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| This archived statute consolidation is current to November 2, 1999 and includes changes enacted and in force by that date. For the most current information, click here. |
[Updated to November 2, 1999]
53 (1) In this Part:
"affiliate" means a corporation that is affiliated with another corporation within the meaning of subsection (2);
"agreement" means an agreement entered into under this Act;
"control of a corporation" means the holding, other than by way of security only, by or for the benefit of a person or a group of persons not dealing with each other at arm's length, of shares in a corporation that, in an election of the directors of the corporation, carry, in the aggregate, sufficient voting rights, if those rights are exercised, to elect 50% or more of the effective directors or to otherwise effectively control the operations and direction of the corporation;
"deletion period" means, with respect to
(a) a tree farm licence and replacements for it, each successive 25 year period commencing with the beginning of the term of the original tree farm licence entered into under section 33 or 34 of this Act or under section 33 of the Forest Act, R.S.B.C. 1979, c. 140,
(b) a tree farm licence entered into under section 39 and replacements for it, each successive 25 year period commencing with the beginning of the original tree farm licence entered into under that section,
(c) a timber licence or timber sale licence, the term of the licence,
(d) a forest licence and replacements for it, each successive 15 year period commencing with the beginning of the term of the original forest licence entered into under section 13, 16 or 17 of this Act or under section 15 of the Forest Act, R.S.B.C. 1979, c. 140, and
(e) a woodlot licence and replacements for it, each successive 15 year period commencing with the beginning of the term of the original woodlot licence entered into under section 44;
"effective director" means an effective director as defined in the regulations;
"5 year allowable cut" means
(a) in relation to an agreement other than a tree farm licence, the total of the allowable annual cuts in effect during the calendar years comprising a 5 year cut control period for the agreement, and
(b) in relation to a tree farm licence, the total allowable annual cut available to its holder during the calendar years comprising a 5 year cut control period for the agreement;
"5 year cut control period" means, in relation to an agreement, the 5 year period beginning January 1 of the year when the term of the agreement begins, unless otherwise designated by the regional manager, and each succeeding 5 year period;
"holder of an agreement" means a person, other than the government, that enters into an agreement, either singly or jointly with another person, and includes the transferee or assignee of an agreement and each partner of a partnership that enters into an agreement or is the transferee or assignee of an agreement;
"spouse" means each of 2 persons who
(a) are married to each other, or
(b) are living together as if married, having done so continuously throughout the immediately preceding 2 years;
"volume of timber harvested during a calendar year" means, in relation to an agreement, the total of such of the following as are charged to the holder of the agreement in that calendar year in statements issued on behalf of the government:
(a) the volume of timber cut under the agreement and under road permits issued under the agreement;
(b) the volume of timber estimated to be wasted or damaged under cutting permits and road permits issued pursuant to the agreement;
(c) the volume of timber cut by the holder of the agreement anywhere in the timber supply area or tree farm licence area, as the case may be, otherwise than under and in compliance with this Act or an agreement entered into under this Act;
(d) any volume of timber credited in respect of the agreement by the regional manager or the district manager;
(e) that part of the volume of timber harvested under the agreement during the preceding 5 year cut control period in excess of the total of the allowable annual cuts in effect under the agreement during the preceding 5 year cut control period, that is carried forward to that calendar year under section 65 (5);
"volume of timber harvested during a 5 year cut control period" means, in relation to an agreement, the total of the volumes of timber harvested under the agreement during the calendar years comprising a 5 year cut control period for the agreement.
(2) For the purposes of this Part, one corporation is affiliated with another corporation if one of them is the subsidiary of the other, or both are subsidiaries of the same corporation, or each of them is controlled by the same person.
(3) For the purposes of this Part, a corporation is a subsidiary of another corporation if
(a) it is controlled by
(i) that other corporation,
(ii) that other corporation and one or more corporations, each of which is controlled by that other corporation, or
(iii) 2 or more corporations, each of which is controlled by that other corporation, or
(b) it is a subsidiary of a subsidiary of that other corporation.
(4) For the purposes of subsections (2) and (3), a corporation is controlled by a person if
(a) shares of the corporation carrying 50% or more of the votes for the election of the directors are held, other than by way of security only, by or for the benefit of that person, and
(b) the votes carried by the shares referred to in paragraph (a) are sufficient, if exercised, to elect 50% or more of the directors.
54 (1) The minister's prior written consent must be obtained for
(a) the disposition of an agreement or an interest in an agreement,
(b) the change, or the acquisition or disposal, in one or a series of transactions, of control of a corporation that is the holder of an agreement or of another corporation that, directly or indirectly, controls that corporation,
(c) the amalgamation of a corporation, that is the holder of an agreement with another corporation, and
(d) the disposition of private land in the area subject to a tree farm licence or woodlot licence, or an interest in that private land.
(2) The minister may delegate to one or more regional managers and district managers, with or without restrictions, the minister's authority to give prior written consent under subsection (1) with respect to any of the following:
(a) woodlot licences;
(b) road permits;
(c) free use permits;
(d) Christmas tree permits;
(e) licences to cut;
(f) timber sale licences, except timber sale licences that have an allowable annual cut greater than 10 000 m3.
(3) Subsection (1) does not apply to
(a) a disposition made by way of security given in good faith, and
(b) the following dispositions, if the holder of an agreement notifies the minister, in the manner and form required by the minister, of the disposition within 3 months of the disposition:
(i) a disposition made on default of a debt security to the holder of that debt security, or to a trustee, receiver or receiver-manager of the holder of that debt security if the subject matter of the disposition is held for less than the prescribed period or one or more further periods that the minister may grant in a particular case if the extension is not detrimental to the public interest;
(ii) a disposition made by way of transmission from the estate of a deceased person to that person's personal representative;
(iii) a change in or acquisition of control of a corporation that is caused by a transmission of shares in its capital from the estate of a deceased person to the person's personal representative.
(4) The minister or the minister's delegate may attach conditions to a consent given under subsection (1), and the person who is the subject of the consent must comply with the conditions.
55 (1) If the minister determines that there has been a failure to obtain the consent required by section 54, the minister, without notice and despite section 77, may cancel the agreement in respect of which the failure occurred.
(2) If the minister determines that there has been a failure to obtain the consent required by section 54, other than a failure that occurred as a result of a failure to meet the requirements of section 54 (3), but decides not to cancel the agreement in respect of which the failure occurred, the minister is deemed to have given consent for the purposes of section 56.
(3) If the minister is deemed to have given consent under subsection (2), the minister may
(a) impose those conditions and requirements on that consent that the minister considers necessary or advisable, and
(b) without notice and despite section 77, cancel the agreement in respect of which the deemed consent was given if the minister determines that the conditions and requirements imposed under paragraph (a) are not complied with.
(4) In this section, for agreements that are within the jurisdiction of a delegate under section 54, a reference to the minister includes the minister's delegate.
