This archived statute consolidation is current to September 15, 2003 and includes changes enacted and in force by that date. For the most current information, click here.

[Current to B.C. Regulations Bulletin October 6, 2003]

FOREST ACTContinued 
[RSBC 1996] CHAPTER 157

Part 3 — Disposition of Timber by the Government

Division 1 — Forms of Rights to Crown Timber

Rights to Crown timber

11 Subject to the Land Act and the Park Act, rights to harvest Crown timber must not be granted by or on behalf of the government except in accordance with this Act and the regulations.

Form of agreements

12 (1) A district manager, a regional manager or the minister, on behalf of the government, may enter into an agreement granting rights to harvest Crown timber in the form of a

(a) forest licence,

(b) timber sale licence,

(c) timber licence,

(d) tree farm licence,

(e) pulpwood agreement,

(f) community forest agreement,

(g) woodlot licence,

(h) free use permit,

(i) licence to cut,

(j) road permit, or

(k) Christmas tree permit.

(2) A timber sales manager, on behalf of the government, may enter into an agreement granting rights to harvest Crown timber in the form of a timber sale licence or road permit.

Division 2 — Forest Licences

Applications

13 (1) On request or on the minister's own initiative the minister or a person authorized by the minister, by advertising in the prescribed manner, may invite applications for a forest licence.

(1.1) [Repealed 2003-32-4.]

(2) The regional manager must not enter into a forest licence under this section unless it is advertised as provided in subsection (1).

(3) An application for a forest licence must

(a) be in the form specified by the minister or a person authorized by the minister,

(b) be submitted in a sealed container to the minister or a person authorized by the minister,

(c) if required in the invitation for applications advertised under subsection (1), include a proposal, providing information the minister or a person authorized by the minister requests, for

(i) continuing, establishing or expanding a timber processing facility in British Columbia, and

(ii) meeting the objectives of the government in respect of any of the items referred to in subsection (4), and

(d) include an offer by the applicant to pay to the government, in addition to other amounts payable under this Act and the regulations, stumpage under Part 7 and a bonus offer, if any, in the amount tendered in the application.

(4) The minister or a person authorized by the minister must evaluate each application, including its potential for

(a) creating or maintaining employment opportunities and other social benefits in British Columbia,

(b) providing for the management and utilization of Crown timber,

(c) furthering the development objectives of the government,

(d) meeting objectives of the government in respect of environmental quality and the management of water, fisheries, wildlife and cultural heritage resources, and

(e) contributing to government revenues.

(5) The minister or a person authorized by the minister may

(a) approve one or more applications,

(b) agree with an applicant to dispose of a smaller volume of timber than was applied for or to include other terms and conditions the minister or a person authorized by the minister considers necessary, or

(c) reject any or all applications.

(6) If the minister or a person authorized by the minister approves an application the regional manager and the applicant must enter into an agreement in the form of a forest licence.

(7) This section does not apply to a forest licence entered into under sections 15 to 17 and 47.3.

Content of forest licence

14 A forest licence

(a) must, subject to sections 15 to 17 and 58, be for a term not exceeding 20 years,

(b) must specify a timber supply area within which its holder may harvest Crown timber,

(c) subject to sections 15 to 17, must specify an allowable annual cut that may be harvested under the licence,

(d) must require its holder to pay to the government, in addition to other amounts payable under this Act and the regulations, stumpage under Part 7 and a bonus offer, if any, in the amount tendered in the application for the forest licence,

(e) must provide for cutting permits to be issued by the district manager, or a forest officer authorized by the district manager, within the limits provided in the forest licence and subject to this Act and the Forest Practices Code of British Columbia Act, to authorize its holder to harvest the allowable annual cut, from specified areas of land within the timber supply area specified in the forest licence,

(f) must require its holder, in accordance with a proposal referred to in section 13 (3) (c), as modified at the request or with the approval of the minister or a person authorized by the minister,

(i) to continue to operate, to construct or to expand a timber processing facility, and

(ii) to carry out specified measures to meet the objectives of the government in respect of any of the items referred to in section 13 (4),

(g) may make provision for timber to be harvested by persons under contract with its holder,

(g.1) if the licence provides that it is entered into with a first nation or its representative to implement or further an agreement between the first nation and the government respecting treaty-related measures, interim measures or economic measures, the licence must state that it is a condition of the licence that the first nation comply with the agreement, and

(h) may include other terms and conditions, consistent with this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, determined by the regional manager.

Replacement

15 (1) In this section, "forest licence" means a forest licence other than one that provides that a replacement for it must not be offered.

(1.1) During the 6 months beginning on any of the fourth to eighth anniversaries of a forest licence, the minister or a person authorized by the minister may offer the holder of the forest licence a replacement for it, after first giving the holder at least 6 month’s notice of intent to offer the replacement.

(1.2) During the 6 months beginning on the ninth anniversary of a forest licence for which a replacement has not by then been offered under subsection (1.1), the minister or a person authorized by the minister must offer the holder of the forest licence a replacement for it.

(2) Despite subsection (1), if the minister or a person authorized by the minister determines that

(a) rights under the existing forest licence are under suspension, or

(b) the holder of the existing forest licence has failed to

(i) pay stumpage or other money payable in respect of timber harvested under the forest licence or a road permit associated with the forest licence,

(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 in respect of the forest licence or a road permit associated with the forest licence,

(iii) perform an obligation under the forest licence to be performed by the holder in respect of an area of land specified in

(A) a cutting permit previously issued under the forest licence, or

(B) a road permit associated with the forest licence, 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),

the minister or a person authorized by the minister, to the extent provided in the regulations,

(c) may decline to offer a replacement for the existing forest licence until

(i) the suspension is rescinded,

(ii) the suspended rights are reinstated, or

(iii) the holder of the existing forest licence

(A) pays the stumpage or other money payable,

(B) provides the required security or deposit,

(C) performs the obligation to be performed under the existing forest licence in respect of land referred to in paragraph (b) (iii), or

(D) 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 paragraph (b) (iii), and

(d) may offer a replacement with special conditions.

(3) A forest licence offered under this section must

(a) have a term beginning

(i) on the earlier of

(A) the next anniversary of the existing forest licence being replaced under the offer, and

(B) the tenth anniversary of the existing forest licence being replaced under the offer, or

(ii) if the minister or a person authorized by the minister exercises the power conferred under subsection (2) (c), on a date to be determined by the minister or a person authorized by the minister,

(b) be for a term equal to

(i) 15 years, or

(ii) if the minister or a person authorized by the minister exercises the power conferred under subsection (2) (c), a period, not exceeding the period referred to in subparagraph (i), to be determined by the minister or a person authorized by the minister,

(c) specify the timber supply area specified in the existing forest licence,

(d) subject to takings, reductions and deletions authorized or required under this Act, specify an allowable annual cut that may be harvested under it equal to the allowable annual cut under the existing forest licence, and

(e) include other terms and conditions, consistent with this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, set out in the offer.

(4) A notice of an offer of replacement made under subsection (1.1) or (1.2) and a notice of intent referred to in subsection (1.1) must be published in the prescribed manner.

(5) An offer made under this section may be

(a) amended, and

(b) accepted by written notice of acceptance served on the regional manager not later than 3 months after the offer is served.

(6) If an offer made under this section is accepted

(a) an agreement in the form of a forest licence containing the terms and conditions set out in the offer, including amendments, must be entered into by the regional manager and the holder of the forest licence, and

(b) the forest licence then in force expires on the commencement of the replacement licence.

(7) If an offer made under this section is not accepted, the existing forest licence continues in force until its term expires, after which it has no further effect.

(8) No forest licence is renewable.

Transition for forest licence replacement

15.1 (1) If an offer of a replacement for a forest licence

(a) was required to be made under section 15 within the 18 month period immediately preceding the date on which this section comes into force, and

(b) was not made within the 18 month period,

the offer of replacement, when made, must conform to section 15 of this Act as amended by the Forest (Revitalization) Amendment Act (No. 2), 2003.

(2) If an offer of a replacement for a forest licence

(a) was required to be made under section 15 within the 18 month period immediately preceding the date on which this section comes into force, and

(b) was made within this 18 month period,

the offer may be withdrawn if the person to whom the offer was made consents to the withdrawal of the offer.

(3) If an offer is withdrawn under subsection (2), the minister or person authorized by the minister must offer a replacement for the forest licence which offer conforms to section 15 of this Act as amended by the Forest (Revitalization) Amendment Act (No. 2), 2003.

Surrender of tree farm licence

16 (1) The holder of one or more tree farm licences or of a combination of one or more tree farm licences and one or more

(a) timber sale licences, and

(b) forest licences

may apply to the minister to surrender all or part of one or more tree farm licences or all or part of a combination of one or more tree farm licences and any or all of the licences referred to in paragraphs (a) and (b) for replacement by one or more forest licences under subsection (2) or by a combination of one or more tree farm licences under subsection (3) and one or more forest licences under subsection (2).

(2) If the minister has approved an application under subsection (1), the regional manager, in respect of the surrendered licences or surrendered portions of them, must enter with their holder into one or more forest licences

(a) for a term of 15 years,

(b) that specify one or more timber supply areas within which the holder may harvest Crown timber, and

(c) that, in total, specify an allowable annual cut equal to the total, or a lesser portion of the total that the regional manager and the holder agree on, of

(i) the allowable annual cuts specified in the surrendered timber sale licences and forest licences, plus increases and minus decreases, if any, in the allowable annual cuts made by the government since they were entered into, and

(ii) the portion of the allowable annual cuts available to the tree farm licence holder at the time of the surrender that the chief forester determines is attributable to the Crown land in the portions of the tree farm licences that are surrendered and on which the timber is not otherwise encumbered.

