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 4.0.6 Disposition versions

2022-03-31

4.0.6. At the end of the harvest year, the holder of a timber supply guarantee is entitled, with respect to the volume of timber covered by a special development plan that the holder waived between 16 August and 31 March of the harvest year, to the reimbursement of a portion of the amounts paid as an annual royalty, calculated using the following formula:

S = (18% A) × T, where

(1)  “S” is the amount of the reimbursement of the annual royalty to which the holder is entitled at the end of the harvest year after waiving a volume of timber covered by a special development plan between 16 August and 31 March in the harvest year;

(2)  “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;

(3)  “T” is the volume of timber, covered by a special development plan, that the holder waived between 16 August and 31 March in the harvest year.

Despite the first paragraph, if the difference between the adjusted annual royalty for the calculation of the second instalment, calculated in accordance with section 4.0.3, and the amount of the reimbursement calculated in accordance with the first paragraph, is less than 50% of the adjusted annual royalty for the calculation of the end‑of‑year reimbursement, calculated in accordance with section 4.0.5, the amount of the reimbursement to which the holder is entitled is calculated using the following formula:

S = (K + O) – (50% U), where

(1)  “S” is the amount of the reimbursement of the annual royalty to which the holder is entitled at the end of the harvest year after waiving a volume of timber covered by a special development plan between 16 August and 31 March in the harvest year;

(2)  “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;

(3)  “O” is the amount payable as the second instalment of the annual royalty, calculated in accordance with the first or second paragraph of section 4.0.4;

(4)  “U” is the adjusted annual royalty for the calculation of the end‑of‑year reimbursement, calculated in accordance with section 4.0.5.

O.C. 168-2022, s. 2.