BILL
NUMBER		 TITLE CHAPTER
NUMBER
45 FOREST (REVITALIZATION) AMENDMENT ACT (No. 2), 2003 c. 31

Commencement:
86  
 This Act, except sections 12, 83 and 84, comes into force by regulation of the Lieutenant Governor in Council.

Royal Assent – May 29, 2003
  • B.C. Reg. 238/2003 – sections 6, 7, 23, 24 (in force June 20, 2003)
  • B.C. Reg. 400/2003 – sections 1(d), 4, 5, 19, 20, 22(a) to (c), 25, 26, 30, 33, 34, 44(a), (c) and (e), 49, 55 to 58, 60, 62 to 67, 74, 75, 76, 85 (in force Nov. 4, 2003)
  • B.C. Reg. 401/2003 – sections 2, 31, 54, 68 (in force Nov. 4, 2003)
  • B.C. Reg. 402/2003 – sections 10, 14 (the part that repeals section 24 of the Forest Act), 15 to 18, 39, 41, 44(b) and (d), 45, 46, 61, 69 to 73, 77 (in force March 31, 2004)
  • B.C. Reg. 403/2003 – sections 1(a), (b), (c) and (e), 3, 8, 9, 11, 13, 21, 22(d), 27, 28, 29, 32, 35 to 38, 40, 42, 43, 47, 48, 50 to 53, 59, 78 to 82 (in force Nov. 4, 2003)
  • B.C. Reg. 403/2003 – section 14 (the part that repeals section 23 of the Forest Act) (in force Dec. 31, 2003)


BILL 45 – 2003
FOREST (REVITALIZATION) AMENDMENT ACT (No. 2), 2003

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

 
Forest Act

1 Section 1 of the Forest Act, R.S.B.C. 1996, c. 157, is amended

(a) in subsection (1) in the definition of "BC timber sales agreement" by striking out "(b) to (e)" and substituting "(b) to (f)",

(b) in subsection (1) by repealing the definitions of "Christmas tree permit", "forest licence", "free use permit", "road permit", "timber licence", "timber sale licence", "tree farm licence" and "woodlot licence",

(c) in subsection (1) by repealing the definitions of "community forest agreement", "licence to cut", "major licence" and "pulpwood agreement" and substituting the following:

"community forest agreement" means

(a) a community forest pilot agreement,

(b) a long-term community forest agreement, and

(c) a probationary community forest agreement

as defined in section 43.1;

"licence to cut" means

(a) an occupant licence to cut as defined in section 47.4,

(b) a master licence to cut as defined in section 47.4, and

(c) a forestry licence to cut as defined in section 47.6;

"major licence" means

(a) a timber sale licence that was

(i) issued under section 23 (1) (a), before its repeal, or

(ii) entered under section 47.3 (1) (a),

(b) a forest licence,

(c) a timber licence,

(d) a tree farm licence, and

(e) a forestry licence to cut that

(i) specifies that it is a major licence,

(ii) is issued to satisfy the obligations of the government under a pulpwood agreement, or

(iii) is entered into under section 47.3 (1) (a);

"pulpwood agreement" means a pulpwood agreement entered into before April 1, 2003 under Part 3, Division 7; ,

(d) in subsection (1) in the definition of "merchantable timber" by striking out "means for a timber licence, trees that" and substituting "for the purposes of sections 28, 30 (c) and 74, means", and

(e) by adding the following subsection:

(5) For the purposes of this Act, unless the context otherwise indicates, a reference to a licence, agreement or permit listed in section 12 is a reference to that licence, agreement or permit as entered into or granted under this Act.

2 Section 8 (8) (c) is repealed.

3 Section 12 is repealed and the following substituted:

Form of agreements

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

(a) forest licence,

(b) timber sale licence,

(c) timber licence,

(d) tree farm licence,

(e) community forest agreement,

(f) community salvage licence,

(g) woodlot licence,

(h) licence to cut,

(i) free use permit,

(j) Christmas tree permit, or

(k) road permit.

(2) A timber sales manager may enter on behalf of the government into an agreement granting rights to harvest Crown timber in the form of a

(a) timber sale licence,

(b) forestry licence to cut, or

(c) road permit.

4 Section 13 is repealed and the following substituted:

Applications

13 (1) In this section, "eligible application" means an application made in response to an invitation for applications under subsection (2) that

(a) is made by an applicant

(i) who has tendered as required under subsection (2) (b), and

(ii) whom the minister or a person authorized by the minister considers to be qualified to perform the obligations specified under subsection (3) (c),

(b) conforms to subsection (3), and

(c) is not rejected under section 81 (3) or refused under section 81 (5).

(2) On request or on the minister's own initiative and by advertising in the prescribed manner, the minister or a person authorized by the minister

(a) may invite applications for a forest licence, and

(b) in doing so, must require that the applicant by written tender in a sealed container propose only a bonus bid or only a bonus offer.

(3) An application for a forest licence must

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

(b) include an offer by the applicant to pay to the government, in addition to other amounts payable under this Act and the regulations,

(i) stumpage under Part 7,

(ii) waste assessments for merchantable Crown timber, whether standing or felled, that could have been cut and removed under the forest licence, but, at the licensee's discretion, was not cut and removed, and

(iii) either a bonus bid or bonus offer, whichever is required under subsection (2), in the amount tendered, and

(c) include any information that the minister or a person authorized by the minister may require about the applicants' qualifications to

(i) carry out timber harvesting operations under the licence, or

(ii) perform specified obligations

(A) under the licence, or

(B) in respect of the licence or its holder, under this Act or another enactment.

(4) On receipt of applications and tenders in response to an invitation advertised under subsection (2), the minister or a person authorized by the minister

(a) may approve the eligible application of the applicant whose proposed bonus bid or bonus offer is the highest of those tendered by all applicants with eligible applications, or

(b) may decline to approve any of the eligible applications.

(5) If the applicant referred to in subsection (4) does not enter into a forest licence as required under subsection (6), the minister or a person authorized by the minister

(a) may approve the eligible application of the applicant whose proposed bonus bid or bonus offer is the next highest of those tendered by all applicants with eligible applications, or

(b) may decline to approve any of the eligible applications.

(6) If an eligible application is approved under this section, the regional manager and the applicant whose application is approved must enter into a forest licence.

5 Section 14 is amended

(a) by repealing paragraphs (a) to (d) and substituting the following:

(a) must be for a term not exceeding 20 years, subject to sections 15, 16 and 58,

(b) must specify a timber supply area in which the holder of the licence may harvest Crown timber,

(c) must specify an allowable annual cut that may be harvested under the licence, subject to sections 15 and 16,

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

(i) stumpage under Part 7,

(ii) waste assessments for merchantable Crown timber, whether standing or felled, that could have been cut and removed under the forest licence, but, at its holder's discretion, is not cut and removed, and

(iii) a bonus bid or bonus offer, whichever is required under section 13, in the amount tendered under that section, , and

(b) in paragraph (e) by adding "with terms that do not exceed 4 years" after "must provide for cutting permits".

