Intermediate Salvage - Forestry Licence to Cut

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FORESTRY LICENCE TO CUT

A(LICENCE#)

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NOTE: This Licence is intended for use in the small scale salvage program for timber harvested under theauthority of section 47.6 (2)(a) and (2.2) of the Forest Act.

THIS LICENCE, dated for reference(datewith4digityear).

BETWEEN:

HER MAJESTY THE QUEEN IN RIGHT
OF THE PROVINCE OF BRITISH COLUMBIA,
as represented by theREGIONAL or DISTRICTMANAGER, or FOREST OFFICER
MINISTRY OF NATURAL RESOURCE OPERATIONS

ADDRESS LINE 1

ADDRESS LINE 2, British Columbia

ADDRESS LINE 3

Phone: # Fax: #

(the “Regional Manager” or “District Manager” or “ForestOfficer”)

NOTE: Choose the correct title of the Licensor (i.e. RM or DM, when Licence is entered under section 47.6(2)(a) of the Forest Act, or Forest Officer, when Licence is entered under section 47.6(2.2) of the Forest Act.

AND:

LICENSEE’S LEGAL NAME

ADDRESS LINE 1

ADDRESS LINE 2, British Columbia

ADDRESS LINE 3

Phone: # Fax: #

(the “Licensee”)

WHEREAS:

THE PARTIES agree as follows:

1.00GRANT OF RIGHTS AND TERM

NOTE: The start date must be the same as the date of reference located at the top of the first page of this document. The term of this Licence must not exceed five years
(Forest Actsection 47.7(a)).

1.01The term of this Licence begins on (start date with 4 digit year) and expires on the earlier of (end date with 4 digit year) or when the Regional Manager or District Manager gives notice to the Licensee that all contractual and legislative obligations associated with this Licence have been completed.

RECITAL

"The Table of Contents and headings in this Licence are included for convenience only and do not form a part of this Licence and in no way define, limit, alter or enlarge the scope or meaning of any provision of this Licence."

TABLE OF CONTENTS

1.00GRANT OF RIGHTS AND TERM

2.00TIMBER HARVEST LIMITATIONS

3.00TIMBER MARK

4.00SCALE BASED STUMPAGE

5.00TIMBER VOLUME CHARGED TO THE LICENCE

6.00WASTE ASSESSMENT

7.00COURT DETERMINED ABORIGINAL RIGHTS AND/OR TITLE

8.00FINANCIAL AND DEPOSITS

9.00LIABILITY & INDEMNITY

10.00TERMINATION

11.00WAIVER

12.00NOTICE

13.00MISCELLANEOUS

14.00INTERPRETATION & DEFINITIONS

SCHEDULE “A” OTHER CONDITIONS AND REQUIREMENTS

SCHEDULE “B” RESERVED TIMBER

EXHIBIT “A”

NOTE: There are two options available for paragraph 1.02. Choose the authority to harvest Crown timber option that best suits the circumstances.
NOTE: Select ONE OPTION for paragraph 1.02 and delete the other.

OPTION #1

Is intended for very simple salvage situations where there is a specific salvage objective (for example “dead and down cedar”). Option 1 takes the approach of giving authority to cutting only Crown timber that is “designated” and gives no authority to cut anything else from within the “licence area”. There will be no reserved timber with this option.

When describing the designated timber, it is recommended that district compliance and enforcement staff have input regarding the clarity and enforceability of the wording. In approving the FLTC, District Managers should weigh the relative risks of enforceability against the forest management objectives that are being strived for.

If marked timber is selected, consider the following wording for the description: “All timber within the licence area that is permanently marked with (specify colour) coloured paint on the bole of the tree approximately 1.3 metres above the ground, and with a distinct vertical paint mark at the base of the tree below stump height”.

1.02Subject to the Licence and the forestry legislation, the Licensee is authorized to harvestdesignatedormarked Crown timber from areas of land shown on the attached Exhibit“A” map(s) (“the licence area”). DesignatedorMarked timber is restricted to:

(a)(Insert description of timber, species, grade and any other descriptive parameters).

