BILL 29 – 2003
FORESTRY (REVITALIZATION) AMENDMENT ACT, 2003

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 8 (2) (b) of the Forest Act, R.S.B.C. 1996, c. 157, is amended by striking out "section 39 (1) (a) to (d)" and substituting "section 39 (2) or (3)".

2 Sections 14 (f), 35 (1) (m) and 71 are repealed.

3 Section 19 is repealed and the following substituted:

Consolidation and subdivision of forest licences

19 (1) In this section, "minister" includes a person authorized by the minister.

(2) Subject to this section, the minister, by one or more of the methods set out in subsection (5), may

(a) replace 2 or more forest licences held by the same person for the same timber supply area with one of those forest licences or a new forest licence held by that person for that timber supply area, or

(b) amend a single forest licence held by a person for a timber supply area and enter into one or more forest licences held by that person for that timber supply area,

if the minister first receives the consent of the holder of the licences or licence.

(3) Subject to this section, the minister, by a method or combination of methods under subsection (5), must

(a) replace 2 or more forest licences held by the same person for the same timber supply area with one of those forest licences or a new forest licence held by that person for that timber supply area, or

(b) amend a single forest licence held by a person for a timber supply area and enter into one or more forest licences held by that person for that timber supply area,

if the holder requests the replacement or amendment by written request delivered to the minister.

(4) The minister may refuse to replace or amend, under subsection (3), one or more forest licences if the minister considers that the replacement or amendment would compromise forest management.

(5) For the purposes of subsections (2) and (3), the methods are as follows:

(a) reducing the allowable annual cut specified in a forest licence and increasing the allowable annual cut for one or more other forest licences by a volume equal to the reduction;

(b) amending or cancelling a forest licence;

(c) entering into one or more forest licences.

(6) In making a replacement referred to in subsection (2) or (3), the minister must ensure that the total of the allowable annual cuts, after the replacements, of all of the forest licences involved remains the same as it was before any replacements under this section.

(7) A forest licence as defined

(a) in paragraph (a) of the definition of "licence" in section 75.4 (1), or

(b) in section 75.5

may not be replaced under subsection (2) or (3) except with a forest licence that is also a forest licence as defined

(c) in paragraph (a) of the definition of "licence" in section 75.4 (1), or

(d) in section 75.5.

(8) A replaceable forest licence may not be replaced under subsection (2) or (3) except with a forest licence that is also replaceable.

(9) A forest licence that provides that a replacement for the forest licence must not be offered may not be replaced under subsection (2) or (3) except with a forest licence that also provides that a replacement for it must not be offered.

(10) 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.

4 Section 39 is repealed and the following substituted:

Consolidation and subdivision of tree farm licences

39 (1) In this section, "minister" includes a person authorized by the minister.

(2) Subject to this section, the minister, by a method or combination of methods under subsection (5), may

(a) replace 2 or more tree farm licences held by the same person with one of those tree farm licences held by that person or a new tree farm licence held by that person, or

(b) amend a single tree farm licence held by a person and enter into one or more tree farm licences held by that person,

if the minister first receives the consent of the holder of the licences or licence.

(3) Subject to this section, the minister, by a method or combination of methods under subsection (5), must

(a) replace 2 or more tree farm licences held by the same person with one of those tree farm licences held by that person or a new tree farm licence held by that person, or

(b) amend a single tree farm licence held by a person and enter into one or more tree farm licences held by that person,

if the holder requests the replacement or amendment by written request delivered to the minister.

(4) The minister may refuse to replace or amend, under subsection (3), one or more tree farm licences if the minister considers that the replacement or amendment would compromise forest management.

(5) For the purposes of subsections (2) and (3), the methods are as follows:

(a) deleting all or part of the licence area from a tree farm licence and adding the deleted area to the licence area of another tree farm licence;

(b) cancelling a tree farm licence if the area covered by the licence has been added to the licence area in another tree farm licence;

(c) amending a tree farm licence;

(d) entering into one or more tree farm licences covering the same land as was covered in the licences being replaced;

(e) subject to subsection (6), specifying the allowable annual cuts that will apply to areas covered by tree farm licences amended or entered into under this subsection.

(6) In making a replacement referred to in subsection (2) or (3) the minister must ensure that the total of the allowable annual cuts, after the replacements, of all of the tree farm licences involved remains the same as it was before any replacements under this section.

