Forestry Revitalization Act 2003

statreg 03017 01

British Columbia — Consolidated Statutes

March 31, 2003

1198514681/03017/tlc03017_f

E3tlc03017

Definitions

In this Act:

group of licences means 2 or more licences that

are listed in an item of the

Schedule under a group name

assigned to them in Column 1 of that item, and

are each identified by licence number in Column 2 of that item;

licence means a licence that is replaceable under the Forest

Act and is a

forest licence,

tree farm licence, or

timber sale licence;

timber licence means a timber licence

that describes an area of Crown land that is not in a tree farm licence area,

and

is held by a person who is the holder of a licence in a group of

licences;

ungrouped licence means a licence that is

mentioned in an item of the

Schedule separately from other

licences, and

identified by licence number in Column 2 of that item

but does not include a licence in a group of licences.

Words and expressions used in this Act but not defined in subsection (1) or in a

regulation under

section 13 (2) (

a) have the same meanings as in the Forest

Act .

Tree farm licence — allowable annual cut defined

1.1

For the purposes of sections 2 (3) and 3 (3), allowable annual

cut in relation to a tree farm licence in a group of licences means the

allowable annual cut available to its holder.

Harvesting rights reduced for timber licences and certain replaceable

licences

The allowable annual cut of an ungrouped licence identified in an item of the

Schedule is reduced by the amount specified in Column 3 of that

item.

Each area of Crown land described in a timber licence is reduced by

20%.

The total of the allowable annual cuts of the licences in a group of licences

listed in an item of the

Schedule is reduced by the amount specified in Column 3

of that item opposite the group name, assigned in Column 1, under which the licences are

listed.

Minister's orders

By one or more orders in writing, the minister

must attribute a reduction in area under

section 2 (2) in equal or unequal

portions, specified in the order, to one or more of the timber licences held by a

licensee that is the holder of one or more licences in a group of licences,

and

for a timber licence to which all or a part of the reduction referred to in

paragraph

(

a) is attributed, may provide that the reduction is to be accomplished by

means of

one reduction, or

a series of reductions occurring on different dates specified in an

order.

1.1

By one or more orders in writing, the minister must specify, for each of the

timber licences referred to in subsection (1), the part of the area of Crown land

described in the timber licence that

remains after

the reduction made by

section 2 (2), and

the attribution under subsection (1), or

is deleted from the timber licence as a result of the reduction and

attribution.

By one or more orders in writing, the minister

must attribute a reduction of allowable annual cut under

section 2 (3)

in equal or unequal portions, specified in the order, to one or more of the licences in

a group of licences, and

for a licence to which all or a part of the reduction referred to in paragraph (

a) is attributed, may provide that the reduction is to be accomplished by means

one reduction, or

a series of reductions occurring on different dates specified in an

order.

The allowable annual cut of a licence to which the minister attributes all or part

of a reduction made under

section 2 (3) is reduced by the amount attributed by the

order to that licence.

By one or more orders in writing, the minister may specify, for each tree farm

licence in a group of licences, the area of Crown land in the tree farm licence area

that

remains after the reduction made by subsection (3), or

is deleted from the tree farm licence area as a result of the

reduction.

A minister's order under this

section

may be made or amended

on any date in the 3 years after March 31, 2003 if it is an order referred to

in subsection

(2),

on any date in the 5 years after March 31, 2003 if it is an order referred to

in subsection

(1) or (1.1), or

iii

at any time, if it is an order referred to in subsection (4),

may differ for different timber, places or transactions or for different

licences or timber licences, and

may specify a date for subsection (5.1) that is subsequent to the date the

order is made.

5.1

the date when a minister's order under this

section is made, if no subsequent

date is specified for this subsection under subsection (5) (c), or

the subsequent date, if one is specified for this subsection under subsection (5)

(c),

the minister's order

is deemed to have come into force on March 31, 2003, and

is retroactive to the extent necessary to give it effect on and after March 31,

Written notice of an order under this

section must be delivered to the holder of

licence, or

timber licence

that is affected by the order.