56 (1) If the minister gives consent under section 54 or is deemed to have given consent under section 55 (2)
(a) in respect of a replaceable agreement that is
(i) a forest licence, or
(ii) a timber sale licence that has an allowable annual cut of greater than 10 000 m3
the allowable annual cut specified in the licence is reduced by 5%, and
(b) in respect of an agreement that is a tree farm licence, the government portion of the allowable annual cut available to the licence holder is reduced by 5%.
(2) If an agreement referred to in subsection (1) is subject to a reduction in allowable annual cut under section 61 or 173 at the time the minister gives consent under section 54 or is deemed to have given consent under section 55 (2) and the allowable annual cut is subsequently restored, in whole or in part, under section 62 or 173 (7), the restored allowable annual cut is, at the time of restoration, deemed to be reduced in accordance with subsection (1).
(3) Subject to subsection (4), the minister may determine the effective date of a reduction of the allowable annual cut under subsection (1) that is the result of consent which is deemed to have been given under section 55 (2).
(4) The effective date determined under subsection (3) may be a date before the date on which the minister determines that there has been a failure to obtain consent under section 54 but must not be a date before the date on which the transaction in respect of which consent was required occurred.
(5) If the minister gives consent under section 54 or is deemed to have given consent under section 55 (2) in respect of a timber licence, the holder of the licence must
(a) submit to the minister an independent current appraisal, that is satisfactory to the minister and is prepared by a professional forester, of the value of the timber standing within the area of the timber licence, and
(b) pay to the government, by a date specified by the minister, an amount that is 5% of the greater of the following amounts:
(i) the value that the holder of the licence declared the licence to have when the holder made the application for consent under section 54;
(ii) the independent current appraisal of the value of the timber.
(6) Subsections (1) and (5) do not apply to consent given under section 54 or consent deemed to have been given under section 55 (2) with respect to the following transactions:
(a) a beneficial transfer, by a deceased person's personal representative, of an agreement or an interest in an agreement, or of the control of a corporation that holds an agreement, to
(i) the spouse of the deceased person,
(ii) a child, grandchild or parent of the deceased person, or
(iii) the spouse of a child or grandchild of the deceased person;
(b) a disposition of an agreement or an interest in an agreement from a corporation to an affiliate corporation;
(c) a change in, or acquisition of control of, a corporation between affiliate corporations;
(d) an amalgamation of affiliate corporations;
(e) the disposition of private land in the area subject to a tree farm licence or woodlot licence, or an interest in that private land.
(7) A reduction under subsection (1) or an obligation to pay under subsection (5) (b), other than a reduction or obligation to pay in respect of a consent deemed to have been given under section 55 (2), is effective 14 days after the date on which consent is given unless the minister receives notice in writing, prior to the expiration of the 14 day period, that the transaction in respect of which consent was given will not take place within the 14 day period, in which case the consent is deemed not to have been given.
(8) If a person fails to comply with an obligation to pay by the date specified by the minister under subsection (5) (b), the minister, without notice and despite section 77, may cancel the agreement in respect of which the failure occurred.
(9) If the reduction of the allowable annual cut referred to in subsection (1) occurs in respect of a tree farm licence, the minister, or a person authorized by the minister, in accordance with this Act, may
(a) dispose of a volume of timber from within the area of the tree farm licence up to the amount of the reduction, or
(b) delete from the licence an area of Crown land within the area of the tree farm licence that the chief forester determines to be capable of producing an allowable annual cut not greater than the reduction.
(10) No compensation is payable under this Act or otherwise in respect of a reduction under subsection (1).
(11) The minister may waive the requirements of subsections (1) and (5) in respect of
(a) a disposition of an agreement or an interest in an agreement to a business enterprise, as defined in the Job Protection Act, that is a participant in an economic plan under that Act and acquires the agreement or interest disposed of in furtherance of the economic plan,
(b) a change in or acquisition of control of a corporation that occurs in furtherance of an economic plan, in which the corporation is a participant, under the Job Protection Act, or
(c) an amalgamation of corporations that occurs in furtherance of an economic plan under the Job Protection Act.
(12) Subsection (11) and this subsection are repealed on the date, if any, on which sections 1 to 19 of the Job Protection Act are repealed under section 20 of that Act by regulation of the Lieutenant Governor in Council.
56.1 (1) In this section, a reference to "agreement" means an agreement that on or after June 19, 1997 is subject to the minister's prior written consent under section 54.
(2) If the allowable annual cut of an agreement is reduced under section 56 (1), the holder of the agreement may apply to have the allowable annual cut of the agreement increased by the amount of the reduction by serving a written notice on the minister requesting the increase and enclosing a job creation plan.
(3) The written notice and job creation plan must be served on the minister not later than 3 months after the consent was given under section 54 in respect of the agreement.
(4) The minister may
(a) approve the job creation plan,
(b) with the consent of the holder of the agreement who submitted the plan, approve an amended job creation plan, or
(c) reject the job creation plan.
(5) The minister must increase the allowable annual cut of the agreement, effective the date of the reduction under section 56 (1) by an amount equal to the reduction if
(a) the minister approves the job creation plan under subsection (4) (a) or (b), and
(b) the increase is consistent with the government's social and economic objectives for the area affected by the agreement.
(6) The minister may reduce the allowable annual cut of an agreement that was subject to an increase under subsection (5) by an amount not exceeding the increase if the holder of the agreement is not complying with the job creation plan approved under subsection (4).
(7) and (8) [Repealed RS1996-157-56.1 (8).]
57 (1) The minister, with the consent of the Lieutenant Governor in Council, may enter into, in exchange for the surrender of a timber licence, a new timber licence describing Crown land the timber on which is not otherwise encumbered.
(2) Despite section 95 of the Land Act, the Lieutenant Governor in Council may accept under that section, in exchange for Crown land, private forest land of greater or lesser value.
(3) Before a transaction is completed under subsection (1) or (2), the minister must obtain a current appraisal of the value of the lands or timber, as the case may be, involved in the transaction, prepared by an independent appraiser appointed by the minister.
58 (1) Each time the allowable annual cut authorized in a non-replaceable forest licence or non-replaceable timber sale licence is reduced under section 63 the regional manager must
(a) extend the term of the licence in accordance with subsection (2), and
(b) if required, reduce the allowable annual cut for the last year of the extended term of the licence in accordance with subsection (4).
(2) The term of a licence must be extended by the number of additional years that is equal to
(a) the extension factor calculated under subsection (3), if the extension factor is a whole number, or
(b) a number determined by rounding up the extension factor, calculated under subsection (3), to the nearest whole number, if the extension factor is not a whole number.
(3) The extension factor is determined by the following formula:
|
E = the total volume of timber that the licensee would have been entitled to harvest under the licence using the allowable annual cut specified in the licence when the licence was issued less any reductions made under this Act, other than section 63, or the cut control provisions of the licence
NE = the total volume of timber that the licensee is entitled to harvest under the licence after the reduction under section 63 of the allowable annual cut authorized in the licence
NAAC = the allowable annual cut authorized in the licence after the reduction under section 63 of the allowable annual cut authorized in the licence.