(7) A tree farm licence as defined in paragraph (b) of the definition of "licence" in section 75.4 (1) may not be replaced under subsection (2) or (3) except with a tree farm licence that is also a tree farm licence as defined in paragraph (b) of the definition of licence in section 75.4 (1).

(8) 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.

5 Section 43 is repealed and the following substituted:

Consolidation and subdivision of pulpwood agreements

43 (1) In this section, "minister" includes a person authorized by the minister.

(2) Subject to this section, the minister, by a method or combination of methods under subsection (5), may

(a) replace 2 or more pulpwood agreements held by the same person with one of those pulpwood agreements held by that person or a new pulpwood agreement held by that person, or

(b) amend a single pulpwood agreement held by a person and enter into one or more pulpwood agreements held by that person,

if the minister first receives the consent of the holder of the agreements or agreement.

(3) Subject to this section, the minister, by a method or combination of methods under subsection (5), must

(a) replace 2 or more pulpwood agreements held by the same person with one of those pulpwood agreements held by that person or a new pulpwood agreement held by that person, or

(b) amend a single pulpwood agreement held by a person and enter into one or more pulpwood agreements held by that person,

if the holder requests the replacement or amendment by written request delivered to the minister.

(4) The minister may refuse to replace or amend, under subsection (3), one or more pulpwood agreements if the minister considers that the replacement or amendment would compromise forest management.

(5) For the purposes of subsections (2) and (3), the methods are as follows:

(a) deleting all or part of the area from a pulpwood agreement and adding the deleted area to the area of another pulpwood agreement;

(b) cancelling a pulpwood agreement if the area covered by the agreement has been added to the area in another pulpwood agreement;

(c) amending a pulpwood agreement;

(d) entering into one or more pulpwood agreements covering the same land as was covered in the agreement being replaced.

(6) 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.

6 Section 43.3 is amended by adding the following:

(f.1) may include one or more provisions of Division 3.1 of Part 4 with any variations necessary or desirable to adapt the provision or provisions for the purposes of the agreement, .

7 Section 53 (1) is amended

(a) by repealing the definition of "agreement" and substituting the following:

"agreement" means an agreement in the form of a licence, permit or agreement referred to in section 12; ,

(b) by adding the following definition:

"disposition", in relation to an agreement, includes a disposition of an interest in the agreement; , and

(c) by repealing the definitions of "5 year allowable cut", "5 year cut control period", "undercut carry forward", "volume of timber harvested during a calendar year" and "volume of timber harvested during a 5 year cut control period".

8 Sections 53 (1.1) and 64 to 66 are repealed.

9 Sections 54, 55, 56 and 56.1 (1) to (4) are repealed and the following substituted:

Transfer of agreements permitted

54 (1) Subject to subsection (2) and to section 54.4, the holder of an agreement may dispose of the agreement to another person.

(2) A disposition of an agreement is without effect unless

(a) both the holder of the agreement and the intended recipient of the agreement give written notice of the intended disposition

(i) to the minister, and

(ii) in the form required by the minister,

(b) as of the end of the day of the completion of the disposition, all money

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

(ii) due and payable to the government under that section

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,

(c) in the case of a disposition of an agreement that is a tree farm licence, any private tenure in the tree farm licence area remains subject to the tree farm licence,

(d) in the case of a disposition of an agreement that is a woodlot licence, any private land in the woodlot licence area remains subject to the woodlot licence,

(e) the minister, on being satisfied that the requirements set out in section 54.1 have been met, gives notice to the holder and the intended recipient that the disposition may proceed to completion, specifying in the notice the latest date by which it must be completed, and

(f) the disposition is completed by the date referred to in paragraph (e).

Transfer requirements

54.1 On receipt of written notice of an intended disposition of an agreement in accordance with section 54, the minister must give the notice under section 54 (2) (e), if satisfied that

(a) in the case of the disposition of an agreement that is a tree farm licence, forest licence or pulpwood agreement, the disposition will not unduly restrict competition in the standing timber markets, log markets or chip markets,

(b) in the case of a disposition of an agreement that is a BC timber sales agreement, the intended recipient is registered in the applicable category of BC timber sales enterprises, and

(c) in the case of a disposition of an agreement that is a woodlot licence, the intended recipient is a person, band or corporation that, under section 44 or 46.1, may enter into a woodlot licence.

Confirmation of completion of disposition and effect of completion

54.2 (1) On completion of the intended disposition of an agreement referred to in section 54, both the holder of the agreement and the person who acquired the agreement under the disposition must confirm the completion in writing to the minister within 21 days after the completion.

