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Volume 55, No. 13

152/2012

The British Columbia Gazette,

Part II

July 3, 2012

B.C. Reg. 152/2012 , deposited June 25, 2012, pursuant to the FOREST ACT [sections 20, 78, 151 and 151.01]. Order in Council 464/2012, approved and ordered June 22, 2012.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that, effective October 1, 2012, the BC Timber Sales Regulation, B.C. Reg. 381/2008, is amended as set out in the attached Schedule.

— S. THOMSON, Minister of Forests, Lands and Natural Resource Operations ; I. CHONG, Presiding Member of the Executive Council .

Schedule

Section 1 (1) of the BC Timber Sales Regulation, B.C. Reg. 381/2008, is amended

(

a) by adding the following definition:

"money owed" means money that is required to be paid to the government

(

a) under the Act, the former Act, the Range Act , the Forest and Range Practices Act or the Wildfire Act ,

(

b) under an agreement entered into under the Act, the former Act or the Range Act ,

(

c) under an arrangement for payment approved under the Act or the former Act by the revenue minister,

(

d) under a permit issued under the Forest and Range Practices Act , the Forest Practices Code of British Columbia Act or the Wildfire Act , or

(

e) for goods or services, or both, provided by the ministry; , and

(

b) in the

definitions of "sawmill" and "timber processing facility" by striking out " timber " before " processing facility ".

2 Sections 4 (2) (

c) and (3) and 5 (2) (e), (3) and (4) are amended by striking out " timber " before " processing facility ".

Section 9 is repealed and the following substituted:

Deemed cessation of registration

(1) If a circumstance set out in subsection (2) applies in relation to a person registered in a category of BC timber sales enterprise, the person is deemed not to be registered in that category until such time as the circumstance does not apply.

(2) The circumstances for the purposes of subsection (1) are as follows:

(

a) the person has ceased to meet the requirements of this regulation for registration in the category;

(

b) the person holds 3 or more licences under which primary timber harvesting operations have not been completed, whether forest licences, timber sale licences, or any combination of the two;

(

c) there is money owed by

(

i) the person, or

(ii) another person that is not at arm's length with the person,

and, of the total amount owing, more than $500 000 is overdue by more than 84 days.

Section 10 is amended by adding the following subsection:

(3) A timber sales manager must cancel the registration of a person registered in a category of BC timber sales enterprise if the person does not apply for a timber sale licence under

section 20 of the Act within a 5-year period beginning on the later of

(

a) the date the person was registered in the category under this regulation, and

(

b) the date the person most recently applied for a timber sale licence under

section 20 of the Act.

Section 16 is repealed and the following substituted:

Division 2 – Deposits for Timber Sale Licences

Deposit amount payable

(1) Subject to

section 16.1, before entering into a timber sale licence, the successful applicant for the licence must pay to the government, on demand, a deposit for the licence in the amount required under this section.

(2) The deposit amount payable under this

section is based on

(

a) the base deposit amount for the timber sale licence, as determined by the timber sales manager under

section 16.2, and

(

b) whether the successful applicant is a level 1, level 2 or level 3 applicant, as determined by the timber sales manager under

section 16.4 based on primary performance criteria, financial performance criteria and other criteria set out in

section 16.3.

(3) If the successful applicant for the timber sale licence is

(

a) a level 1 applicant, the applicant must pay a deposit in an amount equal to the base deposit amount,

(

b) a level 2 applicant, the applicant must pay a deposit in an amount equal to 2 times the base deposit amount, and

(

c) a level 3 applicant, the applicant must pay a deposit in an amount equal to 3 times the base deposit amount.

(4) If

(

a) the application of the successful applicant specified a standing bid deposit as described in

section 15 (1) (b), or

(

b) the timber sales manager, under

section 15 (2) (b), considered a bid deposit to be unnecessary

the applicant must pay to the government the full deposit amount required under this section.

(5) If the application of the successful applicant included a bid deposit described in

section 15 (1) (

a) or (2) (a), the applicant must pay to the government the difference between

(

a) the full deposit amount required under this section, and

(

b) the bid deposit.

Standing deposit

16.1

(1) If the criteria set out in subsection (3) are met, then instead of paying a deposit in the amount required under

section 16, the successful applicant for the timber sale licence may specify that the applicant relies on a standing deposit.

(2) A standing deposit must be

(

a) in the amount of $100 000, and

(

b) paid in cash, by certified cheque or by other security acceptable to the minister.

(3) The criteria for the purposes of subsection (1) are as follows:

(

a) the applicant must be a level 1 applicant, as determined by the timber sales manager under

section 16.4 (1);

(

b) the applicant must be a BC timber sales enterprise;

(

c) the government must have already received the standing deposit from the applicant.