6 Section 15 is amended

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

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

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

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

(b) in subsection (2) by striking out "regional manager" and substituting "minister or a person authorized by the minister" in both places,

(c) in subsection (3) by repealing paragraphs (a) and (b) and substituting the following:

(a) have a term beginning

(i) on the earlier of

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

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

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

(b) be for a term equal to

(i) 15 years, or

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

(d) by repealing subsection (4) and substituting the following:

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

7 The following section is added:

Transition for forest licence replacement

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

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

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

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

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

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

(b) was made within this 18 month period,

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

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

8 Section 16 is amended

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

(1) The holder of one or more tree farm licences or of any number of both tree farm licences and forest licences may apply to the minister to surrender all or part of them for replacement under

(a) subsection (2), by one or more forest licences, or

(b) subsections (2) and (3), by a combination of one or more tree farm licences and one or more forest licences. , and

(b) in subsection (2) (c) (i) by striking out "timber sale licences and".

9 Section 17 is repealed.

10 Section 18 is repealed and the following substituted:

Transfer to other timber supply area

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

11 Section 20 is repealed and the following substituted:

Applications

20 (1) In this section, "eligible application" means an application made in response to an invitation for applications under subsection (2) that

(a) is made by an applicant who has tendered as required under subsection (2) (b),

(b) conforms to subsection (3), and

(c) is not rejected under section 81 (3) or refused under section 81 (5).

(2) On request or on his or her own initiative and by advertising in the prescribed manner, the regional manager, timber sales manager or district manager

(a) may invite applications for a timber sale licence, and

(b) in doing so,

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

(ii) must require that the applicant by written tender in a sealed container propose only a bonus bid or only a bonus offer.

(3) An application for a timber sale licence must

(a) be in the form required by the regional manager or timber sales manager, and

(b) include an offer by the applicant to pay to the government, in addition to other amounts payable under this Act and the regulations,

(i) stumpage under Part 7,

(ii) if the timber sale licence will describe one or more areas of land within which its holder may harvest Crown timber, waste assessments for merchantable Crown timber, whether standing or felled, that could have been cut and removed under the timber sale licence, but, at the licensee's discretion, is not cut and removed, and

(iii) either a bonus bid or bonus offer, whichever is required under subsection (2), in the amount tendered.

(4) On receipt of applications and tenders in response to an invitation advertised under subsection (2), the regional manager, timber sales manager or district manager

(a) must approve the eligible application of the applicant whose proposed bonus bid or bonus offer is the highest of those tendered by all applicants with eligible applications, or

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

(5) If the applicant referred to in subsection (4) does not enter into a timber sale licence as required under subsection (6), the regional manager, timber sales manager or district manager

(a) may approve the eligible application of the applicant whose proposed bonus bid or bonus offer is the next highest of those tendered by all applicants with eligible applications, or

(b) may decline to approve any of the eligible applications.

(6) If an eligible application is approved under this section, the regional manager, timber sales manager or district manager and the applicant whose application is approved must enter into a timber sale licence.

12 Section 21 is repealed.

13 Section 22 is repealed and the following substituted:

Content of timber sale licence

22 A timber sale licence

(a) must be for a term not exceeding 4 years,

(b) must describe

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

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

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

(d) may provide for cutting permits to be issued by the district manager, to authorize its holder to harvest Crown timber from specified areas of land within the area or areas of land described in the timber sale licence,

(e) may include provisions specifying one or more standard making bodies and requiring the holder of the licence to conduct its operations under the licence in accordance with principles, standards and criteria established by the standard making body or bodies,

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

(i) stumpage under Part 7,

(ii) if the timber sale licence describes one or more areas of land within which its holder may harvest Crown timber, waste assessments for merchantable Crown timber, whether standing or felled, that could have been cut and removed under the timber sale licence, but, at its holder's discretion, is not cut and removed, and

(iii) a bonus bid or bonus offer, whichever is required under section 20, in the amount tendered under that section, and

(g) may include other terms and conditions, consistent with this Act and the regulations, determined by the regional manager, timber sales manager or district manager.

14 Sections 23 and 24 are repealed.

15 The following Division is added:

Division 3.1 -- Conversion of Timber Sale Licences

Interpretation

24.1 In this Division, "pre-existing licence" means a timber sale licence that

(a) was entered into under section 24 of this Act before that section's repeal by the Forest (Revitalization) Amendment Act (No. 2), 2003, and

(b) is still in effect immediately before that repeal.

Conversion of timber sale licence to forest licence

24.2 On the coming into force of this section, a pre-existing licence that has an allowable annual cut greater than 10 000 m3 is converted into a replaceable forest licence that

(a) is held by the same person who was the holder of the pre-existing licence,

(b) has a term of 15 years beginning on the date this section comes into force,

(c) specifies the same timber supply area as did the pre-existing licence, and

(d) includes other terms and conditions that are substantially the same as in the pre-existing licence.

Addition of timber sale licence allowable annual cut to forest licence

24.3 (1) In this section, "replaceable forest licence" includes one resulting from the conversion under section 24.2 of a pre-existing licence.

(2) If, on the coming into force of this section, a person

(a) holds any replaceable forest licence and one or more pre-existing licences, and

(b) the pre-existing licence or each of them, if more than one, has an allowable annual cut of 10 000 m3 or less and authorizes harvesting within the same timber supply area specified in the replaceable forest licence,

the replaceable forest licence is amended, effective on the date this section comes into force, by increasing its allowable annual cut by an amount equal to

(c) the allowable annual cut of the pre-existing licence described in paragraph (b), if the person holds only one such pre-existing licence, or

(d) the total of the allowable annual cuts of the pre-existing licences described in paragraph (b), if the person holds more than one such pre-existing licence.

(3) A pre-existing licence to which subsection (2) applies is deemed to have been surrendered on the coming into force of this section.

Addition of timber sale licence allowable annual cut to forest licence on application

24.4 (1) In this section, "forest licence" includes one resulting from the conversion under section 24.2 of a pre-existing licence.

(2) If, after the coming into force of this section, a person

(a) holds any non-replaceable forest licence and one or more pre-existing licences,

(b) does not hold any replaceable forest licence in the timber supply area specified in the non-replaceable forest licence, and

(c) the pre-existing licence authorizes harvesting within the same timber supply area specified in the non-replaceable forest licence,

the non-replaceable forest licence, on application by its holder within one year after the coming into force of this section, must be amended by the regional manager by increasing its allowable annual cut by an amount equal to

(d) the allowable annual cut of the pre-existing licence referred to in paragraph (c), if the person holds only one such pre-existing licence, or

(e) the total of the allowable annual cuts of the pre-existing licences referred to in paragraph (c), if the person holds more than one such pre-existing licence.

(3) If, after the coming into force of this section, a person

(a) holds a forest licence and one or more pre-existing licences,

(b) the pre-existing licence or each of them, if more than one, authorizes harvesting within a different timber supply area than the one specified in forest licence, and

(c) the regional manager determines that there is sufficient timber available in the timber supply area specified in the forest licence,

the forest licence, on application by its holder within one year after the coming into force of this section, must be amended by the regional manager by increasing its allowable annual cut by an amount equal to

(d) the allowable annual cut of the pre-existing licence described in paragraph (b), if the person holds only one such pre-existing licence, or

(e) the total of the allowable annual cuts of the pre-existing licences described in paragraph (b), if the person holds more than one such pre-existing licence.

