<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File No. 1-7852
POPE & TALBOT, INC.
Delaware 94-0777139
(State or other jurisdiction of I.R.S. Employer Identification Number
incorporation or organization)
1500 S.W. 1st Ave., Portland, Oregon 97201
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (503) 228-9161
NONE
Former name, former address and former fiscal year, if changed since last
report.
Indicate by checkmark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
---- ----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the latest practicable date.
Common stock, $1 par value - 13,363,779 shares as of November 5, 1996
<PAGE> 2
PART I. FINANCIAL INFORMATION
Page No.
--------
ITEM 1. Financial Statements:
Consolidated Condensed Balance Sheets -
September 30, 1996 and December 31, 1995 2
Consolidated Statements of Income -
Three and Nine Months Ended September 30, 1996 and 1995 3
Consolidated Condensed Statements of Cash Flows -
Three and Nine Months Ended September 30, 1996 and 1995 4
Notes to Consolidated Condensed Financial Statements 5
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6-9
PART II. OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K 10-12
<PAGE> 3
PART I.
POPE & TALBOT, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(Dollars in Thousands)
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------ ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 36,419 $ 13,826
Marketable securities 8,231 -
Accounts receivable 42,920 52,931
Inventories:
Raw materials 41,867 40,458
Finished goods 26,993 28,252
--------- ---------
68,860 68,710
Prepaid expenses and other 15,141 15,616
Discontinued operations assets held for sale - 56,169
--------- ---------
Total current assets 171,571 207,252
Properties:
Plant and equipment 456,248 447,577
Accumulated depreciation (260,127) (232,199)
--------- ---------
196,121 215,378
Land and timber cutting rights 10,315 10,382
--------- ---------
Total properties 206,436 225,760
Other assets:
Deferred income tax assets, net 18,236 16,531
Goodwill, net of amortization 3,905 4,029
Other 18,019 18,655
--------- ---------
Total other assets 40,160 39,215
--------- ---------
$ 418,167 $ 472,227
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 37,000 $ 43,000
Current portion of long-term debt 457 457
Accounts payable and accrued liabilities 57,222 66,007
Income taxes 431 4,031
--------- ---------
Total current liabilities 95,110 113,495
Noncurrent liabilities:
Reforestation 17,022 16,617
Postretirement benefits 13,408 13,909
Long-term debt, net of current portion 108,174 138,514
--------- ---------
Total noncurrent liabilities 138,604 169,040
Stockholders' equity:
Common stock 13,972 13,972
Additional paid-in capital 35,976 35,976
Retained earnings 151,337 156,810
Cumulative translation adjustments (5,721) (5,955)
Less treasury shares at cost (11,111) (11,111)
--------- ---------
Total stockholders' equity 184,453 189,692
--------- ---------
$ 418,167 $ 472,227
========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated condensed
balance sheets.
2
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POPE & TALBOT, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in Thousands Except Per Share Amounts)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
--------------------------- --------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Wood products $ 58,939 $ 67,237 $ 169,538 $ 198,667
Pulp and paper products 53,427 64,536 164,077 191,434
----------- ----------- ----------- -----------
Total 112,366 131,773 333,615 390,101
Costs and expenses:
Cost of sales:
Wood products 50,678 65,121 152,306 193,529
Pulp and paper products 52,589 63,054 162,501 187,936
Selling, general and administrative 4,193 4,603 12,937 15,120
Interest, net 2,178 3,567 6,647 10,695
----------- ----------- ----------- -----------
Total 109,638 136,345 334,391 407,280
Income (loss) before income taxes and
discontinued operations 2,728 (4,572) (776) (17,179)
Income tax provision (benefit) 1,591 (1,192) 190 (6,433)
----------- ----------- ----------- -----------
Income (loss) from continuing operations 1,137 (3,380) (966) (10,746)
Discontinued operations:
Loss from discontinued operations (net of
tax benefit of $1,189 and $2,814 for three and
nine months ended September 30, 1995,
respectively) - (3,265) - (6,144)
Gain on disposal of discontinued operations
(net of applicable income taxes of $2,074) - - 3,110 -
----------- ----------- ----------- -----------
Net income (loss) $ 1,137 $ (6,645) $ 2,144 $ (16,890)
=========== =========== =========== ===========
Income (loss) per common share:
Income (loss) from continuing operations $ .08 $ (.25) $ (.07) $ (.81)
Income (loss) from discontinued operations - (.24) .23 (.45)
----------- ---------- ----------- -----------
Net income (loss) $ .08 $ (.49) $ .16 $ (1.26)
=========== ========== =========== ===========
Cash dividends per common share $ .19 $ .19 $ .57 $ .57
=========== ========== =========== ===========
Weighted average number of
common shares outstanding 13,363,779 13,363,779 13,363,779 13,363,433
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these consolidated condensed
financial statements.
3
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POPE & TALBOT, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in Thousands)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
------------------------- -------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Cash flow from operating activities:
Net income (loss) $ 1,137 $ (6,645) $ 2,144 $ (16,890)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 7,749 11,263 23,739 32,775
Gain on disposal of discontinued operations - - (5,184) -
Increase (decrease) in:
Accounts payable and accrued liabilities 7,582 7,398 (11,196) (10,946)
Income taxes 326 (1,099) (3,600) (6,959)
Reforestation (329) 23 375 613
Postretirement benefits 226 196 574 631
Deferred income taxes, net (894) (2,740) (1,701) (10,105)
Decrease (increase) in:
Accounts receivable (4,749) 904 9,861 2,391
Inventories (10,838) 7,975 96 34,910
Deposits on timber purchase contracts 963 2,547 (145) 147
Prepaid expenses and other 228 847 (1,342) (1,096)
Deferred charges and other (1,359) (936) (670) (4,573)
---------- ---------- ---------- ----------
Net cash provided by operating activities 42 19,733 12,951 20,898
Cash flow from investing activities:
Capital expenditures (2,087) (6,901) (3,944) (25,443)
Proceeds from disposal of discontinued operations - - 50,500 -
Proceeds from sale of Paragon Trade Brands, Inc.
common stock - - 4,819 -
Proceeds from sale of other properties 10 186 2,224 487
---------- ---------- ---------- ----------
Net cash provided by (used for)
investing activities (2,077) (6,715) 53,599 (24,956)
Cash flow from financing activities:
Net increase (decrease) in short-term borrowings 33,000 (11,200) (6,000) (5,000)
Net reduction of long-term debt (115) (108) (30,340) (319)
Cash dividends (2,539) (2,539) (7,617) (7,617)
Decrease in restricted bond funds - 4,987 - 14,607
Net proceeds from issuance of treasury stock - - - 15
---------- ---------- ---------- ----------
Net cash provided by (used for)
financing activities 30,346 (8,860) (43,957) 1,686
---------- ---------- ---------- ----------
Increase (decrease) in cash and
cash equivalents 28,311 4,158 22,593 (2,372)
Cash and cash equivalents at
beginning of period 8,108 317 13,826 6,847
---------- ---------- ---------- ----------
Cash and cash equivalents at
end of period $ 36,419 $ 4,475 $ 36,419 $ 4,475
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these consolidated condensed
financial statements.
4
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POPE & TALBOT, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
September 30, 1996 and 1995
(Unaudited)
1. General
The consolidated condensed interim financial statements have been
prepared by the Company without audit and are subject to normal
recurring year-end adjustments. Certain information and footnote
disclosure normally included in financial statements prepared in
accordance with generally accepted accounting principles has been
condensed or omitted pursuant to the rules and regulations of the
Securities and Exchange Commission. In the opinion of the Company, the
accompanying unaudited consolidated condensed financial statements
contain all adjustments (all of which are of a normal recurring nature)
necessary to present fairly the financial position of the Company as of
September 30, 1996 and December 31, 1995, and the results of operations
and changes in cash flows for the three and nine months ended September
30, 1996 and 1995. It is suggested that these interim statements be
read in conjunction with the financial statements and notes thereto
contained in the Company's 1995 report on Form 10-K. The results of
operations for the three and nine months ended September 30, 1996 and
1995 are not necessarily indicative of the results to be expected for
the full year.
2. Income Taxes
The income tax provision is estimated on an interim basis using the
best available information for projected results for the entire year.
3. Earnings per Share
Per share information is based on the weighted average number of common
shares outstanding during each period.
Refer to Exhibit 11.1 of this filing for the computation of average
common shares outstanding and earnings per share.
4. Discontinued Operations
On December 11, 1995, the Company entered into a definitive agreement
to sell its disposable diaper business (the "business") to Paragon
Trade Brands, Inc. (Paragon). On February 8, 1996, the sale was
completed. The Company sold substantially all the operating assets of
the business, primarily properties and inventories, to Paragon for
$50.5 million in cash and shares of unregistered Paragon common stock
having a value at the time the transaction was closed of approximately
$13.0 million. In the first quarter, pursuant to a stockholders'
agreement between the Company and Paragon, Paragon exercised an option
to repurchase 227,719 shares from the Company resulting in proceeds to
the Company of $4.8 million. The Company's remaining investment in
Paragon common stock is valued at $8.2 million and is included in the
Consolidated Condensed Balance Sheets at September 30, 1996 as
marketable securities. The pre-tax gain on disposition of the business
of $5.2 million has been accounted for as discontinued operations and
includes closing costs associated with the transaction and a provision
of $0.4 million for operating losses during the phase-out period. The
prior year Consolidated Statement of Income has been restated to
reflect the discontinuation of the diaper business.
5
<PAGE> 7
POPE & TALBOT, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SEPTEMBER 30, 1996 AND 1995
(unaudited)
RESULTS OF OPERATIONS
Solid operating profits in the wood products segment more than offset a small
loss in the pulp and paper products segment resulting in third quarter 1996
income of $1,137,000, or $.08 per share, for Pope & Talbot, Inc. (the
"Company"). The 1996 third quarter income was an improvement over the third
quarter 1995 loss from continuing operations of $3,380,000, or $.25 per share.
The third quarter of 1995 also had a loss from discontinued diaper operations of
$3,265,000, or $.24 per share. The Company's diaper business was sold in the
first quarter of 1996. Third quarter 1996 revenues of $112,366,000 were 15
percent below the third quarter of 1995 as lower pulp and wood chip revenues
combined with sales lost as a result of the late 1995 closure of the Port Gamble
sawmill more than offset higher tissue and lumber sales. Third quarter 1996
year-to-date net income totaled $2,144,000, or $.16 per share, reflecting a loss
from continuing operations of $966,000, or $.07 per share, and a gain on the
disposal of the Company's discontinued diaper business of $3,110,000, or $.23
per share. For the corresponding nine months of 1995, the Company incurred a
loss from continuing operations of $10,746,000, or $.81 per share, and a loss
from discontinued operations of $6,144,000, or $.45 per share.
Wood products segment earnings of $7.1 million in the third quarter of 1996
compared to income of $1.2 million in the third quarter of 1995. This segment
represented 52 percent of third quarter 1996 revenues. Third quarter 1996
year-to-date wood products earnings were $14.1 million versus income of $1.6
million in the comparable 1995 period. Included in the 1996 year-to-date results
was a $2.1 million gain recorded in the first quarter related to the sale of
sawmill equipment at Port Gamble. The Port Gamble facility was permanently shut
down in the fourth quarter of 1995 due to the increasing difficulty in obtaining
an adequate supply of acceptably priced logs. Difficult winter weather
conditions across the U.S. limited upward movement of lumber sales prices for
much of the first quarter of 1996. At the end of the 1996 first quarter, lumber
prices began to improve and this price improvement continued during the second
and third quarters. Overall lumber prices in the third quarter of 1996 were 23
percent and 8 percent better than during the 1996 first and second quarters,
respectively, and were 26 percent higher than in the third quarter of 1995.
Average lumber prices for the first nine months of 1996 were 12 percent higher
than the 1995 period. Although lumber prices have increased in 1996, the market
for the sawmill residual wood chips in the Pacific Northwest and British
Columbia has fallen dramatically since the fourth quarter of 1995, reflecting
weak pulp markets. The residual chip market moved up steadily during 1995 to
peak levels in the third and early fourth quarters, however, with the falling
pulp markets, chip prices have fallen sharply since the peaks. Third quarter
1996 chip prices were down 12 percent from the 1996 second quarter at levels
about 45 percent less than first quarter averages and were down more than 60
percent from those obtained in the third quarter of 1995. The residual chip
market seems to have bottomed in the middle of the second quarter of 1996.
Year-to-date 1996 chip prices were down about 40 percent from those obtained in
the comparable 1995 period. The Company uses residual chips in its pulp business
which mitigates somewhat the impact of these falling chip prices. However, the
Company produces more residual chips in its lumber business than it consumes in
the pulp business, so on balance, declining chip prices have a detrimental
impact on the Company's operating results.
6
<PAGE> 8
Third quarter 1996 lumber sales volume of 131 million board feet compared to
shipments of 149 million board feet in the third quarter of 1995. Shipments for
the first nine months of 1996 totaled 400 million board feet compared to 474
million board feet during the 1995 period. The year-to-year volume reductions
related mainly to the Port Gamble sawmill closure. The Company's sawmills
operated at capacity in the third quarter of 1996.
During the first quarter of 1996, U.S. and Canadian trade negotiators reached an
agreement establishing volume quotas on Canadian softwood lumber shipments to
the U.S. The 5-year agreement took effect April 1, 1996. The quotas specify on a
company by company basis the lumber volumes which may be shipped to the U.S.
tariff-free and those volumes which may be shipped to the U.S. subject to a $50
per thousand board foot tariff. Shipment volumes in excess of these established
quotas are subject to a $100 per thousand board foot tariff. For purposes of
determining tariff levels, the quota volumes are evaluated annually during the
April 1 through March 31 fiscal year, and are further measured on a quarterly
basis within each fiscal year. The Company was informed of its fiscal year
1996/1997 quota volumes in late October 1996. The Company believes its volume
allocations were determined consistently with other Canadian lumber companies.
The Canadian government may adjust company by company allocations for future
fiscal year quota periods. Since the quota agreement was made earlier in 1996,
domestic lumber markets have demonstrated periods of dramatic instability,
including some positive and some negative movements. During the time since
company allocations were communicated at the end of October, prices for
certain grades of lumber have increased significantly to record high levels.
Random Lengths Lumber Composite Prices increased nearly 10 percent for the
week immediately following the allocation announcements and were almost 10
percent higher than the Random Lengths Composite average for the 1996 third
quarter. It is unknown whether lumber prices will remain at the present levels
or will move upward or downward. Due to these lumber market uncertainties
resulting from the recently assigned quota levels, the Company cannot currently
predict with any certainty the impact of these quotas on the Company's results
of operations. Approximately 73 percent of the Company's 1996 lumber capacity
is located in British Columbia, Canada.
The pulp and paper segment incurred a loss of $0.5 million in the third quarter
of 1996 compared to a loss of $0.2 million in the third quarter of 1995.
Year-to-date results reflect losses of $2.6 million and $1.6 million in 1996 and
1995, respectively. In the third quarter of 1996, continued improvements in
tissue offset pulp losses caused by a weak pulp market. Segment revenues of
$53.4 million, or 48 percent of Company sales, were down 17 percent from the
third quarter of 1995. Year-to-date segment revenues of $164.1 million compared
to $191.4 million in the prior year. This year-to-year revenue reduction was due
mainly to lower pulp prices and volume which combined with lower brokered wood
chip sales to more than offset stronger tissue volume and prices.
The Company's pulp business represented 17 percent of third quarter revenues.
Third quarter 1996 pulp pricing was comparable to the second quarter at
depressed end of first quarter levels following the rapid declines which began
in the fourth quarter of 1995. The late 1995, early 1996 price declines followed
a period of continuously improving prices which began in 1994. 1994 prices for
the Company's pulp were 25 percent higher than 1993 and 1995 prices averaged 70
percent higher than those in 1994. The Company's third quarter 1996 prices were
45 percent below the corresponding 1995 period at levels approximating the 1996
second quarter, but were 23 percent lower than the 1996 first quarter prices.
Year-to-date 1996 pulp prices were down 35 percent from those in the first nine
months of 1995. Although the Company's pulp prices have decreased significantly,
the reductions have not been as large as the declines in market pulp due to the
Company's pulp supply agreement with Grays Harbor Paper Company. Sales of pulp
to Grays Harbor represented about 60 percent of the
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<PAGE> 9
Company's year-to-date 1996 pulp sales and 70 percent of third quarter pulp
revenues. Grays Harbor sales were 60 percent of the Company's pulp revenues in
the third quarter and first nine months of 1995. The Company's agreement with
Grays Harbor adjusts pulp prices based on copy and business printing paper
prices which have declined at a slower rate than market pulp. As discussed for
the Company's Wood Products segment, residual wood chip prices declined
dramatically into the second quarter of 1996 and remained at these low levels
during the 1996 third quarter. These chip price reductions have helped somewhat
to offset the impact of the falling pulp sales prices. Approximately 41 percent
of the Company's third quarter 1996 pulp sales was produced from softwood
chips, while 50 percent was produced from sawdust and 9 percent from hardwood
chips. During the third quarter of 1996, the Halsey mill operated at 90 percent
of capacity compared to full capacity operations in the third quarter of 1995.
The below-capacity third quarter 1996 production related mainly to a 9 day
scheduled maintenance shutdown.
The Company's tissue business, which represented 31 percent of 1996 third
quarter revenues, was profitable for the third consecutive quarter compared to
significant losses incurred in the corresponding 1995 period. This improved
profitability reflected higher tissue prices and significantly lower wastepaper
costs combined with the benefit of settling the seven-month Ransom labor
contract strike at the end of 1995. The Ransom hourly employees went on strike
during the second quarter of 1995 which significantly reduced operating
efficiencies and shipment volumes. During the time since the strike settlement,
the Company has been rebuilding business that was lost as a result of the
strike. Third quarter and year-to-date 1996 tissue sales volumes were 50 percent
and 6 percent, respectively, higher than the corresponding 1995 periods due to
the impact of the Ransom labor strike. Tissue pricing began to stabilize during
1994 after several years of decline and, during 1995, the Company benefited from
continuously improving prices throughout the year. First quarter 1996 tissue
prices were essentially flat relative to the fourth quarter of 1995, while
second and third quarter 1996 prices were 2 percent and 5 percent, respectively,
below first quarter levels. Third quarter 1996 tissue prices were 3 percent
higher than the comparable 1995 period. Year-to-date 1996 tissue prices were 18
percent higher than for the first nine months of 1995. The second and third
quarter 1996 price drops relative to the 1996 first quarter reflected the
Company's response to the early second quarter 6 to 8 percent average tissue
price reductions announced by Procter & Gamble and Kimberly-Clark. The Company's
price decreases were not implemented until late in the 1996 second quarter.
During 1995, wastepaper pricing was pushed to record levels by a combination of
strong pulp markets and shortages of certain wastepaper grades caused by the
start-up of new recycled fiber mills in the United States. As a result of these
pressures, wastepaper prices during 1995 doubled over 1994 pricing although by
year-end 1995 wastepaper prices began to decline, consistent with market pulp
prices. This late 1995 decline accelerated through the first quarter into the
early second quarter of 1996 when prices leveled. Third quarter and year-to-date
1996 wastepaper costs were less than half those in the comparable 1995 periods.
During the third quarter of 1996, the Company's tissue business operated at
approximately 95 percent of capacity. This slightly below-capacity third quarter
1996 production reflected below-capacity operations of the Company's Ransom,
Pennsylvania tissue mill which represents 50 percent of the Company's tissue
capacity.
LIQUIDITY AND CAPITAL RESOURCES
During the first nine months of 1996, operations generated cash of $13.0
million. Income before non-cash charges for depreciation and amortization
generated $25.9 million of cash during the first nine months of 1996. Reductions
of accounts payable and accrued liabilities used cash of $11.2 million. These
reductions related mainly to payment of discontinued diaper
8
<PAGE> 10
business liabilities combined with reductions due to payment timing on other
payables and accruals. Payment of income tax obligations, primarily the 1995
Canadian tax liability, used $3.6 million cash. Collections of accounts
receivables related primarily to the discontinued diaper operations generated
cash of $9.9 million in the first nine months of 1996.
On December 11, 1995, the Company entered into a definitive agreement to sell
its disposable diaper business to Paragon Trade Brands, Inc. (Paragon). The sale
of the diaper business was completed on February 8, 1996. During the first
quarter of 1996, the Company received cash related to the sale of $55.3 million
and 387,801 shares of Paragon common stock then valued at $8.2 million. The
Company used the cash received mainly to pay short- and long-term debt
obligations. The Company's investment in Paragon common stock is reflected as
marketable securities in the Consolidated Balance Sheets.
The Company is presently limiting capital spending to those projects required to
sustain existing operations. Capital spending for the first nine months of 1996
was unusually low at $3.9 million and was used for various small,
business-sustaining projects. The Company anticipates that approximately $3
million will be required to complete previously approved projects. It is
anticipated that the capital spending for the remainder of the year will be
financed from internally generated cash and, if necessary, from the Company's
line of credit.
Through the first nine months of 1996, the Company returned $7.6 million to
shareholders in the form of dividends. The Company has reduced its debt levels
by $36.3 million during the first nine months of 1996. In July of 1996, the
Company borrowed $30.0 million on its revolving-credit agreement which it then
paid to Pope & Talbot, Ltd., a wholly-owned Canadian subsidiary, to satisfy a
portion of its intercompany account. Pope & Talbot, Ltd. has invested this $30
million in short-term investments which are reflected as cash and cash
equivalents in the Consolidated Balance Sheet. This $30 million in short-term
investments effectively cannot be used for current operations or debt reduction
as doing so could result in substantial adverse tax consequences. After
considering the additional $30.0 million third quarter borrowing, the Company
has paid down $66.3 million of debt during the first nine months of 1996.
Concurrent with the diaper business sale in February 1996, the Company's amount
available under its long-term revolving credit agreement was reduced from $100
million to $75 million. At September 30, 1996, the Company had $30.0 million
outstanding under this revolving-credit agreement. In the third quarter of 1996,
the Company obtained a $10 million, uncommitted, unsecured short-term line of
credit to facilitate its cash management function. At September 30, 1996, the
Company had $7.0 million outstanding under this short-term line of credit.
FACTORS THAT MAY AFFECT FUTURE RESULTS
Statements in this report or in other Company communications, such as press
releases, may relate to future events or the Company's future performance and
such statements are forward-looking statements. Such forward-looking statements
are based on present information the Company has related to its existing
business circumstances. Investors are cautioned that such forward-looking
statements are subject to an inherent risk that actual results may differ
materially from such forward-looking statements. Factors that may result in such
variances include, but are not limited to, changes in commodity prices and other
economic conditions, actions by competitors, changing weather conditions and
natural phenomena, actions by government authorities, uncertainties associated
with legal proceedings and future decisions by management in response to
changing conditions. Such factors are discussed in this report on Form 10-Q as
well as in the Company's Annual Report on Form 10-K.
9
<PAGE> 11
PART II.
ITEM 6. Exhibits and Reports on Form 8-K
Exhibits
2.1 Asset Purchase Agreement by and among Paragon Trade Brands,
Inc., PTB Acquisition Sub, Inc., Pope & Talbot, Inc. and
Pope & Talbot, Wis., Inc. dated December 11, 1995.
(Incorporated herein by reference to Exhibit 2.1 to the
Company's Current Report on Form 8-K filed February 8,
1996.)
3.1 Certificate of Incorporation, as amended. (Incorporated
herein by reference to Exhibit 3(a) to the Company's Annual
Report on Form 10-K for the year ended December 31, 1992.)
3.2 Bylaws. (Incorporated herein by reference to Exhibit 3(b)
to the Company's Annual Report on Form 10-K for the year
ended December 31, 1992.)
4.1 Indenture, dated June 2, 1993, between the Company and
Chemical Trust Company of California as Trustee with
respect to the Company's 8-3/8% Debentures due 2013.
(Incorporated herein by reference to Exhibit 4.1 to the
Company's registration statement on Form S-3 filed April 6,
1993.)
4.2 Revolving Credit Agreement, dated May 6, 1992, among the
Company and United States National Bank of Oregon; CIBC,
Inc.; ABN AMRO Bank N.V.; Continental Bank N.A.; and
Wachovia Bank of Georgia, National Association.
(Incorporated herein by reference to Exhibit 4 to the
Company's Quarterly Report on Form 10-Q for the quarter
ended June 30, 1992.)
4.3 Rights Agreement, dated as of April 13, 1988, between the
Company and The Bank of California, as rights agent.
(Incorporated herein by reference to Exhibit 4(e) to the
Company's Annual Report on Form 10-K for the year ended
December 31, 1992.)
4.4 Extension Agreement, dated as of June 30, 1994, to the
Revolving Credit Agreement, dated May 6, 1992, among the
Company and United States National Bank of Oregon; CIBC,
Inc.; ABN AMRO Bank N.V.; Continental Bank N.A.; and
Wachovia Bank of Georgia, National Association.
(Incorporated herein by reference to Exhibit 4.6 to the
Company's Annual Report on Form 10-K for the year ended
December 31, 1994.)
4.5 Modification Agreement, dated as of October 31, 1994, to
the Revolving Credit Agreement, dated May 6, 1992, among
the Company and United States National Bank of Oregon;
CIBC, Inc.; ABN AMRO Bank N.V.; Continental Bank N.A.; and
Wachovia Bank of Georgia, National Association.
(Incorporated herein by reference to Exhibit 4.7 to the
Company's Annual Report on Form 10-K for the year ended
December 31, 1994.)
4.6 Modification Agreement, dated as of December 31, 1994, to
the Revolving Credit Agreement, dated May 6, 1992, among
the Company and United States National Bank of Oregon;
CIBC, Inc.; ABN AMRO Bank N.V.; Continental Bank N.A.; and
Wachovia Bank of Georgia, National Association.
(Incorporated herein by reference to Exhibit 4.8 to the
Company's Annual Report on Form 10-K for the year ended
December 31, 1994.)
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4.7 Extension/Modification Agreement, dated as of June 30,
1995, to the Revolving Credit Agreement, dated May 6, 1992,
among the Company and United States National Bank of
Oregon; CIBC, Inc.; ABN AMRO Bank N.V.; Bank of America
Illinois, fka Continental Bank; and Wachovia Bank of
Georgia, National Association. (Incorporated herein by
reference to Exhibit 4.7 to the Company's Quarterly Report
on Form 10-Q for the quarter ended June 30, 1995.)
4.8 Modification Agreement dated as of October 16, 1995, to the
Revolving Credit Agreement, dated May 6, 1992, among the
Company and United States National Bank of Oregon; CIBC,
Inc.; ABN AMRO Bank N.V.; Bank of America Illinois; and
Wachovia Bank of Georgia, National Association.
(Incorporated herein by reference to Exhibit 4.8 to the
Company's Quarterly Report on Form 10-Q for the quarter
ended September 30, 1995.)
4.9 Modification Agreement, dated as of January 22, 1996, to
the Revolving Credit Agreement, dated May 6, 1992, among
the Company and United States National Bank of Oregon; CIBC
Inc.; ABN AMRO Bank N.V.; Bank of America Illinois; and
Wachovia Bank of Georgia, National Association.
(Incorporated herein by reference to Exhibit 4.1 to the
Company's Current Report on Form 8-K filed February 8,
1996.)
10.1 Executive Compensation Plans and Arrangements
-----------------------------------------------------
10.1.1 Stock Option and Appreciation Plan. (Incorporated herein by
reference to Exhibit 10(a) to the Company's Annual Report
on Form 10-K for the year ended December 31, 1992.)
10.1.2 Executive Incentive Plan. (Incorporated herein by reference
to Exhibit 10(b) to the Company's Annual Report on Form
10-K for the year ended December 31, 1992.)
10.1.3 Restricted Stock Bonus Plan. (Incorporated herein by
reference to Exhibit 10(c) to the Company's Annual Report
on Form 10-K for the year ended December 31, 1992.)
10.1.4 Deferral Election Plan. (Incorporated herein by reference
to Exhibit 10(d) to the Company's Annual Report on Form
10-K for the year ended December 31, 1992.)
10.1.5 Supplemental Executive Retirement Income Plan.
(Incorporated herein by reference to Exhibit 10(e) to the
Company's Annual Report on Form 10-K for the year ended
December 31, 1990.)
10.1.6 Form of Severance Pay Agreement among the Company and
certain of its executive officers. (Incorporated herein by
reference to Exhibit 10(f) to the Company's Annual Report
on Form 10-K for the year ended December 31, 1990.)
10.1.7 1996 Non-Employee Director Stock Option Plan. (Incorporated
herein by reference to Exhibit 10.1.7 to the Company's
Quarterly Report on Form 10-Q for the quarter ended March
31, 1996.)
10.2 Lease agreement between the Company and Pope Resources,
dated December 20, 1985, for Port Gamble, Washington
sawmill site. (Incorporated herein by reference to Exhibit
10(g) to the Company's Annual Report on Form 10-K for the
year ended December 31, 1990.)
11
<PAGE> 13
10.3 Lease agreement between the Company and Shenandoah
Development Group, Ltd., dated March 14, 1988, for Atlanta
diaper mill site as amended September 1, 1988 and August
30, 1989. (Incorporated herein by reference to Exhibit
10(h) to the Company's Annual Report on Form 10-K for the
year ended December 31, 1990.)
10.4 Lease agreement between the Company and Shenandoah
Development Group, Ltd., dated July 31, 1989, for
additional facilities at Atlanta diaper mill as amended
August 30, 1989 and February 1990. (Incorporated herein by
reference to Exhibit 10(i) to the Company's Annual Report
on Form 10-K for the year ended December 31, 1990.)
10.5 Grays Harbor Paper L.P. Amended and Restated Pulp Sales
Supply Contract, dated September 28, 1994 (with certain
confidential information deleted). (Incorporated herein by
reference to Exhibit 10(j) to the Company's Quarterly
Report on Form 10-Q for the quarter ended September 30,
1994.)
10.6 Province of British Columbia Tree Farm License No. 8, dated
March 1, 1995.
10.7 Province of British Columbia Tree Farm License No. 23,
dated March 1, 1995.
10.8 Province of British Columbia Forest License A18969, dated
December 1, 1993.
11.1 Statement regarding computation of per share earnings.
27.1 Financial Data Schedule.
The undersigned registrant hereby undertakes to file with the
Commission a copy of any agreement not filed under exhibit item (4)
above on the basis of the exemption set forth in the Commission's
rules and regulations.
Reports on Form 8-K
No reports on Form 8-K were filed during the three months ended
September 30, 1996.
12
<PAGE> 14
POPE & TALBOT, INC.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
POPE & TALBOT, INC.
-----------------------------------------
Registrant
Date: November 13, 1996 /s/ C. Lamadrid
----------------------------------
By: C. Lamadrid
Senior Vice President and
Chief Financial Officer
<PAGE> 15
Exhibit No. Description
- ----------- -----------
10.6 Province of British Columbia Tree Farm License No. 8,
dated March 1, 1995.
10.7 Province of British Columbia Tree Farm License No. 23,
dated March 1, 1995.
10.8 Province of British Columbia Forest License A18969,
dated December 1, 1993.
11.1 Statement regarding computation of per share earnings.
<PAGE> 1
Exhibit 10.6
PROVINCE OF BRITISH COLUMBIA
TREE FARM LICENCE NO. 8
THIS LICENCE, dated March 1, 1995
BETWEEN:
THE MINISTER OF FORESTS, on behalf of
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH COLUMBIA,
(the "Minister")
AND: POPE AND TALBOT LTD.
P.O. BOX 39
GRAND FORKS, BRITISH COLUMBIA
V0H 1H0
(the "Licensee")
WHEREAS
A. Under Section 29 of the Forest Act, this Licence replaces Tree Farm
Licence No. 8, dated January 1, 1980.
B. Under the Forest Amendment Act, 1988, the portion of the allowable
annual cut attributable to Schedule B Land, available to the Licensee under Tree
Farm Licence No. 8, was reduced by 7 250 m3.
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<PAGE> 2
THE PARTIES agree as follows:
1.00 GRANT OF RIGHTS AND TERM
1.01 Subject to this Licence and the Forest Act, the Minister
grants the Licensee
(a) the exclusive right during the term of this Licence
to harvest from
(i) Schedule B Land, and
(ii) Schedule A Land subject to a timber licence,
timber of the types specified in paragraph 1.02 from
the types of terrain specified in paragraph 1.03,
(b) the right to manage
(i) Schedule B Land, and
(ii) Schedule A Land subject to a timber licence,
according to the management plan and development
plan in effect under this Licence, and
(c) the right to enter and use
(i) Schedule B Land, and
(ii) Schedule A Land subject to a timber licence,
for the purpose of exercising a right or fulfilling
an obligation under this Licence.
1.02 The following types of timber are specified for the purposes
of paragraph 1.01:
(a) on Schedule A Land subject to a timber licence, all
merchantable timber; and
(b) on Schedule B Land, all types of timber other than
deciduous types.
1.03 The following types of terrain are specified for the purposes
of paragraph 1.01:
(a) on Schedule A Land subject to a timber licence, all
terrain containing merchantable timber; and
(b) on Schedule B Land, all types of terrain.
1.04 The Licensee will not harvest timber from the Licence Area
except under and in accordance with a cutting permit, road
permit, free use permit issued to the Licensee, or special use
permit.
1.05 Subject to paragraph 1.06, the Licensee will not occupy
Schedule B Land or Schedule A Land subject to a timber
licence, except under and in accordance with a cutting permit,
road permit, or special use permit authorizing such use or
occupation.
1.06 Paragraph 1.05 does not apply to temporary occupation for the
purpose of
(a) carrying out basic or incremental silviculture,
(b) collecting inventory information,
(c) doing engineering layouts and surveys,
(d) carrying out protection activities, and
(e) fulfilling other obligations of the Licensee under
or in association with this Licence.
1.07 Each year during the term of this Licence, the Regional
Manager or District Manager may dispose of the following
volumes of timber of a type specified in paragraph 1.02 from a
type of terrain specified in paragraph 1.03, provided the
timber is within areas of Schedule B Land agreed to under
paragraph 1.10 or specified under paragraph 1.11:
(a) subject to paragraph 1.15, 7 250 m3 of the allowable
annual cut, under non-replaceable timber sale
licences; and
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<PAGE> 3
(b) a volume of timber not exceeding one half of one
percent (0.5%) of the portion of the allowable annual
cut the Chief Forester determines is attributable to
Schedule B Land, under free use permits.
1.08 In addition to any timber disposed of under paragraph 1.07,
each year during the term of this Licence, the Regional
Manager or District Manager may dispose of timber of a type
specified in paragraph 1.02 from a type of terrain specified
in paragraph 1.03, under timber sale licences issued pursuant
to a pulpwood agreement, provided
(a) the timber is
(i) of the type referred to in Section 34(1)(b) of
the Forest Act,
(ii) within a pulpwood area designated by the
Minister, and
(iii) within areas of Schedule B Land agreed to under
paragraph 1.10 or specified under paragraph 1.
11, and
(b) the volume of timber disposed of does not exceed an
amount equal to the portion of the allowable annual
cut which the Chief Forester, having regard to the
factors and information considered in his or her most
recent determination of the allowable annual cut,
determines is attributable to timber of the type
referred to in clause (a)(i).
1.09 Subject to paragraph 1.17, in addition to any timber disposed
of under paragraph 1.07 and 1.08, the Regional Manager or
District Manager may dispose of any timber in the Licence Area
that
(a) is not of a type specified in paragraph 1.02, or
(b) is not from a type of terrain specified in paragraph
1.03,
provided the timber is within areas of Schedule B Land agreed
to under paragraph 1.10, or specified under paragraph 1.11.
1.10 Subject to paragraph 1.11, the District Manager and the
Licensee will agree upon areas of Schedule B Land for the
purposes of paragraphs 1.07, 1.08, 1.09 and 1.16, having
regard to
(a) the type and quality of timber on the area of
Schedule B Land under consideration compared to the
Schedule B Land as a whole,
(b) the type of terrain on the area of Schedule B Land
under consideration compared to the Schedule B Land
as a whole,
(c) in the case of paragraph 1.08, the type of timber
referred to in Section 34(1)(b) of the Forest Act,
(d) in the case of paragraph 1.16, the nature of the
Licensee's failure to comply with the management
plan,
(e) the management plan and development plan in effect
under this Licence,
(f) any potential interference with the operations of the
Licensee under this Licence, and
(g) use of the Licence Area for purposes other than
timber production, including use of the Licence Area
by
(i) trappers, guide outfitters, range tenure
holders, and other licensed resource users,
and
(ii) aboriginal people carrying out aboriginal
activities.
1.11 If under paragraph 1.10 the District Manager and the Licensee
are unable to agree upon areas of Schedule B Land for the
purposes of paragraph 1.07, 1.08, 1.09 or 1.16, the District
Manager or the Licensee may refer the matter to the Regional
Manager, in which case, the Regional Manager, subject to
paragraph 1.14, and having regard to
(a) the factors referred to in paragraph 1.10, and
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<PAGE> 4
(b) the recommendations of the District Manager and the
Licensee,
will specify areas for these purposes.
1.12 Subject to paragraphs 1.13 and 1.14, the Minister in a notice
given to the Licensee may delete an area from Schedule B Land
to enable the Regional Manager or District Manager to issue a
woodlot licence over the area, if the Chief Forester
determines that the portion of the allowable annual cut
attributable to the area does not exceed the volume of timber
referred to in subparagraph 1.07 (a), having regard to the
factors and information considered by the Chief Forester in
his or her most recent determination of the allowable annual
cut.
1.13 Before deleting an area under paragraph 1.12, the Minister
will consult the Licensee and consider any recommendations
made by the Licensee.
1.14 The Regional Manager will only specify an area under paragraph
1.11, and the Minister will only delete an area under
paragraph 1.12, where the Regional Manager or the Minister, as
the case may be, is satisfied that specifying or deleting the
area will not
(a) compromise the management plan and development plan
in effect under this Licence, or
(b) unreasonably interfere with the Licensee's operations
under this Licence.
1.15 Where the Minister deletes an area under paragraph 1.12,
(a) the volume of timber referred to in subparagraph 1.07
(a), and
(b) the allowable annual cut,
is deemed to be reduced by an amount equal to the portion of
the allowable annual cut that the Chief Forester determines is
attributable to the deleted area, having regard to the factors
and information considered by the Chief Forester in his or her
most recent determination of the allowable annual cut.
1.16 If
(a) a management plan referred to in paragraph 2.01 or
approved under paragraph 2.27 provides that part of
the allowable annual cut is to be harvested from a
specified part of the Licence Area or from a
specified type of timber or terrain, and the Licensee
fails to comply with that provision, and
(b) as a consequence, the Chief Forester, under Section
55.5 of the Forest Act, reduces the allowable annual
cut available to the Licensee,
then, in addition to any timber disposed of under paragraphs
1.07, 1.08 and 1.09, the Regional Manager or the District
Manager may dispose of a volume of timber, from areas of
Schedule B Land agreed to under paragraph 1.10 or specified
under paragraph 1.11, up to an amount equal to the amount by
which the Chief Forester reduces the allowable annual cut
under Section 55.5 of the Forest Act multiplied by the number
of years the reduction remains in effect.
1.17 The Licensee may harvest timber in the Licence Area that
(a) is not of a type specified in paragraph 1.02, or
(b) is not from a type of terrain specified in paragraph
1.03,
provided the Licensee is authorized to do so under a cutting
permit issued under Part 5.00.
1.18 If an area of Schedule A Land is
(a) subject to a timber licence that expires, or
(b) deleted from a timber licence,
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<PAGE> 5
then the area is deemed to be deleted from Schedule A Land
and added to Schedule B Land.
1.19 The term of this Licence is 25 years, beginning March 1, 1995.
2.00 MANAGEMENT PLANS
2.01 A management plan
(a) approved under the tree farm licence replaced by this
Licence, and
(b) still in effect on the date immediately preceding the
date on which that tree farm licence expires,
is deemed for the remainder of the term of the management
plan to be the management plan in effect under this Licence.
2.02 If there is no approved management plan in effect under the
tree farm licence replaced by this Licence on the date
immediately preceding the date on which that tree farm licence
expires, then solely for the purposes of
(a) inviting comments under subparagraph 2.05(a) and
providing an assessment under subparagraph 2.08(a),
and
(b) determining the deadlines for
(i) inviting comments under subparagraph 2.05
(a),
(ii) submitting a review strategy under
subparagraph 2.05(b),
(iii) providing an assessment under clause
2.08(a)(i),
(iv) submitting a summary under subparagraph
2.08(b),
(v) submitting a Statement of Management
Objectives, Options and Procedures under
paragraph 2.09,
(vi) referring a draft management plan and
inviting comments under paragraph 2.24, and
(vii) submitting a proposed management plan under
paragraph 2.26,
the parties will proceed as if the management plan which was
last in effect under that tree farm licence is the management
plan in effect under this Licence and, subject to paragraph
2.04, is due to expire 28 months after the date referred to in
paragraph 1.19.
2.03 If the management plan deemed under paragraph 2.01 to be the
management plan in effect under this Licence is due to expire
less than 28 months after the date referred to in paragraph
1.19, then solely for the purpose of determining the deadlines
for
(a) inviting comments under subparagraph 2.05(a),
(b) submitting a review strategy under subparagraph 2.05
(b), if applicable,
(c) providing an assessment under clause 2.08(a)(i),
(d) submitting a summary under subparagraph 2.08(b),
(e) submitting a Statement of Management Objectives,
Options and Procedures under paragraph 2.09,
(f) referring a draft management plan and inviting
comments under paragraph 2.24, and
(g) submitting a proposed management plan under
paragraph 2.26,
the parties will proceed as if, subject to paragraph 2.04, the
management plan in effect under this Licence is due to expire
28 months after the date referred to in paragraph 1.19.
2.04 If
(a) either
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<PAGE> 6
(i) there is no approved management plan in
effect under the tree farm licence replaced
by this Licence on the date immediately
preceding the date on which that tree farm
licence expires, or
(ii) the management plan deemed under paragraph
2.01 to be the management plan in effect
under this Licence is due to expire less
than 28 months after the date referred to in
paragraph 1.19, and
(b) the Chief Forester is satisfied that a requirement or
obligation referred to in this Part has been met or
fulfilled under the tree farm licence replaced by
this Licence,
then the Chief Forester, in a notice given to the Licensee,
may
(c) specify the requirement or obligation that has been
met or fulfilled and deem that requirement or
obligation to have been met or fulfilled under this
Licence, and
(d) if a period of less than 28 months is sufficient for
the purpose of establishing a deadline referred to in
subparagraph 2.02(b) or paragraph 2.03, specify a
period less than 28 months which is sufficient for
this purpose.
2.05 Not less than 28 months prior to the date on which the
management plan in effect under this Licence is due to expire,
(a) the Licensee will
(i) publish at least twice within a period of
two consecutive weeks in a newspaper
acceptable to the Regional Manager, an
advertisement inviting comments regarding
(A) the management plan in effect under
this Licence, and
(B) the Licensee's performance in respect
of that management plan, and
(ii) make a copy of the management plan in effect
under this Licence available for review by
interested persons
(A) during normal business hours, and
(B) at the Licensee's place of business in
the vicinity of the Licence Area or,
if the Licensee so chooses, at another
location which is convenient to the
public and acceptable to the Regional
Manager,
for a period of one month, or longer if the
Licensee so chooses, beginning at least one
week after the last publication of the
advertisement referred to in clause (i), and
(b) if there is no management plan in effect under this
Licence, or if the management plan in effect under
this Licence does not include a review strategy for
(i) the Statement of Management Objectives,
Options and Procedures referred to in
paragraph 2.09,
(ii) the draft management plan referred to in
paragraph 2.24,
(iii) the statement of objectives referred to in
paragraph 3.01, or
(iv) the statement of proposals referred to in
paragraph 3.02,
the Licensee will submit to the Regional Manager a
review strategy complying with the requirements of
paragraph 6.01 for the Statement of Management
Objectives, Options and Procedures, the draft
management plan, the statement of objectives referred
to in paragraph 3.01, and the statement of proposals
referred to in paragraph 3.02, as applicable.
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<PAGE> 7
2.06 The Regional Manager, within two months after the date on
which the Regional Manager receives a review strategy
submitted under subparagraph 2.05(b) or 2.07(b), will in a
notice given to the Licensee approve the review strategy,
subject to such conditions as the Regional Manager considers
necessary or appropriate, if the Regional Manager is satisfied
that the review strategy meets the requirements of paragraph
6.01.
