Statutes and Regulations


 
FOREST ACTContinued 
RSBC 1996, c. 157
 
 
Part 4 – General Tenure Provisions
 
Division 1 – Interpretation
 
 
  Interpretation and application
  53 (1) In this Part:
 
      "affiliate" means a corporation that is affiliated with another corporation within the meaning of subsection (2);
 
      "agreement" means an agreement in the form of a licence, permit or agreement referred to in section 12;
 
      "control of a corporation" means the holding, other than by way of security only, by or for the benefit of a person or a group of persons not dealing with each other at arm's length, of shares in a corporation that, in an election of the directors of the corporation, carry, in the aggregate, sufficient voting rights, if those rights are exercised, to elect 50% or more of the effective directors or to otherwise effectively control the operations and direction of the corporation;
 
      "deletion period" means, with respect to
      (a) a tree farm licence and replacements for it, each successive 25 year period commencing with the beginning of the term of the original tree farm licence entered into under section 33 of this Act or under section 33 of the Forest Act, R.S.B.C. 1979, c. 140,
      (b) a tree farm licence entered into under section 39 and replacements for it, each successive 25 year period commencing with the beginning of the original tree farm licence entered into under that section,
      (c) a timber licence, the term of the licence,
      (d) a forest licence and replacements for it, each successive 15 year period commencing with the beginning of the term of the original forest licence entered into under section 13 or 16 of this Act or under section 15 of the Forest Act, R.S.B.C. 1979, c. 140,
      (d.1) a forest licence entered into under section 19 and replacements for it, each successive 15 year period commencing with the beginning of the original forest licence entered into under that section,
      (e) a woodlot licence and replacements for it, each successive 15 year period commencing with the beginning of the term of the original woodlot licence entered into under section 44,
      (f) a probationary community forest agreement or a community forest pilot agreement, the term of the agreement, and
      (g) a long-term community forest agreement and replacements for it, each successive 25 year period commencing with the beginning of the term of the original long-term community forest agreement entered into under section 43.4 of this Act;
 
   
"disposition", in relation to an agreement, includes a disposition of an interest in the agreement;
 
      "effective director" means an effective director as defined in the regulations;
 
      "holder of an agreement" means a person, other than the government, that enters into an agreement, either singly or jointly with another person, and includes the transferee or assignee of an agreement and each partner of a partnership that enters into an agreement or is the transferee or assignee of an agreement;
 
      "spouse" means a person who
      (a) is married to another person, or
      (b) is living and cohabiting with another person in a marriage-like relationship, including a marriage-like relationship between persons of the same gender, and has been living and cohabiting in that relationship for the immediately preceding 2 years;
 
    (1.1) Repealed. [2003-30-8 (B.C. Reg. 401/2003)]
 
    (2) For the purposes of this Part, one corporation is affiliated with another corporation if one of them is the subsidiary of the other, or both are subsidiaries of the same corporation, or each of them is controlled by the same person.
 
    (3) For the purposes of this Part, a corporation is a subsidiary of another corporation if
      (a) it is controlled by
        (i) that other corporation,
        (ii) that other corporation and one or more corporations, each of which is controlled by that other corporation, or
        (iii) 2 or more corporations, each of which is controlled by that other corporation, or
      (b) it is a subsidiary of a subsidiary of that other corporation.
 
    (4) For the purposes of subsections (2) and (3), a corporation is controlled by a person if
      (a) shares of the corporation carrying 50% or more of the votes for the election of the directors are held, other than by way of security only, by or for the benefit of that person, and
      (b) the votes carried by the shares referred to in paragraph (a) are sufficient, if exercised, to elect 50% or more of the directors.
 
 
Division 2 – Transfer and Exchange
 
 
  Transfer of agreements permitted
  54 (1) Subject to subsection (2) and to section 54.4, the holder of an agreement may dispose of the agreement to another person.
 
    (2) A disposition of an agreement is without effect unless
      (a) both the holder of the agreement and the intended recipient of the agreement give written notice of the intended disposition
        (i) to the minister, and
        (ii) in the form required by the minister,
      (b) as of the end of the day of the completion of the disposition, all money
        (i) required to be paid to the government under the circumstances set out in section 130 (1.1), and
        (ii) due and payable to the government under that section
        in respect of the agreement
        (iii) has been paid, or
        (iv) is the subject of an arrangement for payment approved by the revenue minister,
      (c) in the case of a disposition of an agreement that is a tree farm licence, any private tenure in the tree farm licence area remains subject to the tree farm licence,
      (d) in the case of a disposition of an agreement that is a woodlot licence, any private land in the woodlot licence area remains subject to the woodlot licence,
      (e) the minister, on being satisfied that the requirements set out in section 54.1 have been met, gives notice to the holder and the intended recipient that the disposition may proceed to completion, specifying in the notice the latest date by which it must be completed, and
      (f) the disposition is completed by the date referred to in paragraph (e).
 