(2) On completion of the intended disposition referred to in section 54, the person who acquired the agreement under the disposition becomes the holder of the agreement for the purposes of this Act.

Transfers exempt from certain requirements

54.3 (1) Sections 54 to 54.2 do not apply to, or in respect of,

(a) a disposition in good faith of an agreement, by way of a grant of a mortgage or a security interest,

(b) a disposition to the trustee in bankruptcy of the holder of the agreement,

(c) a disposition made by way of transmission from the estate of a deceased person to that person's personal representative, or

(d) a disposition in other prescribed circumstances.

(2) Within 3 months after completion of a disposition under subsection (1) (b) to (d) of an agreement, the person who acquired the agreement under the disposition must notify the minister in writing of the disposition.

Transfer of certain agreements not permitted

54.4 (1) The holder of an agreement may not dispose of the agreement to another person if the agreement

(a) is an agreement in respect of which rights are under suspension, in whole or in part, under section 76 or 78,

(b) is an agreement that

(i) is entered into under section 47.3, or

(ii) is a community forest agreement

unless the disposition is made in prescribed circumstances to a person who meets prescribed criteria,

(c) is a road permit, unless the disposition is made in conjunction with the disposition of the agreement to which the road permit pertains,

(d) is a licence to cut unless the disposition is made in conjunction with a disposition of

(i) land, or

(ii) a right to occupy land

to which the licence to cut pertains, or

(e) is a free use permit.

(2) A disposition of an agreement contrary to this section is without effect.

Change in control of a corporation that is the holder of an agreement

54.5 (1) Without notice and despite section 77, the minister may cancel an agreement if the holder of the agreement is a corporation and

(a) the holder amalgamates with another corporation or, by means of one or a series of transactions, the control of the holder, or of another corporation that directly or indirectly controls the holder, changes, is acquired or is disposed of, and

(b) immediately after completion of the amalgamation, the change of control, the disposition of control or the acquisition of control, all as set out in paragraph (a),

(i) all money

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

(B) due and payable to the government under that section

in respect of the agreement

(C) has not been paid, and

(D) is not the subject of an arrangement for payment approved by the minister responsible for collecting the money,

(ii) in the case of an agreement that is a tree farm licence, forest licence or pulpwood agreement, the minister is satisfied that the change of control, the disposition of control or the acquisition of control unduly restricts competition in the standing timber market, log market or chip market,

(iii) in the case of an agreement that is a BC timber sales agreement, the change of control, the disposition of control or the acquisition of control results in the BC timber sales agreement being held by a person who is not registered in the applicable category of BC timber sales enterprises,

(iv) in the case of an agreement that is a woodlot licence, the change of control, the disposition of control or the acquisition of control results in the woodlot licence being held by a person who, under section 44 or 46.1, is not permitted to enter into a woodlot licence, or

(v) on the date of the disposition, rights under the agreement are suspended, in whole or in part, under section 76 or 78.

(2) This section does not apply to a change in, or acquisition of, control of a corporation that is caused by a transmission of shares in its capital from the estate of a deceased person to the person's personal representative.

Effect of disposition on obligations

54.6 (1) If a disposition of an agreement is completed in accordance with section 54, the person who acquired the agreement under the disposition becomes liable in the person's capacity as the holder of the agreement

(a) for payment of all money in respect of the agreement that

(i) is required to be paid to the government under the circumstances set out in section 130 of the Forest Act, whether before or after the date of completion, and

(ii) is due and payable to the government under that section after the date of the completion or under an arrangement for payment under section 54 (2) (b) (iv),

(b) to perform all obligations under the agreement, including but not limited to obligations accrued or accruing as of the date of completion and still outstanding as of that date, and

(c) to perform all other obligations in respect of the agreement, including but not limited to obligations

(i) accrued or accruing as of the date of completion of the disposition and still outstanding as of that date, and

(ii) imposed with respect to the agreement by or under

(A) this Act or the regulations under this Act,

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

(C) the Forest and Range Practices Act, or the regulations or standards under that Act.

(2) The person who disposes of an agreement is jointly and severally liable with the person who acquires the agreement under the disposition for the liabilities described in subsection (1) accrued or accruing as of the date of completion of the disposition and still outstanding as of that date.

