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 3 Disposition versions

2022-03-31

3. The annual royalty is assessed in the month of February preceding the start of the harvest year using the calculation in section 4 and adjusted thereafter, where applicable, as provided for in sections 4.0.1 to 4.0.14.

O.C. 167-2013, s. 3; O.C. 725-2016, s. 3; O.C. 168-2022, s. 2.

2016-09-01

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 holder’s timber supply guarantee, the first annual royalty instalment is assessed using the following method:

RAVBG1 = VBG2 [18% (VMBSPF3 / VBF4)]

RAAR1F5 = {(VBG2 - VBR16) [18% (VMBSPF3 / VBF4)]}

RA1F7 = 50% RAAR1F5

If, however, the annual royalty after waiver used to determine the first billing is less than 50% of the annual royalty according to the volumes of timber specified in the holder’s timber supply guarantee, the first annual royalty instalment is assessed using the following method:

RA1F7 = 50% RAVBG1 50%

1the annual royalty according to the volume of timber specified in the holder’s timber supply guarantee

2 the volume of timber specified in the holder’s timber supply guarantee

3 the amount calculated on the basis of the market value of the standing timber related to the volume of timber billed to the holder during the reference period

4 the volume of timber billed to the holder during the reference period

5 the annual royalty after waiver used to determine the first billing

6 the volume of timber waived or deemed to have been waived by the holder at the time the sales contract for the standing timber purchased pursuant to the holder’s timber supply guarantee was made

7 the annual royalty to be paid on the first billing

The second annual royalty instalment is assessed using the following method:

RAAR2F8 = {(VBG2 - VBR16 - 50% VBR29 – VBR2PAS10) [18% (VMBSPF3 / VBF4)]}

RA2F11 = RAAR2F8 - RA1F7

If, however, the annual royalty after waiver used to determine the second billing is less than 50% of the annual royalty according to the volumes of timber specified in the holder’s timber supply guarantee, the second annual royalty instalment is assessed using the following method:

RA2F11 = (50% RAVBG1) - RA1F7

8 the annual royalty after waiver used to determine the second billing

9 the volume of timber, not under a special development plan, waived by the holder between the time the sales contract for the standing timber purchased pursuant to the holder’s timber supply guarantee is made and 15 August of the current harvest year

10 the volume of timber, under a special development plan, waived by the holder between the time the sales contract for the standing timber purchased pursuant to the holder’s timber supply guarantee is made and 15 August of the current harvest year

11 the annual royalty to be paid on the second billing

At the end of the harvest year, the holder of a timber supply guarantee is entitled, for the timber under a special development plan waived by the holder between 16 August and 31 March of the harvest year concerned, to be reimbursed for a portion of the annual royalty, assessed using the following method:

RAARA2F12 = RAAR2F8 - (VBRA2FPAS13) [18% (VMBSPF3 / VBF4)]

PRAR14 = (VBRA2FPAS13) [18% (VMBSPF3 / VBF4)]

If, however, the annual royalty after waiver following the second billing is less than 50% of the annual royalty according to the volumes of timber specified in the holder’s timber supply guarantee, the reimbursed portion of the annual royalty is assessed using the following method:

PRAR14 = (RA1F7 + RA2F11) - (50% RAVBG1)

12 the annual royalty after waiver following the second billing

13 the volume of timber, under a special development plan, waived by the holder between 16 August and 31 March of the harvest year concerned

14 the reimbursed portion of the annual royalty

O.C. 167-2013, s. 3; O.C. 725-2016, s. 3.

2013-03-28

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.