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

Section 4.0.4 Disposition versions

2022-03-31

4.0.4. The amount payable by the holder of a timber supply guarantee as the second instalment of the annual royalty is calculated using the following formula:

O = P – K, where

(1)  “O” is the amount payable as the second instalment of the annual royalty;

(2)  “P” is the adjusted annual royalty for the calculation of the second instalment, calculated in accordance with section 4.0.3;

(3)  “K” is the amount payable as the first instalment of the annual royalty, calculated in accordance with the first or second paragraph of section 4.0.2.

Despite the first paragraph, if the adjusted annual royalty for the calculation of the second instalment, calculated in accordance with section 4.0.3, is less than 50% of the result obtained by performing the same calculation as the calculation provided for in section 4, but by first subtracting, where applicable, the volumes of timber represented by the letters “N” and “R” from the volume of timber represented by the letter  “I”, the amount payable as the second instalment of the annual royalty is calculated using the following formula:

O = (50% ((I – N – R) × (18% A)) – K, where

(1)  “O” is the amount payable as the second instalment of the annual royalty;

(2)  “I” is the volume of timber specified in the holder’s timber supply guarantee;

(3)  “N” is the volume of timber, covered by a special development plan, that the holder has waived or is deemed to have waived at the time the sales contract is made for the standing timber purchased pursuant to the holder’s timber supply guarantee;

(4)  “R” is the volume of timber, covered by a special development plan, that the holder waived after the time the sales contract was made for the standing timber purchased pursuant to the holder’s timber supply guarantee, but not later than 15 August of the harvest year;

(5)  “A” is the adjusted average market value of standing timber per cubic metre used to calculate the annual royalty, calculated in accordance with the first or second paragraph of section 2;

(6)  “K” is the amount payable as the first instalment of the annual royalty, calculated in accordance with the first or second paragraph of section 4.0.2.

O.C. 168-2022, s. 2.