(4) If the extension factor contains a fraction before it is rounded up under subsection (2) (b), the allowable annual cut for the last year of the licence must be determined by multiplying the NAAC determined under subsection (3) by the fraction.
(5) This section does not apply to the holder of a licence if the notice under section 63 is sent to the holder after the total volume authorized under the licence has been harvested.
59 If the holder of a forest licence or timber sale licence carries out silviculture treatments to free growing stands, as defined in the Forest Practices Code of British Columbia Act, located on Crown land in the timber supply area specified in the licence, the regional manager, subject to and if authorized by the regulations, may increase the allowable annual cut authorized under the licence by a volume equal to the determination by the regional manager, or a person authorized by the regional manager, of the potential gain in timber production from the Crown land attributable to the silviculture treatments.
59.1 (1) For the purpose of improving the productivity of the forestry resource, the minister, at his or her discretion, may enter into an agreement with a person referred to in subsection (2) to allow that person to carry out, subject to subsection (5) and the Forest Practices Code of British Columbia Act, one or more of the innovative forestry practices and other activities that are set out in a regulation made under subsection (4).
(2) For the purposes of subsection (1), the minister may enter into an agreement with a person who
(a) is the holder of a forest licence or other agreement that is entered into under section 12 and specified in a regulation made under subsection (4) of this section, and
(b) presents a written proposal for an agreement to the minister.
(3) An agreement under subsection (1)
(a) must be for a term not exceeding 15 years, and
(b) may include terms and conditions that
(i) the minister considers are necessary to effectively carry out the purpose of the agreement and further the social and economic objectives of the government, and
(ii) are consistent with this Act and the regulations and the Forest Practices Code of British Columbia Act, and the regulations and standards made under that Act.
(4) The Lieutenant Governor in Council may make regulations specifying
(a) the innovative forestry practices and other activities that may be the subject of an agreement referred to in subsection (1), and
(b) the agreements entered into under section 12, the holders of which may enter into an agreement with the minister under subsection (1) of this section.
(5) A person may only carry out an innovative forestry practice or other activity referred to in subsection (1) if the person
(a) has prepared and obtained the regional manager's approval of a forestry plan that meets the requirements of subsection (6), and
(b) is carrying out the practice or activity in accordance with the plan.
(6) A forestry plan
(a) must contain a description of the management area where the innovative forestry practices or other activities will be carried out,
(b) must specify the particulars of the innovative forestry practices or other activities,
(c) must contain a description of how the innovative forestry practices or other activities will be carried out,
(d) must contain a schedule of when the innovative forestry practices or other activities will be carried out,
(e) must specify how the innovative forestry practices or other activities will contribute to improved productivity of the forestry resource,
(f) must specify how the innovative forestry practices or other activities will justify an increase in the allowable annual cut of the participant's licence or agreement referred to in subsection (2) (a), and
(g) may include other terms and conditions that
(i) the regional manager believes are necessary to effectively carry out the agreement referred to in subsection (1), and
(ii) are consistent with this Act and the regulations and the Forest Practices Code of British Columbia Act, and the regulations and standards made under that Act.
(7) After approving a person's forestry plan, the regional manager may increase the allowable annual cut authorized in the person's licence or agreement referred to in subsection (2) (a) by an amount that is justified according to timber supply analysis methodology approved by the chief forester or the chief forester's designate.
(8) When the regional manager increases an allowable annual cut under subsection (7), the regional manager may limit the increase to a period of time, area of land and type of timber, and may make the increase subject to conditions.
(9) If an assessment of
(a) the innovative forestry practices or other activities being carried out under the forestry plan, or
(b) information that was not available at the time the regional manager increased the allowable annual cut under subsection (7)
indicates that all or part of the allowable annual cut increase was not justified, the regional manager may reduce the allowable annual cut of the licence or agreement referred to in subsection (2) (a) by an amount not exceeding the increase granted under subsection (7).
(10) If, with respect to an innovative forestry practice or other activity, a person is not complying with
(a) the agreement referred to in subsection (1),
(b) the forestry plan approved under subsection (5),
(c) any limitation or conditions imposed under subsection (8), or
(d) this Act and the regulations made under this Act, or the Forest Practices Code of British Columbia Act and the regulations or standards made under that Act,
the regional manager may do one or both of the following:
(e) suspend or cancel the agreement referred to in subsection (1) and sections 76 and 77 apply with respect to that suspension or cancellation;
(f) reduce the allowable annual cut of the person's licence or agreement referred to in subsection (2) (a) by an amount the regional manager determines is attributable to the default.
(11) A reduction under subsection (9) or (10) may be apportioned over a period of up to 5 years.
(12) If the forest licence, or other agreement referred to in subsection (2) (a), is suspended, the agreement under subsection (1) is suspended.
(13) If the forest licence, or other agreement referred to in subsection (2) (a), is cancelled or surrendered, the agreement under subsection (1) is cancelled.
(14) If the agreement referred to in subsection (1) is suspended or cancelled, the forestry plan is suspended or cancelled, as the case may be.
60 (1) The minister, in a notice served at least one year in advance on the holder of the licence, may
(a) delete Crown land from a tree farm licence area or woodlot licence area, if the deletion does not affect the allowable annual cut determined for the tree farm licence or woodlot licence,
(b) delete from a tree farm licence area, Crown land referred to in section 35 (1) (b) (i), 37 (1) or (2), or 38 (1), to be used
(i) for the purposes of access to Crown timber, highway, pipeline or power transmission line rights of way or of water storage, or
(ii) for a purpose other than referred to in subparagraph (i) and other than timber production,
(c) delete from a woodlot licence area or the area described in a timber licence Crown land to be used
(i) for the purposes of highway, pipeline or power transmission line rights of way or of water storage, or
(ii) for a purpose other than referred to in subparagraph (i) and other than timber production, or
(d) reduce the allowable annual cut authorized in a forest licence or timber sale licence if Crown land in the timber supply area specified in it is to be used
(i) for the purposes of highway, pipeline and power transmission line rights of way or of water storage, or
(ii) for a purpose other than referred to in subparagraph (i) and other than timber production.
(2) If the total deletions made during a deletion period
(a) from a tree farm licence area under subsection (1) (b),
(i) for purposes referred to in subsection (1) (b) (i), have the effect of reducing the portion of the allowable annual cut then approved for the tree farm licence that the chief forester determines is attributable to the Crown land referred to in sections 35 (1) (b) (i), 37 (1) and (2) and 38 (1) by more than 5% of the portion of the allowable annual cut for the tree farm licence that the chief forester determines was attributable to that land at the beginning of the deletion period, or
(ii) for purposes referred to in subsection (1) (b) (ii), have the effect of reducing the portion of the allowable annual cut then approved for the tree farm licence area that the chief forester determines is attributable to the Crown land referred to in sections 35 (1) (b) (i), 37 (1) and (2) and 38 (1) by more than 5% of the portion of the allowable annual cut for the tree farm licence that the chief forester determines was attributable to that land at the beginning of the deletion period, or
(b) from a woodlot licence area under subsection (1) (c),
(i) for purposes referred to in subsection (1) (c) (i), have the effect of reducing the allowable annual cut approved for the woodlot licence by more than 5% of the allowable annual cut approved at the beginning of the deletion period, or
(ii) for purposes under subsection (1) (c) (ii), have the effect of reducing the allowable annual cut approved for the woodlot licence by more than 5% of the allowable annual cut approved at the beginning of the deletion period,
the government must compensate its holder in respect of the amount of the reduction exceeding 5%, for the unexpired portion of its term.
