where

(d) if the contract expresses the amount of work as a fixed volume of timber to be handled in a year, the phase contribution amount is

D x E

where

(e) if the contract expresses amount of work as a percentage of work to be provided using a specified harvesting system, the phase contribution amount is

F x G/H x I

where

(f) if the contract is

(i) for part of a phase,

(ii) for a phase that is not listed in paragraph (a) or (b),

(iii) a dedicated phase contract, or

(iv) a contract not described in paragraph (c), (d) or (e),

the phase contribution amount is an amount that reflects the amount of work to be performed under the contract relative to the total amount of work to be performed under all phases of timber harvesting operations under the licence, or the licences in a fibre basket agreement, to which the contract pertains, determined in a manner consistent with the approach in paragraphs (c), (d) and (e);

(g) if the contract allocates work with reference to a seniority system, the amount of work attributable to each position in the seniority system is

M/N

where

2 Section 6 is amended

(a) in subsection (1) by striking out "section 23, 25, 32 or 33.5" and substituting "section 23, 25, 32, 33.1, 33.43, 33.5 or 33.51", and

(b) in subsections (2) and (3) by striking out "sections 23, 25, 25.2, 32 and 33.5" and substituting "sections 23, 25, 25.2, 32, 33.1, 33.43, 33.5 and 33.51" .

3 Section 33.1 is repealed and the following is substituted:

Interpretation and disputes

33.1 (1) In this Division:

"conciliator" means a person appointed as both mediator and arbitrator under subsection (8);

"fairness objection" means the inclusion in an objection to a forestry revitalization proposal under section 33.4 by an impacted contractor of notice that the contractor believes the requirements of section 33.22 (h) have not been met in respect of that contractor and the reasons why the requirements have not been met;

"group of licences" means a group of licences as defined in section 1 of the Forestry Revitalization Act except that, if licences shown for a group of licences in Schedule 1 to the Act have been eliminated or have been added to licences shown for another group of licences in Schedule 1 to the Act through

(a) the acquisition of one or more licence holders by another licence holder,

(b) the amalgamation of two or more licence holders, or

(c) the transfer of licences,

the group of licences must reflect that elimination or addition;

"impacted contractor" means, in respect of a forestry revitalization proposal, a contractor with a replaceable contract in which the parties have specified the amount of work

(a) as a percentage of the total amount of that type of work under the licence, or licences in a fibre basket agreement, to which the contract pertains, and the licence holder proposes to reduce that percentage,

(b) as a fixed amount, and the licence holder proposes to reduce the fixed amount of work by more than the percentage reduction under the Forestry Revitalization Act in the allowable annual cut of the licence, or licences in a fibre basket agreement, to which the contract pertains, or

(c) in a manner other than as described in paragraph (a) or (b), and the licence holder proposes to reduce the amount of work by more than the percentage reduction under the Forestry Revitalization Act in the allowable annual cut of the licence, or licences in a fibre basket agreement, to which the contract pertains;

"licence holder" means all licence holders for a group of licences or an ungrouped licence;

"minimum replaceable contract proportion" means the replaceable contract proportion for

(a) a group of licences immediately before the order of the minister under section 3 (2) of the Forestry Revitalization Act made in relation to the group of licences, or

(b) an ungrouped licence on March 31, 2003;

"proportionate reduction" means the apportionment of the effect of

(a) an order of the minister under section 3 (2) of the Forestry Revitalization Act, for a group of licences, and

(b) that Act, for an ungrouped licence,

such that the amount of work to be performed under each replaceable contract that pertains to a licence or licences in a fibre basket agreement, other than a contract that is subject to a seniority system, is reduced by a percentage equal to

	A – B
			x	100
	A

where

"rejection threshold", when used in relation to contractors who have replaceable contracts that pertain to those licences included by a licence holder in a forestry revitalization proposal, means objection by either

(a) more than one third of those contractors, or

(b) sufficient of those contractors that they have in aggregate greater than one third of the aggregate amount of work to be performed under all replaceable contracts that pertain to the licences, in which the amount of work to be performed under each contract is determined with regard to the phase contribution amounts for the phases included in that contract;

"replaceable contract proportion" means, at any given time for an ungrouped licence or a group of licences, the proportion determined by the formula

A/B

where

"ungrouped licence" means an ungrouped licence as defined in section 1 of the Forestry Revitalization Act.