(3) If part of a tree farm licence is surrendered under subsection (1), the minister, in respect of the portion that is not surrendered, must enter with the holder into a new tree farm licence.

(4) The minister must not enter into a new tree farm licence under subsection (3) until the chief forester approves a management plan for the proposed tree farm licence.

(5) A notice of the surrender and proposed replacement under subsection (1) must be published in the prescribed manner.

(6) If a tree farm licence to be entered into under subsection (3) is proposed to include Crown lands that were not comprised in a tree farm licence or part of a tree farm licence surrendered under subsection (1), the procedures specified in section 34 (2) to (7) apply.

Surrender of timber sale licences

17 (1) With the approval of the regional manager, the holder of one or more timber sale licences may surrender it or them for replacement by one or more forest licences under subsection (2).

(2) In respect of all timber sale licences surrendered under subsection (1), the regional manager must with their holder enter into one or more forest licences

(a) for a term of 15 years,

(b) that specify one or more timber supply areas within which the holder may harvest Crown timber, and

(c) that, in total, specify an allowable annual cut equal to the total of the allowable annual cuts specified in the surrendered timber sale licences, plus increases and minus decreases, if any, in the allowable annual cuts made by the government since they were entered into.

(3) The forest licence, for any of the first 5 years of its term, may provide for an allowable annual cut that differs from the allowable annual cut determined under subsection (2) (c).

(4) A notice of a surrender must be published in the prescribed manner.

Transfer to other timber supply area

18 With the approval of the minister and the consent of the holder of a timber sale licence that makes provision for one or more cutting permits or a forest licence, all or part of the cutting rights authorized under the timber sale licence or forest licence may be transferred from one timber supply area to another for a term determined by the minister.

Consolidation and subdivision of forest licences

19 (1) With the consent of the licensee the minister may

(a) consolidate 2 or more forest licences in the same timber supply area into a forest licence,

(b) partition or subdivide a forest licence into 2 or more forest licences in the same timber supply area,

(c) reduce the allowable annual cut under a forest licence and increase the allowable annual cut under one or more other forest licences in the same timber supply area by a volume equal to the reduction,

(d) amend or cancel a forest licence, and

(e) enter into one or more forest licences in the same timber supply area to implement any changes under this subsection.

(2) The allowable annual cut under all forest licences in a timber supply area must remain the same both before and after any changes under subsection (1).

(3) Despite section 14 (a), a forest licence that is amended or entered into under this section must not expire later than the earliest expiry date of the forest licence it replaces or amends.

Division 3 — Timber Sale Licences

Applications

20 (1) On request or on his or her own initiative, the regional manager, timber sales manager or district manager, by advertising in the prescribed manner, may invite applications for a timber sale licence.

(2) Subject to sections 21, 23 and 24, no timber sale licence may be entered into unless the regional manager, timber sales manager or district manager advertises as provided in subsection (1).

(3) The regional manager, timber sales manager or district manager

(a) may specify that applications for the timber sale licence are to be accepted only from one or more categories of  BC timber sales enterprises, and

(b) must specify that an applicant may propose only a bonus bid or only a bonus offer and, if the regional manager, timber sales manager or district manager specifies that only

(i) a bonus bid may be proposed, he or she must specify whether a bonus bid, if any, must be submitted orally in auction or by written tender in a sealed container, or

(ii) a bonus offer may be proposed, a bonus offer, if any, must be submitted in a sealed container.

(4) An application for a timber sale licence must be in the form required by the regional manager or timber sales manager and must include an offer by the applicant to pay to the government, in addition to other amounts payable under this Act and the regulations, stumpage under Part 7 and the bonus bid or bonus offer, if any, in the amount tendered.

(5) The regional manager, timber sales manager or district manager

(a) subject to section 81 (3), must approve the application submitted under this section, meeting the requirements of this section, that contains the highest bonus bid or bonus offer, as the case may be,

(b) if the regional manager, timber sales manager or district manager exercises the power to reject an application under section 81 (3), must approve the application submitted under this section, meeting the requirements of this section, that contains the next highest bonus bid or bonus offer, as the case may be, or

(c) at the direction of the minister, must decline to approve any applications.

(6) An agreement in the form of a timber sale licence must be entered into by the regional manager, timber sales manager or district manager and the applicant for the licence whose application is approved.

(7) This section does not apply to a timber sale licence entered into under section 47.3.

Section Repealed

21 [Repealed 2003-31-12.]

Content of timber sale licence

22 A timber sale licence

(a) subject to section 58, must be for a term not exceeding 10 years,

(b) subject to section 26 (4) (a), must describe

(i) one or more areas of land within which its holder may harvest Crown timber, or

(ii) the location of logs that are being sold,

(c) may specify

(i) an allowable annual cut that may be harvested under the timber sale licence, or

(ii) an estimate of the volume of timber that may be harvested from an area of land described in the timber sale licence,

(d) if it specifies an allowable annual cut, must provide for cutting permits to be issued by the district manager, or a forest officer authorized by the district manager, within the limits provided in the timber sale licence and subject to this Act and the Forest Practices Code of British Columbia Act, to authorize its holder to harvest the allowable annual cut from specified areas of land within the area or areas of land described in the timber sale licence,

(e) if it does not specify an allowable annual cut, may provide for cutting permits to be issued by the district manager, within the limits provided in the timber sale licence and subject to this Act and the Forest Practices Code of British Columbia Act, to authorize its holder to harvest Crown timber from specified areas of land within the area or areas of land described in the timber sale licence,

(e.1) that is a BC timber sales agreement may include provisions specifying one or more standard making bodies and requiring the holder of the licence to conduct its operations under the licence in accordance with principles, standards and criteria established by the standard making body or bodies,

(f) must require its holder to pay to the government, in addition to other amounts payable under this Act and the regulations, stumpage under Part 7 and the bonus bid or bonus offer, if any, in the amount tendered,

(f.1) if the licence provides that it is entered into with a first nation or its representative to implement or further an agreement between the first nation and the government respecting treaty-related measures, interim measures or economic measures, the licence must state that it is a condition of the licence that the first nation comply with the agreement, and

(g) must include other terms and conditions, consistent with this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, determined by the regional manager, timber sales manager or district manager.

No advertising required

23 (1) Despite sections 20 and 22 the regional manager, timber sales manager or district manager, without advertising or accepting applications from other persons, may enter into an agreement in the form of a timber sale licence if

(a) the timber sale licence is required to satisfy the obligations of the government under a pulpwood agreement,

(b) an applicant for a tree farm licence, in the minister's opinion, requires for the applicant's current operations timber on the land described in the application, and the land described in the application is under reserve under section 33 (8),

(c) timber, in the opinion of the regional manager, timber sales manager or district manager,

(i) is in danger, as a result of an insect infestation, fire, disease or windthrow, of being significantly reduced in value, lost or destroyed, and

(ii) must be removed to prevent the reduction in value, loss or destruction,

(d) Crown land is to be used for experimental purposes and, in the opinion of the regional manager, timber sales manager or district manager, timber is to be harvested under controlled scientific or investigative conditions,

(e) a timber sale licence has been advertised, no applications are made within the time specified in the advertising, and the application is made within 60 days after that time,

(f) the timber sale licence is with a person that is contracted by the government to carry out an activity funded through the BC Timber Sales Account and a timber sales manager considers it desirable to remove timber from the contract area in conjunction with the contract, or

(g) the timber sale licence is with a person carrying out activities under a range use plan or under a consent under section 101 or 102 of the Forest Practices Code of British Columbia Act.

(2) Despite sections 20 and 22, the regional manager or timber sales manager, without advertising or accepting applications from other persons, may enter into an agreement in the form of a timber sale licence if the volume of timber specified in the application is less than 2 000 m3 and only one application is made for the timber.

(3) Despite this Division, the regional manager, a timber sales manager, a district manager or a forest officer authorized by any of them, without advertising or accepting applications from other persons, may enter into an agreement in the form of a timber sale licence, if the estimate of the volume of timber to be harvested under the licence is not greater than 500 m3.

Designated applicants

24 (1) In this section, "designated applicant" means the holder of a timber sale licence

(a) entered into under the former Act, that was in force on January 1, 1979, and

(i) to which section 17 (1a) of the former Act applied, or

(ii) that the regional manager has designated to be subject to subsection (3), or

(b) entered into pursuant to a request under subsection (3) by its holder or by a previous holder of the licence.

(2) Despite section 20, the regional manager or a district manager with the approval of the regional manager, without advertising or accepting applications from other persons, may enter into an agreement in the form of a timber sale licence with a designated applicant if the designated applicant makes a request under subsection (3).

(3) A designated applicant, within one year before the expiry of one or more timber sale licences referred to in subsection (1), may

(a) request one or more timber sale licences that would

(i) replace the timber sale licences that will expire within one year, and the timber sale licences that are surrendered under paragraph (b),

(ii) authorize timber to be harvested in one or more timber supply areas within which the areas covered by the timber sale licences described in subparagraph (i) are situated,

(iii) subject to subsection (6), specify the allowable annual cut for which the regional manager determines that the designated applicant is eligible in that capacity in respect of the timber sale licences described in subparagraph (i), and

(iv) have a term commencing

(A) not later than the expiry of the timber sale licence if one timber sale licence is being replaced, or

(B) on a date determined by the regional manager or district manager if 2 or more timber sale licences are being replaced, and

(b) surrender one or more timber sale licences referred to in subsection (1).

