Allowable Annual Cut Partitioning Guide

Transcription

1 FOREST TENURES BRANCH Allowable Annual Cut Partitioning Guide July 15, 2011 Version 2.0 Ministry of Forests, Lands and Natural Resource Operations

2 Disclaimer This document contains material to assist with the administration of agreements entered into under the Forest Act. This document contains both a summary of the legal requirements and advice/suggestions from the non-legal realm. The latter are not legal requirements that you must follow, nor are they government policy. Warranty While every effort has been made to ensure the accuracy of the information herein, no warranties of any kind are made as to the precision or longevity of the contents. Readers are advised to refer to the wording of the legislation and regulations themselves, and obtain legal advice from their own sources. This information is provided as a public service by the Ministry of Forests, Lands and Natural Resource Operations. This document and all of the information it contains are provided "as is" without warranty of any kind, whether express or implied. All implied warranties, including, without limitation, implied warranties of merchantability, fitness for a particular purpose, and non-infringement, are hereby expressly disclaimed. Limitation of Liabilities Under no circumstances will the Government of British Columbia be liable to any person or business entity for any direct, indirect, special, incidental, consequential, or other damages based on any use of this information or any other document or material to which this document is linked, including, without limitation, any lost profits, business interruption, or loss of programs or information, even if the Government of British Columbia has been specifically advised of the possibility of such damages. Copyright 2011, Province of British Columbia The following policy governs the use of this document and all supporting print, audio and visual files. All rights reserved This material is owned by the Government of British Columbia and protected by copyright law. It may not be reproduced or redistributed without the prior written permission of the Province of British Columbia. For requests relating to the reproduction of provincial legislation, permission is subject to the conditions outlined at Permission To request permission to reproduce all or part of the material in this document, please complete the Copyright Permission Request form at Copyright Questions or Concerns? Please contact the Intellectual Property Program by: ipp@mail.qp.gov.bc.ca or fax: (250) Document Change Control Manual Version Date of Issue Brief Description of Change 1.0 March 1, 2011 Draft For Review 2.0 Final Version Posted to FTB Webpage Questions, suggestions for new content, or corrections should be directed to: Michael Leeson, RPF, Timber Tenures Forester Forest Tenures Branch, Ministry of Forests, Lands and Natural Resource Operations Michael.Leeson@gov.bc.ca

3 AAC Partitioning and the Use of Partition Orders Overview Define AAC partition In determining an allowable annual cut (AAC) for a timber supply area (TSA) or tree farm licence (TFL) area, the chief forester may specify a portion of the AAC that is attributable to certain timber types, species, etc. (AAC partition) section 8(5) of the Forest Act. Preferred timber Historically, AAC partitions were used primarily to identify and delineate problem or marginal timber. Under the new AAC Partitioning framework, the chief forester will focus on AAC partitions that delineate preferred timber such as coastal cedar or species other than pine in interior areas. Preferred timber is typically of a higher value and/or in a more limited supply and can be at greater risk of over-harvesting. The AAC partition will therefore identify the upper volume limit of preferred timber that the chief forester considers is available for harvesting. Implementing the partition - Preventing over-harvesting An AAC partition identifies the volume available from a timber type, etc., but cannot formally regulate the harvest of timber from that type, etc. Also licence commitments and cut control rules can be used to regulate overall harvest rates, but cannot set specific limits for timber harvest specified within an AAC partition. To remedy this disconnect the Forest Act now provides the Minister with the authority to issue partition orders that limit the amount of timber that can be harvested from a partition, if it proves necessary to ensure that the recommended AAC partition harvest levels are adhered to. Partition order ensures proportional share of preferred timber A partition order can have a term of up to five years and sets a limit on the harvested volume of specified timber during that term for each forest licence in a TSA, or for the TFL and each forest licence operating within the TFL area. The harvested volume limits are calculated equitably and ensure that each licence holder receives a share of the preferred timber proportional to the licence s share of the TSA/TFL area AAC. Licence holders have a right to harvest all of the preferred timber up to the limit specified in the partition order. A penalty is charged if the harvested volume exceeds the limit during the term of the partition order. 1 July 15,

4 Managing the remainder of the AAC partition Partition order limits are not required for exempted licences or non eligible forms of agreement (agreements other than forest licences or tree farm licences). The applicable Ministry will be required to administer the remaining portion of the preferred partition for these forms of agreement. 2 July 15,