 
  Transfer requirements
  54.1   On receipt of written notice of an intended disposition of an agreement in accordance with section 54, the minister must give the notice under section 54 (2) (e), if satisfied that
      (a) in the case of the disposition of an agreement that is a tree farm licence, forest licence or pulpwood agreement, the disposition will not unduly restrict competition in the standing timber markets, log markets or chip markets,
      (b) in the case of a disposition of an agreement that is a BC timber sales agreement, the intended recipient is a BC timber sales enterprise, and
      (c) in the case of a disposition of an agreement that is a woodlot licence, the intended recipient is a person, band or corporation that, under section 44 or 46.1, may enter into a woodlot licence.
 
 
  Confirmation of completion of disposition and effect of completion
  54.2 (1) On completion of the intended disposition of an agreement referred to in section 54, both the holder of the agreement and the person who acquired the agreement under the disposition must confirm the completion in writing to the minister within 7 days after the completion.
 
    (2) On completion of the intended disposition referred to in section 54, the person who acquired the agreement under the disposition becomes the holder of the agreement for the purposes of this Act.
 
 
  Transfers exempt from certain requirements
  54.3 (1) Sections 54 to 54.2 do not apply to, or in respect of,
      (a) a disposition in good faith of an agreement, by way of a grant of a mortgage or a security interest,
      (b) a disposition to the trustee in bankruptcy of the holder of the agreement,
      (c) a disposition made by way of transmission from the estate of a deceased person to that person's personal representative, or
      (d) a disposition in other prescribed circumstances.
 
    (2) Within 3 months after completion of a disposition under subsection (1) (b) to (d) of an agreement, the person who acquired the agreement under the disposition must notify the minister in writing of the disposition.
 
 
  Transfer of certain agreements not permitted
  54.4 (1) The holder of an agreement may not dispose of the agreement to another person if the agreement
      (a) is an agreement in respect of which rights are under suspension, in whole or in part, under section 76 or 78,
      (b) is an agreement that
        (i) is entered into under section 47.3 (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,
      (c) is a road permit, unless the disposition is made in conjunction with the disposition of the agreement to which the road permit pertains,
      (d) is an occupant licence to cut unless the disposition is made in conjunction with a disposition of
        (i) land, or
        (ii) a right to occupy land
        to which the licence to cut pertains, or
      (e) is a free use permit.
 
    (2) A disposition of an agreement contrary to this section is without effect.
 
 
  Change in control of a corporation that is the holder of an agreement
  54.5 (1) Without notice and despite section 77, the minister may cancel an agreement if the holder of the agreement is a corporation and
      (a) the holder amalgamates with another corporation or, by means of one or a series of transactions, the control of the holder, or of another corporation that directly or indirectly controls the holder, changes, is acquired or is disposed of, and
      (b) immediately after completion of the amalgamation, the change of control, the disposition of control or the acquisition of control, all as set out in paragraph (a),
        (i) all money
          (A) required to be paid to the government under the circumstances set out in section 130 (1.1), and
          (B) due and payable to the government under that section
     
in respect of the agreement
          (C) has not been paid, and
          (D) is not the subject of an arrangement for payment approved by the revenue minister,
        (ii) in the case of an agreement that is a tree farm licence, forest licence or pulpwood agreement, the minister is satisfied that the change of control, the disposition of control or the acquisition of control unduly restricts competition in the standing timber market, log market or chip market,
        (iii) in the case of an agreement that is a BC timber sales agreement, the change of control, the disposition of control or the acquisition of control results in the BC timber sales agreement being held by a person who is not registered in the applicable category of BC timber sales enterprises,
        (iv) in the case of an agreement that is a woodlot licence, the change of control, the disposition of control or the acquisition of control results in the woodlot licence being held by a person who, under section 44 or 46.1, is not permitted to enter into a woodlot licence, or
        (v) on the date of the disposition, rights under the agreement are suspended, in whole or in part, under section 76 or 78.
 
    (2) This section does not apply to a change in, or acquisition of, control of a corporation that is caused by a transmission of shares in its capital from the estate of a deceased person to the person's personal representative.
 
 
  Effect of disposition on obligations
  54.6 (1) If a disposition of an agreement is completed in accordance with section 54, the person who acquired the agreement under the disposition becomes liable in the person's capacity as the holder of the agreement
      (a) for payment of all money in respect of the agreement that
        (i) is required to be paid to the government under the circumstances set out in section 130 of the Forest Act, whether before or after the date of completion, and
        (ii) is due and payable to the government under that section after the date of the completion or under an arrangement for payment under section 54 (2) (b) (iv),
      (b) to perform all obligations under the agreement, including but not limited to obligations accrued or accruing as of the date of completion and still outstanding as of that date, and
      (c) to perform all other obligations in respect of the agreement, including but not limited to obligations
        (i) accrued or accruing as of the date of completion of the disposition and still outstanding as of that date, and
      NEW (ii) imposed with respect to the agreement under this Act, the Forest and Range Practices Act or the Wildfire Act.NEW
 
    (2) The person who disposes of an agreement is jointly and severally liable with the person who acquires the agreement under the disposition for the liabilities described in subsection (1) accrued or accruing as of the date of completion of the disposition and still outstanding as of that date.
 