(3) If the total deletions made under subsection (1) (c) during a deletion period from the area described in a timber licence
(a) for purposes referred to in subsection (1) (c) (i) exceed 5% of the area described in the timber licence at the beginning of the deletion period, or
(b) for purposes under subsection (1) (c) (ii) exceed 5% of the area described in the timber licence at the beginning of the deletion period,
the government must compensate its holder in respect of the area exceeding 5%.
(4) If the total reductions in the allowable annual cut authorized in a forest licence or timber sale licence made during a deletion period, in consequence of Crown land use
(a) for purposes referred to in subsection (1) (d) (i) exceed 5% of the allowable annual cut authorized for the licence at the beginning of the deletion period, or
(b) for purposes under subsection (1) (d) (ii) exceed 5% of the allowable annual cut authorized for the licence at the beginning of the deletion period,
the government must compensate its holder in respect of the amount of the reduction exceeding 5%, for the unexpired portion of its term.
(5) In addition to compensation otherwise payable under this section, the government must compensate the holder of a tree farm licence, woodlot licence, timber licence, forest licence or timber sale licence for improvements made to Crown land that
(a) are authorized by the government, and
(b) are not paid for by the government under this or the former Act.
(6) Subsection (5) does not apply in respect of basic silviculture carried out by the holder of a licence.
(7) If the amount of compensation is not agreed on, it must be submitted for determination by one arbitrator or 3 arbitrators appointed under the Commercial Arbitration Act and
(a) the person who is to be compensated must elect, in a notice served on the minister, whether one or three arbitrators are to be appointed, and
(b) the Commercial Arbitration Act applies to the submission.
(8) Despite this Act but subject to the consent of the person entitled, compensation payable under subsection (2), (3) or (4) may take the form of an agreement authorized under Part 3.
(9) A tree farm licence, woodlot licence, timber licence, forest licence or timber sale licence is deemed to be amended to the extent provided in a notice served under subsection (1), and the district manager must serve the holder with a notice, evidencing the amendment.
61 (1) The minister, with the consent of the licensee, may reduce for a specified period
(a) the allowable annual cut authorized or deemed to be authorized in a forest licence, timber sale licence or tree farm licence, or
(b) the volume of timber that may be harvested under a woodlot licence during each year or other period of its term.
(2) Before expiry of a period of reduction specified under this section, the minister, with the consent of the licensee, may
(a) extend the period of the reduction, or
(b) increase or decrease the size of the reduction.
(3) During the period of a reduction under this section, the total volume of timber comprised in the reduction is available for disposition under this Act to persons other than the licensee.
62 At the end of the period of any reduction specified under section 61, the allowable annual cut or volume of timber under the licence that was subject to the reduction is, by this section, restored to the amount that is equal to the allowable annual cut or volume of timber that was in effect under the licence immediately before the reduction, minus any reductions, other than under section 61, that have been made under this Act during the period of the reduction.
63 (1) In this section:
"base-level allowable annual cut" means the allowable annual cut that is prescribed for the purposes of this section;
"exempted licence" means a licence described in subsection (3);
"licence" means a forest licence or timber sale licence.
(2) Subject to section 63.1, if the allowable annual cut determined for a timber supply area is reduced under section 8 for any reason other than a reduction in the area of land in the timber supply area, the minister, by notice served on all persons who hold licences in the timber supply area that are not exempted licences, may reduce, by the method set out in subsection (4), the allowable annual cuts authorized in the licences.
(3) This section does not apply to or in respect of a licence that specifies an allowable annual cut less than the base-level allowable annual cut.
(4) A reduction in allowable annual cut imposed under this section in a timber supply area must be apportioned among all the licences in that area, except exempted licences, in accordance with the following method:
(a) first, calculate a reduction in allowable annual cut for each licence by distributing the part of the reduction under section 8 that the minister may assign to the licences proportionately among them according to the relative sizes of the allowable annual cut specified in each licence;
(b) second, calculate for each licence the annual volume of timber, if any, by which the calculations under this subsection reduce the allowable annual cut for that licence to less than the base-level allowable annual cut;
(c) third, calculate the aggregate of the annual volumes of timber calculated under paragraph (b);
(d) fourth, for each licence for which the calculation under paragraph (b) does not reduce the allowable annual cut to less than the base-level allowable annual cut, calculate a further reduction in allowable annual cut by distributing the amount determined under paragraph (c) proportionately among those licences according to the relative sizes of the allowable annual cut specified in each of them;
(e) fifth, repeat the calculations under paragraphs (b) to (d) until the end result of all the calculations is that the allowable annual cut for any of the licences is not reduced to a level that is less than the base-level allowable annual cut.
(5) This section and section 80 apply to licences, whether issued before, on or after the date this section comes into force.
(6) A licence is deemed to be amended to the extent provided in a notice served under this section on the holder of the licence.
63.1 (1) In this section:
"allowable annual cut increase", for the period from the date on which the determination of the previous allowable annual cut is made effective and the date on which the determination of the current allowable annual cut is made effective, means the sum of all increases under section 59.1 to the allowable annual cuts specified in forest licences or other agreements in the timber supply area;
"previous allowable annual cut" means the allowable annual cut that was in effect for a timber supply area immediately before the determination of the current allowable annual cut for the timber supply area.
(2) For the purposes of section 63 (2),
(a) the allowable annual cut for a timber supply area is reduced if it is less than the sum of the previous allowable annual cut and the allowable annual cut increase, and
(b) the amount of the reduction is determined by adding the previous allowable annual cut and the allowable annual cut increase and then subtracting the current allowable annual cut.
64 (1) The holder of a replaceable agreement, other than a tree farm licence or community forest agreement, must ensure that
(a) the volume of timber harvested during a calendar year under the agreement is not less than 50% nor more than 150% of the allowable annual cut specified in the agreement, and
(b) the volume of timber harvested during a 5 year cut control period under the agreement is not less than 90% nor more than 110% of the total of the allowable annual cuts specified in the agreement during that 5 year period.
(2) The holder of a tree farm licence must ensure that
(a) the volume of timber harvested during a calendar year under the licence is not less than 50% nor more than 150% of the allowable annual cut available to the holder during that calendar year, and
(b) the volume of timber harvested during a 5 year cut control period under the licence is not less than 90% nor more than 110% of the total allowable annual cut available to the holder during that 5 year period.
(3) Subsection (1) (a) does not apply in respect of a woodlot licence or a timber sale licence.
(4) If the allowable annual cut specified in a forest licence is less than 50 000 m3, the regional manager, on application of the licence holder, may substitute a different requirement than that set out in subsection (1) (a).
