Definitions for Part 17

270   In this Part:

"AAC available for BCTS licences" has the same meaning as in section 198 [definitions for Division 4 of Part 15];

"established practices" has the same meaning as in section 226 [definitions for Part 16];

"net income" has the same meaning as in section 226;

"profile of timber" has the same meaning as in section 180 [definitions for Part 15];

"reduction authorization order" means an order referred to in section 271 [reduction authorization order];

"relevant harvest profile", in relation to the volume-based portion of a timber supply area, means

(a) the harvest profile specified under section 272 (1) (a) [impact of reduction authorization order on harvest profile], or

(b) if impacts to the harvest profile are specified under section 272 (1) (c), the impacted harvest profile specified under that section;

"volume-based portion" has the same meaning as in section 180.

Reduction authorization order

271   The Lieutenant Governor in Council may, by order, authorize the minister to reduce the allowable annual cuts of forest licences in a timber supply area, by an amount not exceeding the amount specified in the order, so that timber may be made available for one or both of the following purposes:

(a) entering into one or more forest licences with a first nation or its representative under section 47.3 (1) (a) [direct award of specified licences];

(b) entering into one or more BCTS licences.

Impact of reduction authorization order on harvest profile

272   (1) If a reduction authorization order is made in relation to a timber supply area, the chief forester must do all of the following:

(a) specify the harvest profile for the volume-based portion of the timber supply area by identifying the components of the profile of timber that the chief forester considers could be harvested to support the allowable annual cut for that volume-based portion as at the effective date of the reduction authorization order;

(b) specify the new harvest profile for the volume-based portion by identifying the components of the profile of timber that the chief forester considers could be harvested to support the allowable annual cut for the volume-based portion if the allowable annual cut for that volume-based portion were reduced by the maximum reduction amount authorized under the reduction authorization order;

(c) specify the harvest profile that will be impacted, if at all, as a result of the reduction referred to in paragraph (b) by identifying the differences between the harvest profile specified under paragraph (a) and the new harvest profile specified under paragraph (b).

(2) The matters set out in subsection (1) must be specified within 4 months after the effective date of the reduction authorization order.

(3) Within 30 days after the matters set out in subsection (1) are specified in relation to the volume-based portion of a timber supply area, the minister must serve notice of those matters on the holder of each forest licence in that volume-based portion.

(4) In the notice under subsection (3), the minister may specify a website maintained by or on behalf of the government where the holder may obtain the harvest profiles specified under subsection (1) (a), (b) and (c).

Reduction to forest licences following reduction authorization order

273   (1) If a reduction authorization order is made in relation to a timber supply area, the minister may, within 2 years after the effective date of the reduction authorization order, reduce the allowable annual cuts of the forest licences in the volume-based portion of the timber supply area.

(2) To make reductions under subsection (1) in relation to a reduction authorization order made for a first nation purpose referred to in section 271 (a) [reduction authorization order], the minister must do the following:

(a) apply a portion of the maximum reduction amount authorized under the reduction authorization order to the AAC available for BCTS licences in accordance with the formula set out in section 203 [reduction to AAC available for BCTS licences];

(b) distribute among the forest licences, in accordance with section 63 (2) [reduction among licences in timber supply area], an amount not exceeding the maximum reduction amount authorized under the reduction authorization order, less the portion of that amount that is applied to the AAC available for BCTS licences.

(3) To make reductions under subsection (1) in relation to a reduction authorization order made for a BCTS licence purpose referred to in section 271 (b), the minister must distribute among the forest licences, in accordance with section 63 (2), an amount not exceeding the maximum reduction amount authorized under the reduction authorization order.

(4) Section 63 (3) and (4) applies in relation to reductions made in accordance with subsections (2) (b) and (3) of this section.

(5) For the purposes of this section, section 63 (2) and the formula set out in section 203 are to be applied as if the allowable annual cut for the volume-based portion of the timber supply area had been reduced by the maximum reduction amount authorized under the reduction authorization order.

Compensation for forest licence following reduction

274   (1) The holder of a forest licence is entitled to compensation if the allowable annual cut of the forest licence is reduced under section 273 [reduction to forest licences following reduction authorization order].

(2) Subject to the adjustments under subsection (3), the compensation to which the holder of a forest licence is entitled under this section is an amount determined by the minister based on the net income that would be earned on the sale of harvested timber if, during each year of the remaining term of the licence,

(a) the volume of the harvested timber were equal to the amount by which the allowable annual cut of the licence is reduced under section 273,

(b) the timber were harvested from the relevant harvest profile, and

(c) the timber were harvested and sold in accordance with established practices.

(3) After determining the net income amount under subsection (2), the minister must

(a) adjust the compensation, in accordance with the regulations, to reflect the amount of income tax that would be payable, and

(b) make other adjustments that may be required by regulation.

(4) For the purposes of this section, the remaining term of a forest licence is the period between

(a) the date the allowable annual cut of the licence is reduced under section 273, and

(b) the expiry date of the term of the licence, as at the effective date of the reduction authorization order.

General provisions respecting compensation in relation to reduction authorization orders

275   (1) Division 7 [General Provisions in Relation to Compensation] of Part 16 [Compensation in Relation to Special Purpose Areas] applies for the purposes of this Part.

(2) In applying Division 7 of Part 16 for the purposes of this Part, section 264 [limit on compensation in relation to special purpose areas] is to be read as if the references to "the designation of an area as a special purpose area" were references to "a reduction authorization order".

Regulations under Part 17

276   (1) The Lieutenant Governor in Council may make regulations respecting compensation for the purposes of this Part.

(2) Without limiting subsection (1), the following provisions apply for the purposes of making regulations under this Part:

(a) section 265 [general regulation-making powers for Part 16];

(b) section 266 [regulations respecting determination of net income];

(c) section 267 [regulations respecting provision of information].