Provision of information

The minister, by written notice, may require the holder of an ungrouped licence, a

timber licence or a licence in a group of licences, at the holder's expense, to provide

information that the minister considers necessary for the purposes of the orders referred

to in

section 3.

At the time and in the form and manner required by the minister, the holder of an

ungrouped licence, a timber licence or a licence in a group of licences must provide the

required information to the minister.

A holder of an ungrouped licence, a timber licence or a licence in a group of

licences who contravenes subsection (2) commits an offence.

Deemed amendments to affected timber licences and other

licences

An ungrouped licence referred to in

section 2 (1) is deemed amended to

reflect the reduction under

section 2 (1).

A timber licence referred to in

section 2 (2) is deemed amended to reflect the

minister's orders under

section 3 (1) and (1.1).

A licence referred to in

section 2 (3) is deemed amended to reflect the

minister's orders under

section 3 (2) and (4).

Compensation

Each holder of an ungrouped licence is entitled to compensation from the

government for a reduction under

section 2 (1) of the allowable annual cut of the

ungrouped licence, in an amount equal to the value, for the unexpired portion of the term

of the licence, of the harvesting rights taken by means of the reduction.

Each holder of a timber licence is entitled to compensation from the government in

respect of the part, if any, of a reduction in the area of Crown land described in the

timber licence that is made under

section 2 (2) and that is attributed under

section 3 (1)

to that licence in an amount equal to the value of the harvesting rights taken by means of

the reduction.

Each holder of a licence in a group of licences is entitled to compensation from

the government in respect of the part, if any, of a reduction of the allowable annual cut

of the licence that is made under

section 2 (3) and that is attributed under

section 3 (2)

to that licence, in an amount equal to the value, for the unexpired portion of the term of

the licence, of the harvesting rights taken by means of the reduction.

In addition to the compensation to which the holder of an ungrouped licence, a

timber licence or a licence in a group of licences is entitled under subsection

(1),

(2) or (3), the holder is entitled to compensation from the government in an

amount equal to the value of improvements made to Crown land that

are, or have been, authorized by the government,

are not improvements to which

section 174 of the Forest Practices Code

of British Columbia Act applies, and

are not, or have not been, paid for by the government under the Forest

Act or the former Act as defined in the Forest

Act .

4.1

Subsection (4) also applies to a holder of a tree farm licence that is subject to

a deletion of Crown land from the tree farm licence area under

section 39.1 of the

Forest Act , if the deletion

is in respect of a reduction of allowable annual cut under

section 3 (3)

of this Act, and

is made before the date this subsection comes into force.

An entitlement to compensation under this

section vests in the holder to which it

applies on March 31, 2003.

A dispute between the minister and the holder of an ungrouped licence, a timber

licence or a licence in a group of licences as to the amount of the compensation to which

the holder is entitled under this

section must be submitted to arbitration under the

Arbitration Act .

[Repealed 2004-36-131.]

Limit on compensation

In this section, compensation includes damages.

The compensation to which the holder of an ungrouped licence, of a timber licence

or of a licence in a group of licences, is entitled under

section 6 is limited to the amount

of compensation determined in relation to that licence under this Act.

No action lies, and an action or other proceeding must not be brought or

continued, against the government for compensation

arising out of this Act,

because of any of the things specified in or under this Act, or

because of any of the things specified in or under this Act in combination with

any or all of the other things specified in or under this Act,

in an amount that exceeds the amount limited under subsection (2).

The Expropriation Act does not apply to a

reduction under

section 2 or 3 of this Act or to anything done under a minister's

order referred to in

section 3 of this Act.

Act to be given effect

This Act must be applied to and must be given effect in every action or other

proceeding whether commenced before, on or after March 31, 2003.

This Act must not be construed as lacking effect, whether retroactive or

otherwise, in relation to any matter because it makes no specific reference to that

matter.

Appropriation for compensation

In the 2002-2003 fiscal year of the government, the minister is authorized to pay

not more than $200 million out of the consolidated revenue fund for the purpose of providing

compensation to which holders of ungrouped licences, of timber licences or of licences in a

group of licences are entitled under

section 6.