Disposition or withdrawal of private land subject to
tree farm licence or woodlot licence

54.7 (1) The minister's prior written consent must be obtained for the disposition of private land or an interest in private land if the private land or interest is subject to a tree farm licence or to a woodlot licence.

(2) The minister may attach conditions to a consent given under subsection (1).

(3) The minister, without notice and despite section 77, may cancel a tree farm licence or woodlot licence if the minister determines that

(a) the minister's prior written consent was not obtained to a disposition for which the consent was required under in subsection (1), or

(b) the person to whom a consent was given under subsection (1) does not comply with a condition attached to the consent under subsection (2).

(4) If the minister determines that there are grounds under subsection (3) to cancel a tree farm licence or woodlot licence, but decides against cancelling the licence,

(a) the minister is deemed to have consented to the disposition of the licence, and

(b) the minister, in making the decision not to cancel, may attach conditions to the licence that the minister considers appropriate in the circumstances.

(5) The holder of a licence to which conditions are attached under subsection (4) (b) must comply with the conditions.

Transition

54.8 (1) Sections 54 to 56, as they were immediately before the coming into force of this section, apply to a consent that was given under section 54 (1) before the coming into force of this section.

(2) A job creation plan application served on the minister under section 56.1 that is not approved before the repeal of section 56.1 (1) to (4) may be approved after the repeal of section 56.1 (4) and before June 1, 2003, as if that section had not been repealed.

10 Section 56.1 (5) and (6) is repealed.

11 The following sections are added:

Extension of timber sale licences and cutting permits

58.1 (1) The holder of a timber sale licence with a term of less than 4 years may apply in writing to the timber sales manager for an extension of the term of that licence for a period that

(a) does not exceed one year, and

(b) does not result in a term for that licence of more than 4 years.

(2) The holder of a cutting permit with a term of less than 4 years, other than a cutting permit issued under a licence to cut, may apply in writing to the district manager for an extension of the term of that permit for a period that

(a) does not exceed one year, and

(b) does not result in a term for that permit of more than 4 years.

(3) Subject to subsection (8), the timber sales manager or district manager must accept an application under subsection (1) or (2) if

(a) the timber sale licence or the agreement under which the cutting permit was issued, does not prohibit the extensions,

(b) rights under the timber sale licence or the cutting permit are not under suspension, and

(c) the holder of the timber sale licence or cutting permit has paid to the government a fee equal to the amount determined under subsection (5).

(4) On the date of acceptance of an application under subsection (3), the term of the timber sale licence or cutting permit, as the case may be, is extended in accordance with the application.

(5) The fee referred to in subsection (3) (c)

(a) for a timber sale licence for which there was a bonus bid is a fee equal to a prescribed percentage of an amount calculated according to the following formula:

or

(b) for a timber sale licence for which there was a bonus offer is a fee equal to a prescribed percentage of an amount calculated according to the following formula:

and

(c) for a cutting permit is a fee equal to a prescribed amount or equal to an amount determined in accordance with a prescribed formula.

(6) However, at the request of the holder of a timber sale licence or cutting permit who has submitted an application for an extension under subsection (1) or (2), the minister or a person authorized by the minister may waive the fee referred to in subsection (3) (c), if the minister or authorized person is satisfied that the reasons for the extension are circumstances

(a) beyond the holder's control, and

(b) unrelated to the holder's financial situation.

(7) Despite the Financial Administration Act, a fee paid under subsection (3) (c) is not refundable and must not be credited towards stumpage.

(8) The timber sales manager or district manager may refuse to accept an application to extend the term of a timber sale licence or cutting permit under subsection (3) if, in his or her opinion, the extension would prevent the fulfilment of an obligation under the Forest and Range Practices Act or the Forest Practices Code of British Columbia Act.

Transition for extension

58.2 (1) Despite anything to the contrary in an agreement or a cutting permit, a cutting permit, issued before the coming into force of this section, with a term that expires after March 31, 2007 expires on that date instead of on the later date specified in it.

(2) Section 58.1 applies to a cutting permit, issued before the coming into force of this section, with a term that expires before March 31, 2007, except that an extension under section 58.1

(a) must not result in a term that expires after March 31, 2007, and

(b) is not subject to the fee referred to in section 58.1 (3) (c).

(3) This section does not apply to a cutting permit issued under a licence to cut.

(4) Section 58.1 does not apply to a timber sale licence entered into before this section comes into force.

Surrender of BC timber sales agreement

58.3 (1) The holder of a timber sale licence may apply in writing to the timber sales manager to surrender the licence.