(4) Despite subsection (3), if the regional manager or district manager determines that

(a) rights under a timber sale licence referred to in subsection (1) are under suspension, or

(b) the designated applicant has failed to

(i) pay stumpage or other money payable in respect of timber harvested under a timber sale licence referred to in subsection (1) or a road permit associated with the timber sale licence,

(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 in respect of the timber sale licence referred to in subsection (1) or a road permit associated with the timber sale licence,

(iii) perform an obligation under the timber sale licence referred to in subsection (1) to be performed by the designated applicant in respect of an area of land specified in

(A) a cutting permit previously issued under the timber sale licence, or

(B) a road permit associated with the timber sale licence, 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),

the regional manager or district manager, to the extent provided in the regulations,

(c) may decline to replace a timber sale licence referred to in subsection (1) until

(i) the suspension is rescinded,

(ii) the suspended rights are reinstated, or

(iii) the designated applicant

(A) pays the stumpage or other money payable,

(B) provides the required security or deposit,

(C) performs the obligation to be performed under the timber sale licence in respect of land referred to in paragraph (b) (iii), or

(D) 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 paragraph (b) (iii), and

(d) may replace the timber sale licence with a timber sale licence containing special conditions.

(5) A timber sale licence referred to in subsection (1) must not be replaced if the regional manager or district manager makes a determination under subsection (4) and the timber sale licence expires before

(a) the suspension is rescinded,

(b) the suspended rights are reinstated, or

(c) the designated applicant

(A) pays the stumpage or other money payable,

(B) provides the required security or deposit,

(C) performs the obligation to be performed under the timber sale licence in respect of land referred to in subsection (4) (b) (iii), or

(D) 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 (4) (b) (iii).

(6) A determination made by a regional manager under subsection (3) (a) (iii) must be equal to

(a) the allowable annual cut in respect of the timber sale licences described in subsection (3) (a) (i) for which the designated applicant was eligible under section 17 (1a) of the former Act, plus increases and minus decreases, if any, in the allowable annual cut made by the government, and

(b) if the regional manager so designates, all or part of the allowable annual cut specified in the timber sale licences that were not subject to section 17 (1a) of the former Act.

(7) The holder of a timber sale licence issued under subsection (2), the "original licence", may apply for and, subject to the original licence being surrendered, the regional manager or district manager and the applicant may enter into a non-replaceable timber sale licence having a volume not greater than 10 times the allowable annual cut of the original licence.

Division 4 — Forest Licence and Timber Sale Licence Area Restrictions

Permanent transfer to adjacent timber supply area

25 (1) Subject to subsection (2), the minister may

(a) direct that the right to harvest timber under a timber sale licence that specifies an allowable annual cut, or under any forest licence, be transferred from one timber supply area to an adjacent timber supply area specified by the minister, and

(b) amend the licence to give effect to the direction.

(2) The minister must not give a direction under subsection (1) transferring the right to harvest timber under a licence from one timber supply area to an adjacent timber supply area, unless

(a) the boundaries between the timber supply area specified in the licence and the adjacent timber supply area have been changed under this Act,

(b) the minister is satisfied that the change in boundaries increased the area of the adjacent timber supply area to a size sufficient to support the transferred right to harvest timber, and

(c) the holder of the licence consents.

Minister may impose area restrictions

26 (1) In this section, "original licence" means a timber sale licence or forest licence that is the subject of an order under subsection (2).

(2) If a timber supply area has been divided under section 7 (b), the minister may order that the allowable annual cut under a timber sale licence that specifies an allowable annual cut or under any forest licence

(a) be fully allocated to one of the timber supply areas resulting from the division, or

(b) be allocated, in the proportions specified in the order, between or among 2 or more of the timber supply areas resulting from the division.

(3) If an order is made under subsection (2), the regional manager, in accordance with subsection (4), must issue to the holder of the original licence one or more licences in substitution for the original licence.

(4) A licence issued under subsection (3)

(a) must specify one of the timber supply areas resulting from the division and authorize an allowable annual cut as necessary to give effect to the order of the minister under subsection (2),

(b) must be a timber sale licence if the original licence is a timber sale licence or be a forest licence if the original licence is a forest licence,

(c) must specify a term that expires on the expiry date of the original licence,

(d) is replaceable on the same terms and conditions as the original licence, if the original licence is replaceable under section 15, 23 or 24, and in that case, for the purpose of determining the obligations pertaining to replaceability under the new licence, the new licence is deemed to have been issued at the same time as the original licence, and

(e) subject to subsection (5), must otherwise be on the same terms and conditions as the original licence.

(5) After giving the holder of the original licence an opportunity to be heard, the regional manager, at the time of issuing a licence under subsection (3), may include in it terms and conditions that vary from those in the original licence to the extent only that the regional manager considers necessary in order to take into account the allocation referred to in subsection (2).

(6) A timber sale licence or forest licence issued to the holder of the original licence in accordance with subsections (3) and (4) is binding on the government and on that holder and is deemed to be an agreement, in the form of a timber sale licence or a forest licence, as the case may be, entered into by the regional manager and that holder under section 12.

(7) 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 the effect of this section on a forest licence or timber sale licence.

(8) This section applies to licences described in subsection (1) whether issued before, on or after September 22, 1993.

Division 5 — Timber Licences

Rights in tree farm licences

27 If a tree farm licence expires or otherwise terminates and is not replaced under section 36, a timber licence that is then in the tree farm licence area

(a) expires one year after the expiry or termination of the tree farm licence, and

(b) may be replaced by a timber licence under section 28.

Rights not in tree farm licence

28 (1) A person who holds a timber licence that is due to expire under section 27 (a) may submit to the regional manager, within 6 months after expiry or termination of the tree farm licence, a schedule proposing a time and a sequence for the orderly harvesting of the merchantable timber that is subject to the licence.

(2) After considering a schedule proposed under subsection (1), the regional manager, in a notice served on its holder within 3 months after receiving the schedule, must offer to the holder one or more timber licences that, subject to section 74,

(a) describe the Crown land subject to the timber licence, and

(b) expire on a date specified in the timber licence by the regional manager.

(3) The offer may be accepted by written notice served on the regional manager not later than 3 months after it is made.

(4) If the offer is accepted, the regional manager and the holder must enter into an agreement in the form of a timber licence.

(5) A notice of an offer made under subsection (3) must be published in the prescribed manner.

One timber licence

29 If the regional manager considers that efficient forest planning and management would be served, he or she must enter into one timber licence under section 28 (4) for 2 or more timber licences.

Consolidation of timber licences

29.1 (1) With the consent of the holder of a timber licence, the regional manager may consolidate 2 or more timber licences into a timber licence and, to achieve the consolidation, may do any of the following:

(a) partition or subdivide a timber licence into 2 or more timber licences;

(b) delete all or part of the licence area from a timber licence and add the deleted area to the licence area of another timber licence;

(c) cancel a timber licence if the area covered by the licence has been added to the licence area in another timber licence;

(d) amend a timber licence;

(e) enter into one or more timber licences covering the same land as was covered in the licences being consolidated, subdivided or partitioned.

(2) A timber licence that is amended or entered into under this section must not expire later than the latest expiry date of the timber licences it replaces or amends.

Content of timber licence

30 A timber licence must

(a) describe an area of Crown land over which it is to apply,

(b) be for a term determined under this Division,

(c) grant to its holder the exclusive right during its term to harvest all merchantable timber in the area of Crown land described in it,

(d) if the timber licence is in a tree farm licence area, require its holder to harvest timber in accordance with the tree farm licence and the management plan approved under it,

(e) provide for cutting permits to be issued by the district manager, or a forest officer authorized by the district manager, within the limits provided in the timber licence and subject to this Act and the Forest Practices Code of British Columbia Act, to authorize the holder of the timber licence to harvest Crown timber from specified areas of land within the area of Crown land described in the timber licence,

(f) require its holder to pay to the government, in addition to other amounts payable under this Act and the regulations, stumpage under Part 7, and

(g) include other terms and conditions, consistent with this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, determined by the regional manager.

Extension of term of timber licence

31 (1) If the regional manager considers that forest management would be improved by doing so, the regional manager, with or without the consent of the holder of a timber licence, may extend the term of the timber licence.

(2) An extension of a term under subsection (1) does not give rise to any right or eligibility for compensation under this Act or otherwise.

Non-timber use

32 (1) Unless a timber licence is in a tree farm licence area, if the minister determines that all or any part of the area of land that is subject to the licence is needed for a purpose other than timber production, the minister, in a notice served on the holder of the licence, may require that the merchantable timber on that area or that part be harvested within the time specified in the notice.

(2) On the expiry of the specified time, or of an extension of that time granted by the minister, the minister may delete from the licence the area of land described in the notice.

Division 6 — Tree Farm Licences

Applications

33 (1) On request or on the minister's own initiative, the minister, by advertising in the prescribed manner, may invite applications for a tree farm licence.

(2) The minister must not enter into a tree farm licence under this section unless he or she advertises as provided in subsection (1) and a public hearing is held on the applications.

(3) The application must be made to the minister in a form required by the minister and

(a) must include a description of every private tenure held by the applicant in and near the area of land proposed for the tree farm licence, and

(b) if requested by the minister in the advertising, must include a proposal, providing the information the minister requests, for the continuance, establishment or expansion of a timber processing facility in British Columbia.

(4) After a date specified in the advertising, the minister or the minister's designate must

(a) convene a public hearing in which any person may make a submission respecting applications for the tree farm licence, and

(b) determine the procedures for the public hearing.

(5) Following the public hearing the minister must evaluate each application, including its potential for

(a) creating or maintaining employment opportunities and other social benefits in British Columbia,

(b) providing for the management and utilization of Crown timber,

(c) furthering the development objectives of the government,

(d) meeting the objectives of the government in respect of environmental quality and the management of water, fisheries, wildlife and cultural heritage resources, and

(e) contributing to government revenues.