BC Forestry Revitalization Trust

In this section, BC Forestry Revitalization Trust refers to the

trust

that has been created under that name by the deed of trust, dated for reference

as of March 17, 2003, between Her Majesty the Queen in Right of the Province of British

Columbia, as represented by the minister, and the Bank of Nova Scotia Trust Company, the

Forestry Revitalization Trust, and

the purpose of which, under

Part 2 of the deed of trust, is to mitigate adverse

financial impacts suffered by any eligible person, as described in the deed of trust, as

a result of restructuring of the forestry sector and forestry operations within British

Columbia, arising out of reductions under the Forestry

Revitalization Act of harvesting rights available to licensees

under the Forest Act .

A true copy of the BC Forestry Revitalization Trust must be kept on file, and made

available for public inspection without charge, in each regional office of the

ministry.

For the purposes of

section 24 of the Perpetuity

Act , the BC Forestry Revitalization Trust is a trust for a specific

noncharitable purpose that creates no enforceable equitable interest in a specific

person.

In the 2002-2003 fiscal year of the government, the minister must pay $75 million

out of the consolidated revenue fund to the BC Forestry Revitalization Trust.

Balanced Budget and Ministerial Accountability

Act

For the purposes of sections 5 (1) and 6 (1) of the Balanced Budget and

Ministerial Accountability Act in relation to the Minister of

Forests for the 2002-2003 fiscal year, the estimated amount under

section 6 (1) of

that Act is the sum of the amounts appropriated

for the operating expenses for which that minister is responsible in the main

estimates for that fiscal year, and

under sections 9 and 10 (4) of this Act.

Changes to scheduled items

The Lieutenant Governor in Council, by regulation, may amend the

Schedule

to correct, as necessary, the names of licensees itemized in Column 1 and the

licence numbers itemized in Column 2, and

to take into account

either

a consolidation, or

a subdivision

of a licence under

section 19 or 39 of the Forest

Act ,

a disposition, as defined in

section 53 of the Forest

Act , of a licence as defined in

section 1 of this Act, to or from

a licensee named in the Schedule,

iii

an amalgamation of a corporation that is a licensee named in the

Schedule

with another corporation, or

a change of control, a disposition of control or an acquisition of control, all

as set out in

section 54.5 of the Forest

Act , involving a licensee named in the

Schedule

that affects the volume of timber

set out in Column 3 of the

Schedule for a group of licences, or

specified in any of the licences held by a licensee listed in Column 1 of the

Schedule.

Regulations

The Lieutenant Governor in Council may make regulations referred to in

section 41

of the

Interpretation Act .

Without limiting subsection (1), the Lieutenant Governor in Council may

make regulations

defining a word or expression not otherwise defined in this Act, and

for the purposes of

section 6, prescribing respecting value, including but

not limited to

determining value and defining the components that comprise value,

prescribing methods of evaluation for use in determining value,

iii

prescribing factors to be taken into account in an evaluation,

defining the role of evaluators in a determination of value and prescribing

qualifications for evaluators that are prerequisite to their participation in the

determination of value, and

prescribing requirements for the selection of arbitrators.

A regulation made under this Act may

be made applicable generally or to a specific person, entity, thing or

transaction, or class of persons, entities, things or transactions,

for the purpose of the regulation, define classes of timber licence holders and

of licence holders, other persons or entities,

for the purpose of the regulation, define classes of things or transactions,

and

provide differently for different persons, entities, things or transactions, or

for different classes of persons, entities, things or transactions.

In making a regulation under this Act, the Lieutenant Governor in Council

may

delegate a matter to a person, and

confer a discretion on a person.

Regulations under this

section may be made retroactive to March 31, 2003 or to a

later date the Lieutenant Governor in Council may specify by regulation and a regulation

made retroactive in accordance with this subsection is deemed to have come into force on

the date specified in the regulation.

Schedule

Item

Column 1 Licensees

Column 2 Licence Number

Column 3 Allowable Annual Cut

(cubic metres)

Abitibi-Consolidated Company of Canada

A15385

183 125

Ainsworth Lumber Co. Ltd.

A18700

29 634

Apollo Forest Products Ltd.

A18156

4 186

Buffalo Head Forest Products Ltd.