Procedures for Transfer
of a Woodlot Licence
or Christmas Tree Permit
Under Division 2 of the
Forest
Act
Southern
April 12, 2006
Southern
April 12, 2006
The following procedures apply to Woodlot Licences (WL) and Christmas Tree Permits (CTP) issued under Section 12 of the Forest Act of which the administration is the responsibility of the Ministry of Forests.
With respect to agreement transfers, the Forest Act uses the term disposition. The definition of dispose included in the Interpretations Act is follows:
"Dispose" means to transfer by any method and includes assign, give, sell, grant, charge, convey, bequeath, devise, lease, divest, release and agree to do any of those things.
Exemptions
The following transactions are exempt from statutory requirements:
·
To a
trustee in bankruptcy;
·
From
the estate of a deceased person to the personal representative; or
·
Transfers
from a corporation to an affiliated corporation
In these cases, the legal holder of the agreement has changed and the
ministry requires written notice within three months of the event. The notice must be sent to
Regional Executive Director
Ministry of Forests and Range
Southern
The notice must include the following information:
1.
The agreement(s)
involved;
2.
A
description of the disposition, either bankruptcy, death of a licensee, or
transfer to an affiliated corporation;
3.
For
dispositions involving bankruptcy or death of a licensee, the name and contact
information for the trustee or the personal representative;
4.
For
transfers involving an estate, a certified true copy of the death certificate
and a certified true copy of the will, or a portion thereof, indicating the name(s)
of the executor/executrix; and
5.
For
transfers to an affiliated corporation, the following information:
·
shareholder
and directors listing of both entities (latest copy of the registered records
office)
·
copy
of the Corporation Title (from the Registrar of Companies)
·
copy
of the Online Search (indication of companies’ standings)
Subsequent tenure transfers from the trustee in a bankruptcy to another
party, or from the personal representative to a beneficiary are not exempt from
the statutory requirements related to a tenure transfer.
Transfer of a Woodlot Licence or Christmas
Tree Permit
Notice of Intended Disposition
For WLs and CTPs, the completed Notice of Intended Disposition must be sent to the Regional Executive Director at the following address:
Regional Executive Director
Ministry of Forests and Range
Southern
The Notice of Intended Disposition must include the following information:
1. Information of the current holder and intended recipient. In addition to the address and phone numbers, if the intended recipient is an individual or individuals, the full given name, birthdate, and BC Drivers Licence number is required. For corporations, a listing of the officers, directors and major shareholders, and percentage of shares held by major shareholders where applicable. The WCB number is also required for corporations;
2.
A
description of the proposed transaction including a list of all tenures
involved, including any associated road permits;
3.
Confirmation
that the intended recipient is a person, band or corporation that is eligible
to hold a WL under the Forest Act or
a CTP under the Christmas Tree Regulation;
4.
If
the agreement is a Woodlot Licence:
a
description of the private land, if any, that is subject to the agreement; and
confirmation
that the intended recipient does not hold or control a corporation that holds
more than one other woodlot licence;
5. An indication of how the deposit
currently held under the licence is to be dealt with;
6. The name, position (if applicable) and phone number of the transferee and transferor’s contact person for the proposed transaction;
7. The intended completion date of the transaction;
8. Payment of a non-refundable administrative fee of $100.00 per agreement (licences and road permits). A check payable to the Minster of Finance of the correct amount must be included with the Notice of Intended Agreement Transfer; and
9. If the transfer is from an Estate, a certified true copy of the death certificate and a certified true copy of the will, or portion thereof, indicating the personal representative (executor/executrix). (This is not required if previously submitted) The executor or executrix must sign on behalf of the Estate.
Notice must be received from both the current holder and intended recipient. Joint submissions are encouraged.
Review
of Intended Disposition
Upon receipt of a Notice of Intended Disposition, the Regional Executive Director will review the notice and confirm the following:
1. The agreement(s) to be transferred is transferable. The following agreements are not transferable:
i. an agreement issued under Section 47.3 (direct award to a First Nation) unless the transfer meets the prescribed criteria;
ii. road permit unless the associated licence is also being transferred; or
iii. an agreement that has been suspended under Section 69 of the Forest Act.
2. All road permits issued in association with the WL being transferred are also being transferred.
3.
If licence is a WL, intended
recipient is eligible to hold the licence as per Section 44 of the Forest Act. If the agreement is a CTP, the applicant is
eligible to hold the licence as per Section 2 of the Christmas Tree Regulation. In both cases, the recipient must be a
Canadian citizen or permanent resident of
Issuing
a Notice to Proceed/Notice Not to Proceed with Intended Transfer
If all requirements are met, the Regional Executive Director must issue a notice that he/she is satisfied that the requirements of Section 54.1 of the Forest Act have been met and that the transfer may proceed.
The notice will also include the following:
Specify the latest date by which the transfer must be completed
otherwise the Notice to Proceed would be null and void;
Requirement to notify the regional executive director of the date of
completion of the disposition; and
Requirement to deal with security deposits if not indicated on the Notice
of Intended Disposition.
