Definitions and interpretation

1   (1) In this regulation:

"Act" means the Maa-nulth First Nations Final Agreement Act;

"community forest agreement" includes a probationary community forest agreement referred to in section 43.41 (1) (b) of the Forest Act;

"effective date" means the date on which the Maa-nulth First Nations Final Agreement takes effect;

"extinguishment area", when used in relation to

(a) a tree farm licence area,

(b) a community forest agreement area,

(c) a woodlot licence area,

(d) a timber supply area, or

(e) an area described in a timber licence,

means the area within Maa-nulth First Nation Lands in respect of which rights are extinguished and agreements are cancelled under section 13.1 of the Act;

"forests minister" means the minister responsible for the administration of the Forest Act.

(2) If a word or expression used in this regulation is also used in the Forest Act, the word or expression has the same meaning as in the Forest Act, unless the context requires otherwise.

Land deletions

2   (1) If

(a) a tree farm licence area,

(b) a community forest agreement area,

(c) a woodlot licence area,

(d) a timber supply area, or

(e) an area described in a timber licence

includes lands within the extinguishment area, the lands are deleted from that tree farm licence area, community forest agreement area, woodlot licence area, timber supply area or area described in the timber licence.

(2) Each

(a) tree farm licence,

(b) community forest agreement,

(c) woodlot licence, and

(d) timber licence

affected by a deletion of lands under subsection (1), or by the extinguishment of rights or cancellation of agreements under section 13.1 of the Act, is deemed amended to reflect that deletion and those extinguishments or cancellations.

Allowable annual cut reductions

3   (1) Within 21 days after the effective date, the forests minister, by written order, must reduce

(a) the allowable annual cut available to the holder of each tree farm licence affected by a deletion of lands under section 2 (1) (a),

(b) the allowable annual cut for each community forest agreement affected by a deletion of lands under section 2 (1) (b), and

(c) the allowable annual cut for each woodlot licence affected by a deletion of lands under section 2 (1) (c).

(2) The allowable annual cut for each licence or agreement affected by an order under subsection (1) is deemed amended to reflect that order.

(3) Within 21 days after the effective date, the forests minister, by written order, may reduce the allowable annual cut for each forest licence affected by a deletion of lands under section 2 (1) (d).

(4) The allowable annual cut specified in a forest licence affected by an order under subsection (3) is deemed amended to reflect that order.

Deemed allowable annual cut reductions under Forest Act

4   An allowable annual cut reduction under section 3 is deemed to be an allowable annual cut reduction made under the Forest Act.

Notice of order

5   (1) Within 10 days after making an order under section 3, the forests minister must give a copy of the order to the holder of the licence or agreement affected by that order.

(2) For the purposes of subsection (1), "give a copy" means to give a copy in accordance with section 110 of the Forest and Range Practices Act.

Compensation for harvesting rights

6   (1) The holder of

(a) a tree farm licence,

(b) a community forest agreement, or

(c) a woodlot licence

is entitled to compensation in an amount equal to the value, for the unexpired portion of the term of the licence or agreement, of the harvesting rights under the licence or agreement that are taken by means of an allowable annual cut reduction under section 3 (1).

(2) The holder of a forest licence is entitled to compensation in an amount equal to the value, for the unexpired portion of the term of the licence, of the harvesting rights under the licence that are taken by means of an allowable annual cut reduction under section 3 (3).

(3) The holder of a timber licence is entitled to compensation in an amount equal to the value of the harvesting rights under the licence that are taken by means of a deletion of lands under section 2 (1) (e).

Compensation for improvements

7   The holder of a tree farm licence, community forest agreement, woodlot licence, forest licence or timber licence is entitled to compensation from the government in an amount equal to the value of an improvement if

(a) the improvement is located within Maa-nulth First Nation Lands and is attached to or forms part of those lands,

(b) the improvement was constructed or purchased by the holder of the licence or agreement, and

(c) in the case of an improvement purchased by the holder of the licence or agreement, the holder has provided evidence satisfactory to the forests minister of the purchase price paid for the improvement.

Commercial Arbitration Act applies

8   If the government and the holder of a licence or agreement do not agree on the amount of compensation payable under this regulation, the matter must be submitted for determination under the Commercial Arbitration Act.

Limit on compensation

9   (1) In this section:

"agreement" means a tree farm licence, community forest agreement, woodlot licence, forest licence or timber licence;

"compensation" includes damages.

(2) The compensation payable to the holder of an agreement because of or arising out of any of the following is limited to the amount of compensation determined under section 6 or 7 in relation to that agreement:

(a) a deletion of lands or deemed amendment under section 2;

(b) an allowable annual cut reduction or deemed amendment under section 3;

(c) a deemed allowable annual cut reduction under section 4;

(d) the extinguishment of rights under section 13.1 of the Act;

(e) the cancellation of agreements under section 13.1 of the Act.

(3) An action or other proceeding must not be brought or continued against the government for compensation in an amount that exceeds the amount limited under this section.