(2) For the purposes of determining if a rejection threshold under section 33.41 (2) has been achieved, a replaceable contract does not include a contract for hauling if

(a) the amount of work is specified in the contract with reference to a seniority system, or the work available to the contractor is otherwise subject to a seniority system,

(b) the seniority system is not changed by a forestry revitalization proposal, and

(c) the licence, or licences in a fibre basket agreement, to which the seniority system pertains must not be affected by a forestry revitalization proposal in a manner that would reduce the total amount of work available to the group of contractors in the seniority system any more than would have occurred under proportionate reduction.

(3) If a contractor who has a replaceable contract with a licence holder disagrees with the licence holder on the interpretation or application of any part of this Division, including

(a) the definition of "impacted contractor" and whether a contractor is an impacted contractor,

(b) the definition of "minimum replaceable contract proportion" and the determination of that proportion,

(c) the definition of "replaceable contract proportion" and the determination of that proportion,

(d) the definition of "proportionate reduction" and the calculation of reductions to contracts under a proportionate reduction,

(e) the definition of "rejection threshold" and whether a rejection threshold has been properly determined in respect of a forestry revitalization proposal, or

(f) section 33.41 and whether a forestry revitalization proposal has been accepted or rejected,

the contractor may, by written notice to the licence holder, commence a dispute.

(4) If any provision in this Division requires either a licence holder or a contractor who has a replaceable contract with that licence holder to do something or not to do something, and the licence holder or contractor contravenes that requirement,

(a) any contractor, if the licence holder has contravened the requirement, or

(b) the licence holder, if a contractor has contravened the requirement,

may, by written notice to the other party, commence a dispute.

(5) If a dispute has been commenced in respect of those matters described in subsection (3) (b) or (c), all contractors who have replaceable contracts with the licence holder are parties to the dispute.

(6) If a dispute has been commenced in respect of a matter described in subsection (3) (d), all contractors who have replaceable contracts that pertain to the licence that is subject to proportionate reduction are parties to the dispute.

(7) If a dispute has been commenced in respect of those matters described in subsection (3) (e) or (f), all contractors who have replaceable contracts that pertain to a licence included in the forestry revitalization proposal are parties to the dispute.

(8) All disputes under this Division must be resolved by mediation and arbitration under the system established in Division 2 of Part 4 subject to sections 33.5 and 33.51 and to the following:

(a) within 7 days of the commencement of a dispute the licence holder must notify each contractor that is a party to the dispute as to the person the licence holder proposes to appoint as a conciliator to resolve the dispute;

(b) if there is more than one contractor that is a party to the dispute, the notice under paragraph (a) must list each contractor;

(c) within 7 days of receiving a notice under paragraph (a), a contractor may, by written notice to the licence holder, object to the appointment of the conciliator proposed by the licence holder;

(d) if one third or fewer contractors who are parties to the dispute object under paragraph (c) to the conciliator proposed by the licence holder, that person is the conciliator for the dispute;

(e) if more than one third of the contractors who are parties to the dispute object under paragraph (c) to the conciliator proposed by the licence holder, or if the licence holder fails to give notice under paragraph (a), any party to the dispute, by written notice to the other parties and to the Deputy Minister of Forests, may request the deputy minister to appoint a conciliator;

(f) within 7 days of receiving a request under paragraph (e) to appoint a conciliator, the Deputy Minister of Forests or a person designated by the deputy minister must appoint a registered mediator or a registered arbitrator to act as conciliator;

(g) mediation and arbitration proceedings must be conducted by the conciliator described in paragraph (d) or appointed under paragraph (f);

(h) the person appointed as the conciliator for a dispute deemed to exist with respect to a particular forestry revitalization proposal must act as conciliator in respect of all disputes that arise with respect to the ungrouped licence or group of licences to which the forestry revitalization proposal pertains.

(9) A notice given or delivered under this Division must be given or delivered in accordance with section 8 (13) (b).