2.07 Where the Regional Manager does not approve a review strategy
under paragraph 2.06,
(a) the Regional Manager, within two months after the
date on which the Regional Manager receives the
review strategy, will specify in a notice given to
the Licensee why the Regional Manager has not
approved the review strategy, and
(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will submit a new or revised review
strategy to the Regional Manager.
2.08 Not less than 26 months prior to the date on which the
management plan in effect under this Licence is due to expire,
(a) the Regional Manager will provide the Licensee with
(i) an assessment of
(A) the management plan in effect under
this Licence, and
(B) the Licensee's performance in
respect of that management plan, and
(ii) a list of
(A) guidelines,
(B) land and resource management plans,
and
(C) local resource use plans,
currently in effect, and
(b) the Licensee will submit to the Regional Manager a
summary of the comments received by the Licensee in
complying with subparagraph 2.05(a).
2.09 The Licensee, not less than 22 months prior to the date on
which the management plan in effect under this Licence is due
to expire, will submit to the Regional Manager
(a) a Statement of Management Objectives, Options and
Procedures which has been referred to resource
agencies and made available for comment in accordance
with the review strategy approved
(i) in the management plan in effect under this
Licence, or
(ii) under paragraph 2.06,
as the case may be, and
(b) a summary of
(i) all comments received by the Licensee in
complying with the review strategy referred
to in subparagraph (a), and
(ii) the modifications, if any, made to the
Statement of Management Objectives, Options
and Procedures, prior to its submission to
the Regional Manager, in response to the
comments referred to in clause (i).
2.10 A Statement of Management Objectives, Options and Procedures
submitted under paragraph 2.09 or subparagraph 2.12(b) must
(a) be prepared by a professional forester in accordance
with the applicable manual in effect four months
prior to the deadline for submitting the Statement of
Management Objectives, Options and Procedures under
paragraph 2.09 or subparagraph 2.12(b), as the case
may be,
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<PAGE> 8
(b) summarize the commitments which
(i) were made by the Licensee
(A) in the application on which the
award of the tree farm licence
replaced by this Licence or any
predecessor to that tree farm
licence was based,
(B) in accepting the offer of the tree
farm licence replaced by this
Licence or any predecessor to that
tree farm licence, or
(C) as a result of a request for the
Minister's consent for the purposes
of Section 50 of the Forest Act, and
(ii) remain in effect at the time the Statement
of Management Objectives, Options and
Procedures is submitted,
(c) identify the inadequacies, if any, in the information
to be included in the inventories referred to in
subparagraph 2.25(d),
(d) propose management objectives for the Licence Area,
and identify management options, regarding
(i) utilization of the timber resources,
including harvesting methods and utilization
standards suitable to the types of timber
and terrain specified in paragraphs 1.02 and
1.03,
(ii) conservation of the non-timber values and
resources, including visual quality,
biodiversity, soils, water, recreation
resources, cultural heritage resources,
range land, and wildlife and fish habitats,
(iii) integration of harvesting activities with
use of the Licence Area for purposes other
than timber production, including use of the
Licence Area by
(A) trappers, guide outfitters, range
tenure holders, and other licensed
resource users, and
(B) aboriginal people carrying out
aboriginal activities,
(iv) forest fire prevention and suppression,
prescribed fire, and fuel management,
(v) forest health, including disease and
pest management,
(vi) road construction, maintenance and
deactivation,
(vii) basic silviculture and, if applicable,
incremental silviculture, and
(viii) any issues identified
(A) by the Licensee,
(B) by the Regional Manager in the
assessment referred to in clause
2.08(a)(i), or
(C) in the comments referred to in
subparagraph 2.08(b),
which are consistent with the guidelines, land and
resource management plans, and local resource use
plans referred to in clause 2.08(a)(ii), and the
commitments referred to in subparagraph (b),
(e) identify inadequacies referred to in subparagraph (c)
and issues referred to in clause (d)(viii) which will
require further study or analysis, and indicate what,
if any, studies or analyses the Licensee will carry
out,
(f) identify issues referred to in clause (d)(viii) which
will be addressed in the management objectives and
strategies in the draft management plan referred to
in paragraph 2.24 and proposed management plan
referred to in paragraph 2.26, and
(g) identify management options referred to in
subparagraph (d) which the Licensee proposes to
assess in the timber supply analysis.
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2.11 The Regional Manager, within three months after the date on
which the Regional Manager receives a Statement of Management
Objectives, Options and Procedures submitted under paragraph
2.09, or two months after the date on which the Regional
Manager receives a Statement of Management Objectives, Options
and Procedures submitted under subparagraph 2.12(b), will in a
notice given to the Licensee accept the Statement of
Management Objectives, Options and Procedures, subject to such
conditions as the Regional Manager considers necessary or
appropriate, if
(a) the Statement of Management Objectives, Options and
Procedures meets the requirements of paragraph 2.10,
and
(b) the Regional Manager is satisfied that the Licensee
has
(i) adequately addressed the inadequacies
referred to in subparagraph 2.10 (c),
the issues referred to in clause 2.10(d)
(viii), and the comments referred to in
clause 2.09(b)(i), and
(ii) selected appropriate management options for
assessment in the timber supply analysis.
2.12 Where the Regional Manager does not accept a Statement of
Management Objectives, Options and Procedures under paragraph
2.11,
(a) the Regional Manager, within three months after the
date on which the Regional Manager receives a
Statement of Management Objectives, Options and
Procedures submitted under paragraph 2.09, or two
months after the date on which the Regional Manager
receives a Statement of Management Objectives,
Options and Procedures submitted under subparagraph
2.12(b), will specify in a notice given to the
Licensee why the Regional Manager has not accepted
the Statement of Management Objectives, Options and
Procedures, and
(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will submit a new or revised
Statement of Management Objectives, Options and
Procedures to the Regional Manager.
2.13 Where the Regional Manager accepts a Statement of Management
Objectives, Options and Procedures under paragraph 2.11, the
Licensee, within three months after the date on which the
Statement of Management Objectives, Options and Procedures is
accepted, will submit a Timber Supply Analysis Information
Package to the Timber Supply Forester.
2.14 A Timber Supply Analysis Information Package submitted under
paragraph 2.13 must
(a) include the information required in the applicable
manual in effect six months prior to the deadline for
submitting the Timber Supply Analysis Information
Package,
(b) identify assumptions the Licensee proposes to
incorporate into the timber supply analysis referred
to in subparagraph 2.17(a) which, subject to
paragraph 2.33, are consistent with
(i) the management objectives proposed in the
Statement of Management Objectives, Options
and Procedures accepted under paragraph
2.11, and
(ii) the guidelines, land and resource management
plans and local resource use plans referred
to in clause 2.08(a)(ii),
(c) without restricting the generality of subparagraph
(b), identify assumptions the Licensee proposes to
incorporate into the timber supply analysis referred
to in subparagraph 2.17(a) regarding
(i) the inventory of timber and non-timber
resources in the Licence Area,
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(ii) growth and yield,
(iii) regeneration delays,
(iv) silviculture treatments,
(v) integrated resource management constraints,
(vi) harvesting methods and utilization
standards, and
(vii) the operable land base,
(d) describe the methodology, including the computer
model, if any, that the Licensee proposes to use in
the timber supply analysis, including a description
of the extent to which the assumptions referred to in
subparagraphs (b) and (c) are reflected in the
methodology,
(e) include information which supports the assumptions
referred to in subparagraphs (b),(c) and (d),
(f) describe how the Licensee proposes to address in the
timber supply analysis any inadequacies referred to
in subparagraph 2.10(c), and
(g) include any other information readily available to
the Licensee, which
(i) the Licensee, or
(ii) the Timber Supply Forester, in a notice
given to the Licensee within one month
after the date on which the Licensee is
given the notice accepting the Statement of
Management Objectives, Options and
Procedures under paragraph 2.11, considers
relevant to an assessment of the impact on
the timber supply of the management options
referred to subparagraph 2.10(g).
2.15 The Timber Supply Forester, within three months after the date
on which the Timber Supply Forester receives the Timber Supply
Analysis Information Package submitted under paragraph 2.13,
or two months after the date on which the Timber Supply
Forester receives the information or proposals submitted under
subparagraph 2.16(b), will in a notice given to the Licensee
accept the assumptions and the methodology referred to in
paragraph 2.14 and, if applicable, subparagraph 2.16(b) for
use in the timber supply analysis, subject to such conditions
as the Timber Supply Forester considers necessary or
appropriate, if
(a) the requirements of paragraph 2.14 and, if
applicable, subparagraph 2.16(b) have been met, and
(b) the Timber Supply Forester is satisfied with the
information provided in support of the assumptions
and methodology.
2.16 Where the Timber Supply Forester does not accept both the
assumptions and the methodology under paragraph 2.15,
(a) the Timber Supply Forester, within three months after
the date on which the Timber Supply Forester receives
the Timber Supply Analysis Information Package
submitted under paragraph 2.13, or two months after
the date on which the Timber Supply Forester receives
the information or proposals submitted under
subparagraph 2.16(b), will specify in a notice given
to the Licensee why the Timber Supply Forester has
not accepted the assumptions, the methodology or
both, and
(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will
(i) propose new or revised assumptions,
(ii) propose a new or revised methodology, and
(iii) submit further information in support of the
assumptions, the methodology or both,
as required by the Timber Supply Forester.
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2.17 Where the Timber Supply Forester accepts the assumptions and
the methodology under paragraph 2.15, the Licensee, within
three months after the date on which the assumptions and the
methodology are accepted, will submit
(a) a timber supply analysis to the Timber Supply
Forester, and
(b) a 20-year plan to the District Manager.
2.18 A timber supply analysis submitted under subparagraph 2.17(a)
or 2.22(b) must
(a) assess the impact of the management options referred
to in subparagraph 2.10(g) on the timber supply, and
(b) subject to paragraph 2.33,
(i) be based on the assumptions, and
(ii) use the methodology,
accepted by the Timber Supply Forester under
paragraph 2.15.
2.19 A 20-year plan submitted under subparagraph 2.17(b) or 2.23(b)
must
(a) identify
(i) the net operable land base,
(ii) harvested areas,
(iii) existing and proposed road access within the
net operable landbase, and
(iv) areas subject to specific integrated
resource management constraints,
(b) categorize areas within the operable land base
referred to in clause (a)(i) by
(i) the harvesting methods suitable to the
terrain, and
(ii) the type and, where the information is
available to the Licensee, quality of
timber, and
(c) in support of the timber supply analysis, set out a
sequence of cut blocks in 5 year increments over a
period of 20 years, or longer if the Licensee so
chooses, which, subject to paragraph 2.33, is
(i) based on a management option selected by the
Licensee from the management options
referred to in subparagraph 2.18(a), and
(ii) consistent with
(A) the management objectives proposed
in the Statement of Management
Objectives, Options and Procedures
accepted under paragraph 2.11, and
(B) the guidelines, land and resource
management plans and local resource
use plans referred to in clause
2.08(a)(ii).
2.20 The Timber Supply Forester, within three months after the date
on which the Timber Supply Forester receives a timber supply
analysis submitted under subparagraph 2.17(a), or two months
after the date the Timber Supply Forester receives a timber
supply analysis submitted under subparagraph 2.22(b), will
(a) in a notice given to the Licensee accept the timber
supply analysis, subject to such conditions as the
Timber Supply Forester considers necessary or
appropriate, if the timber supply analysis meets the
requirements of paragraph 2.18, and
(b) where the Timber Supply Forester accepts the timber
supply analysis under subparagraph (a), provide the
Licensee with an assessment of the strengths and
weakness of the timber supply analysis.
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2.21 The District Manager, within three months after the date on
which the District Manager receives a 20-year plan submitted
under subparagraph 2.17(b), or two months after the date on
which the District Manager receives a 20-year plan submitted
under 2.23(b), will
(a) in a notice given to the Licensee accept the 20-year
plan, subject to such conditions as the District
Manager considers necessary or appropriate, if the
20-year plan meets the requirements of paragraph
2.19, and
(b) where the District Manager accepts the 20-year plan
under subparagraph (a), provide the Licensee with an
assessment of the strengths and weakness of the
20-year plan.
2.22 Where the Timber Supply Forester does not accept a timber
supply analysis under paragraph 2.20,
(a) the Timber Supply Forester, within three months after
the date on which the Timber Supply Forester receives
a timber supply analysis submitted under subparagraph
2.17(a), or two months after the date on which the
Timber Supply Forester receives a timber supply
analysis submitted under subparagraph 2.22(b), will
specify in a notice given to the Licensee why the
Timber Supply Forester has not accepted the timber
supply analysis, and
(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will submit a new or revised timber
supply analysis to the Timber Supply Forester.
2.23 Where the District Manager does not accept a 20-year plan
under paragraph 2.21,
(a) the District Manager, within three months after the
date on which the District Manager receives a 20-year
plan submitted under subparagraph 2.17(b), or two
months after the date on which the District Manager
receives a 20-year plan submitted under 2.23(b), will
specify in a notice given to the Licensee why the
District Manager has not accepted the 20-year plan,
and
(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will submit a new or revised
20-year plan to the District Manager.
2.24 Not less than six months prior to the date on which the
management plan in effect under this Licence is due to expire,
the Licensee will
(a) refer a draft management plan to the Regional Manager
for comment, and
(b) at the same time, refer the draft management plan
referred to in subparagraph (a) to resource agencies
and make it available for comment in accordance with
the review strategy approved
(i) in the management plan in effect under this
Licence, or
(ii) under paragraph 2.06,
as the case may be.
2.25 A draft management plan referred to in paragraph 2.24 or
subparagraph 2.37(a) and a proposed management plan submitted
by the Licensee under paragraph 2.26, subparagraph 2.30(b), or
subparagraph 2.37(b) must
(a) be prepared by a professional forester in accordance
with the applicable manual in effect four months
prior to the deadline for submitting the draft
management plan under paragraph 2.24 or subparagraph
2.37(a), as the case may be,
(b) be signed and sealed by the professional forester who
prepared it, and signed by the Licensee or an
authorized signatory of the Licensee,
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(c) be consistent with this Licence and, subject to
paragraph 2.33, the Statement of Management
Objectives, Options and Procedures accepted under
paragraph 2.11,
(d) include inventories, meeting the standards and
presented in the format set or approved in the
applicable manual in effect six months prior to the
deadline for submitting the Timber Supply Analysis
Information Package, of
(i) the forest and recreation resources in the
Licence Area, based on information
collected for this purpose by the Licensee,
including information relating to visual
quality objectives, sensitive soils,
recreation sites, and the type of timber and
terrain, and
(ii) the fisheries, wildlife, range and cultural
heritage resources of the Licence Area,
based on the best information readily
available to the Licensee,
(e) include proposals for updating the inventories
referred to in subparagraph (d) and, if applicable,
addressing inadequacies in the inventory information,
(f) include proposals for
(i) developing timber harvesting operations on
the Licence Area,
(ii) protecting the forest in the Licence Area
from damage by fire, pests, wind and
disease, and
(iii) carrying out
(A) basic silviculture required under
the Forest Act, and
(B) such incremental silviculture as the
Licensee considers desirable,
(g) specify measures to be taken, specifications to be
followed, and standards to be met by the Licensee in
the Licence Area to provide for
(i) utilization of the timber resources,
including harvesting methods and utilization
standards suitable to the types of timber
and terrain specified in paragraphs 1.02 and
1.03,
(ii) conservation of the non-timber values and
resources, including visual quality,
biodiversity, soils, water, recreation
resources, cultural heritage resources,
range land, and wildlife and fish habitats,
(iii) integration of harvesting activities with
use of the Licence Area for purposes other
than timber production, including use of the
Licence Area by
(A) trappers, guide outfitters, range
tenure holders, and other licensed
resource users, and
(B) aboriginal people carrying out
aboriginal activities,
(iv) forest fire prevention and suppression,
prescribed fire, and fuel management,
(v) forest health, including disease and
pest management,
(vi) road construction, maintenance and
deactivation,
(vii) basic silviculture and, if applicable,
incremental silviculture, and
(viii) anything else relating to the management,
development and use of the Licence Area as
the Chief Forester requires,
which, subject to paragraph 2.33, meet or, if the
Licensee so chooses, exceed the applicable measures,
standards or specifications contained or reflected
in the guidelines, land and resource management
plans, and local resource use plans referred to in
clause 2.08(a)(ii),
(h) specify measures to be taken by the Licensee to
identify and consult with trappers, guide outfitters,
range tenure holders, and other licensed resource
users operating in the Licence Area,
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(i) specify measures to be taken by the Licensee to
identify and consult with aboriginal people who are
or who may be carrying out aboriginal activities in
the Licence Area,
(j) include
(i) the Statement of Management Objectives,
Options and Procedures accepted under
paragraph 2.11, including revisions, if any,
required under paragraph 2.33,
(ii) either
(A) the timber supply analysis accepted
under paragraph 2.20, together
with the assessment referred to in
subparagraph 2.20(b), or
(B) where no timber supply analysis has
been accepted, a draft timber supply
analysis prefaced with a statement
to the effect that the draft timber
supply analysis has not been
submitted under subparagraph 2.17(a)
or accepted under paragraph 2.20, as
applicable, and
(iii) either
(A) the 20-year plan accepted under
paragraph 2.21, together with the
assessment referred to in
subparagraph 2.21(b), or
(B) where no 20-year plan has been
accepted, a draft 20-year plan
prefaced with a statement to the
effect that the draft 20-year plan
has been not submitted under
subparagraph 2.17(b) or accepted
under paragraph 2.21, as applicable,
(k) assess the impact the draft management plan or
proposed management plan, as the case may be, will
have on factors such as harvest levels, economic
opportunies, the number of persons employed by the
Licensee and contractors of the Licensee, and the
conservation of non-timber values,
(l) highlight the key similarities and differences
between the draft management plan or the proposed
management plan, as the case may be, and the
management plan in effect or last in effect under
this Licence, and in a summary form compare
(i) the impact, if any, that implementation of
the management plan in effect or last in
effect under this Licence had, and
(ii) the impact, if any, that the Licensee
anticipates implementation of the draft
management plan or the proposed management
plan, as the case may be, will have
on factors such as those referred to in
subparagraph (k),
(m) propose a review strategy, complying with the
requirements of paragraphs 6.01 and 6.03, for
(i) the next Statement of Management Objectives,
Options and Procedures to be submitted under
paragraph 2.09,
(ii) the next draft management plan to be
submitted under paragraph 2.24,
(iii) the next statement of objectives referred
to in paragraph 3.01,
(iv) the next statement of proposals referred to
in paragraph 3.02, and
(v) proposed development plans to be submitted
under Part 4.00,
(n) if applicable, provide that part of the allowable
annual cut will be harvested from a specified part of
the Licence Area, or from a specified type of timber
or terrain,
(o) include such other information on the development,
management and use of the Licence Area as the Chief
Forester requires, and
(p) if required in the manual referred to in subparagraph
(a), provide some or all of the information referred
to in this paragraph in the form of maps meeting the
requirements of the manual.
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2.26 The Licensee, not less than three months prior to the date on
which the management plan in effect under this Licence is due
to expire, will submit to the Chief Forester
(a) a proposed management plan which is based on the
draft management plan referred to in paragraph 2.24,
and
(b) a summary of
(i) all comments
(A) provided by the Regional Manager
within two months of date on which
the Regional Manager receives a
draft management plan referred to
the Regional Manager in accordance
with the requirements of
subparagraph 2.24(a), and
(B) received by the Licensee in
complying with the requirements of
subparagraph 2.24(b), and
(ii) the differences, if any, between the draft
management plan and the proposed management
plan, including differences resulting from
modifications made in response to the
comments referred to in clause (i).
2.27 Subject to paragraphs 2.28 and 2.29, the Chief Forester,
within three months after the date on which the Chief Forester
receives a proposed management plan submitted under paragraph
2.26, subparagraph 2.30(b) or subparagraph 2.37(b), will in a
notice given to the Licensee approve the proposed management
plan, subject to such conditions as the Chief Forester
considers necessary or appropriate, if
(a) the Chief Forester is satisfied that the proposed
management plan
(i) meets the requirements of paragraph 2.25 and
subparagraph 2.26(a) or clause 2.37(b)(i),
as the case may be, and
(ii) adequately addresses the comment referred to
in clause 2.26(b)(i) or subclause 2.37(b)
(ii)(A), as the case may be, and
(b) the proposed management plan includes
(i) inventories referred to subparagraph 2.25
(d),
(ii) proposals referred to in subparagraph 2.25
(e) and (f),
(iii) measures referred to in subparagraphs 2.25
(h) and (i), and
(iv) a review strategy referred to in
subparagraph 2.25(m),
which are satisfactory to the Chief Forester.
2.28 The Chief Forester, in a notice given to the Licensee, may
decline to approve a proposed management plan under paragraph
2.27 until such time as
(a) a timber supply analysis is accepted under paragraph
2.20, or
(b) a 20-year plan is accepted under paragraph 2.21.
2.29 Where a timber supply analysis accepted under paragraph 2.20
or a 20-year plan accepted under paragraph 2.21 was not
included in the draft management plan referred to in paragraph
2.24, before approving a proposed management plan under
paragraph 2.27, the Chief Forester, in a notice given to the
Licensee, may require the Licensee to refer the timber supply
analysis or the 20-year plan, as the case may be, and make it
available for comment in accordance with the review strategy
referred to in paragraph 2.24.
2.30 Where the Chief Forester does not approve a proposed
management plan under paragraph 2.27,
(a) subject to paragraphs 2.28 and 2.29, the Chief
Forester, within three months after the date on which
the Chief Forester receives the proposed management
plan, will specify in a notice given to the Licensee
why the Chief Forester has not approved the proposed
management plan, and
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(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will submit a new or revised
proposed management plan to the Chief Forester.
2.31 Subject to paragraphs 2.28 and 2.29, if
(a) the Chief Forester, within three months after the
date on which the Chief Forester receives a proposed
management plan submitted under paragraph 2.26, has
neither
(i) approved the proposed management plan under
paragraph 2.27, nor
(ii) given the Licensee a notice referred to in
subparagraph 2.30(a), and
(b) there is a management plan in effect under this
Licence,
then the term of that management plan referred to in
subparagraph (b) is deemed to be extended until such time as
the Chief Forester approves the proposed management plan
under paragraph 2.27, or gives the Licensee a notice referred
to in subparagraph 2.30(a), as the case may be.
2.32 If the Chief Forester is satisfied that the Licensee or a
ministry officer is trying in good faith to fulfill a
requirement or obligation under this Part, but for reasons
beyond the control of the Licensee or the ministry officer, as
the case may be, cannot
(a) meet a deadline referred to in this Part, or
(b) where there is a management plan in effect under this
Licence, fulfill the requirement
or obligation before the management plan is due to
expire,
then the Chief Forester, in a notice given to the Licensee,
will, as applicable,
(c) extend the deadline by a period the Chief Forester
considers sufficient to allow the ministry officer or
the Licensee, as the case may be, to fulfill the
requirement or obligation, or
(d) extend the term of the management plan by a period
the Chief Forester considers sufficient to allow the
ministry officer or the Licensee, as the case may be,
to fulfill the requirement or obligation in
accordance with applicable deadlines,
subject to such conditions as the Chief Forester considers
necessary or appropriate.
2.33 If the Licensee
(a) submits a Timber Supply Analysis Information Package
under paragraph 2.13, or the information or proposals
referred to in subparagraph 2.16(b) more than eight
months,
(b) submits a timber supply analysis under subparagraph
2.17(a) or 2.22(b), or a 20-year plan under
subparagraph 2.17(b) or 2.23(b) more than 13 months,
(c) submits a draft management plan under paragraph 2.24
more than 19 months, or
(d) submits a proposed management plan under paragraph
2.26 or subparagraph 2.30(b) more than 22 months,
after the date on which the Statement of Management
Objectives, Options and Procedures is accepted under paragraph
2.11, the Chief Forester, in a notice given to the Licensee
within one month of the date on which the applicable item is
submitted, may require the Licensee to amend both the
Statement of Management Objectives, Options and Procedures,
and one or more of the items referred to in subparagraph (a)
through (d) inclusive, to the extent required to ensure
consistency with
(e) guidelines,
(f) land and resource management plans, and
(g) local resource use plans,
in effect on the date the Licensee is given the notice.
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2.34 If the Chief Forester considers that
(a) damage to timber in the Licence Area as a result of
fire, flood, wind, insects, disease, or other causes,
(b) a determination by the Chief Forester that operations
conducted in accordance with the management plan are
causing or could cause serious damage to the natural
environment, including soils, fisheries, wildlife,
water, range, and recreation resources,
(c) approval, amendment or replacement of a land and
resource management plan,
(d) approval, amendment or replacement of a local
resource use plan,
(e) a change in the allowable annual cut as a result of a
determination by the Chief Forester under the Forest
Act, or
(f) other special circumstances,
have rendered the management plan in effect under the Licence
inadequate, the Chief Forester, in a notice given to the
Licensee, may require that the management plan be amended.
2.35 A notice referred to in paragraph 2.34 must specify
(a) why the Chief Forester considers the management plan
has been rendered inadequate,
(b) the extent to which the management plan is
inadequate, and
(c) the changes required by the Chief Forester.
2.36 Where the Chief Forester gives the Licensee a notice referred
to in paragraph 2.34, the Licensee, within three months after
the date on which the notice is given, will submit for the
Chief Forester's approval a proposed amendment to the
management plan, which incorporates the changes referred to in
subparagraph 2.35(c), to have effect during the unexpired term
of the management plan.
2.37 If the Licensee fails to comply with the requirements of
paragraph 2.36, the management plan in effect under this
Licence will expire three months after the date on which the
notice referred to in paragraph 2.34 is given to the Licensee,
in which case,
(a) within three months after the date on which the
management plan expires under this paragraph, the
Licensee will
(i) refer a draft management plan to the
Regional Manager and
(ii) at the same time, refer the draft management
plan referred to in clause (i) to resource
agencies and make it available for comment
in accordance with the review strategy
referred to in subparagraph 2.24(b), and
(b) within six months after the date on which the
management plan expires under this paragraph, the
Licensee will submit to the Chief Forester
(i) a proposed management plan which is based on
the draft management plan referred to in
subparagraph (a), and
(ii) a summary of
(A) all comments received by the
Licensee in complying with the
requirements of subparagraph (a),
and
(B) the differences, if any, between the
draft management plan and the
proposed management plan, including
differences resulting from
modifications made in response to
the comments referred to in
subclause (A).
2.38 The Licensee will implement the management plan in effect
under this Licence.
2.39 A management plan is deemed to be part of this Licence.
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2.40 Subject to paragraphs 2.31, 2.32, and 2.37, a management plan
expires five years after the date on which it takes effect.
3.00 OBJECTIVES AND STRATEGIES FOR EMPLOYMENT AND ECONOMIC OPPORTUNITIES
3.01 When the Licensee submits a Statement of Management
Objectives, Options and Procedures under paragraph 2.09, the
Licensee will also submit to the Regional Manager
(a) a statement of the Licensee's objectives regarding
(i) employment of people living in or near the
Licence Area, including aboriginal people,
and
(ii) economic opportunities available to people
living in or near the Licence Area,
including aboriginal people, in respect of
the timber harvested under this Licence and
the Licensee's operations under and in
respect of this Licence,
which has been referred to resource agencies and made
available for comment in accordance with the review
strategy approved
(iii) in the management plan in effect under this
Licence, or
(iv) under paragraph 2.06, as the case may be,
and
(b) a summary of
(i) all comments received by the Licensee in
complying with the review strategy referred
to in subparagraph (a), and
(ii) the modifications, if any, made to the
statement of objectives, prior to its
submission to the Regional Manager, in
response to the comments referred to in
clause (i).
3.02 When the Licensee refers a draft management plan and makes it
available for comment under paragraph 2.24, the Licensee will
also refer and make available in accordance with
(a) the review strategy approved in the management plan
in effect under this Licence, or
(b) under paragraph 2.06,
as the case may be, a statement of the Licensee's proposals
for meeting the objectives set out in the statement of
objectives submitted under paragraph 3.01.
3.03 When the Licensee submits a proposed management plan under
paragraph 2.26, the Licensee will also submit to the Chief
Forester
(a) a statement of proposals based on the statement of
proposals referred to in paragraph 3.02, and
(b) a summary of
(i) all comments received by the Licensee in
complying with the requirements of paragraph
3.02, and
(ii) the differences, if any, between the
statement of proposals submitted under this
paragraph and the statement of proposals
referred to in paragraph 3.02, including
differences resulting from modifications
made in response to the comments referred to
in clause (i).
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4.00 DEVELOPMENT PLANS
4.01 A five-year development plan approved under the tree farm
licence replaced by this Licence and still in effect on the
date immediately preceding the date on which that tree farm
licence expires is deemed for the remainder of the term of the
five-year development plan to be the development plan in
effect under this Licence.
4.02 If there was no approved five-year development plan in effect
under the tree farm licence replaced by this Licence on the
date immediately preceding the date on which that tree farm
licence expires, then the Licensee, not later than six months
after the date referred to in paragraph 1.19, will submit for
the District Manager's approval a proposed development plan
for the Licence Area.
4.03 The Licensee, not less than three months prior to the date on
which the development plan in effect under this Licence is due
to expire will submit for the District Manager's approval a
proposed development plan for the Licence Area.
4.04 Where the Chief Forester gives the Licensee a notice referred
to in paragraph 2.34, the Chief Forester may at the same time
give the Licensee a notice requiring the Licensee to amend the
development plan in effect under this Licence to the extent
required to ensure consistency with the changes referred to in
subparagraph 2.35(c).
4.05 Where the Chief Forester gives the Licensee a notice referred
to in paragraph 4.04, the Licensee, within three months after
the date on which the notice is given, will submit for the
District Manager's approval a proposed amendment to the
development plan to have effect during the unexpired term of
the development plan.
4.06 If the Licensee fails to comply with the requirements of
paragraph 4.05, the development plan in effect under this
Licence will expire three months after the date on which the
notice referred to in paragraph 4.04 is given to the Licensee,
in which case the Licensee, within four months after the date
on which the development plan expires under this paragraph,
will submit a proposed development plan for the District
Manager's approval.
4.07 A proposed development plan submitted under paragraph 4.02,
4.03, 4.06, or 4.11(b) must
(a) be signed and sealed by a professional forester and
signed by the Licensee or the Licensee's authorized
signatory,
(b) be prepared according to the applicable manual in
effect three months prior to the deadline for
submitting the proposed development plan under
paragraph 4.02, 4.03, or 4.06, as the case may be,
(c) be consistent with this Licence and the management
plan in effect at the time the proposed development
plan is submitted,
(d) set out the Licensee's development plans for a period
of five years, or longer if the Licensee so chooses,
beginning on the date the proposed development plan
takes effect,
(e) set out a proposed harvesting sequence of cut blocks
which will enable the Licensee, each year during the
period referred to in subparagraph (d), to harvest
timber from the Licence Area in accordance with the
cut control provisions of the Forest Act,
categorizing these cut blocks as follows
(i) cut blocks covered by existing cutting
permits,
(ii) cut blocks covered by outstanding cutting
permit applications submitted to the
District Manager,
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(iii) cut blocks for which the Licensee proposes
to submit cutting permit applications during
the term of the proposed development plan,
and
(iv) cut blocks which the Licensee proposes to
harvest during the period referred to in
subparagraph (d), but for which the Licensee
does not propose to submit cutting permit
applications during the term of the proposed
development plan, unless for any reason cut
blocks referred to in clause (iii) cannot be
harvested,
(f) include the following information regarding the cut
blocks referred to in subparagraph (e)
(i) season of operation, logging system and
reforestation method, and
(ii) the status of adjacent harvested areas,
(g) include one or more detailed maps of the following
information
(i) based on the best information readily
available to the Licensee,
(A) recreation areas, community
watersheds, fish spawning, fish
rearing and fish migration areas,
critical wildlife habitats, and any
other areas subject to specific
integrated resource management
constraints, and
(B) private properties, foreshore
leases, and public utilities within
the Licence Area,
(ii) based on information gathered by the
Licensee for the purposes of the proposed
development plan,
(A) the forest cover,
(B) operability and contour lines,
(C) sensitive soils, unstable slopes,
and areas subject to visual quality
constraints,
(D) boundaries of
(i) cut blocks referred to in
subparagraph (e), and
(ii) existing cutting permits,
(E) existing roads including, where
applicable, linkage to the public
road system, timber processing
facilities and log dumps,
(F) proposed roads, including bridges
and major culverts,
(G) roads under construction,
(H) roads which have been deactivated to
a temporary or semi-permanent level,
(I) fire breaks and fuel management
problem areas, and
(J) log handling and storage areas,
including existing or proposed log
dump sites,
(iii) based on consultation carried out in
accordance with the measures specified in
the management plan,
(A) the location of areas where
aboriginal people have indicated
they are or may be carrying out
aboriginal activities in the Licence
Area, and
(B) the location of areas where
trappers, guide outfitters, range
tenure holders, and other licenced
resource users are operating in the
Licence Area, and
(iv) any other information required under the
manual referred to in subparagraph (b), and
(h) include a Road Maintenance Plan complying with the
requirements of paragraph 11.04 and a Road
Deactivation Plan complying with the requirements of
paragraph 11.05.
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4.08 In addition to the requirements under paragraph 4.07, a
proposed development plan submitted under paragraph 4.02,
4.03, or 4.06 must
(a) have been referred to resource agencies and made
available for comment in accordance with the review
strategy approved in the management plan in effect
under this Licence, and
(b) be accompanied by a summary of
(i) all comments received by the Licensee in
complying with the review strategy referred
to in subparagraph (a), and
(ii) the modifications, if any, made to the
proposed development plan, prior to its
submission to the District Manager, in
response to the comments referred to in
clause (i).
4.09 Subject to paragraph 4.10, the District Manager, within three
months after the date on which a proposed development plan is
submitted under paragraph 4.02, 4.03, or 4.06, or two months
after the date on which a proposed development plan is
submitted under subparagraph 4.11(b), will in a notice given
to the Licensee approve the proposed development plan, subject
to such conditions as the District Manager considers necessary
or appropriate, if
(a) the District Manager is satisfied that the proposed
development plan meets the requirements of paragraph
4.07,
(b) the proposed harvesting sequence is satisfactory to
the District Manager,
(c) the District Manager is prepared to accept cutting
permit applications for
(i) the cut blocks referred to in clause
4.07(e)(iii), and
(ii) the cut blocks referred to in clause
4.07(e)(iv), if for any reason cut blocks
referred to in clause 4.07(e)(iii) cannot be
harvested, and
(d) the District Manager is satisfied that the
development plan adequately addressed the comments
referred to in clause 4.08(b)(i).
4.10 The District Manager will not approve a proposed development
plan unless there is a management plan in effect under this
Licence.
4.11 Where the District Manager does not approve a proposed
development plan under paragraph 4.09,
(a) subject to paragraph 4.10, the District Manager,
within three months after the date on which a
proposed development plan is submitted under
paragraph 4.02, 4.03, or 4.06, or two months after
the date on which a proposed development plan is
submitted under subparagraph 4.11(b), will specify in
a notice given to the Licensee why the District
Manager has not approved the development plan, and
(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will submit a new or revised
proposed development plan to the District Manager.
4.12 A development plan is deemed to be part of this Licence.
4.13 Subject to paragraphs 4.01, 4.06, 4.14 and 4.15, a development
plan expires one year after the date on which it takes effect.
4.14 If
(a) the District Manager, within three months after the
date on which the District Manager receives a
proposed development plan submitted under paragraph
4.02 or 4.03, has neither
(i) approved the proposed development plan under
paragraph 4.09, nor
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(ii) given the Licensee a notice referred to in
subparagraph 4.11(a), and
(b) there is a management plan and a development plan in
effect under this Licence,
then the term of the development plan referred to in
subparagraph (b) is deemed to be extended until such time as
the District Manager approves the proposed development plan
under paragraph 4.09, or gives the Licensee a notice referred
to in subparagraph 4.11(a), as the case may be.
4.15 At the request of the Licensee, the District Manager may
extend the term of a development plan for a period not greater
than one year, provided there is a management plan in effect
under this Licence.
4.16 Before extending the term of a development plan under
paragraph 4.15, the District Manager may require the Licensee
to amend the development plan to the extent required to ensure
compliance with the management plan in effect under this
Licence.
4.17 If the development plan in effect under this Licence has been
rendered inadequate as a result of circumstances the Licensee
could not reasonably have foreseen at the time the proposed
development plan was submitted for the District Manager's
approval, the Licensee may submit for the District Manager's
approval a proposed amendment to the development plan.
4.18 The District Manager at his or her sole discretion may approve
a proposed amendment submitted under paragraph 4.17, provided
there is a management plan in effect under this Licence.
4.19 Before approving a proposed amendment submitted under
paragraph 4.17, the District Manager may require the Licensee
to refer the proposed amendment, and make it available for
comment in accordance with the review strategy referred to in
subparagraph 4.08(a).
5.00 CUTTING PERMITS
5.01 All cutting permits in effect under the tree farm licence
replaced by this Licence continue in effect under this Licence
for the duration of their respective terms.
5.02 Subject to paragraph 5.04, the Licensee may submit cutting
permit applications for
(a) cut blocks referred to in clause 4.07(e)(iii), and
(b) cut blocks referred to in clause 4.07(e)(iv), if for
any reason cut blocks referred to clause 4.07(e)(iii)
cannot be harvested, to enable the Licensee to
harvest timber from the Licence Area in accordance
with the cut control provisions of the Forest Act.
5.03 Subject to paragraphs 5.05 and 5.06, upon receipt of cutting
permit applications referred to in paragraph 5.02, the
District Manager will issue cutting permits to the Licensee
for
(a) cut blocks referred to in clause 4.07(e)(iii), and
(b) cut blocks referred to in clause 4.07(e)(iv), if for
any reason cut blocks referred to clause 4.07(e)(iii)
cannot be harvested,
if the District Manager is satisfied that the cutting permit
application meets the requirements of paragraph 5.04.
5.04 A cutting permit application referred to in paragraph 5.02
must
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(a) be signed and sealed by a professional forester and
signed by the Licensee or the Licensee's authorized
signatory,
(b) contain such information as is required
(i) by the District Manager in a notice given to
the Licensee two months prior to the date on
which the cutting permit application is
submitted, or
(ii) in the applicable manual in effect two
months prior to the date on which the
cutting permit application is submitted,
(c) subject to paragraph 5.08, be accompanied by a
proposed logging plan, and
(d) be consistent with the management plan and
development plan in effect under this Licence, and
the pre-harvest silviculture prescription, if any,
approved for the area on which the timber to be
harvested is located.
5.05 The District Manager will not issue a cutting permit under
paragraph 5.03 unless
(a) subject to an exemption referred to in subparagraph
5.18(b), the District Manager has approved a
pre-harvest silviculture prescription for the area on
which the timber to be harvested is located, and
(b) there is a management plan and development plan in
effect under this Licence.
5.06 The District Manager may delay issuing a cutting permit if he
or she is satisfied that
(a) the Licensee will be able under existing cutting
permits and road permits to harvest that portion of
the allowable annual cut available to the Licensee,
and
(b) the delay will not compromise the management plan and
development plan in effect under this Licence.
5.07 Where the District Manager
(a) is not satisfied that a cutting permit application
meets the requirement of paragraph 5.04,
(b) is prohibited under paragraph 5.05 from issuing a
cutting permit, or
(c) is delaying issuing the cutting permit under
paragraph 5.06,
the District Manager will give the Licensee a notice to that
effect within two months after the date on which the cutting
permit application is submitted.
5.08 The District Manager may
(a) exempt the Licensee from the requirement under
paragraph 5.04(c) to submit a logging plan with a
cutting permit application, and
(b) issue a cutting permit before approving a logging
plan
however, where a cutting permit is issued prior to the
approval of the logging plan, the Licensee will not commence
operations under the cutting permit until a logging plan has
been submitted and approved.
5.09 At the request or with the consent of the Licensee, the
District Manager may at any time
(a) amend an existing cutting permit, or
(b) issue a cutting permit,
to authorize the Licensee to harvest wind thrown, dead,
damaged, infested or diseased timber within the Licence Area.
5.10 A cutting permit must
(a) subject to this Licence and the Forest Act, authorize
timber to be harvested in accordance with the
provisions of the cutting permit from proximate cut
blocks located within the Licence Area,
(b) be consistent with
(i) this Licence,
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(ii) the Forest Act,
(iii) subject to an exemption referred to in
subparagraph 5.18(b), the pre-harvest
silviculture prescription approved for the
area on which the timber is to be harvested,
and
(iv) subject to paragraphs 5.09 and 5.14, the
management plan and development plan in
effect on the date the cutting permit is
issued,
(c) subject to paragraph 5.13, be for a term not
exceeding three years,
(d) prescribe the locations of roads to be built or
deactivated on the area covered by the cutting
permit, and the specifications and standards to be
followed in building or deactivating these roads,
(e) prescribe utilization standards and forestry
practices to be followed in timber harvesting
operations carried on under the cutting permit,
(f) set out procedures for assessing the volumes of
timber wasted or damaged by the Licensee, and provide
for a charge based on applicable stumpage rates to be
paid by the Licensee,
(g) specify a timber mark to be used in conjunction with
the timber harvesting operations carried on under the
cutting permit,
(h) specify whether the cutting permit is scale based or
cruise based, and
(i) subject to subparagraph (b), include such other
provisions as the District Manager considers
necessary or appropriate.
5.11 Subject to paragraphs 5.12, 5.13 and 5.14, the District
Manager may amend a cutting permit only at the request or with
the consent of the Licensee.
5.12 A cutting permit that does not comply with the requirements of
paragraph 5.10 is not void, however,
(a) on the request of the Licensee, or
(b) on one month notice to the Licensee,
the District Manager may amend the cutting permit to the
extent required to ensure compliance with the requirements of
paragraph 5.10.
5.13 The District Manager may, in a notice given to the Licensee,
extend the term of a cutting permit.
5.14 Where under paragraph 5.13 the District Manager extends the
term of a cutting permit, the District Manager may, in a
notice given to the Licensee, amend the cutting permit to the
extent required to ensure compliance with the management plan
and development plan in effect on the date the term of the
cutting permit is extended.
5.15 Unless exempted in writing by the District Manager or a person
authorized by the District Manager, the Licensee will define
on the ground the boundaries of the areas authorized for
harvesting under a cutting permit.
5.16 A cutting permit is deemed to be part of this Licence.
5.17 A logging plan approved in respect of a cutting permit is
deemed to be part of this Licence and the applicable cutting
permit.
5.18 The Licensee will not harvest any timber under a cutting
permit, unless
(a) a pre-harvest silviculture prescription has been
approved, or
(b) the Licensee has been exempted under the Forest Act
from the requirement to have a pre-harvest
silviculture prescription approved,
for the area on which the timber is located.
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5.19 A cutting permit or approved logging plan that is inconsistent
with the pre-harvest silviculture prescription approved for
the area covered by the cutting permit is not void, but to the
extent of the inconsistency the pre-harvest silviculture
prescription will prevail.
5.20 Without restricting the generality of subparagraph 5.10(i),
the District Manager may include in a cutting permit a
provision requiring the Licensee to provide a specified level
of supervision in respect of employees and contractors
carrying out operations under the cutting permit on sites
identified by the District Manager as being environmentally
sensitive sites.
6.00 REVIEW STRATEGY & MINISTRY CONSULTATION
6.01 A review strategy referred to in subparagraph 2.05(b), 2.07(b)
and subparagraph 2.25(m) must
(a) provide adequate opportunities for comment to persons
interested in or affected by operations under this
Licence, including but not restricted to
(i) resource agencies,
(ii) trappers, guide outfitters, range tenure
holders, and other licensed resource users,
(iii) aboriginal people,
(iv) local governments, and
(v) members of the public, and
(b) specify measures for inviting comment, including
(i) referrals to resource agencies,
(ii) advertising methods, times and locations,
(iii) viewing methods, times and locations,
(iv) if applicable, times and locations of open
houses, and
(v) methods for collecting written and oral
comments from interested persons.
6.02 An opportunity for comment provided to a person referred to in
subparagraph 6.01(a) will only be adequate for the purposes of
that subparagraph if, in the opinion of the Regional Manager
or the Chief Forester, as the case may be, the opportunity for
comment properly reflects the nature and extent of that
person's interest in the Licence Area and any right that
person may have to use the Licence Area.
6.03 In addition to the requirements under paragraph 6.01, a review
strategy for development plans must specify measures which are
consistent with the usual procedures in the applicable forest
district.
6.04 When in accordance with an approved review strategy the
Licensee refers a document or plan to resource agencies, or
makes it available for comment, the Licensee will at the same
time send a copy of the document or plan to the Regional
Manager for his or her information.