(6) The Lieutenant Governor in Council, on recommendation of the minister, may approve an application for the tree farm licence.

(7) The minister must not enter into an agreement in the form of a tree farm licence until the chief forester approves a management plan for the proposed tree farm licence area.

(8) The minister may reserve from disposition under this Act the timber in the area described in the advertising, pending the entering into of an agreement in the form of a tree farm licence or rejection of all applications made under this section.

(9) Subject to subsection (7), the minister must enter into an agreement in the form of a tree farm licence with an applicant whose application is approved under subsection (6).

(10) This section does not apply to a tree farm licence entered into under section 34, 36 or 39.

Surrender of forest and timber sale licences

34 (1) The holder of one or more, or a combination of,

(a) timber sale licences, and

(b) forest licences

in one or more timber supply areas may apply to the minister to surrender all or part of it or them for replacement by a tree farm licence under this section.

(2) The application must be made to the minister in a form required by the minister and must include a description of every private tenure, timber sale licence and forest licence held by the applicant in and near the area of land proposed for the tree farm licence.

(3) The minister must evaluate each application, including its potential for

(a) creating or maintaining employment opportunities and other social benefits in British Columbia,

(b) providing for the management and utilization of Crown timber,

(c) furthering the development objectives of the government,

(d) meeting the objectives of the government in respect of environmental quality and the management of water, fisheries, wildlife and cultural heritage resources, and

(e) contributing to government revenues.

(4) If the minister does not reject an application, the minister or his or her designate must

(a) convene a public hearing in which any person may make a submission respecting the application, and

(b) determine the procedures for the public hearing.

(5) The Lieutenant Governor in Council, on recommendation of the minister, may approve all or part of an application.

(6) The minister must not enter into an agreement in the form of a tree farm licence until the chief forester approves a management plan for the proposed tree farm licence area.

(7) Subject to subsection (6), the minister must enter into an agreement in the form of a tree farm licence with an applicant whose application is approved under subsection (5).

(8) In respect of all or part of the portion of the allowable annual cut of a licence surrendered under subsection (1) that is not replaced by a tree farm licence, the regional manager, with the approval of the minister, may enter into with the holder a forest licence under section 17 or a timber sale licence under section 24 (3).

(9) The allowable annual cut provided for by the licences issued under subsections (7) and (8) must not be less than 90% of the total of the allowable annual cut provided under the surrendered licence or licences.

(10) If the minister is satisfied that the holder of the licence has taken or will take additional steps that will support and encourage

(a) further processing of the timber resource in British Columbia,

(b) increased utilization of the forests, or

(c) equity in long term timber supplies and increased opportunities for industry growth and development,

the minister, in accordance with regulations made under this subsection, may increase the allowable annual cut provided by the licences issued under subsections (7) and (8) by an amount he or she considers appropriate but not exceeding an amount that will result in the allowable annual cut under the licences being 100% of the amount of the surrendered licence or licences.

(11) The minister may dispose of the remaining allowable annual cut, if any, in accordance with this Act.

Content of tree farm licence

35 (1) A tree farm licence entered into under this Act must

(a) subject to section 36 (3) (a), be for a term of 25 years,

(b) subject to sections 33, 34 and 39, describe a tree farm licence area composed of

(i) an area of Crown land, the timber on which is not otherwise encumbered, determined by the minister, and

(ii) the private tenures held by its holder that are determined by the minister,

(c) require its holder to pay to the government, in addition to other amounts payable under this Act and the regulations,

(i) for timber harvested under the tree farm licence from land referred to in paragraph (b) (i) and sections 37 (1) and (2) and 38 (1), stumpage under Part 7, and

(ii) for timber harvested from a timber licence included in the area described under paragraph (b) (ii), stumpage under Part 7,

(d) require its holder to submit for the approval of the chief forester, once every 5 years, or more often if the chief forester considers that special circumstances require, a management plan that meets all the following requirements:

(i) it is prepared by a professional forester in accordance with the requirements of the tree farm licence,

(ii) it includes inventories, prepared in the manner, presented in the format and meeting the specifications required under the tree farm licence, of the forest, recreation, fisheries, wildlife, range and cultural heritage resources in the tree farm licence area,

(iii) it is consistent with

(A) the tree farm licence,

(B) this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, and

(C) any objectives for resource management zones, landscape units, sensitive areas, recreation sites and trails and interpretive forest sites under the Forest Practices Code of British Columbia Act,

(iv) it proposes management objectives regarding

(A) management and utilization of the timber resources in the tree farm licence area, including harvesting methods and utilization specifications suitable to the types of timber and terrain specified in the tree farm licence,

(B) protection and conservation of the non-timber values and resources in the tree farm licence area, including visual quality, biological diversity, soils, water, recreation resources, cultural heritage resources, range land and wildlife and fish habitats,

(C) integration of harvesting activities in the tree farm licence area with use of the area for purposes other than timber production,

(D) forest fire prevention and suppression,

(E) forest health, including pest management,

(F) silviculture, and

(G) road construction, maintenance and deactivation,

(v) it includes proposals for meeting the proposed management objectives under subparagraph (iv), including measures to be taken, and specifications to be followed by the holder of the tree farm licence,

(vi) it specifies measures to be taken by the holder of the tree farm licence to identify and consult with persons using the tree farm licence area for purposes other than timber production,

(vii) it includes a timber supply analysis, prepared in the manner, presented in the format and meeting the specifications required under the tree farm licence, that analyzes the short term and long term availability of timber for harvesting in the tree farm licence area, including the impact of management practices on the availability of timber,

(viii) it includes an operational timber supply projection for the tree farm licence area that, in support of the timber supply analysis, indicates the availability of timber by

(A) identifying

(I) the net operable land base,

(II) harvested areas,

(III) existing and proposed road access within the net operable land base, and

(IV) areas subject to special management constraints, such as use of the tree farm licence areas for purposes other than timber production,

(B) categorizing areas within the net operable land base by

(I) the type and quality of timber, and

(II) the harvesting method suitable to the terrain, and

(C) setting out a hypothetical sequence of harvesting over a period of at least 20 years, consistent with the proposed management objectives under subparagraph (iv), and the proposals under subparagraph (v), and

(ix) it includes any other information on the development, management and use of the tree farm licence area that the chief forester requires,

(e) subject to the provisions of this Act, grant to its holder the exclusive right to harvest from the tree farm licence area during the term of the tree farm licence one or both of the following:

(i) Crown timber of one or more types specified in the tree farm licence,

(ii) Crown timber from one or more types of terrain specified in the tree farm licence,

(f) provide for cutting permits to be issued by the district manager, or a forest officer authorized by the district manager, within the limits provided in the tree farm licence and subject to this Act and the Forest Practices Code of British Columbia Act, to authorize its holder to harvest the portion of the allowable annual cut available to its holder from specified areas of land within the tree farm licence area,

(g) require its holder to implement management plans approved under this section,

(h) require that timber on the tree farm licence area, in an amount directed by the minister, having regard to reservations made by the minister for categories of  BC timber sales enterprises, for pulpwood agreements or for woodlot licences, are to be available for disposition under Divisions 3, 6 and 7 of this Part to persons other than the holder of the tree farm licence,

(i) make provision for its holder to use the services of one or more professional foresters to manage the tree farm licence area,

(j) require that each year during its term a volume of timber not less than

(i) 50% of the volume of timber harvested by or for its holder from the tree farm licence area during the year, multiplied by

(ii) the result obtained by the division of

(A) the portion of the allowable annual cut available to its holder during that year that the chief forester determines is attributable to Crown land referred to in paragraph (b) (i) and sections 37 (1) and (2) and 38 (1), by

(B) the allowable annual cut available to its holder during that year

are to be harvested by persons under contract with its holder,

(k) allow its holder to contract for the harvesting of more than the volume calculated under paragraph (j),

(l) provide that the minister, under the regulations, may relieve the holder, in whole or in part, from the requirement under paragraph (j),

(m) require its holder, in accordance with a proposal made in the application for the tree farm licence,

(i) to undertake or continue the operation, construction or expansion of a timber processing facility, and

(ii) to undertake specified measures in order to meet the objectives of the government in respect of any of the items referred to in section 33 (5) (a) to (e),

(n) reserve to the government the right to enter into a free use permit on the tree farm licence area with a person other than the holder of the tree farm licence, and

(o) contain other terms and conditions, consistent with this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, determined by the minister.

(2) A disposition of timber under Division 3 or 7 of this Part pursuant to this section, or pursuant to a requirement referred to in subsection (1) (h), does not give rise to any right to or eligibility for compensation under this Act or otherwise.

Inventories

35.1 (1) In this section, "forest resources" and "recreation resources" have the same meaning as in the Forest Practices Code of British Columbia Act.

(2) If, having regard to the factors listed in subsection (5), the chief forester determines that a management plan for a tree farm licence does not satisfactorily provide for an inventory of the forest, recreation and cultural heritage resources of the tree farm licence area, the chief forester may give a notice to the holder of the licence requiring the holder of the licence to compile and submit the inventories set out in the notice.

(3) The notice given under subsection (2) may specify the following requirements:

(a) the manner in which the inventories are prepared;

(b) the format in which the inventories are presented;

(c) the specifications the inventories must meet;

(d) the date the inventories must be submitted to the chief forester.

(4) In addition to compiling any inventories required under the management plan, the holder of the tree farm licence must compile and submit the inventories required in the notice given under subsection (2) and comply with any requirements referred to in subsection (3) that are set out in the notice.