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6 Table of Contents Table of Contents AAC Partitioning and the Use of Partition Orders Synopsis... 1 Table of Contents... 3 Part 1 Introduction Partitions in an AAC Determination Implementation of AAC Partitions Ensuring a Proportional Share of Preferred Timber Partition Order is a Different Approach Licences Subject to a Partition Order Partition Order Content Relationship to Other AAC Administration Cut Control Apportionment Licence commitments Applicable Legislation Roles and Responsibilities Partition Order Overview Part 2 Obtaining a Partition Order Process of Obtaining a Partition Order Assess the Need for an Order Partition Order Decision Package for a TSA Which Timber Needs Harvest Limits? (TSA) Identify the Licences to Include (TSA) Calculate the Harvested Volume Limit (TSA) Decision Briefing Note (TSA) Draft Partition Order (TSA) Partition Order Decision Package for a TFL Which Timber Needs Harvest Limits? (TFL) Identify the Licences to Include (TFL) Calculate the Harvested Volume Limit (TFL) Decision Briefing Note (TFL) Draft Partition Order (TFL) Seek an Order from the Minister Notify Ministry Staff and Holders of Licences Part 3 Administering an AAC Partition Order July 15,

7 Table of Contents 3.1 Process of Administering a Partition Order AAC Partition Statements Increase or Waive the Harvested Volume Limit Consolidations, Subdivisions and Replacements Determine Compliance with Harvested Volume Limits Penalties Is There an Ongoing Need for Harvest Limits? Part 4 Questions and Answers General Questions Special Circumstances Part 5 Glossary Abbreviations, Acronyms and Initialisms Terms Used in This Guide List of Figures Figure 1 AAC Partitioning / Partition Order Illustration... 8 Figure 2 Examples: AAC Partition vs. Partition Order... 9 Figure 3 - Example of licence-specific limits in a partition order Figure 4 - Overview of Partition Order Process Figure 5 - Obtaining a Partition Order Figure 6 - Administering a Partition Order July 15,

8 Introduction Partitions in an AAC Determination Part 1 Introduction Refer to Part 5 Glossary for definitions and abbreviations 1.1 Partitions in an AAC Determination The chief forester has the authority under section 8(5) of the Forest Act to specify certain portions of the allowable annual cut (AAC) that are attributable to one or more types of timber, types of terrain or areas located within a timber supply area (TSA) or tree farm licence (TFL). These portions of the AAC are generally referred to as AAC partitions. Typically, an AAC partition is specified when there is a need for the special management and/or the monitoring of a certain portion of the management unit s timber supply. In the past, many AAC partitions were specified for problem types or low-value timber where a demonstrated use by licence holders was necessary to justify the continued contribution of the partition to the management unit AAC. In the future, the use of AAC partitions will be expanded to include partitions that specifically target preferred timber usually high value species that are in limited supply. These high value/preferred timber AAC partitions are the focus of this guidebook, and reflect the new AAC Partitioning legislation and regulation. 1.2 Implementation of AAC Partitions An AAC partition as specified in a chief forester s AAC determination is simply a statement that a designated portion of the AAC is attributable to a particular type of timber, type of terrain and/or area (Forest Act - Section 8). The AAC partition in itself does not carry any requirement for or limitation on, harvesting. However, in an AAC determination, the chief forester will give specific reasons why an AAC partition was created and may indicate his/her expectations on how the harvest of the partition should be implemented. Historically, AAC partitions were primarily specified for problem or low-value timber. In order to manage and encourage the harvest of these partitions the following strategies would be applied: o Licence holders and BC Timber Sales could voluntarily direct their operations consistent with the AAC partition. o The minister could invite applications for forest licences and other forms of agreement specifically restricted harvesting to timber associated with the problem AAC partition. 6 July 15,

