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 4.0.12 Disposition versions

2022-03-31

4.0.12. The amount of the reimbursement relating to the cessation of operations at a wood processing plant is calculated using the following formula:

Z = (18% A) × AA, where

(1)  “Z” is the amount of the reimbursement relating to the cessation of activities at a plant;

(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)  “AA” is the sum of the unbilled volumes of timber identified for each region of application of the holder’s timber supply guarantee, calculated in accordance with the third or fourth paragraph.

The unbilled volume of timber identified for a region of application of the timber supply guarantee, required for the calculation provided for in the first paragraph, is the lesser of the maximum volume of timber that may be used for reimbursement for that region of application, calculated in accordance with the third paragraph, and the volume of timber not billed to a holder for that region of application, calculated as provided for in the fourth paragraph.

The maximum volume of timber that may be used for reimbursement for a region of application is calculated using the following formula:

BB = (CC – DD) × (EE/FF), where

(1)  “BB” is the maximum volume of timber that may be used for the reimbursement for a region of application;

(2)  “CC” is the volume of timber specified in the timber supply guarantee of the holder entitled to the reimbursement during the harvest year for a region of application of the holder’s timber supply guarantee;

(3)  “DD” is the volume of timber, covered by a special development plan, which the holder entitled to a reimbursement 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 and the volumes waived by the holder after that time, but not later than 31 March of the harvest year for a region of application;

(4)  “EE” is the volume of timber specified in the timber supply guarantee of a holder that operated the plant that ceased operations in the same region of application as that of the timber supply guarantee of the holder entitled to the reimbursement;

(5)  “FF” is the sum of all the volumes of timber specified in all the timber supply guarantees of all the holders in the same region of application as that of the timber supply guarantee of the holder entitled to the reimbursement.

The volume of timber not billed to a holder for a region of application is calculated using the following formula:

GG = CC – DD – HH – II, where

(1)  “GG” is the volume of timber not billed to the holder during the harvest year for a region of application of the holder’s timber supply guarantee;

(2)  “CC” is the volume of timber specified in the timber supply guarantee of the holder entitled to a reimbursement during the harvest year for a region of application of the holder’s timber supply guarantee;

(3)  “DD” is the volume of timber, covered by a special development plan, which the holder entitled to a reimbursement 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 and the volumes waived by the holder after that time, but not later than 31 March of the harvest year for a region of application of the holder’s timber supply guarantee;

(4)  “HH” is the volume of timber, not covered by a special development plan, which the holder entitled to a reimbursement 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 and the volume waived by the holder after that time, but not later than 15 August of the harvest year for a region of application of the holder’s timber supply guarantee;

(5)  “II” is the volume of timber billed to the holder for the harvest year for a region of application of the holder’s timber supply guarantee.

O.C. 168-2022, s. 2.