(5) The chief forester may determine that a management plan for a tree farm licence does not satisfactorily provide for an inventory of the forest, recreation and cultural heritage resources of the tree farm licence area if, in the opinion of the chief forester, inventories prepared in accordance with the management plan would not provide sufficient information to adequately

(a) establish and carry out higher level plans,

(b) prepare and carry out operational plans,

(c) manage and conserve the forest, recreation and cultural heritage resources of the tree farm licence area, and

(d) assess the impact that managing the resources referred to in paragraph (c) would have on the timber supply for the tree farm licence area.

Replacement

36 (1) In this section, "tree farm licence" means a tree farm licence other than one that provides that a replacement for it must not be offered.

(1.1) During the 6 months beginning on any of the fourth to eighth anniversaries of a tree farm licence, the minister may offer the holder of the tree farm licence a replacement for it, after first giving the holder at least 6 month’s notice of intent to offer the replacement.

(1.2) During the 6 months beginning on the ninth anniversary of a tree farm licence for which a replacement has not by then been offered under subsection (1.1), the minister must offer the holder of the tree farm licence a replacement for it.

(2) Despite subsection (1), if the minister determines that

(a) rights under the existing tree farm licence are under suspension, or

(b) the holder of the existing tree farm licence has failed to

(i) pay stumpage or other money payable in respect of timber harvested under the tree farm licence or a road permit associated with the tree farm licence,

(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 in respect of the tree farm licence or a road permit associated with the tree farm licence,

(iii) perform an obligation under the tree farm licence to be performed by the holder in respect of an area of land specified in

(A) a cutting permit previously issued under the tree farm licence, or

(B) a road permit associated with the tree farm licence, 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),

the minister, to the extent provided in the regulations,

(c) may decline to offer a replacement for the existing tree farm licence until

(i) the suspension is rescinded,

(ii) the suspended rights are reinstated, or

(iii) the holder of the existing tree farm licence

(A) pays the stumpage or other money payable,

(B) provides the required security or deposit,

(C) performs the obligation to be performed under the existing tree farm licence in respect of land referred to in paragraph (b) (iii), or

(D) 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 paragraph (b) (iii), and

(d) may offer a replacement with special conditions.

(3) A tree farm licence offered under this section must

(a) be for a term equal to

(i) 25 years, or

(ii) if the minister exercises the power conferred under subsection (2) (c), a period, not exceeding 25 years, to be determined by the minister,

(b) have a term beginning

(i) on the earlier of

(A) the next anniversary of the tree farm licence being replaced under the offer, and

(B) the tenth anniversary of the tree farm licence, or

(ii) if the minister exercises the power conferred under subsection (2) (c), on a date to be determined by the minister,

(c) subject to sections 37, 38, 39, 56 (9) and 60, describe as a tree farm licence area the area subject to the existing tree farm licence, and

(d) include other terms and conditions, consistent with this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, set out in the offer.

(4) A notice of an offer made under subsection (1.1) or (1.2), and a notice of intent referred to in subsection (1.1), must be published in the prescribed manner.

(5) An offer made under this section may

(a) be amended, and

(b) be accepted by written notice of acceptance served on the minister not later than 3 months after the offer is served.

(6) If an offer made under this section is accepted

(a) an agreement in the form of a tree farm licence containing the terms and conditions set out in the offer, including amendments, must be entered into by the minister and the holder of the tree farm licence, and

(b) the existing tree farm licence expires on the commencement of the replacement licence.

(7) If an offer made under this section is not accepted, the existing tree farm licence continues in force until its term expires, after which it has no further effect.

(8) No tree farm licence is renewable.

Transition for tree farm licence replacement

36.1 (1) If an offer of a replacement for a tree farm licence

(a) was required to be made under section 36 within the 18 month period immediately preceding the date on which this section comes into force, and

(b) was not made within the 18 month period,

the offer of replacement, when made, must conform to section 36 of this Act as amended by the Forest (Revitalization) Amendment Act (No. 2), 2003.

(2) If an offer of a replacement for a tree farm licence

(a) was required to be made under section 36 within the 18 month period immediately preceding the date on which this section comes into force, and

(b) was made within the 18 month period,

the offer may be withdrawn if the person to whom the offer was made consents to the withdrawal of the offer.

(3) If an offer is withdrawn under subsection (2), the minister or person authorized by the minister must offer a replacement for the tree farm licence which offer must conforms to section 36 of this Act as amended by the Forest (Revitalization) Amendment Act (No. 2), 2003.

Private tenure

37 (1) On the expiry of a timber licence that is held by the holder of a tree farm licence and that is in the tree farm licence area, the land that was subject to the timber licence remains in the tree farm licence area and continues to be subject to its provisions.

(2) If a timber licence that is contiguous to a tree farm licence area expires and the timber licence was not held by the tree farm licence holder, the land that was subject to the timber licence becomes part of the tree farm licence area if the minister so determines, and the tree farm licence must be amended accordingly.

(3) If the holder of a tree farm licence acquires a private tenure that is contiguous to the tree farm licence area

(a) the holder must promptly notify the minister of the acquisition, and

(b) if the chief forester determines that forest management would be improved by doing so, the holder and the minister must enter into an agreement amending the tree farm licence, adding the private tenure to the tree farm licence area.

Private land

38 (1) Private land that is transferred to the government

(a) remains subject to the tree farm licence if it is in a tree farm licence area, or

(b) must be added to the tree farm licence area if it is contiguous to the area and the chief forester determines that forest management would be improved by doing so.

(2) If subsection (1) (b) applies, the minister and the tree farm licence holder must enter into an amendment to the tree farm licence, adding the land to the tree farm licence area.

Consolidation and subdivision

39 (1) With the consent of the licensee the minister may

(a) consolidate 2 or more tree farm licences into a tree farm licence, or

(b) partition or subdivide a tree farm licence into 2 or more tree farm licences,

(c) delete all or part of the licence area from a tree farm licence and add the deleted area to the licence area of another tree farm licence,

(d) cancel a tree farm licence if the area covered by the licence has been added to the licence area in another tree farm licence,

(e) amend a tree farm licence, and

(f) enter into one or more tree farm licences covering the same land as was covered in the licences being consolidated, subdivided or partitioned.

(2) Despite section 35 (1) (a), a tree farm licence that is amended or entered into under this section must not expire later than the earliest expiry date of the tree farm licences it replaces or amends.

Division 7 — Pulpwood Agreements

Application

40 (1) If the minister determines that

(a) wood chips, sawdust, shavings, hog fuel or other residues or byproducts of timber processing are produced in an area of British Columbia, or

(b) timber below the standard of utilization then in effect for sawmilling purposes exists on an area of Crown land in a timber supply area or tree farm licence area in British Columbia,

or both, in sufficient quantities to warrant the continuance, establishment, or expansion of a timber processing facility, the minister may designate the area as a pulpwood area and may enter into one or more pulpwood agreements for all or a part of that area.

(2) If the minister makes a determination under subsection (1) the minister, on request or on his or her own initiative, by advertising in the prescribed manner, may invite applications for one or more pulpwood agreements.

(3) The minister must not enter into a pulpwood agreement under this section unless the minister advertises as provided in subsection (2) and a public hearing is held on the applications.

(4) The application must be made to the minister in a form required by the minister and must include a proposal, providing information the minister requests, for the continuance, establishment or expansion of a timber processing facility in British Columbia.

(5) After a date specified in the advertising, the minister or the minister's designate must

(a) convene a public hearing in which any person may make a submission about applications for the pulpwood agreement, and

(b) determine the procedures for the public hearing.

(6) Following the public hearing the minister must evaluate each application, including its potential for

(a) creating or maintaining employment opportunities and other social benefits in British Columbia,

(b) providing for the management and utilization of Crown timber,

(c) furthering the development objectives of the government,

(d) meeting the objectives of the government for environmental quality and the management of water, fisheries and wildlife resources, and

(e) contributing to government revenues.

(7) The minister, with the approval of the Lieutenant Governor in Council, may

(a) approve one or more applications,

(b) determine that the pulpwood agreement is to be granted by competition under subsection (8), or

(c) decline to approve all applications.

(8) If a pulpwood agreement is to be granted by competition the minister must

(a) determine the form of the pulpwood agreement,

(b) specify a date by which tenders for the agreement must be received by the minister, and

(c) consider every tender received on or before that date, delivered in a sealed container and consisting of an offer to pay to the government, in addition to other amounts payable under this Act and the regulations, stumpage under Part 7 and a bonus offer, if any.

(9) After considering the tenders the minister, with the approval of the Lieutenant Governor in Council, must approve the tender containing the highest bonus offer or decline to approve all tenders.

(10) A pulpwood agreement must be entered into by the minister and an applicant whose application or tender is approved under subsection (7) or (9).

(11) This section does not apply to a pulpwood agreement entered into under section 42.

Content of pulpwood agreement

41 A pulpwood agreement must,

(a) subject to section 42, be for a term not exceeding 25 years,

(b) subject to section 42, describe an area of land as a pulpwood area,

(c) require its holder to construct, expand or continue a timber processing facility in accordance with the application for the pulpwood agreement,

(d) require its holder to purchase, as provided in the pulpwood agreement,

(i) wood residue produced by timber processing facilities from timber harvested in the pulpwood area, and

(ii) pulp logs, as defined in the agreement, from the pulpwood area,

(e) subject to sections 42 (3) (d) and 81, grant to its holder the option to obtain from the regional manager or district manager, without advertising or competition from other applicants, timber sale licences authorizing the harvest from Crown land in the pulpwood area of a maximum annual volume of timber not exceeding the volume, and according to the terms, specified in the pulpwood agreement,

(f) require that its holder must not exercise an option under paragraph (e) without first complying with the requirement under paragraph (d), and

(g) include other terms and conditions, consistent with this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, determined by the minister.