6.05 Before
(a) approving a review strategy under paragraph 2.06,
(b) accepting a Statement of Management Objectives,
Options and Procedures under paragraph 2.11,
(c) approving a proposed management plan under paragraph
2.27,
(d) approving a proposed development plan under paragraph
4.09, or
(e) issuing a cutting permit under Part 5.00,
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the Regional Manager, the Chief Forester, or the District
Manager, as the case may be, at his or her sole discretion and
notwithstanding the Licensee's obligations under the review
strategy, may consult persons who may be interested in or
affected by operations under this Licence, including but not
restricted to
(f) resource agencies,
(g) trappers, guide outfitters, range tenure holders, and
other licensed resource users,
(h) aboriginal people,
(i) local governments, and
(j) members of the public,
and, subject to paragraph 6.06, may consider any comments
received as a result of consultation under this paragraph.
6.06 If because of comments received as a result of consultation
under paragraph 6.05, the Regional Manager, the Chief
Forester, or the District Manager is considering
(a) not accepting, approving, or issuing, or
(b) imposing a condition upon acceptance, approval or
issuance of,
a document or plan referred to in paragraph 6.05, the Regional
Manager, the Chief Forester, or the District Manager, as the
case may be, will provide the Licensee with an opportunity to
respond to the comments before making a decision.
7.00 CONDITIONS IMPOSED UPON ACCEPTANCE OR APPROVAL
7.01 Where under this Licence a ministry officer has a discretion
to make his or her acceptance or approval of a document or
plan subject to a condition, the ministry officer will
exercise that discretion in a reasonable manner, having regard
to the purposes and functions of the Ministry of Forests set
out in Section 4 of the Ministry of Forests Act as it read on
June 1, 1993.
7.02 The Licensee, in a notice given to the appropriate ministry
officer within 15 days of the date on which the notice of
acceptance or approval is given to the Licensee, may reject
any condition to which the acceptance or approval is subject,
in which case the notice of approval or acceptance is deemed
to be a notice that the applicable document or plan is not
accepted or approved for the reasons set out in the
conditions.
8.00 ANNUAL REPORT
8.01 On or before April 1 of each year during the term of this
Licence, the Licensee will submit to the Chief Forester, the
Regional Manager and the District Manager an annual report
(a) prepared in accordance with the applicable manual in
effect on January 1 of the year in which the annual
report is submitted, and
(b) containing the information required in the manual
referred to in subparagraph (a) regarding
(i) the Licensee's performance over the previous
calendar year in relation to its management
of the Licence Area and its obligations
under this Licence,
(ii) the Licensee's success in meeting its
management objectives, including but not
restricted to its management objectives with
respect to employment and economic
opportunities,
(iii) the processing or other use or disposition
of the timber harvested under this Licence,
and
(iv) the Licensee's goals and major initiatives
for the next calendar year.
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8.02 The Licensee will make a copy of an annual report submitted
under paragraph 8.01 available for review by interested
persons during normal business hours at the Licensee's place
of business in the vicinity of the Licence Area or, if the
Licensee chooses, at another location which is convenient to
the public and acceptable to the Regional Manager.
9.00 CUT CONTROL
9.01 The Licensee will comply with the cut control provisions of
the Forest Act.
9.02 The five-year cut control period for this Licence means the
5-year period beginning on January 1, 1995, and each
succeeding 5-year period.
10.00 FINANCIAL AND DEPOSITS
10.01 Where any money is payable by the Licensee under the Forest
Act in respect of this Licence, a road permit or a special use
permit, the money payable under the Forest Act is also deemed
to be money payable under this Licence.
10.02 In addition to any money payable by the Licensee under
paragraph 10.01, the Licensee will pay to the Crown,
immediately upon receipt of a notice issued on behalf of the
Crown,
(a) in respect of timber harvested from Schedule B Land,
stumpage under Part 7 of the Forest Act,
(b) in respect of timber harvested from Schedule A Land
subject to a timber licence, stumpage or royalty
under Part 7, as elected by the Licensee under
Section 23 of the Forest Act, and
(c) any charges in respect of an assessment referred to
in subparagraph 5.10(f).
10.03 During the term of this Licence, the Licensee will maintain on
deposit with the Crown an amount prescribed under the Forest
Act, in cash or in negotiable securities acceptable to the
Minister, as security for the Licensee's performance of its
obligations under
(a) this Licence, a road permit or a special use permit,
or
(b) the Forest Act in respect of this Licence a road
permit or a special use permit, and
where the Regional Manager or District Manager gives the
Licensee a notice advising that an amount has been taken under
this Part from the deposit, the Licensee, within one month
after the date on which the notice is given, will pay to the
Crown, in cash or negotiable securities acceptable to the
Minister, an amount sufficient to replenish the deposit.
10.04 If the Licensee fails
(a) to pay money that the Licensee is required to pay to
the Crown under this Licence, a road permit or a
special use permit, or under the Forest Act in
respect of this Licence, a road permit or a special
use permit, or
(b) to otherwise perform its obligations under this
Licence, a road permit or a special use permit, or
under the Forest Act in respect of this Licence, a
road permit or a special use permit,
then the Regional Manager or District Manager, after at least
one month notice to the Licensee, may take from the deposit
(c) an amount equal to the money which the Licensee
failed to pay,
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(d) an amount sufficient to cover all costs reasonably
incurred by the Regional Manager or District Manager
in remedying the Licensee's failure to perform its
obligations, or
(e) an amount equal to the Regional Manager's or District
Manager's estimate of the costs which the Regional
Manager or District Manager could reasonably expect
to incur in remedying the Licensee's failure to
perform its obligations,
and for that purpose a security included in the deposit may be
sold.
10.05 A notice referred to in paragraph 10.04 must specify
(a) the obligation which the Licensee has failed to
perform, and
(b) the amount of money the Regional Manager or District
Manager intends to take from the deposit.
10.06 Subject to paragraphs 10.08, 10.09 and 10.10, where
(a) the Regional Manager or District Manager under
paragraph 10.04 takes from the deposit an amount
equal to the Regional Manager's or District Manager's
estimate of the costs which the Regional Manager or
District Manger could reasonably expect to incur in
remedying the Licensee's failure to perform its
obligations, and
(b) the costs reasonably incurred by the Regional Manager
or District Manager in remedying the Licensee's
failure to perform its obligations are less than the
amount taken from the deposit,
the Regional Manager or District Manager, as the case may be,
will as soon as practicable return to the Licensee an amount
equal to the difference between the amount taken from the
deposit and the costs incurred by the Regional Manager or
District Manager.
10.07 Where
(a) the Regional Manager or District Manager under
paragraph 10.04 takes from the deposit an amount
equal to the Regional Manager's or District Manager's
estimate of the costs which the Regional Manager or
District Manager could reasonably expect to incur in
remedying the Licensee's failure to perform its
obligations, and
(b) the costs reasonably incurred by the Regional Manager
or District Manager in remedying the Licensee's
failure to perform its obligations are greater than
the amount taken from the deposit,
the Regional Manager or District Manager may take from the
deposit an additional amount equal to the difference between
the costs incurred by the Regional Manager or District Manager
and the amount originally taken from the deposit, and for that
purpose a security included in the deposit may be sold.
10.08 Where the Regional Manager or District Manager under paragraph
10.04 takes from the deposit an amount equal to the Regional
Manager's or District Manager's estimate of the costs which
the Regional Manager or District Manager could reasonably
expect to incur in remedying the Licensee's failure to perform
its obligations, the Regional Manager or District Manager, as
the case may be, is under no obligation to remedy the
Licensee's failure.
10.09 Where
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(a) the Regional Manager or District Manager under
paragraph 10.04 takes from the deposit an amount
equal to the Regional Manager's or District Manager's
estimate of the costs which the Regional Manager or
District Manager could reasonably expect to incur in
remedying the Licensee's failure to perform its
obligations,
(b) the Regional Manager or District Manager does not
remedy the Licensee's failure to perform its
obligations, and
(c) the Regional Manager or District Manager gives a
notice to the Licensee indicating that the Regional
Manager or District Manager will not be remedying the
Licensee's failure to perform its obligations,
then, subject to paragraph 10.10, the Regional Manager or
District Manager may retain the amount taken from the deposit
under paragraph 10.04.
10.10 If, after receiving a notice referred to in paragraph 10.09,
the Licensee
(a) remedies the failure to perform its obligations, and
(b) gives a notice to that effect to the Regional Manager
or District Manager within three months of the date
on which the notice referred to in paragraph 10.09 is
given to the Licensee, or within such longer period
as the Regional Manager or District Manager may
approve,
then the Regional Manager or District Manager, as the case may
be, will return to the Licensee an amount equal to the
difference between the amount taken from the deposit and any
costs reasonably incurred by the Regional Manager or District
Manager in respect of the Licensee's failure to perform its
obligations.
10.11 If the Regional Manager or District Manager considers that
(a) any operation that is to be carried out under this
Licence, a road permit or a special use permit is
likely to cause damage to persons or property, and
(b) the deposit is insufficient to indemnify the Crown
for any liability which the Crown might incur as a
consequence of the operation,
then the Regional Manager or District Manager may require the
Licensee to maintain with the Crown a special deposit, in cash
or in negotiable securities acceptable to the Minister, in the
amount determined by the Regional Manager or District Manager,
as the case may be.
10.12 If the Licensee fails to
(a) remedy any damage resulting from an operation
referred to in paragraph 10.11, or
(b) compensate any person who suffers a loss as a result
of an operation referred to in paragraph 10.11,
the Regional Manager or District Manager may, after at least
one month notice to the Licensee, take an amount from the
special deposit sufficient to indemnify the Crown for any
liability which is or may be incurred by the Crown as a
consequence of a failure referred to in subparagraph (a) or
(b).
10.13 A notice referred to in paragraph 10.12 must specify
(a) the nature of the Licensee's failure,
(b) the nature of the damage or loss, and
(c) the amount of money the Regional Manager or District
Manager intends to take from the special deposit.
10.14 Subject to the Forest Act, the Regional Manager will refund to
the Licensee
(a) the deposit, less deductions made under paragraphs
10.04 and 10.07, when
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(i) this Licence terminates or expires and is
not replaced under Section 29 of the Forest
Act, and
(ii) the Regional Manager is satisfied that the
Licensee has fulfilled its obligations under
this Licence, and
(b) a special deposit, less deductions made under
paragraph 10.12, when the Regional Manager, acting
reasonably, is satisfied that the Crown is no longer
at risk of being held liable as a consequence of an
operation referred to in paragraph 10.11.
11.00 ROADS
11.01 Subject to the provisions of a cutting permit or road permit,
the Licensee will ensure that the specifications, standards
and locations of all roads the Licensee builds on the Licence
Area are consistent with the management plan and development
plan in effect at the time the road is built.
11.02 Upon the expiry of a road permit or a special use permit, all
improvements, including roads and bridges, constructed by the
Licensee under the authority of the road permit or the special
use permit will vest in the Crown, without right of
compensation to the Licensee, unless otherwise specified in
the road permit or special use permit.
11.03 The Licensee will not remove any improvements referred to in
paragraph 11.02, unless authorized to do so by the Regional
Manager.
11.04 The Road Maintenance Plan included in the Development Plan
must
(a) identify those roads shown on the maps referred to in
subparagraph 4.07(g) which the Licensee will maintain
for harvesting, silviculture and forest protection
purposes, and
(b) specify the maintenance operations which the Licensee
will carry out to
(i) protect the structural integrity of the
roads referred to in subparagraph (a) and
the cleared area of the road right-of-way
adjoining these roads,
(ii) keep drainage systems, including culverts
and ditches, functional,
(iii) minimize surface erosion, and
(iv) ensure these roads are safe for forest
harvesting or other industrial purposes.
11.05 The Road Deactivation Plan included in the Development Plan
must
(a) identify those roads shown on the maps referred to in
subparagraph 4.07(g) which the Licensee will
deactivate each year over the next three years,
specifying in each case whether the deactivation will
be temporary, semi-permanent or permanent,
(b) specify the operations required to
(i) stabilize the roads referred to in
subparagraph (a) and the cleared area of the
road right-of-way adjoining these roads, and
(ii) restore or maintain the natural drainage at
each road location,
(c) identify those roads shown on the maps referred to in
subparagraph 4.07(g) which have been deactivated by
the Licensee to a temporary or semi-permanent level
in the past year, and any other roads that have been
permanently deactivated by the Licensee in the past
year, and
(d) specify the type of vehicle which can access the
roads referred to in subparagraph (a) or (c).
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12.00 FIRE PROTECTION
12.01 Before April 1 of each year during the term of this Licence,
the Licensee will submit for the District Manager's approval a
fire protection pre-organization plan consistent with this
Licence, and will include a duty roster in the fire protection
pre-organization plan.
12.02 An approved fire protection pre-organization plan is deemed to
be part of this Licence.
12.03 The Licensee's obligations under an approved fire protection
pre-organization plan are in addition to and do not replace
its commitments in the management plan or development plan or
its obligations under Section 121 of the Forest Act.
13.00 FORESTRY
13.01 The Licensee will
(a) comply with the requirements of the Forest Act with
respect to basic silviculture, and
(b) ensure basic silviculture and, if applicable,
incremental silviculture carried out by or for the
Licensee on the Licence Area is consistent with the
management plan in effect under this Licence.
13.02 If under this Licence or the Forest Act the Licensee is to
develop or maintain a recreation site or trail, the Licensee
may enter onto Crown land for this purpose.
13.03 If the Licensee posts a sign concerning silviculture or the
development and maintenance of recreation sites or trails, the
sign must acknowledge any contribution made by the Crown in
respect of the silviculture or the development or maintenance
of recreation sites or trails.
13.04 The Licensee will annually review pest management strategies
with the District Manager and, if required by the District
Manager, the Licensee will submit a pest management plan,
including appropriate surveys, for the District Manager's
approval.
13.05 The Licensee's obligations under an approved pest management
plan are in addition to and do not replace its commitments in
the management plan or development plan respecting pest
management.
13.06 The Regional Manager or the District Manager may carry out
(a) basic silviculture on Schedule B Land referred to in
paragraph 1.07, 1.08, 1.09 and 1.16, in accordance
with the Crown's basic silviculture obligations under
the Forest Act, and
(b) incremental silviculture on Schedule B Land or
Schedule A Land subject to a timber licence, provided
that in so doing the Regional Manager or District
Manager, as the case may be, does not
(i) compromise the management plan or
development plan in effect under this
Licence, or
(ii) unreasonably interfere with the Licensee's
operations under this Licence.
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13.07 Where the Regional Manager or the District Manager carries out
basic silviculture referred to in subparagraph 13.06(a) or
incremental silviculture referred to in subparagraph 13.06(b),
the Regional Manager or the District Manager, as the case may
be, will ensure that the basic silviculture and, if applicable
the incremental silviculture is consistent with the intent of
the management plan in effect under this Licence.
14.00 ACCESS AND ACCOMMODATION
14.01 Any ministry officer may use roads owned or deemed to be owned
by the Licensee, for the purposes of fulfilling an obligation
or exercising a right under this Licence.
14.02 The Licensee will allow any person who has been granted
harvesting rights to timber referred to in paragraph 1.07,
1.08, 1.09, or 1.16 to use any road providing access to timber
within the Licence Area, which is owned or deemed to be owned
by the Licensee.
14.03 The Licensee will not require any payment from a person
referred to in paragraph 14.02 other than a reasonable payment
in respect of the actual maintenance costs of the road.
14.04 Upon reasonable notice from the Regional Manager or District
Manager, the Licensee will provide a ministry officer with
reasonable office and living accommodation on premises owned
or operated by the Licensee in or near the Licence Area, to
enable the ministry officer to fulfill an obligation or
exercise a right under this Licence.
14.05 The Licensee may charge the Regional Manager or District
Manager, as the case may be, for costs reasonably incurred in
providing the accommodation referred to in paragraph 14.04.
15.00 CONTRACTORS
15.01 Each year during the term of this Licence, the Licensee will
ensure that not less than
(a) 50 percent of the volume of timber harvested by or
for the Licensee under this Licence during the year,
multiplied by
(b) the result obtained by the division of
(i) the portion of the allowable annual cut that
the Chief Forester determines is
attributable to Schedule B Land, by
(ii) the allowable annual cut,
is harvested by persons under contract with the Licensee.
15.02 Compliance with the requirement of paragraph 15.01 will be
calculated in accordance with the method prescribed under the
Forest Act.
15.03 If in a calendar year the volume of timber harvested by
persons under contract with the Licensee is less than a volume
required under paragraph 15.01, the Licensee will on demand
pay to the Crown, an amount of money equal to
(a) the volume required under paragraph 15.01 minus the
volume harvested during the calendar year by persons
under contract, multiplied by
(b) the weighted average of the stumpage rates charged in
invoices issued to the Licensee during the calendar
year for timber harvested under this Licence from
Schedule B Land,
unless the Minister relieves the Licensee in whole or in part
from the requirements of this paragraph.
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15.04 The Licensee may contract to have more than the volume
required under paragraph 15.01 harvested by persons under
contract.
15.05 The Minister may relieve the Licensee from the requirement
under paragraph 15.01 to the extent provided for under the
Forest Act.
16.00 TIMBER PROCESSING
16.01 The Licensee will process all timber harvested under a cutting
permit or a road permit, or equivalent volumes, through a
timber processing facility
(a) owned or operated by the Licensee or an affiliate of
the Licensee within the meaning of the Company Act,
and
(b) equipped to carry out debarking and chipping,
unless the Minister exempts the Licensee in whole or in part
from the requirements of this paragraph.
16.02 Where the Licensee
(a) intends to close a timber processing facility or
reduce its production, or
(b) has reason to believe that an affiliate of the
Licensee within the meaning of the Company Act
intends to close a timber processing facility or
reduce its production,
for a period of longer than 90 days, the Licensee will give
the Minister at least three months notice prior to the closure
or reduction.
16.03 Where
(a) the Licensee, or
(b) an affiliate of the Licensee within the meaning of
the Company Act,
closes a timber processing facility or reduces its production
for a period longer than 90 days, the Licensee will at the
request of the Minister provide information regarding the
volume of Crown timber processed through the timber processing
facility during the 24-month period immediately preceding the
closure or reduction in production level.
16.04 The Licensee will continue to operate, and where applicable
construct or expand, a timber processing facility in
accordance with
(a) the proposal made in the application on which the
award of the tree farm licence replaced by this
Licence or any predecessor to that tree farm licence
was based, and
(b) the revisions, if any, to that proposal which have
been approved by the Minister or an appropriate
ministry officer.
17.00 LIABILITY AND INDEMNITY
17.01 Subject to paragraph 17.03, the Licensee will indemnify the
Crown against and save it harmless from all claims, demands,
suits, actions, causes of action, costs, expenses and losses
faced, incurred or suffered by the Crown as a result, directly
or indirectly, of any act or omission of
(a) the Licensee,
(b) an employee of the Licensee,
(c) an agent of the Licensee,
(d) a contractor of the Licensee who engages in any
activity or carries out any operation, including but
not restricted to harvesting operations, under or
associated with this Licence, a road permit, a free
use permit issued to the Licensee, or a special use
permit, or
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(e) any other person who on behalf of the Licensee
engages in any activity or carries out any operation,
including but not restricted to harvesting
operations, under or associated with this Licence, a
road permit, a free use permit issued to the Licensee
or a special use permit.
17.02 For greater certainty, the Licensee has no obligation to
indemnify the Crown under paragraph 17.01 in respect of any
act or omission of
(a) an employee, agent or contractor of the Crown, in the
course of carrying out his or her duties as employee,
agent or contractor of the Crown, or
(b) a person other than the Licensee to whom the Crown
has granted the right to enter, use or occupy Crown
land, including a person who has been granted the
right to harvest timber referred to in paragraph
1.07, 1.08, 1.09 or 1.16, in the course of exercising
those rights.
17.03 Paragraph 17.01 does not apply to an act or omission which is
a direct response to, and complies with, an order made by a
ministry officer or another officer of the Crown.
17.04 Money taken under Part 10.00 from a deposit or special
deposit, and money paid by the Licensee under paragraph 15.03
or 17.01, is in addition to and not in substitution for any
other remedies available to the Crown in respect of a default
of the Licensee.
18.00 LIMITATION OF LIABILITY
18.01 The Licensor is not liable to the Licensee for injuries,
losses, expenses, or costs incurred or suffered by the
Licensee as a result, directly or indirectly, of an act or
omission of a person who is not a party to this Licence,
including but not restricted to an act or omission of a person
disrupting, stopping or otherwise interfering with the
Licensee's operations under this Licence by road blocks or
other means.
19.00 INTERFERENCE WITH ABORIGINAL RIGHTS
19.01 Notwithstanding any other provision of this Licence, if a
court of competent jurisdiction
(a) determines that the Licensee's operations under this
Licence, or the Licensee's use or occupation of
Schedule B Land or Schedule A Land subject to a
timber licence, is interfering or may interfere with
an aboriginal right,
(b) grants an injunction further to a determination
referred to in subparagraph (a), or
(c) grants an injunction pending a determination of
whether the Licensee's operations under this Licence,
or the Licensee's use or occupation of Schedule B
Land or Schedule A Land subject to a timber licence,
is interfering or may interfere with an aboriginal
right,
then, having regard to any determination of the court and the
terms of any injunction granted by the court, the Regional
Manager or District Manager, in a notice given to the
Licensee, may, in whole or in part, vary, suspend, or refuse
to issue
(d) a cutting permit,
(e) a road permit,
(f) a special use permit, or
(g) a free use permit issued to the Licensee,
to the extent necessary to ensure there is no interference or
no further interference with the aboriginal right or the
alleged aboriginal right.
19.02 Notwithstanding any other provision of this Licence, if a
court of competent jurisdiction
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(a) determines that the Licensee's operations under this
Licence, or the Licensee's use or occupation of
Schedule B Land or Schedule A Land subject to a
timber licence, is interfering or may interfere with
an aboriginal right,
(b) grants an injunction further to a determination
referred to in subparagraph (a), or
(c) grants an injunction pending a determination of
whether the Licensee's operations under this Licence,
or the Licensee's use or occupation of Schedule B
Land or Schedule A Land subject to a timber licence,
is interfering or may interfere with an aboriginal
right,
then, having regard to any determination of the court and the
terms of any injunction granted by the court, the Chief
Forester, in a notice given to the Licensee, may require the
Licensee to amend one or both of the following
(d) the management plan in effect under this Licence, and
(e) the development plan in effect under this Licence,
to the extent necessary to ensure there is no interference or
no further interference with the aboriginal right or the
alleged aboriginal right.
19.03 Where the Chief Forester gives the Licensee a notice referred
to in paragraph 19.02, the Licensee, in accordance with the
requirements of the notice and within the time specified in
the notice, will submit one or both of the following
(a) for the Chief Forester's approval, a proposed
amendment to the management plan to have effect
during the unexpired term of the management plan, and
(b) for the District Manager's approval, a proposed
amendment to the development plan to have effect
during the unexpired term of the development plan.
19.04 Subject to the Forest Act and all other applicable legislation
and the other provisions of this Licence, the Chief Forester
or the District Manager, as the case may be, will approve a
proposed amendment referred to in paragraph 19.03 if he or she
is satisfied that the proposed amendment
(a) meets the requirements of the notice referred in
paragraph 19.02, and
(b) is consistent with any determination of the court and
the terms of any injunction granted by the court
referred to in paragraph 19.02.
19.05 If either
(a) the Licensee fails to comply with the requirements of
paragraph 19.03, or
(b) the Chief Forester or the District Manager does not
approve a proposed amendment under paragraph 19.04,
the Chief Forester or the District Manager may amend the
management plan or the development plan, as the case may be,
to the extent necessary to ensure the plan
(c) meets the requirements of the notice referred to in
paragraph 19.02, and
(d) is consistent with any determination of the court and
the terms of any injunction granted by the court
referred to in paragraph 19.02.
19.06 Subject to the Forest Act and all other applicable legislation
and the other provisions of this Licence, where
(a) the Regional Manager or District Manager has varied a
cutting permit, road permit, special use permit, or
free use permit under paragraph 19.01,
(b) a court of competent jurisdiction subsequently
overturns, sets aside or dissolves the determination
or injunction referred to in that paragraph, and
(c) the Regional Manager or District Manager, as the case
may be, considers it practicable to do so,
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the Regional Manager or District Manager, at the request of
the Licensee, will vary the permit to reflect as closely as
possible the terms and conditions of the permit prior to its
variation under paragraph 19.01.
19.07 Subject to the Forest Act and all other applicable legislation
and the other provisions of this Licence, where
(a) the Regional Manager or District Manager has
suspended a cutting permit, road permit, special use
permit, or free use permit under paragraph 19.01,
(b) a court of competent jurisdiction subsequently sets
aside or dissolves the determination or injunction
referred to in that paragraph, and
(c) the Regional Manager or District Manager, as the case
may be, considers it practicable to do so,
the Regional Manager or District Manager, at the request of
the Licensee will reinstate the permit.
19.08 Subject to the Forest Act and all other applicable legislation
and the other provisions of this Licence, where
(a) the Regional Manager or District Manager has refused
to issue a cutting permit, road permit, special use
permit, or free use permit under paragraph 19.01,
(b) a court of competent jurisdiction subsequently
overturns, sets aside or dissolves the determination
or injunction referred to in that paragraph, and
(c) the Regional Manager or District Manager, as the case
may be, considers it practicable to do so,
the Regional Manager or District Manager, at the request of
the Licensee, will issue the permit.
19.09 Subject to the Forest Act and all other applicable legislation
and the other provisions of this Licence, where
(a) as a result of a determination or injunction referred
to in paragraph 19.02, an amendment to the management
plan or development plan in effect under this Licence
has been approved under paragraph 19.04 or made under
paragraph 19.05, and
(b) a court of competent jurisdiction subsequently
overturns, sets aside or dissolves the determination
or injunction,
the Licensee may submit an amendment reversing, insofar as it
is possible, the effects of the amendment referred to in
subparagraph (a), and the Chief Forester or the District
Manager, as the case may be, will approve the amendment if he
or she considers its practicable to do so.
20.00 TERMINATION AND SURRENDER
20.01 If this Licence is terminated, expires and is not replaced
under Section 29 of the Forest Act, or if this Licence is
cancelled,
(a) cutting permits will terminate when the expiration,
termination or cancellation occurs, and
(b) title to all
(i) improvements, including roads and bridges,
constructed on Schedule B Land by the
Licensee under the authority of this
Licence, and
(ii) logs and special forest products which were
harvested from Schedule B Land under the
authority of this Licence and are still
located on Schedule B Land,
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will vest in the Crown, without right of
compensation to the Licensee, and
(c) the Licensee may continue to enter, occupy and use
Schedule B Land for a period of one month after the
termination, expiry or cancellation of this Licence
for the purposes of removing the Licensee's property.
20.02 The Licensee will not remove any improvements, logs or special
forest products referred to in subparagraph 20.01(b), unless
authorized to do so by the Regional Manager.
20.03 Subject to paragraph 20.04, if the Licensee commits an act of
bankruptcy, makes a general assignment for the benefit of its
creditors or otherwise acknowledges its insolvency, the Chief
Forester may cancel this Licence in a notice given to the
Licensee.
20.04 The Chief Forester will not cancel this Licence under
paragraph 20.03 unless and until the Chief Forester gives a
written notice to every holder of a registered security
interest that charges this Licence, allowing a period of not
less than 60 days prior to cancellation during which the
holder of the registered security interest may exercise the
rights and pursue the remedies available in respect of the
registered security interest.
21.00 NOTICE
21.01 A notice given under this Licence must be in writing.
21.02 Where a notice is to be given under this Licence, it may be
(a) delivered by hand,
(b) sent by prepaid registered mail, or
(c) subject to paragraph 21.05, sent by facsimile
transmission, to the address or facsimile number, as
applicable, specified on the first page of this
Licence, or to such other address or facsimile number
as is specified in a notice given in accordance with
this Part.
21.03 Where a notice is given under this Licence, it is deemed to
have been given
(a) if it is given in accordance with subparagraph
21.02(a), on the date it is delivered by hand,
(b) if it is given in accordance with subparagraph
21.02(b), subject to paragraph 21.04, on the eighth
day after its deposit in a Canada Post Office at any
place in Canada, and
(c) if it is given in accordance with subparagraph
21.02(c), subject to paragraph 21.05, on the date it
is sent by facsimile transmission.
21.04 Where, between the time a notice is mailed in accordance with
subparagraph 21.02(b) and the time it is actually received,
there occurs a postal strike, lockout or slowdown that might
reasonably affect delivery of the notice, the notice is not
deemed to be given until the party actually receives it.
21.05 Where a notice is sent by facsimile transmission, the party
sending the notice must ensure that the transmission has been
successfully completed.
22.00 MISCELLANEOUS
22.01 This Licence is subject to the laws of British Columbia,
including the Forest Act and all other applicable legislation.
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22.02 This Licence will enure to the benefit of, and be binding on,
the parties and their respective heirs, executors, successors
and permitted assigns.
22.03 Where under this Licence the Minister or a ministry officer
has a discretion to require information, the Minister or
ministry officer will exercise this discretion in a reasonable
manner, having regard to the purposes and functions of the
Ministry of Forests set out in Section 4 of the Ministry of
Forests Act as it read on June 1, 1993.
22.04 The Minister will ensure that the obligations under this
Licence of the ministry officers referred to in this Licence
are fulfilled within the limits of this Licence and applicable
legislation.
22.05 The Licensee will use the services of one or more registered
professional foresters to manage the Licence Area in
accordance with the management plan and development plan in
effect under this Licence.
22.06 At the request of the Regional Manager or District Manager,
the Licensee will survey and define on the ground any or all
boundaries of the Licence Area.
22.07 Where
(a) the boundaries of the Licence Area are based on
boundaries established under existing or expired
timber licences,
(b) the legal description of the boundaries of the
Licence Area has been derived from original timber
licence survey plans or from reference maps prepared
from original timber licence survey plans, and
(c) the legal description differs from the actual ground
location of timber licence corner posts,
the boundaries of the Licence Area are the boundaries as
originally established by the actual ground location of the
timber licence corner posts.
22.08 Timber cut under this Licence or a road permit must be
(a) marked according to the Forest Act, and
(b) unless the timber is cut under a cruise based cutting
permit, scaled according to the Forest Act and any
procedures set or approved by the Ministry of
Forests.
22.09 A right or duty of a ministry officer referred to in this
Licence may be exercised or fulfilled by another ministry
officer designated or authorized to do so by the Minister, the
Chief Forester, the Regional Manager, or the District Manager,
as appropriate.
22.10 Nothing in this Licence entitles the Licensee to have an area
of Schedule B Land, or Schedule A Land subject to a timber
licence, replaced with another area, or to have harvesting
rights awarded under another agreement under the Forest Act,
in the event timber is damaged or destroyed by pests, fire,
wind or other natural causes, or an area of land is deleted
from the Licence Area under the Forest Act or any other
statute.
23.00 INTERPRETATION
23.01 In this Licence, unless the context otherwise requires,
(a) "aboriginal activities" means cultural, spiritual,
religious, and sustenance activities associated with
traditional aboriginal life, including aboriginal
rights,
(b) "aboriginal people" includes registered and
non-registered Indians, Inuits and Metis,
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(c) "allowable annual cut" means the allowable annual cut
determined for the Licence Area by the Chief Forester
under the Forest Act, as increased or decreased under
the Forest Act,
(d) "close" or "closure" means cessation of production of
the principal forest products normally produced by a
timber processing facility,
(e) "cultural heritage resource" means an object or site
that is of historic, cultural, or archaeological
significance,
(f) "cutting permit" means a cutting permit referred to
in paragraph 5.01, or issued under paragraph 5.03 or
5.09,
(g) "deposit" means the deposit which the Licensee is
required to maintain under paragraph 10.03,
(h) "development plan" means a plan which
(i) details the proposed location and scheduling
of development activities within the Licence
Area, over a period of at least five years,
including the location and scheduling of
harvesting and road construction and
deactivation activities,
(ii) provides information to be considered in
assessing the proposed location and
scheduling of development activities, and
(iii) subject to paragraph 4.15, is replaced every
one or two years, depending on its term,
(i) "Forest Act" means
(i) the Forest Act, R.S.B.C. 1979, c. 140, as
amended, or the successor to this act, or a
part of this act if all or a part of it is
repealed, and
(ii) the regulations enacted under this act or
its successor,
(j) "free use permit" means a free use permit issued
under the Forest Act to the Licensee, or to a person
other than the Licensee,
(k) "guideline" means a guideline, policy, procedure or
manual regarding forest practices applicable to all
or part of the Licence Area, which has been set or
approved by the Ministry ,
(l) "harvest" includes entry onto land for the purpose of
cutting and removing timber, cutting the timber and
removing the timber from the land,
(m) "land and resource management plan" means a plan,
approved by an appropriate official of the Government
of British Columbia, which provides direction for
land use, and establishes resource management
objectives and strategies, for all or part of the
Licence Area,
(n) "Licence Area" means Schedule A Land and Schedule B
Land,
(o) "local resource use plan" means a plan approved by
the District Manager which provides guidelines for
resource use and development in all or part of the
Licence Area,
(p) "logging plan" means one or more detailed maps
setting out how the Licensee proposes to conduct
harvesting and related operations on one or more cut
blocks covered or to be covered by a cutting permit,
(q) "management plan" means a plan for managing,
protecting and conserving both the timber resources
and the non-timber values and resources of the
Licence Area, and integrating harvesting and related
activities with use of the Licence Area for purposes
other than timber production,
(r) "manual" means a guideline, policy, procedure, or
manual set or approved by the Ministry for
preparation of
(i) a Statement of Management Objectives,
Options and Procedures,
(ii) a Timber Supply Analysis Information
Package,
(iii) a timber supply analysis,
(iv) a management plan,
(v) a development plan,
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(vi) a cutting permit application,
(vii) an annual report referred to in Part 8.00,
or
(viii) inventories referred to in Part 2.00,
(s) "Ministry" means the Ministry of Forests,
(t) "ministry officer" means an employee of the Ministry,
(u) "operable land base" mean those areas within the
Licence Area, which, based on the highest log prices
obtained over the previous decade for timber of the
type and quality principally found on the areas, are
economically feasible to develop and harvest with the
technology currently available to the Licensee,
(v) "person" includes a corporation and a partnership,
(w) "pest" means any animal, insect, fungus, bacteria,
virus, nematode, or other organism which is
detrimental to effective forest management,
(x) "pre-harvest silviculture prescription" means a
prescription required prior to harvesting under
Section 129.3 of the Forest Act,
(y) "resource agencies" means any governmental agency,
ministry or department having jurisdiction over a
resource which may be affected by any activity or
operation, including but not restricted to harvesting
activities or operations, engaged in or carried out
under or associated with this Licence or a road
permit,
(z) "review strategy" means a plan for obtaining input
from resource agencies and interested persons
regarding management and development of the Licence
Area,
(aa) "road" includes bridges and culverts,
(bb) "Road Deactivation Plan" means a road deactivation
plan referred to in paragraph 11.05,
(cc) "Road Maintenance Plan" means a road maintenance plan
referred to in paragraph 11.04,
(dd) "road permit" means a road permit granted to the
Licensee under the Forest Act which provides access
to timber harvested, or to be harvested, under this
Licence,
(ee) "Schedule A Land" means the land described in the
Schedule "A" to this Licence,
(ff) "Schedule B Land" means the Crown land described in
Schedule "B" to this Licence,
(gg) "special deposit" means a special deposit which the
Licensee is required to maintain under paragraph
10.11,
(hh) "special use permit" means a special use permit
issued under the Forest Act to authorize the Licensee
to use or occupy Crown land within the Licence Area,
(ii) "timber supply analysis" means an analysis of the
short-term and long-term availability of timber for
harvesting in the Licence Area, including an analysis
of the short- and long-term effect of management
practices on the availability of timber,
(jj) "Timber Supply Analysis Information Package" means
information relating to the preparation of a timber
supply analysis, including information regarding the
assumptions to be incorporated into a timber supply
analysis, and the methodology to be used in the
timber supply analysis,
(kk) "Timber Supply Forester" means the ministry officer
designated by the Chief Forester to review the Timber
Supply Analysis Information Package and the timber
supply analysis,
(ll) "20-year plan" means a plan prepared in support of a
timber supply analysis, which indicates the
availability of timber over a period of not less than
20 years.
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23.02 Unless otherwise provided in paragraph 23.01, if a word or
phrase used in this Licence is defined in the Forest Act, the
definition in the Forest Act applies to this Licence, and
where the word or phrase in the Forest Act is replaced by a
new word or phrase, this Licence is deemed to have been
amended accordingly.
23.03 Where a provision of the Forest Act referred to in this
Licence is renumbered, the reference in this Licence is to be
construed as a reference to the provision as renumbered.
23.04 In this Licence, unless the context otherwise requires,
(a) the singular includes the plural and the plural
includes the singular, and
(b) the masculine, the feminine and the neuter are
interchangeable.
23.05 This Licence is divided into parts, paragraphs, subparagraphs,
clauses and subclauses, illustrated as follows
1.00 part,
1.01 paragraph,
(a) subparagraph,
(i) clause,
(A) subclause,
and a reference to a subparagraph, clause or subclause be
construed as a reference to a subparagraph, clause or
subclause of the paragraph, subparagraph or clause, as the
case may be, in which the reference occurs.
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IN WITNESS WHEREOF this Licence has been executed by the Minister and
the Licensee.
SIGNED on .................19...)
by the Minister )
on behalf of Her Majesty )
the Queen in Right of )
the Province of )
British Columbia in the )
presence of: )
)
................................) ....................................
) The Honourable Andrew Petter
(Type in Name)..................) Minister of Forests
THE COMMON SEAL of )
the Licensee was affixed )
on ........................19... )
in the presence of: )
) c/s
................................)
)
(Type in Name)..................)
(or)
SIGNED on .................19...)
by the Licensee, in the )
presence of: )
)
................................) (Licensee)
)
(Type in Name)..................)
<PAGE> 43
SCHEDULE "A"
BOUNDARY TREE FARM LICENCE
TREE FARM LICENCE NUMBER 8
Forest lands and merchantable timber in other tenures owned or controlled by the
Licensee in the Boundary Tree Farm Licence Number 8.
NIL
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<PAGE> 44
SCHEDULE "B"
BOUNDARY TREE FARM LICENCE
TREE FARM LICENCE NUMBER 8
1. Schedule "B" Land
1.1 For the purposes of the definition of "Schedule 'B' Land" in Paragraph
23.01 of this Licence, "Crown land described in Schedule 'B'" means all
Crown land within the boundaries described in Paragraph 2, except for
Alienated Crown Land.
2. Boundaries
2.1 The boundaries referred to in Paragraph 1 are as follows:
"Metes and bounds legal description"
3. Interpretation
3.1 "Alienated Crown Land" means Crown land which is not available for
inclusion in Schedule "B" Land and, without restricting the generality
of the foregoing, includes Crown land which:
(a) is, as of the effective date of this Licence, within the area
of:
(i) a park or ecological reserve;
(ii) a lease, licence of exclusive occupation, or timber
licence held by a person other than the Licensee, or
(iii) a highway (or road) right of way where the highway
(or road) is or is deemed, declared or determined to
be a public highway under the Highway Act (or a
Forest Service road under the Forest Act); or
(b) becomes vested in the Crown by escheat, reversion, transfer or
otherwise during the term of this Licence, except as provided
in this Licence.
3.2 Paragraph 23.02 of this Licence applies to this Schedule.
3.3 The map(s) accompanying this Schedule are for convenience only, and if
there is any discrepancy between the map(s) and the description of
boundaries in Paragraph 2, the description in Paragraph 2 will be
deemed to be correct.
3.4 In this Schedule and on the accompanying map(s), identification of land
which is within the boundaries described in Paragraph 2, but is not
Schedule "B" Land does not mean all other land which is within these
boundaries, but is not so identified is Schedule "B" Land.
Note: Crown land does not include land owned by an agent of the
Crown, nor land vested in the federal Crown.
<PAGE> 45
Active amendments and instruments of (former) Tree Farm Licence Number 8, which
are currently in effect and are not described in Schedule "B", and are not
needed on the document map(s).
BOUNDARY TREE FARM LICENCE
TREE FARM LICENCE NUMBER 8
<TABLE>
<CAPTION>
DOCUMENT DATE PARTICULARS
- -------- ---- -----------
<S> <C> <C>
Amendment #1 57-09-03 Deletes from Schedule "B", Lots 1283, 927, 928 for mining purposes
Amendment #8 71-06-24 Removes from Schedule "B", roadside rest area 0303447
Amendment #10 71-09-02 Cancels and replaces Amendment No. 9, as per description
Instrument #12 77-04-26 Removes from Schedule "B" Trapping/Kettle Cr FSR Project No. 3929
Instrument #14 79-04-18 Cancels and replaces Instrument No. 13
Instrument #17 86-07-11 Cancels Amendment No. 5, adds to Schedule "B", Stream Gauge
previously removed by Amendment No. 5
</TABLE>
<PAGE> 46
SCHEDULE "B"
BOUNDARY TREE FARM LICENCE
TREE FARM LICENCE NUMBER 8
All Crown lands not otherwise alienated within the area outlined in bold black
on the accompanying map except Crown land reverted subsequent to 1971, which was
subject to an old temporary tenure (within the meaning of the Forest Act
assented to March 30, 1972) and held by a person other than the licensee.
