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 2 Disposition versions

2022-03-31

2. The adjusted average market value of standing timber per cubic metre, used to assess the annual royalty payable by the holder of a supply guarantee for a harvest year, is calculated using the following formula:

A = D/E, where

(1)  “A” is the adjusted average market value of standing timber per cubic metre used to calculate the annual royalty;

(2)  “D” is the sum of all products resulting from the operation B × C, performed for each species or group of species on the basis of each different quality, forest tariffing zone and quarter concerned, where

(a)  “B” is the unit rate for the market value of standing timber in harvest year 1 for a species or group of species of a given quality, forest tariffing zone and quarter;

(b)  “C” is the volume of timber billed to a holder for harvest year 2 for that same species or group of species of that same quality, forest tariffing zone and quarter;

(3)  “E” is the volume of timber billed to the holder pursuant to the holder’s supply guarantee for harvest year 2.

Despite the first paragraph, when the volume of timber billed to a holder for harvest year 2 is less than 10% of the volume of timber specified in the holder’s supply guarantee for the harvest year, the adjusted average market value of standing timber per cubic metre is calculated using the following formula:

A = H/I, where

(1)  “A” is the adjusted average market value of standing timber per cubic metre used to calculate the annual royalty;

(2)  “H” is the sum of all products resulting from the operation F × G, performed for each species or group of species specified in the holder’s supply guarantee, where

(a)  “F” is the volume of timber specified in the holder’s supply guarantee for a species or group of species;

(b)  “G” is the adjusted average market value of standing timber per cubic metre for all holders using the unit rates for the market value of standing timber in harvest year 1 and the volume of timber billed for harvest year 2 for the same species or the same group of species;

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

For the purposes of the assessment of the adjusted average market value of standing timber per cubic metre provided for in the first or second paragraph, as the case may be, the volume is calculated using the data available on 31 December following the end of harvest year 2.

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

2016-09-01

2. The timber billed during the reference period is the timber harvested in the last complete harvest year preceding the time at which the annual royalty is assessed.

The annual royalty payable by holders of a timber supply guarantee is assessed in February of each year.

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

2013-03-28

2. The timber billed during the reference period is the timber harvested in the last complete harvest year preceding the time at which the annual royalty is assessed.

The annual royalty payable by holders of a timber supply guarantee is assessed in January of each year.

O.C. 167-2013, s. 2.