Replacement

42 (1) Unless a pulpwood agreement provides that a replacement for the pulpwood agreement must not be offered, the minister, during the 6 month period following the ninth anniversary of an existing pulpwood agreement, must offer its holder a replacement for the pulpwood agreement.

(2) Despite subsection (1), if the minister determines that

(a) rights under the existing pulpwood agreement or a timber sale licence entered into pursuant to the pulpwood agreement are under suspension, or

(b) the holder of the existing pulpwood agreement has failed to

(i) pay stumpage or other money payable in respect of timber harvested under a timber sale licence entered into pursuant to the pulpwood agreement or a road permit associated with the timber sale licence,

(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 in respect of the pulpwood agreement, a timber sale licence entered into pursuant to the pulpwood agreement or a road permit associated with a timber sale licence entered into pursuant to the pulpwood agreement,

(iii) perform an obligation under a timber sale licence entered into pursuant to the pulpwood agreement to be performed by the holder in respect of an area of land specified in

(A) the timber sale licence,

(B) a cutting permit issued under the timber sale licence, or

(C) a road permit associated with the timber sale licence, 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),

the minister, to the extent provided in the regulations,

(c) may decline to offer a replacement for the existing pulpwood agreement until

(i) the suspension is rescinded,

(ii) the suspended rights are reinstated, or

(iii) the holder of the existing pulpwood agreement

(A) pays the stumpage or other money payable,

(B) provides the required security or deposit,

(C) performs the obligation to be performed under the timber sale licence entered into pursuant to the existing pulpwood agreement in respect of land referred to in paragraph (b) (iii), or

(D) 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 paragraph (b) (iii), and

(d) may offer a replacement with special conditions.

(3) A pulpwood agreement offered under this section must

(a) have a term commencing

(i) on the 10th anniversary of the existing pulpwood agreement, or

(ii) if the minister exercises the power conferred under subsection (2) (c), on a date to be determined by the minister,

(b) be for a term equal to

(i) the whole original term of the existing pulpwood agreement, or

(ii) if the minister exercises the power conferred under subsection (2) (c), a period, not exceeding the original term of the existing pulpwood agreement, to be determined by the minister,

(c) describe as a pulpwood area the area described in the existing pulpwood agreement,

(d) specify a maximum volume of timber that its holder would be eligible to harvest each year during its term equal to the maximum volume specified in the existing pulpwood agreement, and

(e) include other terms and conditions, consistent with this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, set out in the offer.

(4) A notice of an offer made under this section must be published in the prescribed manner.

(5) An offer made under this section

(a) may be amended, and

(b) may be accepted by written notice to the minister not later than 3 months after the offer is served.

(6) If an offer made under this section is accepted,

(a) an agreement in the form of a pulpwood agreement containing the terms and conditions set out in the offer, including amendments, must be entered into by the minister and the holder of the pulpwood agreement, and

(b) the pulpwood agreement then in force expires on the commencement of the replacement licence.

(7) If an offer made this under section is not accepted, the existing pulpwood agreement continues in force until its term expires, after which it has no further effect.

(8) No pulpwood agreement is renewable.

Consolidation and subdivision of pulpwood agreements

43 (1) With the consent of the licensee the minister may

(a) consolidate 2 or more pulpwood agreements into a pulpwood agreement,

(b) partition or subdivide a pulpwood agreement into 2 or more pulpwood agreements,

(c) delete all or part of the area from a pulpwood agreement and add the deleted area to the area of another pulpwood agreement,

(d) cancel a pulpwood agreement if the area covered by the agreement has been added to the area in another pulpwood agreement,

(e) amend a pulpwood agreement, and

(f) enter into one or more pulpwood agreements covering the same land as was covered in the agreement being consolidated, subdivided or partitioned.

(2) Despite section 41 (a), a pulpwood agreement that is amended or entered into under this section must not expire later than the earliest expiry date of the pulpwood agreements it replaces or amends.

Division 7.1 — Community Forest Agreements

Definitions and interpretation

43.1 In this Division:

"botanical forest product" means a botanical forest product as defined in the Forest Practices Code of British Columbia Act;

"community forest pilot agreement" means a community forest pilot agreement entered into under section 43.5;

"long-term community forest agreement" means a long-term community forest agreement entered into under section 43.4;

"probationary community forest agreement" means a probationary community forest agreement entered into under section 43.2.

Section Not in Force

43.2 [Not in force.]

Content of community forest agreement

43.3 A community forest agreement

(a) must be for a term

(i) of 5 years if it is a probationary community forest agreement, or

(ii) of not less than 25 years and not more than 99 years if it is a long-term community forest agreement,

(b) must describe a community forest agreement area, determined by the minister or a person authorized by the minister, comprising Crown land and, if the area so determined includes land that is

(i) in a reserve as defined in the Indian Act (Canada), or

(ii) private land

also comprising that land,

(c) subject to this Act and the agreement,

(i) must give to its holder the exclusive right to harvest timber on the Crown land referred to in paragraph (b), for the term of the agreement, and

(ii) may give to its holder the right to harvest, manage and charge fees for botanical forest products and other prescribed products,

(d) must require its holder to pay to the government in addition to other amounts payable under the agreement, this Act and the regulations, stumpage under Part 7 in respect of Crown timber,

(e) must provide for cutting permits to be issued by the district manager, or a forest officer authorized by the district manager, within the limits provided in the community forest agreement and subject to this Act and the Forest Practices Code of British Columbia Act, to authorize the holder of the community forest agreement to harvest timber from specified areas of land within the community forest agreement area,

(f) must require its holder to

(i) submit for the approval of the regional manager or the regional manager's designate, at the times specified in the agreement, a management plan that meets the requirements of the community forest agreement, and

(ii) implement management plans approved by the regional manager or the regional manager's designate,

(g) must require its holder, in accordance with the community forest agreement, to

(i) carry out audits and make and submit reports concerning the holder's performance under the agreement, and

(ii) make information available to the public and carry out consultation activities with the public concerning matters relating to the community forest agreement,

(g.1) if the community forest agreement provides that it is entered into with a first nation or its representative to implement or further an agreement, the "other agreement", between the first nation and the government respecting treaty-related measures, interim measures or economic measures, the community forest agreement must state that it is a condition of the community forest agreement that the first nation comply with the other agreement, and

(h) may include other terms and conditions that the regional manager or regional manager's designate determines are consistent with any proposal made in the application for the community forest agreement, this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and standards under that Act.

Replacement of probationary and long-term community forest agreements

43.4 (1) The minister or a person authorized by the minister must assess a probationary community forest agreement at the time and in the manner specified in the regulations.

(2) After the assessment, the minister or a person authorized by the minister may

(a) grant one extension of the term of the probationary community forest agreement for a period not exceeding 5 years,

(b) offer the holder of the probationary community forest agreement a replacement for the agreement in the form of a long-term community forest agreement, or

(c) refuse to offer to replace the probationary community forest agreement.

(3) If

(a) the minister or person authorized by the minister does not grant an extension of the term of, or offer to replace, a probationary community forest agreement, or

(b) an offer to replace the probationary community forest agreement is not accepted

the probationary community forest agreement continues in force until its term expires, after which it has no further effect.

(4) During the 6 month period following the ninth anniversary of a long-term community forest agreement, the minister or a person authorized by the minister must offer the holder a replacement long-term community forest agreement.

(5) A long-term community forest agreement offered under subsection (2) (b) or (4) must

(a) be for a term of not less than 25 years and not more than 99 years, commencing on

(i) in the case of a long-term agreement offered under subsection (2) (b), the expiry of the probationary community forest agreement, or

(ii) in the case of a long-term agreement offered under subsection (4), the tenth anniversary of the existing long-term community forest agreement,

(b) describe as a community forest agreement area the area subject to the existing community forest agreement and any change to the boundary or area made by the minister or person authorized by the minister under subsection (6), and

(c) include other terms and conditions that are set out in the offer and are consistent with this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and standards under that Act.

(6) In accordance with the regulations and with the consent of the person to whom a community forest agreement is offered under this section, the minister or a person authorized by the minister, may change the boundary or area in the offered agreement from the boundary or area of the probationary community forest agreement or existing long term community forest agreement, as the case may be.

(7) Notice of an offer made under this section to replace a community forest agreement must be published in the prescribed manner.

(8) An offer made under this section may be

(a) amended, and

(b) accepted by written notice to the minister or a person authorized by the minister, not later than 3 months after the offer is served.

(9) If an offer made under this section is accepted

(a) an agreement in the form of a long-term community forest agreement containing the terms and conditions set out in the offer, including amendments, must be entered into by the regional manager or the regional manager's designate and the holder of the probationary or long-term community forest agreement, and

(b) the probationary or long-term community forest agreement expires on the commencement of the replacement agreement.

(10) A community forest agreement is not renewable.

Community forest pilot agreement

43.5 (1) The minister may

(a) invite applications for a community forest pilot agreement, and

(b) direct the regional manager or district manager to enter into a community forest pilot agreement with one or more of the applicants for the pilot agreement.

(1.1) Despite subsection (1), the minister, without accepting applications from other persons, may direct the regional manager or district manager to enter into a community forest pilot agreement if

(a) the community forest pilot agreement provides that it is entered into with a first nation or its representative to implement or further an agreement between the first nation and the government respecting treaty-related measures, interim measures or economic measures, or

(b) the community forest pilot agreement is entered into under prescribed circumstances or its holder meets prescribed requirements.

