Board.

(4) After consultation with the minister, the Treasury Board may direct that the balance of the BC Timber Sales Account be reduced by an amount equal to any part of the balance not required for the purposes set out in subsection (3).

(5) The minister may dispose of any of the following property:

(a) any property of the government, other than logging roads, acquired with money derived from expenditures made under section 109 (3) (a), (b) or (c);

(b) bridges purchased by the government with money derived from expenditures made under section 109 (3) (d).

Repealed

110   [Repealed 2003-31-60.]

Annual rent

111   (1) The holder of a

(a) forest licence other than a supplemental forest licence, timber licence or area-based licence,

(a.1) cutting permit issued for a supplemental forest licence, or

(b) forestry licence to cut issued under a pulpwood agreement

must pay to the government, on or before a date specified by the minister, annual rent at the rates prescribed by the Lieutenant Governor in Council even if the licence, agreement or permit does not contain a provision to that effect.

(2) If a timber licence expires under Part 3, Division 5, and is replaced by a timber licence, annual rent that is paid and attributable to the unexpired portion of its term must be credited to the annual rent payable for the first year of the term of the timber licence.

(3) [Repealed 1999-10-16.]

(4) In prescribing the rates of annual rent, the Lieutenant Governor in Council may classify licences, agreements or permits granting rights to harvest Crown timber and set different rates for different

(a) classes of licences, agreements or permits, or

(b) forms of licences, agreements or permits.

(c) [Repealed 2010-12-36.]

Calculation of annual rent

112   (1) The annual rent payable for a tree farm licence must be calculated by adding

(a) the total annual rent payable for timber licences in the tree farm licence area, and

(b) the portion of the allowable annual cut available to the licence holder during the year to which the total annual rent pertains, that the chief forester determines is attributable to

(i) Crown land referred to in section 35 (1) (b), other than Crown land subject to a timber licence, and

(ii) land referred to in sections 37 (1) and 38,

multiplied by the annual rent rate prescribed by the Lieutenant Governor in Council for tree farm licences.

(2) The annual rent payable for a woodlot licence is the portion of the allowable annual cut authorized for the woodlot licence that the minister determines is attributable to land referred to in section 45 (1) (b) (ii), multiplied by the annual rent rate prescribed by the Lieutenant Governor in Council for woodlot licences.

(3) The annual rent payable for a community forest agreement is the portion of the allowable annual cut available to the holder of the agreement, during the year to which the total annual rent pertains, that the minister determines is attributable to the Crown land referred to in section 43.3 (1) (b), multiplied by the annual rent rate prescribed by the Lieutenant Governor in Council for community forest agreements.

(4) The annual rent payable for a first nations woodland licence is the portion of the allowable annual cut available to the holder of the licence, during the year to which the total annual rent pertains, that the minister determines is attributable to the Crown land referred to in section 43.55 (1) (b), multiplied by the annual rent rate prescribed by the Lieutenant Governor in Council for first nations woodland licences.

Annual rent for council

112.1   (1) If authorized by the regulations and in accordance with the regulations, the Lieutenant Governor in Council, in prescribing the rate of annual rent for a woodlot licence, under section 111 (1), may allocate a portion of that rate to represent money payable to the Woodlot Product Development Council by producers, under the Farming and Fishing Industries Development Act, in respect of a levy established by the council under that Act.

(2) The revenue from the portion of annual rent payable for woodlot licences that is attributable to the allocated portion of the rate of annual rent under subsection (1)

(a) must be paid out of the consolidated revenue fund to the Woodlot Product Development Council, and

(b) when so paid, is deemed to have been paid in satisfaction of the levy referred to in subsection (1).

Timber cruise

113   (1) If Crown timber is to be disposed of under this Act, the minister or timber sales manager may require that the person who requests the disposal of the timber provide, at the person's own expense, a cruise of the timber by a cruiser approved by the minister or timber sales manager.

(2) If a person, at the person's own expense, has provided a cruise of timber as required under subsection (1), but is not granted a licence or cutting permit in respect of the timber, the person who is granted a licence or cutting permit, as a condition of receiving it, must reimburse the costs of the cruise to the person who provided the cruise.