9 Introduction Ensuring a Proportional Share of Preferred Timber o If partition harvest levels were less than the Chief Forester anticipated, then a subsequent AAC determination could result in a reduction in the management unit AAC. This somewhat reactive approach to the management of AAC was sufficient for lower quality or problem partitions, but was not viewed as an effective tool for the sustainable management of preferred or high value. Further complicating this scenario are poor economic conditions that tend to shift harvesting operations into higher quality/value stands. Under these circumstances high value stands could be overharvested thereby reducing future economically viable harvesting opportunities. AAC partitioning legislation brought into force in 2011 provides the means to implement an AAC partition attributable to the preferred timber, and allows the minister to order a limit on the harvest of certain timber if necessary to implement the AAC partition through the use of a partition order. 1.3 Ensuring a Proportional Share of Preferred Timber Once the Minister determines that a Partition Order is required for a preferred partition, the partition order s harvested volume limits are calculated to ensure that each licence holder receives a fair share of the preferred timber proportional to the licence s share of the overall TSA/TFL area AAC. Figure 1 on page 8 illustrates how a partition order is used to implement an AAC partition. In this illustration, the chief forester has determined a TSA AAC of 800,000 m³/yr, starting in As part of the determination, the chief forester specified that 200,000 m³/yr of the AAC was attributable to cedar which is the preferred (i.e. high value) timber in that TSA. Based on actual and anticipated harvest information, the minister then determines that a five-year partition order is necessary to implement the chief forester s 200,000 m³/yr cedar partition. The minister defers the start of the partition order s term until the start of 2012 in order to provide licence holders sufficient time to redirect their harvesting operations. This 200,000 m³/yr AAC partition will provide 1,000,000 m³ of cedar during the 5 year term of the partition order. Individual licence harvest volume limits will be calculated according to the AAC Partition Regulation, and results in each forest licence receiving rights to a volume of cedar proportional to the forest licence s share of the overall TSA AAC. For example, Forest Licence #1 has 50% of the TSA s AAC and so receives access to 50% of the cedar available during the term of the partition order. Overall, the three forest licences specified in this partition order hold rights to 75% of the TSA AAC and therefore receive rights to 75% of the available cedar volume. The remaining 25% of available cedar will be managed by the applicable ministry under BC Timber Sales and other licences. 7 July 15,

10 Introduction Ensuring a Proportional Share of Preferred Timber Figure 1 AAC Partitioning / Partition Order Illustration Partition Order Term: 5 years starting Jan 1, 2012 AAC Partition: 200,000 m³/yr cedar Harvested Volume Limits: FL#1 = 500,000 m³ cedar FL#2 = 100,000 m³ cedar FL#3 = 150,000 m³ cedar 8 July 15,

11 Introduction Partition Orders are a New Approach 1.4 Partition Orders are a New Approach It should be noted that the establishment of harvest limits via a Minister s partition order will usually only be required if a preferred/high quality AAC partition is at risk of being overharvested (although there is no limitation on using partition orders for problem types). Figure 2 illustrates this principle. AAC Partition specifies a portion of the AAC attributable to one or more types or areas of timber. Problem Type(s) Preferred Timber Nonproblem Type(s) TSA or TFL AAC Partition Order establishes a harvested volume limit if it is necessary to implement the AAC partition Other Timber TSA or TFL AAC Figure 2 Examples: AAC Partition vs. Partition Order Partition orders are not implemented on a TSA or TFL wide basis. When a partition order is necessary, it only imposes limits on forest licences or TFLs. In some cases certain forest licences are exempted. (See section Licences Subject to a Partition Order). The limit on a licence s harvested volume of preferred timber is proportional to that licence s share of the TSA or TFL AAC. Figure 3 illustrates an example of a partition order that sets licence-specific harvest limits for a hypothetical cedar AAC partition. (See and for details about harvested volume limit calculations) 9 July 15,

12 Introduction Licences Subject to a Partition Order Figure 3 - Example of licence-specific limits in a partition order Complying with a partition order is not discretionary. If a harvested volume limit is specified for a licence then, subject to an increase or waiver (See 3.3), the holder of that licence must ensure that the total harvested volume does not exceed the harvested volume limit over the term of the partition order. [FA 75.02(7)] Monetary penalties are applied when the harvested volume limit is exceeded. These penalties are intended to be large enough to discourage the harvesting of more than a licence s share of the preferred timber. (See 3.6) 1.5 Licences Subject to a Partition Order Forest licences and tree farm licences are the only forms of agreement that are subject to the harvested volume limits as specified in a partition order. In order to be included in a partition order a forest licence or tree farm licence would need to meet the following criteria: The licence is located within a TSA or TFL where a chief forester s AAC partition has been specified in the current AAC determination. (see AAC partition definition), The Minister would need to be of the opinion that the preferred partition is at risk of overharvest and requires a harvest volume limit to be designated [FA75.02(2)&(3)], and If a forest licence, an AAC greater than 10,000 m³/yr and does not qualify for other exempted licence conditions including; a non-replaceable forest licence (NRFL) that has five years or less years left in its term, or an NRFL that is already restricted to a defined type of timber or area. (See exempted licence definition). 10 July 15,