4 Section 33.2 is amended

(a) by repealing subsection (1) and substituting the following:

(1) Subject to subsection (4), after receipt of an order from the minister under section 3 (2) of the Forestry Revitalization Act for a group of licences, or after June 21, 2004 for an ungrouped licence, a licence holder may make one or more forestry revitalization proposals regarding the replaceable contracts pertaining to those licences to

(a) vary the amount of work specified in, or to terminate, one or more of those replaceable contracts, or

(b) change a contract such that it pertains to a different licence. ,

(b) in subsection (3) by striking out "for a licence in a group of licences and after September 1, 2004 for an ungrouped licence",

(c) in subsection (4) by striking out "A licence holder must not" and substituting "Subject to subsection (5), a licence holder must not" , and

(d) by repealing subsection (5) and substituting the following:

(5) Despite subsection (4), the licence holder may include a licence in more than one forestry revitalization proposal if

(a) the licence was included in an order under section 3 of the Forestry Revitalization Act and was either included in a forestry revitalization proposal or was subject to proportionate reduction under section 33.6, and

(b) the licence holder receives a subsequent order from the minister under section 3 of the Forestry Revitalization Act in respect of that licence.

(6) A forestry revitalization proposal may include licences from the coastal area or licences from the interior area, but not both.

5 Section 33.21 is repealed and the following substituted:

Maximum replaceable contract reduction

33.21 (1) Subject to subsection (2), the total effect of the reduction in allowable annual cut for an ungrouped licence or for a group of licences under the Forestry Revitalization Act as

(a) proposed in all forestry revitalization proposals made by the licence holder for that ungrouped licence or group of licences and accepted or deemed to be accepted under this Division, and

(b) imposed by proportionate reduction under section 33.6

must not result in the replaceable contract proportion being less than the minimum replaceable contract proportion.

(2) The minister may by order permit the effect of the reduction in allowable annual cut for an ungrouped licence or a group of licences to be applied in a manner that results in the replaceable contract proportion being less than the minimum replaceable contract proportion.

(3) If, as a result of a proportionate reduction or of one or more forestry revitalization proposals, or both, in respect of an ungrouped licence or a group of licences, the proportion of timber harvesting services to be carried out by contractors under replaceable contracts with the licence holder is less than

(a) the minimum replaceable contract proportion, or

(b) some other proportion ordered by the minister under subsection (2),

the amount of work in each replaceable contract that pertains to the ungrouped licence or group of licences is increased proportionately such that the replaceable contract proportion equals the minimum replaceable contract proportion, or some other proportion ordered by the minister under subsection (2).

6 Section 33.22 is repealed and the following substituted:

Contents and delivery of forestry revitalization proposal by a licence holder

33.22 A licence holder in making a forestry revitalization proposal must do the following:

(a) make the proposal in writing;

(b) specify the licences that are included in the proposal;

(c) list each contractor with a replaceable contract that pertains to a licence included in the forestry revitalization proposal and show the amount of work specified in each contract;

(d) specify how the licence holder proposes that the amount of work specified in each replaceable contract will be increased or decreased, if at all, and the proposed date of increase or decrease;

(e) specify those replaceable contracts that the licence holder proposes to terminate, if any, and the proposed date of termination;

(f) specify any proposed changes to a replaceable contract to cause it to pertain to a different licence and the proposed date of change;

(g) describe how the forestry revitalization proposal takes into account the AAC reduction criteria;

(h) apply the AAC reduction criteria fairly, impartially and without regard to any past disagreements between the parties;

(i) include enough information to allow a contractor acting reasonably to determine if and how the licence holder is complying with section 33.21;

(j) deliver the proposal to each contractor with a replaceable contract that pertains to a licence that is included in the forestry revitalization proposal.

7 Section 33.4 is amended

(a) by repealing subsection (1) and (2) and substituting the following:

(1) If a contractor believes a forestry revitalization proposal received from a licence holder under section 33.22 does not comply with the AAC reduction criteria, the contractor may give written notice of the objection to the licence holder within 30 days of delivery of the proposal to that contractor.

(2) A notice under subsection (1) must explain why the contractor believes the proposal does not comply with the AAC reduction criteria. , and

(b) by adding the following subsection:

(5) If an impacted contractor who objects to a proposal under subsection (1) believes the proposal does not meet the requirements of section 33.22 (h) in respect of that contractor, that contractor may  include a fairness objection in the notice under subsection (2).