 
  Disposition or withdrawal of private land subject to
tree farm licence or woodlot licence
  54.7 (1) The minister's prior written consent must be obtained for the disposition of private land or an interest in private land if the private land or interest is subject to a tree farm licence or to a woodlot licence.
 
    (2) The minister may attach conditions to a consent given under subsection (1).
 
    (3) The minister, without notice and despite section 77, may cancel a tree farm licence or woodlot licence if the minister determines that
      (a) the minister's prior written consent was not obtained to a disposition for which the consent was required under in subsection (1), or
      (b) the person to whom a consent was given under subsection (1) does not comply with a condition attached to the consent under subsection (2).
 
    (4) If the minister determines that there are grounds under subsection (3) to cancel a tree farm licence or woodlot licence, but decides against cancelling the licence,
      (a) the minister is deemed to have consented to the disposition of the private land or the disposition of the interest in the private land, and
      (b) the minister, in making the decision not to cancel, may attach conditions to the licence that the minister considers appropriate in the circumstances.
 
    (5) The holder of a licence to which conditions are attached under subsection (4) (b) must comply with the conditions.
 
 
  Transition
  54.8 (1) Sections 54 to 56, as they were immediately before the coming into force of this section, apply to a consent that was given under section 54 (1) before the coming into force of this section.
 
    (2) [Not in force]
 
 
  Repealed
  55   Repealed. [2003-30-9 (B.C. Reg. 403/2003)]
 
 
  Repealed
  56   Repealed. [2003-30-9 (B.C. Reg. 403/2003)]
 
 
  Disposition of allowable annual cut reduction
  56.1 (1) Repealed. [2003-30-9 (B.C. Reg. 403/2003)]
 
    (2) Repealed. [2003-30-9 (B.C. Reg. 403/2003)]
 
    (3) Repealed. [2003-30-9 (B.C. Reg. 403/2003)]
 
    (4) Repealed. [2003-30-9 (B.C. Reg. 403/2003)]
 
    (5) The minister must increase the allowable annual cut of the agreement, effective the date of the reduction under section 56 (1) by an amount equal to the reduction if
      (a) the minister approves the job creation plan under subsection (4) (a) or (b), and
      (b) the increase is consistent with the government's social and economic objectives for the area affected by the agreement.
 
    (6) The minister may reduce the allowable annual cut of an agreement that was subject to an increase under subsection (5) by an amount not exceeding the increase if the holder of the agreement is not complying with the job creation plan approved under subsection (4).
 
    (7) Repealed. [RS1996-157-56.1(8)]
 
    (8) Repealed. [RS1996-157-56.1(8)]
 
 
  Exchanges of rights
  57 (1) The minister, with the consent of the Lieutenant Governor in Council, may enter into, in exchange for the surrender of a timber licence, a new timber licence describing Crown land the timber on which is not otherwise encumbered.
 
    (2) Despite section 95 of the Land Act, the Lieutenant Governor in Council may accept under that section, in exchange for Crown land, private forest land of greater or lesser value.
 
    (3) Before a transaction is completed under subsection (1) or (2), the minister must obtain a current appraisal of the value of the lands or timber, as the case may be, involved in the transaction, prepared by an independent appraiser appointed by the minister.
 
 
Division 3 – Extensions, Increases, Deletions and Reductions
 
 
  Extension of term of non-replaceable forest licences and timber sale licences
  58 (1) Each time the allowable annual cut authorized in a non-replaceable forest licence is reduced under section 63 the regional manager must
      (a) extend the term of the licence in accordance with subsection (2), and
      (b) if required, reduce the allowable annual cut for the last year of the extended term of the licence in accordance with subsection (4).
 
    (2) The term of a licence must be extended by the number of additional years that is equal to
      (a) the extension factor calculated under subsection (3), if the extension factor is a whole number, or
      (b) a number determined by rounding up the extension factor, calculated under subsection (3), to the nearest whole number, if the extension factor is not a whole number.
 
    (3) The extension factor is determined by the following formula:
 
  extension factor  =   E – NE
    NAAC
where  
E  =   the total volume of timber that the licensee would have been entitled to harvest under the licence using the allowable annual cut specified in the licence when the licence was issued less any reductons made under this Act, other than section 63, or the cut control provisions of the licence
NE  =   the total volume of timber that the licensee is entitled to harvest under the licence after the reduction under section 63 of the allowable annual cut authorized in the licence
NAAC  =   the allowable annual cut authorized in the licence after the reduction under section 63 of the allowable annual cut authorized in the licence.
 