BLOCK 1
Commencing at the northeast corner of Lot 2839s, Similkameen Division of Yale
Land District, thence westerly and southerly along the northerly and westerly
boundaries of said Lot 2839s to a point due east of the northeast corner of Lot
2975s; thence west to the northeast corner of said Lot 2975s; thence westerly
along the northerly boundaries of Lots 2975s and 2976s to the southeast corner
of Lot 2977s; thence northerly along the easterly boundary of said Lot 2977s to
the southeast corner of Lot 75s; thence northerly and westerly along the
easterly and northerly boundaries of Lots 75s, 2983 and 471s to the northwest
corner of said Lot 471s; thence southerly along the westerly boundaries of Lots
471s, 2978s and 2979s to the southwest corner of said Lot 2979s; thence easterly
along the southerly boundary of said Lot 2979s to the westerly boundary of Lot
1020; thence southerly along the westerly boundary of said Lot 1020 to the
northeast corner of Lot 470s; thence westerly and southerly along the northerly
and westerly boundaries of Lots 470s and 2638s to the southwest corner of said
Lot 2638s; thence easterly and northerly along the southerly and easterly
boundaries of said Lot 2638s to the southwest corner of said Lot 470s; thence
easterly along the southerly boundary of said Lot 470s to the northwest corner
of Lot 1054; thence southerly and easterly along the westerly and southerly
boundaries of Lots 1054 and 638 to the northwest corner of Lot 640; thence
southerly along the westerly boundary of said Lot 640 to the southwest corner
thereof; thence southerly in a straight line to the northwest corner of Lot 710;
thence southerly along the westerly boundary of said Lot 710 to the southwest
corner thereof; thence westerly in a straight line to the northeast corner of
Lot 620; thence westerly along the northerly boundary of said Lot 620 to the
northwest corner thereof; thence due west to a point due south of the southeast
corner of Lot 696; thence north to the southeast corner of said Lot 696; thence
northerly and westerly along the easterly
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and northerly boundaries of Lots 696 and 2229s to the northwest corner of said
Lot 2229s; thence southerly and easterly along the westerly and southerly
boundaries of said Lots 2229s and 696 to a point due north of the northeast
corner of Lot 736s; thence south to the northeast corner of said Lot 736s;
thence westerly along the northerly boundary of said Lot 736s to the southeast
corner of Lot 740s; thence northerly and westerly along the easterly and
northerly boundaries of Lots 740s, 3003s and 2511s to the northwest corner of
said Lot 2511s; thence southerly along the westerly boundaries of Lots 2511s and
2510s to the northeast corner of Lot 2509s; thence westerly along the northerly
boundaries of Lots 2509s and 2508s to the northwest corner of said Lot 2508s;
thence southerly along the westerly boundaries of Lots 2508s and 2507s to the
northwest corner of Lot 2506s; thence southerly, easterly and southerly along
the westerly, southerly and westerly boundaries of said Lot 2506s to the
northwest corner of Lot 2505s; thence southerly along the westerly boundary of
said Lot 2505s to the northeast corner of Lot 877; thence westerly along the
northerly boundaries of Lots 877 and 878 to the northwest corner of said Lot
878; thence northerly and westerly along the easterly and northerly boundaries
of Lot 848 to the easterly boundary of Lot 2336; thence northerly along the
easterly boundary of said Lot 2336 to the southerly boundary of Lot 2338; thence
easterly, northerly and westerly along the southerly, easterly and northerly
boundaries of said Lot 2338 to the most easterly southeast corner of Lot 1820s;
thence northerly, westerly and southerly along the easterly, northerly and
westerly boundaries of said Lot 1820s to the northeast corner of Lot 1819s;
thence westerly along the northerly boundaries of Lots 1819s and 1818s to the
southeast corner of Lot 2317s; thence northerly and westerly along the easterly
and northerly boundaries of Lot 2317s to the northeast corner of Lot 2328s;
thence westerly along the northerly boundary of said Lot 2328s to the easterly
boundary of Lot 2312s; thence southerly, westerly, southerly, westerly and
northerly along the easterly, southerly, easterly, southerly and westerly
boundaries of said Lot 2312s to the southerly boundary of Lot 2311s; thence
westerly, northerly and easterly along the southerly, westerly and northerly
boundaries of said Lot 2311s to the southwest corner of Lot 1719s; thence
easterly and northerly along the southerly and easterly boundaries of said Lot
1719s to the southeast corner of Lot 1725s; thence westerly and northerly along
the southerly and westerly boundaries of said Lot 1725s to the southwest corner
of Lot 1724s; thence northerly along the westerly boundary of said Lot 1724s to
the southwest corner of Lot 1723s; thence easterly and northerly along the
southerly and easterly boundaries of Lots 1723s, 306s, and 305s to the southeast
corner of Lot 2331s; thence northerly and westerly along the
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<PAGE> 48
easterly and northerly boundaries of Lots 2331s and 1922s to the northeast
corner of Lot 2087s; thence westerly along the northerly boundary of said Lot
2087s to the southeast corner of Lot 1923s; thence northerly along the easterly
boundaries of Lots 1923s and 2369s to the southerly boundary of Lot 1924s;
thence easterly and northerly along the southerly and easterly boundaries of
said Lot 1924s to a point due west of the southwest corner of Lot 2086s; thence
east to the southwest corner of said Lot 2086s; thence easterly and northerly
along the southerly and easterly boundaries of Lots 2086s, 2335s and 2334s to
the northeast corner of said Lot 2334s; thence due east 1.040 kilometres, more
or less, to the westerly boundary of the watershed of Boundary Creek; thence in
a general northerly and easterly direction along the westerly and northerly
boundaries of the watershed of said Boundary Creek to the southerly boundary of
the watershed of an unnamed creek, said unnamed creek flowing northeasterly into
Gable Creek at a point 320 metres west and 710 metres south of the northwest
corner of Lot 3636; thence in a general northeasterly direction along the
southerly boundary of the watershed of said unnamed creek to a point 3.000
kilometres west and 2.770 kilometres south of the northwest corner of said Lot
3636; thence south 563 metres; thence east 1.529 kilometres, more or less, to a
point indicated by a witness post marked 'NORTHERLY BOUNDARY of T.F.L. #8';
thence north 85 degrees east 805 metres, more or less, to a point indicated by a
witness post set in a rock mound and inscribed 'NE T.F.L. #8'; thence south 15
degrees east 1.207 kilometres, more or less, to the easterly boundary of the
watershed of aforesaid Boundary Creek; thence in a general southerly direction
along the easterly boundaries of the watersheds of Boundary Creek and Clement
Creek to a point 1.830 kilometres north and 50 metres east of the northwest
corner of Lot 4010s; thence west 290 metres; thence south 260 metres, more or
less, to the easterly boundary of the watershed of aforesaid Clement Creek;
thence in a general southwesterly direction along the easterly and southerly
boundaries of the watershed of said Clement Creek to a point 700 metres north
and 700 metres west of the most northerly northwest corner of Lot 860; thence
south 45 degrees east 990 metres, more or less, to the most northerly northwest
corner of said Lot 860; thence southerly, westerly and southerly along the
westerly, northerly and westerly boundaries of said Lot 860 to the northerly
boundary of Lot 1875; thence westerly and southerly along the northerly and
westerly boundaries of said Lot 1875 to the northeast corner of aforesaid Lot
2839s, being the point of commencement.
Excluding thereout all that foreshore and land covered by water within the above
described area.
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<PAGE> 49
BLOCK 2
Commencing at the southwest corner of Lot 1253s, Similkameen Division of Yale
Land District; thence westerly along the northerly boundary of Sublot 9 of Lot
3638 to the northwest corner thereof; thence south 72 degrees 30 minutes west
900 metres; thence south 472 metres; thence west 110 metres, more or less, to
the southeasterly boundary of the watershed of Carmi Creek; thence in a general
westerly direction along the southeasterly boundary of the watershed of said
Carmi Creek to a point 700 metres south and 1.980 kilometres west of the
northwest corner of Sublot 9 of aforesaid Lot 3638; thence west 500 metres;
thence south 43 degrees west 2.020 kilometres, more or less, to the easterly
boundary of the watershed of aforesaid Carmi Creek; thence in a general
southerly, westerly and northerly direction along the easterly, southerly and
westerly boundaries of the watershed of said Carmi Creek to the easterly
boundary of the watershed of Saunier Creek; thence in a general northerly
direction along the easterly boundary of the watershed of said Saunier Creek to
the westerly boundary of aforesaid Lot 3638; thence northerly along the westerly
boundary of said Lot 3638 to the northwest corner of Lot 2758s; thence north 30
degrees east 3.200 kilometres, more or less, to the easterly boundary of the
watershed of Dale Creek; thence in a general northerly direction along the
easterly boundary of the watershed of said Dale Creek to the southerly boundary
of the watershed of Wolff Creek; thence in a general easterly and northerly
direction along the southerly and easterly boundaries of the watershed of said
Wolff Creek to a point due west of the southwest corner of Lot 2763s; thence
east 1.100 kilometres, more or less, to the southwest corner of said Lot 2763s;
thence easterly and northerly along the southerly and easterly boundaries of
said Lot 2763s to the northeast corner thereof; thence north 3.600 kilometres,
more or less, to the westerly boundary of the watershed of Ptarmigan Creek;
thence in a general northerly and easterly direction along the westerly and
northerly boundaries of the watershed of said Ptarmigan Creek to the westerly
boundary of the watershed of Trapping Creek; thence in a general northerly and
easterly direction along the westerly and northerly boundaries of the watershed
of said Trapping Creek to a point 580 metres north and 4.580 kilometres west of
the northwest corner of Lot 4109s; thence south 42 degrees east 525 metres;
thence north 89 degrees 30 minutes east 720 metres; thence south 32 degrees 45
minutes east 1.435 kilometres; thence south 10 degrees west 170 metres; thence
south 67 degrees east 250 metres; thence north 53 degrees east 1.010 kilometres;
thence south 31 degrees east 840 metres; thence east 1.350 kilometres; thence
south 46
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<PAGE> 50
degrees east 200 metres; thence north 46 degrees east 161 metres; thence north
46 degrees west 110 metres; thence north 290 metres; thence east 161 metres;
thence north 70 degrees east 1.166 kilometres; thence north 1.200 kilometres;
thence north 31 degrees west 360 metres; thence north 1.368 kilometres, more or
less, to the northerly boundary of the watershed of aforesaid Trapping Creek;
thence in a general easterly and southerly direction along the northerly and
easterly boundaries of the watershed of said Trapping Creek to a point 620
metres south and 1.540 kilometres east of the southeast corner of aforesaid Lot
4109s; thence south 03 degrees east 1.420 kilometres; thence east 360 metres;
thence south 7.950 kilometres; thence west 340 metres, more or less, to the
southerly boundary of the watershed of aforesaid Trapping Creek; thence in a
general westerly and southerly direction along the southerly and easterly
boundaries of the watershed of said Trapping Creek to the westerly boundary of
the watershed of Beaverdell Creek; thence in a general southerly direction along
the westerly boundary of the watershed of said Beaverdell Creek to a point 4.640
kilometres north and 180 metres east of the northwest corner of Lot 1963s;
thence south 40 degrees east 1.006 kilometres; thence south 10 degrees west 450
metres; thence south 45 degrees west 650 metres; thence south 10 degrees west
300 metres; thence south 60 degrees west 382 metres; thence south 37 degrees 30
minutes west 200 metres, more or less, to the northerly boundary of the
watershed of aforesaid Beaverdell Creek; thence in a general northwesterly and
southwesterly direction along the northerly boundary of the watershed of said
Beaverdell Creek to a point 3.700 kilometres east and 300 metres south of the
northeast corner of Lot 2520; thence north 45 degrees west 1.318 kilometres;
thence north 75 degrees west 221 metres; thence south 53 degrees west 885
metres, more or less, to the northerly boundary of the watershed of aforesaid
Beaverdell Creek; thence in a general southwesterly direction along the
northerly boundary of the watershed of said Beaverdell Creek to a point due east
of the southeast corner of aforesaid Lot 2520; thence west to the southeast
corner of said Lot 2520; thence northerly, westerly and southerly along the
easterly, northerly and westerly boundaries of said Lot 2520 to the northerly
boundary of Sublot 1 of aforesaid Lot 3638; thence westerly along the northerly
boundaries of Sublot 1 of said Lot 3638 and Lot 482s to the easterly boundary of
Sublot 2 of said Lot 3638; thence northerly, westerly, southerly, westerly,
southerly, easterly, southerly and easterly along the easterly, northerly,
westerly, northerly, westerly, southerly, westerly and southerly boundaries of
Sublot 2 of said Lot 3638 to the westerly boundary of Lot 3095s; thence
southerly along the westerly boundary of said Lot 3095s to the northeasterly
boundary of Lot 3094s; thence northwesterly and
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<PAGE> 51
southwesterly along the northeasterly and northwesterly boundaries of said Lot
3094s to the easterly boundary of Lot 2424s; thence northerly, westerly,
southerly and easterly along the easterly, northerly, westerly and southerly
boundaries of said Lot 2424s to the southwesterly boundary of Lot 2423s; thence
southeasterly, northeasterly and northwesterly along the southwesterly,
southeasterly and northeasterly boundaries of said Lot 2423s to the
southwesterly boundary of aforesaid Lot 3094s; thence southeasterly and
northeasterly along the southwesterly and southeasterly boundaries of said Lot
3094s to the westerly boundary of Lot 3093s; thence southerly, southeasterly and
easterly along the westerly, southwesterly and southerly boundaries of said Lot
3093s to the southwest corner of Lot 3090s; thence easterly along the southerly
boundary of said Lot 3090s to the southeast corner thereof; thence due east to
the westerly boundary of Lot 3091s; thence southerly, easterly and northerly
along the westerly, southerly and easterly boundaries of said Lot 3091s to the
southerly boundary of Lot 3092s; thence easterly, northerly and westerly along
the southerly, easterly and northerly boundaries of said Lot 3092s to the
southeasterly boundary of Lot 2356; thence northeasterly along the southeasterly
boundary of said Lot 2356 to the westerly boundary of Lot 798s; thence southerly
along the westerly boundaries of Lots 798s and 1565s to the southwest corner of
said Lot 1565s; thence easterly and northerly along the southerly and easterly
boundaries of said Lot 1565s to the southerly boundary of aforesaid Lot 798s;
thence easterly along the southerly boundary of said Lot 798s to the southeast
corner thereof; thence due east to the westerly boundary of aforesaid Lot 1253s;
thence southerly along the westerly boundary of said Lot 1253s to the southwest
corner thereof, being the point of commencement.
Excluding thereout all that foreshore and land covered by water within the above
described area.
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<PAGE> 1
EXHIBIT 10.7
PROVINCE OF BRITISH COLUMBIA
TREE FARM LICENCE NO. 23
THIS LICENCE, dated March 1, 1995
BETWEEN:
THE MINISTER OF FORESTS, on behalf of
HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH COLUMBIA,
(the "Minister")
AND: POPE AND TALBOT LTD.
P.O. BOX 39
GRAND FORKS, BRITISH COLUMBIA
V0H 1H0
(the "Licensee")
WHEREAS
A. Under Section 29 of the Forest Act, this Licence replaces Tree Farm
Licence No. 23, dated January 1, 1980.
B. The portion of the allowable annual cut attributable to Schedule B Land
available to the Licensee under Tree Farm Licence No. 23, was reduced
by 20 000 m3 under Instrument 129 and under the Forest Amendment Act,
1988, was reduced by a further 43 000 m3 of which, in total, 50 000 m3
was attributed to the residual Tree Farm Licence No. 23 at the time of
the subdivision of Tree Farm Licence No. 23 to create Tree Farm Licence
No. 55.
C. As a result of the transfer of Tree Farm Licence No. 23 from Westshore
Terminals Ltd. to Pope and Talbot Ltd., the portion of the allowable
annual cut attributable to Schedule B Land, available to the Licensee,
was reduced by 30 700 m3.
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<PAGE> 2
THE PARTIES agree as follows:
1.00 GRANT OF RIGHTS AND TERM
1.01 Subject to this Licence and the Forest Act, the Minister
grants the Licensee
(a) the exclusive right during the term of this Licence
to harvest from
(i) Schedule B Land, and
(ii) Schedule A Land subject to a timber licence,
timber of the types specified in paragraph 1.02 from
the types of terrain specified in paragraph 1.03,
(b) the right to manage
(i) Schedule B Land, and
(ii) Schedule A Land subject to a timber licence,
according to the management plan and development plan
in effect under this Licence, and
(c) the right to enter and use
(i) Schedule B Land, and
(ii) Schedule A Land subject to a timber licence,
for the purpose of exercising a right or fulfilling
an obligation under this Licence.
1.02 The following types of timber are specified for the purposes
of paragraph 1.01:
(a) on Schedule A Land subject to a timber licence, all
merchantable timber; and
(b) on Schedule B Land, all types of timber other than
deciduous types.
1.03 The following types of terrain are specified for the purposes
of paragraph 1.01:
(a) on Schedule A Land subject to a timber licence, all
terrain containing merchantable timber; and
(b) on Schedule B Land, all types of terrain.
1.04 The Licensee will not harvest timber from the Licence Area
except under and in accordance with a cutting permit, road
permit, free use permit issued to the Licensee, or special use
permit.
1.05 Subject to paragraph 1.06, the Licensee will not occupy
Schedule B Land or Schedule A Land subject to a timber
licence, except under and in accordance with a cutting permit,
road permit, or special use permit authorizing such use or
occupation.
1.06 Paragraph 1.05 does not apply to temporary occupation for the
purpose of
(a) carrying out basic or incremental silviculture,
(b) collecting inventory information,
(c) doing engineering layouts and surveys,
(d) carrying out protection activities, and
(e) fulfilling other obligations of the Licensee under or
in association with this Licence.
1.07 Each year during the term of this Licence, the Regional
Manager or District Manager may dispose of the following
volumes of timber of a type specified in paragraph 1.02 from a
type of terrain specified in paragraph 1.03, provided the
timber is within areas of Schedule B Land agreed to under
paragraph 1.10 or specified under paragraph 1.11:
(a) subject to paragraph 1.15, 80 700 m3 of the allowable
annual cut, under non-replaceable timber sale
licences; and
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<PAGE> 3
(b) a volume of timber not exceeding one half of one
percent (0.5%) of the portion of the allowable annual
cut the Chief Forester determines is attributable to
Schedule B Land, under free use permits.
1.08 In addition to any timber disposed of under paragraph 1.07,
each year during the term of this Licence, the Regional
Manager or District Manager may dispose of timber of a type
specified in paragraph 1.02 from a type of terrain specified
in paragraph 1.03, under timber sale licences issued pursuant
to a pulpwood agreement, provided
(a) the timber is
(i) of the type referred to in Section 34(1)(b)
of the Forest Act,
(ii) within a pulpwood area designated by the
Minister, and
(iii) within areas of Schedule B Land agreed to
under paragraph 1.10 or specified under
paragraph 1.11, and
(b) the volume of timber disposed of does not exceed an
amount equal to the portion of the allowable annual
cut which the Chief Forester, having regard to the
factors and information considered in his or her most
recent determination of the allowable annual cut,
determines is attributable to timber of the type
referred to in clause (a)(i).
1.09 Subject to paragraph 1.17, in addition to any timber disposed
of under paragraph 1.07 and 1.08, the Regional Manager or
District Manager may dispose of any timber in the Licence Area
that
(a) is not of a type specified in paragraph 1.02, or
(b) is not from a type of terrain specified in
paragraph 1.03,
provided the timber is within areas of Schedule B Land agreed
to under paragraph 1.10, or specified under paragraph 1.11.
1.10 Subject to paragraph 1.11, the District Manager and the
Licensee will agree upon areas of Schedule B Land for the
purposes of paragraphs 1.07, 1.08, 1.09 and 1.16, having
regard to
(a) the type and quality of timber on the area of
Schedule B Land under consideration compared to the
Schedule B Land as a whole,
(b) the type of terrain on the area of Schedule B Land
under consideration compared to the Schedule B Land
as a whole,
(c) in the case of paragraph 1.08, the type of timber
referred to in Section 34(1)(b) of the Forest Act,
(d) in the case of paragraph 1.16, the nature of the
Licensee's failure to comply with the management
plan,
(e) the management plan and development plan in effect
under this Licence,
(f) any potential interference with the operations of the
Licensee under this Licence, and
(g) use of the Licence Area for purposes other than
timber production, including use of the Licence Area
by
(i) trappers, guide outfitters, range tenure
holders, and other licensed resource users,
and
(ii) aboriginal people carrying out aboriginal
activities.
1.11 If under paragraph 1.10 the District Manager and the Licensee
are unable to agree upon areas of Schedule B Land for the
purposes of paragraph 1.07, 1.08, 1.09 or 1.16, the District
Manager or the Licensee may refer the matter to the Regional
Manager, in which case, the Regional Manager, subject to
paragraph 1.14, and having regard to
(a) the factors referred to in paragraph 1.10, and
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<PAGE> 4
(b) the recommendations of the District Manager and the
Licensee,
will specify areas for these purposes.
1.12 Subject to paragraphs 1.13 and 1.14, the Minister in a notice
given to the Licensee may delete an area from Schedule B Land
to enable the Regional Manager or District Manager to issue a
woodlot licence or community forest over the area, if the
Chief Forester determines that the portion of the allowable
annual cut attributable to the area does not exceed the volume
of timber referred to in subparagraph 1.07(a), having regard
to the factors and information considered by the Chief
Forester in his or her most recent determination of the
allowable annual cut.
1.13 Before deleting an area under paragraph 1.12, the Minister
will consult the Licensee and consider any recommendations
made by the Licensee.
1.14 The Regional Manager will only specify an area under paragraph
1.11, and the Minister will only delete an area under
paragraph 1.12, where the Regional Manager or the Minister, as
the case may be, is satisfied that specifying or deleting the
area will not
(a) compromise the management plan and development plan
in effect under this Licence, or
(b) unreasonably interfere with the Licensee's operations
under this Licence.
1.15 Where the Minister deletes an area under paragraph 1.12,
(a) the volume of timber referred to in subparagraph
1.07(a), and
(b) the allowable annual cut,
is deemed to be reduced by an amount equal to the portion of
the allowable annual cut that the Chief Forester determines is
attributable to the deleted area, having regard to the factors
and information considered by the Chief Forester in his or her
most recent determination of the allowable annual cut.
1.16 If
(a) a management plan referred to in paragraph 2.01 or
approved under paragraph 2.27 provides that part of
the allowable annual cut is to be harvested from a
specified part of the Licence Area or from a
specified type of timber or terrain, and the Licensee
fails to comply with that provision, and
(b) as a consequence, the Chief Forester, under Section
55.5 of the Forest Act, reduces the allowable annual
cut available to the Licensee,
then, in addition to any timber disposed of under paragraphs
1.07, 1.08 and 1.09, the Regional Manager or the District
Manager may dispose of a volume of timber, from areas of
Schedule B Land agreed to under paragraph 1.10 or specified
under paragraph 1.11, up to an amount equal to the amount by
which the Chief Forester reduces the allowable annual cut
under Section 55.5 of the Forest Act multiplied by the number
of years the reduction remains in effect.
1.17 The Licensee may harvest timber in the Licence Area that
(a) is not of a type specified in paragraph 1.02, or
(b) is not from a type of terrain specified in
paragraph 1.03,
provided the Licensee is authorized to do so under a cutting
cutting permit issued under Part 5.00.
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<PAGE> 5
1.18 If an area of Schedule A Land is
(a) subject to a timber licence that expires, or
(b) deleted from a timber licence,
then the area is deemed to be deleted from Schedule A Land and
added to Schedule B Land.
1.19 The term of this Licence is 25 years, beginning March 1, 1995.
2.00 MANAGEMENT PLANS
2.01 A management plan
(a) approved under the tree farm licence replaced by this
Licence, and
(b) still in effect on the date immediately preceding the
date on which that tree farm licence expires,
is deemed for the remainder of the term of the management plan
to be the management plan in effect under this Licence.
2.02 If there is no approved management plan in effect under the
tree farm licence replaced by this Licence on the date
immediately preceding the date on which that tree farm licence
expires, then solely for the purposes of
(a) inviting comments under subparagraph 2.05(a) and
providing an assessment under subparagraph 2.08(a),
and
(b) determining the deadlines for
(i) inviting comments under subparagraph
2.05(a),
(ii) submitting a review strategy under
subparagraph 2.05(b),
(iii) providing an assessment under clause
2.08(a)(i),
(iv) submitting a summary under subparagraph
2.08(b),
(v) submitting a Statement of Management
Objectives, Options and Procedures under
paragraph 2.09,
(vi) referring a draft management plan and
inviting comments under paragraph 2.24, and
(vii) submitting a proposed management plan under
paragraph 2.26,
the parties will proceed as if the management plan which was
last in effect under that tree farm licence is the management
plan in effect under this Licence and, subject to paragraph
2.04, is due to expire 28 months after the date referred to in
paragraph 1.19.
2.03 If the management plan deemed under paragraph 2.01 to be the
management plan in effect under this Licence is due to expire
less than 28 months after the date referred to in paragraph
1.19, then solely for the purpose of determining the deadlines
for
(a) inviting comments under subparagraph 2.05(a),
(b) submitting a review strategy under subparagraph
2.05(b), if applicable,
(c) providing an assessment under clause 2.08(a)(i),
(d) submitting a summary under subparagraph 2.08(b),
(e) submitting a Statement of Management Objectives,
Options and Procedures under paragraph 2.09,
(f) referring a draft management plan and inviting
comments under paragraph 2.24, and
(g) submitting a proposed management plan under paragraph
2.26,
the parties will proceed as if, subject to paragraph 2.04,
the management plan in effect under this Licence is due to
expire 28 months after the date referred to in paragraph 1.19.
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2.04 If
(a) either
(i) there is no approved management plan in
effect under the tree farm licence replaced
by this Licence on the date immediately
preceding the date on which that tree farm
licence expires, or
(ii) the management plan deemed under paragraph
2.01 to be the management plan in effect
under this Licence is due to expire less
than 28 months after the date referred to in
paragraph 1.19, and
(b) the Chief Forester is satisfied that a requirement or
obligation referred to in this Part has been met or
fulfilled under the tree farm licence replaced by
this Licence,
then the Chief Forester, in a notice given to the Licensee,
may
(c) specify the requirement or obligation that has been
met or fulfilled and deem that requirement or
obligation to have been met or fulfilled under this
Licence, and
(d) if a period of less than 28 months is sufficient for
the purpose of establishing a deadline referred to in
subparagraph 2.02(b) or paragraph 2.03, specify a
period less than 28 months which is sufficient for
this purpose.
2.05 Not less than 28 months prior to the date on which the
management plan in effect under this Licence is due to expire,
(a) the Licensee will
(i) publish at least twice within a period of
two consecutive weeks in a newspaper
acceptable to the Regional Manager, an
advertisement inviting comments regarding
(A) the management plan in effect under
this Licence, and
(B) the Licensee's performance in
respect of that management plan,
and
(ii) make a copy of the management plan in effect
under this Licence available for review by
interested persons
(A) during normal business hours, and
(B) at the Licensee's place of business
in the vicinity of the Licence Area
or, if the Licensee so chooses, at
another location which is
convenient to the public and
acceptable to the Regional Manager,
for a period of one month, or longer if the
Licensee so chooses, beginning at least one
week after the last publication of the
advertisement referred to in clause (i), and
(b) if there is no management plan in effect under this
Licence, or if the management plan in effect under
this Licence does not include a review strategy for
(i) the Statement of Management Objectives,
Options and Procedures referred to in
paragraph 2.09,
(ii) the draft management plan referred to in
paragraph 2.24,
(iii) the statement of objectives referred to in
paragraph 3.01, or
(iv) the statement of proposals referred
to in paragraph 3.02,
the Licensee will submit to the Regional Manager a
review strategy complying with the requirements of
paragraph 6.01 for the Statement of Management
Objectives, Options and Procedures, the draft
management plan, the statement of objectives referred
to in paragraph 3.01, and the statement of proposals
referred to in paragraph 3.02, as applicable.
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2.06 The Regional Manager, within two months after the date on
which the Regional Manager receives a review strategy
submitted under subparagraph 2.05(b) or 2.07(b), will in a
notice given to the Licensee approve the review strategy,
subject to such conditions as the Regional Manager considers
necessary or appropriate, if the Regional Manager is satisfied
that the review strategy meets the requirements of paragraph
6.01.
2.07 Where the Regional Manager does not approve a review strategy
under paragraph 2.06,
(a) the Regional Manager, within two months after the
date on which the Regional Manager receives the
review strategy, will specify in a notice given to
the Licensee why the Regional Manager has not
approved the review strategy, and
(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will submit a new or revised review
strategy to the Regional Manager.
2.08 Not less than 26 months prior to the date on which the
management plan in effect under this Licence is due to expire,
(a) the Regional Manager will provide the Licensee with
(i) an assessment of
(A) the management plan in effect under
this Licence, and
(B) the Licensee's performance in
respect of that management plan,
and
(ii) a list of
(A) guidelines,
(B) land and resource management plans,
and
(C) local resource use plans,
currently in effect, and
(b) the Licensee will submit to the Regional Manager a
summary of the comments received by the Licensee in
complying with subparagraph 2.05(a).
2.09 The Licensee, not less than 22 months prior to the date on
which the management plan in effect under this Licence is due
to expire, will submit to the Regional Manager
(a) a Statement of Management Objectives, Options and
Procedures which has been referred to resource
agencies and made available for comment in accordance
with the review strategy approved
(i) in the management plan in effect under this
Licence, or
(ii) under paragraph 2.06,
as the case may be, and
(b) a summary of
(i) all comments received by the Licensee in
complying with the review strategy referred
to in subparagraph (a), and
(ii) the modifications, if any, made to the
Statement of Management Objectives, Options
and Procedures, prior to its submission to
the Regional Manager, in response to the
comments referred to in clause (i).
2.10 A Statement of Management Objectives, Options and Procedures
submitted under paragraph 2.09 or subparagraph 2.12(b) must
(a) be prepared by a professional forester in accordance
with the applicable manual in effect four months
prior to the deadline for submitting the Statement of
Management Objectives, Options and Procedures under
paragraph 2.09 or subparagraph 2.12(b), as the case
may be,
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(b) summarize the commitments which
(i) were made by the Licensee
(A) in the application on which the
award of the tree farm licence
replaced by this Licence or any
predecessor to that tree farm
licence was based,
(B) in accepting the offer of the tree
farm licence replaced by this
Licence or any predecessor to that
tree farm licence, or
(C) as a result of a request for the
Minister's consent for the purposes
of Section 50 of the Forest Act,
and
(ii) remain in effect at the time the Statement
of Management Objectives, Options and
Procedures is submitted,
(c) identify the inadequacies, if any, in the information
to be included in the inventories referred to in
subparagraph 2.25(d),
(d) propose management objectives for the Licence Area,
and identify management options, regarding
(i) utilization of the timber resources,
including harvesting methods and utilization
standards suitable to the types of timber
and terrain specified in paragraphs 1.02 and
1.03,
(ii) conservation of the non-timber values and
resources, including visual quality,
biodiversity, soils, water, recreation
resources, cultural heritage resources,
range land, and wildlife and fish habitats,
(iii) integration of harvesting activities with
use of the Licence Area for purposes other
than timber production, including use of the
Licence Area by
(A) trappers, guide outfitters, range
tenure holders, and other licensed
resource users, and
(B) aboriginal people carrying out
aboriginal activities,
(iv) forest fire prevention and suppression,
prescribed fire, and fuel management,
(v) forest health, including disease and pest
management,
(vi) road construction, maintenance and
deactivation,
(vii) basic silviculture and, if applicable,
incremental silviculture, and
(viii) any issues identified
(A) by the Licensee,
(B) by the Regional Manager in the
assessment referred to in clause
2.08(a)(i), or
(C) in the comments referred
to in subparagraph 2.08(b),
which are consistent with the guidelines, land and
resource management plans, and local resource use
plans referred to in clause 2.08(a)(ii), and the
commitments referred to in subparagraph (b),
(e) identify inadequacies referred to in subparagraph (c)
and issues referred to in clause (d)(viii) which will
require further study or analysis, and indicate what,
if any, studies or analyses the Licensee will carry
out,
(f) identify issues referred to in clause (d)(viii) which
will be addressed in the management objectives and
strategies in the draft management plan referred to
in paragraph 2.24 and proposed management plan
referred to in paragraph 2.26, and
(g) identify management options referred to in
subparagraph (d) which the Licensee proposes to
assess in the timber supply analysis.
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2.11 The Regional Manager, within three months after the date on
which the Regional Manager receives a Statement of Management
Objectives, Options and Procedures submitted under paragraph
2.09, or two months after the date on which the Regional
Manager receives a Statement of Management Objectives, Options
and Procedures submitted under subparagraph 2.12(b), will in a
notice given to the Licensee accept the Statement of
Management Objectives, Options and Procedures, subject to such
conditions as the Regional Manager considers necessary or
appropriate, if
(a) the Statement of Management Objectives, Options and
Procedures meets the requirements of paragraph 2.10,
and
(b) the Regional Manager is satisfied that the Licensee
has
(i) adequately addressed the inadequacies
referred to in subparagraph 2.10 (c), the
issues referred to in clause 2.10(d)(viii),
and the comments referred to in clause
2.09(b)(i), and
(ii) selected appropriate management options for
assessment in the timber supply analysis.
2.12 Where the Regional Manager does not accept a Statement of
Management Objectives, Options and Procedures under paragraph
2.11,
(a) the Regional Manager, within three months after the
date on which the Regional Manager receives a
Statement of Management Objectives, Options and
Procedures submitted under paragraph 2.09, or two
months after the date on which the Regional Manager
receives a Statement of Management Objectives,
Options and Procedures submitted under subparagraph
2.12(b), will specify in a notice given to the
Licensee why the Regional Manager has not accepted
the Statement of Management Objectives, Options and
Procedures, and
(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will submit a new or revised
Statement of Management Objectives, Options and
Procedures to the Regional Manager.
2.13 Where the Regional Manager accepts a Statement of Management
Objectives, Options and Procedures under paragraph 2.11, the
Licensee, within three months after the date on which the
Statement of Management Objectives, Options and Procedures is
accepted, will submit a Timber Supply Analysis Information
Package to the Timber Supply Forester.
2.14 A Timber Supply Analysis Information Package submitted under
paragraph 2.13 must
(a) include the information required in the applicable
manual in effect six months prior to the deadline for
submitting the Timber Supply Analysis Information
Package,
(b) identify assumptions the Licensee proposes to
incorporate into the timber supply analysis referred
to in subparagraph 2.17(a) which, subject to
paragraph 2.33, are consistent with
(i) the management objectives proposed in the
Statement of Management Objectives, Options
and Procedures accepted under paragraph
2.11, and
(ii) the guidelines, land and resource management
plans and local resource use plans referred
to in clause 2.08(a)(ii),
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(c) without restricting the generality of subparagraph
(b), identify assumptions the Licensee proposes to
incorporate into the timber supply analysis referred
to in subparagraph 2.17(a) regarding
(i) the inventory of timber and non-timber
resources in the Licence Area,
(ii) growth and yield,
(iii) regeneration delays,
(iv) silviculture treatments,
(v) integrated resource management constraints,
(vi) harvesting methods and utilization
standards, and
(vii) the operable land base,
(d) describe the methodology, including the computer
model, if any, that the Licensee proposes to use in
the timber supply analysis, including a description
of the extent to which the assumptions referred to in
subparagraphs (b) and (c) are reflected in the
methodology,
(e) include information which supports the assumptions
referred to in subparagraphs (b), (c) and (d),
(f) describe how the Licensee proposes to address in the
timber supply analysis any inadequacies referred to
in subparagraph 2.10(c), and
(g) include any other information readily available to
the Licensee, which
(i) the Licensee, or
(ii) the Timber Supply Forester, in a notice
given to the Licensee within one month after
the date on which the Licensee is given the
notice accepting the Statement of Management
Objectives, Options and Procedures under
paragraph 2.11,
considers relevant to an assessment of the impact on
the timber supply of the management options referred
to subparagraph 2.10(g).
2.15 The Timber Supply Forester, within three months after the date
on which the Timber Supply Forester receives the Timber Supply
Analysis Information Package submitted under paragraph 2.13,
or two months after the date on which the Timber Supply
Forester receives the information or proposals submitted under
subparagraph 2.16(b), will in a notice given to the Licensee
accept the assumptions and the methodology referred to in
paragraph 2.14 and, if applicable, subparagraph 2.16(b) for
use in the timber supply analysis, subject to such conditions
as the Timber Supply Forester considers necessary or
appropriate, if
(a) the requirements of paragraph 2.14 and, if
applicable, subparagraph 2.16(b) have been met, and
(b) the Timber Supply Forester is satisfied with the
information provided in support of the assumptions
and methodology.
2.16 Where the Timber Supply Forester does not accept both the
assumptions and the methodology under paragraph 2.15,
(a) the Timber Supply Forester, within three months after
the date on which the Timber Supply Forester receives
the Timber Supply Analysis Information Package
submitted under paragraph 2.13, or two months after
the date on which the Timber Supply Forester receives
the information or proposals submitted under
subparagraph 2.16(b), will specify in a notice given
to the Licensee why the Timber Supply Forester has
not accepted the assumptions, the methodology or
both, and
(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will
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(i) propose new or revised assumptions,
(ii) propose a new or revised methodology, and
(iii) submit further information in support of the
assumptions, the methodology or both,
as required by the Timber Supply Forester.
2.17 Where the Timber Supply Forester accepts the assumptions and
the methodology under paragraph 2.15, the Licensee, within
three months after the date on which the assumptions and the
methodology are accepted, will submit
(a) a timber supply analysis to the Timber Supply
Forester, and
(b) a 20-year plan to the District Manager.
2.18 A timber supply analysis submitted under subparagraph 2.17(a)
or 2.22(b) must
(a) assess the impact of the management options referred
to in subparagraph 2.10(g) on the timber supply, and
(b) subject to paragraph 2.33,
(i) be based on the assumptions, and
(ii) use the methodology,
accepted by the Timber Supply Forester under
paragraph 2.15.
2.19 A 20-year plan submitted under subparagraph 2.17(b) or 2.23(b)
must
(a) identify
(i) the net operable land base,
(ii) harvested areas,
(iii) existing and proposed road access within the
net operable landbase, and
(iv) areas subject to specific integrated
resource management constraints,
(b) categorize areas within the operable land base
referred to in clause (a)(i) by
(i) the harvesting methods suitable to the
terrain, and
(ii) the type and, where the information is
available to the Licensee, quality of
timber, and
(c) in support of the timber supply analysis, set out a
sequence of cut blocks in 5 year increments over a
period of 20 years, or longer if the Licensee so
chooses, which, subject to paragraph 2.33, is
(i) based on a management option selected by the
Licensee from the management options
referred to in subparagraph 2.18(a), and
(ii) consistent with
(A) the management objectives proposed
in the Statement of Management
Objectives, Options and Procedures
accepted under paragraph 2.11, and
(B) the guidelines, land and resource
management plans and local resource
use plans referred to in clause
2.08(a)(ii).
2.20 The Timber Supply Forester, within three months after the date
on which the Timber Supply Forester receives a timber supply
analysis submitted under subparagraph 2.17(a), or two months
after the date the Timber Supply Forester receives a timber
supply analysis submitted under subparagraph 2.22(b), will
(a) in a notice given to the Licensee accept the timber
supply analysis, subject to such conditions as the
Timber Supply Forester considers necessary or
appropriate, if the timber supply analysis meets the
requirements of paragraph 2.18, and
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(b) where the Timber Supply Forester accepts the timber
supply analysis under subparagraph (a), provide the
Licensee with an assessment of the strengths and
weakness of the timber supply analysis.
2.21 The District Manager, within three months after the date on
which the District Manager receives a 20-year plan submitted
under subparagraph 2.17(b), or two months after the date on
which the District Manager receives a 20-year plan submitted
under 2.23(b), will
(a) in a notice given to the Licensee accept the 20-year
plan, subject to such conditions as the District
Manager considers necessary or appropriate, if the
20-year plan meets the requirements of paragraph
2.19, and
(b) where the District Manager accepts the 20-year plan
under subparagraph (a), provide the Licensee with an
assessment of the strengths and weakness of the
20-year plan.
2.22 Where the Timber Supply Forester does not accept a timber
supply analysis under paragraph 2.20,
(a) the Timber Supply Forester, within three months after
the date on which the Timber Supply Forester receives
a timber supply analysis submitted under subparagraph
2.17(a), or two months after the date on which the
Timber Supply Forester receives a timber supply
analysis submitted under subparagraph 2.22(b), will
specify in a notice given to the Licensee why the
Timber Supply Forester has not accepted the timber
supply analysis, and
(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will submit a new or revised timber
supply analysis to the Timber Supply Forester.
2.23 Where the District Manager does not accept a 20-year plan
under paragraph 2.21,
(a) the District Manager, within three months after the
date on which the District Manager receives a 20-year
plan submitted under subparagraph 2.17(b), or two
months after the date on which the District Manager
receives a 20-year plan submitted under 2.23(b), will
specify in a notice given to the Licensee why the
District Manager has not accepted the 20-year plan,
and
(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will submit a new or revised
20-year plan to the District Manager.
2.24 Not less than six months prior to the date on which the
management plan in effect under this Licence is due to expire,
the Licensee will
(a) refer a draft management plan to the Regional Manager
for comment, and
(b) at the same time, refer the draft management plan
referred to in subparagraph (a) to resource agencies
and make it available for comment in accordance with
the review strategy approved
(i) in the management plan in effect under this
Licence, or
(ii) under paragraph 2.06,
as the case may be.
2.25 A draft management plan referred to in paragraph 2.24 or
subparagraph 2.37(a) and a proposed management plan submitted
by the Licensee under paragraph 2.26, subparagraph 2.30(b), or
subparagraph 2.37(b) must
(a) be prepared by a professional forester in accordance
with the applicable manual in effect four months
prior to the deadline for submitting the draft
management plan under paragraph 2.24 or subparagraph
2.37(a), as the case may be,
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(b) be signed and sealed by the professional forester who
prepared it, and signed by the Licensee or an
authorized signatory of the Licensee,
(c) be consistent with this Licence and, subject to
paragraph 2.33, the Statement of Management
Objectives, Options and Procedures accepted under
paragraph 2.11,
(d) include inventories, meeting the standards and
presented in the format set or approved in the
applicable manual in effect six months prior to the
deadline for submitting the Timber Supply Analysis
Information Package, of
(i) the forest and recreation resources in the
Licence Area, based on information collected
for this purpose by the Licensee, including
information relating to visual quality
objectives, sensitive soils, recreation
sites, and the type of timber and terrain,
and
(ii) the fisheries, wildlife, range and cultural
heritage resources of the Licence Area,
based on the best information readily
available to the Licensee,
(e) include proposals for updating the inventories
referred to in subparagraph (d) and, if applicable,
addressing inadequacies in the inventory information,
(f) include proposals for
(i) developing timber harvesting operations on
the Licence Area,
(ii) protecting the forest in the Licence Area
from damage by fire, pests, wind and
disease, and
(iii) carrying out
(A) basic silviculture required under
the Forest Act, and
(B) such incremental silviculture as
the Licensee considers desirable,
(g) specify measures to be taken, specifications to be
followed, and standards to be met by the Licensee in
the Licence Area to provide for
(i) utilization of the timber resources,
including harvesting methods and utilization
standards suitable to the types of timber
and terrain specified in paragraphs 1.02 and
1.03,
(ii) conservation of the non-timber values and
resources, including visual quality,
biodiversity, soils, water, recreation
resources, cultural heritage resources,
range land, and wildlife and fish habitats,
(iii) integration of harvesting activities with
use of the Licence Area for purposes other
than timber production, including use of the
Licence Area by
(A) trappers, guide outfitters, range
tenure holders, and other licensed
resource users, and
(B) aboriginal people carrying out
aboriginal activities,
(iv) forest fire prevention and suppression,
prescribed fire, and fuel management,
(v) forest health, including disease and pest
management,
(vi) road construction, maintenance and
deactivation,
(vii) basic silviculture and, if applicable,
incremental silviculture, and
(viii) anything else relating to the management,
development and use of the Licence Area as
the Chief Forester requires,
which, subject to paragraph 2.33, meet or, if the
Licensee so chooses, exceed the applicable measures,
standards or specifications contained or reflected in
the guidelines, land and resource management plans,
and local resource use plans referred to in clause
2.08(a)(ii),
(h) specify measures to be taken by the Licensee to
identify and consult with trappers, guide outfitters,
range tenure holders, and other licensed resource
users operating in the Licence Area,
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(i) specify measures to be taken by the Licensee to
identify and consult with aboriginal people who are
or who may be carrying out aboriginal activities in
the Licence Area,
(j) include
(i) the Statement of Management Objectives,
Options and Procedures accepted under
paragraph 2.11, including revisions, if any,
required under paragraph 2.33,
(ii) either
(A) the timber supply analysis accepted
under paragraph 2.20, together with
the assessment referred to in
subparagraph 2.20(b), or
(B) where no timber supply analysis has
been accepted, a draft timber
supply analysis prefaced with a
statement to the effect that the
draft timber supply analysis has
not been submitted under
subparagraph 2.17(a) or accepted
under paragraph 2.20, as
applicable, and
(iii) either
(A) the 20-year plan accepted under
paragraph 2.21, together with the
assessment referred to in
subparagraph 2.21(b), or
(B) where no 20-year plan has been
accepted, a draft 20-year plan
prefaced with a statement to the
effect that the draft 20-year plan
has been not submitted under
subparagraph 2.17(b) or accepted
under paragraph 2.21, as
applicable,
(k) assess the impact the draft management plan or
proposed management plan, as the case may be, will
have on factors such as harvest levels, economic
opportunies, the number of persons employed by the
Licensee and contractors of the Licensee, and the
conservation of non-timber values,
(l) highlight the key similarities and differences
between the draft management plan or the proposed
management plan, as the case may be, and the
management plan in effect or last in effect under
this Licence, and in a summary form compare
(i) the impact, if any, that implementation of
the management plan in effect or last in
effect under this Licence had, and
(ii) the impact, if any, that the Licensee
anticipates implementation of the draft
management plan or the proposed management
plan, as the case may be, will have
on factors such as those referred to in subparagraph
(k),
(m) propose a review strategy, complying with the
requirements of paragraphs 6.01 and 6.03, for
(i) the next Statement of Management Objectives,
Options and Procedures to be submitted under
paragraph 2.09,
(ii) the next draft management plan to be
submitted under paragraph 2.24,
(iii) the next statement of objectives referred to
in paragraph 3.01,
(iv) the next statement of proposals referred to
in paragraph 3.02, and
(v) proposed development plans to be submitted
under Part 4.00,
(n) if applicable, provide that part of the allowable
annual cut will be harvested from a specified part of
the Licence Area, or from a specified type of timber
or terrain,
(o) include such other information on the development,
management and use of the Licence Area as the Chief
Forester requires, and
(p) if required in the manual referred to in subparagraph
(a), provide some or all of the information referred
to in this paragraph in the form of maps meeting the
requirements of the manual.
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2.26 The Licensee, not less than three months prior to the date on
which the management plan in effect under this Licence is due
to expire, will submit to the Chief Forester
(a) a proposed management plan which is based on the
draft management plan referred to in paragraph 2.24,
and
(b) a summary of
(i) all comments
(A) provided by the Regional Manager
within two months of date on which
the Regional Manager receives a
draft management plan referred to
the Regional Manager in accordance
with the requirements of
subparagraph 2.24(a), and
(B) received by the Licensee in
complying with the requirements of
subparagraph 2.24(b), and
(ii) the differences, if any, between the draft
management plan and the proposed management
plan, including differences resulting from
modifications made in response to the
comments referred to in clause (i).