(5) If the allowable annual cut available to a tree farm licence holder is less than 50 000 m3, the regional manager, on application of the licence holder, may substitute a different requirement than that set out in subsection (2) (a).
65 (1) If the volume of timber harvested under an agreement
(a) exceeds, if section 64 (1) or (2) applies, either of the maximum limits specified in paragraph (a) or (b) of that subsection, or
(b) exceeds the maximum limit specified in section 64 (4) or (5), if that subsection applies,
then
(c) in respect of the volume harvested in excess of the maximum limit, the holder of the agreement must pay to the government, in addition to other stumpage payable under this Act or any other penalty under this Act, a penalty at the rate or rates required by subsection (2).
(2) A penalty payable under subsection (1) (c) is to be at a rate that is twice the average stumpage rate that was applicable to timber harvested under the agreement
(a) during the calendar year in which the harvest occurred, if the maximum limit specified in section 64 (1) (a) or (2) (a) is exceeded, or
(b) during the last year in which stumpage was payable in respect of timber harvested under the agreement, if the maximum limit specified in section 64 (1) (b) or (2) (b) or substituted under section 64 (4) or (5) is exceeded.
(3) If timber on Crown land is in imminent danger of being lost or destroyed, a regional manager may authorize the holder of an agreement to harvest it, whether or not the timber is within the authorized cutting area of the agreement, and whether or not the volume to be harvested exceeds a limit specified in section 64, and if the regional manager so authorizes, he or she may grant to the holder of the agreement an exemption from the requirements of subsection (1) and section 64 (1) or (2).
(4) A regional manager must not grant an exemption pursuant to subsection (3) unless the holder of the agreement agrees to restrict the volume of timber harvested by the holder in the remaining years of the holder's 5 year cut control period, or in the next following 5 year cut control period, or both, so that the holder of the agreement does not, in total, harvest more timber in those periods than would be permitted by section 64.
(5) If the volume of timber harvested during a 5 year cut control period exceeds the 5 year allowable cut for the 5 year cut control period, the excess is deemed to be timber harvested during the succeeding 5 year cut control period in such amount each year of the succeeding 5 year cut control period as the regional manager or district manager directs.
(6) If the allowable annual cut specified by or under an agreement is reduced under section 9, 56, 61, 63, 71 or 173, the minister or a person authorized by the minister may grant to the holder of the agreement
(a) full or partial relief from subsection (1) (c), or
(b) a conditional or unconditional exemption from subsection (5).
66 (1) If the volume of timber harvested during a calendar year under a forest licence replaceable under this Act is less than the minimum volume required by section 64 (1) (a) to be harvested in the calendar year, the regional manager, by a notice served on the holder of the licence, may reduce the allowable annual cut authorized under the licence or a replacement for it.
(2) If the volume of timber harvested during a 5 year cut control period under a forest licence replaceable under this Act or a timber sale licence replaceable under this Act is less than the minimum volume required by section 64 (1) (b) to be harvested during the 5 year cut control period specified in the forest licence or in a management plan approved under it, or specified in the timber sale licence, the regional manager, by a notice served on the holder of the licence, must reduce the allowable annual cut authorized under the licence or a replacement for it.
(3) The volume of reduction under subsection (1) or (2) must not exceed the volume by which the harvest is deficient, and the regional manager or district manager, in accordance with this Act, may dispose of a volume of timber from the applicable timber supply area equal to the amount of the reduction.
(4) If the volume of timber harvested during a calendar year under a tree farm licence replaceable under this Act is less than the minimum volume required by section 64 (2) (a) to be harvested during the calendar year, then by a notice served on the holder of the licence, the minister or a person authorized by the minister may
(a) reduce the allowable annual cut available to the holder of a tree farm licence or a replacement for it by a volume not greater than the deficiency but without deleting land from the licence, or
(b) reduce the allowable annual cut available to the holder of a tree farm licence or a replacement for it by deleting from the area of the licence Crown land that the chief forester determines to be capable of producing an allowable annual cut not greater than the volume of the deficiency.
(5) If the volume of timber harvested during a 5 year cut control period under a tree farm licence or a replacement for it is less than the minimum volume required by section 64 (2) (b) to be harvested during the 5 year cut control period, then by a notice served on the holder of the licence, the minister or a person authorized by the minister must
(a) reduce the allowable annual cut available to the holder of a tree farm licence or a replacement for it by a volume not greater than the volume of the deficiency but without deleting land from the licence or a replacement for it, or
(b) reduce the allowable annual cut available to the holder of a tree farm licence or a replacement for it by deleting from the area of the licence or replacement for it Crown land that the chief forester determines to be capable of producing an annual cut not greater than the volume of the deficiency.
(6) If the volume of timber harvested during a 5 year cut control period under a woodlot licence replaceable under this Act is less than the minimum volume required by section 64 (1) (b) to be harvested during the 5 year cut control period specified in the woodlot licence, then by a notice served on the holder of the licence, the regional manager must
(a) reduce the volume of timber authorized to be harvested under the woodlot licence or a replacement for it by a volume not greater than the volume of the deficiency but without deleting land from the licence or a replacement for it, or
(b) reduce the volume of timber authorized to be harvested under the woodlot licence or a replacement for it by deleting from the area of the woodlot licence or a replacement for it Crown land that the regional manager determines to be capable of producing a volume of timber not greater than the volume of the deficiency.
(7) If under subsection (4) (a), (5) (a) or (6) (a) the allowable annual cut available to the holder of a tree farm licence or the volume of timber authorized to be harvested by the holder of a woodlot licence is reduced, the regional manager or district manager, under section 20, or the minister or a person authorized by the minister, under section 21, may issue to any person a timber sale licence authorizing the harvest, from the area of the tree farm licence or woodlot licence, of a volume of timber not greater than the reduction so made.
(8) If in a case to which subsection (4), (5), (6) or (7) applies the powers conferred by those subsections are not exercised, a regional manager or district manager, under section 20, or the minister or a person authorized by the minister, under section 21, may issue to any person a timber sale licence authorizing the harvest, from the area of the tree farm licence or woodlot licence, of a volume of timber not greater than the reduction that could have been effected under subsection (4), (5) or (6).
(9) A forest licence, timber sale licence, tree farm licence or woodlot licence is deemed to be amended to the extent provided in a notice served under this section, and the district manager must serve the holder with a notice, evidencing the amendment.
(10) The regional manager, minister, or a person authorized by the minister, as the case may be, if permitted by the regulations, may refrain from making a reduction in the allowable annual cut under this section.
67 (1) If the volume of timber harvested during a calendar year under an agreement is less than the minimum volume of 50% required to be harvested under section 64 (1) (a) or (2) (a) and cut control is based on a calendar year, the holder of the agreement has no right to harvest the deficiency below 50% in any subsequent calendar year.
(2) If the volume of timber harvested during a 5 year cut control period under an agreement is less than 100% of the 5 year allowable cut, the holder of the agreement has no right to harvest the deficiency below 100% in a subsequent 5 year cut control period.