    (4) If the extension factor contains a fraction before it is rounded up under subsection (2) (b), the allowable annual cut for the last year of the licence must be determined by multiplying the NAAC determined under subsection (3) by the fraction.
 
    (5) This section does not apply to the holder of a licence if the notice under section 63 is sent to the holder after the total volume authorized under the licence has been harvested.
 
 
  Extension of timber sale licences and cutting permits
  58.1 (1) The holder of a timber sale licence that
      (a) has a term of less than 4 years, and
      (b) was entered into on or after November 4, 2003
  may apply in writing to the timber sales manager for an extension of the term of the licence for a period that
      (c) does not exceed one year, and
      (d) does not result in a term of more than 4 years for that licence.
 
    (2) The holder of a cutting permit that
      (a) has a term of less than 4 years,
      (b) is not issued under a licence to cut, and
      (c) was entered into on or after November 4, 2003
  may apply in writing to the district manager for an extension of the term of the permit for a period that
      (d) does not exceed one year, and
      (e) does not result in a term of more than 4 years for that permit.
 
    (3) Subject to subsection (8), the timber sales manager or district manager must accept an application under subsection (1) or (2) if
      (a) the timber sale licence or the agreement under which the cutting permit was issued, does not prohibit the extensions,
      (b) rights under the timber sale licence or the cutting permit are not under suspension, and
      (c) the holder of the timber sale licence or cutting permit has paid to the government a fee equal to the amount determined under subsection (5) and, if applicable, subsection (5.1).
 
    (4) On the date of acceptance of an application under subsection (3), the term of the timber sale licence or cutting permit, as the case may be, is extended in accordance with the application.
 
    (5) The fee referred to in subsection (3) (c)
      (a) for a timber sale licence for which there was a bonus bid is a fee equal to a prescribed percentage of an amount calculated according to the following formula:
 
[ (the bonus bid) + (the upset stumpage rate) ] x [ the volume or estimated volume of timber, as applicable, that was advertised in the invitation for applications for the licence ]
      or
 
      (b) for a timber sale licence for which there was a bonus offer is a fee equal to a prescribed percentage of an amount calculated according to the following formula:
 
[the bonus offer] + [ (the upset stumpage rate) x (the volume or estimated volume of timber, as applicable, that was advertised in the invitation for applications for the licence) ]
      and
 
      (c) for a cutting permit is a fee equal to a prescribed amount or equal to an amount determined in accordance with one or more prescribed formulas.
 
    (5.1) If the holder of a timber sale licence harvested timber under the licence before applying to extend the term of the licence under subsection (1), the fee payable under subsection (5) (a) or (b) is reduced, to a maximum of 90%, by the percentage derived from the following formula:
the volume of timber harvested under the licence on or before
the date of application as determined by the timber sales manager

 X 100
the volume or estimated volume of timber, as applicable,
that was advertised in the invitation for applications for the licence
 
    (6) However, at the request of the holder of a timber sale licence or cutting permit who has submitted an application for an extension under subsection (1) or (2), the minister or a person authorized by the minister may waive the fee referred to in subsection (3) (c), if the minister or authorized person is satisfied that the reasons for the extension are circumstances
      (a) beyond the holder's control, and
      (b) unrelated to the holder's financial situation.
 
    (6.1) A request referred to in subsection (6) must
      (a) be submitted within 30 days after the date an application for an extension under subsection (1) or (2) is made,
      (b) be signed by, or on behalf of, the requesting person, and
      (c) specify the reasons for the request.
 
    (7) A fee paid under subsection (3) (c) must not be credited towards stumpage.
 
    (8) The timber sales manager or district manager may refuse to accept an application to extend the term of a timber sale licence or cutting permit under subsection (3) if, in his or her opinion, the extension would prevent the fulfilment of an obligation under the Forest and Range Practices Act or the Forest Practices Code of British Columbia Act.
 
    (9) The term of a timber sale licence or cutting permit to which this section applies must not be extended except in accordance with this section.
 
 
  Transition for extension
  58.2 (1) Despite anything to the contrary in an agreement or a cutting permit, a cutting permit, issued before November 4, 2003, with a term that expires after March 31, 2007 expires on that date instead of on the later date specified in it.
 
    (2) A cutting permit that was in effect on November 4, 2003, with a term expiring before March 31, 2007, may be extended to March 31, 2007, on application of its holder made
      (a) before the expiration of the term, or
      (b) despite the expiration of the term, if the term expired on or after November 4, 2003 and before the elapse of 60 days after the coming into force of this section.
 
    (2.1) A cutting permit that was in effect on November 4, 2003 and expiring on March 31, 2007 may be extended by the minister for a period not exceeding 2 years beginning on April 1, 2007, on application made before March 31, 2007 by the holder.
 