2.27 Subject to paragraphs 2.28 and 2.29, the Chief Forester,
within three months after the date on which the Chief Forester
receives a proposed management plan submitted under paragraph
2.26, subparagraph 2.30(b) or subparagraph 2.37(b), will in a
notice given to the Licensee approve the proposed management
plan, subject to such conditions as the Chief Forester
considers necessary or appropriate, if
(a) the Chief Forester is satisfied that the proposed
management plan
(i) meets the requirements of paragraph 2.25 and
subparagraph 2.26(a) or clause 2.37(b)(i),
as the case may be, and
(ii) adequately addresses the comment referred to
in clause 2.26(b)(i) or subclause
2.37(b)(ii)(A), as the case may be, and
(b) the proposed management plan includes
(i) inventories referred to subparagraph
2.25(d),
(ii) proposals referred to in subparagraph
2.25(e) and (f),
(iii) measures referred to in subparagraphs
2.25(h) and (i), and
(iv) a review strategy referred to in
subparagraph 2.25(m),
which are satisfactory to the Chief Forester.
2.28 The Chief Forester, in a notice given to the Licensee, may
decline to approve a proposed management plan under paragraph
2.27 until such time as
(a) a timber supply analysis is accepted under paragraph
2.20, or
(b) a 20-year plan is accepted under paragraph 2.21.
2.29 Where a timber supply analysis accepted under paragraph 2.20
or a 20-year plan accepted under paragraph 2.21 was not
included in the draft management plan referred to in paragraph
2.24, before approving a proposed management plan under
paragraph 2.27, the Chief Forester, in a notice given to the
Licensee, may require the Licensee to refer the timber supply
analysis or the 20-year plan, as the case may be, and make it
available for comment in accordance with the review strategy
referred to in paragraph 2.24.
2.30 Where the Chief Forester does not approve a proposed
management plan under paragraph 2.27,
(a) subject to paragraphs 2.28 and 2.29, the Chief
Forester, within three months after the date on which
the Chief Forester receives the proposed management
plan, will specify in a notice given to the Licensee
why the Chief Forester has not approved the proposed
management plan, and
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(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will submit a new or revised
proposed management plan to the Chief Forester.
2.31 Subject to paragraphs 2.28 and 2.29, if
(a) the Chief Forester, within three months after the
date on which the Chief Forester receives a proposed
management plan submitted under paragraph 2.26, has
neither
(i) approved the proposed management plan under
paragraph 2.27, nor
(ii) given the Licensee a notice referred to in
subparagraph 2.30(a), and
(b) there is a management plan in effect under this
Licence,
then the term of that management plan referred to in
subparagraph (b) is deemed to be extended until such time as
the Chief Forester approves the proposed management plan under
paragraph 2.27, or gives the Licensee a notice referred to in
subparagraph 2.30(a), as the case may be.
2.32 If the Chief Forester is satisfied that the Licensee or a
ministry officer is trying in good faith to fulfill a
requirement or obligation under this Part, but for reasons
beyond the control of the Licensee or the ministry officer, as
the case may be, cannot
(a) meet a deadline referred to in this Part, or
(b) where there is a management plan in effect under this
Licence, fulfill the requirement or obligation before
the management plan is due to expire,
then the Chief Forester, in a notice given to the Licensee,
will, as applicable,
(c) extend the deadline by a period the Chief Forester
considers sufficient to allow the ministry officer or
the Licensee, as the case may be, to fulfill the
requirement or obligation, or
(d) extend the term of the management plan by a period
the Chief Forester considers sufficient to allow the
ministry officer or the Licensee, as the case may be,
to fulfill the requirement or obligation in
accordance with applicable deadlines,
subject to such conditions as the Chief Forester considers
necessary or appropriate.
2.33 If the Licensee
(a) submits a Timber Supply Analysis Information Package
under paragraph 2.13, or the information or proposals
referred to in subparagraph 2.16(b) more than eight
months,
(b) submits a timber supply analysis under subparagraph
2.17(a) or 2.22(b), or a 20-year plan under
subparagraph 2.17(b) or 2.23(b) more than 13 months,
(c) submits a draft management plan under paragraph 2.24
more than 19 months, or
(d) submits a proposed management plan under paragraph
2.26 or subparagraph 2.30(b) more than 22 months,
after the date on which the Statement of Management
Objectives, Options and Procedures is accepted under paragraph
2.11, the Chief Forester, in a notice given to the Licensee
within one month of the date on which the applicable item is
submitted, may require the Licensee to amend both the
Statement of Management Objectives, Options and Procedures,
and one or more the items referred to in subparagraph (a)
through (d) inclusive, to the extent required to ensure
consistency with
(e) guidelines,
(f) land and resource management plans, and
(g) local resource use plans,
in effect on the date the Licensee is given the notice.
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2.34 If the Chief Forester considers that
(a) damage to timber in the Licence Area as a result of
fire, flood, wind, insects, disease, or other causes,
(b) a determination by the Chief Forester that operations
conducted in accordance with the management plan are
causing or could cause serious damage to the natural
environment, including soils, fisheries, wildlife,
water, range, and recreation resources,
(c) approval, amendment or replacement of a land and
resource management plan,
(d) approval, amendment or replacement of a local
resource use plan,
(e) a change in the allowable annual cut as a result of a
determination by the Chief Forester under the Forest
Act, or
(f) other special circumstances,
have rendered the management plan in effect under the Licence
inadequate, the Chief Forester, in a notice given to the
Licensee, may require that the management plan be amended.
2.35 A notice referred to in paragraph 2.34 must specify
(a) why the Chief Forester considers the management plan
has been rendered inadequate,
(b) the extent to which the management plan is
inadequate, and
(c) the changes required by the Chief Forester.
2.36 Where the Chief Forester gives the Licensee a notice referred
to in paragraph 2.34, the Licensee, within three months after
the date on which the notice is given, will submit for the
Chief Forester's approval a proposed amendment to the
management plan, which incorporates the changes referred to in
subparagraph 2.35(c), to have effect during the unexpired term
of the management plan.
2.37 If the Licensee fails to comply with the requirements of
paragraph 2.36, the management plan in effect under this
Licence will expire three months after the date on which the
notice referred to in paragraph 2.34 is given to the Licensee,
in which case,
(a) within three months after the date on which the
management plan expires under this paragraph, the
Licensee will
(i) refer a draft management plan to the
Regional Manager and
(ii) at the same time, refer the draft management
plan referred to in clause (i) to resource
agencies and make it available for comment
in accordance with the review strategy
referred to in subparagraph 2.24(b), and
(b) within six months after the date on which the
management plan expires under this paragraph, the
Licensee will submit to the Chief Forester
(i) a proposed management plan which is based on
the draft management plan referred to in
subparagraph (a), and
(ii) a summary of
(A) all comments received by the
Licensee in complying with the
requirements of subparagraph (a),
and
(B) the differences, if any, between
the draft management plan and the
proposed management plan, including
differences resulting from
modifications made in response to
the comments referred to in
subclause (A).
2.38 The Licensee will implement the management plan in effect
under this Licence.
2.39 A management plan is deemed to be part of this Licence.
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2.40 Subject to paragraphs 2.31, 2.32, and 2.37, a management plan
expires five years after the date on which it takes effect.
3.00 OBJECTIVES AND STRATEGIES FOR EMPLOYMENT AND ECONOMIC OPPORTUNITIES
3.01 When the Licensee submits a Statement of Management
Objectives, Options and Procedures under paragraph 2.09, the
Licensee will also submit to the Regional Manager
(a) a statement of the Licensee's objectives regarding
(i) employment of people living in or near the
Licence Area, including aboriginal people,
and
(ii) economic opportunities available to people
living in or near the Licence Area,
including aboriginal people, in respect of
the timber harvested under this Licence and
the Licensee's operations under and in
respect of this Licence,
which has been referred to resource agencies and made
available for comment in accordance with the review
strategy approved
(iii) in the management plan in effect under this
Licence, or
(iv) under paragraph 2.06, as the case may be,
and
(b) a summary of
(i) all comments received by the Licensee in
complying with the review strategy referred
to in subparagraph (a), and
(ii) the modifications, if any, made to the
statement of objectives, prior to its
submission to the Regional Manager, in
response to the comments referred to in
clause (i).
3.02 When the Licensee refers a draft management plan and makes it
available for comment under paragraph 2.24, the Licensee will
also refer and make available in accordance with
(a) the review strategy approved in the management plan
in effect under this Licence, or
(b) under paragraph 2.06,
as the case may be, a statement of the Licensee's proposals
for meeting the objectives set out in the statement of
objectives submitted under paragraph 3.01.
3.03 When the Licensee submits a proposed management plan under
paragraph 2.26, the Licensee will also submit to the Chief
Forester
(a) a statement of proposals based on the statement of
proposals referred to in paragraph 3.02, and
(b) a summary of
(i) all comments received by the Licensee in
complying with the requirements of paragraph
3.02, and
(ii) the differences, if any, between the
statement of proposals submitted under this
paragraph and the statement of proposals
referred to in paragraph 3.02, including
differences resulting from modifications
made in response to the comments referred to
in clause (i).
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4.00 DEVELOPMENT PLANS
4.01 A five-year development plan approved under the tree farm
licence replaced by this Licence and still in effect on the
date immediately preceding the date on which that tree farm
licence expires is deemed for the remainder of the term of the
five-year development plan to be the development plan in
effect under this Licence.
4.02 If there was no approved five-year development plan in effect
under the tree farm licence replaced by this Licence on the
date immediately preceding the date on which that tree farm
licence expires, then the Licensee, not later than six months
after the date referred to in paragraph 1.19, will submit for
the District Manager's approval a proposed development plan
for the Licence Area.
4.03 The Licensee, not less than three months prior to the date on
which the development plan in effect under this Licence is due
to expire will submit for the District Manager's approval a
proposed development plan for the Licence Area.
4.04 Where the Chief Forester gives the Licensee a notice referred
to in paragraph 2.34, the Chief Forester may at the same time
give the Licensee a notice requiring the Licensee to amend the
development plan in effect under this Licence to the extent
required to ensure consistency with the changes referred to in
subparagraph 2.35(c).
4.05 Where the Chief Forester gives the Licensee a notice referred
to in paragraph 4.04, the Licensee, within three months after
the date on which the notice is given, will submit for the
District Manager's approval a proposed amendment to the
development plan to have effect during the unexpired term of
the development plan.
4.06 If the Licensee fails to comply with the requirements of
paragraph 4.05, the development plan in effect under this
Licence will expire three months after the date on which the
notice referred to in paragraph 4.04 is given to the Licensee,
in which case the Licensee, within four months after the date
on which the development plan expires under this paragraph,
will submit a proposed development plan for the District
Manager's approval.
4.07 A proposed development plan submitted under paragraph 4.02,
4.03, 4.06, or 4.11(b) must
(a) be signed and sealed by a professional forester and
signed by the Licensee or the Licensee's authorized
signatory,
(b) be prepared according to the applicable manual in
effect three months prior to the deadline for
submitting the proposed development plan under
paragraph 4.02, 4.03, or 4.06, as the case may be,
(c) be consistent with this Licence and the management
plan in effect at the time the proposed development
plan is submitted,
(d) set out the Licensee's development plans for a period
of five years, or longer if the Licensee so chooses,
beginning on the date the proposed development plan
takes effect,
(e) set out a proposed harvesting sequence of cut blocks
which will enable the Licensee, each year during the
period referred to in subparagraph (d), to harvest
timber from the Licence Area in accordance with the
cut control provisions of the Forest Act,
categorizing these cut blocks as follows
(i) cut blocks covered by existing cutting
permits,
(ii) cut blocks covered by outstanding cutting
permit applications submitted to the
District Manager,
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(iii) cut blocks for which the Licensee proposes
to submit cutting permit applications during
the term of the proposed development plan,
and
(iv) cut blocks which the Licensee proposes to
harvest during the period referred to in
subparagraph (d), but for which the Licensee
does not propose to submit cutting permit
applications during the term of the proposed
development plan, unless for any reason cut
blocks referred to in clause (iii) cannot be
harvested,
(f) include the following information regarding the cut
blocks referred to in subparagraph (e)
(i) season of operation, logging system and
reforestation method, and
(ii) the status of adjacent harvested areas,
(g) include one or more detailed maps of the following
information
(i) based on the best information readily
available to the Licensee,
(A) recreation areas, community
watersheds, fish spawning, fish
rearing and fish migration areas,
critical wildlife habitats, and any
other areas subject to specific
integrated resource management
constraints, and
(B) private properties, foreshore
leases, and public utilities within
the Licence Area,
(ii) based on information gathered by the
Licensee for the purposes of the proposed
development plan,
(A) the forest cover,
(B) operability and contour lines,
(C) sensitive soils, unstable slopes,
and areas subject to visual quality
constraints,
(D) boundaries of
(I) cut blocks referred to in
subparagraph (e), and
(II) existing cutting permits,
(E) existing roads including, where
applicable, linkage to the public
road system, timber processing
facilities and log dumps,
(F) proposed roads, including bridges
and major culverts,
(G) roads under construction,
(H) roads which have been deactivated
to a temporary or semi-permanent
level,
(I) fire breaks and fuel management
problem areas, and
(J) log handling and storage areas,
including existing or proposed log
dump sites,
(iii) based on consultation carried out in
accordance with the measures specified in
the management plan,
(A) the location of areas where
aboriginal people have indicated
they are or may be carrying out
aboriginal activities in the
Licence Area, and
(B) the location of areas where
trappers, guide outfitters, range
tenure holders, and other licenced
resource users are operating in the
Licence Area, and
(iv) any other information required under the
manual referred to in subparagraph (b), and
(h) include a Road Maintenance Plan complying with the
requirements of paragraph 11.04 and a Road
Deactivation Plan complying with the requirements of
paragraph 11.05.
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4.08 In addition to the requirements under paragraph 4.07, a
proposed development plan submitted under paragraph 4.02,
4.03, or 4.06 must
(a) have been referred to resource agencies and made
available for comment in accordance with the review
strategy approved in the management plan in effect
under this Licence, and
(b) be accompanied by a summary of
(i) all comments received by the Licensee in
complying with the review strategy referred
to in subparagraph (a), and
(ii) the modifications, if any, made to the
proposed development plan, prior to its
submission to the District Manager, in
response to the comments referred to in
clause (i).
4.09 Subject to paragraph 4.10, the District Manager, within three
months after the date on which a proposed development plan is
submitted under paragraph 4.02, 4.03, or 4.06, or two months
after the date on which a proposed development plan is
submitted under subparagraph 4.11(b), will in a notice given
to the Licensee approve the proposed development plan, subject
to such conditions as the District Manager considers necessary
or appropriate, if
(a) the District Manager is satisfied that the proposed
development plan meets the requirements of paragraph
4.07,
(b) the proposed harvesting sequence is satisfactory to
the District Manager,
(c) the District Manager is prepared to accept cutting
permit applications for
(i) the cut blocks referred to in clause
4.07(e)(iii), and
(ii) the cut blocks referred to in clause
4.07(e)(iv), if for any reason cut blocks
referred to in clause 4.07(e)(iii) cannot be
harvested, and
(d) the District Manager is satisfied that the
development plan adequately addressed the comments
referred to in clause 4.08(b)(i).
4.10 The District Manager will not approve a proposed development
plan unless there is a management plan in effect under this
Licence.
4.11 Where the District Manager does not approve a proposed
development plan under paragraph 4.09,
(a) subject to paragraph 4.10, the District Manager,
within three months after the date on which a
proposed development plan is submitted under
paragraph 4.02, 4.03, or 4.06, or two months after
the date on which a proposed development plan is
submitted under subparagraph 4.11(b), will specify in
a notice given to the Licensee why the District
Manager has not approved the development plan, and
(b) the Licensee, within one month after the date on
which the Licensee is given the notice referred to in
subparagraph (a), will submit a new or revised
proposed development plan to the District Manager.
4.12 A development plan is deemed to be part of this Licence.
4.13 Subject to paragraphs 4.01, 4.06, 4.14 and 4.15, a development
plan expires one year after the date on which it takes effect.
4.14 If
(a) the District Manager, within three months after the
date on which the District Manager receives a
proposed development plan submitted under paragraph
4.02 or 4.03, has neither
(i) approved the proposed development plan under
paragraph 4.09, nor
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(ii) given the Licensee a notice referred to in
subparagraph 4.11(a), and
(b) there is a management plan and a development plan in
effect under this Licence,
then the term of the development plan referred to in
subparagraph (b) is deemed to be extended until such time as
the District Manager approves the proposed development plan
under paragraph 4.09, or gives the Licensee a notice referred
to in subparagraph 4.11(a), as the case may be.
4.15 At the request of the Licensee, the District Manager may
extend the term of a development plan for a period not greater
than one year, provided there is a management plan in effect
under this Licence.
4.16 Before extending the term of a development plan under
paragraph 4.15, the District Manager may require the Licensee
to amend the development plan to the extent required to ensure
compliance with the management plan in effect under this
Licence.
4.17 If the development plan in effect under this Licence has been
rendered inadequate as a result of circumstances the Licensee
could not reasonably have foreseen at the time the proposed
development plan was submitted for the District Manager's
approval, the Licensee may submit for the District Manager's
approval a proposed amendment to the development plan.
4.18 The District Manager at his or her sole discretion may approve
a proposed amendment submitted under paragraph 4.17, provided
there is a management plan in effect under this Licence.
4.19 Before approving a proposed amendment submitted under
paragraph 4.17, the District Manager may require the Licensee
to refer the proposed amendment, and make it available for
comment in accordance with the review strategy referred to in
subparagraph 4.08(a).
5.00 CUTTING PERMITS
5.01 All cutting permits in effect under the tree farm licence
replaced by this Licence continue in effect under this Licence
for the duration of their respective terms.
5.02 Subject to paragraph 5.04, the Licensee may submit cutting
permit applications for
(a) cut blocks referred to in clause 4.07(e)(iii), and
(b) cut blocks referred to in clause 4.07(e)(iv), if for
any reason cut blocks referred to clause 4.07(e)(iii)
cannot be harvested, to enable the Licensee to
harvest timber from the Licence Area in accordance
with the cut control provisions of the Forest Act.
5.03 Subject to paragraphs 5.05 and 5.06, upon receipt of cutting
permit applications referred to in paragraph 5.02, the
District Manager will issue cutting permits to the Licensee
for
(a) cut blocks referred to in clause 4.07(e)(iii), and
(b) cut blocks referred to in clause 4.07(e)(iv), if for
any reason cut blocks referred to clause 4.07(e)(iii)
cannot be harvested,
if the District Manager is satisfied that the cutting permit
application meets the requirements of paragraph 5.04.
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5.04 A cutting permit application referred to in paragraph 5.02
must
(a) be signed and sealed by a professional forester and
signed by the Licensee or the Licensee's authorized
signatory,
(b) contain such information as is required
(i) by the District Manager in a notice given to
the Licensee two months prior to the date on
which the cutting permit application is
submitted, or
(ii) in the applicable manual in effect two
months prior to the date on which the
cutting permit application is submitted,
(c) subject to paragraph 5.08, be accompanied by a
proposed logging plan, and
(d) be consistent with the management plan and
development plan in effect under this Licence, and
the pre-harvest silviculture prescription, if any,
approved for the area on which the timber to be
harvested is located.
5.05 The District Manager will not issue a cutting permit under
paragraph 5.03 unless
(a) subject to an exemption referred to in subparagraph
5.18(b), the District Manager has approved a
pre-harvest silviculture prescription for the area on
which the timber to be harvested is located, and
(b) there is a management plan and development plan in
effect under this Licence.
5.06 The District Manager may delay issuing a cutting permit if he
or she is satisfied that
(a) the Licensee will be able under existing cutting
permits and road permits to harvest that portion of
the allowable annual cut available to the Licensee,
and
(b) the delay will not compromise the management plan and
development plan in effect under this Licence.
5.07 Where the District Manager
(a) is not satisfied that a cutting permit application
meets the requirement of paragraph 5.04,
(b) is prohibited under paragraph 5.05 from issuing a
cutting permit, or
(c) is delaying issuing the cutting permit under
paragraph 5.06,
the District Manager will give the Licensee a notice to that
effect within two months after the date on which the cutting
permit application is submitted.
5.08 The District Manager may
(a) exempt the Licensee from the requirement under
paragraph 5.04(c) to submit a logging plan with a
cutting permit application, and
(b) issue a cutting permit before approving a logging
plan,
however, where a cutting permit is issued prior to the
approval of the logging plan, the Licensee will not commence
operations under the cutting permit until a logging plan has
been submitted and approved.
5.09 At the request or with the consent of the Licensee, the
District Manager may at any time
(a) amend an existing cutting permit, or
(b) issue a cutting permit,
to authorize the Licensee to harvest wind thrown, dead,
damaged, infested or diseased timber within the Licence Area.
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5.10 A cutting permit must
(a) subject to this Licence and the Forest Act, authorize
timber to be harvested in accordance with the
provisions of the cutting permit from proximate cut
blocks located within the Licence Area,
(b) be consistent with
(i) this Licence,
(ii) the Forest Act,
(iii) subject to an exemption referred to in
subparagraph 5.18(b), the pre-harvest
silviculture prescription approved for the
area on which the timber is to be harvested,
and
(iv) subject to paragraphs 5.09 and 5.14, the
management plan and development plan in
effect on the date the cutting permit is
issued,
(c) subject to paragraph 5.13, be for a term not
exceeding three years,
(d) prescribe the locations of roads to be built or
deactivated on the area covered by the cutting
permit, and the specifications and standards to be
followed in building or deactivating these roads,
(e) prescribe utilization standards and forestry
practices to be followed in timber harvesting
operations carried on under the cutting permit,
(f) set out procedures for assessing the volumes of
timber wasted or damaged by the Licensee, and provide
for a charge based on applicable stumpage rates to be
paid by the Licensee,
(g) specify a timber mark to be used in conjunction with
the timber harvesting operations carried on under the
cutting permit,
(h) specify whether the cutting permit is scale based or
cruise based, and
(i) subject to subparagraph (b), include such other
provisions as the District Manager considers
necessary or appropriate.
5.11 Subject to paragraphs 5.12, 5.13 and 5.14, the District
Manager may amend a cutting permit only at the request or with
the consent of the Licensee.
5.12 A cutting permit that does not comply with the requirements of
paragraph 5.10 is not void, however,
(a) on the request of the Licensee, or
(b) on one month notice to the Licensee,
the District Manager may amend the cutting permit to the
extent required to ensure compliance with the requirements of
paragraph 5.10.
5.13 The District Manager may, in a notice given to the Licensee,
extend the term of a cutting permit.
5.14 Where under paragraph 5.13 the District Manager extends the
term of a cutting permit, the District Manager may, in a
notice given to the Licensee, amend the cutting permit to the
extent required to ensure compliance with the management plan
and development plan in effect on the date the term of the
cutting permit is extended.
5.15 Unless exempted in writing by the District Manager or a person
authorized by the District Manager, the Licensee will define
on the ground the boundaries of the areas authorized for
harvesting under a cutting permit.
5.16 A cutting permit is deemed to be part of this Licence.
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5.17 An logging plan approved in respect of a cutting permit is
deemed to be part of this Licence and the applicable cutting
permit.
5.18 The Licensee will not harvest any timber under a cutting
permit, unless
(a) a pre-harvest silviculture prescription has been
approved, or
(b) the Licensee has been exempted under the Forest Act
from the requirement to have a pre-harvest
silviculture prescription approved,
for the area on which the timber is located.
5.19 A cutting permit or approved logging plan that is inconsistent
with the pre-harvest silviculture prescription approved for
the area covered by the cutting permit is not void, but to the
extent of the inconsistency the pre-harvest silviculture
prescription will prevail.
5.20 Without restricting the generality of subparagraph 5.10(i),
the District Manager may include in a cutting permit a
provision requiring the Licensee to provide a specified level
of supervision in respect of employees and contractors
carrying out operations under the cutting permit on sites
identified by the District Manager as being environmentally
sensitive sites.
6.00 REVIEW STRATEGY & MINISTRY CONSULTATION
6.01 A review strategy referred to in subparagraph 2.05(b), 2.07(b)
and subparagraph 2.25(m) must
(a) provide adequate opportunities for comment to persons
interested in or affected by operations under this
Licence, including but not restricted to
(i) resource agencies,
(ii) trappers, guide outfitters, range tenure
holders, and other licensed resource users,
(iii) aboriginal people,
(iv) local governments, and
(v) members of the public, and
(b) specify measures for inviting comment, including
(i) referrals to resource agencies,
(ii) advertising methods, times and locations,
(iii) viewing methods, times and locations,
(iv) if applicable, times and locations of open
houses, and
(v) methods for collecting written and oral
comments from interested persons.
6.02 An opportunity for comment provided to a person referred to in
subparagraph 6.01(a) will only be adequate for the purposes of
that subparagraph if, in the opinion of the Regional Manager
or the Chief Forester, as the case may be, the opportunity for
comment properly reflects the nature and extent of that
person's interest in the Licence Area and any right that
person may have to use the Licence Area.
6.03 In addition to the requirements under paragraph 6.01, a review
strategy for development plans must specify measures which are
consistent with the usual procedures in the applicable forest
district.
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6.04 When in accordance with an approved review strategy the
Licensee refers a document or plan to resource agencies, or
makes it available for comment, the Licensee will at the same
time send a copy of the document or plan to the Regional
Manager for his or her information.
6.05 Before
(a) approving a review strategy under paragraph 2.06,
(b) accepting a Statement of Management Objectives,
Options and Procedures under paragraph 2.11,
(c) approving a proposed management plan under paragraph
2.27,
(d) approving a proposed development plan under paragraph
4.09, or
(e) issuing a cutting permit under Part 5.00,
the Regional Manager, the Chief Forester, or the District
Manager, as the case may be, at his or her sole discretion and
notwithstanding the Licensee's obligations under the review
strategy, may consult persons who may be interested in or
affected by operations under this Licence, including but not
restricted to
(f) resource agencies,
(g) trappers, guide outfitters, range tenure holders, and
other licensed resource users,
(h) aboriginal people,
(i) local governments, and
(j) members of the public,
and, subject to paragraph 6.06, may consider any comments
received as a result of consultation under this paragraph.
6.06 If because of comments received as a result of consultation
under paragraph 6.05, the Regional Manager, the Chief
Forester, or the District Manager is considering
(a) not accepting, approving, or issuing, or
(b) imposing a condition upon acceptance, approval or
issuance of,
a document or plan referred to in paragraph 6.05, the Regional
Manager, the Chief Forester, or the District Manager, as the
case may be, will provide the Licensee with an opportunity to
respond to the comments before making a decision.
7.00 CONDITIONS IMPOSED UPON ACCEPTANCE OR APPROVAL
7.01 Where under this Licence a ministry officer has a discretion
to make his or her acceptance or approval of a document or
plan subject to a condition, the ministry officer will
exercise that discretion in a reasonable manner, having regard
to the purposes and functions of the Ministry of Forests set
out in Section 4 of the Ministry of Forests Act as it read on
June 1, 1993.
7.02 The Licensee, in a notice given to the appropriate ministry
officer within 15 days of the date on which the notice of
acceptance or approval is given to the Licensee, may reject
any condition to which the acceptance or approval is subject,
in which case the notice of approval or acceptance is deemed
to be a notice that the applicable document or plan is not
accepted or approved for the reasons set out in the
conditions.
8.00 ANNUAL REPORT
8.01 On or before April 1 of each year during the term of this
Licence, the Licensee will submit to the Chief Forester, the
Regional Manager and the District Manager an annual report
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(a) prepared in accordance with the applicable manual in
effect on January 1 of the year in which the annual
report is submitted, and
(b) containing the information required in the manual
referred to in subparagraph (a) regarding
(i) the Licensee's performance over the previous
calendar year in relation to its management
of the Licence Area and its obligations
under this Licence,
(ii) the Licensee's success in meeting its
management objectives, including but not
restricted to its management objectives with
respect to employment and economic
opportunities,
(iii) the processing or other use or disposition
of the timber harvested under this Licence,
and
(iv) the Licensee's goals and major initiatives
for the next calendar year.
8.02 The Licensee will make a copy of an annual report submitted
under paragraph 8.01 available for review by interested
persons during normal business hours at the Licensee's place
of business in the vicinity of the Licence Area or, if the
Licensee chooses, at another location which is convenient to
the public and acceptable to the Regional Manager.
9.00 CUT CONTROL
9.01 The Licensee will comply with the cut control provisions of
the Forest Act.
9.02 The five-year cut control period for this Licence means the
5-year period beginning on January 1, 1995, and each
succeeding 5-year period.
10.00 FINANCIAL AND DEPOSITS
10.01 Where any money is payable by the Licensee under the Forest
Act in respect of this Licence, a road permit or a special use
permit, the money payable under the Forest Act is also deemed
to be money payable under this Licence.
10.02 In addition to any money payable by the Licensee under
paragraph 10.01, the Licensee will pay to the Crown,
immediately upon receipt of a notice issued on behalf of the
Crown,
(a) in respect of timber harvested from Schedule B Land,
stumpage under Part 7 of the Forest Act,
(b) in respect of timber harvested from Schedule A Land
subject to a timber licence, stumpage or royalty
under Part 7, as elected by the Licensee under
Section 23 of the Forest Act, and
(c) any charges in respect of an assessment referred to
in subparagraph 5.10(f).
10.03 During the term of this Licence, the Licensee will maintain on
deposit with the Crown an amount prescribed under the Forest
Act, in cash or in negotiable securities acceptable to the
Minister, as security for the Licensee's performance of its
obligations under
(a) this Licence, a road permit or a special use permit,
or
(b) the Forest Act in respect of this Licence a road
permit or a special use permit, and
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where the Regional Manager or District Manager gives the
Licensee a notice advising that an amount has been taken under
this Part from the deposit, the Licensee, within one month
after the date on which the notice is given, will pay to the
Crown, in cash or negotiable securities acceptable to the
Minister, an amount sufficient to replenish the deposit.
10.04 If the Licensee fails
(a) to pay money that the Licensee is required to pay to
the Crown under this Licence, a road permit or a
special use permit, or under the Forest Act in
respect of this Licence, a road permit or a special
use permit, or
(b) to otherwise perform its obligations under this
Licence, a road permit or a special use permit, or
under the Forest Act in respect of this Licence, a
road permit or a special use permit,
then the Regional Manager or District Manager, after at least
one month notice to the Licensee, may take from the deposit
(c) an amount equal to the money which the Licensee
failed to pay,
(d) an amount sufficient to cover all costs reasonably
incurred by the Regional Manager or District Manager
in remedying the Licensee's failure to perform its
obligations, or
(e) an amount equal to the Regional Manager's or District
Manager's estimate of the costs which the Regional
Manager or District Manager could reasonably expect
to incur in remedying the Licensee's failure to
perform its obligations,
and for that purpose a security included in the deposit may be
sold.
10.05 A notice referred to in paragraph 10.04 must specify
(a) the obligation which the Licensee has failed to
perform, and
(b) the amount of money the Regional Manager or District
Manager intends to take from the deposit.
10.06 Subject to paragraphs 10.08, 10.09 and 10.10, where
(a) the Regional Manager or District Manager under
paragraph 10.04 takes from the deposit an amount
equal to the Regional Manager's or District Manager's
estimate of the costs which the Regional Manager or
District Manger could reasonably expect to incur in
remedying the Licensee's failure to perform its
obligations, and
(b) the costs reasonably incurred by the Regional Manager
or District Manager in remedying the Licensee's
failure to perform its obligations are less than the
amount taken from the deposit,
the Regional Manager or District Manager, as the case may be,
will as soon as practicable return to the Licensee an amount
equal to the difference between the amount taken from the
deposit and the costs incurred by the Regional Manager or
District Manager.
10.07 Where
(a) the Regional Manager or District Manager under
paragraph 10.04 takes from the deposit an amount
equal to the Regional Manager's or District Manager's
estimate of the costs which the Regional Manager or
District Manager could reasonably expect to incur in
remedying the Licensee's failure to perform its
obligations, and
(b) the costs reasonably incurred by the Regional Manager
or District Manager in remedying the Licensee's
failure to perform its obligations are greater than
the amount taken from the deposit,
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the Regional Manager or District Manager may take from the
deposit an additional amount equal to the difference between
the costs incurred by the Regional Manager or District Manager
and the amount originally taken from the deposit, and for that
purpose a security included in the deposit may be sold.
10.08 Where the Regional Manager or District Manager under paragraph
10.04 takes from the deposit an amount equal to the Regional
Manager's or District Manager's estimate of the costs which
the Regional Manager or District Manager could reasonably
expect to incur in remedying the Licensee's failure to perform
its obligations, the Regional Manager or District Manager, as
the case may be, is under no obligation to remedy the
Licensee's failure.
10.09 Where
(a) the Regional Manager or District Manager under
paragraph 10.04 takes from the deposit an amount
equal to the Regional Manager's or District Manager's
estimate of the costs which the Regional Manager or
District Manager could reasonably expect to incur in
remedying the Licensee's failure to perform its
obligations,
(b) the Regional Manager or District Manager does not
remedy the Licensee's failure to perform its
obligations, and
(c) the Regional Manager or District Manager gives a
notice to the Licensee indicating that the Regional
Manager or District Manager will not be remedying the
Licensee's failure to perform its obligations,
then, subject to paragraph 10.10, the Regional Manager or
District Manager may retain the amount taken from the deposit
under paragraph 10.04.
10.10 If, after receiving a notice referred to in paragraph 10.09,
the Licensee
(a) remedies the failure to perform its obligations, and
(b) gives a notice to that effect to the Regional Manager
or District Manager within three months of the date
on which the notice referred to in paragraph 10.09 is
given to the Licensee, or within such longer period
as the Regional Manager or District Manager may
approve,
then the Regional Manager or District Manager, as the case may
be, will return to the Licensee an amount equal to the
difference between the amount taken from the deposit and any
costs reasonably incurred by the Regional Manager or District
Manager in respect of the Licensee's failure to perform its
obligations.
10.11 If the Regional Manager or District Manager considers that
(a) any operation that is to be carried out under this
Licence, a road permit or a special use permit is
likely to cause damage to persons or property, and
(b) the deposit is insufficient to indemnify the Crown
for any liability which the Crown might incur as a
consequence of the operation,
then the Regional Manager or District Manager may require the
Licensee to maintain with the Crown a special deposit, in cash
or in negotiable securities acceptable to the Minister, in the
amount determined by the Regional Manager or District Manager,
as the case may be.
10.12 If the Licensee fails to
(a) remedy any damage resulting from an operation
referred to in paragraph 10.11, or
(b) compensate any person who suffers a loss as a result
of an operation referred to in paragraph 10.11,
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the Regional Manager or District Manager may, after at least
one month notice to the Licensee, take an amount from the
special deposit sufficient to indemnify the Crown for any
liability which is or may be incurred by the Crown as a
consequence of a failure referred to in subparagraph (a) or
(b).
10.13 A notice referred to in paragraph 10.12 must specify
(a) the nature of the Licensee's failure,
(b) the nature of the damage or loss, and
(c) the amount of money the Regional Manager or District
Manager intends to take from the special deposit.
10.14 Subject to the Forest Act, the Regional Manager will refund to
the Licensee
(a) the deposit, less deductions made under paragraphs
10.04 and 10.07, when
(i) this Licence terminates or expires and is
not replaced under Section 29 of the Forest
Act, and
(ii) the Regional Manager is satisfied that the
Licensee has fulfilled its obligations under
this Licence, and
(b) a special deposit, less deductions made under
paragraph 10.12, when the Regional Manager, acting
reasonably, is satisfied that the Crown is no longer
at risk of being held liable as a consequence of an
operation referred to in paragraph 10.11.
11.00 ROADS
11.01 Subject to the provisions of a cutting permit or road permit,
the Licensee will ensure that the specifications, standards
and locations of all roads the Licensee builds on the Licence
Area are consistent with the management plan and development
plan in effect at the time the road is built.
11.02 Upon the expiry of a road permit or a special use permit, all
improvements, including roads and bridges, constructed by the
Licensee under the authority of the road permit or the special
use permit will vest in the Crown, without right of
compensation to the Licensee, unless otherwise specified in
the road permit or special use permit.
11.03 The Licensee will not remove any improvements referred to in
paragraph 11.02, unless authorized to do so by the Regional
Manager.
11.04 The Road Maintenance Plan included in the Development Plan
must
(a) identify those roads shown on the maps referred to in
subparagraph 4.07(g) which the Licensee will maintain
for harvesting, silviculture and forest protection
purposes, and
(b) specify the maintenance operations which the Licensee
will carry out to
(i) protect the structural integrity of the
roads referred to in subparagraph (a) and
the cleared area of the road right-of-way
adjoining these roads,
(ii) keep drainage systems, including culverts
and ditches, functional,
(iii) minimize surface erosion, and
(iv) ensure these roads are safe for forest
harvesting or other industrial purposes.
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11.05 The Road Deactivation Plan included in the Development Plan
must
(a) identify those roads shown on the maps referred to in
subparagraph 4.07(g) which the Licensee will
deactivate each year over the next three years,
specifying in each case whether the deactivation will
be temporary, semi-permanent or permanent,
(b) specify the operations required to
(i) stabilize the roads referred to in
subparagraph (a) and the cleared area of the
road right-of-way adjoining these roads, and
(ii) restore or maintain the natural drainage at
each road location,
(c) identify those roads shown on the maps referred to in
subparagraph 4.07(g) which have been deactivated by
the Licensee to a temporary or semi-permanent level
in the past year, and any other roads that have been
permanently deactivated by the Licensee in the past
year, and
(d) specify the type of vehicle which can access the
roads referred to in subparagraph (a) or (c).
11.06 If the Licensor so desires, the Licensee will transfer such
rights of way and roads, located or to be located on the lands
set out in Schedule "E" of this Licence, which the Licensor at
his sole discretion identifies as the rights of way and roads
the Licensor wishes to acquire.
11.07 The total consideration for the transfer referred to in
paragraph 11.06 shall be $10.00, and the Licensee hereby
acknowledges the sufficiency of this consideration.
11.08 The Licensee will cooperate with the Licensor, and provide the
Licensor with any assistance the Licensor may reasonably
require, for the purpose of identifying the rights of way and
roads referred to in paragraph 11.06 that the Licensor wishes
to acquire, and, without restricting the generality of the
foregoing, the Licensee shall
(a) permit the Licensor to enter onto the lands set out
in Schedule "E" for the purpose of surveying rights
of way and roads, and
(b) sign in a timely manner plans and documents as
required.
12.00 FIRE PROTECTION
12.01 Before April 1 of each year during the term of this Licence,
the Licensee will submit for the District Manager's approval a
fire protection pre-organization plan consistent with this
Licence, and will include a duty roster in the fire protection
pre-organization plan.
12.02 An approved fire protection pre-organization plan is deemed to
be part of this Licence.
12.03 The Licensee's obligations under an approved fire protection
pre-organization plan are in addition to and do not replace
its commitments in the management plan or development plan or
its obligations under Section 121 of the Forest Act.
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13.00 FORESTRY
13.01 The Licensee will
(a) comply with the requirements of the Forest Act with
respect to basic silviculture, and
(b) ensure basic silviculture and, if applicable,
incremental silviculture carried out by or for the
Licensee on the Licence Area is consistent with the
management plan in effect under this Licence.
13.02 If under this Licence or the Forest Act the Licensee is to
develop or maintain a recreation site or trail, the Licensee
may enter onto Crown land for this purpose.
13.03 If the Licensee posts a sign concerning silviculture or the
development and maintenance of recreation sites or trails, the
sign must acknowledge any contribution made by the Crown in
respect of the silviculture or the development or maintenance
of recreation sites or trails.
13.04 The Licensee will annually review pest management strategies
with the District Manager and, if required by the District
Manager, the Licensee will submit a pest management plan,
including appropriate surveys, for the District Manager's
approval.
13.05 The Licensee's obligations under an approved pest management
plan are in addition to and do not replace its commitments in
the management plan or development plan respecting pest
management.
13.06 The Regional Manager or the District Manager may carry out
(a) basic silviculture on Schedule B Land referred to in
paragraph 1.07, 1.08, 1.09 and 1.16, in accordance
with the Crown's basic silviculture obligations under
the Forest Act, and
(b) incremental silviculture on Schedule B Land or
Schedule A Land subject to a timber licence, provided
that in so doing the Regional Manager or District
Manager, as the case may be, does not
(i) compromise the management plan or
development plan in effect under this
Licence, or
(ii) unreasonably interfere with the Licensee's
operations under this Licence.
13.07 Where the Regional Manager or the District Manager carries out
basic silviculture referred to in subparagraph 13.06(a) or
incremental silviculture referred to in subparagraph 13.06(b),
the Regional Manager or the District Manager, as the case may
be, will ensure that the basic silviculture and, if applicable
the incremental silviculture is consistent with the intent of
the management plan in effect under this Licence.
13.08 The Licensee will fulfill all outstanding silvicultural
obligations of Westshore as Licensee and permittee, in respect
of this Licence and License Area, as well as those obligations
arising under Part 10.1 of the Forest Act, including existing
pre-harvest silviculture prescriptions.
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13.09 The plan for elimination of backlog "not satisfactorily
restocked" areas, entitled "Forest Renewal Initiative", dated
April 1990, prepared by T. M. Thomson and Associates Ltd. for
Westar Timber Ltd., the title page and table of contents which
are attached to this licence (for purposes of identification)
as Schedule "C", shall be deemed to be an integral part of
this Licence and the Licensee agrees to carry out obligations
therein which pertain to the Licence area by December 31,
1996, unless extended by the Chief Forester.
14.00 ACCESS AND ACCOMMODATION
14.01 Any ministry officer may use roads owned or deemed to be owned
by the Licensee, for the purposes of fulfilling an obligation
or exercising a right under this Licence.
14.02 The Licensee will allow any person who has been granted
harvesting rights to timber referred to in paragraph 1.07,
1.08, 1.09, or 1.16 to use any road providing access to timber
within the Licence Area, which is owned or deemed to be owned
by the Licensee.
14.03 The Licensee will not require any payment from a person
referred to in paragraph 14.02 other than a reasonable payment
in respect of the actual maintenance costs of the road.
14.04 Upon reasonable notice from the Regional Manager or District
Manager, the Licensee will provide a ministry officer with
reasonable office and living accommodation on premises owned
or operated by the Licensee in or near the Licence Area, to
enable the ministry officer to fulfill an obligation or
exercise a right under this Licence.
14.05 The Licensee may charge the Regional Manager or District
Manager, as the case may be, for costs reasonably incurred in
providing the accommodation referred to in paragraph 14.04.
14.06 The Licensee shall permit any third party, upon reasonable
payment to the Licensee, and on other reasonable terms, to use
the Licensee's log transportation infrastructure where such
use is reasonably necessary for purposes related to forest
harvesting.
15.00 CONTRACTORS
15.01 Each year during the term of this Licence, the Licensee will
ensure that not less than
(a) 50 percent of the volume of timber harvested by or
for the Licensee under this Licence during the year,
multiplied by
(b) the result obtained by the division of
(i) the portion of the allowable annual cut that
the Chief Forester determines is
attributable to Schedule B Land, by
(ii) the allowable annual cut,
is harvested by persons under contract with the Licensee.
15.02 Compliance with the requirement of paragraph 15.01 will be
calculated in accordance with the method prescribed under the
Forest Act.
15.03 If in a calendar year the volume of timber harvested by
persons under contract with the Licensee is less than a volume
required under paragraph 15.01, the Licensee will on demand
pay to the Crown, an amount of money equal to
(a) the volume required under paragraph 15.01 minus the
volume harvested during the calendar year by persons
under contract, multiplied by
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(b) the weighted average of the stumpage rates charged in
invoices issued to the Licensee during the calendar
year for timber harvested under this Licence from
Schedule B Land,
unless the Minister relieves the Licensee in whole or in part
from the requirements of this paragraph.
15.04 The Licensee may contract to have more than the volume
required under paragraph 15.01 harvested by persons under
contract.
15.05 The Minister may relieve the Licensee from the requirement
under paragraph 15.01 to the extent provided for under the
Forest Act.
16.00 TIMBER PROCESSING
16.01 The Licensee will process all timber harvested under a cutting
permit or a road permit, or equivalent volumes, through a
timber processing facility located at Castlegar
(a) owned or operated by the Licensee or an affiliate of
the Licensee within the meaning of the Company Act,
and
(b) equipped to carry out debarking and chipping,
unless the Minister exempts the Licensee in whole or in part
from the requirements of this paragraph.