(2) The timber sales manager must accept the application to surrender the licence if

(a) no harvesting has taken place under the licence, and

(b) any requirements prescribed for the purposes of this section are fulfilled.

(3) On the date of acceptance of an application under subsection (2)

(a) the timber sale licence that is the subject of the application is surrendered, and

(b) any deposit required under this Act in relation to the licence and held by the government is forfeited to the government.

(4) However, at the request of the holder of a timber sale licence, the minister or a person authorized by the minister may relieve the holder of a timber sale licence surrendered under this section from the forfeiture imposed under subsection (3) (b) if the minister or authorized person is satisfied that the reasons for the surrender are circumstances

(a) beyond the holder's control, and

(b) unrelated to the holder's financial situation.

12 Section 67 is amended

(a) by repealing subsections (1) to (3), and

(b) by repealing subsections (4) and (5).

13 The following division is added after section 75:

Division 3.1 -- Cut Control

Interpretation

75.1 In this Division:

"cut control period" in relation to a licence, means the cut control period determined for that licence under section 75.4 or 75.5;

"volume of timber harvested", in relation to a licence, as defined in section 75.2 or 75.4, a forest licence, as defined in section 75.5 or a woodlot licence, as defined in section 75.5, means the total of the following volumes that are charged to the licence during the term of the licence, if it is a licence as defined in section 75.2, or during the cut control period, if it is not, in statements issued on behalf of the government to the holder of the licence:

(a) the volume of timber cut under the licence and under road permits associated with the licence;

(b) the volume of timber estimated to be wasted or damaged under the licence and under road permits associated with the licence;

(c) the volume of timber cut, damaged or destroyed without authorization by the holder of the licence;

(d) the volume of timber credited in respect of the licence by the regional manager or the district manager;

(e) additionally, except for a licence as defined in section 75.2, the excess volume of timber, if any, carried forward under section 75.7 from the immediately preceding cut control period.

Limit on total cut for licences with a term of 5 years or less

75.2 (1) In this section, "licence" means a licence that has a term of 5 years or less and is a timber sale licence that specifies an allowable annual cut, is a forest licence, is a tree farm licence or is a woodlot licence.

(2) The holder of a licence must ensure that the volume of timber harvested during the term of the licence does not exceed the sum of the allowable annual cuts that during that term are

(a) authorized for the licence if it is a forest licence or woodlot licence, or

(b) available to the holder under the licence if it is a tree farm licence.

(3) If the volume of timber harvested during the term of a licence exceeds the limit specified in subsection (2), the holder of the licence must pay to the government the penalty determined under subsection (4).

(4) The penalty under subsection (3) is the product of

(a) the volume of timber harvested during the term of the licence that exceeds the applicable limit referred to in subsection (2), and

(b) the prescribed rate.

(5) A penalty under this section is in addition to stumpage payable or another penalty under this Act or another enactment.

Reconciliation of cut control for short term licences

75.3 (1) In this section, "licence" means a licence that is a forest licence or tree farm licence and has a term of 5 years or less.

(2) If a licence is replaced under section 19 or 39 by 2 or more other licences,

(a) each of the other licences, for the purposes of section 75.2, is deemed to have begun on the first day of the term of the replaced licence, and

(b) the volume of timber harvested that, before the replacement, was charged to the replaced licence must be charged to the other licences by allocating that volume among the other licences by the method set out in subsection (3).

(3) The part of the volume of timber harvested referred to in subsection (2) (b) to be allocated among each of the other licences must be determined by multiplying that volume by the fraction obtained by dividing the allowable annual cut of that other licence by the allowable annual cut of the replaced licence.

(4) If 2 or more licences are replaced under section 19 or 39 by one other licence,

(a) the term of that other licence, for the purposes of section 75.2, is deemed to have begun

(i) on the first day of the terms of the replaced licences, if their terms began on the same day, or

(ii) on the earliest of the dates on which the any of the terms of the replaced licences began, if their terms began on different dates, and

(b) the volumes that before the replacement were charged to the replaced licences must be charged to that other licence.

Cut control period for major licences

75.4 (1) In this section and in section 75.41 "licence" means

(a) a forest licence that specifies an allowable annual cut greater than 10 000 m3 and has a term of more than 5 years,

(b) a timber sale licence that specifies an allowable annual cut greater than 10 000 m3 and has a term of more than 5 years, or

(c) a tree farm licence that has a term of more than 5 years.

