B.C. Reg. 352/2004, deposited July 23, 2004, pursuant to the FOREST ACT [Sections 43.2, 43.51, 43.52 and 43.7] and the FORESTS STATUTES AMENDMENT ACT, 2004 [Section 147]. Order in Council 792/2004, approved and ordered July 22, 2004.

On the recommendation of the undersigned, the Administrator, by and with the advice and consent of the Executive Council, orders that

1 The following provisions of the Forests Statutes Amendment Act, 2004, S.B.C. 2004, c. 36, are brought into force by this regulation:

(a) section 21;

(b) the portion of section 23 that enacts section 43.51 of the Forest Act.

2 Section 22 of the Forests Statutes Amendment Act, 2004 is brought into force September 17, 2004.

3 The attached Community Tenures Regulation is made.

4 The Advertising, Deposits, Disposition and Extensions Regulation, B.C. Reg. 277/2004, is amended as set out in the attached Appendix 1.

— M. de JONG, Minister of Forests; J. van DONGEN, Presiding Member of the Executive Council.

COMMUNITY TENURES REGULATION

Definitions

1 In this regulation, "Act" means the Forest Act.

Part 1 — Community Forest Agreements

Eligible applicants

2 For the purposes of section 43.2 (3) (c) of the Act, a community forest agreement may be entered into only with an applicant that is

(a) a society incorporated under the Society Act, if the society can demonstrate that it is not prohibited under section 2 (2) of the Society Act from holding a community forest agreement;

(b) an association as defined in the Cooperative Association Act, if the association can demonstrate that holding a community forest agreement is consistent with the purposes of the association;

(c) a corporation, if the corporation is

(i) established by or under an enactment, or

(ii) registered as an extraprovincial company under the Business Corporations Act;

(d) a partnership, if the partnership is comprised of

(i) a first nation,

(ii) a municipality or regional district,

(iii) societies that comply with paragraph (a),

(iv) associations that comply with paragraph (b),

(v) corporations that comply with paragraph (c), or

(vi) a combination of any of the entities referred to in subparagraphs (i) to (v).

Applications

3 An application for a community forest agreement under section 43.2 (1) of the Act must

(a) be made to the regional manager or the district manager,

(b) be in the form and manner required by the minister or a person authorized by the minister, and

(c) include the following:

(i) a description of the Crown land proposed for inclusion in the community forest agreement area, if the Crown land was not described in the advertisement;

(ii) a description of any private land or first nation reserve land proposed for inclusion in the community forest agreement area;

(iii) a business plan acceptable to the minister or a person authorized by the minister that includes the following:

(A) a description of the legal entity that will hold the agreement;

(B) the governance model for the agreement, including the structure and mandate of the management board or persons who will direct operations under or in respect of the agreement;

(C) an analysis of the markets for products harvested under the agreement;

(D) an assessment of the events or circumstances that may compromise the ability of the holder of the agreement to successfully implement the business plan;

(E) financial statements respecting financing, if any, forecasts for profit and loss, cash flow and capital expenditures and a listing of capital assets;

(iv) a plan for the management of forest resources on the proposed community forest agreement area, including

(A) guiding principles,

(B) proposed management objectives, and

(C) a proposed allowable annual cut for the community forest agreement area;

(v) documentation of community awareness and support for the proposed community forest agreement, including a summary of the submissions received during, and the results of, a public review of the application conducted by the applicant;

(vi) other information required by the minister or a person authorized by the minister to the extent the information is relevant to the application.

Evaluation of applications

4 An application under section 3 must be evaluated by considering the following:

(a) whether the proposed community forest agreement area is considered suitable for a community forest agreement;

(b) whether the proposed business plan, if implemented, would provide the applicant with a reasonable chance of operating successfully from a business perspective;

(c) whether the application documents community awareness and support for the proposed community forest agreement;

(d) whether the proposed plan for the management of forest resources

(i) is suitable for managing the resources known to be present on the community forest agreement area,

(ii) is appropriate to achieve the goals of the community and the government with respect to forest resource management, and

(iii) is consistent with the proposed business plan;

(e) whether the proposed governance model for the community forest agreement will ensure that operations under the community forest agreement are conducted in a manner that provides for meaningful input from the community and stakeholders;

(f) the results of a public review of the application, including any actions taken or proposed to be taken by the applicant in response to concerns raised during the public review;

(g) whether entering into a community forest agreement would be in the best interest of the community and the public;

(h) any other information provided by the applicant as required by the minister or authorized person.

Assessment of probationary and pilot agreements

5 (1) For the purposes of sections 43.4 (1) and 43.5 (4) of the Act, the minister or a person authorized by the minister must assess a probationary community forest agreement or a community forest pilot agreement, one or more times, after

(a) approximately half of its term has elapsed, and

(b) before the expiry of its term.