16.02 Where the Licensee
(a) intends to close a timber processing facility or
reduce its production, or
(b) has reason to believe that an affiliate of the
Licensee within the meaning of the Company Act
intends to close a timber processing facility or
reduce its production,
for a period of longer than 90 days, the Licensee will give
the Minister at least three months notice prior to the closure
or reduction.
16.03 Where
(a) the Licensee, or
(b) an affiliate of the Licensee within the meaning of
the Company Act,
closes a timber processing facility or reduces its production
for a period longer than 90 days, the Licensee will at the
request of the Minister provide information regarding the
volume of Crown timber processed through the timber processing
facility during the 24-month period immediately preceding the
closure or reduction in production level.
16.04 The Licensee will continue to operate, and where applicable
construct or expand, a timber processing facility in
accordance with
(a) the proposal made in the application on which the
award of the tree farm licence replaced by this
Licence or any predecessor to that tree farm licence
was based, and
(b) the revisions, if any, to that proposal which have
been approved by the Minister or an appropriate
ministry officer.
16.05 The Licensee shall not sell or otherwise dispose of the
Castlegar sawmill unless the Castlegar sawmill is sold or
disposed of in conjunction with an assignment of this Licence.
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17.00 LIABILITY AND INDEMNITY
17.01 Subject to paragraph 17.03, the Licensee will indemnify the
Crown against and save it harmless from all claims, demands,
suits, actions, causes of action, costs, expenses and losses
faced, incurred or suffered by the Crown as a result, directly
or indirectly, of any act or omission of
(a) the Licensee,
(b) an employee of the Licensee,
(c) an agent of the Licensee,
(d) a contractor of the Licensee who engages in any
activity or carries out any operation, including but
not restricted to harvesting operations, under or
associated with this Licence, a road permit, a free
use permit issued to the Licensee, or a special use
permit, or
(e) any other person who on behalf of the Licensee
engages in any activity or carries out any operation,
including but not restricted to harvesting
operations, under or associated with this Licence, a
road permit, a free use permit issued to the Licensee
or a special use permit.
17.02 For greater certainty, the Licensee has no obligation to
indemnify the Crown under paragraph 17.01 in respect of any
act or omission of
(a) an employee, agent or contractor of the Crown, in the
course of carrying out his or her duties as employee,
agent or contractor of the Crown, or
(b) a person other than the Licensee to whom the Crown
has granted the right to enter, use or occupy Crown
land, including a person who has been granted the
right to harvest timber referred to in paragraph
1.07, 1.08, 1.09 or 1.16, in the course of exercising
those rights.
17.03 Paragraph 17.01 does not apply to an act or omission which is
a direct response to, and complies with, an order made by a
ministry officer or another officer of the Crown.
17.04 Money taken under Part 10.00 from a deposit or special
deposit, and money paid by the Licensee under paragraph 15.03
or 17.01, is in addition to and not in substitution for any
other remedies available to the Crown in respect of a default
of the Licensee.
18.00 LIMITATION OF LIABILITY
18.01 The Licensor is not liable to the Licensee for injuries,
losses, expenses, or costs incurred or suffered by the
Licensee as a result, directly or indirectly, of an act or
omission of a person who is not a party to this Licence,
including but not restricted to an act or omission of a person
disrupting, stopping or otherwise interfering with the
Licensee's operations under this Licence by road blocks or
other means.
19.00 INTERFERENCE WITH ABORIGINAL RIGHTS
19.01 Notwithstanding any other provision of this Licence, if a
court of competent jurisdiction
(a) determines that the Licensee's operations under this
Licence, or the Licensee's use or occupation of
Schedule B Land or Schedule A Land subject to a
timber licence, is interfering or may interfere with
an aboriginal right,
(b) grants an injunction further to a determination
referred to in subparagraph (a), or
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(c) grants an injunction pending a determination of
whether the Licensee's operations under this Licence,
or the Licensee's use or occupation of Schedule B
Land or Schedule A Land subject to a timber licence,
is interfering or may interfere with an aboriginal
right,
then, having regard to any determination of the court and the
terms of any injunction granted by the court, the Regional
Manager or District Manager, in a notice given to the
Licensee, may, in whole or in part, vary, suspend, or refuse
to issue
(d) a cutting permit,
(e) a road permit,
(f) a special use permit, or
(g) a free use permit issued to the Licensee,
to the extent necessary to ensure there is no interference or
no further interference with the aboriginal right or the
alleged aboriginal right.
19.02 Notwithstanding any other provision of this Licence, if a
court of competent jurisdiction
(a) determines that the Licensee's operations under this
Licence, or the Licensee's use or occupation of
Schedule B Land or Schedule A Land subject to a
timber licence, is interfering or may interfere with
an aboriginal right,
(b) grants an injunction further to a determination
referred to in subparagraph (a), or
(c) grants an injunction pending a determination of
whether the Licensee's operations under this Licence,
or the Licensee's use or occupation of Schedule B
Land or Schedule A Land subject to a timber licence,
is interfering or may interfere with an aboriginal
right,
then, having regard to any determination of the court and the
terms of any injunction granted by the court, the Chief
Forester, in a notice given to the Licensee, may require the
Licensee to amend one or both of the following
(d) the management plan in effect under this Licence, and
(e) the development plan in effect under this Licence,
to the extent necessary to ensure there is no interference or
no further interference with the aboriginal right or the
alleged aboriginal right.
19.03 Where the Chief Forester gives the Licensee a notice referred
to in paragraph 19.02, the Licensee, in accordance with the
requirements of the notice and within the time specified in
the notice, will submit one or both of the following
(a) for the Chief Forester's approval, a proposed
amendment to the management plan to have effect
during the unexpired term of the management plan, and
(b) for the District Manager's approval, a proposed
amendment to the development plan to have effect
during the unexpired term of the development plan.
19.04 Subject to the Forest Act and all other applicable legislation
and the other provisions of this Licence, the Chief Forester
or the District Manager, as the case may be, will approve a
proposed amendment referred to in paragraph 19.03 if he or she
is satisfied that the proposed amendment
(a) meets the requirements of the notice referred in
paragraph 19.02, and
(b) is consistent with any determination of the court and
the terms of any injunction granted by the court
referred to in paragraph 19.02.
19.05 If either
(a) the Licensee fails to comply with the requirements of
paragraph 19.03, or
(b) the Chief Forester or the District Manager does not
approve a proposed amendment under paragraph 19.04,
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the Chief Forester or the District Manager may amend the
management plan or the development plan, as the case may be,
to the extent necessary to ensure the plan
(c) meets the requirements of the notice referred to in
paragraph 19.02, and
(d) is consistent with any determination of the court and
the terms of any injunction granted by the court
referred to in paragraph 19.02.
19.06 Subject to the Forest Act and all other applicable legislation
and the other provisions of this Licence, where
(a) the Regional Manager or District Manager has varied a
cutting permit, road permit, special use permit, or
free use permit under paragraph 19.01,
(b) a court of competent jurisdiction subsequently
overturns, sets aside or dissolves the determination
or injunction referred to in that paragraph, and
(c) the Regional Manager or District Manager, as the case
may be, considers it practicable to do so,
the Regional Manager or District Manager, at the request of
the Licensee, will vary the permit to reflect as closely as
possible the terms and conditions of the permit prior to its
variation under paragraph 19.01.
19.07 Subject to the Forest Act and all other applicable legislation
and the other provisions of this Licence, where
(a) the Regional Manager or District Manager has
suspended a cutting permit, road permit, special use
permit, or free use permit under paragraph 19.01,
(b) a court of competent jurisdiction subsequently sets
aside or dissolves the determination or injunction
referred to in that paragraph, and
(c) the Regional Manager or District Manager, as the case
may be, considers it practicable to do so,
the Regional Manager or District Manager, at the request of
the Licensee will reinstate the permit.
19.08 Subject to the Forest Act and all other applicable legislation
and the other provisions of this Licence, where
(a) the Regional Manager or District Manager has refused
to issue a cutting permit, road permit, special use
permit, or free use permit under paragraph 19.01,
(b) a court of competent jurisdiction subsequently
overturns, sets aside or dissolves the determination
or injunction referred to in that paragraph, and
(c) the Regional Manager or District Manager, as the case
may be, considers it practicable to do so,
the Regional Manager or District Manager, at the request of
the Licensee, will issue the permit.
19.09 Subject to the Forest Act and all other applicable legislation
and the other provisions of this Licence, where
(a) as a result of a determination or injunction referred
to in paragraph 19.02, an amendment to the management
plan or development plan in effect under this Licence
has been approved under paragraph 19.04 or made under
paragraph 19.05, and
(b) a court of competent jurisdiction subsequently
overturns, sets aside or dissolves the determination
or injunction,
the Licensee may submit an amendment reversing, insofar as it
is possible, the effects of the amendment referred to in
subparagraph (a), and the Chief Forester or the District
Manager, as the case may be, will approve the amendment if he
or she considers its practicable to do so.
Page 37
<PAGE> 38
20.00 TERMINATION AND SURRENDER
20.01 If this Licence is terminated, expires and is not replaced
under Section 29 of the Forest Act, or if this Licence is
cancelled,
(a) cutting permits will terminate when the expiration,
termination or cancellation occurs, and
(b) title to all
(i) improvements, including roads and bridges,
constructed on Schedule B Land by the
Licensee under the authority of this
Licence, and
(ii) logs and special forest products which were
harvested from Schedule B Land under the
authority of this Licence and are still
located on Schedule B Land,
will vest in the Crown, without right of compensation
to the Licensee, and
(c) the Licensee may continue to enter, occupy and use
Schedule B Land for a period of one month after the
termination, expiry or cancellation of this Licence
for the purposes of removing the Licensee's property.
20.02 The Licensee will not remove any improvements, logs or special
forest products referred to in subparagraph 20.01(b), unless
authorized to do so by the Regional Manager.
20.03 Subject to paragraph 20.04, if the Licensee commits an act of
bankruptcy, makes a general assignment for the benefit of its
creditors or otherwise acknowledges its insolvency, the Chief
Forester may cancel this Licence in a notice given to the
Licensee.
20.04 The Chief Forester will not cancel this Licence under
paragraph 20.03 unless and until the Chief Forester gives a
written notice to every holder of a registered security
interest that charges this Licence, allowing a period of not
less than 60 days prior to cancellation during which the
holder of the registered security interest may exercise the
rights and pursue the remedies available in respect of the
registered security interest.
21.00 NOTICE
21.01 A notice given under this Licence must be in writing.
21.02 Where a notice is to be given under this Licence, it may be
(a) delivered by hand,
(b) sent by prepaid registered mail, or
(c) subject to paragraph 21.05, sent by facsimile
transmission, to the address or facsimile number, as
applicable, specified on the first page of this
Licence, or to such other address or facsimile number
as is specified in a notice given in accordance with
this Part.
21.03 Where a notice is given under this Licence, it is deemed to
have been given
(a) if it is given in accordance with subparagraph
21.02(a), on the date it is delivered by hand,
(b) if it is given in accordance with subparagraph
21.02(b), subject to paragraph 21.04, on the eighth
day after its deposit in a Canada Post Office at any
place in Canada, and
(c) if it is given in accordance with subparagraph
21.02(c), subject to paragraph 21.05, on the date it
is sent by facsimile transmission.
Page 38
<PAGE> 39
21.04 Where, between the time a notice is mailed in accordance with
subparagraph 21.02(b) and the time it is actually received,
there occurs a postal strike, lockout or slowdown that might
reasonably affect delivery of the notice, the notice is not
deemed to be given until the party actually receives it.
21.05 Where a notice is sent by facsimile transmission, the party
sending the notice must ensure that the transmission has been
successfully completed.
22.00 MISCELLANEOUS
22.01 This Licence is subject to the laws of British Columbia,
including the Forest Act and all other applicable legislation.
22.02 This Licence will enure to the benefit of, and be binding on,
the parties and their respective heirs, executors, successors
and permitted assigns.
22.03 Where under this Licence the Minister or a ministry officer
has a discretion to require information, the Minister or
ministry officer will exercise this discretion in a reasonable
manner, having regard to the purposes and functions of the
Ministry of Forests set out in Section 4 of the Ministry of
Forests Act as it read on June 1, 1993.
22.04 The Minister will ensure that the obligations under this
Licence of the ministry officers referred to in this Licence
are fulfilled within the limits of this Licence and applicable
legislation.
22.05 The Licensee will use the services of one or more registered
professional foresters to manage the Licence Area in
accordance with the management plan and development plan in
effect under this Licence.
22.06 At the request of the Regional Manager or District Manager,
the Licensee will survey and define on the ground any or all
boundaries of the Licence Area.
22.07 Where
(a) the boundaries of the Licence Area are based on
boundaries established under existing or expired
timber licences,
(b) the legal description of the boundaries of the
Licence Area has been derived from original timber
licence survey plans or from reference maps prepared
from original timber licence survey plans, and
(c) the legal description differs from the actual ground
location of timber licence corner posts,
the boundaries of the Licence Area are the boundaries as
originally established by the actual ground location of the
timber licence corner posts.
22.08 Timber cut under this Licence or a road permit must be
(a) marked according to the Forest Act, and
(b) unless the timber is cut under a cruise based cutting
permit, scaled according to the Forest Act and any
procedures set or approved by the Ministry of
Forests.
22.09 A right or duty of a ministry officer referred to in this
Licence may be exercised or fulfilled by another ministry
officer designated or authorized to do so by the Minister, the
Chief Forester, the Regional Manager, or the District Manager,
as appropriate.
Page 39
<PAGE> 40
22.10 Nothing in this Licence entitles the Licensee to have an area
of Schedule B Land, or Schedule A Land subject to a timber
licence, replaced with another area, or to have harvesting
rights awarded under another agreement under the Forest Act,
in the event timber is damaged or destroyed by pests, fire,
wind or other natural causes, or an area of land is deleted
from the Licence Area under the Forest Act or any other
statute.
22.11 The Licensee waives any right the Licensee may have to
compensation from the Licensor, and releases the Licensor from
any claims the Licensee might have against the Licensor, as a
result of any deletion from the Licence Area, pursuant to
Section 53 of the Forest Act, of the areas which are indicated
on Schedule "D" attached to this Licence as the following:
Proposed Gold Range Wilderness Area, Proposed Monashee Park
Addition Study Area, Proposed Hutchinson Wilderness Area and
Addition, and Proposed Gladstone Wilderness Area. See map in
Schedule "D".
22.12 Subject to the following, the Licensee shall continue the
employment of all of the following persons:
(a) persons employed as of April 1, 1992, at, or on the
recall list for, the Castlegar sawmill,
(b) persons employed as of April 1, 1992, within, or on
the recall list for, employment within Westar Timber
Ltd.'s (or an affiliate company's) log transportation
infrastructure associated with timber harvested from
this Licence,
(c) persons employed as of April 1, 1992, at, or on the
recall list for, employment at Westar Timber Ltd.'s
(or an affiliated company's) woodlands divisions
associated with this Licence.
Termination of any of the above-noted employees must be for
one or more of the following reasons:
(a) reduction of the allowable annual cut for this
Licence pursuant to the Forest Act,
(b) other legitimate fiscal reasons, or
(c) just cause.
In the event of termination of any employees, other than for
just cause, each terminated employee shall be treated as
though he or she has been continuously employed since he or
she last commenced employment with Westar Timber Ltd. (or any
of its affiliates).
22.13 The Licensee will make available for purchase by traditional
local buyers, cedar volumes suitable for the manufacture of
shakes, harvested from the Licence Area.
23.00 INTERPRETATION
23.01 In this Licence, unless the context otherwise requires,
(a) "aboriginal activities" means cultural, spiritual,
religious, and sustenance activities associated with
traditional aboriginal life, including aboriginal
rights,
(b) "aboriginal people" includes registered and
non-registered Indians, Inuits and Metis,
(c) "allowable annual cut" means the allowable annual cut
determined for the Licence Area by the Chief Forester
under the Forest Act, as increased or decreased under
the Forest Act,
(d) "close" or "closure" means cessation of production of
the principal forest products normally produced by a
timber processing facility,
(e) "community forest" means a community forest as
defined by the Licensor,
(f) "cultural heritage resource" means an object or site
that is of historic, cultural, or archaeological
significance,
Page 40
<PAGE> 41
(g) "cutting permit" means a cutting permit referred to
in paragraph 5.01, or issued under paragraph 5.03 or
5.09,
(h) "deposit" means the deposit which the Licensee is
required to maintain under paragraph 10.03,
(i) "development plan" means a plan which
(i) details the proposed location and scheduling
of development activities within the Licence
Area, over a period of at least five years,
including the location and scheduling of
harvesting and road construction and
deactivation activities,
(ii) provides information to be considered in
assessing the proposed location and
scheduling of development activities, and
(iii) subject to paragraph 4.15, is replaced every
one or two years, depending on its term,
(j) "Forest Act" means
(i) the Forest Act, R.S.B.C. 1979, c. 140, as
amended, or the successor to this act, or a
part of this act if all or a part of it is
repealed, and
(ii) the regulations enacted under this act or
its successor,
(k) "free use permit" means a free use permit issued
under the Forest Act to the Licensee, or to a person
other than the Licensee,
(l) "guideline" means a guideline, policy, procedure or
manual regarding forest practices applicable to all
or part of the Licence Area, which has been set or
approved by the Ministry ,
(m) "harvest" includes entry onto land for the purpose of
cutting and removing timber, cutting the timber and
removing the timber from the land,
(n) "land and resource management plan" means a plan,
approved by an appropriate official of the Government
of British Columbia, which provides direction for
land use, and establishes resource management
objectives and strategies, for all or part of the
Licence Area,
(o) "Licence Area" means Schedule A Land and Schedule B
Land,
(p) "local resource use plan" means a plan approved by
the District Manager which provides guidelines for
resource use and development in all or part of the
Licence Area,
(q) "logging plan" means one or more detailed maps
setting out how the Licensee proposes to conduct
harvesting and related operations on one or more cut
blocks covered or to be covered by a cutting permit,
(r) "Log transportation infrastructure" means all
facilities related to the scaling, dumping, booming,
towing and storage of logs, chips, wood products or
other related material or equipment,
(s) "management plan" means a plan for managing,
protecting and conserving both the timber resources
and the non-timber values and resources of the
Licence Area, and integrating harvesting and related
activities with use of the Licence Area for purposes
other than timber production,
(t) "manual" means a guideline, policy, procedure, or
manual set or approved by the Ministry for
preparation of
(i) a Statement of Management Objectives,
Options and Procedures,
(ii) a Timber Supply Analysis Information
Package,
(iii) a timber supply analysis,
(iv) a management plan,
(v) a development plan,
(vi) a cutting permit application,
(vii) an annual report referred to in Part 8.00,
or
(viii) inventories referred to in Part 2.00,
(u) "Ministry" means the Ministry of Forests,
Page 41
<PAGE> 42
(v) "ministry officer" means an employee of the Ministry,
(w) "operable land base" mean those areas within the
Licence Area, which, based on the highest log prices
obtained over the previous decade for timber of the
type and quality principally found on the areas, are
economically feasible to develop and harvest with the
technology currently available to the Licensee,
(x) "person" includes a corporation and a partnership,
(y) "pest" means any animal, insect, fungus, bacteria,
virus, nematode, or other organism which is
detrimental to effective forest management,
(z) "pre-harvest silviculture prescription" means a
prescription required prior to harvesting under
Section 129.3 of the Forest Act,
(aa) "resource agencies" means any governmental agency,
ministry or department having jurisdiction over a
resource which may be affected by any activity or
operation, including but not restricted to harvesting
activities or operations, engaged in or carried out
under or associated with this Licence or a road
permit,
(bb) "review strategy" means a plan for obtaining input
from resource agencies and interested persons
regarding management and development of the Licence
Area,
(cc) "road" includes bridges and culverts,
(dd) "Road Deactivation Plan" means a road deactivation
plan referred to in paragraph 11.05,
(ee) "Road Maintenance Plan" means a road maintenance plan
referred to in paragraph 11.04,
(ff) "road permit" means a road permit grantedto the
Licensee under the Forest Act which provides access
to timber harvested, or to be harvested, under this
Licence,
(gg) "Schedule A Land" means the land described in the
Schedule "A" to this Licence,
(hh) "Schedule B Land" means the Crown land described in
Schedule "B" to this Licence,
(ii) "special deposit" means a special deposit which the
Licensee is required to maintain under paragraph
10.11,
(jj) "special use permit" means a special use permit
issued under the Forest Act to authorize the Licensee
to use or occupy Crown land within the Licence Area,
(kk) "timber supply analysis" means an analysis of the
short-term and long-term availability of timber for
harvesting in the Licence Area, including an analysis
of the short- and long-term effect of management
practices on the availability of timber,
(ll) "Timber Supply Analysis Information Package" means
information relating to the preparation of a timber
supply analysis, including information regarding the
assumptions to be incorporated into a timber supply
analysis, and the methodology to be used in the
timber supply analysis,
(mm) "Timber Supply Forester" means the ministry officer
designated by the Chief Forester to review the Timber
Supply Analysis Information Package and the timber
supply analysis,
(nn) "20-year plan" means a plan prepared in support of a
timber supply analysis, which indicates the
availability of timber over a period of not less than
20 years.
23.02 Unless otherwise provided in paragraph 23.01, if a word or
phrase used in this Licence is defined in the Forest Act, the
definition in the Forest Act applies to this Licence, and
where the word or phrase in the Forest Act is replaced by a
new word or phrase, this Licence is deemed to have been
amended accordingly.
Page 42
<PAGE> 43
23.03 Where a provision of the Forest Act referred to in this
Licence is renumbered, the reference in this Licence is to be
construed as a reference to the provision as renumbered.
23.04 In this Licence, unless the context otherwise requires,
(a) the singular includes the plural and the plural
includes the singular, and
(b) the masculine, the feminine and the neuter are
interchangeable.
23.05 This Licence is divided into parts, paragraphs, subparagraphs,
clauses and subclauses, illustrated as follows
1.00 part,
1.01 paragraph,
(a) subparagraph,
(i) clause,
(A) subclause,
and a reference to a subparagraph, clause or subclause be
construed as a reference to a subparagraph, clause or
subclause of the paragraph, subparagraph or clause, as the
case may be, in which the reference occurs.
Page 43
<PAGE> 44
IN WITNESS WHEREOF this Licence has been executed by the Minister and
the Licensee.
SIGNED on __________________ 19___ )
by the Minister )
on behalf of Her Majesty )
the Queen in Right of )
the Province of )
British Columbia in the )
presence of: )
)
__________________________________ ) ________________________________________
) The Honourable Andrew Petter
(Type in Name)____________________ ) Minister of Forests
THE COMMON SEAL of )
the Licensee was affixed )
on _________________________ 19___ )
in the presence of: )
) c/s
__________________________________ )
)
(Type in Name)____________________ )
(or)
SIGNED on __________________ 19___ )
by the Licensee, in the )
presence of: )
)
__________________________________ ) ________________________________________
) (Licensee)
(Type in Name)____________________ )
Page 44
<PAGE> 45
SCHEDULE "A"
ARROW LAKES TREE FARM LICENCE
TREE FARM LICENCE NUMBER 23
Forest lands and merchantable timber in other tenures owned or controlled by the
Licensee in Tree Farm Licence Number 23.
BLOCK 1
Now Tree Farm Licence Number 55 (Selkirk).
CROWN GRANTS
Nil
TIMBER LICENCES
Nil
BLOCK 2
<TABLE>
<CAPTION>
LAND TITLES
CROWN GRANTS LAND DISTRICT PARCEL IDENTIFIER HECTARES
- ------------ ------------- ----------------- --------
<S> <C> <C> <C>
The East half of Kootenay 014-044-471 64.752
District Lot 770
The West half of Kootenay 014-044-544 64.752
District Lot 770
District Lot 772 Kootenay 014-045-346 64.752
District Lot 5069 Kootenay 014-015-617 75.274
District Lot 7045 Kootenay 014-045-826 35.209
District Lot 7046 Kootenay 014-045-842 37.637
District Lot 7648 Kootenay 014-046-458
Except Parcel A
(See D. D. 13449I)
and
Parcel A (See D.D. Kootenay 014-046-407 64.983
13449I)
District Lot 7648
</TABLE>
Page 1
<PAGE> 46
<TABLE>
<S> <C> <C> <C>
District Lot 7959 Kootenay 014-046-482 109.259
Except (1), Parcel
1 (Reference Plan
5828I) and Part
included in Plan 1321
District Lot 8653 Kootenay 014-045-907 43.708
District Lot 9126 Kootenay 014-045-869 16.188
-------
TOTAL 576.514
=======
</TABLE>
BLOCK 2
TIMBER LICENCES
<TABLE>
<CAPTION>
REPLACES SPECIAL
TIMBER LICENCES TIMBER LICENCES LAND DISTRICT HECTARES
- --------------- ---------------- ------------- --------
<S> <C> <C> <C>
T0420 TL 2671p Kootenay 64
T0442 TL 2737p Kootenay 70
T0490 TL 7318p Kootenay 71
----
TOTAL 205
====
</TABLE>
BLOCK 3
CROWN GRANTED LANDS
<TABLE>
<CAPTION>
LAND TITLES
CROWN GRANTS LAND DISTRICT PARCEL IDENTIFIER HECTARES
- ------------ ------------- ----------------- --------
<S> <C> <C> <C>
Assigned Parcel Kootenay 012-490-628 62.728
4, District Lot 373
Plan X13, Except
Parcel 1 (Reference
Plan 110363I)
Parcel A (sketch Kootenay 014-045-443 2 257.416
Plan 596I)
District Lot 811
District Lot 860 Kootenay 014-045-508 1 082.977
District Lot 870 Kootenay 014-015-595 303.102
District Lot 2719 Kootenay 014-015-609 55.039
District Lot 7682, Kootenay 014-025-001 32.376
except part included
in Plan NEP 20435
Lot 17 of Kootenay 014-025-191 7.082
District Lots
7893 and 7894,
Plan 1194
</TABLE>
Page 2
<PAGE> 47
<TABLE>
<S> <C> <C> <C>
Lot 18 of Kootenay 014-025-221 7.082
District Lots
7893 and 7894,
Plan 1194
Lot 20 of Kootenay 014-025-256 7.082
District Lots
7893 and 7894,
Plan 1194
Lot 21 of Kootenay 014-025-299 7.082
District Lots
7893 and 7894,
Plan 1194
Lot 22 of Kootenay 014-025-311 8.903
District Lots
7893 and 7894,
Plan 1194
Lot 23 of Kootenay 014-025-361 7.082
District Lots
7893 and 7894,
Plan 1194
Lot 24 of Kootenay 014-025-396 8.903
District Lots
7893 and 7894,
Plan 1194
Lot 25 of Kootenay 014-025-434 6.523
District Lots
7893 and 7894,
Plan 1194
Lot 26 of Kootenay 014-025-451 8.903
District Lots
7893 and 7894,
Plan 1194
Lot 27 of Kootenay 014-025-477 5.730
District Lots
7893 and 7894,
Plan 1194
</TABLE>
Page 3
<PAGE> 48
<TABLE>
<S> <C> <C> <C>
Lot 28 of Kootenay 014-025-515 8.903
District Lots
7893 and 7894,
Plan 1194
Lot 29 of Kootenay 014-025-558 5.431
District Lots
7893 and 7894,
Plan 1194
Lot 30 of Kootenay 014-025-639 8.648
District Lots
7893 and 7894,
Plan 1194
Lot 31 of Kootenay 014-025-663 5.673
District Lots
7893 and 7894,
Plan 1194
Lot 32 of Kootenay 014-025-680 8.142
District Lots
7893 and 7894,
Plan 1194
Lot 33 of Kootenay 014-025-701 5.766
District Lots
7893 and 7894,
Plan 1194
Lot 34 of Kootenay 014-025-728 7.891
District Lots
7893 and 7894,
Plan 1194
Lot 35 of Kootenay 014-025-752 5.378
District Lots
7893 and 7894,
Plan 1194
Lot 36 of Kootenay 014-025-779 7.891
District Lots
7893 and 7894,
Plan 1194
Lot 37 of Kootenay 014-025-787 5.961
District Lots
7893 and 7894,
Plan 1194
</TABLE>
Page 4
<PAGE> 49
<TABLE>
<S> <C> <C> <C>
Lot 40 of Kootenay 014-025-795 4.641
District Lots
7893 and 7894,
Plan 1194
Lot 42 of Kootenay 014-025-809 2.994
District Lots
7893 and 7894,
Plan 1194
Lot 43 of Kootenay 014-025-817 3.974
District Lots
7893 and 7894,
Plan 1194
Lot 44 of Kootenay 014-025-825 4.734
District Lots
7893 and 7894,
Plan 1194
Lot 49 of Kootenay 014-025-984 4.111
District Lots
7893 and 7894,
Plan 1194
Lot 50 of Kootenay 014-025-841 4.047
District Lots
7893 and 7894,
Plan 1194
Lot 77 of Kootenay 014-025-868 5.042
District Lots
7893 and 7894,
Plan 1194
Lot 83 of Kootenay 014-025-892 8.903
District Lots
7893 and 7894,
Plan 1194
Lot 85 of Kootenay 014-025-914 8.903
District Lots
7893 and 7894,
Plan 1194
Lot 86 of Kootenay 014-025-949 8.903
District Lots
7893 and 7894,
Plan 1194
Lot 20 of Kootenay 014-029-235 4.310
District Lot 8029,
Plan 822
Lot 21 of Kootenay 014-029-286 4.200
District Lot 8029,
Plan 822
</TABLE>
Page 5
<PAGE> 50
<TABLE>
<S> <C> <C> <C>
Lot 22 of Kootenay 014-029-316 4.200
District Lot 8029,
Plan 822
Lot 23 of Kootenay 014-029-332 4.431
District Lot 8029, --------
Plan 822
TOTAL 4011.087
========
</TABLE>
<TABLE>
<CAPTION>
REPLACES
TIMBER LICENCES TIMBER BERTH LAND DISTRICT HECTARES
- --------------- ------------ ------------- --------
<S> <C> <C> <C>
T0160 333 Kootenay 63
T0190 392 Kootenay 780
T0220 499 Kootenay 27
----
TOTAL 870
====
</TABLE>
<TABLE>
<CAPTION>
REPLACES SPECIAL
TIMBER LICENCES TIMBER LICENCES LAND DISTRICT HECTARES
- --------------- ---------------- ------------- --------
<S> <C> <C> <C>
T0109 TL 595p Kootenay 49
T0120 TL 600p Kootenay 41
T0145 TL 604p Kootenay 18
T0150 TL 607p Kootenay 26
T0159 TL 879p Kootenay 122
T0170 TL 880p Kootenay 223
T0215 TL 881p Kootenay 55
T0240 TL 882p Kootenay 223
T0300 TL 883p Kootenay 185
T0350 TL 884p Kootenay 12
T0370 TL 885p Kootenay 221
T0460 TL 4842p Kootenay 27
</TABLE>
Page 6
<PAGE> 51
<TABLE>
<S> <C> <C> <C>
T0479 TL 4843p Kootenay 40
T0480 TL 4845p Kootenay 62
T0500 TL 10014p Kootenay 10
T0519 TL 10015p Kootenay 46
T0540 TL 10016p Kootenay 37
T0558 TL 10017p Kootenay 113
T0570 TL 10019p Kootenay 152
T0595 TL 10029p Kootenay 87
T0610 TL 10030p Kootenay 102
T0620 TL 2982p Kootenay 147
T0631 TL 2983p Kootenay 259
T0639 TL 2984p Kootenay 84
T0642 TL 2985p Kootenay 125
T0649 TL 10031p Kootenay 67
-----
TOTAL 2 533
=====
</TABLE>
BLOCK 4
<TABLE>
<CAPTION>
LAND TITLES
CROWN GRANTS LAND DISTRICT PARCEL IDENTIFIER HECTARES
- ------------ ------------- ----------------- --------
<S> <C> <C> <C>
Sublot 6, District Kootenay 014-036-002 56.658
Lot 4599,
Plan X35
Lot 1 of Lot 6549, Kootenay 014-018-217 6.070
Plan 1605
Lot 2 of Lot 6549, Kootenay 014-018-241 6.475
Plan 1605
Lot 3 of Lot 6549, Kootenay 014-018-268 6.576
Plan 1605
Lot 4 of Lot 6549, Kootenay 014-018-284 6.649
Plan 1605
Lot 5 of Lot 6549, Kootenay 014-018-306 6.240
Plan 1605
</TABLE>
Page 7
<PAGE> 52
<TABLE>
<S> <C> <C> <C>
Lot 7 of Lot 6549, Kootenay 014-018-322 5.451
Plan 1605
Lot 8 of Lot 6549, Kootenay 014-018-357 5.613
Plan 1605
Lot 9 of Lot 6549, Kootenay 014-018-390 6.159
Plan 1605
Lot 10 of Kootenay 014-018-403 4.289
Lot 6549,
Plan 1605
Lot 11 of Kootenay 014-018-420 3.982
Lot 6549,
Plan 1605
Lot 12 of Kootenay 014-018-438 3.978
Lot 6549,
Plan 1605
Lot 6 of Kootenay 014-045-699 4.261
-------
District Lot 6549,
Plan 853
CROWN GRANT 122 401
=======
SUMMARY
Total Crown Grants 4 710 002
Total Timber Licences 3 608 000
---------
GRAND TOTAL 8 318 002
=========
</TABLE>
Page 8
<PAGE> 53
SCHEDULE "B"
ARROW LAKES TREE FARM LICENCE
TREE FARM LICENCE NUMBER 23
1. Schedule "B" Land
1.1 For the purposes of the definition of "Schedule 'B' Land" in Paragraph
24.01 of this Licence, "Crown land described in Schedule 'B'" means all
Crown land within the boundaries described in Paragraph 2, except for
Alienated Crown Land.
2. Boundaries
2.1 The boundaries referred to in Paragraph 1 are as follows:
"Metes and bounds legal description"
3. Interpretation
3.1 "Alienated Crown Land" means Crown land which is not available for
inclusion in Schedule "B" Land and, without restricting the generality
of the foregoing, includes Crown land which:
(a) is, as of the effective date of this Licence, within the area
of:
(i) a park or ecological reserve;
(ii) a lease, licence of exclusive occupation, or timber
licence held by a person other than the Licensee, or
(iii) a highway (or road) right of way where the highway
(or road) is or is deemed, declared or determined to
be a public highway under the Highway Act (or a
Forest Service road under the Forest Act); or
(b) becomes vested in the Crown by escheat, reversion, transfer or
otherwise during the term of this Licence, except as provided
in this Licence.
3.2 Paragraph 24.02 of this Licence applies to this Schedule.
3.3 The map(s) accompanying this Schedule are for convenience only, and if
there is any discrepancy between the map(s) and the description of
boundaries in Paragraph 2, the description in Paragraph 2 will be
deemed to be correct.
3.4 In this Schedule and on the accompanying map(s), identification of land
which is within the boundaries described in Paragraph 2, but is not
Schedule "B" Land does not mean all other land which is within these
boundaries, but is not so identified is Schedule "B" Land.
Note: Crown land does not include land owned by an agent of the
Crown, nor land vested in the federal Crown.
<PAGE> 54
SCHEDULE "B"
ARROW LAKES TREE FARM LICENCE
TREE FARM LICENCE NUMBER 23
All Crown lands not otherwise alienated within the area outlined in bold black
on the accompanying maps except Crown land reverted subsequent to 1971, which
was subject to an old temporary tenure (within the meaning of the Forest Act
assented to March 30, 1972) and held by a person other than the licensee.
BLOCK 1
Removed by Instrument Number 135, now forms Selkirk Tree Farm Licence Number 55
and Goldstream Tree Farm Licence Number 56.
BLOCK 2
AREA A
Commencing at the northwest corner of Lot 863, Kootenay Land District, also
being a point on the natural boundary of Upper Arrow Lake on the easterly shore
thereof; thence in a general northwesterly direction along the natural boundary
of said Upper Arrow Lake on the easterly shore thereof to the southeast corner
of Lot 8130; thence northerly and westerly along the easterly and northerly
boundaries of Lots 8130 and 8408 to the natural boundary of aforesaid Upper
Arrow Lake on the easterly shore thereof; thence in a general northerly
direction along the natural boundary of said Upper Arrow Lake on the easterly
shore thereof to the southwest corner of Lot 1139; thence easterly and northerly
along the southerly and easterly boundaries of said Lot 1139 to the southwest
corner of Lot 3945; thence easterly along the southerly boundary of said Lot
3945 to the northwest corner of Lot 1138; thence southerly and easterly along
the westerly and southerly boundaries of said Lot 1138 to the southeast corner
thereof; thence northerly and westerly along the easterly and northerly
boundaries of said Lots 1138 and 3945 to the northwest corner of said Lot 3945;
thence southerly along the westerly boundary of said Lot 3945 to the northeast
corner of aforesaid Lot 1139; thence westerly along the northerly boundary of
said Lot 1139 to the natural boundary of aforesaid Upper Arrow Lake on the
easterly shore thereof; thence in a general northwesterly direction along the
natural boundary of said Upper Arrow Lake on the easterly shore thereof to the
northwest corner
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<PAGE> 55
of Lot 5069; thence easterly along the northerly boundary of said Lot 5069 to
the westerly limit of the right of way of Highway No. 23; thence in a general
northerly direction along the westerly limit of the right of way of said Highway
No. 23 to a point 372 metres north and 1.251 kilometres west of the northeast
corner of said Lot 5069; thence west to the natural boundary of aforesaid Upper
Arrow Lake on the easterly shore thereof; thence in a general northerly
direction along the natural boundary of said Upper Arrow Lake on the easterly
shore thereof to the southwest corner of Lot 11005; thence easterly and
northerly along the southerly and easterly boundaries of Lots 11005, 2451 and
100 to the northeast corner of said Lot 100; thence westerly along the northerly
boundary of said Lot 100 to the natural boundary of aforesaid Upper Arrow Lake
on the easterly shore thereof; thence in a general northerly direction along the
natural boundary of said Upper Arrow Lake on the easterly shore thereof to a
point 107 metres south and 464 metres west of the southwest corner of Lot 12459;
thence south 3.181 kilometres; thence east 1.615 kilometres; thence north to the
southerly boundary of Lot 1146; thence easterly along the southerly boundary of
said Lot 1146 to the southeast corner thereof; thence northerly along the
easterly boundary of said Lot 1146 to the southerly boundary of Lot 7044; thence
easterly and northerly along the southerly and easterly boundaries of said Lot
7044 to the southerly boundary of Lot 7635; thence easterly along the southerly
boundary of said Lot 7635 to the westerly boundary of Lot 10633; thence
southerly, easterly, northerly, easterly and northerly along the westerly,
southerly, easterly, southerly and easterly boundaries of said Lot 10633 to the
southerly boundary of Lot 1143; thence easterly along the southerly boundary of
said Lot 1143 to the southeast corner thereof; thence northerly along the
easterly boundaries of Lots 1143 and 2112 to the northeast corner of said Lot
2112; thence due north to the southerly boundary of Lot 7818; thence easterly
along the southerly boundary of said Lot 7818 to the southeast corner thereof;
thence northerly along the easterly boundaries of Lots 7818, 8668, 7956 and 7957
to the northeast corner of said Lot 7957; thence northerly along the westerly
boundary of Lot 6012 to the northwest thereof; thence northerly in a straight
line to the southeast corner of Lot 8406; thence northerly along the easterly
boundary of said Lot 8406 to the southwest corner of Lot 7584; thence easterly
and northerly along the southerly and easterly boundaries of said Lot 7584 to
the northeast corner thereof; thence westerly along the northerly boundaries of
Lots 7584, 8308, 8309, 8683 and 8614 to the northwest corner of said Lot 8614;
thence southerly along the westerly boundary of said Lot 8614 to the northerly
boundary of Lot 2111; thence westerly along the northerly boundaries of Lots
2111 and 8407 to the northwest corner of
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<PAGE> 56
said Lot 8407; thence southerly along the westerly boundary of said Lot 8407 to
the natural boundary of Galena Bay on the westerly shore thereof; thence in a
general southwesterly direction along the natural boundary of said Galena Bay on
the westerly shore thereof to the natural boundary of aforesaid Upper Arrow Lake
on the easterly shore thereof; thence in a general northerly direction along the
natural boundary of said Upper Arrow Lake on the easterly shore thereof to the
natural boundary of the Northeast Arm of said Upper Arrow Lake on the southerly
shore thereof; thence in a general northeasterly direction along the natural
boundary of the Northeast Arm of said Upper Arrow Lake on the southeasterly
shore thereof to a point 998 metres south and 3.793 kilometres west of the
southwest corner of Lot 11331; thence east to the natural boundary of Beaton
Creek on the right bank thereof; thence in a general northerly direction along
the natural boundary of said Beaton Creek on the right bank thereof to the
southerly boundary of Lot 505; thence easterly and northerly along the southerly
and easterly boundaries of said Lot 505 to the southerly boundary of Lot 502;
thence easterly along the southerly boundary of said Lot 502 to the southwest
corner of Lot 7959; thence northerly along the westerly boundary of said Lot
7959 to the southwest corner of Lot 1 of said Lot 7959, Plan 1321, Nelson Land
Title Office; thence easterly along the southerly boundaries of Lots 1 and 2 of
said Lot 7959, Plan 1321 to the southeast corner of said Lot 2; thence northerly
along the easterly boundary of said Lot 2 to the northeast corner thereof;
thence due north to the southerly boundary of Assigned Parcel Number 1
(Reference Plan 5828-I); thence in a general easterly, northerly, westerly,
southwesterly and southerly direction along the southerly, easterly, northerly,
northwesterly and westerly boundaries of said Assigned Parcel Number 1
(Reference Number 5828-I) to the northerly limit of Camborne Road, Plan 1521;
thence in a general southwesterly direction along the northerly limit of said
Camborne Road, Plan 1521 to the westerly boundary of aforesaid Lot 7959; thence
northerly along the westerly boundary of said Lot 7959 to the natural boundary
of the Northeast Arm of aforesaid Upper Arrow Lake on the southerly shore
thereof; thence in a general southeasterly, northerly and westerly direction
along the natural boundary of the Northeast Arm of said Upper Arrow Lake on the
southerly, easterly, and northerly shores thereof to the southwest corner of Lot
503; thence northerly along the westerly boundary of said Lot 503 to the
northwest corner thereof; thence easterly along the northerly boundary of said
Lot 503 101 metres; thence north 1.127 kilometres; thence west 111 metres;
thence northwesterly in a straight line to the summit of Comaplix Mountain, also
being a point on the westerly boundary of the watershed of Incomappleux River;
thence in a general northerly
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<PAGE> 57
direction along westerly boundary of the watershed of said Incomappleux River to
the northerly boundary of the watershed of MacDougal Creek, also being a point
on the southerly boundary of Glacier National Park; thence in a general easterly
direction along the southerly boundary of said Glacier National Park to the
easterly boundary of the watershed of aforesaid Incomappleux River; thence in a
general southerly direction along the easterly boundary of the watershed of said
Incomappleux River to the northwesterly boundary of Lot 1973; thence
southwesterly along the northwesterly boundary of said Lot 1973 to the
northeasterly boundary of Lot 2150; thence northwesterly along the northeasterly
boundaries of Lots 2150, 2151 and 2147 to the most northerly corner of said Lot
2147; thence southwesterly along the northwesterly boundary of said Lot 2147 to
the most westerly corner thereof; thence southeasterly along the southwesterly
boundaries of Lots 2147, 2151 and 2150 to the most southerly corner of said Lot
2150; thence northeasterly along the southeasterly boundary of said Lot 2150 to
the southwesterly boundary of aforesaid Lot 1973; thence southeasterly along the
southwesterly boundary of said Lot 1973 to the easterly boundary of the
watershed of aforesaid Incomappleux River; thence in a general southerly
direction along the easterly boundary of the watershed of said Incomappleux
River to the northeasterly boundary of the watershed of Ferguson Creek; thence
in a general southeasterly direction along the northeasterly boundary of the
watershed of said Ferguson Creek to the northwesterly boundary of Lot 4705;
thence southwesterly, southeasterly and northeasterly along the northwesterly,
southwesterly and southeasterly boundaries of said Lot 4705 to the easterly
boundary of the watershed of said Ferguson Creek; thence in a general southerly
direction along the easterly boundary of the watershed of said Ferguson Creek to
the northerly boundary of the watershed of Lardeau Creek; thence in a general
northeasterly direction along the northerly boundary of the watershed of said
Lardeau Creek to the southwesterly boundary of Lot 4725; thence southeasterly
along the southwesterly boundary of said Lot 4725 to the northwesterly boundary
of Lot 4722; thence southwesterly, southeasterly, northeasterly and
northwesterly along the northwesterly, southwesterly, southeasterly and
northeasterly boundaries of said Lot 4722 to the northerly boundary of the
watershed of aforesaid Lardeau Creek; thence in a general northeasterly
direction along the northerly boundary of the watershed of said Lardeau Creek to
the southwesterly boundary of Lot 4568; thence southeasterly and northeasterly
along the southwesterly and southeasterly boundaries of said Lot 4568 to the
northerly boundary of the watershed of said Lardeau Creek; thence in a general
northeasterly and southerly direction along the northerly and easterly
boundaries of the watershed of said Lardeau Creek to
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<PAGE> 58
a point due east of the most southerly corner of Lot 8681; thence west to the
southeasterly boundary of Lot 5696; thence northeasterly, northwesterly and
southwesterly along the southeasterly, northeasterly and northwesterly
boundaries of said Lot 5696 to the southeasterly boundary of Lot 7433; thence
northeasterly, northwesterly and southwesterly along the southeasterly,
northeasterly and northwesterly boundaries of said Lot 7433 to the most westerly
corner thereof; thence southeasterly along the southwesterly boundaries of Lots
7433 and 5696 to a point due east of the most southerly corner of aforesaid Lot
8681; thence west to the most easterly northeast boundary of Lot 13044; thence
northwesterly and southwesterly along the northeasterly and northwesterly
boundaries of said Lot 13044 to the northeasterly boundary of Lot 13046; thence
northwesterly and southwesterly along the northeasterly and northwesterly
boundaries of said Lot 13046 to the northwesterly boundary of Lot 13048; thence
southwesterly along the northwesterly boundary said Lot 13048 to a point due
east of the most southerly corner of aforesaid Lot 8681; thence west to the most
southerly corner of said Lot 8681; thence northeasterly, southeasterly,
northeasterly and northwesterly along the southeasterly, southwesterly,
southeasterly and northeasterly boundaries of said Lot 8681 to the southerly
boundary of Lot 8680; thence easterly, northerly, westerly, southerly and
easterly along the southerly, easterly, northerly, westerly and southerly
boundaries of said Lot 8680 to the northwesterly boundary of said Lot 8681;
thence southwesterly and southeasterly along the northwesterly and southwesterly
boundaries of said Lot 8681 to the most southerly corner thereof; thence south
37 degrees west 1.851 kilometres; thence south 44 degrees west 2.300 kilometres,
more or less, to a point on the natural boundary of Trout Lake on the
northeasterly shore thereof; thence in a general northwesterly direction along
the natural boundary of said Trout Lake on the northeasterly shore thereof to
the southerly boundary of Lot 10645; thence easterly, northerly and westerly
along the southerly, easterly and northerly boundaries of said Lot 10645 to the
southeast corner of Lot 769; thence northerly along the easterly boundaries of
Lots 769 and 1147 to the northeast corner of said Lot 1147; thence westerly
along the northerly boundary of said Lot 1147 to the easterly boundary of Lot
771; thence northerly, westerly, southerly and easterly along the easterly,
northerly, westerly and southerly boundaries of said Lot 771 to the northwest
corner of Lot 11328; thence southerly and easterly along the westerly and
southerly boundaries of Lots 11328 and 190 to the natural boundary of aforesaid
Trout Lake on the southwesterly shore thereof; thence in a general southeasterly
direction along the natural boundary of said Trout Lake on the southwesterly
shore thereof to a point 242 metres north and 280 metres west of the northwest
corner of
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Lot 15703; thence south 60 degrees west 13.325 kilometres, more or less, to the
easterly boundary of the watershed of Halfway River; thence in a general
southerly direction along the easterly boundary of the watershed of said Halfway
River to the northerly boundary of the watershed of Kuskanax Creek; thence in a
general southwesterly direction along the northerly boundary of the watershed of
said Kuskanax Creek to a point due east of the northeast corner of Lot 11743;
thence west to the northeast corner of said Lot 11743; thence westerly along the
northerly boundaries of Lots 11743 and 863 to the northwest corner of said Lot
863, being the point of commencement.