    (2.2) For cutting permits that are extended under subsection (2.1), the minister may grant further extensions, each for a period not exceeding 2 years.
 
    (3) This section does not apply to a cutting permit issued under a licence to cut.
 
    (4) Repealed. [2007-18-33(b)]
 
 
  Postponement of operation of cutting permits
NEW  58.21 (1) On application by the holder of a cutting permit that was issued on or after November 4, 2003, the minister, for a forest management reason specified in the regulations, may postpone the operation of the cutting permit for a period of up to 2 years.
 
    (2) The effective date of a postponement under subsection (1) is the date determined by the minister that is on or after the date of application for the postponement.
 
    (3) Despite subsection (2), the effective date of a postponement under subsection (1) for a cutting permit
      (a) that was issued on or after November 4, 2003 and before June 1, 2007, and
      (b) that has less than 2 years' time remaining on its term from the date of the application for the postponement to the expiration date of the cutting permit,
      is the date that is the later of
      (c) the date that timber harvesting under the cutting permit ceased, if harvesting under the cutting permit took place, and
      (d) the date that is 2 years before the expiration date of the cutting permit, if no harvesting under the cutting permit took place during that 2 year period.
 
    (4) On application by the holder of a cutting permit that had its operation postponed under subsection (1), the minister, in accordance with subsection (1), may grant further extensions to the period of postponement, each for a period not exceeding 2 years.
 
    (5) The holder of a cutting permit that had its operation postponed under subsection (1) must not exercise any of the rights granted by the cutting permit during the period of postponement, including any extensions to the period of postponement granted under subsection (4).
 
    (6) Despite subsection (5), the holder of a cutting permit that had its operation postponed under subsection (1) is liable to perform all obligations imposed under this Act, the Forest and Range Practices Act, the Forest Practices Code of British Columbia Act or the Wildfire Act in respect of the cutting permit that were incurred before the operation of the cutting permit was postponed.
 
    (7) On application by the holder of a cutting permit that had its operation postponed under subsection (1), the minister must rescind the postponement of the cutting permit.
 
    (8) If the postponement of a cutting permit is rescinded under subsection (7),
      (a) all rights under the cutting permit are exercisable by the holder of the cutting permit,
      (b) despite any contrary information in the cutting permit, the period of time remaining on the term of the cutting permit on the date the postponement is rescinded is equal to the period of time that remained on the term of the cutting permit on the effective date of the postponement under subsection (1), and
      (c) the operation of the cutting permit must not be postponed again under subsection (1), nor the period of postponement extended under subsection (4).NEW
 
 
  Surrender of BC timber sales agreement
  58.3 (1) The holder of a timber sale licence may apply in writing to the timber sales manager to surrender the licence.
 
    (2) The timber sales manager must accept the application to surrender the licence if
      (a) no harvesting has taken place under the licence, and
      (b) any requirements prescribed for the purposes of this section are fulfilled.
 
    (3) On the date of acceptance of an application under subsection (2)
      (a) the timber sale licence that is the subject of the application is surrendered, and
      (b) if the timber sale licence was advertised on or after November 4, 2003, any deposit required under this Act in relation to the licence and held by the government is forfeited to the government.
 
    (4) However, at the request of the holder of a timber sale licence, the minister or a person authorized by the minister may relieve the holder of a timber sale licence surrendered under this section from the forfeiture imposed under subsection (3) (b) if the minister or authorized person is satisfied that the reasons for the surrender are circumstances
      (a) beyond the holder's control, and
      (b) unrelated to the holder's financial situation.
 
    (5) A request referred to in subsection (4) must
      (a) be made within 30 days after the date an application to surrender a timber sale licence under subsection (1) is made,
      (b) be signed by, or on behalf of, the requesting person, and
      (c) specify the reasons for the request.
 
 
  Increase of allowable annual cut

59 If the holder of a forest licence carries out silviculture treatments to free growing stands, as defined in the Forest and Range Practices Act, located on Crown land in the timber supply area specified in the licence, the regional manager, subject to and if authorized by the regulations, may increase the allowable annual cut authorized under the licence by a volume equal to the determination by the regional manager, or a person authorized by the regional manager, of the potential gain in timber production from the Crown land attributable to the silviculture treatments.
 
 
  Innovative forestry practices
  59.1 (1) For the purpose of improving the productivity of the forestry resource, the minister, at his or her discretion, may enter into an agreement with a person referred to in subsection (2) to allow that person to carry out, subject to subsection (5) and the Forest and Range Practices Act, one or more of the innovative forestry practices and other activities that are set out in a regulation made under subsection (4).
 
    (2) For the purposes of subsection (1), the minister may enter into an agreement with a person who
      (a) is the holder of a forest licence or other agreement that is entered into under section 12 and specified in a regulation made under subsection (4) of this section, and
      (b) presents a written proposal for an agreement to the minister.
 