(2) The first cut control period for a licence that is not a replacement for another licence is 5 years beginning on January 1 of the calendar year in which the term of the licence begins.

(3) For a licence that is a replacement under section 15 or 36 for another licence,

(a) the first cut control period is the same as the cut control period for the replaced licence, immediately before its replacement, and

(b) the volume of timber harvested that, before the replacement, was charged to the replaced licence must be charged to the replacement licence.

(4) The holder of a licence may terminate

(a) the first cut control period for the licence, and

(b) any subsequent cut control period determined under this section,

by written notice, delivered after January 1 and before March 1 of the calendar year of delivery, to the regional manager or another person authorized by the regional manager.

(5) If the holder of a licence terminates a cut control period under subsection (4),

(a) the termination takes effect on December 31 of the year immediately preceding the calendar year of delivery of the notice of termination, and

(b) a new cut control period of 5 years for the agreement begins on January 1 of the calendar year of delivery of the notice of termination.

(6) If the holder of a licence who under subsection (4) may terminate the cut control period for the licence does not do so, then, immediately after the expiry of that cut control period, a new cut control period of 5 years for the licence begins.

(7) If a licence

(a) expires or is surrendered, or

(b) is terminated under this Act,

the cut control period for the licence ends on the date the licence expires, is surrendered or is terminated despite any thing to the contrary in this Division.

Cut control limit for major licences

75.41 (1) The holder of a licence must ensure that the volume of timber harvested during its cut control period does not exceed 110% of the sum of the allowable annual cuts that for that period are

(a) authorized for the licence if it is a forest licence, and

(b) available to the holder under the licence if it is a tree farm licence.

(2) Despite subsection (1), the holder of a licence must ensure that the volume of timber harvested during its final cut control period does not exceed 100% of the sum of the allowable annual cuts for that period that are

(a) authorized for the licence if it is a forest licence, or

(b) available to the holder under the licence if it is a tree farm licence.

Cut control period for other licences

75.5 (1) In this section:

"forest licence" means a forest licence that specifies an allowable annual cut of 10 000 m3 or less and has a term of more than 5 years;

"timber sale licence" means a timber sale licence that specifies an allowable annual cut of 10 000 m3 or less and has a term of more than 5 years;

"woodlot licence" means a woodlot licence that has a term of more than 5 years.

(2) The first cut control period for a forest licence or timber sale licence is 5 years beginning on January 1 of the calendar year in which the term of the licence begins.

(3) The first cut control period for a woodlot licence is 5 years beginning on

(a) January 1, or

(b) the first day of another month, that the district manager may designate,

of the calendar year in which the term of the woodlot licence begins.

(4) Immediately after the expiry of the first cut control period, or any subsequent cut control period, for a forest licence, timber sale licence or woodlot licence, a new 5 year cut control period for the licence begins.

(5) If a forest licence, timber sale licence or woodlot licence

(a) expires or is surrendered, or

(b) is terminated under any provision of this Act,

the cut control period for the licence ends on the date the licence expires, is surrendered or is terminated despite any thing to the contrary in this Division.

Cut control limit for other licences

75.51 (1) The holder of a timber sale licence that specifies an allowable annual cut forest licence or woodlot licence must ensure that the volume of timber harvested during a cut control period for the licence is not more than 120% of the sum of the allowable annual cuts for that period that are authorized for the licence.

(2) Despite subsection (1), the holder of a timber sale licence that specifies an allowable annual cut forest licence or woodlot licence must ensure that the volume of timber harvested during the final cut control period for the licence is not more than 100% of the sum of the allowable annual cuts for that period that are authorized for the licence.

Reconciliation of cut control for major and other licences

75.6 (1) In this section, "licence" means

(a) a licence as defined in section 75.4, or

(b) a forest licence as defined in section 75.5.

(2) If a licence is replaced under section 19 or 39 by 2 or more other licences,

(a) the first cut control period for each of the other licences is deemed to have begun on the same day on which the latest cut control period for the replaced licence began, and

(b) the volume of timber harvested that, before the replacement, was charged to the replaced licence during its latest cut control period must be charged to the other licences by allocating that volume among the other licences during their first cut control period by the method set out in subsection (3).

(3) The part of the volume of timber harvested referred to in subsection (2) (b) to be allocated among each of the other licences must be determined by multiplying that volume by the fraction obtained by dividing the allowable annual cut of that other licence by the allowable annual cut of the replaced licence.