(1.2) Before directing the regional manager or district manager, under subsection (1.1), to enter into a community forest pilot agreement with the representative of a first nation, the minister must be satisfied that the intended holder of the agreement is a person or other legal entity and has been appointed by the first nation as its representative.

(2) Sections 43.2 and 43.3 (a) do not apply to a community forest pilot agreement.

(3) The term of a community forest pilot agreement must not exceed 5 years.

(4) Section 43.4 applies to a community forest pilot agreement as if the pilot agreement is a probationary community forest agreement.

(5) This section, except subsection (4), is repealed on January 1, 2004.

Division 8 — Woodlot Licences

Applications

44 (1) In this section, "control" with respect to a corporation in subsection (6) has the same meaning as "control of a corporation" in section 53.

(2) On request or on his or her own initiative the regional manager or district manager, by advertising in the prescribed manner, may invite applications for woodlot licences.

(3) A woodlot licence must not be entered into under this section unless the regional manager or district manager advertises as provided under subsection (2).

(4) An application for a woodlot licence must be made to the district manager or regional manager in a form required by the regional manager and must include

(a) a description of any private land owned by the applicant contiguous to or in the vicinity of the area of Crown land described in the advertising, and

(b) a declaration by or on behalf of the applicant attesting to the qualifications of the applicant for a woodlot licence.

(5) A woodlot licence must be entered into only with

(a) a Canadian citizen or permanent resident of Canada who is 19 years of age or older,

(b) a band as defined in the Indian Act (Canada), or

(c) a corporation, other than a society, that is controlled by persons who meet the qualifications referred to in paragraph (a).

(6) A woodlot licence must not be entered into with a person, corporation or band that

(a) owns or leases, or controls a corporation that owns or leases, a timber processing facility in British Columbia, or

(b) holds another woodlot licence.

(7) The regional manager or district manager must evaluate all applications for a woodlot licence and, in evaluating the applications, he or she must consider

(a) the place of residence of every applicant and, if the applicant is a corporation, the place of residence of each of its members,

(b) the location and character of any private land, owned by every applicant, contiguous to or in the vicinity of the area of Crown land described in the applications, and

(c) other factors that the regional manager or district manager considers to be consistent with the goals of the woodlot licence program.

(8) After evaluating applications under subsection (7), the person who evaluated the applications may

(a) approve an application,

(b) decline to approve all applications, or

(c) designate 2 or more of the applications as eligible to proceed to competition under subsection (9) to decide which application will be granted.

(9) If a woodlot licence is to be granted by competition the regional manager or district manager must

(a) determine the form of the licence,

(b) specify a date by which tenders for the licence must be received by him or her, and

(c) consider every tender received on or before that date, delivered in a sealed container and consisting of an offer to pay to the government, in addition to other amounts payable under this Act and the regulations, stumpage under Part 7 and a bonus, if any, in the amount tendered.

(10) After considering the tenders the regional manager or district manager must approve the tender containing the highest bonus offer or, at the direction of the minister, decline to approve all tenders.

(10.1) If the person whose application is approved under subsection (8) or whose tender is approved under subsection (10) neglects or declines to enter into the woodlot licence or becomes ineligible to enter into the licence, the regional manager or district manager may approve the next best woodlot application or tender, or, at the direction of the minister, may refuse to approve any of the applications or tenders.

(11) Neither the regional manager nor the district manager is to enter into an agreement in the form of a woodlot licence until a management plan is approved by the government for the proposed woodlot licence area.

(12) The regional manager or district manager may reserve from disposition under this Act the timber in the area described in the advertising, pending the entering into of an agreement in the form of a woodlot licence or rejection of all applications made under this section.

(13) Subject to subsection (11), the regional manager or district manager must enter into an agreement in the form of a woodlot licence with every person whose application or tender is approved under subsection (8) or (10).

(14) This section does not apply to a woodlot licence entered into under sections 46 and 47.3 of this Act or entered into under section 44 of the Forest Act, R.S.B.C. 1979, c. 140, before the repeal of that section.

Content of woodlot licence

45 (1) A woodlot licence must

(a) be for a term not exceeding 20 years,

(b) describe a woodlot licence area determined by the regional manager or district manager to be composed of

(i) private land, if any, owned or held under lease by its holder or a reserve as defined in the Indian Act (Canada), and

(ii) Crown land, the timber on which is not otherwise encumbered, of not more than

(A) 400 ha if the Crown land is located in the Vancouver Forest Region or the North Coast Timber Supply Area, or

(B) 600 ha if the Crown land is not located in the Vancouver Forest Region or the North Coast Timber Supply Area,

(c) subject to the provisions of this Act, give to its holder the exclusive right to harvest timber on the Crown land referred to in paragraph (b), for its term,

(d) require its holder to pay to the government, in addition to other amounts payable under this Act and the regulations, stumpage under Part 7 in respect of Crown timber and a bonus, if any, in the amount tendered,

(e) provide for cutting permits to be issued by the district manager, or a forest officer authorized by the district manager, within the limits provided in the woodlot licence and subject to this Act and the Forest Practices Code of British Columbia Act, to authorize its holder to harvest timber from specified areas of land within the woodlot licence area,

(f) require its holder to submit for the approval of the district manager, at the times specified by the district manager, a management plan that meets all the following requirements:

(i) it is prepared in accordance with the requirements of the woodlot licence;

(ii) it includes inventories, prepared in the manner, presented in the format and meeting the specifications required under the woodlot licence, of the timber resources within the woodlot licence area;

(iii) it is consistent with

(A) the woodlot licence,

(B) this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, and

(C) any applicable objectives for resource management zones, landscape units and sensitive areas under the Forest Practices Code of British Columbia Act;

(iv) it proposes management objectives, in accordance with the woodlot licence, regarding

(A) utilization of the timber resources in the woodlot licence area,

(B) protection and conservation of the non-timber values and resources in the woodlot licence area,

(C) forest fire prevention and suppression,

(D) forest health, including pest management,

(E) silviculture, and

(F) road construction, maintenance and deactivation;

(v) it includes proposals, in accordance with the woodlot licence, for meeting the proposed management objectives under subparagraph (iv), including measures to be taken and specifications to be followed by the holder of the woodlot licence;

(vi) it proposes an allowable annual cut for the woodlot licence area, and

(vii) it includes any other inventories and information regarding the development, management and use of the woodlot licence area that the district manager, in accordance with the woodlot licence, requires,

(f.1) if the licence provides that it is entered into with a first nation or its representative to implement or further an agreement between the first nation and the government respecting treaty-related measures, interim measures or economic measures, the licence must state that it is a condition of the licence that the first nation comply with the agreement, and

(g) include other terms and conditions, consistent with this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, determined by the regional manager or district manager.

(2) Despite subsection (1), the Crown land portion of a woodlot licence may exceed the limits specified in subsection (1) (b) (ii) (A) or (B) if

(a) the woodlot licence was entered into before January 1, 2003, and

(b) the excess Crown land was included in the woodlot licence as a result of mapping inaccuracies.

Transition for woodlot licence allowable annual cut

45.1 For a woodlot licence for which an allowable annual cut has not been determined under section 8, a reference in this Act or the regulations to an allowable annual cut authorized for a woodlot licence must be read as a reference to the volume of timber to be harvested from each woodlot licence area during each year or other period of the term of the woodlot licence as determined under section 8.

Replacement

46 (1) Unless a woodlot licence provides that a replacement for the woodlot licence must not be offered, the regional manager or district manager, during the 6 month period following the ninth anniversary of an existing woodlot licence, must offer its holder a replacement for the woodlot licence.

(2) Despite subsection (1), if the regional manager or district manager determines that

(a) rights under the existing woodlot licence are under suspension, or

(b) the holder of the existing woodlot licence has failed to

(i) pay stumpage or other money payable in respect of timber harvested under the woodlot licence or a road permit associated with the woodlot licence,

(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 in respect of the woodlot licence or a road permit associated with the woodlot licence,

(iii) perform an obligation under the woodlot licence to be performed by the holder in respect of an area of land specified in

(A) a cutting permit previously issued under the woodlot licence, or

(B) a road permit associated with the woodlot licence, 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),

the regional manager or district manager, to the extent provided in the regulations,

(c) may decline to offer a replacement for the existing woodlot licence until

(i) the suspension is rescinded,

(ii) the suspended rights are reinstated, or

(iii) the holder of the existing woodlot licence

(A) pays the stumpage or other money payable,

(B) provides the required security or deposit,

(C) performs the obligation to be performed under the existing woodlot licence in respect of land referred to in paragraph (b) (iii), or

(D) 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 paragraph (b) (iii), and

(d) may offer a replacement with special conditions.

(3) A woodlot licence offered under this section must

(a) have a term commencing

(i) on the 10th anniversary of the existing woodlot licence, or

(ii) if the regional manager or district manager exercises the power conferred under subsection (2) (c), on a date to be determined by the district manager,

(b) be for a term equal to

(i) the whole original term of the existing woodlot licence, or

(ii) if the regional manager or district manager exercises the power conferred under subsection (2) (c), a period, not exceeding the original term of the existing woodlot licence, to be determined by the district manager,

(c) describe as a woodlot licence area the area subject to the existing woodlot licence, and

(d) include other terms and conditions, consistent with this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, set out in the offer.

(4) [Repealed 1999-10-5.]

(5) Notice of an offer made under this section must be published in the prescribed manner.

(6) An offer made under this section

(a) may be amended, and

(b) may be accepted by written notice to the regional manager or district manager not later than 3 months after the offer is served.

(7) If an offer made under this section is accepted

(a) an agreement in the form of a woodlot licence containing the terms and conditions set out in the offer, including amendments, must be entered into by the regional manager or district manager and the holder of the woodlot licence, and

(b) the existing woodlot licence expires on the commencement of the replacement licence.