8 Section 33.42 is repealed and the following substituted:

Fairness objections

33.42 (1) If a forestry revitalization proposal in respect of the coastal area is not rejected under section 33.41 (2) within 30 days after the last day the proposal is delivered to a contractor,

(a) the forestry revitalization proposal is deemed to be accepted and each contract entered into by the licence holder in respect of the licences in the proposal is deemed to be amended or terminated as provided for in the proposal, and

(b) if one or more impacted contractors who objected to the proposal have made a fairness objection under section 33.4 (5), a dispute is deemed to exist between the licence holder and each impacted contractor who objected to the proposal and who made a fairness objection.

(2) For a dispute deemed to exist under subsection (1),

(a) the sole issue is whether a forestry revitalization proposal deemed to be accepted meets the requirements of section 33.22 (h) with respect to the impacted contractors who have made fairness objections,

(b) the conciliator may have regard to other forestry revitalization proposals made by the licence holder, and

(c) if the conciliator concludes that the requirements of section 33.22 (h) are not met in respect of one or more of the impacted contractors who have made fairness objections, the licence holder is liable to those impacted contractors for damages in an amount determined by the conciliator in accordance with section 33.7.

(3) If a forestry revitalization proposal in respect of the interior area is not rejected under section 33.41 (2) within 30 days after the last day the proposal was delivered to a contractor, and

(a) if no impacted contractor who objected to the proposal has made a fairness objection, the forestry revitalization proposal is deemed to be accepted and each contract entered into by the licence holder in respect of the licences in the proposal is deemed to be amended or terminated as provided for in the proposal, or

(b) if one or more impacted contractors who objected to the proposal has made a fairness objection under section 33.4 (5), a dispute is deemed to exist between the licence holder and those impacted contractors, which dispute must be resolved in accordance with section 33.51 (9) and (10).

9 Section 33.43 is repealed and the following substituted:

Rejection of proposal

33.43 (1) If a forestry revitalization proposal is rejected under section 33.41 (2) within 30 days after the last day the proposal was delivered to a contractor, the licence holder may, within 30 days after receipt of the last notice of objection under section 33.4, by written notice to all contractors who received the forestry revitalization proposal,

(a) elect proportionate reduction,

(b) make an amended forestry revitalization proposal, or

(c) commence mediation and arbitration proceedings under section 8.

(2) The licence holder is deemed to have elected proportionate reduction if the licence holder, in accordance with subsection (1), does not

(a) elect proportionate reduction,

(b) make an amended forestry revitalization proposal, or

(c) commence mediation and arbitration.

10 Section 33.5 is repealed and the following substituted:

Dispute resolution proceedings for
a forestry revitalization proposal on the coast

33.5 (1) If a licence holder commences mediation and arbitration referred to in section 33.43 (1) (c) because a forestry revitalization proposal in respect of licences in the coastal area was rejected, a single dispute is deemed to exist, as of the date of commencement, between the licence holder and all impacted contractors who have delivered notices of objection to the licence holder under section 33.4 (1).

(2) The following apply to mediation or arbitration commenced in respect of a dispute deemed to exist under subsection (1):

(a) a licence holder must deliver a notice of the dispute resolution proceedings to each contractor with a replaceable contract that pertains to a licence included in the forestry revitalization proposal, and to each union whose members may be affected by the disposition of the dispute;

(b) the following may take part in the mediation or arbitration as an intervenor to the extent permitted by the conciliator:

(i) a contractor who is entitled to receive notice under paragraph (a), and who is not an impacted contractor who delivered a notice of objection under section 33.4 (1);

(ii) a union that is entitled to receive notice under paragraph (a);

(c) the conciliator must determine

(i) if the forestry revitalization proposal is consistent with the AAC reduction criteria, and

(ii) if the requirements of section 33.22 (h) have been met in respect of a contractor who is a party to the dispute and has made a fairness objection under section 33.4 (5),

and in making a determination under subparagraph (i) or (ii), the conciliator may have regard to other forestry revitalization proposals made by the licence holder.