(4) A pre-existing licence to which subsection (2) or (3) applies is deemed to have been surrendered on the date of the allowable annual cut increase under subsection (2) or (3).

Addition of timber sale licence to woodlot licence

24.5 (1) If, after the coming into force of this section,

(a) a person holds

(i) one or more pre-existing licences, and

(ii) a woodlot licence, and

(b) the regional manager determines that there is available Crown land that can reasonably be included in the woodlot licence area,

the woodlot licence, on application by its holder within one year after the coming into force of this section, must be amended by the regional manager by adding to its area a part of the available Crown land referred to in paragraph (b) that is sufficient to increase the allowable annual cut of the woodlot licence by an amount that is equal to at least 80% but not more than 120% of

(c) the allowable annual cut of the pre-existing licence referred to in paragraph (a), if the person holds only one such pre-existing licence, or

(d) the total of the allowable annual cuts of the pre-existing licences referred to in paragraph (a), if the person holds more than one such pre-existing licence.

(2) A pre-existing licence to which subsection (1) applies is deemed to have been surrendered on the date of the allowable annual cut increase under subsection (1).

(3) Section 45 (1) (b) (ii) does not apply to a woodlot licence amended under subsection (1) of this section.

Surrender of timber sale licence for forest licence

24.6 (1) In this section, "pre-existing licence", in relation to the holder of it, includes that holder's other pre-existing licences, if any, that pertain to the same timber supply area.

(2) If, after the coming into force of this section, a person

(a) holds a pre-existing licence that has an allowable annual cut of 2 000 m3 or more, and

(b) the regional manager receives an application from the holder within one year after this section comes into force to surrender the pre-existing licence for a replaceable forest licence,

the regional manager, subject to subsection (3), must enter into a replaceable forest licence with the holder of the pre-existing licence, which replaceable forest licence

(c) is held by the same person who was the holder of the pre-existing licence,

(d) has a term of 15 years beginning on the date the application is received by the regional manager,

(e) specifies the same timber supply area as did the pre-existing licence,

(f) specifies an allowable annual cut that is the same as the allowable annual cut of the pre-existing licence, and

(g) includes other terms and conditions that are substantially the same as in the pre-existing licence.

(3) The regional manager must not enter into a forest licence under this section until the holder of the pre-existing licence surrenders the pre-existing licence.

Surrender of timber sale licence for woodlot licence

24.7 (1) In this section, "pre-existing licence", in relation to the holder of it, includes that holder's other pre-existing licences, if any.

(2) Subject to subsection (3), if after the coming into force of this section,

(a) a person holds a pre-existing licence that has an allowable annual cut of at least 800 m3 but not more than 2 500 m3, and

(b) the district manager determines that there is available Crown land that can reasonably be included in any woodlot licence area,

on application by its holder received by the district manager within one year after the coming into force of this section, the district manager must enter into a woodlot licence with the holder of the pre-existing licence, which woodlot licence

(c) has a term not exceeding 20 years,

(d) describes a woodlot licence area comprised of all or part of the available Crown land referred to in paragraph (b) that is sufficient to support an allowable annual cut for the woodlot licence that is equal to at least 80% but not more than 120% of the allowable annual cut of the pre-existing licence,

(e) specifies an allowable annual cut within the range described in paragraph (d), and

(f) includes other terms and conditions, consistent with this Act and the regulations, determined by the district manager.

(3) The district manager must not enter into a woodlot licence under this section unless

(a) the holder of the pre-existing licence meets the criteria specified in section 44 (5) and (6) (b) and either section 44 (6) (a) or 46.1, as applicable,

(b) the district manager is satisfied that the holder of the pre-existing licence is qualified to manage the proposed woodlot licence area,

(c) a management plan has been prepared by the holder of the pre-existing licence for the proposed woodlot licence area and approved by the district manager or his or her designate, and

(d) the holder surrenders the pre-existing licence.

(4) Section 45 (1) (b) (ii) does not apply to a woodlot licence entered into under this section.

Surrender of timber sale licence for forestry licence to cut

24.8 (1) In this section, "pre-existing licence", in relation to the holder of it, includes that holder's other pre-existing licences, if any, of that holder.

(2) If, after the coming into force of this section, a person

(a) holds a pre-existing licence, and

(b) the regional manager receives an application from the holder within one year after this section comes into force to surrender the pre-existing licence for a forestry licence to cut,

the regional manager must enter into a forestry licence to cut with the holder of the pre-existing licence, which forestry licence to cut

(c) is held by the same person who was the holder of the pre-existing licence,

(d) has a term of 5 years beginning on the date the application is received by the regional manager,

(e) specifies a volume of timber that

(i) may be harvested from the area of land described in the forestry licence to cut that is in the same timber supply area to which the pre-existing licence pertains, and

(ii) is equal to a volume of timber that is the sum of the allowable annual cuts of the pre-existing licence for the period ending December 31, 2021, and

(f) includes other terms and conditions that are substantially the same as in the pre-existing licence.

(3) The regional manager must not enter into forestry licence to cut under this section until the holder of the pre-existing licence surrenders the pre-existing licence.

Conversion of timber sale licence to forestry licence to cut

24.9 (1) In this section, "pre-existing licence" means a pre-existing licence to which sections 24.2 to 24.8 do not apply and, in relation to the holder of it, includes that holder's other pre-existing licences, if any, in the same timber supply area.

(2) One year after the coming into force of this section, a pre-existing licence is converted into a forestry licence to cut that

(a) has a term of equal to the unexpired portion of the term of the pre-existing licence,

(b) describes an area of land within which its holder may harvest timber that is the same timber supply area to which the pre-existing licence pertains,

(c) specifies a volume of timber that may be harvested under the forestry licence to cut that is equal to a volume of timber that is the sum of the allowable annual cuts of the pre-existing licence for the unexpired portion of its term, and

(d) includes other terms and conditions that are substantially the same as in the pre-existing licence.

(3) A pre-existing licence to which subsection (2) applies is deemed to have been surrendered on the date of the allowable annual cut increase under subsection (2).

No compensation

24.91 Compensation is not payable by the government and proceedings must not be commenced or maintained to claim compensation from the government or to obtain a declaration that compensation is payable by the government in respect of

(a) the enactment of this Division, or

(b) obligations, including silviculture and other forest management obligations imposed under the Forest Practices Code of British Columbia Act or the Forest and Range Practices Act, that apply to an agreement resulting from or entered into under this section.

16 The heading to Division 4 is repealed and the following substituted:

Division 4 -- Forest Licence Area Restriction .

17 Section 25 is amended

(a) in subsection (1) (a) by striking out "timber sale licence that specifies an allowable annual cut, or under any", and

(b) in subsections (1) (b) and (2) by adding "forest" before "licence" wherever it appears.