(8) If an offer made under this section is not accepted, the existing woodlot licence continues in force until its term expires, after which it has no further effect.

(9) No woodlot licence is renewable.

Timber processing facility

46.1 (1) This section applies despite section 44 (6) (a).

(2) The district manager may enter into a woodlot licence with a person, corporation or band that owns or leases, or controls a corporation that owns or leases, a timber processing facility in British Columbia if  the person, corporation or band

(a) meets the prescribed requirements, and

(b) complies with any conditions imposed by the district manager.

(3) The district manager may offer a replacement woodlot licence under section 46 to a person, corporation or band that owns or leases, or controls a corporation that owns or leases, a timber processing facility in British Columbia if  the person, corporation or band

(a) meets the prescribed requirements, and

(b) complies with any conditions imposed by the district manager.

(4) On application in writing by the holder of a woodlot licence, the district manager may permit the holder to own or lease, or control a corporation that owns or leases, a timber processing facility in British Columbia if  the holder of the licence

(a) meets the prescribed requirements, and

(b) complies with any conditions imposed by the district manager.

(5) If the district manager approves an application under subsection (4), the approval takes effect when the district manager and the holder of the woodlot licence enter into an agreement amending the woodlot licence in a manner that the district manager considers to be consistent with

(a) the holder of the woodlot licence owning or leasing, or controlling a corporation that owns or leases, a timber processing facility in British Columbia,

(b) the prescribed requirements, and

(c) any conditions imposed by the district manager.

(6) The Lieutenant Governor in Council may make regulations prescribing

(a) criteria that the district manager must consider before

(i) entering into a woodlot licence with a person who owns or leases, or control a corporation that owns or leases, a timber processing facility in British Columbia,

(ii) offering a replacement woodlot licence under section 46 to a person, corporation or band that owns or leases, or controls a corporation that owns or leases, a timber processing facility in British Columbia, or

(iii) permitting the holder of a woodlot licence to own or lease, or control a corporation that owns or leases, a timber processing facility in British Columbia, and

(b) the types of conditions the district manager may impose for the purposes of this section.

Section Repealed

47 [Repealed RS1996-157-47 (2).]

Change in area or boundary

47.1 Subject to section 45 (1) (b) (ii), the district manager or regional manager, if permitted by the regulations and in accordance with the regulations, and with the consent of the holder of a woodlot licence, may change the boundary or area of the woodlot licence.

Woodlot licence term — transition

47.2 (1) Subject to subsection (2), on the coming into force of this section

(a) despite anything to the contrary in a woodlot licence, the term of the woodlot licence is 20 years, and

(b) for the purposes of section 46 (3), the original term of the woodlot licence referred to in paragraph (b) of that section is 20 years.

(2) Subsection (1) does not apply to a woodlot licence that

(a) provides that a replacement for it must not be offered,

(b) section 46 (8) applies to, or

(c) is subject, on the coming into force of this section, to an offer of replacement under section 46 and the offer is rejected by the holder of the woodlot licence.

(3) On the coming into force of this section, despite anything to the contrary in an offer to replace a woodlot licence under section 46, the term of the following replacement woodlot licences is 20 years:

(a) a replacement woodlot licence that has been offered under section 46 and the offer has not been accepted;

(b) a replacement woodlot licence that has been accepted under section 46 (6) but whose term has not yet commenced.

(4) This section is repealed on July 1, 2009.

Division 8.1 — Direct Awards

No advertising required

47.3 (1) The minister, without advertising or inviting other applications, may invite an application for a forest licence, timber sale licence or woodlot licence and direct the regional manager or district manager to enter into the licence with the applicant if the licence

(a) provides that it is entered into with a first nation or its representative to implement or further an agreement between the first nation and the government respecting treaty-related measures, interim measures or economic measures, or

(b) is entered into with a person to mitigate the effects on that person of

(i) a treaty,

(ii) a specification of a designated area under Part 13, or

(iii) an agreement with a first nation and the government respecting treaty-related measures, interim measures or economic measures.

(2) Before directing the regional manager or district manager, under subsection (1), to enter into a licence with the representative of a first nation, the minister must be satisfied that the intended holder of the licence is a person or other legal entity and has been appointed by the first nation as its representative.

Division 9 — Miscellaneous

Free use permit

48 (1) An agreement in the form of a free use permit must be entered into only with

(a) an occupier of land who requires Crown timber for developing the land for agricultural purposes,

(a.1) a person who requires a Christmas tree for their personal use and not for sale to others,

(b) a person who requires firewood for their personal domestic purposes and not for sale to others,

(c) a school board that requires firewood for school purposes,

(d) a person who requires Crown timber for the purpose of scientific investigation,

(e) an owner of a Crown grant of a mineral claim, authorizing the use of Crown timber on land described in the grant in a mining operation conducted on that land,

(f) a holder of a coal licence issued under the Coal Act, or a holder of a mineral title under the Mineral Tenure Act not in production authorizing the holder to cut timber, and

(g) a person who

(i) requires Crown timber for a traditional and cultural activity, within the meaning prescribed for the phrase "traditional and cultural activity", and

(ii) is not selling the timber to others.

(2) Despite subsection (1), a free use permit must not be entered into if, on land the applicant owns or occupies, there is sufficient timber that is reasonably accessible for the purpose specified in the application.

(3) If a person who requires Crown timber under subsection (1) (g) wishes to harvest more than 50 m3 under the free use permit, the person must

(a) apply to the district manager, and

(b) include in the application the information required by the district manager.

Issuance and content of free use permit

49 (1) The district manager or a forest officer authorized by him or her may enter into a free use permit with a person qualified under section 48.

(2) A free use permit

(a) must be for a term not exceeding one year,

(b) must give to its holder the right to harvest Crown timber from an area of land for the purposes specified in it,

(c) subject to subsection (2.1), must be limited to a volume not exceeding 50 m3,

(d) despite Part 4, Division 4, may be suspended or cancelled, or both, without notice by the forest officer if its holder fails to comply with its terms and conditions, this Act or the regulations,

(e) must not require its holder to pay stumpage for the timber cut, or to pay rent, and

(f) must contain terms and conditions, consistent with this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, determined by the district manager or forest officer.

(2.1) The district manager or a forest officer authorized by the district manager, in prescribed circumstances, may enter into a free use permit authorized under section 48 (1) (g) for a volume exceeding 50 m3, but not exceeding 250 m3.

(3) The person in respect of whom or in respect of whose agreement a decision is made under subsection (2) may require a review of the decision by the regional manager and the decision of the regional manager is final and binding.

(4) Only sections 143 (3) and (4), 144 and 145 apply to a review under subsection (3).

Christmas tree permit

50 (1) A regional manager, district manager or forest officer authorized by either of them may enter into an agreement in the form of a Christmas tree permit that

(a) authorizes the permittee to harvest or grow and harvest Christmas trees on Crown land,

(b) requires the payment of the deposits and fees prescribed by the minister, and

(c) includes other terms and conditions, consistent with this Act and the regulations, the Forest Practices Code of British Columbia Act and the regulations and the standards made under that Act, as determined by the regional manager, district manager or forest officer authorized by either of them.

(2) For the purposes of this section, the minister may prescribe different deposits and different rates or amounts of fees.

Licence to cut

51 (1) If a person who purchases or occupies land does not otherwise have the right to harvest Crown timber from the land, the regional manager or district manager may enter into an agreement in the form of a licence to cut authorizing the person to cut or remove, or both, timber on the land.

(2) A licence to cut entered into under this Act

(a) if it is a licence to cut in the form of a master agreement must

(i) be for a term not exceeding 3 years, and

(ii) provide that the district manager, or a forest officer authorized by the district manager, is to issue, subject to the licence, this Act and the Forest Practices Code of British Columbia Act, cutting permits that authorize the licence holder to harvest Crown timber from specified areas of land within the area or areas of land specified in the licence,

(b) subject to section 104, must require payment of stumpage, and

(c) may include other terms and conditions, 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, determined by the regional manager or district manager or by a forest officer authorized by either of them.

(3) A licence to cut may be, but is not required to be, in the form of a master agreement that applies to all timber harvested for one or more of the following purposes by the holder of the agreement in all or part of a forest district, whether or not the holder has the right to occupy the area to which the master agreement applies:

(a) geophysical exploration, under the Petroleum and Natural Gas Act;

(b) development activities associated with well sites or pipelines under the Pipeline Act or the Petroleum and Natural Gas Act;

(c) roads associated with activities referred to in paragraph (a) or (b).

(4) The district manager or the forest officer authorized by the district manager must not issue a cutting permit to the holder of a licence to cut in the form of a master agreement described in subsection (3) unless the holder has written authority from the government to occupy the Crown land covered by the cutting permit.

Use by government employees and agents

52 (1) The regional manager, timber sales manager or district manager may, in writing, authorize

(a) employees acting in the course of their duties, and

(b) agents of the government acting in accordance with the terms of the agency

to harvest Crown timber or to use and occupy Crown land in a Provincial forest.

(2) An authorization under subsection (1)

(a) is an agreement under the Forest Act for the purposes of the definition of "forest practice" in the Forest Practices Code of British Columbia Act, and

(b) must include terms and conditions that the regional manager, timber sales manager or district manager considers appropriate and that are consistent with this Act and the regulations, and the Forest Practices Code of British Columbia Act and the regulations and standards under that Act.

(3) If the regional manager, timber sales manager or district manager so specifies in the authorization, the Forest Practices Code of British Columbia Act applies to the authorization as if the authorization were a timber sale licence.

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