(4) If 2 or more licences are replaced under section 19 or 39 by one other licence,

(a) the cut control periods for the replaced licences are deemed to have ended on December 31 of the calendar year immediately preceding the calendar year of the replacement,

(b) the first cut control period for the other licence begins on January 1 of the calendar year of the replacement, and

(c) the volume of timber harvested that

(i) was charged to the replaced licences during the calendar year of the replacement, and

(ii) exceeded the volume that was authorized for, or available to the holders of, the replaced licences for the immediately preceding cut control periods

must be charged to the first cut control period of that other licence.

Carry forward of excess harvest volume

75.7 If the volume of timber harvested during a cut control period for a licence, as defined in section 75.4, a forest licence, as defined in section 75.5, a timber sale licence, as defined in section 75.5 or a woodlot licence, as defined in section 75.5, exceeds the sum of the allowable annual cuts for that period that are

(a) authorized for the licence if it is a forest licence, timber sale licence or woodlot licence, or

(b) available to the holder under the licence if it is a tree farm licence,

the excess volume of timber must be treated as being timber harvested during a cut period that is the next cut control period.

No carry forward of unharvested volume

75.8 (1) If the volume of timber harvested during a cut control period for a licence, as defined in section 75.4, a forest licence, as defined in section 75.5, a timber sale licence, as defined in section 75.5 or a woodlot licence, as defined in section 75.5, is less than the sum of the allowable annual cuts for that period that are

(a) authorized for the licence if it is a forest licence, timber sale licence or woodlot licence, or

(b) available to the holder under the licence if it is a tree farm licence,

the holder of the licence must not harvest that unharvested volume of timber in a subsequent cut control period.

(2) The unharvested volume of timber, referred to in subsection (1), in a tree farm licence area or woodlot licence area may be disposed of to a person other than the holder of the tree farm licence or woodlot licence by means of

(a) a licence to cut, or

(b) a timber sale licence under section 20.

Exemption from cut control limits

75.9 (1) If the regional manager or a person authorized by the regional manager considers that timber on Crown land or other forest resources on Crown land is at risk because of wind, fire, insect or disease, he or she

(a) may exempt the holder of a licence, as defined in section 75.4, a forest licence, as defined in section 75.5, a timber sale licence, as defined in section 75.5 or a woodlot licence, as defined in section 75.5, from the limit under section 75.41 or 75.51, as the case may be, and

(b) in granting the exemption must specify a different limit and may attach conditions to the exemption.

(2) The holder of a licence who is exempted under this section must comply with a condition of the exemption.

Penalty for exceeding cut control limits

75.91 (1) If the volume of timber harvested during a cut control period for a licence, as defined in section 75.4, a forest licence, as defined in section 75.5, a timber sale licence, as defined in section 75.5 or a woodlot licence, as defined in section 75.5, exceeds

(a) the limit under section 75.41 or 75.51, as the case may be, or

(b) the limit specified under section 75.9,

the holder of the licence must pay to the government the penalty determined under subsection (2).

(2) The penalty under subsection (1) is the product of

(a) the volume of timber harvested during the cut control period that exceeds the applicable limit referred to in subsection (1), and

(b) the prescribed rate.

(3) A penalty under this section is in addition to stumpage payable or another penalty under this Act or another enactment.

Relief

75.92 If the allowable annual cut that is

(a) authorized for a forest licence, a timber sale licence that specifies an allowable annual cut or woodlot licence, or

(b) available to the holder of a tree farm licence,

is reduced under section 8, 9, 56, 61, 63 or 173, the minister or a person authorized by the minister may grant to the holder of the licence full or partial relief from the penalty under section 75.2 or 75.91.

Transitional -- cut control

75.93 (1) A 5 year cut control period that was in effect on January 1, 2003, in this section called the "original cut control period",

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

(b) for a licence as defined in section 75.4 that does not so provide,

(c) for a forest licence as defined in section 75.5 that does not so provide, or

(d) for a timber sale licence as defined in section 75.5 that does not so provide

is deemed for the purposes of this Division to be the first cut control period for the licence, in this section called the "first cut control period", having the same beginning date as the original cut control period.

(2) A volume of timber that under section 65 of this Act immediately before the repeal of that section by the Forest (Revitalization) Amendment Act, 2003 was deemed to be timber harvested in the original cut control period is deemed to be timber harvested in the first cut control period, without regard to any direction, as to amount of volume each year, under section 65 (5) before its repeal.