    (3) An agreement under subsection (1)
      (a) must be for a term not exceeding 15 years, and
      (b) may include terms and conditions that
        (i) the minister considers are necessary to effectively carry out the purpose of the agreement and further the social and economic objectives of the government, and
        (ii) are consistent with this Act and the regulations and the Forest and Range Practices Act, and the regulations and standards made under that Act.
 
    (4) The Lieutenant Governor in Council may make regulations specifying
      (a) the innovative forestry practices and other activities that may be the subject of an agreement referred to in subsection (1), and
      (b) the agreements entered into under section 12, the holders of which may enter into an agreement with the minister under subsection (1) of this section.
 
    (5) A person may only carry out an innovative forestry practice or other activity referred to in subsection (1) if the person
      (a) has prepared and obtained the regional manager's approval of a forestry plan that meets the requirements of subsection (6), and
      (b) is carrying out the practice or activity in accordance with the plan.
 
    (6) A forestry plan
      (a) must contain a description of the management area where the innovative forestry practices or other activities will be carried out,
      (b) must specify the particulars of the innovative forestry practices or other activities,
      (c) must contain a description of how the innovative forestry practices or other activities will be carried out,
      (d) must contain a schedule of when the innovative forestry practices or other activities will be carried out,
      (e) must specify how the innovative forestry practices or other activities will contribute to improved productivity of the forestry resource,
      (f) must specify how the innovative forestry practices or other activities will justify an increase in the allowable annual cut of the participant's licence or agreement referred to in subsection (2) (a), and
      (g) may include other terms and conditions that
        (i) the regional manager believes are necessary to effectively carry out the agreement referred to in subsection (1), and
        (ii) are consistent with this Act and the regulations and the Forest and Range Practices Act, and the regulations and standards made under that Act.
 
    (7) After approving a person's forestry plan, the regional manager may increase the allowable annual cut authorized in the person's licence or agreement referred to in subsection (2) (a) by an amount that is justified according to timber supply analysis methodology approved by the chief forester or the chief forester's designate.
 
    (8) When the regional manager increases an allowable annual cut under subsection (7), the regional manager may limit the increase to a period of time, area of land and type of timber, and may make the increase subject to conditions.
 
    (9) If an assessment of
      (a) the innovative forestry practices or other activities being carried out under the forestry plan, or
      (b) information that was not available at the time the regional manager increased the allowable annual cut under subsection (7)
      indicates that all or part of the allowable annual cut increase was not justified, the regional manager may reduce the allowable annual cut of the licence or agreement referred to in subsection (2) (a) by an amount not exceeding the increase granted under subsection (7).
 
    (10) If, with respect to an innovative forestry practice or other activity, a person is not complying with
      (a) the agreement referred to in subsection (1),
      (b) the forestry plan approved under subsection (5),
      (c) any limitation or conditions imposed under subsection (8), or
      (d) this Act and the regulations made under this Act, or the Forest and Range Practices Act and the regulations or standards made under that Act,
      the regional manager may do one or both of the following:
      (e) suspend or cancel the agreement referred to in subsection (1) and sections 76 and 77 apply with respect to that suspension or cancellation;
      (f) reduce the allowable annual cut of the person's licence or agreement referred to in subsection (2) (a) by an amount the regional manager determines is attributable to the default.
 
    (11) A reduction under subsection (9) or (10) may be apportioned over a period of up to 5 years.
 
    (12) If the forest licence, or other agreement referred to in subsection (2) (a), is suspended, the agreement under subsection (1) is suspended.
 
    (13) If the forest licence, or other agreement referred to in subsection (2) (a), is cancelled or surrendered, the agreement under subsection (1) is cancelled.
 
    (14) If the agreement referred to in subsection (1) is suspended or cancelled, the forestry plan is suspended or cancelled, as the case may be.
 
 
  Deletions, not affecting allowable annual cut,
of Crown land from tree farm licences
  60 (1) In this section, "Crown land" does not include Crown land described in a timber licence.
 
    (2) The minister by written order may delete Crown land from a tree farm licence area, if the deletion does not affect the allowable annual cut determined for the tree farm licence.
 
    (3) Subject to section 60.92, no compensation or damages is payable by the government to a person for a deletion of Crown land under this section.
 
 
  Other deletions, not affecting allowable annual cut, of Crown land
  60.01 (1) The minister by written order may delete Crown land from
      (a) a community forest agreement area, or
      (b) a woodlot licence area
      if the deletion does not affect the allowable annual cut determined for the community forest agreement or woodlot licence.
 
    (2) Subject to section 60.92, no compensation or damages is payable by the government to a person for a deletion of Crown land under this section.
 
 
  Definitions for sections 60.2 to 60.91
  60.1   In this section and in sections 60.2 to 60.91:
 
    "for an access purpose" means for the purpose of
      (a) access to Crown timber
      (b) a right of way for
        (i) a highway,
        (ii) a pipeline, or
        (iii) power transmission, or
      (c) water storage;
 
 
    "for another purpose" means for any purpose other than
      (a) an access purpose, or
      (b) timber production.
 