(4) A standing deposit is non-refundable during the 12-month period immediately following the date on which the standing deposit is first established.

Base deposit amount

16.2

(1) The timber sales manager must determine the base deposit amount for a timber sale licence.

(2) The base deposit amount must not be less than the sum of

(a) 10% of the first $100 000 of the total estimated value of the licence, and

(b) 5% of the remaining total estimated value of the licence.

(3) For the purposes of subsection (2), the "total estimated value of the licence" is equal to the sum of

(

a) the total estimated stumpage value of the licence, and

(

b) the bonus offer proposed by the successful applicant for the licence, if a bonus offer is required to be proposed under

section 20 (3) of the Act.

Interpretation for purposes of

section 16.4

16.3

(1) In this section:

"closing date for applications" , in relation to an application for a timber sale licence, means the closing date set out in the advertisement inviting applications for the licence;

"financial performance evaluation period" , in relation to the successful applicant for a timber sale licence, means the shorter of the following periods:

(

a) the period beginning on October 1, 2012 and ending on the closing date for applications for the licence;

(

b) the 24-month period immediately preceding the closing date for applications for the licence;

"primary performance evaluation period" , in relation to the successful applicant for a timber sale licence, means the shorter of the following periods:

(

a) the period beginning on October 1, 2012 and ending on the closing date for applications for the licence;

(

b) the 48-month period immediately preceding the closing date for applications for the licence.

(2) For the purposes of

section 16.4, the successful applicant for a timber sale licence meets the primary performance criteria if the timber sales manager determines that,

(

a) in the 48-month period immediately preceding the closing date for applications for the licence, the applicant held one or more timber sale licences, and

(

b) during the primary performance evaluation period,

(

i) the applicant did not refuse to enter into a timber sale licence,

(ii) no final determinations were made under the Act disqualifying the applicant from

(

A) being registered as a BC timber sales enterprise, or

(

B) making an application for a timber sale licence,

(iii) no final determinations were made under the Act

(

A) suspending a right held by the applicant under a timber sale licence, or

(

B) cancelling a timber sale licence held by the applicant, and

(iv) no deposits paid by the applicant in respect of a timber sale licence were

(

A) disposed of under

section 21 (2) of this regulation, or

(

B) forfeited to the government under

section 21 (4) of this regulation.

(3) For the purposes of

section 16.4, the successful applicant for a timber sale licence meets the financial performance criteria if,

(

a) in the case of an applicant that has been registered as a BC timber sales enterprise for less than 24 months, the timber sales manager determines that, of the total amount of money, if any, owed by

(

i) the applicant, or

(ii) a person that is not at arm's length with the applicant

not more than $100 000 was overdue by more than 28 days at any time during the financial performance evaluation period, or

(

b) in the case of an applicant that has been registered as a BC timber sales enterprise for 24 months or more, the timber sales manager determines that, of the total amount of money, if any, owed by

(

i) the applicant, or

(ii) a person that is not at arm's length with the applicant

not more than $500 000 was overdue by more than 84 days at any time during the financial performance evaluation period.

(4) For the purposes of

section 16.4 (1) (

c) and subsection (3) of this section, the timber sales manager must determine whether the successful applicant for a timber sale licence, as of the closing date for applications for the licence, has been registered as a BC timber sales enterprise for

(

a) less than 24 months, or

(b) 24 months or more.

(5) In making a determination under subsection (4),

(

a) the timber sales manager may consider only the period of time since the applicant's most recent registration as a BC timber sales enterprise, and

(

b) if the period of time since an applicant's most recent registration as a BC timber sales enterprise includes a period during which the applicant is deemed not to be registered under

section 9, the timber sales manager must proceed as though the period of deemed non-registration were a period of registration.

Determining whether applicant is at level 1, level 2 or level 3

16.4

(1) The successful applicant for a timber sale licence is a level 1 applicant if all of the following apply:

(

a) the applicant meets the primary performance criteria referred to in

section 16.3 (2);

(

b) the applicant meets the applicable financial performance criteria referred to in

section 16.3 (3);

(

c) in the case of an applicant that has been registered as a BC timber sales enterprise for less than 24 months, the timber sales manager is satisfied that, during the period of time in which the applicant has been registered as a BC timber sales enterprise, the applicant has completed timber harvesting operations under a timber sale licence.

(2) The successful applicant for a timber sale licence is a level 2 applicant if one of the following applies:

(

a) the applicant meets the primary performance criteria referred to in

section 16.3 (2) but does not meet the applicable financial performance criteria referred to in

section 16.3 (3);

(

b) the applicant does not meet the primary performance criteria referred to in

section 16.3(2) but meets the applicable financial performance criteria referred to in

section 16.3 (3).