Excluding thereout all that foreshore and land covered by water within the above
described area.
AREA B
Commencing at the northwest corner of Lot 12769, Kootenay Land District; thence
north 402 metres; thence east 1.609 kilometres; thence north 402 metres; thence
east 1.609 kilometres; thence south 402 metres; thence east 1.609 kilometres;
thence south 805 metres; thence west 1.609 kilometres; thence south 402 metres;
thence west 1.609 kilometres; thence north 402 metres; thence west 1.609
kilometres, more or less, to the westerly boundary of aforesaid Lot 12769;
thence northerly along the westerly boundary of said Lot 12769 to the northwest
corner thereof, being the point of commencement.
Excluding thereout all that foreshore and land covered by water within the above
described area.
AREA C
Commencing at the southeast corner of Lot 12459, Kootenay Land District; thence
southerly along the westerly boundary of Lot 1146 68.470 metres; thence due west
to the natural boundary of Upper Arrow Lake on the easterly shore thereof;
thence in a general northeasterly direction along the natural boundary of said
Upper Arrow Lake on the easterly shore thereof to the westerly boundary of
aforesaid Lot 12459; thence southerly and easterly along the westerly and
southerly boundaries of said Lot 12459 to the southeast corner thereof, being
the point of commencement.
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<PAGE> 60
Excluding thereout all that foreshore and land covered by water within the above
described area, and those areas of land described below, which are currently
active amendments and instruments within Tree Farm Licence 23, Block 2.
<TABLE>
<CAPTION>
DOCUMENT DATE PARTICULARS
- -------- ---- -----------
<S> <C> <C>
Am #8 56-10-19 Removes Lots 8291, 8292 and 10373,
Kootenay Land District.
Am #9 57-01-04 Removes Lots 15771 - 15778, Kootenay Land District
Am #15 58-10-23 Removes Lookout site.
Am #33 61-05-03 Removal for proposed Park.
</TABLE>
<TABLE>
<CAPTION>
DOCUMENT DATE PARTICULARS
- -------- ---- -----------
<S> <C> <C>
Am #34 61-05-02 Removal for proposed Park
Am #60 65-01-06 Removes Blocks 1 - 34, 36 - 41, 50 & 55
Plan 6713, Nelson Land Title Office
Am #80 68-05-17 Removes 2 gravel pits
Am #90 69-11-06 Removes 14.4 acres (north of Lot 7952,
Kootenay Land District)
Instr #114 78-10-05 Removes area near Galena Bay
Instr #119 80-02-27 Removes Pipeline R/W and parking lot
Instr #134 91-10-02 Removes Lot 16952, Kootenay Land District
</TABLE>
BLOCK 3
Commencing at the northeast corner of Lot 10391, Kootenay Land District, also
being a point on the natural boundary of Lower Arrow Lake on the westerly shore
thereof; thence westerly and southerly along the northerly and westerly
boundaries of said Lot 10391 to the northerly boundary of Lot 8180; thence
westerly along the northerly boundary of said Lot 8180 to the easterly boundary
of Lot 8409; thence northerly and westerly along the easterly and northerly
boundaries of Lots 8409 and 10026 to the northwest corner of said Lot 10026;
thence southerly along the westerly boundary of said Lot 10026 to the most
northerly northeast corner of Lot 10387; thence westerly along the northerly
boundary of said Lot
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<PAGE> 61
10387 to the northwest corner thereof; thence southerly along the westerly
boundaries of Lots 10387 and 8101 to the northerly boundary of Lot 9148; thence
westerly along the northerly boundary of said Lot 9148 to the northwest corner
thereof; thence south 37 degrees west to a point lying due east of the southeast
corner of Lot 8546; thence west to the southeast corner of said Lot 8546; thence
westerly and northerly along the southerly and westerly boundaries of said Lot
8546 to the southeast corner of Lot 7893; thence westerly along the southerly
boundary of said Lot 7893 to the southwest corner thereof, also being the
southwest corner of Block 86 of Lot 7893, Plan 1194, Nelson Land Title Office;
thence northerly along the westerly boundaries of Blocks 86 and 85 to the
northwest corner of said Block 85; thence easterly along the northerly boundary
of said Block 85 to the northeast corner thereof; thence easterly in a straight
line to the northwest corner of Block 18; thence easterly along the northerly
boundary of said Block 18 to the southeast corner of Block 19; thence northerly
along the easterly boundary of said Block 19 to the southeast corner of Block
20; thence westerly along the southerly boundary of said Block 20 to the
southwest corner thereof; thence westerly in a straight line to the southeast
corner of Block 83; thence westerly along the southerly boundary of said Block
83 to the southwest corner thereof; thence northerly along the westerly
boundaries of Blocks 83, 22, 24, 26, 28, 30, 32 and 34 to the southwest corner
of Block 36; thence northerly and easterly along the westerly and northerly
boundaries of Blocks 36 and 43 to a point due south of the southwest corner of
Block 44; thence northerly in a straight line to the southwest corner of said
Block 44; thence northerly and easterly along the westerly and northerly
boundaries of said Block 44 to the northwest corner of Block 40; thence
easterly, southerly and easterly along the northerly, easterly and northerly
boundaries of said Block 40 to the most easterly northeast corner thereof;
thence southerly along the easterly boundary of said Block 40 to the southeast
corner thereof; thence due south to the northerly boundary of Block 42; thence
easterly along the northerly boundary of said Block 42 to the northeast corner
thereof; thence easterly in a straight line to the northwest corner of Block 37;
thence easterly along the northerly boundary of said Block 37 to the northeast
corner thereof, also being a point on the natural boundary of Barnes Creek on
the right bank thereof; thence in a general southerly direction along the
easterly boundaries of Blocks 37, 35, 33, 31, 29, 27 and 25 to the northerly
boundary of Block 23; thence easterly along the northerly boundary of said Block
23 to the northeast corner thereof, also being a point on the westerly boundary
of aforesaid Lot 8546; thence northerly and easterly along the westerly and
northerly boundaries of said Lot 8546 to the
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<PAGE> 62
southeast corner of Lot 8186; thence northerly along the easterly boundary of
said Lot 8186 to the southerly boundary of Lot 8548; thence easterly along the
southerly boundary of said Lot 8548 to the southeast corner thereof; thence
northerly and westerly along the easterly and northerly boundaries of Lots 8548
and 8170 to the northwest corner of said Lot 8170, also being a point on the
natural boundary of Whatshan Lake on the easterly shore thereof; thence in a
general southerly, westerly and northerly direction along the natural boundary
of said Whatshan Lake on the easterly, southerly and westerly shores thereof to
the southeast corner of Lot 8187; thence westerly and northerly along the
southerly and westerly boundaries of said Lot 8187 to the most southerly
southeast corner of Lot 8189; thence westerly along the southerly boundaries of
Lots 8189 and 8544 to the southwest corner of said Lot 8544; thence due west to
the westerly boundary of the watershed of aforesaid Barnes Creek; thence in a
general northerly direction along the westerly boundaries of the watersheds of
Barnes Creek, Whatshan Lake, Arrow Park Creek and Upper Arrow Lake to the
southerly boundary of Monashee Provincial Park, established by Order In Council
1201, approved and ordered August 2, 1990; thence in a general easterly and
northwesterly direction along the southerly, and northeasterly boundaries of
said Monashee Provincial Park to the westerly boundary of the watershed of
aforesaid Upper Arrow Lake; thence in a general northerly direction along the
westerly boundary of the watershed of said Upper Arrow Lake to a point due west
of the southwest corner of the southeast quarter of Section 5, Township 23,
Range 2, W6M; thence east to the southwest corner of the southeast quarter of
said Section 5; thence easterly along the southerly boundaries of Sections 5, 4
and 3 to the northwest corner of Section 34, Township 22, Range 2, W6M; thence
easterly along the northerly boundary of said Section 34 to the northwest corner
of Section 35; thence southerly and easterly along the westerly and southerly
boundaries of said Section 35 to the natural boundary of aforesaid Upper Arrow
Lake on the westerly shore thereof; thence in a general southerly direction
along the natural boundary of said Upper Arrow Lake on the westerly shore
thereof to the easterly boundary of Section 7, Township 22, Range 1, W6M; thence
southerly along the easterly boundaries of Sections 7 and 6 to the northwest
corner of the southwest quarter of Section 5; thence easterly and southerly
along the northerly and easterly boundaries of the southwest quarter of said
Section 5 to the northerly boundary of Section 32, Township 21, Range 1, W6M;
thence easterly along the northerly boundary of said Section 32 to the westerly
limit of the right of way of Highway No. 23; thence in a general southeasterly
direction along the westerly limit of the right of way of said Highway No. 23 to
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<PAGE> 63
the easterly boundary of aforesaid Section 32; thence southerly along the
easterly boundary of said Section 32 to the northwest corner of the southwest
quarter of Section 33; thence easterly along the northerly boundary of the
southwest quarter of said Section 33 to the westerly limit of the right of way
aforesaid Highway No. 23; thence in a general southeasterly direction along the
westerly limit of the right of way of said Highway No. 23 to the easterly
boundary of the southwest quarter of said Section 33; thence southerly along the
easterly boundary of the southwest quarter of said Section 33 to the northwest
corner of the northeast quarter of Section 28; thence easterly and southerly
along the northerly and easterly boundaries of the northeast quarter of said
Section 28 to the northerly boundary of Legal Subdivision 12 of Section 27;
thence easterly along the northerly boundaries of Legal Subdivisions 12 and 11
to the natural boundary of aforesaid Upper Arrow Lake on the westerly shore
thereof; thence in a general southeasterly direction along the natural boundary
of said Upper Arrow Lake on the westerly shore thereof to the easterly boundary
of the west half of Section 23; thence southerly along the easterly boundary of
the west half of said Section 23 to the northerly boundary of Section 14; thence
easterly along the northerly boundary of said Section 14 to the northeast corner
thereof; thence southerly along the easterly boundaries of Sections 14 and 11 to
the northwest corner of Section 1; thence easterly and southerly along the
northerly and easterly boundaries of the northwest quarter and the southeast
quarter of said Section 1 to the northeast corner of Section 36, Township 20,
Range 1, W6M; thence southerly along the easterly boundary of said Section 36 to
the northwest corner of the fractional south half of Section 31, Township 20,
Range 29, W5M; thence easterly along the northerly boundary of the fractional
south half of said Section 31 to the northeast corner thereof; thence southerly
along the easterly boundaries of Sections 31 and 30 to the southwest corner of
fractional Section 29; thence easterly along the southerly boundary of said
fractional Section 29 to a point due north of the northwest corner of Lot 5092;
thence south to the northwest corner of said Lot 5092; thence southerly and
easterly along the westerly and southerly boundaries of said Lot 5092 to the
northwest corner of Lot 3257; thence southerly along the westerly boundary of
said Lot 3257 to the natural boundary of aforesaid Upper Arrow Lake on the
westerly shore thereof; thence in a general southerly direction along the
natural boundary of said Upper Arrow Lake on the westerly shore thereof to the
westerly boundary of Lot 1095; thence southerly and easterly along the westerly
and southerly boundaries of said Lot 1095 to the natural boundary of said Upper
Arrow Lake on the westerly shore thereof; thence in a general southeasterly
direction along the natural boundary of said
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<PAGE> 64
Upper Arrow Lake on the westerly shore thereof to the westerly boundary of Lot
3259; thence southerly and easterly along the westerly and southerly boundaries
of said Lot 3259 to the natural boundary of said Upper Arrow Lake on the
westerly shore thereof; thence in a general southeasterly direction along the
natural boundary of said Upper Arrow Lake on the westerly shore thereof to the
westerly boundary of Lot 1096; thence southerly and easterly along the westerly
and southerly boundaries of Lots 1096 and 445 to the natural boundary of
aforesaid Upper Arrow Lake on the westerly shore thereof; thence in a general
southerly direction along the natural boundary of said Upper Arrow Lake on the
westerly shore thereof to the northerly boundary of Lot 8312; thence westerly
along the northerly boundary of said Lot 8312 to the northwest corner thereof;
thence southerly along the westerly boundaries of Lots 8312 and 12898 to the
southwest corner of said Lot 12898, also being a point on the natural boundary
of aforesaid Upper Arrow Lake on the westerly shore thereof; thence in a general
southerly direction along the natural boundary of said Upper Arrow Lake on the
westerly shore thereof to the natural boundary of an unnamed creek on the right
bank thereof, said unnamed creek flowing southeasterly into said Upper Arrow
Lake at a point 117 metres south and 435 metres east of the most southerly
southwest corner of Lot 7902; thence in a general northwesterly direction along
the natural boundary of said unnamed creek on the right bank thereof to a point
5 metres north and 201 metres east of the most southerly southwest corner of
said Lot 7902; thence south 1.152 kilometres; thence due east to the natural
boundary of aforesaid Upper Arrow Lake on the westerly shore thereof; thence in
a general southerly direction along the natural boundary of said Upper Arrow
Lake on the westerly shore thereof to the northerly boundary of Lot 4576; thence
westerly along the northerly boundaries of Lots 4576 and 7897 to the northwest
corner of said Lot 7897; thence southerly and easterly along the westerly and
southerly boundaries of Lots 7897 and 7677 to the southwest corner of Lot 7676;
thence easterly along the southerly boundary of said Lot 7676 to the natural
boundary of aforesaid Upper Arrow Lake on the westerly shore thereof; thence in
a general southerly direction along the natural boundary of said Upper Arrow
Lake on the westerly shore thereof to the northerly boundary of Lot 10591;
thence westerly, southerly and easterly along the northerly, westerly and
southerly boundaries of said Lot 10591 to the natural boundary of aforesaid
Upper Arrow Lake on the westerly shore thereof; thence in a general southerly
direction along the natural boundary of said Upper Arrow Lake on the westerly
shore thereof to the westerly boundary of Lot 12325; thence southerly and
easterly along the westerly and southerly boundaries of said Lot 12325 to the
natural boundary of said Upper Arrow Lake on
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the westerly shore thereof; thence in a general southerly direction along the
natural boundary of said Upper Arrow Lake on the westerly shore thereof to the
northerly boundary of Lot 8033; thence westerly and southerly along the
northerly and westerly boundaries of said Lot 8033 to the northerly boundary of
Lot 8034; thence westerly along the northerly boundary of said Lot 8034 to the
northeast corner of Lot 8510; thence westerly and southerly along the northerly
and westerly boundaries of Lots 8510, 12774, 8564, and 12775 to the northerly
boundary of Lot 8566; thence westerly along the northerly boundary of said Lot
8566 to the easterly boundary of Lot 12340; thence northerly and westerly along
the easterly and northerly boundaries of said Lot 12340 to the northeast corner
of Lot 8333; thence westerly and southerly along the northerly and westerly
boundaries of said Lot 8333 to the northerly boundary of Lot 373; thence
westerly and southerly along the northerly and westerly boundaries of Lots 373
and 8029 to the southwest corner of said Lot 8029; thence easterly along the
southerly boundary of said Lot 8029 to the northwest corner of Lot 8030; thence
southerly along the westerly boundaries of Lots 8030 and 12776 to the southwest
corner of said Lot 12776; thence easterly along the southerly boundaries of Lots
12776 and 7105 to the northwest corner of Lot 7104; thence southerly along the
westerly boundaries of Lots 7104 and 8512 to the southwest corner of said Lot
8512; thence easterly along the southerly boundary of said Lot 8512 to the
northwest corner of Lot 8027; thence southerly and easterly along the westerly
and southerly boundaries of said Lot 8027 to the westerly boundary of Lot 3619;
thence southerly along the westerly boundaries of Lots 3619, 3620 and 7690 to
the southwest corner of said Lot 7690; thence easterly along the southerly
boundary of said Lot 7690 to the northwest corner of Lot 7691; thence southerly
along the westerly boundaries of Lots 7691 and 12777 to the southwest corner of
said Lot 12777; thence easterly along the southerly boundaries of Lots 12777,
8159 and 7692 to the natural boundary of aforesaid Lower Arrow Lake on the
westerly shore thereof; thence in a general southerly and southwesterly
direction along the natural boundary of said Lower Arrow Lake on the westerly
and northerly shores thereof to the easterly boundary of Lot 7967; thence
northerly along the easterly boundary of said Lot 7967 to the northeast corner
thereof; thence westerly along the northerly boundaries of Lots 7967 and 8691 to
the easterly boundary of Lot 10593; thence northerly and westerly along the
easterly and northerly boundaries of said Lot 10593 to the easterly boundary of
Lot 12786; thence northerly along the easterly boundaries of Lots 12786, 12785
and 9892 to the northeast corner of said Lot 9892; thence westerly and southerly
along the northerly and westerly boundaries of said Lot 9892 to the northerly
boundary of Lot 9889; thence
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westerly along the northerly boundaries of Lots 9889 and 11162 to the northwest
corner of said Lot 11162; thence southerly along the westerly boundaries of Lots
11162, 12784 and 9893 to the southwest corner of said Lot 9893; thence easterly
along the southerly boundary of said Lot 9893 to the northwest corner of Lot
9895; thence southerly and easterly along the westerly and southerly boundaries
of said Lot 9895 to the southeast corner thereof; thence northerly along the
easterly boundaries of Lots 9895 and 9894 to the southwest corner of aforesaid
Lot 12786; thence easterly along the southerly boundaries of said Lot 12786 and
aforesaid Lot 10593 to the westerly boundary of aforesaid Lot 8691; thence
southerly along the westerly boundaries of Lots 8691 and 12895 to the southwest
corner of said Lot 12895; thence south 805 metres; thence west 604 metres;
thence south to the natural boundary of aforesaid Lower Arrow Lake on the
westerly shore thereof; thence in a general southwesterly direction along the
natural boundary of said Lower Arrow Lake on the westerly shore thereof to the
northeast corner of aforesaid Lot 10391, being the point of commencement.
Excluding thereout all that foreshore and land covered by water within the above
described area, and those areas of land described below, which are currently
active amendments and instruments within Tree Farm Licence 23, Block 3.
<TABLE>
<CAPTION>
DOCUMENT DATE PARTICULARS
- -------- ---- -----------
<S> <C> <C>
Am #4 56-01-09 Removes R/W
Am #14 58-05-20 Removes Hydro R/W
Am #19 59-10-05 Removes Lookout site
</TABLE>
<TABLE>
<CAPTION>
DOCUMENT DATE PARTICULARS
- -------- ---- -----------
<S> <C> <C>
Am #21 60-01-12 Removes Lots 16071 - 16080, 16088 - 16095, 16101,
16111 & 16112, Kootenay Land District
Am #22 60-03-09 Removes lookout site
Am #25 60-08-02 Removes T.V. transmission site
Am #27 60-10-20 Removes Hydro R/W
Am #32 62-04-19 Removes special use area
Am #37 61-09-25 Removes T.V. transmission site
</TABLE>
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<PAGE> 67
<TABLE>
<S> <C> <C>
Am #42 62-10-30 Removes picnic site
Am #53 64-07-21 Removes Ptn. of Lot 8543, Kootenay Land District
Am #72 66-11-28 Removes hydro sites
Am #75 67-06-22 Removes hydro R/W
Am #97 70-08-24 Removes navigational aid sites
Am #98 70-12-16 Removes hydro R/W
Am #102 71-08-31 Removes snow course reserve
Am #103 71-09-15 Removes hydro R/W
Am #106 72-07-31 Removes highway rest area
Am #109 72-12-05 Removes repeater site
Instr #123 85-10-15 Removes special use area
</TABLE>
BLOCK 4
AREA A
Commencing at the southeast corner of Sub Lot 17 of Lot 7159, Kootenay Land
District, also being a point on the natural boundary of Lower Arrow Lake on the
westerly shore thereof; thence in a general southerly direction along the
natural boundary of said Lower Arrow Lake on the westerly shore thereof to a
point due north of the most northerly corner of Lot A of Sub Lot 12 of Lot 7159,
Plan 6505, deposited in Nelson Land Title Office; thence south to the most
northerly corner of Lot A of said Plan 6505; thence southerly along the westerly
boundary of Lot A of said Plan 6505 to the southwest corner thereof; thence
easterly along the southerly boundary of Lot A of said Plan 6505 and the
easterly prolongation thereof to the natural boundary of aforesaid Lower Arrow
Lake on the westerly shore thereof; thence in a general southerly direction
along the natural boundary of said Lower Arrow Lake on the westerly shore
thereof to the northerly boundary of Lot 8069; thence westerly along the
northerly boundary of said Lot 8069 to the northwest corner thereof; thence
southerly along the westerly boundary of said Lot 8069 and the southerly
prolongation thereof to the northerly boundary of Sub Lot 37 of Lot 5817; thence
easterly along the northerly boundary of said Sub Lot 37 to the southwest corner
of Sub Lot 10; thence easterly along the southerly boundary of said Sub Lot 10
to the southeast corner thereof, also being a point on the natural boundary of
aforesaid Lower Arrow Lake on the westerly shore thereof; thence in a general
southerly
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<PAGE> 68
direction along the natural boundary of said Lower Arrow Lake on the westerly
shore thereof to the northerly boundary of Sub Lot 24 of aforesaid Lot 5817;
thence westerly along the northerly boundary of said Sub Lot 24 to the northwest
corner thereof; thence southwesterly in a straight line to a point, said point
being 1.050 kilometres north and 5.507 kilometres west of the northeast corner
of Lot 6613; thence west to the westerly boundary of the watershed of aforesaid
Lower Arrow Lake; thence in a general northerly direction along the westerly
boundary of the watershed of said Lower Arrow Lake to a point due west of the
southwest corner of Sub Lot 17 of aforesaid Lot 7159; thence east to the
southwest corner of said Sub Lot 17; thence easterly along the southerly
boundary of said Sub Lot 17 to the southeast corner thereof, being the point of
commencement.
Excluding thereout all that foreshore and land covered by water within the above
described area.
AREA B
Commencing at the northwest corner of Lot 7630, Kootenay Land District, also
being a point on the natural boundary of Lower Arrow Lake on the easterly shore
thereof; thence southerly, easterly, northerly and easterly along the westerly,
southerly, easterly and southerly boundaries of said Lot 7630 to the southwest
corner of Lot 7629; thence easterly along the southerly boundaries of Lots 7629
and 7628 to the most southerly southeast corner of said Lot 7628; thence
northerly and easterly along the easterly and southerly boundaries of said Lot
7628 to the southwest corner of Lot 8032; thence easterly along the southerly
boundaries of Lots 8032 and 7977 to the most southerly southeast corner of said
Lot 7977; thence northerly and easterly along the easterly and southerly
boundaries of said Lot 7977 to the westerly boundary of Lot 8026; thence
southerly and easterly along the westerly and southerly boundaries of Lots 8026,
8160 and 7696 to the northwest corner of Lot 8161; thence southerly along the
westerly boundary of said Lot 8161 to the northerly boundary of Lot 8700; thence
westerly, southerly and easterly along the northerly, westerly and southerly
boundaries of said Lot 8700 to the westerly boundary of Lot 8031; thence
southerly, easterly and northerly along the westerly, southerly and easterly
boundaries of said Lot 8031 to the most westerly southwest corner of Lot 8047;
thence easterly, southerly and easterly along the southerly, westerly and
southerly boundaries of said Lot 8047 to the southwest corner of Lot 8048;
thence easterly, northerly and westerly along the southerly, easterly and
northerly boundaries of said Lot 8048 to
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<PAGE> 69
the southeast corner of Lot 7980; thence northerly along the easterly boundary
of said Lot 7980 to the northeast corner thereof; thence due north to the
northerly boundary of the watershed of Snow Creek; thence in a general easterly
direction along the northerly boundary of the watershed of said Snow Creek to
the northwesterly boundary of Lot 2204; thence southwesterly along the
northwesterly boundary of said Lot 2204 to the northerly boundary of Lot 2205;
thence westerly along the northerly boundaries of Lots 2205 and 2207 to the
northwest corner of said Lot 2207; thence southerly along the westerly boundary
of said Lot 2207 to the northerly boundary of Lot 2206; thence westerly,
southerly, easterly and northerly along the northerly, westerly, southerly and
easterly boundaries of said Lot 2206 to the southerly boundary of aforesaid Lot
2205; thence easterly and northerly along the southerly and easterly boundaries
of said Lot 2205 to the southwesterly boundary of aforesaid Lot 2204; thence
southeasterly along the southwesterly boundary of said Lot 2204 to the westerly
boundary of Lot 2209; thence southerly and northeasterly along the westerly and
southeasterly boundaries of said Lot 2209 to the most southerly corner of
aforesaid Lot 2204; thence northeasterly along the southeasterly boundary of
said Lot 2204 to the southwesterly boundary of Lot 2208; thence southeasterly
and northeasterly along the southwesterly and southeasterly boundaries of said
Lot 2208 to the northerly boundary of the watershed of aforesaid Snow Creek;
thence in a general easterly direction along the northerly boundary of the
watershed of said Snow Creek to the westerly boundary of Valhalla Provincial
Park, established by Order In Council 1201, approved and ordered August 2, 1990;
thence in a general southerly direction along the westerly boundary of said
Valhalla Provincial Park to the southerly boundary of the watershed of Burton
Creek; thence in a general westerly direction along the southerly boundary of
the watershed of said Burton Creek to the easterly boundary of the watershed of
Lower Arrow Lake; thence in a general southerly direction along the easterly
boundary of the watershed of said Lower Arrow Lake to the northerly boundary of
the watershed of Deer Creek; thence in a general westerly and southerly
direction along the northerly and westerly boundaries of the watershed of said
Deer Creek to a point due west of the northwest corner of Sub Lot 31 of Lot
5817; thence east to the northwest corner of said Sub Lot 31; thence southerly
along the westerly boundaries of Sub Lots 31, 8, 7, 6 and 3 to the most
northerly northeast corner of Sub Lot 17; thence westerly along the northerly
boundary of said Sub Lot 17 to the easterly boundary of Sub Lot 21; thence
northerly and westerly along the easterly and northerly boundaries of said Sub
Lot 21 to the natural boundary of aforesaid Lower Arrow Lake on the easterly
shore thereof; thence in a general northerly
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<PAGE> 70
direction along the natural boundary of said Lower Arrow Lake on the easterly
shore thereof to the southerly boundary of Sub Lot 1 of aforesaid Lot 5817;
thence easterly, northerly and westerly along the southerly, easterly and
northerly boundaries of said Sub Lot 1 to the southeast corner of Lot 15 of Sub
Lots 1 and 19 of aforesaid Lot 5817, Plan 841, deposited in Nelson Land Title
Office; thence westerly, northerly and easterly along the southerly, westerly
and northerly boundaries of said Lot 15 to the northeast corner thereof; thence
northerly along the easterly boundaries of Lots 16 and 23 to the northeast
corner of said Lot 23; thence westerly along the southerly boundary of Lot 24 to
the southwest corner thereof; thence southerly, westerly and northerly along the
easterly, southerly and westerly boundaries of Lot 22 to the northwest corner
thereof; thence westerly along the southerly boundary of Lot 26 to the natural
boundary of aforesaid Lower Arrow Lake on the easterly shore thereof; thence in
a general northerly direction along the natural boundary of said Lower Arrow
Lake on the easterly shore thereof to the northerly boundary of said Lot 26;
thence easterly along the northerly boundaries of Lots 26, 25 and 24 to the
northeast corner of said Lot 24, also being a point on the easterly boundary of
aforesaid Sub Lot 19; thence northerly and westerly along the easterly and
northerly boundaries of Sub Lot 19 of said Lot 5817 to the natural boundary of
aforesaid Lower Arrow Lake on the easterly shore thereof; thence in a general
northerly direction along the natural boundary of said Lower Arrow Lake on the
easterly shore thereof to the southerly boundary of Block 5 of Sub Lot 27 of
aforesaid Lot 5817, Plan 5319; thence easterly along the southerly boundary of
said Block 5, Plan 5319 to the southeast corner thereof; thence northerly along
the easterly boundaries of Blocks 5, 4, 3 and 2 to the northeast corner of said
Block 2; thence westerly along the northerly boundary of said Block 2 to the
natural boundary of aforesaid Lower Arrow Lake on the easterly shore thereof;
thence in a general northerly direction along the natural boundary of said Lower
Arrow Lake on the easterly shore thereof to the southerly boundary of Lot 1 of
aforesaid Plan 5319; thence easterly, northerly and westerly along the
southerly, easterly and northerly boundaries of said Lot 1 to the natural
boundary of aforesaid Lower Arrow Lake on the easterly shore thereof; thence in
a general northerly direction along the natural boundary of said Lower Arrow
Lake on the easterly shore thereof to the southerly boundary of Sub Lot 30 of
aforesaid Lot 5817; thence easterly, northerly and westerly along the southerly,
easterly and northerly boundaries of said Sub Lot 30 to the natural boundary of
said Lower Arrow Lake on the easterly shore thereof; thence in a general
northerly direction along the natural boundary of said Lower Arrow Lake on the
easterly shore thereof to the
Page 17
<PAGE> 71
southerly boundary of Lot 8066; thence easterly, northerly, and westerly along
the southerly, easterly and northerly boundaries of said Lot 8066 to the natural
boundary of aforesaid Lower Arrow Lake on the easterly shore thereof; thence in
a general northerly direction along the natural boundary of said Lower Arrow
Lake on the easterly shore thereof to the southerly boundary of Lot 8065; thence
easterly, northerly and westerly along the southerly, easterly and northerly
boundaries of said Lot 8065 to the natural boundary of aforesaid Lower Arrow
Lake on the easterly shore thereof; thence in a general northerly direction
along the natural boundary of said Lower Arrow Lake on the easterly shore
thereof to a point 2.100 kilometres north and 405 metres west of the northeast
corner of aforesaid Lot 8065; thence east 300 metres; thence north 400 metres;
thence west 300 metres, more or less, to the natural boundary of aforesaid Lower
Arrow Lake on the easterly shore thereof; thence in a general northerly
direction along the natural boundary of said Lower Arrow Lake on the easterly
shore thereof to a point 380 metres west and 399 metres south of the southeast
corner of Lot 8063; thence east 105 metres; thence south 45 degrees east 275
metres; thence east 302 metres, more or less, to the easterly boundary of Lot
8062; thence northerly along the easterly boundary of said Lot 8062 543 metres;
thence north 33 degrees west 60 metres, more or less, to the northerly boundary
of said Lot 8062; thence westerly along the northerly boundary of said Lot 8062
to the southeast corner of aforesaid Lot 8063; thence northerly along the
easterly boundary of said Lot 8063 302 metres; thence west 95 metres, more or
less, to the natural boundary of aforesaid Lower Arrow Lake on the easterly
shore thereof; thence in a general northerly direction along the natural
boundary of said Lower Arrow Lake on the easterly shore thereof to the southerly
boundary of Lot 7771; thence easterly along the southerly boundary of said Lot
7771 to the southeast corner thereof; thence easterly and northerly along the
southerly and easterly boundaries of Lots 9144, 9146 and 6902 to the northeast
corner of said Lot 6902; thence westerly along the northerly boundary of said
Lot 6902 to the southeast corner of Lot 8097; thence northerly along the
easterly boundaries of said Lots 8097, 6900 and 8095 to the northeast corner of
said Lot 8095; thence westerly along the northerly boundary of said Lot 8095 to
the southwest corner of Lot 11910; thence northerly and easterly along the
westerly and northerly boundaries of said Lot 11910 to the northeast corner
thereof; thence northerly along the easterly boundaries of Lots 10588, 7670 and
7126 to the northeast corner of said Lot 7126; thence easterly and northerly
along the southerly and easterly boundaries of Lot 9159 to the northeast corner
thereof; thence northerly along the easterly boundary of Lot 10389 to the
northeast corner
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<PAGE> 72
thereof; thence easterly and northerly along the southerly and easterly
boundaries of Lot 9158 to the northeast corner thereof; thence northerly along
the easterly boundary of Lot 8164 to the northeast corner thereof; thence
easterly and northerly along the southerly and easterly boundaries of Lot 8165
to the southerly boundary of Lot 18 of Lots 8165 and 8799, Plan 1043, Nelson
Land Title Office; thence easterly and northerly along the southerly and
easterly boundaries of said Lot 18 to the southeast corner of Lot 17; thence
northerly and westerly along the easterly and northerly boundaries of said Lot
17 to the easterly boundary of aforesaid Lot 8165; thence northerly and westerly
along the easterly and northerly boundaries of said Lot 8165 to the southeast
corner of Lot 8163; thence northerly along the easterly boundary of said Lot
8163 to the southwest corner of Lot 10029; thence easterly and northerly along
the southerly and easterly boundaries of Lots 10029, 8808 and 8809 to the
natural boundary of aforesaid Lower Arrow Lake on the easterly shore thereof;
thence in a general northeasterly direction along the natural boundary of said
Lower Arrow Lake on the easterly shore thereof to the southerly boundary of Lot
7631; thence easterly along the southerly boundary of said Lot 7631 765 metres;
thence northeasterly in a straight line to the most northerly northeast corner
of said Lot 7631; thence westerly along the northerly boundary of said Lot 7631
to the natural boundary of aforesaid Lower Arrow Lake on the easterly shore
thereof; thence in a general northerly direction along the natural boundary of
said Lower Arrow Lake on the easterly shore thereof to the southerly boundary of
Lot 8688; thence easterly, northerly and westerly along the southerly, easterly
and northerly boundaries of said Lot 8688 to the natural boundary of aforesaid
Lower Arrow Lake on the easterly shore thereof; thence in a general northerly
direction along the natural boundary of said Lower Arrow Lake on the easterly
shore thereof to the northwest corner of said Lot 7630, being the point of
commencement.
Excluding thereout all that foreshore and land covered by water within the above
described area.
AREA C
Commencing at the northeast corner of Lot 9154, Kootenay Land District; thence
westerly and southerly along the northerly and westerly boundaries of Lots 9154
and 9068 to the natural boundary of Lower Arrow Lake on the easterly shore
thereof; thence in a general northerly direction along the natural boundary of
said Lower Arrow Lake on the easterly shore thereof to the easterly boundary of
Lot 9429;
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<PAGE> 73
thence northerly, westerly and southerly along the easterly, northerly and
westerly boundaries of said Lot 9429 to the natural boundary of said Lower Arrow
Lake on the easterly shore thereof; thence in a general northerly direction
along the natural boundary of said Lower Arrow Lake on the easterly shore
thereof to the easterly boundary of Lot 8070; thence northerly, westerly and
southerly along the easterly, northerly and westerly boundaries of said Lot 8070
to the natural boundary of said Lower Arrow Lake on the easterly shore thereof;
thence in a general northerly direction along the natural boundary of said Lower
Arrow Lake on the easterly shore thereof to the easterly boundary of Lot 400;
thence northerly and westerly along the easterly and northerly boundaries of
said Lot 400 to the southeasterly boundary of the watershed of Deer Creek;
thence in a general northeasterly direction along the southeasterly boundary of
the watershed of said Deer Creek to the northerly boundary of the watershed of
Cayuse Creek; thence in a general easterly and southerly direction along the
northerly and easterly boundaries of the watershed of said Cayuse Creek to the
northeasterly boundary of the watershed of Tulip Creek; thence in a general
southeasterly and southerly direction along the northeasterly and easterly
boundaries of the watershed of said Tulip Creek to a point due north of the
northeast corner of aforesaid Lot 9154; thence south to the northeast corner of
said Lot 9154, being the point of commencement.
Excluding thereout all that foreshore and land covered by water within the above
described area, and those areas of land described below, which are currently
active amendments and instruments within Tree Farm Licence 23, Block 4.
<TABLE>
<CAPTION>
DOCUMENT DATE PARTICULARS
- -------- ---- -----------
<S> <C> <C>
Am #12 58-04-24 Removes lookout site
Am #20 59-12-23 Removes 3 cabin sites
Am #26 60-10-07 Removes transmission line R/W
Am #59 64-12-23 Removes Lot 2 of Sub Lot 12, Kootenay Land District,
Plan 5818, Nelson Land Title Office
Am #97 70-08-24 Removes navigational aids
</TABLE>
Page 20
<PAGE> 1
EXHIBIT 10.8
PROVINCE OF BRITISH COLUMBIA
FOREST LICENCE
A18969
THIS LICENCE, dated December 1, 1993
BETWEEN:
THE REGIONAL MANAGER, on behalf of
HER MAJESTY THE QUEEN IN RIGHT OF
THE PROVINCE OF BRITISH COLUMBIA
518 Lake Street
Nelson, British Columbia
V1L 4C6
(the "Licensor")
AND:
Pope & Talbot Ltd.
Box 39
Grand Forks, British Columbia
V0H 1H0
(the "Licensee")
WHEREAS under section 13 of the Forest Act, this Licence replaces
Forest Licence No. A18969 dated December 1, 1988, the parties agree as follows:
<PAGE> 2
1.00 GRANT OF RIGHTS AND TERM
1.01 Subject to this Licence and the Forest Act, the Licensee has
the right to harvest an allowable annual cut of 434 549 m3 of
Crown timber each year during the term of this Licence from
areas of Crown land, within the Boundary Timber Supply Area,
which are specified in cutting permits and road permits.
1.02 The term of this Licence is fifteen (15) years, beginning
December 1, 1993.
2.00 REVISIONS TO ALLOWABLE ANNUAL CUT
2.01 The allowable annual cut is deemed to be increased or reduced,
as the case may be, according to increases and reductions made
to it under the Forest Act.
3.00 MANAGEMENT PLANS
3.01 A management plan or management and working plan approved
under the forest licence replaced by this Licence and still in
effect on the date immediately preceding the date on which
that forest licence expires is deemed to be the management
plan in effect under this Licence
(a) for the 12-month period beginning on the date
specified in paragraph 1.02, or
(b) until December 31, 1994,
whichever is later.
3.02 If there is no approved management plan or management and
working plan in effect under the forest licence replaced by
this Licence on the date immediately preceding the date on
which that forest licence expires, then the Licensee, not
later than six (6) months after the date specified in
paragraph 1.02, will submit for the Licensor's approval a
proposed management plan for the planning area.
3.03 The Licensee, not less than six (6) months prior to the
expiration of the management plan then in effect, will submit
for the Licensor's approval a proposed management plan to
replace the management plan then in effect.
3.04 The Licensor, in a notice given to the Licensee, may require
that a management plan be amended if
(a) timber in the Timber Supply Area is damaged by fire,
flood, wind, insects, disease or other causes,
(b) the Licensor determines that operations conducted in
accordance with the management plan are causing or
could cause serious damage to the natural
environment, including soils, fisheries, wildlife,
water, range, and recreation resources,
<PAGE> 3
(c) a land and resource management plan is approved,
amended or replaced,
(d) a local resource use plan is approved, amended or
replaced, or
(e) the Chief Forester determines a new allowable annual
cut for the Timber Supply Area.
and the Licensor considers that the management plan is thereby
rendered inadequate.
3.05 A notice referred to in paragraph 3.04 must specify
(a) why the Licensor considers the management plan has
been rendered inadequate,
(b) the extent to which the management plan is
inadequate, and
(c) the changes required by the Licensor.
3.06 Where the Licensor gives a notice referred to in paragraph
3.04 to the Licensee, the Licensee will, within three (3)
months after the date on which the notice is given, submit for
the Licensor's approval a proposed amendment to the management
plan, which incorporates the changes referred to in
subparagraph 3.05(c), to have effect during the unexpired term
of the management plan.
3.07 If the Licensee fails to comply with the requirements of
paragraph 3.06, the management plan then in effect will expire
three (3) months after the date on which the notice referred
to in paragraph 3.04 is given to the Licensee, in which case
the Licensee will submit for the Licensor's approval a
proposed management plan to replace the management plan which
expires under this paragraph.
3.08 A proposed management plan submitted by the Licensee under
paragraph 3.02, 3.03, or 3.07 must be signed and sealed by a
professional forester and signed by the Licensee or the
Licensee's authorized signatory, and must
(a) be prepared according to the guidelines set or
approved by the Ministry of Forests, which are in
effect four (4) months prior to the date on which the
proposed management plan is required to be submitted,
(b) be consistent with this Licence, and any land and
resource management plan and local resource use plan
in effect at the time the proposed management plan is
submitted,
(c) incorporate the commitments which
(i) were made by the Licensee
(A) in the application on which the
award of the forest licence
replaced by this Licence or any
predecessor to that forest licence
was based,
3.
