FIT Study Session #1

Tenure Systems

  1. AAC’s are determined for every FMU and FMA

-Who is responsible for calculating them and approving them?

  • Calculating: FMU is the Government and FMA is the FMA holder.
  • Approval: Government for both

-How often and under what conditions is an AAC recalculated?

  • If AAC is affected > 2.5%, at the discretion of the Minister, prior to renewing quotas for a further 20 years. New AACs are calculated to include land base and policy changes that occurred since the previous AACs were set.

-What guidelines are followed in their calculations?


  1. Describe the different Tenure Systems in Alberta.
  • FMA’s – 20 years and renewable every 10 yrs, Terms and conditions are fully negotiated and approved by Cabinet as an Order-in-council. Area based not volume based, has rights and obligations to establish, grow and harvest the timber on a sustained yield basis, supply a DFMP, must have a mill, AAC approved through DFMP, Negotiate own ground rules, holding and protection charges and pulp dues.
  • Coniferous Timber Quota – Volume based, Historic grant or competitive sale, Percent of AAC of FMU, 20 yr harvest sequence defined as quota sphere of interest, 20 yr term with renewal opportunity, holder is responsible for reforestation if AAC > 10,000 m3, embedded quota holders participate in FMA plans, subject to provincial ground rules (or FMA), charges set by TM regs, Need approved AOP
  • Deciduous timber allocations – same as above and in past gov’t did forest management planning and reforestation (in process of transferring responsibility.
  • Permits – 1 to 5 years, issued in MTU areas, issued for endangered or dead timber, sold by sealed tender, open competition or direct sale, for commercial use, charges identified by TM regs, subject to provincial ground rules, need approved AOP (upon request) to operate.
  • Local Timber Permit – 1 yr duration, personal use, max 50 m3 green volume, crown can issue larger amounts under emergence situations, $20 charge, 1st com – 1st served
  • TM 66 – Forest Products Tag – 30 day use, personal use, 20 transplants under 2.5m, 3 Christmas trees, 5m3 green volume, $5 charge
  1. What is the legal document that allows timber to be harvested?
  • TM 66 – permit
  • LTP – permit
  • Permits (CTP & DTP) – permit
  • DTA – Licence is harvest authority, Legal Tenure document is DTA certificate
  • CTQ – Licence is harvest authority, Legal Tenure Document is Quota certificate
  • FMA - Legal Tenure Document is the FMA after forest management plan approval.
  1. What is the term (length) of each of the Tenure Systems?
  • Permit: 1 to 5 years
  • Quota or Allocation – 20 years
  • FMA – 20 years with renewal every 10 years
  1. How are the different Tenure issued?
  • FMA is negotiated with government
  • CTQ or DTA – Competitive sale or direct allocation (historical grant)
  • CTP – direct sale, competitive sale, sealed tender.
  • LTP – 1st come 1st served
  1. Which ground rules do you use for each type of tenure?
  • FMA – FMA’s
  • CTQ or DTA – Provincial or FMA’s
  • CTP – Provincial or FMA’s
  • LTP – Provincial or FMA’s
  1. List three approvals necessary before timber harvest operations can occur on an FMA?
  • Approved ground rules
  • Management Plan
  • Annual operating plan
  1. Describe, concisely, the intent of the quota system.
  • To provide long term secure wood supplies to industry having single facilities or smaller scale operations than FMA holders.
  • Quotas are traditionally associated with the sawmilling industry.
  1. List 2 industry responsibilities and 2 government responsibilities related of quotas.

Industry

  • Reforestation – either conducting or paying to have it done.
  • Pay holding and protection charges based on authorized quota AAC.
  • Preparing annual operating plans, GDP’s.
  • Referral of plans to other effected parties (i.e. Trappers).

Government

  • Reforestation on areas where levy paid by quota holder.
  • Developing sustained yield forest management plans.
  • Developing cutting sequence for each quota holder in accordance with management plan.
  • Issuing licences, and approving AOP’s.
  • Monitoring activities.
  • Collection of revenues.
  • Referral of plans to other agencies.
  1. Quota certificates provide the right to harvest. What authority is required before timber-harvesting operations can be carried out relative to a quota?
  • Timber licences with approved AOP
  1. You are the RPF representing you company at a public meeting and are asked to explain why the FMA holder should be given the rights to grow and harvest timber on provincial Crown Land. Describe in point form two responsibilities for the government that you want the audience to understand.

Company Responsibilities: (any two)

  • Carry out reforestation and other programs approved by the minister.
  • Construct, operate and maintain roads, wood yards and other installations.
  • Pay royalties on sand and gravel.
  • Prepare at own expense a forest management plan, including necessary forest inventory.
  • Determine a sustainable harvest level and recommend an AAC.
  • Develop major processing facilities.
  • Deposit a predetermined performance guarantee.
  • Pay holding and protection charges as well as stumpage.

Government Responsibilities: (any two)

  • Withdraw lands from FMA that are essential for human or physical resource development of the province.
  • Reserve all land rights on the FMA for public use, geological or geophysical exploration, maintenance or enhancement of fish and wildlife resources, domestic stock grazing, local timber use.
  • Approve all plans and surveys carried out by FMA holder in order to fulfil their management requirements.
  • Ensure all plans address multiple use, ground rules, periodic cut control, annual operating plans and utilization.
  • Provide protection of the forest from fire by paying fire prevention and suppression costs and insect and disease control on a co-operative basis.
  • On some FMA’s have to address the areas that are not free-to-grow.