Completion of Disposition
Upon receiving a Notice to Proceed from the Regional Executive Director, the current holder and intended recipient may complete the disposition in accordance with the agreement between the two parties. The Ministry of Forests is not involved in this part of the process.
Payment of Accounts
The Forest Act requires that as of the end of the day of the completion of the disposition, all money required to be paid to the government under the circumstances set out in Section 130 of the Forest Act, and due and payable under that section, in respect of the agreement has been paid or is the subject of an arrangement for payment approved by the minister responsible for collecting the money.
The Ministry of Small Business and Revenue is responsible for collecting money owed to the Crown. To confirm that your account is current, please contact them by phone at (250) 828-4030 or by fax at (250) 371-3880.
Payment
can be made by cheque payable to the Minister of Finance and either mailed or
delivered to the office located
Ministry of Small Business and Revenue
#204 – 455 Columbia Street
Kamloops, British Columbia
V2C 6K4
When
payment is made the credit will be applied to the account and the subsequent
statement will show the payment. Upon
request a receipt may be issued.
Extension of Time
If an
extension of time is required to complete the transfer, a request must be
submitted, in writing, to the Regional Executive Director prior to the
deadline.
Notification of Completion
of Transfer
Upon completion of the transfer, the current holder and intended recipient must notify the Regional Manager that the transfer has been completed. While this notice must be sent within 21 days of the completion of the transfer, the parties are encouraged to provide notification as soon as possible to minimize licence administration and billing complications. A copy of the land title for the Schedule A land showing the intended recipient as the title holder must be attached to the Notification of Completion.
On the date of completion, all accounts must be current and transactions involving Schedule A land must be complete.
Licence Administration
Upon receipt of the Notification of Completion of Transfer, regional staff will be responsible for completing the various licence administration requirements including the updating of the files and systems.
The various systems (FTA; Apportionment) must be updated.
If the deposit is being replaced, any deposits currently held by the ministry may be released to the previous holder upon the appropriate deposits being received by the new holder of the agreement.
1. If the Schedule A land will be transferred with the woodlot licence to the intended recipient of the woodlot licence, a copy of the land title showing the registered owner as the intended recipient must be included with the Notice of Completion.
2. Woodlot licence transfers from individual(s) to a corporation held by the same individuals.
If the Schedule A land is currently owned by the individual(s) and there is no intention of transferring the land title to the corporation, a satisfactory lease between the individual(s) and the corporation must be submitted with the Notice of Completion. Please see the attached information for details regarding the lease requirements.
3. Woodlot licence transfers with private land transfers.
If the intended recipient is replacing the existing Schedule A land with a new parcel, the land transfer must be completed prior to the woodlot licence transfer. A letter from both parties must be submitted to the appropriate District Manager containing the information as per the attached requirements. The Notice of Intended Disposition of a Woodlot Licence can also be submitted at this time. The District Manager will review the submission, assess the land to be exchanged and submit a report to the Regional Executive Director. If the proposed exchange is acceptable, approval will be given by the Regional Executive Director to proceed with the exchange. At this point a lease arrangement between the owner of the replacement parcel (who is also the intended recipient of the woodlot licence) and the current woodlot licence holder must be completed and submitted to the Regional Executive Director. Following receipt of the lease, the transfer of the woodlot licence can occur.
Compliance
For licences that received a Notice
to Proceed and have completed the disposition, regional staff will monitor the
compliance with the statutory obligations associated with the disposition of
certain agreements. The obligations
include:
·
Payment
of accounts in accordance with the Act.
·
The
transfer of private land as part of the disposition of a Woodlot Licence.
In addition, regional staff will
investigate any disposition that may have occurred without complying with the
statutory obligation to notify the minister and receive a Notice to Proceed.
Enforcement
Any disposition that has occurred without meeting the statutory requirements will be without effect and not recognized by the Ministry of Forests.
For any other details
regarding WL or CTP transfers or private land disposition, please contact
either Trudy Goold or Don Youwe at the Southern
Lease Requirements
In order for leased land to be included in a woodlot licence, the lease must contain the following points:
“This lease will expire upon the date of completion of the transfer of Woodlot Licence #___ from _______________________ to _____________________.”
Schedule A Land
Exchange Information Requirements
Current Schedule A land
1. Full legal description
2. Forested area
3. Proximity to woodlot licence Crown portion
4. An evaluation of the timber types.
age class
species composition
stocking
height
site index
area of type
mature, advanced immature, free growing, stocked, or NSR
5. Harvest History
6. Outstanding obligations
7. Map of current area
8. Current Allowable Annual Cut
Proposed Schedule A land
1. Full legal description and
2. Land title & owner
3. Forested area
4. Proximity to woodlot licence Crown portion
5. An evaluation of the timber types.
age class
species composition
stocking
height
site index
area of type
mature, advanced immature, free growing, stocked, or NSR (not
sufficiently restocked)
6. Harvest History
7. Map of proposed area
8. Estimate of Allowable Annual Cut