(3) If the conciliator determines under subsection (2) that the forestry revitalization proposal is consistent with the AAC reduction criteria and meets the requirements of section 33.22 (h), the forestry revitalization proposal is deemed to be accepted and each contract entered into by the licence holder in respect of licences in the proposal is deemed to be amended or terminated as provided for in the proposal.

(4) If the conciliator determines under subsection (2) that the forestry revitalization proposal is consistent with the AAC reduction criteria, but that the requirements of section 33.22 (h) have not been met with respect to one or more impacted contractors who made fairness objections,

(a) the forestry revitalization proposal is deemed to be accepted and each contract entered into by the licence holder in respect of licences in the proposal is deemed to be amended or terminated as provided for in the proposal, and

(b) the licence holder is liable to those impacted contractors for damages in an amount to be determined by the conciliator in accordance with section 33.7.

(5) If the conciliator determines under subsection (2) that the forestry revitalization proposal is not consistent with AAC reduction criteria, the licence holder may, within 30 days of the determination by the conciliator and by written notice to each contractor with a replaceable contract that pertains to the forestry revitalization proposal,

(a) impose the forestry revitalization proposal,

(b) make an amended forestry revitalization proposal, or

(c) elect proportionate reduction.

(6) A licence holder is deemed to have elected proportionate reduction if the holder

(a) has not imposed the forestry revitalization proposal,

(b) made an amended forestry revitalization proposal, or

(c) elected proportionate reduction

within 30 days of the determination under subsection (2) that the proposal is not consistent with the AAC reduction criteria.

(7) If a licence holder imposes the forestry revitalization proposal under subsection (5) (a),

(a) that proposal is deemed to be accepted and each contract entered into by the licence holder with respect to the licences held by the licence holder and included in the proposal is deemed to be amended or terminated on the date provided in the proposal, and

(b) the licence holder is liable to any impacted contractor who objected to the proposal for damages in an amount determined by the conciliator in accordance with section 33.7.

(8) If a licence holder makes an amended forestry revitalization proposal, under subsection (5), in respect of licences, and a rejection threshold of contractors gives the licence holder written notice of objection to the amended forestry revitalization proposal under section 33.4,

(a) despite section 33.43, that proposal is deemed to be accepted, and each contract that is entered into by the licence holder with respect to the licences held by the licence holder and included in the proposal is deemed to be amended or terminated on the date provided in the proposal, and

(b) the licence holder is liable to each impacted contractor who objected to that proposal in an amount determined by the conciliator in accordance with section 33.7.

(9) If a licence holder makes an amended forestry revitalization proposal, under subsection (5), in respect of licences, and a rejection threshold of contractors does not give the licence holder written notice of objection to the amended forestry revitalization proposal under section 33.4

(a) that proposal is deemed to be accepted and each contract entered into by the licence holder with respect to the licences held by the licence holder and included in the proposal is deemed to be amended or terminated on the date provided in the proposal,

(b) the conciliator may determine if the amended forestry revitalization proposal meets the requirements of section 33.22 (h), on the application of any impacted contractor who made a fairness objection in relation to that proposal within 30 days after receipt of the amended forestry revitalization proposal from the licence holder, and

(c) if the conciliator makes a determination under paragraph (b) that the amended proposal does not meet the requirements of section 33.22 (h) in respect of one or more of the impacted contractors who objected, the licence holder is liable in damages to those contractors in an amount to be determined by the conciliator in accordance with section 33.7.

11 The following section is added:

Dispute resolution proceedings for a forestry revitalization proposal for the interior

33.51 (1) If a licence holder commences mediation and arbitration referred to in section 33.43 (1) (c) because a forestry revitalization proposal in respect of licences in the interior area was rejected, a single dispute is deemed to exist, as of the date of commencement, between the licence holder and all impacted contractors who have delivered notices of objection to the licence holder under section 33.4 (1).