OPTION #2

Will likely be the most commonly used option. It gives authority to cut ALL TIMBER within the licence area unless it is reserved under Schedule “B”. This options allows managers to specify through the Schedule“B” the resultant post harvest stand (or target stand) they want left.

1.02Subject to this Licence and the forestry legislation, the Licensee is authorized to harvest the Crown timber from the areas of land shown on the attached Exhibit “A”map(s)(“the licence area”).

NOTE: paragraph 1.03.

The volume of timber to be inserted in paragraph 1.03 is directly linked to the licence area and reserve timber specifications in part 2.00. In addition, there is a direct connection to the take or pay provisions in part6.00. The estimate must be as accurate as possible to ensure that it does not create conflicts with these sections.

1.03During the term of thisLicence, the maximum volume of timber harvested under this Licence from the licence area is(insert volume)m3.

1.04The volume of timber harvested under this Licence that exceeds the maximum harvestable volume of timber specified in paragraph 1.03 will be subject to the penalties specified in section 75.21 of the Forest Act, section 2 of the Cut Control Regulation, and may also be subject to penalties available under the Forest and Range Practices Act.

1.05Subject to this Licence, the Licensee has the right to enter and use Crownland to exercise rights and fulfill obligations under this Licence.

Note: paragraph 1.06

This Licence is not a “Major Licence” as defined by the Forest Act, unless there is a provision added to this Licence stating that it is a Major Licence (as provided for by section 47.7(d) of the Forest Act). This Licence is not a “Minor Tenure” unless it meets the requirements of the definition in the forest practices and planning regulation.

1.06This Licence is not replaceable under the ForestAct.

NOTE: paragraph 1.07

Select ONE OPTION for paragraph 1.07 and delete the other.

OPTION #1

1.07Extensions may be granted to the term of this Licence.

OPTION #2

1.07Extensions will not be granted to the term of this Licence

2.00TIMBER HARVEST LIMITATIONS

2.01Timber harvesting must be conducted in accordance with the forestry legislation and the conditions and requirements specified in Schedule “A”.

2.02In addition to timber specified in the forestry legislation as reserved, the Licensee must not cut, damage, or destroy timber if the timber is specified as reserved in Schedule “B”.

3.00TIMBER MARK

3.01The timber mark for timber harvested under this Licence is:

(timber mark)

3.02All timber cut from the licence area must be marked in accordance with the Forest Actand the Timber Marking and Transportation Regulation.

4.00SCALE BASED STUMPAGE

4.01The Licensee must ensure that:

(a)all timber removed from the licence area is scaled; and

(b)the scale of the timber is conducted properly in accordance with the requirements of the ForestAct and the regulations made under that Act.

5.00TIMBER VOLUME CHARGED TO THE LICENCE

5.01Timber harvesting must be conducted in accordance with the forestry legislation and the conditions and requirements specified in Schedule “A”.

5.02In addition to timber specified in the forestry legislation as reserved, the Licensee must not cut, damage, or destroy timber if the timber is specified as reserved in Schedule “B”.

5.03The definition of “volume of timber harvested” in section 75.1 of the Forest Act does not apply to this Licence.

5.04The “volume of timber harvested” means the same as in section 75.1(1)of the Forest Act except that for the purposes of section 75.1 (3) (a) of the Act, the volume of timber harvested attributed to the Licence is adjusted downward for a grade code listed in the Schedule of Interior Timber Grades to the Scaling Regulation, as amended or replaced:

(a)for grade codes 1 and 2 by 0 %;

(b)for grade code 4 by 0 %;

(c)for grade code 6 by 0 %; and

(d)for grade code Z by 100 %.

5.05The determination of the volume of timber harvested will incorporate the volume of waste determined under part 5.00

5.06The Interior timber merchantability specifications in the Provincial Logging Residue and Waste Measurement Procedures Manualthat was in effect on the date of issuance of the forestry licence to cut shall govern.

5.01Timber of the following grades will be used to calculate and determine the “volume of timber harvested” as defined in section 75.1 of the Forest Act:

6.00WASTE ASSESSMENT

6.01The quantity and quality of merchantable Crown timber that could have been harvested under this Licence but at the Licensee’s discretion was not harvested, will be determined in accordance with the provisions of the Provincial Logging Residue and Waste Measurement Procedures Manual, as amended or replaced from time to time.