18 Section 26 is amended

(a) in subsection (1) by striking out "timber sale licence or",

(b) in subsection (2) by striking out "timber sale licence that specifies an allowable annual cut or under any",

(c) in subsection (3) by striking out "one or more licences in substitution for the original licence" and substituting "one or more forest licences in substitution for the original licence",

(d) in subsection (4) by striking out "A licence issued under subsection (3)" and substituting "A forest licence issued under subsection (3)",

(e) in subsection (4) by repealing paragraph (b),

(f) in subsection (4) (d) by striking out "section 15, 23 or 24" and substituting "section 15", and

(g) by repealing subsections (6) to (8).

19 Section 30 is amended

(a) in paragraph (e) by adding "with terms that do not exceed 4 years" after "provide for cutting permits", and

(b) by repealing paragraph (f) and substituting the following:

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

(i) stumpage under Part 7, and

(ii) waste assessments for merchantable Crown timber, whether standing or felled, that could have been cut and removed under the timber licence, but at its holder's discretion, is not cut and removed, and .

20 Section 33 is repealed and the following substituted:

Applications

33 (1) In this section, "eligible application" means an application made in response to an invitation for applications under subsection (4) that

(a) is made by an applicant

(i) who has tendered as required under subsection (5) (b), and

(ii) whom the minister or a person authorized by the minister considers to be qualified to perform the obligations specified under subsection (5) (c),

(b) conforms to subsection (5), and

(c) is not rejected under section 81 (3) or refused under section 81 (5).

(2) On request or on the minister's own initiative, the minister or a person authorized by the minister may

(a) convene a public hearing in which any person may make a submission as to whether or not a specified area should become a tree farm licence area, and

(b) determine the procedures for the public hearing.

(3) After a public hearing under subsection (2),

(a) the minister must

(i) review the submissions made during the hearing and any other information he or she considers relevant, and

(ii) recommend to the Lieutenant Governor in Council whether or not the specified area referred to in subsection (2) (a) should become a tree farm licence area, and

(b) on receiving the recommendation of the minister, the Lieutenant Governor in Council, by order, may

(i) authorize the minister to invite applications for a tree farm licence for all or part of the specified area, or

(ii) decline to do so.

(4) If the minister receives authorization under subsection (3) (b) (i), he or she, by advertising in the prescribed manner,

(a) may invite applications for a tree farm licence, and

(b) in doing so, must require that the applicant by written tender in a sealed container propose only a bonus bid or only a bonus offer.

(5) An application for a tree farm licence must

(a) be in the form specified by the minister,

(b) include an offer by the applicant to pay to the government, in addition to other amounts payable under this Act and the regulations,

(i) stumpage under Part 7,

(ii) waste assessments for merchantable Crown timber, whether standing or felled, that could have been cut and removed under the tree farm licence, but, at the licensee's discretion, is not cut and removed, and

(iii) either a bonus bid or bonus offer, whichever is required under subsection (4), in the amount tendered, and

(c) include any information that the minister or a person authorized by the minister may require about the applicants' qualifications to

(i) carry out timber harvesting operations under the licence, or

(ii) perform specified obligations

(A) under the licence, or

(B) in respect of the licence or its holder, under this Act or another enactment.

(6) On receipt of applications and tenders in response to an invitation advertised under subsection (4), the minister

(a) may approve the eligible application of the applicant whose proposed bonus bid or bonus offer is the highest of those tendered by all applicants with eligible applications, or

(b) may decline to approve any of the eligible applications.

(7) If the applicant referred to in subsection (6) does not enter into a tree farm licence as required under subsection (8), the minister

(a) may approve the eligible application of the applicant whose proposed bonus bid or bonus offer is the next highest of those tendered by all applicants with eligible applications, or

(b) may decline to approve any of the eligible applications.

(8) Subject to subsection (9), if an eligible application is approved under this section, the minister and the applicant whose application is approved must enter into a tree farm licence.

(9) The minister may reserve from disposition under this Act the timber in an area that is the subject of a public hearing convened under subsection (2) or described in the advertising referred to in subsection (4), pending the entering into of an agreement in the form of a tree farm licence or the rejection of all applications submitted under this section.

(10) The minister must not enter into a tree farm licence under this section until the chief forester approves a management plan for the proposed tree farm licence area.

21 Section 34 is repealed.

22 Section 35 is amended

(a) in subsection (1) by striking out "entered into under this Act",

(b) by repealing subsection (1) (b) and (c) and substituting the following:

(b) subject to sections 33 and 39, describe a tree farm licence area, determined by the minister or a person authorized by the minister, comprising Crown land, the timber on which is unencumbered except by the licence, and if the area includes

(i) private land, or

(ii) Crown land subject to a timber licence

also comprising that land,

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

(i) stumpage under Part 7 for timber harvested under the tree farm licence on Crown land or under a timber licence on Crown land in the tree farm licence area,

(ii) waste assessments for merchantable Crown timber, whether standing or felled, that could have been cut and removed under the tree farm licence or timber licence, but, at the licensee's discretion, is not cut and removed, and

(iii) a bonus bid or bonus offer, whichever is required under section 33, in the amount tendered under that section, ,

(c) in subsection (1) (f) by adding "with terms that do not exceed 4 years" after "provide for cutting permits", and

(d) in subsection (1) (h) by striking out "for disposition under Divisions 3, 6 and 7 of this Part" and substituting "for disposition under forest licences, timber sale licences or forestry licences to cut, or under Division 7 or 8 of this Part".

23 Section 36 is amended

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

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

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

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

(b) in subsection (3) by repealing paragraph (b) and substituting the following:

(b) have a term beginning

(i) on the earlier of

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

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

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

(c) by repealing subsection (4) and substituting the following:

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

24 The following section is added:

Transition for tree farm licence replacement

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

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

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

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

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

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

(b) was made within the 18 month period,

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

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

25 Section 37 (2) and (3) is repealed.

26 Section 38 is repealed and the following substituted:

Private land

38 Private land that is transferred to the government remains subject to a tree farm licence if the private land is in the tree farm licence area.

27 Section 40 is repealed.

28 Section 41 is repealed and the following substituted:

Content of pulpwood agreement

41 (1) A pulpwood agreement must

(a) be for a term not exceeding 25 years,

(b) describe as a pulpwood area the area described in the agreement as it was on April 1, 2003,

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

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

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

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

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

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

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

(2) This section applies to a pulpwood agreement that

(a) is in effect after the coming into force of this section, and

(b) was entered into before that time.

29 Section 42 is repealed.

30 Section 43.3 is amended

(a) by repealing paragraph (d) and substituting the following:

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

(i) stumpage under Part 7 in respect of Crown timber, and

(ii) waste assessments for merchantable Crown timber, whether standing or felled, that could have been cut and removed under the community forest agreement, but, at the holder's discretion, is not cut and removed. , and

(b) in paragraph (e) by adding "with terms that do not exceed 4 years" after "must provide for cutting permits".