(2) The following apply to mediation or arbitration commenced in respect of a dispute deemed to exist under subsection (1):

(a) a licence holder must deliver a notice of the dispute resolution proceedings to each contractor with a replaceable contract that pertains to a licence included in the forestry revitalization proposal, and to each union whose members may be affected by the disposition of the dispute;

(b) the following may take part in the mediation or arbitration as an intervenor to the extent permitted by the conciliator:

(i) a contractor who is entitled to receive notice under paragraph (a), and who is not an impacted contractor who delivered a notice of objection under section 33.4 (1);

(ii) a union that is entitled to receive notice under paragraph (a);

(c) the conciliator must determine

(i) if the forestry revitalization proposal is consistent with the AAC reduction criteria, and

(ii) if the requirements of section 33.22 (h) have been met in respect of a contractor who is a party to the dispute and has made a fairness objection under section 33.4 (5),

and in making a determination under subparagraph (i) or (ii), the conciliator may have regard to other forestry revitalization proposals made by the licence holder.

(3) If the conciliator determines under subsection (2) that the forestry revitalization proposal is consistent with the AAC reduction criteria, and

(a) meets the requirements of section 33.22 (h), the forestry revitalization proposal is deemed to be accepted and each contract entered into by the licence holder in respect of licences in the proposal is deemed to be amended or terminated as provided for in the proposal, or

(b) does not meet the requirements of section 33.22 (h), subsection (10) will apply.

(4) If the conciliator has determined under subsection (2) that the forestry revitalization proposal is not consistent with AAC reduction criteria, the licence holder may, within 30 days of the determination by the conciliator and by written notice to each contractor with a replaceable contract that pertains to the forestry revitalization proposal,

(a) make an amended forestry revitalization proposal, or

(b) elect proportionate reduction.

(5) If a licence holder has not made an amended forestry revitalization proposal, or elected proportionate reduction, within 30 days of the determination under subsection (2) that the proposal is not consistent with the AAC reduction criteria, the licence holder is deemed to have elected proportionate reduction.

(6) If, in respect of an amended forestry revitalization proposal made under subsection (4),

(a) a rejection threshold of contractors gives a licence holder written notice of objection to the proposal under section 33.4, and

(b) at least one of those contractors is an impacted contractor

the licence holder, by written notice to all contractors who received the proposal, must

(c) elect proportionate reduction, or

(d) refer the proposal to the conciliator.

(7) If a licence holder refers the amended forestry revitalization proposal to a conciliator under subsection (6), subsection (2) will apply, except that if the conciliator determines that the forestry revitalization proposal is consistent with the AAC reduction criteria, but that the requirements of section 33.22 (h) have not been met with respect to one or more impacted contractors who made fairness objections,

(a) the forestry revitalization proposal is deemed to be accepted and each contract entered into by the licence holder in respect of licences in the proposal is deemed to be amended or terminated as provided for in the proposal, and

(b) the licence holder is liable to those impacted contractors for damages in an amount to be determined by the conciliator in accordance with section 33.7.

(8) If

(a) the conciliator has determined under subsection (2) that the amended forestry revitalization proposal referred under subsection (6) is not consistent with the AAC reduction criteria, or

(b) the licence holder has not elected proportionate reduction or referred an amended forestry revitalization proposal to the conciliator under subsection (5),

the licence holder is deemed to have elected proportionate reduction.

(9) For a dispute deemed to exist under section 33.42 (3), the sole issue is whether a forestry revitalization proposal deemed to be accepted meets the requirements of section 33.22 (h) with respect to the impacted contractors who have made fairness objections.

(10) If

(a) for a dispute deemed to exist under section 33.42 (3), the conciliator determines that the requirements of section 33.22 (h) are not met in respect of one or more of the impacted contractors who have made fairness objections to the forestry revitalization proposal, or

(b) the conciliator has determined under subsection (2) that the forestry revitalization proposal is consistent with the AAC reduction criteria, but that the requirements of section 33.22 (h) have not been met with respect to one or more impacted contractors who made fairness objections to the proposal,

the licence holder may, within 30 days of the determination and by written notice to those contractors,

(c) amend the forestry revitalization proposal with respect to those impacted contractors only, or

(d) elect to pay damages to those impacted contractors in respect of whom the conciliator has found that the requirements of section 33.22 (h) have not been met, in an amount determined by the conciliator in accordance with section 33.7.

(11) If a licence holder amends a forestry revitalization proposal under subsection (10), and one or more of the impacted contractors in respect of whom the proposal was amended objects to the amendment, the conciliator may, on the application of any of those impacted contractors made within 30 days after receipt of the amended forestry revitalization proposal from the licence holder, determine if the amended forestry revitalization proposal meets the requirements of section 33.22 (h).