6.02The Regional Manager or District Manager, in a notice given to the Licensee, may require the Licensee to pay in respect of the volume of timber determined under paragraph6.01, a monetary assessment for all waste.

6.03The amount of money that the Licensee must pay under a waste assessment will be determined in accordance with the provisions of the Provincial Logging Residue and Waste Measurement Procedures Manual as they are at the time the quantity and quality of merchantable Crown timber is determined under paragraph6.01.

6.04For the purpose of conducting the assessment of the volume of timber that was not harvested as described in paragraph6.01 the Regional Manager or District Manager may conduct an assessment in accordance with the current Provincial Logging Residue and Waste Measurement Procedures Manual after the expiry of the term of this Licence or the Licence otherwise being terminated, whichever occurs first.

7.00COURT DETERMINED ABORIGINAL RIGHTS AND/OR TITLE

7.01Notwithstanding any other provision of this Licence, if a court of competent jurisdiction:

(a)determines that activities or operations under or associated with this Licence will unjustifiably infringe an aboriginal right and/or title, or treaty right;

(b)grants an injunction further to a determination referred to in subparagraph7.01(a); or

(c)grants an injunction pending a determination of whether activities or operations under or associated with this Licence will unjustifiably infringe an aboriginal right and/or title, or treaty right,

the Regional Manager or District Manager in a notice given to the Licensee, may vary or suspend, this Licence in whole or in part, so as to be consistent with the court determination.

7.02Subject to this Licence and the forestry legislation, if:

(a)under paragraph7.01, the Regional Manager or District Manager has varied the Licence issued to the Licensee;

(b)a court of competent jurisdiction subsequently overturns, sets aside or dissolves the determination or injunction referred to in that paragraph; and

(c)it is practical to do so;

the Regional Manager or District Manager, at the request of the Licensee, will vary the Licence to reflect as closely as possible, for the remainder of its term, the terms and conditions of the Licence prior to the variation under paragraph7.01.

7.03Subject to this Licence and the forestry legislation, if:

(a)under paragraph7.01, the Regional Manager or District Manager has suspended the Licence;

(b)a court of competent jurisdiction subsequently overturns, sets aside or dissolves the determination or injunction referred to in that paragraph; and

(c)it is practical to do so;

the Regional Manager or District Manager, at the request of the Licensee, will reinstate the Licence for the remainder of its term.

8.00FINANCIAL AND DEPOSITS

8.01In addition to any money payable in respect of this Licence under the forestry legislation, the Licensee must pay to the Government, immediately upon receipt of a notice, statement or invoice issued on behalf of the Government:

(a)stumpage under part7 of the ForestAct at rates determined, re-determined and varied under section105 of that Actin respect of timber removed under this Licence;

(b)any payment required as a result of a waste assessment under part 6.00 of this Licence.

8.02The Licensee will provide the Crown with $(specify amount $ ___)to be held on deposit (the “deposit”) to be used in accordance with the regulations.

8.03If the Licensee fails to perform an obligation under this Licence, the Regional Manager or District Manager, after at least two weeks notice, may take from the deposit an amount equal to the reasonable costs to perform the obligation and may perform the obligation on the Licensee’s behalf.

8.04If the Regional Manager or District Manager takes from the deposit under paragraph8.03, the Licensee must pay to the Government on demand an amount sufficient to replenish the deposit or this Licence may be terminated by the Regional Manager or District Manager.

8.05In accordance with theAdvertising, deposits, Disposition and Extensions Regulation, the deposit may be refunded to the Licensee.

9.00LIABILITY & INDEMNITY

9.01Subject to paragraph9.03, the Licensee will indemnify the Government against and save it harmless from all claims, demands, suits, actions, causes of action, costs, expenses and losses faced, incurred or suffered by the Government as a result, directly or indirectly, of any act or omission of:

(a)the Licensee;

(b)an employee or agent of the Licensee;

(c)a contractor of the Licensee who engages in any activity or carries out any operation, including but not restricted to the Licensee’s operations, under or associated with this Licence; 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 under or associated with this Licence.