(3) If the volume of timber harvested by the holder of an agreement during a 5 year cut control period under the agreement is less than 100% of the 5 year allowable cut, then, after serving written notice of intention to do so on the holder of the agreement,
(a) the regional manager or district manager, under section 20,
(b) the minister or a person authorized by the minister, under section 21, or
(c) the minister or a person authorized by the minister under section 13, by way of a forest licence referred to in section 13 (1.1)
may dispose of timber from the area of the agreement or applicable timber supply area equal in volume to the deficiency.
(4) If permitted by the regulations, the minister or a person authorized by the minister may grant to a licensee relief from subsection (2) in a manner permitted by the regulations.
68 If the holder of a tree farm licence identifies, in an approved management plan, land within the tree farm licence area that is not required to meet the allowable annual cut and the chief forester determines that
(a) sale of timber on that land would not affect the licensee's ability to manage the tree farm licence area in accordance with the management plan nor adversely affect other natural resources, the minister may offer the timber for sale through timber sale licences issued under pulpwood agreements or competitive, non-replaceable timber sale licences, or
(b) forest management would be improved by doing so, the minister may delete the land from the tree farm licence.
69 (1) If
(a) a tree farm licence or a management plan approved under it specifies, or
(b) the chief forester, in relation to a tree farm licence, specifies under section 8 (5)
that portions of the allowable annual cut for the tree farm licence are to be harvested from different types of timber or terrain or from different parts of Crown land or private land within the tree farm licence area and the holder of the tree farm licence fails to harvest a portion of the allowable annual cut so specified, the chief forester, in a notice served on the holder, may reduce the allowable annual cut available to the holder by a volume equal to the specified portion that was not so harvested.
(2) Crown timber within the tree farm licence area may be disposed of under this Act to persons other than the holder of the tree farm licence in a volume that does not exceed the reduction under subsection (1).
(3) If a forest licence replaceable under this Act or a timber sale licence replaceable under this Act, or a management plan approved under either of them, provides that part of the allowable annual cut of the licence is to be harvested from a specified part of a licence area, from a specified type of timber or from a specified type of terrain and the holder of the licence fails to comply with that provision, the minister or a person authorized by the minister, in a notice served on its holder, may reduce the allowable annual cut authorized in the licence or in the management plan approved under it by a volume equal to the volume that was not so harvested.
70 (1) The chief forester, in a notice served on the holder of a major licence or a woodlot licence, may reduce the allowable annual cut specified in the agreement, or available to the holder of the agreement, by an amount of up to the volume of timber that the chief forester determines was on an area authorized for harvest under a cutting permit, if the chief forester determines that the holder of the agreement caused or allowed the soil disturbance, as defined in the Forest Practices Code of British Columbia Act, on the area of land authorized for harvest to exceed the limits specified in an operational plan, as defined in the Forest Practices Code of British Columbia Act.
(2) The regional manager, in a notice served on the holder of a major licence or a woodlot licence, may reduce the allowable annual cut specified in the agreement, or available to the holder of the agreement, by an amount determined according to subsection (3), if the regional manager determines that the holder of the agreement failed to utilize timber on an area of land authorized for harvest under a cutting permit, in accordance with the utilization standards required under
(a) the agreement,
(b) an operational plan as defined in the Forest Practices Code of British Columbia Act,
(c) a cutting permit issued under the agreement,
(d) a management plan approved under the agreement, or
(e) the Forest Practices Code of British Columbia Act or the regulations or the standards made under that Act.
(3) The regional manager may reduce an allowable annual cut under subsection (2) by an amount of up to his or her determination of the difference between
(a) the volume of timber that should have been utilized on the area, according to the utilization specifications, and
(b) the volume of timber actually utilized.
(4) The regional manager, in a notice served on the holder of a major licence or a woodlot licence, must reduce the allowable annual cut specified in the agreement, or available to the holder of the agreement, by an amount of up to 5% of the volume of timber that the regional manager determines was on an area authorized for harvest under a cutting permit, if the regional manager determines that the holder of the agreement failed to establish a free growing stand, as defined in the Forest Practices Code of British Columbia Act, in accordance with the requirements of a silviculture prescription, as defined in that Act, on the area of land authorized for harvest.
71 (1) If
(a) an owner or operator of a timber processing facility closes it or reduces its production,
(b) the closure or reduction continues or, in the opinion of the minister, will continue for a period longer than 90 days, and
(c) the owner or the operator or any affiliate of either of them is the holder of one or more agreements that are replaceable under this Act,
then at any time within 12 months after the closure or reduction, if the minister considers action under this subsection to be in the public interest, taking into account the economic and social objectives of the government for the local area of the timber processing facility,
(d) the minister may require the regional manager to determine the difference between
(i) the average annual volume of timber from Crown land that was processed through that timber processing facility during the 24 months immediately before the closure or reduction, and
(ii) the average annual volume of timber from Crown land that would have been processed through that timber processing facility during the 24 months immediately before the closure or reduction if the closure or reduction had been in effect throughout that 24 month period,
(e) in a notice served on the holder of a replaceable agreement or agreements, as the case may be, other than a tree farm licence, the minister may reduce the allowable annual cut specified by or under the agreement or agreements by a total volume not greater than the difference in the average annual volume determined under paragraph (d), and
(f) in a notice served on the holder of a tree farm licence or licences, as the case may be, the minister may reduce the allowable annual cut available to the holder by a total volume not greater than the difference in the average annual volume determined under paragraph (d).
(2) In determining whether to make a reduction, or in determining the amount of a reduction, under subsection (1) (e) or (f), the minister must consider the extent to which the difference in average annual volume calculated under subsection (1) (d) is attributed to
(a) reductions under section 8, 9, 56, 63 or 173 in allowable annual cut,
(b) the fact a non-replaceable agreement under section 12 has expired,
(c) reductions in the volume specified in a pulpwood agreement,
(d) the making of an order under section 170 or 171,
(e) the fact that a strike or lock out has occurred, or
(f) an interruption in the supply of logs to the timber processing facility caused by
(i) a fire, flood or other natural cause, or
(ii) a forest closure under section 84 of the Forest Practices Code of British Columbia Act.
(3) If the allowable annual cut specified under a tree farm licence has been reduced under subsection (1), Crown timber that
(a) is within the area of the tree farm licence, and
(b) is not within the area of a timber licence
is available for disposition under this Act, in an annual volume that does not exceed the reduction, to persons other than the holder of the tree farm licence.
(4) An agreement is deemed to be amended to the extent provided in a notice served under subsection (1) on the holder of the agreement, and, in the case of a tree farm licence, also to the extent provided in subsection (3).
(5) This section and section 80 apply to an agreement that is the subject of a notice served under subsection (1) of this section whether the agreement was or is issued before, on or after April 12, 1991.
72 (1) In this section, "holder of the licence" means the holder of a tree farm licence, timber licence or woodlot licence for the area to which an agreement in the form of a timber sale licence, proposed to be entered into under this section, would apply.
(2) A district manager may enter into an agreement in the form of a timber sale licence under this section with a person other than the holder of the licence.
