TIMBER LICENCE T(Licence#)

CUTTING PERMIT (Permit#)

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PURSUANT TO Timber Licence T(Licence#) (the “Licence”), this CuttingPermit is issued to:

LICENSEE’S LEGAL NAME

ADDRESS LINE 1

ADDRESS LINE 2, British Columbia

ADDRESS LINE 3

Phone: # Fax: #

(the “Licensee”)

1.00PERMIT AREA AND TERM

1.01Subject to the Licence and the forestry legislation, the Licensee is authorized to cut and remove timber from the areas of land within the harvest area.

1.02Subject to paragraph 1.03, and the term of the Licence, the term of this Cutting Permit is (#of years)years, beginning on(date with a 4 digit year).

1.03Provided the Licence does not prohibit extensions, the DistrictManager may extend the term of this Cutting Permit in accordance with section58.1 of the Forest Act.

1.04Notwithstanding paragraph 1.03, the term of this Cutting Permit will not exceed 4 years.

1.05The Licensee must make application for an extension of this Cutting Permit to the District Manager at least 60 days before the expiry of the Cutting Permit and in a form acceptable to the District Manager.

2.00SPECIAL CONDITIONS AND REQUIREMENTS

2.01The Licensee must comply with the conditions and requirements set out in Schedule “A” to this CuttingPermit.

3.00TIMBER HARVESTING AND WASTE ASSESSMENT

3.01The Licensee must not fell standing timber, or must not buck or remove felled or dead and down timber, as the case may be, if:

(a)the timber is specified as reserved timber in paragraph 3.02 of this Cutting Permit; or

(b)under an applicable operational plan or the forestry legislation, the Licensee must not fell, buck or remove the timber, for silviculture, biodiversity or other forest management reasons.

3.02The following timber is specified as reserved timber:

(a)(type) marked by (marking) or otherwise designated by the Licensee, approved by the District Manager;

(b)(type) marked by (marking) or otherwise designated by the District Manager;

(c)all live (species/type) trees under 75 years in age on January1,1975; and

(d)all live (species/type) trees.

3.03Subject to paragraph 3.01, all timber that meets or exceeds the merchantability specifications set out in the Waste Assessment Manual and that is not removed by the Licensee may be identified in an assessment described in paragraph 3.04 of this Cutting Permit and the volume of that timber, whether standing or felled, that could have been removed under the Licence, but which is not removed may be dealt with as if it had been removed for the purposes of calculating stumpage.

3.04For the purpose of conducting the assessment of the volume of timber that was not removed, but which could have been removed as described in paragraph 3.03 and for the purpose of determining the volume of timber that is waste for the purposes of paragraph 3.05:

(a)the Licensee must conduct an assessment in accordance with the current Waste Assessment Manual after the Licensee has declared that primary logging (felling timber and yarding or forwarding the timber to central landings or roadsides, but does not include removing the timber) has been completed for the Cutting Permit; or

(b)the District Manager may conduct an assessment in accordance with the current Waste Assessment Manual after the expiry of the term of the Cutting Permit or Licence or the Licence and/or Cutting Permit otherwise being terminated, whichever occurs first.

3.05The District Manager, in a notice given to the Licensee, may require the Licensee to pay in respect of the volume of timber determined under paragraph 3.04, a monetary waste assessment for all timber, whether standing or felled, that could have been removed under the Licence, but is not removed, and that meets or exceeds the merchantability specifications as set out in the current Waste Assessment Manual.

4.00TIMBER MARK

4.01The timber mark(s) for this CuttingPermit is/are:

TimberMarks

4.02If directed to do so by the District Manager, the Licensee must erect signs at all exits from the harvest area, clearly showing the timber mark(s) referred to in paragraph4.01.

(Pick one of the following paragraph 5.00)

5.00SCALEBASED STUMPAGE

5.01For the purpose of determining the amount of stumpage payable in respect of timber removed from the harvest area, the volume or quantity of timber removed will be determined using information provided in a scale of the timber.

5.02The Licensee must ensure that:

(a)all timber removed from the harvest 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.

5.03Immediately upon receipt of a notice, statement or invoice issued on behalf of the Crown, the Licensee must pay stumpage under Part7 of the ForestAct at rates determined, redetermined and varied under section105 of that Act for all timber removed from the harvest area or not removed and identified under part 3.00 of this Cutting Permit.