 
  Other deletions of Crown land -- tree farm licences
  60.2 (1) In this section, "Crown land" does not include Crown land described in a timber licence.
 
    (2) The minister by written order may delete from a tree farm licence area Crown land to be used for an access purpose or for another purpose.
 
 
  Other deletions of Crown land -- community forest agreements,
woodlot licences and timber licences
  60.3   The minister by written order may delete from
      (a) a community forest agreement area,
      (b) a woodlot licence area, or
      (c) the area described in a timber licence
      Crown land to be used for an access purpose or for another purpose.
 
 
  Reductions in allowable annual cut under forest licences and timber sale licences
  60.4   The minister by written order may reduce the allowable annual cut authorized in
      (a) a forest licence, or
      (b) a timber sale licence
      if Crown land in the timber supply area specified in the licence is used for an access purpose or for another purpose.
 
 
  Notice of an order under sections 60, 60.01 or 60.2 to 60.4
  60.5 (1) Subject to section 60.501 and subsection (2), the minister may not make an order under section 60, 60.01 or any of sections 60.2 to 60.4 unless the minister serves at least one year's advance notice of the proposed order on the holder of the agreement or licence that is the subject
      (a) of the intended deletion of Crown land, in the case of a tree farm licence, community forest agreement, woodlot licence, community forest agreement or timber licence, or
      (b) of the intended reduction in allowable annual cut, in the case of a forest licence or timber sale licence.
 
    (2) If the Crown land to be deleted
      (a) by order under section 60.2 from a tree farm licence area, or
      (b) by order under section 60.3 from a community forest agreement area, woodlot licence area or the area described in a timber licence
      is to be used for exploration or development activities associated with oil and gas purposes, the minister may make the order if the minister serves at least 60 days' advance notice of the order on the holder of the licence that is the subject of the intended deletion of Crown land.
 
    (3) A notice under this section must include or be accompanied by particulars of the intended deletion of Crown land or reduction in allowable annual cut, as the case may be.
 
 
  Deletions under the Park Act
  60.501 (1) If, under section 11 (2.3) of the Park Act, Crown land is deleted from a tree farm licence area, community forest agreement area or woodlot licence area, the minister must
  (a) make the order under section 60, 60.01, 60.2 or 60.3 of this Act the minister considers appropriate, and
  (b) serve a notice of the order on the holder of the tree farm licence, community forest agreement or woodlot licence that includes or is accompanied by particulars of the deletion.
 
    (2) If, under section 11 (2.3) of the Park Act, Crown land is deleted from the area described in a timber licence, the minister must make an order under section 60.3 of this Act in relation to the deletion and serve a notice on the holder of the timber licence that includes or is accompanied by particulars of the deletion.
 
    (3) If, under section 11 (2.3) of the Park Act, Crown land is deleted from a timber supply area, the minister
  (a) must serve a notice on the holder of a forest licence or timber sale licence affected by the deletion, advising whether there will be an order made under section 60.4 in relation to the forest licence or timber sale licence, and
  (b) may make an order under section 60.4 in relation to a forest licence or timber sale licence affected by the deletion.
 
    (4) A reduction in allowable annual cut under subsection (3) (b) is deemed to have been ordered on the date the deletion is effective under section 11 (2.3) of the Park Act.
 
 
  Deemed amendment to affected agreements
  60.51 (1) Each tree farm licence that is affected by an order under section 60 or 60.2 is deemed amended to reflect the order under that section.
 
    (2) Each community forest agreement or woodlot licence that is affected by an order under section 60.01 is deemed amended to reflect the order under that section.
 
    (3) Each community forest agreement, woodlot licence or timber licence that is affected by an order under section 60.3 is deemed amended to reflect the order under that section.
 
    (4) Each forest licence or timber sale licence that is affected by an order under section 60.4 is deemed amended to reflect the order under that section.
 
 
  Compensation in respect of tree farm licence areas
  60.6 (1) In this section:
 
    "Crown land" does not include Crown land in the area described in a timber licence;
 
 
    "current allowable annual cut" means the allowable annual cut that the chief forester determines to be attributable to the Crown land in a tree farm licence area immediately before a deletion under section 60.2;
 
 
    "original allowable annual cut" means the allowable annual cut that the chief forester determines was attributable at the beginning of the applicable deletion period to the Crown land in a tree farm licence area.
 
    (2) If, during the deletion period for a tree farm licence,
      (a) a deletion, or
      (b) a series of deletions, if more than one,
      from the tree farm licence area, of Crown land to be used for an access purpose has the effect of reducing the current allowable annual cut by more than 5% of the original allowable annual cut, the holder of the tree farm licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).
 