31 Section 43.5 (5) is amended by striking out "January 1, 2004" and substituting "July 1, 2005".

32 The following Division is added after section 43.5:

Division 7.2 -- Community Salvage Licences

Interpretation

43.6 In this Division, "qualifying timber" means Crown timber, whether standing, felled or fallen, that is

(a) left on the site of a logging operation after that operation has concluded, other than timber left to fulfill a forest management function, such as

(i) a seed tree,

(ii) a wildlife tree, or

(iii) a log or stump that provides habitat for plants or animals or is a source of nutrients for soil development,

(b) dead, damaged, diseased, infested or windthrown, or

(c) removed in accordance with a community salvage licence to provide access to timber described in paragraph (a) or (b) or to ensure the safety of a person harvesting that timber.

Applications

43.7 (1) On request or on the minister's own initiative, the minister or a person authorized by the minister,

(a) may invite an application for a community salvage licence, or

(b) by advertising in the prescribed manner, may invite one or more applications for a community salvage licence

only from

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

(d) a municipality or regional district, or

(e) any of the following if prescribed requirements are met:

(i) a society incorporated under the Society Act;

(ii) an association as defined in the Cooperative Association Act;

(iii) a corporation;

(iv) a partnership.

(2) An application for a community salvage licence must

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

(b) if it is an application referred to in subsection (1) (b) be submitted in a sealed container to the minister or a person authorized by the minister,

(c) include a proposal to achieve the objectives set out in subsection (3) by harvesting and using qualifying timber,

(d) include any information respecting the proposal referred to in paragraph (c) that the minister or a person authorized by the minister requests when inviting the application under subsection (1) (a) or advertising under subsection (1) (b), and

(e) include an offer by the applicant to pay to the government, in addition to other amounts payable under this Act and the regulations,

(i) stumpage under Part 7, and

(ii) waste assessments for qualifying timber, whether standing, felled or fallen, that could have been cut or removed under the community salvage licence, but, at the licensee's discretion, is not cut or removed.

(3) The minister or a person authorized by the minister must evaluate each application, taking into account its potential for

(a) providing social and economic benefits to British Columbia, including contributing to government revenues,

(b) providing opportunities for achieving a range of community objectives, including employment and other social, environmental and economic benefits,

(c) encouraging cooperation within the community and among stakeholders,

(d) providing for the use of qualifying timber, and

(e) other factors that the minister or a person authorized by the minister specifies in the invitation or advertising.

(4) After the evaluation under subsection (3), the minister or a person authorized by the minister may

(a) in the case of an application submitted in response to an invitation under subsection (1) (a)

(i) approve the application,

(ii) approve the application subject to conditions with which the applicant must comply before the community salvage licence is entered into, or

(iii) decline to approve the application, and

(b) in the case of an application submitted in response to an advertisement under subsection (1) (b)

(i) approve one or more applications,

(ii) approve an application subject to conditions that the applicant must comply with before the community salvage licence is entered into, or

(iii) decline to approve any applications.

(5) If the person whose application is approved under subsection (4) (b) does not enter into the community salvage licence, the minister or a person authorized by the minister may approve the next best application from a qualified applicant.

(6) If an application is approved under this section, the minister or a person authorized by the minister must direct the regional manager or district manager, to enter into a community salvage licence with the applicant.

Content of community salvage licence

43.8 A community salvage licence

(a) must be for a term not exceeding 5 years,

(b) must describe one or more areas of land within which, subject to availability, its holder may harvest qualifying timber,

(c) may specify a maximum volume of qualifying timber that may be harvested from an area of land described in the community salvage licence,

(d) may provide for cutting permits to be issued by the regional manager or district manager to authorize its holder to harvest qualifying timber from specified areas of land within the area or areas of land described in the community salvage licence,

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

(i) stumpage under Part 7, and

(ii) waste assessments for merchantable qualifying timber, whether standing, felled or fallen, that could have been cut or removed under the community salvage licence, but, at its holder's discretion, is not cut or removed,

(f) may include restrictions on

(i) the type of qualifying timber that may be harvested under it, and

(ii) the location, timing, nature and extent of harvesting activities that may be carried out under it,

(g) if it authorizes clearcutting, must restrict clearcuts to less than one hectare, and

(h) may include other terms and conditions, consistent with this Act and the regulations, determined by the regional manager or district manager.

33 Section 44 (14) is repealed.

34 Section 45 (1) is amended

(a) by repealing paragraph (d) and substituting the following:

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

(i) stumpage under Part 7 in respect of Crown timber,

(ii) waste assessments for merchantable Crown timber, whether standing or felled, that could have been cut and removed under the woodlot licence, but, at the holder's discretion, is not cut and removed, and

(iii) a bonus, if any, in the amount tendered under section 44, , and

(b) in paragraph (e) by adding "with terms that do not exceed 4 years" after "provide for cutting permits".

35 Section 47.3 (1) is amended by striking out "timber sale licence or woodlot licence" and substituting "community salvage woodlot licence or forestry licence to cut".

36 The following division is added:

Division 8.2 -- Licences to Cut

Licence to cut for persons occupying land or for oil and gas purposes

47.4 (1) In this section and section 47.5:

"master licence to cut" means a licence to cut entered into under subsection (2) (b) of this section;

"occupant licence to cut" means a licence to cut entered into under subsection (2) (a) of this section.

(2) The regional manager or district manager may enter into

(a) an occupant licence to cut with an owner or occupier of land, authorizing the person to cut Crown timber on the land, remove Crown timber from the land or do both, or

(b) a master licence to cut with any person, authorizing the harvesting of timber, under a cutting permit referred to in section 47.5 (2) (c) in all or part of a forest district for one or more of the following purposes only:

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

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

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

Content of occupant and master licences to cut

47.5 (1) An occupant licence to cut

(a) must require its holder, if it authorizes its holder to both cut and remove Crown timber, to pay to the government, in addition to other amounts payable under this Act and the regulations,

(i) stumpage under Part 7, and

(ii) waste assessments for merchantable Crown timber, whether standing or felled, that could have been cut and removed under the occupant licence to cut, but, at the holder's discretion, is not cut and removed, and

(b) may include other terms and conditions that

(i) are determined by the regional manager or district manager or by a forest officer authorized by either of them, and

(ii) are consistent with this Act, the regulations under it, the Forest Practices Code of British Columbia Act and the regulations and standards under it.

(2) A master licence to cut

(a) must conform to subsection (1) (a) and (b),

(b) must be for a term not exceeding 5 years, and

(c) must provide that the district manager, or a forest officer authorized by the district manager, is to issue, subject to subsection (3), cutting permits that authorize the holder of the master licence to

(i) cut Crown timber,

(ii) remove Crown timber, or

(iii) do both

on or from specified areas within the area or areas of Crown land specified in the master licence to cut.

(3) The district manager or the forest officer authorized by the district manager must not issue a cutting permit to the holder of a master licence to cut for an area described in subsection (2) (c) unless the holder has written authority from the government to occupy that area.

Forestry licence to cut

47.6 (1) In this section and section 47.7, "forestry licence to cut" means a licence to cut entered into under subsection (2), (3) or (4).

