A-18.1, r. 6 - Regulation respecting the method for assessing the annual royalty and the method and frequency for assessing the market value of standing timber purchased by guarantee holders pursuant to their timber supply guarantee

Updated to 28 March 2013

This document has official status.

chapter A-18.1, r. 6

Regulation respecting the method for assessing the annual royalty and the method and frequency for assessing the market value of standing timber purchased by guarantee holders pursuant to their timber supply guarantee

Sustainable Forest Development Act

(chapter A-18.1, s. 126).

1. For the purposes of this Regulation,

(1)  “harvest year” means the period extending from 1 April to 31 March of the following year;

(2)  “reference period” means the period extending from 1 April to 31 December of the following year;

(3)  “billed volume of timber” means, for the harvest years 2011-2012 and 2012-2013, all the timber from forests in the domain of the State that is billed to the holder of a timber supply and forest management agreement by the department and, for subsequent harvest years, all the timber from forests in the domain of the State that is billed to the holder of a timber supply guarantee by the timber marketing board, except timber acquired on the open market.

O.C. 167-2013, s. 1.

2. The timber billed during the reference period is the timber harvested in the last complete harvest year preceding the time at which the annual royalty is assessed.

The annual royalty payable by holders of a timber supply guarantee is assessed in January of each year.

O.C. 167-2013, s. 2.

3. If the volume of timber billed to a guarantee holder during the reference period is equal to or greater than 10% of the volume of timber specified in the timber supply guarantee, the annual royalty is assessed according to the follow-ing method:

VBG1 [18% (VMBSPF2 / VBF3)]

1 the volume of timber specified in the holder’s timber supply guarantee;

2 the market value of the standing timber related to the volume of timber billed to the holder during the reference period;

3 the volume of timber billed to the holder during the reference period.

Where the timber supply guarantee is granted during the harvest year, the annual royalty is adjusted in proportion to the volume of timber that the holder will be able to purchase before the end of that year.

O.C. 167-2013, s. 3.

4. If the volume of timber billed to a guarantee holder during the reference period is less than 10% of the volume of timber specified in the timber supply guarantee, the annual royalty is assessed according to the following method:

1 the sum of the operation between braces for each species or group of species specified in the holder’s timber supply guarantee;
2 the volume of the species or group of species in question, as specified in the holder’s timber supply guarantee;
3 the total market value of the standing timber related to the volume of timber billed to all the holders during the reference period for the species or group of species concerned;
4 the total volume billed to all the holders during the reference period for the species or group of species concerned.

Where the timber supply guarantee is granted during the harvest year, the annual royalty is adjusted in proportion to the volume of timber that the holder will be able to purchase before the end of that year.

O.C. 167-2013, s. 4.

5. The market value of standing timber purchased pursuant to a timber supply guarantee is assessed on 1 April of each year according to the parity technique applicable in property assessment by comparing the timber to similar timber for which the selling price is known. The value is expressed in Canadian dollars per cubic metre.

The unit rates obtained on the basis of that assessment are adjusted every 3 months according to the rate of increase in forest product price indexes.

O.C. 167-2013, s. 5.

6. (Omitted).

O.C. 167-2013, s. 6.

REFERENCES

O.C. 167-2013, 2013 G.O. 2, 620