<PAGE> 4
(B) in accepting the offer of the
forest licence replaced by this
Licence or any predecessor to that
forest licence, or
(C) as a result of a request for the
Minister's consent for the purposes
of Section 50 of the Forest Act,
and
(ii) remain in effect at the time the proposed
management plan is submitted,
unless the Minister exempts the Licensee in whole or
in part from the requirements of this subparagraph,
(d) based on the best information readily available to
the Licensee, describe the timber and non-timber
resources within the planning area,
(e) specify measures to be taken, specifications to be
followed, and standards to be met by the Licensee in
the planning area to provide for
(i) integrated resource management,
(ii) forest fire prevention and suppression,
prescribed fire, and fuel management,
(iii) disease and pest management,
(iv) road planning, reconnaissance, survey,
design and construction, road maintenance
and road deactivation,
(v) harvesting methods and utilization standards
appropriate to the types of timber and
terrain within the planning area,
(vi) basic silviculture and, if applicable,
incremental silviculture, and
(vii) any other forest management assumptions or
constraints inherent in a land and resource
management plan or local resource use plan
in effect at the time the proposed
management plan is submitted,
which meet or, if the Licensee chooses, exceed the
applicable measures, standards or specifications
which have been set or approved by the Ministry of
Forests or are contained in a land and resource
management plan or local resource use plan in effect
at the time the proposed management plan is
submitted,
(f) specify measures to be taken by the Licensee to
(i) gather information regarding, and where the
Licensor requires, consult with
(A) other licensees, and
(B) trappers, guide outfitters, range
tenure holders, and other licensed
resource users,
who may be operating in the planning area,
and
(ii) coordinate the Licensee's operations with
(A) the small business forest
enterprise program,
(B) other licensees, and
(C) trappers, guide outfitters, range
tenure holders, and other licensed
resource users
4.
<PAGE> 5
operating in the planning area,
(g) specify measures to be taken by the Licensee to
consult with aboriginal people regarding sustenance
activities they may be carrying out in the planning
area,
(h) have been referred to resource agencies in accordance
with Part 5,
(i) have been made available for public viewing in
accordance with Part 5, and
(j) include a summary of
(i) all input received under Part 5 from
resource agencies and the public not later
than two (2) weeks prior to submission of
the proposed management plan to the
Licensor, and
(ii) any modifications made to the proposed
management plan, prior to its submission to
the Licensor, in response to this input.
3.09 Subject to paragraph 3.10, the Licensor will approve a
proposed management plan submitted under paragraph 3.02, 3.03,
or 3.07, subject to such conditions as the Licensor considers
necessary or appropriate, if
(a) the Licensor is satisfied that the proposed
management plan meets the requirements of paragraph
3.08,
(b) the proposed management plan specifies measures
referred to in subparagraphs 3.08 (f) and (g) which
are satisfactory to the Licensor, and
(c) the modifications, if any, made to address the input
referred to in subparagraph 3.08 (j) are satisfactory
to the Licensor.
3.10 Before approving a proposed management plan under paragraph
3.09, the Licensor may consult
(a) resource agencies,
(b) aboriginal people who may be carrying out sustenance
activities in the planning area,
(c) trappers, guide outfitters, range tenure holders, and
other licensed resource users who may be operating in
the planning area,
(d) other licensees who may be operating in the planning
area,
(e) any local government which may be interested in, or
affected by, operations under this Licence, and
(f) any member of the public who provided input regarding
the proposed management plan,
and may consider any input received as a result of
consultation under this paragraph in approving a proposed
management plan.
3.11 Where the Licensor does not approve a proposed management
plan,
(a) the Licensor will specify in a notice given to the
Licensee why the Licensor has not approved the
management plan, and
(b) the Licensee will submit a new or revised proposed
management plan, as required by the Licensor.
5.
<PAGE> 6
3.12 A management plan is deemed to be part of this Licence.
3.13 Subject to paragraphs 3.01, 3.07, 3.14, and 3.15, a management
plan expires five years after the date on which it takes
effect.
3.14 If the Licensor does not give the notice referred to in
subparagraph 3.11(a) to the Licensee within three (3) months
of the date on which the proposed management plan was
submitted, the term of the management plan then in effect is
deemed to be extended to a date six (6) months after the date
on which the notice referred to in subparagraph 3.11(a) is
given to the Licensee.
3.15 At the request of the Licensee, the Licensor may extend the
term of a management plan.
4.00 DEVELOPMENT PLANS
4.01 A five-year development plan approved under the forest licence
replaced by this Licence and still in effect on the date
immediately preceding the date on which that forest licence
expires is deemed to be the development plan in effect under
this Licence until
(a) one year after the date on which the five-year
development plan took effect under the forest licence
replaced by this Licence, or
(b) June 1, 1994,
whichever is later.
4.02 If there was no approved five-year development plan in effect
under the forest licence replaced by this Licence on the date
immediately preceding the date on which that forest licence
expires, then the Licensee, not later than 6 months after the
date specified in paragraph 1.02, will submit for the District
Manager's approval a proposed development plan for the
planning area for a period of
(a) five years, or
(b) more than five years, if the Licensee so chooses,
beginning on the date specified in paragraph 1.02.
4.03 The Licensee, not less than three (3) months prior to the
expiration of the development plan then in effect, will submit
for the District Manager's approval a proposed development
plan for the planning area for a succeeding period of
(a) five (5) years, or
(b) more than five (5) years, if the Licensee so chooses.
4.04 If the Licensor gives a notice referred to in paragraph 3.04
to the Licensee, the Licensor may at the same time give a
notice to the Licensee requiring
6.
<PAGE> 7
the Licensee to amend the development plan to ensure
consistency with the changes referred to in subparagraph
3.05(c)
4.05 Where the Licensor gives a notice referred to in paragraph
4.04 to the Licensee, the Licensee will, within three (3)
months after the date on which the notice is given, submit for
the District Manager's approval a proposed amendment to the
development plan to have effect during the unexpired term of
the development plan.
4.06 If the Licensee fails to comply with the requirements of
paragraph 4.05, the development plan then in effect will
expire three (3) months after the date on which the notice
referred to in paragraph 4.04 is given to the Licensee, in
which case the Licensee will submit for the District Manager's
approval a proposed development plan to replace the
development plan which expires under this paragraph.
4.07 A proposed development plan submitted under paragraph 4.02,
4.03, or 4.06 must be signed and sealed by a professional
forester and signed by the Licensee or the Licensee's
authorized signatory, and must
(a) be prepared according to the guidelines set or
approved by the Ministry of Forests, which are in
effect four (4) months prior to the date on which the
proposed development plan is required to be
submitted,
(b) be consistent with this Licence and the management
plan in effect at the time the proposed development
plan is submitted,
(c) set out a proposed harvesting sequence of cut blocks
over a period of not less than five (5) years,
categorizing these cut blocks as follows:
(i) cut blocks covered by existing cutting
permits,
(ii) cut blocks covered by outstanding cutting
permit applications submitted to the
District Manager,
(iii) cut blocks for which the Licensee intends to
submit cutting permit applications during
the term of the proposed development plan,
and
(iv) cut blocks for which the Licensee does not
intend to submit cutting permit applications
during the term of the proposed development
plan,
(d) include the following information regarding the cut
blocks referred to in subparagraph (c):
(i) season of operation, logging system and
reforestation method, and
(ii) the status of adjacent logged areas,
(e) include one or more detailed maps of the following
information:
(i) based on the best information readily
available to the Licensee,
(A) the forest cover,
7.
<PAGE> 8
(B) recreation areas, community
watersheds, fish spawning, fish
rearing and fish migration areas,
critical wildlife habitats, and any
other areas subject to integrated
resource management constraints,
and
(C) private properties, foreshore
leases, and public utilities within
the planning area,
(ii) based on information gathered by the
Licensee for the area covered by the
proposed development plan,
(A) operability and contour lines,
(B) sensitive soils, unstable slopes,
and areas subject to visual quality
constraints,
(C) boundaries of
(I) cut blocks referred to in
subparagraph (c), and
(II) existing cutting permits,
(D) existing roads including, where
applicable, linkage to the public
road system, timber processing
facilities and log dumps,
(E) proposed roads, including bridges
and major culverts,
(F) roads under construction,
(G) roads which have been deactivated
to a temporary or semi-permanent
level,
(H) fire breaks and fuel management
problem areas, and
(I) log handling and storage areas,
including existing or proposed log
dump sites,
(iii) based on consultation carried out in
accordance with the measures specified in
the management plan, the location of areas
where aboriginal people have indicated they
may be carrying out sustenance activities,
(iv) based on information gathered, or
consultation carried out, in accordance with
the measures specified in the management
plan, the location of areas where
(A) other licensees, and
(B) trappers, guide outfitters, range
tenure holders, and other licensed
resource users
may be operating in the planning area, and
(v) any other information required under the
guidelines referred to in subparagraph (a),
(f) include a Road Maintenance Plan complying with the
requirements of paragraph 10.04 and a Road
Deactivation Plan complying with the requirements of
paragraph 10.05,
(g) have been referred to resource agencies in accordance
with Part 5,
(h) have been made available for public viewing in
accordance with Part 5, and
(i) include a summary of
(i) all input received under Part 5 from
resource agencies and the public not later
than two (2) weeks prior to the date the
8.
<PAGE> 9
development plan is required to be submitted
to the District Manager, and
(ii) any modifications made to the proposed
development plan, prior to its submission to
the District Manager, in response to this
input.
4.08 Subject to paragraphs 4.09 and 4.10, the District Manager will
approve a proposed development plan submitted under paragraph
4.02, 4.03, or 4.06, subject to such conditions as the
District Manager considers necessary or appropriate, if
(a) the District Manager is satisfied that the proposed
development plan meets the requirements of paragraph
4.07,
(b) the proposed harvesting sequence is satisfactory to
the District Manager,
(c) the District Manager is prepared to accept cutting
permit applications for the cut blocks referred to in
clause 4.07(c)(iii), and
(d) the modifications, if any, made to address the input
referred to in subparagraph 4.07 (i) are satisfactory
to the District Manager.
4.09 The District Manager will not approve a proposed development
plan unless there is a management plan in effect.
4.10 Before approving a proposed development plan under paragraph
4.08, the District Manager may consult
(a) resource agencies,
(b) aboriginal people who may be carrying out sustenance
activities in the planning area,
(c) trappers, guide outfitters, range tenure holders, and
other licensed resource users who may be operating in
the planning area,
(d) other licensees who may be operating in the planning
area,
(e) any local government which may be interested in, or
affected by, operations under this Licence, and
(f) any member of the public who provided input regarding
the proposed development plan, and
may consider any input received as a result of consultation
under this paragraph in approving a proposed development plan.
4.11 Where the District Manager does not approve a proposed
development plan,
(a) the District Manager will specify in a notice given
to the Licensee why the District Manager has not
approved the development plan, and
(b) the Licensee will submit a new or revised proposed
development plan, as required by the District
Manager.
4.12 A development plan is deemed to be part of this Licence.
9.
<PAGE> 10
4.13 Subject to paragraphs 4.01, 4.06, 4.14, and 4.15, a
development plan expires [one/two] year[s] after the date on
which it takes effect.
4.14 If the District Manager does not give the notice referred to
in subparagraph 4.11(a) to the Licensee within 45 days of the
date on which the proposed development plan was submitted,
then the term of the development plan then in effect is deemed
to be extended to a date three (3) months after the date on
which the notice referred to in subparagraph 4.11(a) is given
to the Licensee.
4.15 At the request of the Licensee, the District Manager may
extend the term of the development plan for a period not
greater than one (1) year.
4.16 Before extending the term of a development plan under
paragraph 4.15, the District Manager may require the Licensee
to amend the development plan to the extent required to ensure
compliance with the management plan in effect at the time the
Licensee requests an extension to the term of the development
plan.
5.00 INPUT FROM RESOURCE AGENCIES AND THE PUBLIC
5.01 Before submitting a proposed management plan under
paragraph 3.02, 3.03, or 3.07, or a proposed development plan
under paragraph 4.02, 4.03, or 4.06, the Licensee will
(a) at least three (3) months before the proposed
management plan or proposed development plan is
submitted to the Licensor or District Manager, refer
the proposed management plan or proposed development
plan to those resource agencies specified in a notice
referred to in paragraph 5.04,
(b) make the proposed management plan or proposed
development plan available for public viewing
(i) subject to paragraph 5.03, for at least
5 days with the last day being at least
30 days before the proposed management plan
or proposed development plan is submitted to
the Licensor or District Manager,
(ii) at locations within communities and at times
which
(A) are convenient to the public, and
(B) have been approved by the Licensor
or District Manager, as the case
may be, and
(c) in accordance with paragraph 5.02, advertise where
and when the proposed management plan or proposed
development plan will be available for public
viewing.
5.02 Subject to paragraph 5.03, the Licensee will advertise for the
purposes of subparagraph 5.01(c), at least twice within a
period of two (2) consecutive weeks in at least one newspaper
circulating in the Timber Supply Area,
10.
<PAGE> 11
with the last advertisement appearing at least two (2) weeks
prior to the first date on which the proposed management plan
or proposed development plan will be available for public
viewing.
5.03 The Licensor or the District Manager, in a notice given to the
Licensee not less than four (4) weeks prior to the first date
on which the Licensee must advertise under paragraph 5.02, may
specify
(a) a number of days greater or less than the five (5)
days referred to in subparagraph 5.01(b), and
(b) a period greater or less than the two (2) weeks
referred to in paragraph 5.02.
5.04 The Licensor or District Manager may from time to time, in a
notice given to the Licensee, specify resource agencies for
the purposes of paragraph 5.01.
6.00 ANNUAL REPORT
6.01 The District Manager, in a notice given to the Licensee on or
before April 1, may require the Licensee to submit an annual
report containing such information as the District Manager
requires regarding
(a) the Licensee's performance, over the previous
calendar year, in relation to its obligations under
this Licence, and
(b) the processing or other use or disposition of the
timber harvested under this Licence,
where the information is not or will not be included in any
other reports which the Licensee must submit under this
Licence or the Forest Act.
6.02 Upon receipt of a notice referred to in paragraph 6.01, the
Licensee, on or before the date specified in the notice, will
submit an annual report to the District Manager containing the
required information.
6.03 Subject to paragraph 6.04, the District Manager may include
the information contained in an annual report submitted under
paragraph 6.02 in any reports prepared by the Ministry of
Forests for public review.
6.04 Subject to the Freedom Of Information And Privacy Act, the
District Manager will not disclose information provided in
confidence by the Licensee in an annual report submitted under
paragraph 6.02.
6.05 The Licensee may make a copy of an annual report submitted
under paragraph 6.02 available for public review, and may
display a copy at any public viewing under Part 5.
11.
<PAGE> 12
7.00 CUTTING PERMITS
7.01 All cutting permits in effect under the forest licence that is
replaced by this Licence continue in effect under this Licence
for the duration of their respective terms.
7.02 Subject to paragraph 7.04, the Licensee may submit cutting
permit applications for cut blocks referred to in clause
4.07(c)(iii), which are categorized as such in the
development plan.
7.03 Subject to paragraphs 7.05, 7.06, and 7.07, upon receipt of
a cutting permit application referred to in paragraph 7.02,
the District Manager will issue a cutting permit to the
Licensee if the District Manager is satisfied that the cutting
permit application meets the requirements of paragraph 7.04.
7.04 A cutting permit application referred to in paragraph 7.02
must be signed and sealed by a professional forester and
signed by the Licensee or the Licensee's authorized signatory
and must
(a) contain such information as is required by the
District Manager,
(b) subject to paragraph 7.09, be accompanied by a
proposed logging plan, and
(c) be consistent with the management plan and
development plan, and the pre-harvest silviculture
prescription approved for the area on which the
timber to be harvested is located.
7.05 The District Manager will not issue a cutting permit under
paragraph 7.03, unless:
(a) subject to paragraph 7.09, the District Manager has
approved the logging plan accompanying the cutting
permit application,
(b) the District Manager has approved a pre-harvest
silviculture prescription for the area on which
timber to be harvested is located, and
(c) there is a management plan and development plan in
effect.
7.06 The District Manager may consult
(a) resource agencies,
(b) aboriginal people who may be carrying out sustenance
activities in the planning area,
(c) trappers, guide outfitters, range tenure holders, and
other licensed resource users who may be operating in
the planning area, and
(d) other licensees who may be operating in the planning
area,
prior to issuing a cutting permit.
7.07 The District Manager may delay issuing a cutting permit if he
or she is satisfied that
12.
<PAGE> 13
(a) the Licensee will be able to harvest the allowable
annual cut under existing cutting permits and road
permits, and
(b) the delay will not compromise the development plan.
7.08 Where the District Manager
(a) is not satisfied that a cutting permit application
meets the requirement of paragraph 7.04,
(b) is prohibited under paragraph 7.05, from issuing a
cutting permit,
(c) is carrying out consultations under paragraph 7.06,
or
(d) is delaying issuing the cutting permit under
paragraph 7.07, the District Manager will notify the
Licensee within 60 days of the date on which the
cutting permit application was submitted.
7.09 The District Manager may exempt the Licensee from the
requirement under paragraph 7.04(b), in which case the
District Manager is exempted from the prohibition under
subparagraph 7.05(a); however, where a cutting permit is
issued prior to the approval of the logging plan, the Licensee
will not commence operations under the cutting permit until
a logging plan has been approved.
7.10 If the District Manager requests the Licensee to remove
windthrown, dead, damaged or diseased timber within the Timber
Supply Area, and the Licensee agrees to do so, the District
Manager may
(a) amend an existing cutting permit, or
(b) issue a cutting permit,
to authorize the Licensee to harvest the timber.
7.11 A cutting permit must
(a) subject to this Licence and the Forest Act, and in
accordance with the provisions of the cutting permit,
authorize Crown timber to be harvested from proximate
cut blocks located within an area of Crown land in
the Timber Supply Area,
(b) be consistent with this Licence, the Forest Act, the
pre-harvest silviculture prescription approved for
the area on which the timber is to be harvested, and,
subject to paragraphs 7.10 and 7.15, the management
plan and development plan in effect on the date the
cutting permit is issued,
(c) subject to paragraph 7.14, be for a term not
exceeding three (3) years,
(d) prescribe the locations of roads to be built or
deactivated on the area covered by the cutting
permit, and the specifications and standards to be
followed in building or deactivating these roads,
(e) prescribe utilization standards and forestry
practices to be followed in timber harvesting
operations carried on under the cutting permit,
(f) provide for the payment of stumpage on timber
harvested under the cutting permit,
13.
<PAGE> 14
(g) set out procedures for assessing the volumes of
timber wasted or damaged by the Licensee, and provide
for a charge based on applicable stumpage rates to be
paid by the Licensee,
(h) specify a timber mark to be used in conjunction with
the timber harvesting operations carried on under the
cutting permit,
(i) specify whether the cutting permit is scale based or
cruise based, and
(j) subject to subparagraph (b), include such other
provisions as the District Manager considers
necessary or appropriate.
7.12 Subject to paragraphs 7.13, 7.14 and 7.15, the District
Manager may amend a cutting permit only with the consent of
the Licensee.
7.13 A cutting permit that does not comply with the requirements of
paragraph 7.11 is not void; however,
(a) on the request of the Licensee, or
(b) on 4 weeks' notice to the Licensee,
the District Manager may amend the cutting permit to the
extent required to ensure compliance with the requirements of
paragraph 7.11.
7.14 The District Manager may, in a notice given to the Licensee,
extend the term of a cutting permit.
7.15 Where under paragraph 7.14 the District Manager extends the
term of a cutting permit, the District Manager may, in a
notice given to the Licensee, amend the cutting permit to the
extent required to ensure compliance with the management plan
and development plan in effect on the date the term of the
cutting permit is extended.
7.16 Unless exempted in writing by the District Manager or a person
authorized by the District Manager, the Licensee will define
on the ground the boundaries of the areas authorized for
harvesting under a cutting permit.
7.17 Timber cut under this Licence or a road permit must be
(a) marked according to the Forest Act, and
(b) unless the timber is cut under a cruise based cutting
permit, scaled according to the Forest Act and any
procedures set or approved by the Ministry of
Forests.
7.18 A cutting permit is deemed to be part of this Licence.
7.19 An approved logging plan referred to in paragraph 7.05 or 7.09
is deemed to be part of this Licence and the applicable
cutting permit.
14.
<PAGE> 15
7.20 The Licensee will not harvest any timber under a cutting
permit, unless a pre-harvest silviculture prescription has
been approved for the area on which the timber is located.
7.21 A cutting permit or approved logging plan that is inconsistent
with the pre-harvest silviculture prescription approved for
the area covered by the cutting permit is not void, but to the
extent of the inconsistency the pre- harvest silviculture
prescription will prevail.
8.00 CUT CONTROL
8.01 The allowable annual cut must be harvested in accordance with
the cut control provisions of the Forest Act.
8.02 The five-year cut control period for this Licence commences
January 1, 1992.
9.00 FINANCIAL AND DEPOSITS
9.01 Where any money is payable by the Licensee under the Forest
Act in respect of this Licence or a road permit, the money
payable under the Forest Act is also deemed to be money
payable under this Licence.
9.02 In addition to any money payable by the Licensee under
paragraph 9.01, the Licensee will pay to the Crown,
immediately upon receipt of a notice issued on behalf of the
Crown,
(a) stumpage at rates determined, redetermined and varied
under the Forest Act in respect of timber harvested
under a cutting permit or a road permit,
(b) a bonus bid in the amount of $Nil/m3 in respect of
timber harvested under a cutting permit, and
(c) any charges in respect of an assessment referred to
in subparagraph 7.11(g).
9.03 During the term of this Licence, the Licensee will maintain on
deposit with the Crown an amount prescribed under the Forest
Act, in cash or in negotiable securities acceptable to the
Minister, as security for the Licensee's performance of its
obligations
(a) under this Licence or a road permit, or road permit,
and
(b) under the Forest Act in respect of this Licence or a
road permit, and
where the Licensor gives the Licensee a notice that an amount
has been taken under this Part from the deposit the Licensee,
within four (4) weeks of the date on which the notice is
given, will pay to the Crown, in cash or negotiable securities
acceptable to the Minister, an amount sufficient to replenish
the deposit.
15.
<PAGE> 16
9.04 If the Licensee fails
(a) to pay money that the Licensee is required to pay to
the Crown under this Licence or a road permit, or
under the Forest Act in respect of this Licence or a
road permit, or
(b) to otherwise perform its obligations under this
Licence or a road permit, or under the Forest Act in
respect of this Licence or a road permit,
then the Licensor or District Manager may, after at least four
(4) weeks notice to the Licensee, take from the deposit
(c) an amount equal to the money which the Licensee
failed to pay,
(d) an amount sufficient to cover all costs reasonably
incurred by the Licensor or District Manager in
remedying the Licensee's failure to perform its
obligations, or
(e) an amount equal to the Licensor's or District
Manager's estimate of the costs which the Licensor or
District Manager could reasonably expect to incur in
remedying the Licensee's failure to perform its
obligations,
and for that purpose a security included in the deposit may be
sold.
9.05 A notice referred to in paragraph 9.04, must specify:
(a) the obligation which the Licensee has failed to
perform, and
(b) amount of money the Licensor or District Manager
intends to take from the deposit.
9.06 Subject to paragraphs 9.08, 9.09, and 9.10, where
(a) the Licensor or District Manager, under
paragraph 9.04, takes from the deposit an amount
equal to the Licensor's or District Manager's
estimate of the costs which the Licensor or District
Manager could reasonably expect to incur in remedying
the Licensee's failure to perform its obligations,
and
(b) the costs reasonably incurred by the Licensor or
District Manager in remedying the Licensee's failure
to perform its obligations are less than the amount
taken from the deposit,
the Licensor or District Manager, as the case may be, will as
soon as practicable return to the Licensee an amount equal to
the difference between the amount taken from the deposit and
the costs incurred by the Licensor or District Manager.
9.07 Where
(a) the Licensor or District Manager, under
paragraph 9.04, takes from the deposit an amount
equal to the Licensor's or District Manager's
estimate of the costs which the Licensor or District
Manager could reasonably expect to incur in remedying
the Licensee's failure to perform its obligations,
and
16.
<PAGE> 17
(b) the costs reasonably incurred by the Licensor or
District Manager in remedying the Licensee's failure
to perform its obligations are greater than the
amount taken from the deposit,
the Licensor or District Manager may take from the deposit an
additional amount equal to the difference between the costs
incurred by the Licensor or District Manager and the amount
originally taken from the deposit, and for that purpose a
security included in the deposit may be sold.
9.08 Where the Licensor or District Manager, under paragraph 9.04,
takes from the deposit an amount equal to the Licensor or
District Manager's estimate of the costs which the Licensor or
District Manager could reasonably expect to incur in remedying
the Licensee's failure to perform its obligations, the
Licensor or District Manager, as the case may be, is under no
obligation to remedy the Licensee's failure.
9.09 Where
(a) the Licensor or District Manager, under paragraph
9.04, takes from the deposit an amount equal to the
Licensor's or District Manager's estimate of the
costs which the Licensor or District Manager could
reasonably expect to incur in remedying the
Licensee's failure to perform its obligations,
(b) Licensor or District Manager does not remedy the
Licensee's failure to perform its obligations, and
(c) the Licensor or District Manager, as the case may be,
gives a notice to the Licensee indicating that the
Crown will not be remedying the Licensee's failure to
perform its obligations,
then, subject to paragraph 9.10, the Licensor or the District
Manager, as the case may be, may retain the amount taken from
the deposit under paragraph 9.04.
9.10 If, after receiving a notice referred to in paragraph 9.09,
the Licensee
(a) remedies the failure to perform its obligations, and
(b) gives a notice to that effect to the Licensor or
District Manager, as the case may be, within three
(3) months of the date on which the notice referred
to in paragraph 9.09 , is given to the Licensee, or
within such longer period as the Licensor may
approve,
then the Licensor or District Manager, as the case may be,
will return to the Licensee an amount equal to the difference
between the amount taken from the deposit and any costs
reasonably incurred by the Licensor or District Manager in
respect of the Licensee's failure to perform its obligations.
9.11 If the Licensor or the District Manager considers that
(a) any operation that is to be carried out under this
Licence or a road permit is likely to cause damage to
persons or property, and
17.
<PAGE> 18
(b) the deposit is insufficient to indemnify the Crown
for any liability which the Crown might incur as a
consequence of the operation,
then Licensor or District Manager may require the Licensee to
maintain with the Crown a special deposit, in cash or in
negotiable securities acceptable to the Minister, in the
amount determined by the Licensor or the District Manager.
9.12 If the Licensee fails to
(a) remedy any damage resulting from an operation
referred to in paragraph 9.11, or
(b) compensate any person who suffers a loss as a result
of an operation referred to in paragraph 9.11,
the Licensor or the District Manager may, after at least four
(4) weeks' notice to the Licensee, take an amount from the
special deposit sufficient to indemnify the Crown for any
liability which is or may be incurred by the Crown as a
consequence of a failure referred to in subparagraph (a) or
(b).
9.13 A notice referred to in paragraph 9.12 must specify:
(a) the nature of the Licensee's failure, and
(b) the amount of money the Licensor or District Manager
intends to take from the special deposit.
9.14 Subject to the Forest Act, the Licensor will refund to the
Licensee
(a) the deposit, less deductions made under paragraphs
9.04 and 9.07, when
(i) this Licence terminates or expires and is
not replaced under section 13 of the Forest
Act, and
(ii) the Licensor is satisfied that the Licensee
has fulfilled its obligations under this
Licence, and
(b) a special deposit, less deductions made under
paragraph 9.12, when the Licensor or District
Manager, acting reasonably, is satisfied that the
Crown is no longer at risk of being held liable as a
consequence of an operation referred to in paragraph
9.11.
10.00 ROADS
10.01 Subject to the provisions of a cutting permit or road permit,
the Licensee will ensure that the specifications, standards
and locations of all roads the Licensee builds on Crown land
under a cutting permit or road permit are consistent with the
management plan and development plan in effect at the time the
road is built.
10.02 Upon the expiry of a road permit, all improvements, including
roads and bridges, constructed by the Licensee under the
authority of the road permit will vest in the Crown, without
right of compensation to the Licensee, unless otherwise
specified in the road permit.
18.
<PAGE> 19
10.03 The Licensee will not remove any improvements referred to in
paragraph 10.2, unless authorized to do so by the Licensor.
10.04 The Road Maintenance Plan included in the Development Plan
must
(a) identify those roads shown on the maps referred to in
subparagraph 4.07(e) which the Licensee will maintain
for harvesting, silviculture and forest protection
purposes, and
(b) specify the maintenance operations which the Licensee
will carry out to
(i) protect the structural integrity of the
roads referred to in subparagraph (a) and
the cleared area of the road right-of-way
adjoining these roads,
(ii) keep drainage systems, including culverts
and ditches, functional,
(iii) minimize surface erosion, and
(iv) ensure these roads are safe for forest
harvesting or other industrial purposes.
10.05 The Road Deactivation Plan included in the Development Plan
must
(a) identify those roads shown on the maps referred to in
subparagraph 4.07(e), which the Licensee will
deactivate each year over the next three (3) years,
specifying in each case whether the deactivation will
be temporary, semi-permanent or permanent,
(b) specify the operations required to
(i) stabilize the roads referred to in
subparagraph (a) and the cleared area of the
road right-of-way adjoining these roads, and
(ii) restore or maintain the natural drainage at
each road location,
(c) identify those roads shown on the maps referred to in
subparagraph 4.07(e) which have been deactivated by
the Licensee to a temporary or semi-permanent level
in the past year, and any other roads that have been
permanently deactivated by the Licensee in the past
year, and
(d) specify the type of vehicle which can access the
roads referred to in subparagraph (a) or (c).
11.00 FIRE PROTECTION
11.01 Before April 1 of each year during the term of this Licence,
the Licensee will submit for the District Manager's approval a
fire protection pre-organization plan consistent with this
Licence, and will include a duty roster in the fire protection
pre-organization plan.
11.02 An approved fire protection pre-organization plan is deemed to
be part of this Licence.
19.
<PAGE> 20
11.03 The Licensee's obligations under an approved fire protection
pre-organization plan are in addition to and do not replace
its commitments in the management plan or development plan or
its obligations under section 121 of the Forest Act.
12.00 FORESTRY
12.01 The Licensee will, at its own expense and in accordance with
the Forest Act and pre-harvest silviculture prescriptions
approved by the District Manager, carry out basic silviculture
on the land from which timber is harvested under this Licence,
and the Licensee may enter onto Crown land for this purpose.
12.02 If, under this Licence or the Forest Act, the Licensee is to
develop or maintain a recreation site or trail on Crown land
in the Timber Supply Area, the Licensee may enter onto Crown
land for this purpose.
12.03 If the Licensee posts a sign concerning silviculture or the
development and maintenance of recreation sites or trails, the
sign must acknowledge any contribution made by the Crown in
respect of the silviculture or the development or maintenance
of recreation sites or trails.
12.04 The Licensee will annually review pest management strategies
with the District Manager and, if required by the District
Manager, the Licensee will submit a pest treatment plan for
the District Manager's approval.
12.05 The Licensee's obligations under an approved pest treatment
plan are in addition to and do not replace its commitments in
the management plan or development plan respecting pest
management.
13.00 CONTRACTORS
13.01 The Licensor, in a notice given to the Licensee, may require
that a portion of the volume of timber harvested under this
Licence during any calendar year be harvested by persons under
contract with the Licensee, and, where a notice is given under
this paragraph, it is deemed to be part of this Licence.
13.02 A notice given under the forest licence replaced by this
Licence, requiring a portion of the volume of timber harvested
under that forest licence be harvested by persons under
contract with the Licensee, is deemed to be a notice given
under paragraph 13.01 and a part of this Licence.
13.03 The Licensee will comply with a notice referred to in
paragraph 13.01 or 13.02 unless the Minister relieves the
Licensee in whole or in part from the requirements of this
paragraph.
20.
<PAGE> 21
13.04 Compliance with a notice referred to in paragraph 13.01 or
13.02 will be calculated in accordance with the method
prescribed under the Forest Act.
13.05 If in a calendar year the volume of timber harvested by
persons under contract with the Licensee is less than a volume
required in a notice referred to in paragraph 13.01 or 13.02,
the Licensee will on demand pay to the Crown, an amount of
money equal to
(a) the volume required in the notice minus the volume
harvested during the calendar year by persons under
contract, multiplied by
(b) the weighted average of the stumpage rates, including
bonus bids if applicable, charged in invoices issued
to the Licensee during the calendar year for timber
harvested under this Licence,
unless the Minister relieves the Licensee in whole or in part
from the requirements of this paragraph.
14.00 TIMBER PROCESSING
14.01 The Licensee will process all timber harvested under this
Licence or a road permit, or equivalent volumes, through a
timber processing facility
(a) owned or operated by the Licensee or an affiliate of
the Licensee within the meaning of the Company Act,
and
(b) equipped to carry out debarking and chipping,
unless the Minister exempts the Licensee in whole or in part
from the requirements of this paragraph.
14.02 Where the Licensee
(a) intends to close a timber processing facility or
reduce its production, or
(b) has reason to believe that an affiliate of the
Licensee within the meaning of the Company Act
intends to close a timber processing facility or
reduce its production,
for a period of longer than 90 days the Licensee will give the
Minister at least three (3) months' notice prior to the
closure or reduction.
14.03 Where
(a) the Licensee, or
(b) an affiliate of the Licensee within the meaning of
the Company Act,
closes a timber processing facility or reduces its production
for a period longer than 90 days, the Licensee will on
request of the Minister provide information regarding the
volume of Crown timber processed through the timber
processing facility during the 24-month period immediately
preceding the closure or reduction in production level.
14.04 The Licensee will continue to operate, and where applicable
construct or expand, a timber processing facility in
accordance with
21.
<PAGE> 22
(a) the proposal made in the application on which the
award of the forest licence replaced by this Licence
or any predecessor to that forest licence was based,
or
(b) any modifications to that proposal which have been
approved by an appropriate official of the Ministry
of Forests.
15.00 LIABILITY AND INDEMNITY
15.01 The Licensee will indemnify the Crown against and save it
harmless from all claims, demands, suits, actions, causes of
action, costs, expenses and losses faced, incurred or suffered
by the Crown as a result, directly or indirectly, of any act
or omission of
(a) the Licensee,
(b) an employee of the Licensee,
(c) a contractor of the Licensee who engages in any
activity or carries out any operation, including but
not restricted to harvesting operations, under or
associated with this Licence or a road permit, or
(d) any other person who on behalf of or with the consent
of the Licensee engages in any activity or carries
out any operation, including but not restricted to
harvesting operations, under or associated with this
Licence or a road permit.
15.02 For greater certainty, the Licensee has no obligation to
indemnify the Crown under paragraph 15.01 in respect of any
act or omission of
(a) an employee or agent of the Crown, in the course of
carrying out his or her duties as employee or agent
of the Crown, or
(b) a person, other than the Licensee, to whom the Crown
has granted the right to use or occupy Crown land, in
the course of exercising those rights.
15.03 Money taken under Part 9 from a deposit or special deposit,
money paid by the Licensee under paragraph 13.05 or 15.01, and
reductions in the allowable annual cut made under the Forest
Act are in addition to and not in substitution for any other
remedies available to the Crown in respect of a default of the
Licensee.
16.00 TERMINATION AND SURRENDER
16.01 If this Licence is terminated, expires and is not replaced
under Section 13 of the Forest Act, or if this Licence is
cancelled,
(a) cutting permits will terminate when the expiration,
termination or cancellation occurs, and
(b) title to all
(i) improvements, including roads and bridges,
constructed by the Licensee under the
authority of this Licence, and
22.
<PAGE> 23
(ii) logs and special forest products which were
harvested under the authority of this
Licence and are still located on Crown land,
will vest in the Crown, without right of compensation
to the Licensee.
16.02 The Licensee will not remove any improvements, logs or special
forest products referred to in subparagraph 16.01(b), unless
authorized to do so by the Licensor.
16.03 Subject to paragraph 16.04, if the Licensee commits an act of
bankruptcy, makes a general assignment for the benefit of its
creditors or otherwise acknowledges its insolvency, the
Licensor may cancel this Licence in a notice given to the
Licensee.
16.04 The Licensor will not cancel this Licence under paragraph
16.03 unless and until the Licensor gives a written notice to
every holder of a registered security interest that charges
this Licence, allowing a period of not less than 60 days prior
to cancellation during which the holder of the registered
security interest may exercise the rights and pursue the
remedies available in respect of the registered security
interest.
17.00 NOTICE
17.01 A notice given under this Licence must be in writing.
17.02 Where a notice is to be given under this Licence, it may be
(a) delivered by hand, or
(b) sent by prepaid registered mail addressed to the
address
(i) specified on the first page of this Licence,
or
(ii) to such other address as is specified in a
notice given in accordance with this Part.
17.03 Where a notice is given under this Licence, it is deemed to
have been given
(a) if it is given in accordance with subparagraph
17.02(a), on the date it is delivered,
(b) if it is given in accordance with subparagraph
17.02(b), subject to paragraph 17.04, on the eighth
day after its deposit in a Canada Post Office at any
place in Canada.
17.04 Where, between the time a notice is mailed in accordance with
subparagraph 17.02(b) and the time it is actually received by
a party, there occurs a postal strike, lockout or slowdown
that might reasonably affect delivery of the notice, the
notice is not deemed to be given until the party actually
receives it.
23.
<PAGE> 24
18.00 MISCELLANEOUS
18.01 This Licence is subject to the Forest Act, and is governed by
the laws of British Columbia.
18.02 This Licence will enure to the benefit of, and be binding on,
the parties and their respective heirs, executors, successors
and permitted assigns.
18.03 Where under this Licence the Licensor or the District Manager
has a discretion to impose a condition or require information,
the Licensor or District Manager will exercise this discretion
in a reasonable manner, having regard to the purposes and
functions of the Ministry of Forests set out in Section 4 of
the Ministry Of Forests Act.
19.00 INTERPRETATION
19.01 In this Licence, unless the context otherwise requires:
(a) "aboriginal people" includes registered and
non-registered Indians, Inuits and Metis,
(b) "allowable annual cut" means, subject to paragraph
2.01, the amount of timber the Licensee is
authorized to harvest annually, as specified in
paragraph 1.01,
(c) "close" or "closure" means cessation of production of
the principal forest products normally produced by a
timber processing facility,
(d) "cutting permit" means a cutting permit referred to
in paragraph 7.01, or issued under paragraph 7.03 or
7.10,
(e) "deposit" means the deposit which the Licensee is
required to maintain under paragraph 9.03,
(f) "development plan" means a development plan referred
to in paragraph 4.01, or approved under paragraph
4.08,
(g) "District Manager" means a district manager appointed
under the Ministry Of Forests Act, for a forest
district in which all or part of the Timber Supply
Area is situated,
(h) "Forest Act" means:
(i) the Forest Act, R.S.B.C. 1979, c. 140, as
amended, or the successor to this Act, if it
is repealed, and
(ii) the regulations enacted under this Act or
its successor.
(i) "harvest" includes entry on land for the purpose of
cutting and removing timber, cutting the timber and
removing the timber from the land,
(j) "land and resource management plan" means a plan,
approved by an appropriate official of the government
of British Columbia, which provides direction for
land use, and establishes resource management
objectives and strategies, for all or part of the
Timber Supply Area,
24.
<PAGE> 25
(k) "licensees" means holders of agreements entered into
under the Forest Act,
(l) "local resource use plan" means any plan approved by
the District Manager which provides guidelines for
resource use and development in all or part of the
planning area,
(m) "logging plan" means one or more detailed maps
setting out how the Licensee proposes to conduct
harvesting and related operations on one or more cut
blocks covered or to be covered by a cutting permit,
(n) "management plan" means a management plan referred to
in paragraph 3.01, or approved under paragraph 3.09,
(o) "Minister" means the minister responsible for
administering the Forest Act,
(p) "person" includes a corporation and a partnership,
(q) "planning area" means that part of the Timber Supply
Area for which the Licensee is recognized as a major
user of the timber resource,
(r) "resource agency" means any governmental agency,
ministry or department having jurisdiction over a
resource which, in the Licensor's or District
Manager's opinion, may be affected by any activity or
operation, including but not restricted to harvesting
activities or operations, engaged in or carried out
under or associated with this Licence or a road
permit,
(s) "Road Deactivation Plan" means a road deactivation
plan referred to in paragraph 10.05,
(t) "Road Maintenance Plan" means a road maintenance plan
referred to in paragraph 10.04,
(u) "road permit" means a road permit entered into under
the Forest Act which provides access to timber
harvested, or to be harvested, under this Licence,
(v) "special deposit" means a special deposit which the
Licensee is required to maintain under paragraph
9.11,
(w) "sustenance activities" means activities associated
with traditional aboriginal life, such as hunting,
gathering and collecting activities, and includes
cultural, spiritual and religious activities,
(x) "Timber Supply Area" means the timber supply area
described in paragraph 1.01.
19.02 Unless otherwise provided in paragraph 19.01, if a word or
phrase used in this Licence is defined in the Forest Act, the
definition in the Forest Act applies to this Licence, and
where the word or phrase in the Forest Act is replaced by a
new word or phrase, this Licence is deemed to have been
amended accordingly.
25.
<PAGE> 26
19.03 Where a provision of the Forest Act referred to in this
Licence is renumbered, the reference in this Licence must be
construed as a reference to the provision as renumbered.
19.04 In this Licence, unless the context otherwise requires,
(a) the singular includes the plural and the plural
includes the singular, and
(b) the masculine, the feminine and the neuter are
interchangeable.
19.05 This Licence is divided into parts, paragraphs, subparagraphs,
clauses and subclauses, illustrated as follows:
1.00 part,
1.01 paragraph,
(a) subparagraph,
(i) clause,
(A) subclause;
and a reference to a subparagraph, clause or subclause must be
construed as a reference to a subparagraph, clause or
subclause of the paragraph, subparagraph or clause, as the
case may be, in which the reference occurs.
26.
<PAGE> 27
IN WITNESS WHEREOF this Licence has been executed by the
Licensor and the Licensee.
SIGNED on _________________, 19___
by the Regional Manager on )
behalf of Her Majesty the Queen )
in Right of the Province of British )
Columbia in the presence of: )
)
___________________________________ ) ____________________________________
) ROSS R. TOZER
___________________________________ ) NELSON FOREST REGION
THE COMMON SEAL OF the )
Licensee was affixed on )
_______________, 19__ in the )
presence of: )
) c/s
)
___________________________________ )
)
___________________________________ )
(or)
SIGNED on _____________, 19__ )
by the Licensee, in the )
presence of: )
)
)
___________________________________ ) ____________________________________
) POPE & TALBOT LTD.
___________________________________ )
27.
<PAGE> 1
Exhibit 11.1
POPE & TALBOT, INC.
STATEMENT SHOWING CALCULATION OF AVERAGE
COMMON SHARES OUTSTANDING AND EARNINGS
PER AVERAGE COMMON SHARE
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
------------------------------ ------------------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Weighted average number
of common shares
outstanding 13,363,779 13,363,779 13,363,779 13,363,433
Application of the "treasury
stock" method to the stock
option plan 6,442 8,897 3,393 10,563
------------ ------------ ------------ ------------
Total common and common
equivalent shares,
assuming full dilution 13,370,221 13,372,676 13,367,172 13,373,996
============ ============ ============ ============
Net income (loss) $ 1,137,000 $ (6,645,000) $ 2,144,000 $(16,890,000)
============ ============ ============ ============
Net income (loss) per common
share, assuming full dilution $ .08 $ (.49) $ .16 $ (1.26)
============ ============ ============ ============
</TABLE>
The computation of primary net income (loss) per common share is not included
because the computation can be clearly determined from the material contained in
this report.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE POPE &
TALBOT, INC. CONSOLIDATED CONDENSED FINANCIAL STATEMENTS FOR THE QUARTERLY
PERIOD ENDED SEPTEMBER 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 36,419
<SECURITIES> 8,231
<RECEIVABLES> 42,920
<ALLOWANCES> 0
<INVENTORY> 68,860
<CURRENT-ASSETS> 171,571
<PP&E> 466,563
<DEPRECIATION> 260,127
<TOTAL-ASSETS> 418,167
<CURRENT-LIABILITIES> 95,110
<BONDS> 108,174
0
0
<COMMON> 13,972
<OTHER-SE> 170,481
<TOTAL-LIABILITY-AND-EQUITY> 418,167
<SALES> 333,615
<TOTAL-REVENUES> 333,615
<CGS> 314,807
<TOTAL-COSTS> 314,807
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,647
<INCOME-PRETAX> (776)
<INCOME-TAX> 190
<INCOME-CONTINUING> (966)
<DISCONTINUED> 3,110
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,144
<EPS-PRIMARY> .16
<EPS-DILUTED> .16
</TABLE>