5.00CRUISEBASED STUMPAGE

5.02Within seven days after the last day of each month during the term of this CuttingPermit, the Licensee must submit a report, in a form acceptable to the District Manager, including the information required by the District Manager regarding the area removed under this CuttingPermit:

(a)during that month; and

(b)during the term of this CuttingPermit up to the end of that month.

6.00LEGISLATIVE FRAMEWORK

6.01This CuttingPermit is subject to:

(a)the ForestAct;

(b)the ForestPracticesCode of BritishColumbia Act;

(c)the Forestand Range Practices Act; and

(d)the regulations and standards made under those Acts.

6.02The Licensee must:

(a)comply with the forestry legislation; and

(b)ensure that its employees, agents and contractors comply with the forestry legislation when engaging in or carrying out activities or operations under or associated with this CuttingPermit.

6.03Nothing in this CuttingPermit is to be construed as authorizing the Licensee to cut or remove timber or engage in or carry out any other forest practices until all applicable operational plans for both the harvest area and any corresponding roads have been prepared or approved by the District Manager.

6.04Nothing in this CuttingPermit is to be construed as authorizing the Licensee to carry out any operations or engage in any activities otherwise than in accordance with the requirements of the forestry legislation.

7.00ROADS

7.01The Licensee must ensure that all roads constructed or modified by or on behalf of the Licensee on the harvest area are:

(a)identified on a forest development plan or a forest stewardship plan and authorized under a road permit; or

(b)authorized under paragraph7.02.

7.02Subject to the Licence and forestry legislation, the Licensee may construct or modify roads under the authority of this CuttingPermit on harvest area if the roads are:

(a)identified on a logging plan;

(b)wholly contained within a cut block identified on a forest development plan; and

(c)not identified on a forest development plan or a forest stewardship plan as providing access to more than one cut block.

7.03Subject to paragraph7.04, a road referred to in paragraph 7.02 may be used for nonindustrial purposes by any person without charge.

7.04The Licensee may close or restrict use of a road referred to in paragraph7.02, if:

(a)in the opinion of the District Manager, activities or operations under or associated with this CuttingPermit represent a danger to life or property;

(b)the District Manager consents to the closure or restriction; and

(c)the Licensee complies with any directions of the District Manager with respect to the closure or restriction, including directions regarding the location and marking of gates and the posting of warning notices.

8.00MISCELLANEOUS

8.01The Schedules and Exhibit“A”map(s) attached to this CuttingPermit are deemed to be part of this CuttingPermit.

8.02This CuttingPermit is deemed to be part of the Licence.

8.03The Licence will govern the interpretation of this CuttingPermit.

8.04The Licensee must notify the District Manager in writing in a form acceptable to the District Manager, when all harvest related obligations are complete.

9.00INTERPRETATION

9.01In this CuttingPermit:

“forestry legislation” means the legislation outlined in paragraph 6.01 of this Cutting Permit;

“harvest area” means the area or areas allocated for the activities conducted by the Licensee pursuant to the Licence and this Cutting Permit and which for greater detail are outlined on the attached Exhibit “A”map(s);

“remove” means the removal of timber from the harvest area and “removed” and “removing” have the corresponding meanings;

“waste”means timber, whether standing or felled, that could have been removed under the Cutting Permit but was not removed, and which meets or exceeds the specifications of timber merchantability as stated in the Waste Assessment Manual, and as determined in accordance with the Waste Assessment Manual; and

“Waste Assessment Manual” means the “Provincial Logging Residue and Waste Measurement Procedures Manual”.

DATED (date with 4 digit year)______

(Managers name), District Manager
(District name) Forest District

SCHEDULE “A”

1.00OTHER CONDITIONS AND REQUIREMENTS

1.01

NOTE: Insert special conditions and requirements hereor write NIL.

These conditions and requirements must be consistent with Licence and the Forest Act and come from the optional clauses template.

EXHIBIT “A”

(Map)

Substitute actual map for this page.

Make sure areas designated for operations to be conducted pursuant to this Cutting Permit are identified on a forest development plan (“FDP”), unless specifically exempted from the requirement for an FDP, e.g. hazard trees. Also make sure areas exempted from the requirement for an FDP are also identified, e.g. a hazard tree “buffer” around cut block, etc.

Also, cut blocks shown on this map must be the same approximate size, shape and location as the cut blocks shown on the FDP, allowing only for difference in scale.

TL CP – Version 1.11.docPage 1 of 8

February 9, 2008