13 Introduction Partition Order Content 1.6 Partition Order Content A partition order must specify: o a term not exceeding 5 years, o the allowable annual cut partition being specified in the Partition Order, and o the harvested volume limit that each licence holder cannot exceed during the term of the order. [FA75.02(5)] If the partition order relates to a TSA, the order must specify a harvested volume limit for each forest licence in the TSA (except for any exempted licences). The harvested volume limit must be in respect to one or more of the following: o a type of timber or terrain in parts of Crown land within the timber supply area; o different areas of Crown land within the timber supply area. [FA75.02(2)] If the partition order relates to a TFL, the order must specify a harvested volume limit for the TFL and for each forest licence in the TFL (with the exception of any exempted licences). The harvested volume limit for the TFL must be in respect to one or more of the following: o a type of timber or terrain in parts of Crown land within the tree farm licence area; o different areas of Crown land within the tree farm licence area; o a type of timber or terrain in different parts of private land within the tree farm licence area. The harvested volume limit for each forest licence in the TFL must be in respect to one or more of the following: o a type of timber or terrain in parts of Crown land within the tree farm licence area; o different areas of Crown land within the tree farm licence area; [FA75.02(3)] See Part 2 for details on drafting a partition order. 11 July 15,

14 Introduction Relationship to Other AAC Administration 1.7 Relationship to Other AAC Administration Cut Control The administration of a partition order is different from cut control. Because of these differences, cut control statements cannot be used to track performance under a partition order. Differences between a Partition Order and traditional cut control are as follows: Cut Control Cut control rules apply to all licences that provide for an AAC within a management unit. Cut control rules apply continuously. The start and length of a cut control period can vary by licence according to licence-specific parameters. Cut control limits and the method of calculating volumes charged to cut control can vary based on licence provisions and license parameters. Partition Order A partition order only affects certain forest licences and tree farm licences within a management unit. A partition order is only imposed as required and has a term of 5 years or less. The term of a partition order covers all licences specified in the order. The method of calculating a partition order s harvested volume limits and volumes charged are the same for all licences Apportionment High Value Timber Partitions: A partition order has no direct role or impact on the apportionment process. In general the minister should not have to consider existing partition orders when making apportionment decisions. Low Value/Problem Timber Partitions: An AAC partition specified by a chief forester for low-value or problem timber might be a factor that the minister considers when making an apportionment decision (e.g. opportunity wood might be apportioned to a particular form of agreement), but otherwise there is no linkage between an AAC partition and apportionment Licence commitments Partitioning does not change licence specific volume commitments. Proportionate reduction under section 63 of the Forest Act can reduce the AACs of forest licences but 12 July 15,

15 Introduction Applicable Legislation only when there has been an earlier reduction of TSA AAC by the chief forester. A partition order or a licence holder s performance in complying with the limits in the order has no affect on the TSA AAC or licence AAC, and has no role in proportionate reductions. 1.8 Applicable Legislation The following Forest Act provisions enable AAC partitioning: Section 8 requires the chief forester to periodically determine the AAC for TSAs and TFLs. Section 8 (5) allows the chief forester to specify that portions of the AAC are attributable to types or areas (AAC partition). Division Allowable Annual Cut Partition (sections ) authorize partition orders by the minister and establishes rules for when and how partition orders can be used. Division 3.01 was added to the Forest Act by Bill Forest and Range Statutes Amendment Act. These provisions were brought into force on February 18, Allowable Annual Cut Partition Regulation contains details related to partition orders and was brought into force on February 18, Section 75.01(2) (c), in the definition of timber volumes, refers to a regulation made under section 75.1 (3) (b) or (2). There are no applicable regulations currently in force. 1.9 Roles and Responsibilities Forest Tenures Branch: is responsible for developing this guide and providing any updates required to address future changes to legislation, policy and procedures regarding AAC partitioning. Forest Analysis and Inventory Branch: identifies the potential need for AAC partitions, where the use of a partition order is anticipated, and recommends to the chief forester partition wording that will facilitate use of partition orders. Forest Regions: The regional executive director submits a briefing note intended for signature by the Minister (MFML) recommending a partition order. For TFLs or TSAs that span more than one forest district, regional staff should compile information and/or coordinate district involvement in the assessment of the need for a partition order. The regional executive director is responsible under section 75.02(6) for serving a copy of a partition order on each holder of each licence specified in the order. Forest Districts: Will normally be the office which identifies concerns about over-harvesting of a portion of the timber supply and develops the case for a partition order. 13 July 15,

