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FOREST ACT — continued

[RSBC 1996] CHAPTER 157

[Updated to November 2, 1999]

Part 7 – Payments to the Government

Amount of stumpage

103 Subject to sections 107 and 108, if stumpage is payable to the government in respect of Crown timber under section 104 or under an agreement entered into under this Act, the amount payable must be calculated by multiplying the volume or quantity of the timber

(a) reported in a scale made under Part 6, or

(b) calculated under section 106 using information provided by a cruise of the timber

by the rate of stumpage applicable to the timber under section 105 when the timber is scaled.

Stumpage rate for timber licence and licence to cut

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) a timber licence, or

(b) a licence to cut

must pay stumpage to the government at rates determined under section 105 for timber that is cut under the licence and scaled.

(2) Despite another Act or a grant of Crown land, no royalty is reserved or payable to the government in respect of timber cut from private land and scaled after January 1, 1979.

(3) Despite subsection (1), no stumpage is payable in respect of timber cut on land granted by Canada by letters patent and situated within the Railway Belt or Peace River Block.

Stumpage rate determined

105 (1) Subject to the regulations made under subsections (6) and (7), if stumpage is payable to the government under an agreement entered into under this Act, the rates of stumpage must be determined, redetermined and varied by an employee of the ministry identified in the policies and procedures referred to in paragraph (b),

(a) at the times specified by the minister, and

(b) in accordance with the policies and procedures approved for the forest region by the minister.

(2) Rates, policies and procedures under subsection (1) may be different for different timber, places, transactions or holders of agreements entered into under this Act.

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

(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 Column 2

Percentage of

Time Period Stumpage Rate

on and after April 1, 1995 to and including 60
March 31, 1996

on and after April 1, 1996 to and including 67
March 31, 1997

on and after April 1, 1997 to and including 73
March 31, 1998

on and after April 1, 1998 to and including 80
March 31, 1999

on and after April 1, 1999 to and including 87
March 31, 2000

on and after April 1, 2000 to and including 93
March 31, 2001

on and after April 1, 2001 100

(5) Within 30 days after the minister approves the policies and procedures for a forest region, they must be filed with the regional manager for the forest region who must make them available for inspection by any person.

(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 order that stumpage rates applicable to all timber or a class of timber in an area of British Columbia or cut under an agreement are to be lower than the rates determined under subsections (1) and (6), for a period not exceeding one year.

Cruise instead of scale

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

More than one rate

107 If the regional manager considers it appropriate and more than one stumpage rate applies to timber cut in a timber harvesting operation, a single rate of stumpage, calculated as the average of the rates that otherwise would be applicable and weighted according to the respective volumes of timber estimated by the regional manager to be subject to each rate, is payable on the timber.

Rate on unscaled or incorrectly scaled timber

108 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 regional manager's estimate of the volume or quantity of the timber by the rate of royalty or stumpage, as the case may be, that the regional manager considers would have applied if the timber had been scaled correctly under Part 6.

Small Business Forest Enterprise Account

109 (1) There is established as part of the consolidated revenue fund an account known as the Small Business Forest Enterprise Account.

(2) All small business forest enterprise revenue must be credited to the Small Business Forest Enterprise Account.

(3) Subject to subsection (4), money in the Small Business Forest Enterprise Account must be expended only

(a) to defray the costs of

(i) preparing forest development plans and logging plans, as these are defined in the Forest Practices Code of British Columbia Act, for timber sale licences that yield small business forest enterprise revenue, and

(ii) carrying out assessments to formulate these plans,

(b) to defray the costs of meeting the requirements of section 70 (2) and (4) of the Forest Practices Code of British Columbia Act in respect of an area of land covered by a silviculture prescription prepared under section 22 (1) (a) and (1.1) of that Act, and

(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 small business forest enterprise revenue.

(4) The Treasury Board, after consultation with the minister, may direct that money not required for the purposes set out in subsection (3) be transferred from the Small Business Forest Enterprise Account to the general fund of the consolidated revenue fund.