(3) Sections 20 and 22 apply to an agreement in the form of a timber sale licence under this section except that
(a) the district manager may enter into an agreement in the form of a timber sale licence without advertising and without accepting applications from other persons, and
(b) the licence
(i) must be restricted primarily to the harvest of windthrown, dead, damaged, insect infested or diseased timber or special forest products, and
(ii) must authorize the harvest of a volume of timber or special forest products of less than 2 000 m3.
(4) Before entering into a timber sale licence under this section, the district manager must serve a notice on the holder of the licence inviting the holder to harvest the timber or special forest products that would otherwise be harvested under the proposed timber sale licence.
(5) The district manager must include in the notice under subsection (4) a date by which the harvest must be completed, and in determining that date the district manager must take into account
(a) the time by which the timber or special forest products must be harvested to prevent them from being significantly reduced in value, lost or destroyed or to minimize the spread of an insect infestation,
(b) any seasonal site conditions or constraints that would limit the harvesting of the timber or special forest products, and
(c) the nature and location of the holder of the licence's operations in the holder's licence area.
(6) To be eligible to harvest the timber or special forest products, the holder of the licence must reply to the district manager within 14 days of receiving the notice agreeing to complete the harvest by the date specified in the notice.
(7) If a person to whom a notice under subsection (4) is sent
(a) does not reply and agree, within 14 days of receiving the notice, to harvesting the timber or special forest products, or
(b) replies and agrees, within 14 days of receiving the notice, to harvesting the timber or special forest products but does not do so by the date specified in the notice,
the district manager may enter into a timber sale licence authorizing the harvesting of some or all of the timber or special forest products, if the district manager considers the harvesting will not prevent the person from fulfilling their obligations under this Act or the Forest Practices Code of British Columbia Act.
(8) If a person to whom a notice under subsection (4) is sent replies and agrees within 14 days of receiving the notice to harvest the timber or special forest products but does not do so by the date specified in the notice and as a result timber or special forest products are lost, destroyed or significantly reduced in value, the district manager must determine the amount that, in the district manager's opinion, would have been harvested if a timber sale licence had been issued under this section.
(9) The amount of timber or special forest products harvested under the timber sale licence entered into under this section, or the amount that the district manager determines under subsection (8) would have been harvested, is deemed, for the purposes of paragraphs (a) and (e) of the definition of "volume of timber harvested during a calendar year" in section 53 (1), to be harvested under the tree farm licence or woodlot licence of the person to whom the notice is sent under subsection (4) of this section.
73 (1) In this section:
"holder of the licence" means the holder of a forest licence or timber sale licence for the area to which an agreement in the form of a timber sale licence, proposed to be entered into under this section, would apply;
"operational plan" means an operational plan as defined in the Forest Practices Code of British Columbia Act.
(2) Section 72 (2) and (3) applies to this section.
(3) Before entering into a timber sale licence under this section, the district manager must serve a notice on the holder of the licence whose operational plan applies to the area to which the proposed timber sale licence would apply, inviting the holder of the licence to harvest the timber or special forest products that would otherwise be harvested under the proposed timber sale licence.
(4) The district manager must include in the notice under subsection (3) a date by which the harvest must be completed, and in determining that date the district manager must take into account
(a) the time by which the timber or special forest products must be harvested to prevent them from being significantly reduced in value, lost or destroyed or to minimize the spread of an insect infestation,
(b) any seasonal site conditions or constraints that would limit the harvesting of the timber or special forest products, and
(c) the nature and location of the holder of the licence's operations in the timber supply area to which the proposed timber sale licence would apply.
(5) To be eligible to harvest the timber or special forest products, the holder of the licence must reply to the district manager within 14 days of receiving the notice agreeing to complete the harvest by the date specified in the notice.
(6) If a person to whom a notice under subsection (3) is sent
(a) does not reply and agree, within 14 days of receiving the notice, to harvesting the timber or special forest products, or
(b) replies and agrees, within 14 days of receiving the notice, to harvesting the timber or special forest products but does not do so by the date specified in the notice,
the district manager may enter into a timber sale licence authorizing the harvesting of some or all of the timber or special forest products, if the district manager considers the harvesting will not prevent the person from fulfilling their obligations under this Act or the Forest Practices Code of British Columbia Act.
(7) If a person to whom a notice under subsection (3) is sent replies and agrees within 14 days of receiving the notice to harvest the timber or special forest products but does not do so by the date specified in the notice, and as a result timber or special forest products are lost, destroyed or significantly reduced in value, the district manager must determine the amount that, in the district manager's opinion, would have been harvested if a timber sale licence had been issued under this section.
(8) The amount of timber or special forest products harvested under the timber sale licence entered into under this section, or the amount that the district manager determines under subsection (7) would have been harvested, is deemed to be harvested under the forest licence or timber sale licence of the person to whom the notice is sent under subsection (3)
(a) for the purposes of paragraphs (a) and (e) of the definition of "volume of timber harvested during a calendar year" in section 53 (1), if the licence is replaceable, or
(b) for the purposes of the cut control provisions of the licence, if the licence is non-replaceable.
74 (1) The regional manager, in a notice served on the holder of a timber licence, may require the holder to submit a timber cruise, to a standard required by the regional manager, of the area of land subject to the licence.
(2) If a timber cruise required under subsection (1) in respect of an area of land
(a) is not submitted when required or, if submitted, discloses no merchantable timber on the area,
(i) a timber licence must not be entered into with respect to the area, and
(ii) an existing timber licence over the area, despite its terms and conditions or this Act, expires on the next anniversary of the day of its issue, or
(b) discloses that a portion of the area is not covered by merchantable timber,
(i) the portion, if the regional manager so orders, must be surveyed by and at the expense of the holder of the licence, and
(ii) the regional manager, in a notice served on its holder, may
(A) delete the portion from an existing timber licence over the area, and
(B) exclude the portion from a future timber licence to be entered into for the area.
75 No agreement made under this Act prevents or impedes the government from using, or granting the use of, Crown land for any purpose that the regional manager considers is compatible with timber harvesting.
76 (1) In addition to any penalty, charge or order under this Act or the regulations or the Forest Practices Code of British Columbia Act or the regulations made under that Act, the regional manager or district manager may suspend, in whole or in part, rights under an agreement if its holder
(a) made a material misrepresentation, omission or misstatement of fact in the application for the agreement or in information provided in the application,
(b) made a material misrepresentation, omission or misstatement of fact in an operational plan, as defined in the Forest Practices Code of British Columbia Act,
(c) failed to perform an obligation to be performed under the agreement, or
(d) failed to comply with the requirements of this Act or the regulations or the Forest Practices Code of British Columbia Act or the regulations or the standards made under that Act.
(2) Without limiting subsection (1), a regional manager or district manager may suspend, in whole or in part, rights under a major licence or woodlot licence that is replaceable, if its holder fails to comply with a requirement to establish a free growing stand, as defined in the Forest Practices Code of British Columbia Act, imposed on the holder under that Act in respect of a major licence or woodlot licence that is non-replaceable.