    (3) If, during the deletion period for a tree farm licence,
      (a) a deletion, or
      (b) a series of deletions, if more than one,
      from the tree farm licence area, of Crown land to be used for another purpose has the effect of reducing the current allowable annual cut by more than 5% of the original allowable annual cut, the holder of the tree farm licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).
 
    (4) The compensation to which the holder of a tree farm licence is entitled under subsection (2) or (3), as the case may be, is an amount equal to the value, for the unexpired portion of the term of the licence, of the harvesting rights under the licence that are taken by means of the part of the reduction that, in the opinion of the chief forester, exceeds 5% of the original allowable annual cut.
 
 
  Compensation in respect of community forest
agreement and woodlot licence areas
  60.7 (1) In this section:
 
    "current allowable annual cut" means the allowable annual cut for a community forest agreement or woodlot licence immediately before a deletion under section 60.3;
 
 
    "original allowable annual cut" means the allowable annual cut for a community forest agreement or woodlot licence at the beginning of the applicable deletion period.
 
    (2) If, during the deletion period for a community forest agreement or woodlot licence,
      (a) a deletion, or
      (b) a series of deletions, if more than one,
      from the community forest agreement area or woodlot licence area, of Crown land to be used for an access purpose has the effect of reducing the current allowable annual cut by more than 5% of the original allowable annual cut, the holder of the community forest agreement or woodlot licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).
 
    (3) If, during the deletion period for a community forest agreement or woodlot licence,
      (a) a deletion, or
      (b) a series of deletions, if there are more than one,
      from the community forest agreement area or woodlot licence area, of Crown land to be used for another purpose has the effect of reducing the current allowable annual cut by more than 5% of the original allowable annual cut, the holder of the community forest agreement or woodlot licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).
 
    (4) The compensation to which the holder of a community forest agreement or woodlot licence is entitled under subsection (2) or (3), as the case may be, is an amount equal to the value, for the unexpired portion of the term of the agreement or licence, of the harvesting rights under the agreement or licence that are taken by means of the part of the reduction that exceeds 5% of the original allowable annual cut.
 
 
  Compensation in respect of timber licences
  60.8 (1) In this section:
 
    "current timber licence area" means the area that, immediately before a deletion under section 60.3, was the area described in a timber licence;
 
 
    "original timber licence area" means the area that, at the beginning of the deletion period for a timber licence was the area described in the timber licence.
 
    (2) If, during the deletion period for a timber licence,
      (a) a deletion, or
      (b) a series of deletions, if more than one,
      from the current timber licence area, of Crown land to be used for an access purpose has the effect of reducing the current timber licence area by more than 5% of the original timber licence area, the holder of the timber licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).
 
    (3) If, during the deletion period for a timber licence,
      (a) a deletion, or
      (b) a series of deletions, if more than one,
      from the current timber licence area, of Crown land to be used for another purpose has the effect of reducing the current timber licence area by more than 5% of the original timber licence area, the holder of the timber licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).
 
    (4) The compensation to which the holder of a timber licence is entitled under subsection (2) or (3), as the case may be, is an amount equal to the value of the harvesting rights under the licence that are taken by means of the part of the reduction that exceeds 5% of the original timber licence area.
 
 
  Compensation in respect of forest licences or timber sale licences
  60.9 (1) In this section:
 
    "current allowable annual cut" means the allowable annual cut for a forest licence or timber sale licence immediately before a reduction under section 60.4;
 
 
    "original allowable annual cut" means the allowable annual cut for a forest licence or timber sale licence at the beginning of the applicable deletion period.
 
    (2) If, during the deletion period for a forest licence or timber sale licence,
      (a) a reduction, or
      (b) a series of reductions, if more than one,
      in the current allowable annual cut for the forest licence or timber sale licence, as a result of the use of Crown land in the timber supply area specified in the licence for an access purpose, reduces the current allowable annual cut by more than 5% of the original allowable annual cut, the holder of the forest licence or timber sale licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).
 
    (3) If, during the deletion period for a forest licence or timber sale licence,
      (a) a reduction, or
      (b) a series of reductions, if more than one,
      in the current allowable annual cut for the forest licence or timber sale licence, as a result of the use of Crown land in the timber supply area specified in the licence for another purpose, reduces the current allowable annual cut by more than 5% of the original allowable annual cut, the holder of the forest licence or timber sale licence is entitled to compensation from the government in an amount determined in accordance with subsection (4).
 
    (4) The compensation to which the holder of a forest licence or timber sale licence is entitled under subsection (2) or (3), as the case may be, is an amount equal to the value, for the unexpired portion of the term of the licence, of the harvesting rights under the licence that are taken by means of the part of the reduction that exceeds 5% of the original allowable annual cut.
 
 
  Access purpose deletions or reductions
unrelated to those for another purpose
  60.91 (1) In this section:
 
    "Crown land" does not include Crown land in the area described in a timber licence;
 
 
    "current allowable annual cut" mea