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 Disposition versions

2022-03-31

4. The annual royalty payable by the holder of a supply guarantee for a harvest year is calculated using the following formula:

J = I × (18% A), where

(1)  “J” is the annual royalty payable for the harvest year in accordance with the volume of timber specified in the holder’s supply guarantee;

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

(3)  “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.

O.C. 167-2013, s. 4; O.C. 725-2016, s. 3; O.C. 168-2022, s. 2.

2016-09-01

4. If the volume of timber billed to a guarantee holder during the reference period is less 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 = Σe2 {(VBGe3) [18% (VMTBSPFe4 / VBTFe5)]}

RAAR1F6 = Σe7 {(VBGe3 - VBRe18) [18% (VMTBSPFe4 / VBTFe5)]}

RA1F9 = 50% RAAR1F6

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:

RA1F9 = 50% RAVBG1 50%

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

2 the sum of the operation performed for each annual royalty for the species or group of species concerned, as specified in the holder’s timber supply guarantee

3 the volume of the species or group of species concerned, as specified in the holder’s timber supply guarantee

4 the amount calculated on the basis of the total market value of the standing timber related to the volume of timber billed to all the holders during the reference period for the species or group of species concerned

5 the total volume billed to all the holders during the reference period for the species or group of species concerned

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

7 the sum of the operation performed for each annual royalty for the species or group of species concerned, as specified in the holder’s timber supply guarantee after waiver

8 the volume of the species or group of species concerned, as specified in the holder’s timber supply guarantee, 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

9 the annual royalty to be paid on the first billing

The second annual royalty instalment for the species or groups of species specified in the holder’s timber supply guarantee is assessed using the following method:

RAAR2F10 = Σe11 {(VBGe3 - VBRe18 - 50%VBRe212 - VBRe2PAS13) [18% (VMTBSPFe4 / VBTFe5)]}

RA2F14 = RAAR2F10 - RA1F9

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:

RA2F14 = (50% RAVBG1) - RA1F9

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

11 the sum of the operation performed for each annual royalty for the species or group of species concerned, as specified in the holder’s timber supply guarantee after waiver

12 the volume of the species or group of species concerned, as specified in the holder’s timber supply guarantee, 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

13 the volume of the species or group of species concerned, as specified in the holder’s timber supply guarantee, 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

14 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:

RAARA2F15 = RAAR2F10 - Σe11 (VBReA2FPAS16) [18% (VMTBSPFe4 / VBTFe5)]

PRAR17 = Σe11 (VBReA2FPAS16) [18% (VMTBSPFe4 / VBTFe5)]

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:

PRAR17 = (RA1F9 + RA2F14) - (50% RAVBG1)

15 the annual royalty after waiver following the second billing

16 the volume of the species or group of species concerned, as specified in the holder’s timber supply guarantee, under a special development plan, waived by the holder between 16 August and 31 March of the harvest year concerned

17 the reimbursed portion of the annual royalty

O.C. 167-2013, s. 4; O.C. 725-2016, s. 3.

2013-03-28

4. If the volume of timber billed to a guarantee holder during the reference period is less than 10% of the volume of timber specified in the timber supply guarantee, the annual royalty is assessed according to the following method:

1 the sum of the operation between braces for each species or group of species specified in the holder’s timber supply guarantee;
2 the volume of the species or group of species in question, as specified in the holder’s timber supply guarantee;
3 the total market value of the standing timber related to the volume of timber billed to all the holders during the reference period for the species or group of species concerned;
4 the total volume billed to all the holders during the reference period for the species or group of species concerned.

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. 4.