(2) The assessment must include the submission of at least one written report by the agreement holder to the regional manager or district manager that includes

(a) a summary of harvesting activities, financial statements and performance on environmental or administrative obligations, including agreement requirements,

(b) a justification, prepared by the holder of the agreement,

(i) for extending the community forest probationary agreement or community forest pilot agreement, or

(ii) for offering a long-term community forest agreement to the holder of the agreement, and

(c) other information required by the regional manager or district manager to the extent the information is relevant to the assessment.

(3) The minister or person authorized by the minister

(a) must consider

(i) the report referred to in subsection (2),

(ii) the agreement's value to the government and the agreement holder, and

(iii) the results of a public meeting or other event, if any, and

(b) may consider any other factor that the minister or person authorized considers relevant.

Direct award of probationary community forest agreements

6 (1) For the purposes of section 43.51 (1) of the Act, the minister may direct the regional manager or district manager to enter into a probationary community forest agreement with a person if

(a) the person is invited by the minister to apply for the agreement and the minister is satisfied with the application, and

(b) any of the circumstances or requirements set out in subsection (3) apply.

(2) The minister may specify that an application under subsection (1) must include any of matters set out in section 3 (c).

(3) For the purposes of subsection (1) the circumstances or requirements are any of the following:

(a) the person

(i) holds

(A) a timber sale licence that is not a BC timber sales agreement,

(B) a forest licence, or

(C) a tree farm licence,

in respect of which

(D) rights under the licence are not under suspension, and

(E) all money

(I) required to be paid to the government under the circumstances set out in section 130 (1.1) of the Act, and

(II) due and payable to the government

in respect of the licence

(III) has been paid, or

(IV) is the subject of an arrangement for payment approved by the minister responsible for collecting the money, and

(ii) surrenders the licence on entering into the probationary community forest agreement;

(b) in the opinion of the minister, regional manager or district manager, on the balance of probabilities it is unlikely that any other person would submit an application;

(c) in the opinion of the minister, entering into the agreement is in the public interest.

Change of boundary or area

7 Under section 43.52 of the Act, the regional manager or district manager may change the boundary or area of a community forest agreement, if satisfied that

(a) the boundary or area change will

(i) improve forest resource management, or

(ii) further a development objective of the government or the holder,

(b) rights under the agreement are not under suspension, and

(c) all money

(i) required to be paid to the government under the circumstances set out in section 130 (1.1) of the Act, and

(ii) due and payable to the government

in respect of the agreement

(iii) has been paid, or

(iv) is the subject of an arrangement for payment approved by the minister responsible for collecting the money.

Part 2 — Community Salvage Licences

Eligible applicants

8 For the purposes of section 43.7 (1) (e) of the Act, applications for a community salvage licence may be invited from any of the following:

(a) a society incorporated under the Society Act, if the society can demonstrate that it is not prohibited under section 2 (2) of the Society Act from holding a community salvage licence;

(b) an association as defined in the Cooperative Association Act, if the association can demonstrate that holding a community salvage licence is consistent with the purposes of the association;

(c) a corporation, if the corporation is

(i) established by or under an enactment, or

(ii) registered as an extraprovincial company under the Business Corporations Act;

(d) a partnership, if the partnership is comprised of

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

(ii) a municipality or regional district,

(iii) societies that comply with paragraph (a),

(iv) associations that comply with paragraph (b),

(v) corporations that comply with paragraph (c), or

(vi) a combination of any of the entities referred to in subparagraphs (i) to (v).

Appendix 1

1 The Advertising, Deposits, Disposition and Extensions Regulation, B.C. Reg. 277/2004, is amended by adding the following sections:

Probationary community forest agreement

3.1 An advertisement inviting applications for a probationary community forest agreement

(a) must be published

(i) in at least one issue of the Gazette, and

(ii) in at least one newspaper circulating in or near the area proposed for the agreement, at least once every 2 weeks within a period of 4 consecutive weeks following the date of the publication in the Gazette, and

(b) must include

(i) an informal description of

(A) the land that is proposed for the community forest agreement, or

(B) the geographic area where any proposed agreement area will be located, and

(ii) the name of a place in the forest region or forest district where persons can obtain details of the proposed agreement.

Community salvage licence

3.2 An advertisement inviting applications for a community salvage licence

(a) must be published

(i) in at least one issue of the Gazette, and

(ii) in at least one newspaper circulating in or near the area proposed for the agreement, at least once every 2 weeks within a period of 4 consecutive weeks following the date of the publication in the Gazette, and

(b) must include

(i) an informal description of the land proposed for the licence, and

(ii) the name of a place in the forest region or forest district where persons can obtain details of the proposed licence.

Copyright © 2004: Queen's Printer, Victoria, British Columbia, Canada