16 Introduction Partition Order Overview 1.10 Partition Order Overview Figure 4 - Overview of Partition Order Process 14 July 15,

17 Obtaining a Partition Order Process for Obtaining a Partition Order Part 2 Obtaining a Partition Order Refer to Part 5 Glossary for definitions and abbreviations 2.1 Process for Obtaining a Partition Order Figure 5 - Obtaining a Partition Order 15 July 15,

18 Obtaining a Partition Order Assess the Need for an Order 2.2 Assess the Need for an Order Triggering a Partition Order The need for a partition order will usually arise out of concerns that a portion of the timber supply profile is at risk of being over-harvested. These concerns may lead the chief forester to specify a defined AAC partition in an AAC determination, and include specific reasons for the partition within the AAC determination rationale. District or region staff can then use the high value/limited supply AAC partition as the trigger for a more comprehensive review in order to determine if there is an actual need for a partition order. The Minister cannot issue a partition order until the Chief Forester clearly identifies an AAC partition in an AAC determination. If overharvesting concerns are identified by ministry, industry or the public these concerns should be communicated to Forest Analysis and Inventory Branch for the chief forester s consideration in future AAC determinations. Information Requirements: If a relevant AAC partition exists, ministry staff from the district and/or region should compile the following information: o Review the chief forester s AAC determination rationale that specifies the applicable AAC partition. Identify the applicable language that relates to the partition, and note the timelines for the next AAC determination. o Identify those licences that are mandatory to be included in the proposed partition order (see section 1.5). o For the TSA or TFL as a whole, review a recent period of time (i.e. 2 to 5 years) and: Identify the total harvested volume of the timber applicable to the AAC partition (preferred timber such as Cedar, non-pine, etc.) and the average annual harvested volume of the preferred timber for the period being examined. Identify the amount by which the average annual harvested volume of preferred timber exceeds the volume specified in the AAC partition, and if it does, express this amount as both a volume and as a percentage of the AAC partition. o For each licence included in the proposed partition order: the licence s share of the AAC partition is: the volume of preferred timber harvested under the licence during the selected time period. the amount by which the average annual volume of partition timber harvested under the licence exceeds the licence share of the AAC partition, if it does, expressed as both a volume and percentage of the licence share of AAC partition. o A summary of any related communications with the holders of licences (BCTS should be included in MO related discussion) that can be included in the proposed partition order. 16 July 15,

19 Obtaining a Partition Order Assess the Need for an Order Preliminary Assessment Prior to the development of a partition order decision package for the minister, the district manager and/or regional executive director should determine if there is a strong case for a partition order by considering the following: o the reasons for the AAC partition(s) as defined in the chief forester s AAC Rationale, o the amount and magnitude of any previous over-harvesting of the now partitioned timber (both TSA wide and licence specific), o the potential consequences if the over-harvesting trend continues in the partition, o the licensee s rationale for the recent harvest history and related comments, o concerns and comments of other partition users (i.e. BCTS, etc.) o anticipated effectiveness if partition order used to manage harvest in the AAC partition. When assessing the need for a partition order, the term of the proposed partition order should be considered. Some (but not all) Reasons for Not Proceeding: 1) Harvest limits would not be effective with a low quality AAC partition AAC Partition Orders as referenced in this Guidebook are generally intended for high value/limited quantity partitions only. The rationale for this statement is that there would likely be no reason to issue a Partition Order for low quality partitions, since the primary purpose of a Partition Order is to restrict harvesting in higher value/limited supply stands. 2) There is no partition for high value/limited quantity partitions specified by the Chief Forester in an AAC determination. 3) Low risk of significant over-harvesting. Concerns of over-harvesting might not be supported by evidence from recent harvest history. This will need to be considered carefully as changes in harvesting activities could be linked to poor economic conditions, preference for other timber, etc. That said, recent harvest information may not be reflective of harvest activity in the partition during more average or better market conditions. Reasons to Proceed with the Issuance of a Partition Order: 1) Ongoing over-harvesting At least one of the licences has been harvesting more than their licence s share of the proposed or existing AAC partition, and there are clear indications that the overharvesting will continue. (The partition order would have no affect on the licences that were continuing to conform to the intent of the Chief Forester s AAC partition, but these licences would still be subject to any limits specified in the Partition Order.) 2) Urgent need to prevent over-harvesting Strong indications that significant over-harvesting could occur in the future and result in 17 July 15,