(3) Before rights are suspended under subsection (1) or (2), the regional manager or district manager must serve a notice on the holder of the agreement specifying the reason for the suspension of rights and a date, at least 5 days after the date of service, on which the suspension takes effect.
(4) A suspension of rights takes effect on the date specified in the notice and continues until the rights are reinstated by the regional manager or district manager or cancelled under this Act.
(5) On request of the holder, the regional manager or district manager must allow the holder an opportunity to be heard and must rescind the notice if he or she considers that the holder is not subject to subsection (1).
(6) On the application of the holder of the agreement the regional manager or district manager must reinstate rights suspended under this section if the holder is performing the holder's obligations and is complying with this Act and the regulations.
77 (1) If rights are under suspension
(a) the chief forester may cancel a tree farm licence or pulpwood agreement,
(b) the regional manager may cancel an agreement or road use permit other than an agreement referred to in paragraph (a), and
(c) the district manager may cancel an agreement or road use permit other than a forest licence or an agreement referred to in paragraph (a).
(2) At least 3 months before cancelling an agreement or road use permit the chief forester, regional manager or a district manager, as the case may be, must serve on its holder a written notice of cancellation specifying the grounds of cancellation and the day on which cancellation takes effect.
(3) If within 30 days after a notice of cancellation has been served the holder so requests, the chief forester, regional manager or a district manager, as the case may be, must give the holder an opportunity to be heard.
(4) A notice of cancellation may be rescinded or the day on which a cancellation takes effect may be postponed.
(5) Notice of a cancellation must be published in the Gazette.
78 (0.1) In this section, "small business agreement" means
(a) a timber sale licence, or
(b) a forest licence
for which applications were restricted to persons registered in one or more categories of small business forest enterprises.
(1) If a person who is a small business forest enterprise within the meaning of the regulations
(a) makes a material misrepresentation, omission or misstatement of fact in
(i) the person's application for registration under the regulations or in information furnished with the application,
(ii) an application for a small business agreement or in information furnished with the application, or
(iii) an operational plan, as defined in the Forest Practices Code of British Columbia Act,
(b) fails to perform an obligation to be performed by the person under a small business agreement, or
(c) fails to comply with this Act or the regulations or the Forest Practices Code of British Columbia Act or the regulations or the standards made under that Act,
the regional manager or district manager, in addition to any action that may be taken under this Act, may by notice served on that person do all or any of the following:
(d) disqualify that person, indefinitely or for a specified period, from being registered as a small business forest enterprise;
(e) disqualify that person from making an application under Part 3 for a small business agreement, either in person or through an agent, for a period not exceeding 2 years after the date of the notice served on the person by the regional manager or district manager;
(f) cancel any small business agreements held by the person;
(g) suspend, in whole or in part, rights in any small business agreements held by the person.
(2) The regional manager or the district manager may impose conditions that a person referred to in subsection (1) (d) must comply with before a disqualification under that section is lifted.
(3) Sections 76 and 77 do not apply to a cancellation or suspension under subsection (1) (f) or (g).
79 (1) Despite the expiry, surrender, suspension or cancellation of a holder's agreement, the holder is liable
(a) to pay the rent, fees, costs and penalties owing to the government in respect of the agreement,
(b) to perform all other obligations under the agreement,
(c) to perform all other obligations imposed by or under this Act or the regulations or the Forest Practices Code of British Columbia Act or the regulations or the standards made under that Act with respect to the agreement, and
(d) to pay to the government all other money required by or under this Act to be paid to the government in respect of the agreement
incurred before its expiry, surrender, suspension or cancellation.
(2) In this section, references to an agreement are to be read as including references to a cutting permit, road permit or road use permit issued to the holder of the agreement.
80 No compensation is payable by the government and proceedings must not be commenced or maintained to claim compensation from the government or to obtain a declaration that compensation is payable by the government in respect of an expiry, failure to extend, reduction, deletion or deeming, or a reduction in an allowable annual cut as a result of a determination or a deeming, under any of:
(a) the following provisions of this Act: sections 8 (1) and (2); 9 (3) and (4); 27 (a); 60 (except as provided in it); 63 to 74;
(b) the following provisions of the Forest Act, R.S.B.C. 1979, c. 140: sections 15 (1); 19 (b) and (c); 33 (1) and (5); 37 (1); 39 (1);
(c) the following provisions of the Forest Act, R.S.B.C. 1979, c. 140: section 44 (3) before its repeal; section 95 before its repeal;
81 (1) To the extent provided in the regulations, the issuance of a cutting permit may be refused or have special conditions attached if an agreement provides for cutting permits and the district manager determines that
(a) rights under the agreement are under suspension, or
(b) the holder of the agreement has failed to
(i) [Repealed 1997-48-12.]
(ii) provide security or a deposit required under this Act or the regulations or the Forest Practices Code of British Columbia Act or the regulations made under that Act,
(iii) perform an obligation under the agreement to be performed by the holder in respect of an area of land specified in
(A) a cutting permit previously issued under the agreement, or
(B) a road permit or road use permit associated with the agreement, or
(iv) comply with a requirement of the Forest Practices Code of British Columbia Act or the regulations or the standards made under that Act in respect of an area of land referred to in subparagraph (iii).
(2) The refusal to issue a cutting permit under subsection (1) may continue until
(a) the suspension is rescinded,
(b) the suspended rights are reinstated, or
(c) the holder of the agreement
(i) [Repealed 1997-48-12.]
(ii) provides the required security or deposit,
(iii) performs the obligation to be performed under the agreement in respect of land referred to in subsection (1) (b) (iii), or
(iv) complies with the requirement of the Forest Practices Code of British Columbia Act or the regulations or the standards made under that Act in respect of land referred to in subsection (1) (b) (iii).
(3) To the extent provided in the regulations, the minister, regional manager or district manager, as the case may be, may reject an application for any of the following on either of the grounds set out in subsection (4):
(a) an agreement listed in section 12;
(b) a permit not listed in section 12 that is issued under this Act or under an agreement;
(c) a permit under the Forest Practices Code of British Columbia Act.
(4) The grounds for rejection referred to in subsection (3) are that the applicant is the holder of an agreement or permit listed in that subsection and
(a) rights under the agreement or permit so held are under suspension, or
(b) the applicant, in respect of the agreement or permit so held has failed to provide, perform or comply as referred to in subsection (1) (b) (ii), (iii) or (iv).
(5) An application for any of the following may be refused on either of the grounds set out in subsection (6):
(a) an agreement listed in section 12;
(b) a permit not listed in section 12 that is issued under this Act or under an agreement;
(c) a scale site authorization under section 95 of this Act;
(d) a permit under the Forest Practices Code of British Columbia Act.
(6) The grounds for refusal referred to in subsection (5) are that the applicant, or a person not at "arm's length", as defined in the Income Tax Act (Canada), from the applicant
(a) has not paid stumpage or other money payable to the government by the due date under section 130, or
(b) has not made arrangements satisfactory to the regional manager or district manager to pay the stumpage or other money.