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) 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 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, 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 the agreement or the cutting permit, the holder must pay the amount required to be paid under the agreement or the cutting permit.

( 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.

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.

Column 1 Time Period	Column 2 Percentage of 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

(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.

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, whether still in effect or expired, is or was in error because it was determined, redetermined or varied under section 105 (1) based on

(a) inaccurate information, or

(b) information generated using inaccurate information

that was submitted by or on behalf of the holder of an agreement referred to in that section, the official may direct that the stumpage rate be redetermined under that section

(c) taking new information into account only to the extent necessary to correct the error, and

(d) in accordance with the minister's policies and procedures that were in effect at the time of the determination, redetermination or variation of the stumpage rate.

(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.

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  (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 granted for a licence referred to in this subsection to the licence holder;

(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).

(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,

(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), 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).

Repealed

110  [Repealed 2003-31-60.]

Annual rent

111  (1) The holder of a

(a) forest licence, timber licence, tree farm licence, community forest agreement, first nations woodland licence, community salvage licence or woodlot 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 or agreement 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 agreements granting rights to harvest Crown timber and set different rates for different

(a) classes of agreements, or

(b) forms of agreements.

(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 authorized for the agreement that the minister determines is attributable to the Crown land referred to in section 43.3 (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 authorized for the licence that the minister determines is attributable to the Crown land referred to in section 43.55 (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.