(12) If the conciliator makes a determination under subsection (11) that the amended proposal does not meet the requirements of section 33.22 (h) in respect of one or more impacted contractors, or if the licence holder fails to make an amended forestry revitalization proposal under subsection (10) (c) or to elect damages under paragraph (10) (d), the licence holder is liable for damages to those contractors in an amount to be determined by the conciliator in accordance with section 33.7.

(13) The amended forestry revitalization proposal made under subsection (10) (c), or if an amended proposal is not made, the forestry revitalization proposal described in subsection (10) (a) or (b), as the case may be, is deemed to be accepted and each contract entered into by the licence holder in respect of licences in the proposal is deemed to be amended or terminated as provided for in the proposal.

12 Section 33.6 is amended

(a) in subsection (1), by striking out "under section 33.43" and substituting "under section 33.43 (1) (c)",

(b) in subsection (3) by striking out "under section 33.43 or 33.5" and substituting "under section 33.43, 33.5 or 33.51" , and

(c) by adding the following:

(5) If proportionate reduction is elected, deemed elected or implemented, the parties to a replaceable contract must amend their contract, if necessary, to reflect that reduction.

13 Section 33.7 is repealed and the following substituted:

Damages

33.7 (1) If an impacted contractor is entitled to receive damages from a licence holder under either section 33.5 or 33.51, the amount of damages payable by the licence holder must equal

X – Y

where

X	is the damages that the conciliator determines would be payable based on a wrongful termination of a replaceable contract with an amount of work equal to the difference between
	(i)	the amount of work each year that would be available to that contractor based on a proportionate reduction, and
	(ii)	the amount of work each year as proposed for that contractor in the forestry revitalization proposal,
	which determination is to be made without reference to any requirement by the contractor to mitigate the loss associated with that difference whether under the Forestry Revitalization Trust or otherwise, and
Y	is the amount of mitigation funds that a contractor will receive under the Forestry Revitalization Trust based on a reduction in amount of work equivalent to the difference between
	(i)	the amount of work each year that would be available to that contractor based on a proportionate reduction, and
	(ii)	the amount of work each year as proposed for that contractor in the forestry revitalization plan.

(2) Except as provided in subsection (1), a licence holder is not liable to a contractor or subcontractor for any damages or other remedy arising directly or indirectly from a reduction in the amount of work in, or termination of, a replaceable contract, that takes place as a result of this Division.

(3) A contractor is not liable to a subcontractor for any damages or other remedy arising directly or indirectly from a reduction in the amount of work in, or termination of, a replaceable contract, that takes place as a result of this Division.

(4) A contractor or subcontractor, within 90 days of receiving notice that the amount of work under the contract or subcontract has been reduced under this Division, may terminate a replaceable contract or subcontract, by written notice to the licence holder or contractor, without incurring any liability to the other party.

14 Section 44 is amended

(a) the volume of timber deemed to be harvested under a phase contract, other than a phase contract for logging road construction, logging road maintenance and logging access road construction, is calculated by applying the formula

M x P

where

M	is the aggregate of the phase contribution amounts for the phases included in the contract divided by the allowable annual cut of the licence to which the contract pertains, and
P	is the volume of timber harvested under the phase contract,

(b) the volume of timber deemed to be harvested under a phase contract for logging road construction, logging road maintenance or logging access road construction is calculated by applying the formula

Q

x

(R ÷ S)

where

Q	is the volume of timber harvested under the licence,
R	is the total cost for the appropriate phase contract in the year of construction or maintenance, as the case may be, and
S	is the total cost incurred by the licence holder for all phases of the timber harvesting operation on the licence, and

15 Schedule 5 is amended

(a) in section 2 by striking out "60 days" and substituting "30 days" , and

(b) in section 4 by adding "and must be resolved in accordance with Part 5, Division 4 of the regulation" after ", a rate dispute is deemed to exist" .

16 The heading for Schedule 21 is repealed and the following is substituted:

Standard Provision — Replacement of Subcontract
on Licence, Transfer, Subdivision or Consolidation

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