(2) The regional manager or district manager may enter into a forestry licence to cut if

(a) harvesting under the forestry licence to cut is restricted to timber that, in the opinion of the regional manager or district manager, is in danger, as a result of an insect infestation, fire, disease or windthrow, of being significantly reduced in value, lost or destroyed, and the volume of timber specified in the forestry licence to cut does not exceed 500 m3,

(b) Crown land is to be used for experimental purposes and, in the opinion of the regional manager or district manager, timber on that land is to be harvested under controlled scientific or investigative conditions and the volume of timber specified in the forestry licence to cut does not exceed 500 m3, or

(c) authorized to do so under another provision of this Act.

(3) The timber sales manager may enter into a forestry licence to cut with a person, authorizing the person to cut Crown timber on Crown land, remove Crown timber from Crown land or do both, if

(a) the person is contracted by the government to carry out an activity funded out of the BC Timber Sales Account, and

(b) the timber sales manager considers it desirable to

(i) cut, or

(ii) cut and remove

timber from the contract area in conjunction with the contract.

(4) The regional manager or district manager may enter into a forestry licence to cut if

(a) harvesting under the forestry licence to cut is restricted to timber that, in the opinion of the regional manager or district manager, is required to be cut and removed in order to reduce the spread of an insect infestation, and

(b) the harvesting of the timber is in conjunction with a competitively awarded forest health project that is consistent with a government approved bark beetle management strategy for the management unit in which the harvesting is to take place.

Content of forestry licence to cut

47.7 A forestry licence to cut

(a) must be for a term not exceeding 5 years,

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

(c) may specify a volume of timber that may be harvested from an area of land described in the forestry licence to cut,

(d) may specify that the forestry licence to cut is a major licence,

(e) may provide for cutting permits, which, if the forestry licence to cut is a major licence, must have terms that do not exceed 4 years, to be issued by the regional manager or district manager within the limits provided in the licence to cut and, subject to this Act, to authorize its holder to harvest Crown timber from specified areas of land within the area or areas of land described in the forestry licence to cut,

(f) must require its holder, if it authorizes its holder to both cut and remove Crown timber, to pay to the government, in addition to other amounts payable under this Act and the regulations,

(i) stumpage under Part 7, and

(ii) waste assessments for merchantable Crown timber, whether standing or felled, that could have been cut and removed under the forestry licence to cut, but, at the holder's discretion, is not cut and removed,

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

(h) may include other terms and conditions, consistent with this Act and the regulations, determined by the regional manager, district manager or timber sales manager.

37 Section 51 is repealed.

38 Section 52 (3) is amended by striking out "timber sale licence" and substituting "forestry licence to cut".

39 Section 53 (1) is amended in paragraph (c) of the definition of "deletion period" by striking out "or timber sale licence".

40 Section 54.4 (1) (b) is repealed and the following substituted:

(b) is an agreement that

(i) is entered into under section 47.3 (1) (a),

(ii) is a community forest agreement, or

(iii) is a community salvage licence,

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

41 Section 58 (1) is amended by striking out "or non-replaceable timber sale licence".

42 Section 58.1 is amended by adding the following subsection:

(9) A timber sale licence or cutting permit must not be extended except in accordance with this section.

43 Section 59 is amended by striking out "or timber sale licence".

44 Section 60 is amended

(a) in subsection (1) (b) by striking out everything before subparagraph (i) and substituting the following:

(b) delete from a tree farm licence area, Crown land referred to in section 35 (1) (b), other than Crown land subject to a timber licence, Crown land referred to in section 37 (1) or Crown land referred to in section 38, to be used ,

(b) in subsections (1) (d), and (4) by striking out "or timber sale licence",

(c) in subsection (2) (a) (i) and (ii) by striking out "Crown land referred to in sections 35 (1) (b) (i), 37 (1) and (2) and 38 (1)" and substituting "Crown land to which subsection (1) (b) applies",

(d) in subsections (5) and (9) by striking out "forest licence or timber sales licence" and substituting "or forest licence", and

(e) by repealing subsection (8) and substituting the following:

(8) Subject to the consent of the person entitled, compensation payable under subsection (2), (3) or (4) may take the form of an agreement listed in section 12, other than a timber sale licence.

45 Section 61 (1) is amended by striking out "or timber sale licence".

46 Section 63 (1) is amended in the definition of "licence" by striking out "or timber sale licence".

47 Section 68 (a) is repealed and the following substituted:

(a) sale of Crown timber on that land would neither affect the licensee's ability to manage the tree farm licence area in accordance with the management plan nor adversely affect other natural resources, Crown timber within the tree farm licence may be disposed of to a person other than the holder of the tree farm licence under

(i) a forestry licence to cut, or

(ii) a timber sale licence entered into under section 20, or .

48 Section 69 is amended

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

(2) Crown timber within the tree farm licence area may be disposed of under this Act to persons other than the holder of the tree farm licence under

(a) a forestry licence to cut, or

(b) a timber sale licence

in a volume that does not exceed the reduction under subsection (1). , and

(b) in subsection (3) by striking out "If a forest licence replaceable under this Act or a timber sale licence replaceable under this Act, or a management plan approved under either of them," and substituting "If a replaceable forest licence or a management plan approved under it,".

49 Section 70 (2) and (3) is repealed.

50 Section 72 is amended

(a) in subsections (1), (2), (4) and (7) by striking out "timber sale licence" and substituting "forestry licence to cut" wherever it appears,

(b) by repealing subsection (3) and substituting:

(3) A forestry licence to cut referred to in subsection (2) must

(a) be restricted primarily to the harvest of windthrown, dead, damaged, insect infested or diseased timber or special forest products, and

(b) authorize the harvest of a volume of timber or special forest products of less than 500 m3. ,

(c) in subsection (8) by striking out "if a timber sale licence had been issued under this section." and substituting "if a forestry licence to cut had been entered into under this section.", and

(d) by repealing subsection (9) and substituting the following:

(9) The amount of timber or special forest products harvested under a forestry licence to cut entered into under this section, or the amount that the district manager determines under subsection (8) would have been harvested, is deemed to be harvested under the tree farm licence or the woodlot licence of the person to whom the notice is sent under subsection (4) for the purposes of paragraph (a) of the definition of "volume of timber harvested" in section 75.1.

51 Section 73 is amended

(a) in subsection (1) by repealing the definition of "holder of the licence" and substituting the following:

"holder of the licence" means the holder of a forest licence for the area to which an agreement in the form of a forestry licence to cut, proposed to be entered into under this section, would apply; ,

(b) in subsections (3), (4) (c) and (6) by striking out "timber sale licence" and substituting "forestry licence to cut" wherever it appears,

(c) in subsection (7) by striking out "if a timber sale licence had been issued under this section." and substituting "if a forestry licence to cut had been entered into under this section.", and

(d) by repealing subsection (8) and substituting the following:

(8) The amount of timber or special forest products harvested under a forestry licence to cut entered into under this section, or the amount that the district manager determines under subsection (7) would have been harvested, is deemed to be harvested under the forest licence of the person to whom the notice is sent under subsection (3) for the purposes of the definition of "volume of timber harvested" in section 75.1.