9.02For greater certainty, the Licensee has no obligation to indemnify the Government under paragraph9.01 in respect of any act or omission of:

(a)an employee, agent or contractor of the Government , in the course of carrying out his or her duties as employee, agent or contractor of the Government; or

(b)a person, other than the Licensee, to whom the Government has granted the right to use or occupy Crown land, in the course of exercising those rights.

9.03Amounts taken under part 8.00from the deposit and any payments required under parts5.00, 6.00 or 8.00, and payments required further to the indemnity referred to in paragraph9.01 are in addition to and not in substitution for any other remedies available to the Government in respect of a default of the Licensee.

9.04The Government 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.

10.00TERMINATION

10.01If this Licence expires or is cancelled or is otherwise terminated:

(a)title to all improvements, including roads and bridges, fixed on Crown land in the licence area; and

(b)all timber, including logs and special forest products, located on the licence area, will vest in the Crown, without right of compensation to the Licensee.

10.02If the Licensee commits an act of bankruptcy, makes a general assignment for the benefit of its creditors or otherwise acknowledges its insolvency, the Licensee is deemed to have failed to perform an obligation under this Licence.

11.00WAIVER

11.01No waiver by the Crown of any default non-compliance by the Licensee in the strict and literal performance of or compliance with any provision of the Licence will be deemed to be a waiver of the strict and literal performance of or compliance with any other provision, condition or requirement of the Licence or to be a waiver of, or in any manner release the Licensee from compliance with any provision, condition or requirement in the future, nor will any delay or omission by the Crown in the exercising of any right hereunder in any manner with respect to non-compliance impair the exercise of any such rights in the future.

12.00NOTICE

12.01A notice given under this Licence must be in writing.

12.02A notice given under this Licence may be:

(a)delivered by hand;

(b)sent by mail; or

(c)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.

12.03If a notice is given under this Licence, it is deemed to have been given:

(a)if it is given in accordance with subparagraph 12.02(a)on the date it is delivered by hand;

(b)if it is given in accordance with subparagraph 12.02(b), subject to paragraph12.04, on the eighth day after its deposit in a CanadaPostOffice at any place in Canada; and

(c)if it is given in accordance with subparagraph 12.02(c), subject to paragraph 12.05, on the date it is sent by facsimile transmission.

12.04If, between the time a notice is mailed in accordance with subparagraph12.02(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.

12.05If a notice is sent by facsimile transmission, the party sending the notice must take reasonable steps to ensure that the transmission has been successfully completed.

12.06Either party may, from time to time, advise the other party by notice in writing, of any change of address of the party giving such notice and, from and after the giving of such notice, the address specified will, for purposes of this Licence, be considered to be the address of the party giving such notice.

13.00MISCELLANEOUS

13.01This Licence will inure to the benefit of, and be binding on, the parties and their respective heirs, executors, successors and permitted assigns.

13.02The laws of BritishColumbia will govern the interpretation of this Licence and the performance of the Licensee’s obligations under this Licence.

13.03Any non-statutory power conferred or duty imposed on the Regional Manager or District Managerunder this Licence may be exercised or fulfilled by any person authorized to do so by the Regional Manager or District Manager.

NOTE: paragraph 13.04

Attaching the professional application and other related documents (e.g. archealogical impact assessments) is not recommended due to the strong possiblity of conflict (and the introduction of officially induced error ) with this Licence. If there are elements of the professional application that are important to this Licence, they should be included as a condition in Schedule “A”.

13.04Any Schedules, Exhibit “A” map(s) or attachments referenced in, or attached to this Licence are an integral part of this agreement as if set out in the body of this agreement, and the Licensee will comply with all the terms in the Schedules.

13.05If there is a conflict between the WorkersCompensationAct or a regulation under that Act, and a provision of this Licence, the WorkersCompensationAct, or the regulations made under that Act, prevails, and the Licensee must immediately notify the District Manager of the conflict and follow any direction given by the District Manager with respect to the conflict, provided such direction is consistent with the WorkersCompensationAct and the regulations under that Act.