(3) The successful applicant for a timber sale licence is a level 3 applicant if both of the following apply:

(

a) the applicant does not meet the primary performance criteria referred to in

section 16.3 (2);

(

b) the applicant does not meet the applicable financial performance criteria referred to in

section 16.3 (3).

Deposit payable on transfer

16.5

(1) Subject to subsection (2), on completion of the disposition of a timber sale licence, the recipient of the licence must pay to the government a deposit for the licence in the amount determined in accordance with

section 16 (3) and sections 16.2 to 16.4.

(2) If the criteria in

section 16.1 (3) are met, then instead of paying a deposit in the amount required under subsection (1) of this section, the recipient of the timber sale licence may specify that the recipient relies on a standing deposit.

(3) For the purposes of this section,

(

a) a reference in

section 16 (3), 16.1 (3), 16.2 (3) (b), 16.3 or 16.4 to the applicant or successful applicant for a timber sale licence must be read as a reference to the recipient of the timber sale licence, and

(

b) a reference in

section 16.3 to the closing date for applications for the licence must be read as a reference to the completion date of the disposition.

(4) Section 16.1 (2) and (4) applies to a standing deposit specified under subsection (2) of this section.

Maintaining deposit

16.6

(1) If all or part of a deposit, other than a standing deposit specified under

section 16.1 or 16.5 (2), for a timber sale licence is used by the government during the term of the licence, the holder of the licence must make, on demand, a further payment to the government to maintain the deposit in the applicable amount required under

section 16 (3).

(2) If all or part of a standing deposit specified under

section 16.1 or 16.5 (2) for a timber sale licence is used by the government during the term of a timber sale licence, the holder of the licence must make, on demand, a further payment to the government to maintain the standing deposit in the amount set out in

section 16.1 (2) (a).

(3) Despite subsection (1) of this section,

section 7 of the Advertising, Deposits and Disposition Regulation, B.C. Reg. 552/78, as it read immediately before November 4, 2003, applies to a timber sale licence that was advertised or entered into before that date.

Application of Division

16.7

(1) This Division applies to every timber sale licence advertised on or after October 1, 2012.

(2) Section 16 of this regulation, as it read immediately before October 1, 2012, applies to a timber sale licence advertised before that date.

6 The following

section is added to

Part 3:

Definitions

17.1 In this Part:

"bid deposit" means a bid deposit paid under

section 15 (1) (a);

"deposit" means a deposit paid under

section 16 or 16.5 (1);

"standing bid deposit" means a standing bid deposit specified under

section 15 (1) (b);

"standing deposit" means a standing deposit specified under

section 16.1 or 16.5 (2).

Section 18 is repealed and the following substituted:

Refund of bid deposit if application not approved

18 If an application for a timber sale licence is not approved, the bid deposit in respect of the application may be refunded if the timber sales manager is satisfied that there is no need for the bid deposit.

Section 19 (1) is repealed and the following substituted:

(1) If an application for a timber sale licence is approved but the applicant does not enter into the licence, the bid deposit or standing bid deposit in respect of the application is forfeited to the government.

Section 19 (3) (

a) is amended by striking out " the deposit " and substituting " the bid deposit or standing bid deposit ".

10 The following

section is added:

Refund of standing bid deposit

19.1 Subject to

section 15 (4), a standing bid deposit in respect of a timber sale licence may be refunded if the applicant is not relying on that deposit in respect of another application for a timber sale licence.

Section 20 is amended

(

a) by renumbering the

section as

section 20 (1),

(

b) in subsection (1) by striking out " paid under this regulation ", and

(

c) by adding the following subsection:

(2) A standing deposit in respect of a timber sale licence may be refunded in full if

(

a) the holder of the licence is not relying on the standing deposit in respect of another timber sale licence, and

(

b) the timber sales manager is satisfied that the licence holder has fulfilled all obligations under or in respect of the licence.

Section 21 is amended

(

a) in subsection (1) by striking out " a deposit, other than a standing deposit, paid under this regulation " and substituting " a deposit or standing deposit ",

(

b) in subsection (2) by striking out " deposit under subsection (1) " and substituting " deposit or standing deposit under subsection (1) ",

(

c) in subsection (2) (b) (

i) by striking out " original deposit " and substituting " original deposit or standing deposit ",

(

d) in subsection (3) by striking out " realized from a deposit " and substituting " realized from a deposit or standing deposit ",

(

e) in subsection (3) (b) (

i) by striking out " original deposit " and substituting " original deposit or standing deposit ",

(

f) in subsection (4) by striking out " a deposit paid under this regulation " and substituting " a deposit or standing deposit ",

(

g) in subsection (5) (

a) by striking out " a deposit " and substituting " a deposit or standing deposit ", and

(

h) in subsection (6) (

a) by striking out " the holder's deposit " and substituting " the holder's deposit or standing deposit ".

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