(3) A volume of timber that is referred to in a forest licence, and is treated in the licence as timber harvested in the original cut control period, is deemed, for the purposes of this Division, to be timber harvested in the first cut control period, if the licence

(a) provides that a replacement for the licence must not be offered, and

(b) was in effect on January 1, 2003.

(4) On and after January 1, 2003, the provisions, if any, of a forest licence that pertain to cut control requirements are without effect.

Transitional -- carry forward

75.94 (1) In this section:

"first cut control period", in relation to a licence, means the first cut control period under this Division for that licence;

"licence" means a licence, as defined in section 75.4, a forest licence, as defined in section 75.5 or a woodlot licence, as defined in section 75.5.

(2) A volume of timber that, before the repeal of section 67 of this Act by the Forest (Revitalization) Amendment Act, 2003, was the subject of an approval under section 67 (4) granted to the holder of a licence, is approved for harvesting in the first cut control period.

(3) A restriction under section 67 (4), as it was before its repeal, on volume of timber permitted to be harvested each year is without effect.

(4) Subject to subsections (5) and (6) of this section, an approval referred to in section 67 (4) may be granted under that provision, as if section 67 had not been repealed, in respect of a 5 year cut control period that ended before January 1, 2003, to the holder of a licence if

(a) no previous approval under section 67 (4) has been granted in respect of that 5 year cut control period, and

(b) the holder applies in writing before July 1, 2003 to the minister or a person authorized by the minister for the approval.

(5) An approval authorized under subsection (4) may not restrict the volume that may be harvested in any year of the first cut control period.

(6) The volume of timber that is the subject of an approval authorized under subsection (4) and granted to the holder of a licence

(a) must be harvested in the first cut control period for the licence, and

(b) for the purposes of the definition of "volume of timber harvested" in section 75.1 is deemed not to be charged to the licence.

14 The following section is added:

Relief from liability for appurtenancy and processing requirements

80.1 (1) In this section:

"appurtenancy requirement" means a provision of a licence that requires the holder to construct, modify or maintain a timber processing facility;

"licence" means a forest licence or a tree farm licence;

"non-replaceable licence" means a licence that provides that a replacement for it must not be offered;

"processing requirement" means a provision of a licence that requires the holder to process the timber harvested under the licence, or an equivalent volume of timber, through a timber processing facility;

"replaceable licence" means a licence for which a replacement licence must be offered under section 15 or 36.

(2) The holder of a replaceable licence, whether entered into before or after the coming into force of this subsection, is relieved in relation to the licence from

(a) any appurtenancy requirements, processing requirements or requirements of the licence directly related to either, and

(b) any commitments made in a proposal on which the award of the licence, or a predecessor of the licence, if applicable, was based, in relation to

(i) constructing, modifying or maintaining a timber processing facility, or

(ii) processing timber through a timber processing facility.

(3) On and after the later of

(a) the tenth anniversary of a non-replaceable licence, and

(b) the date this section comes into force,

the holder of a non-replaceable licence, whether entered into before or after the coming into force of this subsection, is relieved in relation to the licence from

(c) any appurtenancy requirements, processing requirements or requirements of the licence directly related to either, and

(d) any commitments made in a proposal on which the award of the licence, or a predecessor of the licence, if applicable, was based, in relation to

(i) constructing, modifying or maintaining a timber processing facility, or

(ii) processing timber through a timber processing facility.

15 Section 151 is amended

(a) in subsection (2) by adding the following:

(m.1) what constitutes unduly restricting competition for the purpose of section 54.1, including methods to be used, and factors to be taken into account, in making a determination under section 54.1 (a); , and

(b) by repealing subsection (6).

Transitional regulations

16 (1) The Lieutenant Governor in Council may make regulations he or she considers necessary or advisable for the purposes of

(a) more effectively bringing into operation the Forest Act as amended by this Act and the amendments made by this Act, and

(b) remedying any transitional difficulties encountered in doing so.

(2) A regulation made under this section may be made retroactive to a date not earlier than 5 years before the date this Act receives Royal Assent.

(3) This section is repealed 2 years after it comes into force and on its repeal, any regulations made under it are also repealed.

Commencement

17 (1) This Act, except sections 10 and 12 (b), comes into force by regulation of the Lieutenant Governor in Council.

(2) Section 10 comes into force on April 1, 2006.

(3) Section 12 (b) comes into force on July 1, 2003.