Amount of stumpage

103 (1) Subject to sections 107 and 108, 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 under section 106 using information provided by a cruise of the timber

by the sum of

(i) the timber is scaled, or

(ii) the volume or quantity is calculated under section 106, and

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

(2) If a bonus offer is made in respect of Crown timber referred to subsection (1), the bonus offer must be paid to the government in addition to the stumpage calculated in accordance with that subsection.

(3) Despite sections 107 and 108, a person who cuts, damages or destroys Crown timber without authorization must pay, in addition to all other amounts payable under this Act, the regulations or another enactment, stumpage calculated by multiplying the volume or quantity of the timber that was cut, damaged or destroyed 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, or in a cutting permit issued under that agreement, is without effect to the extent that it requires the holder of the agreement or permit, on or after the date this section comes into force, to cut and remove timber in accordance with the agreement or permit.

(3) If an agreement or a cutting permit referred to in subsection (2) requires its holder to pay an amount determined in accordance with the agreement or the cutting permit for timber that is not cut and removed in accordance with in the agreement or the cutting permit, the holder must pay the amount required to be paid under the agreement or the cutting 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 subsections (6) and (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

(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.

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

(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 for a forest region, they must be filed with the regional manager for the forest region who must make them available for inspection by any person.

(7) If the Lieutenant Governor in Council considers it to be in the public interest, he or she may 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 subsections (1) and (6), for a period not exceeding one year.

Accuracy of information submitted

105.1 A holder of an agreement under this Act who

(a) is required under this Act, or

(b) obliged under the agreement

to submit information to the government for use in determining, redetermining or varying a stumpage rate, or for any other purpose under this Act, must ensure that the information is accurate.

Correcting stumpage rates where inaccurate information was provided

105.2 (1) If, in the opinion of an official designated by the minister, a stumpage rate determined, redetermined or varied under section 105 (1) is in error because it was based on inaccurate information submitted by or on behalf of the holder of an agreement referred to in section 105 (1), the official may direct that the stumpage rate be redetermined under section 105 (1), taking new information into consideration only to the extent required to correct the error.

(2) The stumpage rate as redetermined in accordance with subsection (1)

(a) is deemed to have taken effect on the date on which the erroneous stumpage rate took effect, or

(b) takes effect on the intended effective date for the erroneous stumpage rate if that erroneous rate is not in effect on the date of the redetermination.

Cruise instead of scale

106 With the approval of the regional manager, the amount of stumpage payable on Crown timber may be calculated using the information provided by a cruise of the timber conducted before it is cut, instead of the volume reported in a scale of the timber made under Part 6.

More than one rate

107 If the regional manager 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 regional manager to be subject to each rate, is payable on the timber.

Rate on unscaled or incorrectly scaled timber

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

BC Timber Sales Account

109 (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;

(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);

(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 (2) (e).

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

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

(b) to defray the costs of meeting the requirements of section 70 (2) and (4) of the Forest Practices Code of British Columbia Act for an area of land covered by a silviculture prescription that

(i) was prepared under section 22 (1) (a) and (1.1) of that Act before its repeal, and

(ii) is incidental to operations that yield revenue referred to in subsection (2),

(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), and

(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).

(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).

Section Repealed

110 [Repealed 2003-31-60.]

Annual rent

111 (1) Despite another Act or an agreement, the holder of a timber sale licence that has an allowable annual cut greater than 10 000 m³, forest licence, timber licence, tree farm licence, community forest agreement or woodlot licence entered into under this Act 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.

(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.

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

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 regional manager or district manager 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.

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 regional manager, timber sales manager or district 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 regional manager, timber sales manager or district 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.

Column 1	Column 2
	Percentage of
Time Period	Stumpage Rate
on and after April 1, 1995 to and including March 31, 1996	60
on and after April 1, 1996 to and including March 31, 1997	67
on and after April 1, 1997 to and including March 31, 1998	73
on and after April 1, 1998 to and including March 31, 1999	80
on and after April 1, 1999 to and including March 31, 2000	87
on and after April 1, 2000 to and including March 31, 2001	93
on and after April 1, 2001	100