52 Section 76 (1) is amended in paragraph (c) by striking out "22 (f.1), 43.3 (g.1) or 45 (1) (f.1), or" and substituting "22 (f.1) before the repeal of that provision, 43.3 (g.1), 45 (1) (f.1) or 47.7 (g), or".

53 Section 76 (1.1) is amended

(a) in paragraph (b) by striking out "section 22 (f.1)," and substituting "section 22 (f.1) as it was before its repeal,", and

(b) by striking out "or" at the end of paragraph (c), by adding ", or" at the end of paragraph (d) and by adding the following paragraph:

(e) a forestry licence to cut if there is a contravention of the condition described in section 47.7 (g).

54 The following section is added:

Forestry Revitalization Act

80.2 (1) In this section:

(a) "Acts" means this Act, the Forest and Range Practices Act, the Forest Practices Code of British Columbia Act and includes the regulations under each of them;

(b) "interim period" means the period beginning on March 31, 2003 and ending at the end of the day on which a minister's order is made in relation to a licence or timber licence;

(c) "minister's order", means an order made under section 3 (1) or (2) of the Forestry Revitalization Act;

(d) words and expressions have the same meanings as they have in section 1 of the Forestry Revitalization Act.

(2) A determination of whether or not the holder of a licence in a group of licences, or of a timber licence, has complied during the interim period with the Acts as they pertain to timber harvesting, must be made without regard to a minister's order applicable to that licence or timber licence, despite the retroactive effect of that order.

55 Section 103 is repealed and the following substituted:

Amount of stumpage

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

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

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

by the sum of

(c) the rate of stumpage applicable to the timber under section 105 when

(i) the timber is scaled, or

(ii) the volume or quantity is calculated under section 106, and

(d) if applicable, the bonus bid offered in respect of the timber.

(2) If a bonus offer is made in respect of Crown timber referred to subsection (1), the bonus offer must be paid to the government in addition to the stumpage calculated in accordance with that subsection.

(3) Despite sections 107 and 108, a person who cuts, damages or destroys Crown timber without authorization must pay, in addition to all other amounts payable under this Act, the regulations or another enactment, stumpage calculated by multiplying the volume or quantity of the timber that was cut, damaged or destroyed without authorization, as determined by an official designated by the minister, by the sum of

(a) the rate of stumpage that an employee of the ministry referred to in section 105 (1) determines would likely have applied to the timber under that section if rights to the timber had been granted under an agreement entered into under this Act, and

(b) if applicable, the bonus bid that an employee of the ministry referred to in section 105 (1) determines would likely have been offered for the timber if rights to the timber had been granted under an agreement entered into under this Act.

Assessments for merchantable Crown timber that is not cut and removed

103.1 (1) If an agreement entered into under this Act specifies that waste assessments are payable to the government in respect of merchantable Crown timber that could have been cut and removed under the agreement, but, at the agreement holder's discretion, is not cut and removed, the amount payable must be calculated in accordance with the agreement.

(2) Subject to subsection (3), a requirement in an agreement entered into under this Act, or in a cutting permit issued under that agreement, is without effect to the extent that it requires the holder of the agreement or permit, on or after the date this section comes into force, to cut and remove timber in accordance with the agreement or permit.

(3) If an agreement or a cutting permit referred to in subsection (2) requires its holder to pay an amount determined in accordance with the agreement or the cutting permit for timber that is not cut and removed in accordance with in the agreement or the cutting permit, the holder must pay the amount required to be paid under the agreement or the cutting permit.

56 Section 104 (1) is repealed and the following substituted:

(1) Despite any other Act, any election made under section 23 of the Forest Act, R.S.B.C. 1979, c. 140, before the repeal of that section, or any agreement, the holder of a timber licence must pay stumpage to the government at rates determined under section 105 for timber that is cut under the licence and scaled.

57 Section 105 is amended

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

(1) Subject to the regulations made under subsections (6) and (7), if stumpage is payable to the government under an agreement entered into under this Act or under section 103 (3), the rates of stumpage must be determined, redetermined and varied

(a) by an employee of the ministry, identified in the policies and procedures referred to in paragraph (c),

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

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

(b) by adding the following subsections:

(1.1) For the purpose of taking into account differences in the obligations of the holders of agreements in respect of their agreements, Treasury Board may make regulations prescribing adjustments to be incorporated in the policies and procedures approved under subsection (1) (c).

(1.2) A regulation under subsection (1.1) may be different for different timber, places, transactions or holders of agreements entered into under this Act.

58 The following sections are added:

Accuracy of information submitted

105.1 A holder of an agreement under this Act who

(a) is required under this Act, or

(b) obliged under the agreement

to submit information to the government for use in determining, redetermining or varying a stumpage rate, or for any other purpose under this Act, must ensure that the information is accurate.

Correcting stumpage rates where inaccurate information was provided

105.2 (1) If, in the opinion of an official designated by the minister, a stumpage rate determined, redetermined or varied under section 105 (1) is in error because it was based on inaccurate information submitted by or on behalf of the holder of an agreement referred to in section 105 (1), the official may direct that the stumpage rate be redetermined under section 105 (1), taking new information into consideration only to the extent required to correct the error.

(2) The stumpage rate as redetermined in accordance with subsection (1)

(a) is deemed to have taken effect on the date on which the erroneous stumpage rate took effect, or

(b) takes effect on the intended effective date for the erroneous stumpage rate if that erroneous rate is not in effect on the date of the redetermination.

59 Section 109 (2) is repealed and the following substituted:

(2) The revenue due to the government under this Act, derived from the following sources, must be credited to the BC Timber Sales Account:

(a) fees and charges that BC timber sales enterprises are required to pay under this Act or a BC timber sales agreement;

(b) forest licences for which applications were restricted under section 13 (1.1), as it was immediately before its repeal;

(c) timber sale licences entered into under section 20;

(d) timber sale licences entered into under any of sections 21, 23 (1) (c), (d), (e) and (f), (2) and (3) and 24 (7) as they were immediately before their repeal;

(e) timber sale licences entered into under section 24 (2) as that provision was immediately before its repeal, that have an allowable annual cut of 10 000 m3 or less;

(f) forestry licences to cut entered into under sections 24.8, 24.9 and 47.6 (3);

(g) security for BC timber sales agreements realized under the regulations made under section 79 (1.4);

(h) deposits for BC timber sales agreements realized under a regulation made under section 151 (2) (e).

60 Section 110 is repealed.

61 Section 111 (1) is repealed and the following substituted:

(1) The holder of a

(a) forest licence, timber licence, tree farm licence, community forest agreement, community salvage licence or woodlot licence, or

(b) forestry licence to cut issued under a pulpwood agreement

must pay to the government, on or before a date specified by the minister, annual rent at the rates prescribed by the Lieutenant Governor in Council even if the licence or agreement does not contain a provision to that effect.

62 Section 112 (1) (b) is repealed and the following substituted:

(b) the portion of the allowable annual cut available to the licence holder during the year to which the total annual rent pertains, that the chief forester determines is attributable to

(i) Crown land referred to in section 35 (1) (b), other than Crown land subject to a timber licence, and

(ii) land referred to in sections 37 (1) and 38,

multiplied by the annual rent rate prescribed by the Lieutenant Governor in Council for tree farm licences.