Credit to stumpage

110 (1) If, under an agreement made under this Act,

(a) a person incurs an expense that is not considered in the determination of stumpage rates respecting work on or relating to a seed orchard,

(b) the work is approved in advance by the chief forester,

(c) all or part of the expense of performing the work or a formula for ascertaining the expense is approved by the chief forester, and

(d) the work is performed to the satisfaction of the chief forester,

the expense that is approved, or that is ascertained according to the formula, must be applied as a credit against stumpage payable by the person, or the subsequent holder of the agreement to which the expense relates, in respect of timber harvested in a prescribed area of British Columbia.

(2) If, under an agreement made under this Act,

(a) a person performs on Crown land work that is not considered in the determination of stumpage rates by

(i) constructing a logging access road,

(ii) applying reforestation or other silvicultural treatment, or

(iii) carrying out another responsibility,

(b) the work is approved in advance by the regional manager,

(c) all or part of the expense of performing the work, or a formula for ascertaining the expense, is approved by the regional manager, and

(d) the work is performed to the satisfaction of the regional manager,

the expense that is approved, or that is ascertained according to the formula, must be applied as a credit against stumpage payable by the person, or the subsequent holder of the agreement to which the expense relates, in respect of timber harvested in a prescribed area of British Columbia.

(3) Subsection (2) does not apply in respect of work that a person is obliged, under the agreement, this Act or the regulations or the Forest Practices Code of British Columbia Act or the regulations or the standards made under that Act, to carry out at the person's own expense.

Annual rent

111 (1) Despite another Act or an agreement, the holder of a forest licence, timber sale licence, timber licence, tree farm licence, community forest agreement or woodlot licence entered into under this Act must pay to the government on or before a date specified by the minister, annual rent at the rates prescribed by the Lieutenant Governor in Council.

(2) If a timber licence expires under Part 3, Division 5, and is replaced by a timber licence, annual rent that is paid and attributable to the unexpired portion of its term must be credited to the annual rent payable for the first year of the term of the timber licence.

(3) Despite subsection (1), if the annual rent payable in respect of a timber sale licence is less than $25, the regional manager or district manager must exempt the holder from the payment of the annual rent.

(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,

(b) forms of agreements, or

(c) community forest agreements which are identified by the number of a particular agreement.

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 land referred to in sections 35 (1) (b) (i), 37 (1) and (2) and 38 (1), if the tree farm licence is entered into under this Act, as the case may be, 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 volume authorized to be harvested under the licence that the regional manager or district manager determines is attributable to land referred to in section 45 (b) (ii), multiplied by the annual rent rate prescribed by the Lieutenant Governor in Council for woodlot licences.

Annual rent for council

112.1 (1) If authorized by the regulations and in accordance with the regulations, the Lieutenant Governor in Council, in prescribing the rate of annual rent for a woodlot licence, under section 111 (1), may allocate a portion of that rate to represent money payable to the Woodlot Product Development Council by producers, under the Farming and Fishing Industries Development Act, in respect of a levy established by the council under that Act.

(2) The revenue from the portion of annual rent payable for woodlot licences that is attributable to the allocated portion of the rate of annual rent under subsection (1)

(a) must be paid out of the consolidated revenue fund to the Woodlot Product Development Council, and

(b) when so paid, is deemed to have been paid in satisfaction of the levy referred to in subsection (1).

Timber cruise

113 (1) If Crown timber is to be disposed of under this Act, the regional manager or district manager may require that the person who requests the disposal of the timber provide, at the person's own expense, a cruise of the timber by a cruiser approved by the regional manager or district manager.

(2) If a person, at the person's own expense, has provided a cruise of timber as required under subsection (1), but is not granted a licence or cutting permit in respect of the timber, the person who is granted a licence or cutting permit, as a condition of receiving it, must reimburse the costs of the cruise to the person who provided the cruise.