63 Section 118 (c) is repealed and the following substituted:

(c) if the road permit grants the right to harvest Crown timber, require its holder to pay to the government, in addition to other amounts payable under this Act and the regulations,

(i) stumpage under Part 7, and

(ii) waste assessments for merchantable Crown timber, whether standing or felled, that could have been cut and removed under the road permit, but, at its holder's discretion, is not cut and removed, and .

64 Section 135 is repealed.

65 Section 143 is amended

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

(1) A review may be required under this Division of

(a) a determination, order or decision of a district manager under section 75.1 (1) (d), 76 (1), (2) or (6), 77 (1) (c), 78 or 112 (2),

(b) a determination, order or decision of a timber sales manager under section 78, and

(c) a determination, order or decision of a regional manager under section 59, 59.1 (9) or (10), 70 (4), 71 (1) (d), 75, 75.1 (1) (d), 76 (1), (2) or (6), 77 (1) (b) or 112 (2). ,

(b) in subsection (2) (a) by striking out "and (d)", and

(c) by repealing subsection (5).

66 Section 145 (5) is repealed.

67 Section 146 is amended

(a) in subsection (2) by striking out "and" at the end of paragraph (a), by adding ", and" at the end of paragraph (b) and by adding the following paragraph:

(c) a determination of an employee of the ministry under section 105 (1). , and

(b) by adding the following subsection:

(6) For the purpose of subsection (1), a redetermination or variation of stumpage rates under section 105 (1) is considered to be a determination.

68 Section 151.3 is amended

(a) in subsection (2) (a) by adding ", community forest agreement" after "tree farm licence area",

(b) in subsections (2) (b) and (3) by striking out "timber sale licence", and

(c) in subsection (4) by striking out "February 1, 2007" and substituting "February 1, 2010".

69 Section 152 is amended

(a) in the definitions of "contractor", "replaceable contract" and "subcontractor" by striking out ", timber sale licence", and

(b) by repealing the definition of "replaceable timber sale licence".

70 Section 157 is amended

(a) in paragraphs (a) and (c) by striking out ", replaceable timber sale licence",

(b) in paragraph (d) (iii) (A) and (B) by striking out ", timber sale licence", and

(c) in paragraph (e) (i) by striking out ", replaceable timber sale licences".

71 Section 158 (1) is amended by striking out ", replaceable timber sale licence".

72 Section 161 (1) is amended

(a) in paragraphs (a) and (e) (i) by striking out ", timber sale licence", and

(b) in paragraph (c) (i) by striking out ", timber sale licences".

73 Section 162 is amended by striking out ", timber sale licence".

74 The following section is added:

Cancellation and disqualification

164.1 (1) In this section, "official" means an official designated by the minister.

(2) If, after giving a person an opportunity to be heard, an official determines that the person has contravened any of paragraphs (a) to (c) of section 164 (1), the official may do either or both of the following:

(a) cancel an agreement referred to in section 12 that is held by or on behalf of the person, if the official believes on reasonable grounds that the person, in relation to the agreement, derived or could have derived any benefit as a result of the contravention;

(b) disqualify the person from making an application under Part 3, either on the person's own application or through an agent, for not more than 10 years.

(3) If, under subsection (2), an official determines that a corporation has contravened any of paragraphs (a) to (c) of section 164 (1), a person who is an officer, director or agent of the corporation is subject to the consequences described in subsection (2) if, after giving the person an opportunity to be heard, an official determines that the person authorized, permitted or acquiesced in the contravention.

75 Section 165 is repealed.

76 The following sections are added:

Prohibition against restricting competition in sale or purchase of logs

165.1 (1) In this section, "timber" means timber harvested under an agreement referred to in section 12 and offered by or on behalf of the holder for sale as logs.

(2) A person must not conspire, combine, agree or arrange with another person to prevent, limit or lessen competition in the purchase or sale of timber

(a) by arriving at a maximum amount to be paid by the person or persons for the timber,

(b) by implementing a strategy in relation to the purchase or sale of the timber, or

(c) by another method.

Remedies preserved

165.2 A proceeding, conviction or penalty for an offence under this Act does not relieve a person from any other liability.

77 Section 173 is amended

(a) in subsection (1) in the definition of "licence" by striking out "or timber sale licence",

(b) in subsection (7) by striking out ", timber sale licence" in both places, and

(c) in subsection (10) by striking out ", forest licence or timber sale licence" and substituting "or forest licence".

78 Section 178 is amended

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

(2) If, as a result of the Nisga'a Final Agreement, the holder of an agreement or a contractor or subcontractor loses the right to harvest Crown timber, the regional manager may enter into a forest licence or forestry licence to cut, or the district manager may enter into a forestry licence to cut, with the agreement holder, contractor or subcontractor without advertising or accepting applications from other persons. , and

(b) in subsection (3) by striking out "timber sale licence" and substituting "forestry licence to cut".

 
Consequential Amendments

 
Forest and Range Practices Act

79 Section 3 (1) of the Forest and Range Practices Act, S.B.C. 2002, c. 69, is amended by striking out "or" at the end of paragraph (c) and by adding the following paragraph:

(c.1) a community salvage licence, or .

 
Forest Practices Code of British Columbia Act

80 Section 19 (1) of the Forest and Practices Code of British Columbia Act, R.S.B.C. 1996, c. 159, is amended by striking out "timber sale licence" and substituting "forestry licence to cut".

 
Mineral Tenure Act

81 Section 14 (3) and (4) of the Mineral Tenure Act, R.S.B.C. 1996, c. 292, is amended by striking out "a licence to cut" and substituting "an occupant licence to cut".

 
Oil and Gas Commission Act

82 Section 1 (1) of the Oil and Gas Commission Act, S.B.C. 1998, c. 39, is amended in the definition of "specified enactment" by repealing paragraph (a) and substituting the following:

(a) any of the following provisions of the Forest Act, but only in relation to a master licence to cut:

(i) section 47.4 (licence to cut for persons occupying land or for oil and gas purposes);

(ii) section 47.5 (content of occupant and master licences to cut);

(iii) section 76 (suspension of rights);

(iv) section 77 (cancellation);

(v) section 81 (eligibility), .

 
Transition

83 Section 13 of the Forest Act, as it was on May 1, 2003, applies, and continues to apply despite the repeal after that date of section 13, to an application for a forest licence if

(a) the advertisement inviting the application was published before May 1, 2003, and

(b) the application is for a forest licence for which applications were restricted under section 13 (1.1).

84 Section 21 of the Forest Act, as it was on May 1, 2003, applies, and continues to apply despite the repeal after that date of section 21, to an application for a timber sale licence under that section if the advertisement inviting the application was published before May 1, 2003.

Application to existing agreements

85 The amendments made by this Act to the Forest Act apply in respect of an agreement referred to in section 12 of the Forest Act, whether entered into before on or after the date this section comes into force.

Commencement

86 This Act, except sections 12, 83 and 84, comes into force by regulation of the Lieutenant Governor in Council.

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