20 Obtaining a Partition Order Partition Order Decision Package for a Timber Supply Area significantly adverse consequences that may warrant the imposition of harvested volume limits. 3) Limits are necessary due to the nature of the AAC partition The nature of the AAC partition and the circumstances in the TSA or TFL may be such that the district manager and regional executive director believes that a partition order s limits on harvesting is the only mechanism that will ensure that the attribution specified in the partition is carried out. 2.3 Partition Order Decision Package for a Timber Supply Area Which Timber Needs Harvest Limits? (TSA) In a TSA, a partition order s limits on harvested volume must be in respect of one or more of the following: a type of timber or terrain in parts of Crown land within the timber supply area; different areas of Crown land within the timber supply area. [Forest Act s.75.02(2)] The partition order must relate to a defined AAC partition as specified by the chief forester in an existing AAC determination made under section 8(5) of the Forest Act. Also, the partition order must specify timber in such a way that the timber volumes can be tracked using existing systems such as the Harvest Billing System (HBS). Examples include cedar or species other than pine. Please contact Forest Tenures Branch if the proposed partition order relates to an AAC partition attributable to anything other than a one or more species (i.e. an area, etc.). An AAC partition for an area or a forest type could have implementation impacts on a partition order due primarily to the ability to accurately track partition volumes. All related issues must be resolved prior to proceeding with the partition order request. It is important to emphasize that the draft partition order must be consistent with the Chief Forester s partition specifications. Please contact Forest Analysis and Inventory Branch if there are any questions regarding the timber intended for inclusion in a partition and therefore subject to a partition order s harvest limitations Identify those Licences to Include in the Partition Order (TSA) All forest licences in the TSA must be included in the proposed partition order unless the licence is defined as an exempted licence under the Act or Regulation. The following is a 18 July 15,

21 Obtaining a Partition Order Partition Order Decision Package for a Timber Supply Area consolidated version of the definition of exempted licence (please refer to the applicable sections of the Act and Regulation for a full description). For the purposes of the Forest Act Part 4, Division 3.01 Allowable Annual Cut Partition, an exempted licence is a forest licence that: (a) specifies an allowable annual cut that is less than 10,001 m³ a year, or (b) is a non-replaceable forest licence that is in a timber supply area or tree farm licence area to which a minister s order applies and the licence meets one or more of the following conditions: (i) (ii) there is not more than 5 years remaining in the term of the licence on the date the minister s order is made; the licence restricts timber harvesting to one or more of the following, as applicable: (A) a type of timber or terrain in a part of Crown land within the timber supply area or tree farm licence area; (B) an area of Crown land within the timber supply area or tree farm licence area; (C) a type of timber or terrain in a part of private land within the tree farm licence area. [FA 75.01(1)], [AACPR 2] & [AACPR 3] Calculate the Harvested Volume Limit (TSA) For each forest licence in the proposed partition order, calculate the harvested volume limit according to the following formula from section 5 of the Allowable Annual Cut Partition Regulation: ( ) ( ) ( ) ( ) Where HVL is the harvested volume limit for the forest licence AAC of FL is the allowable annual cut authorized in the forest licence AAC of TSA is the allowable annual cut determined under section 8(1) of the Forest Act for the timber supply area AAC partition is the allowable annual cut partition [see in this guide] # of years of minister s order is the term of the minister s order, expressed as the number of years for that order. 19 July 15,

22 Obtaining a Partition Order Partition Order Decision Package for a Timber Supply Area Decision Briefing Note (TSA) The decision briefing note intended for Ministerial approval should include: Background information from the TSA s current AAC determination including AAC partition(s) as specified by the chief forester and any rationale for the establishment of the AAC partition(s) as found in the AAC Rationale. The main reasons why a partition order is required as found in the district/regional preliminary assessment of the situation (see 2.2 Assess the Need for an Order). The proposed term (not to exceed 5 years) and the reasons/rationale for the recommended term, including the proposed partition order start date (either the date of the order or a future date such as January 1, etc.) A summary of the input received from the holders of licences that will be affected by the partition order. Input and comments received from other partition users (i.e. BCTS, etc.) Reference to the draft partition order which contains the harvested volume limits as calculated using the formula defined in the Allowable Annual Cut Regulation. A specific and detailed recommendation from the Regional executive director Draft Partition Order (TSA) Using the template on the following page, draft a partition order that specifies: a term not exceeding 5 years, the allowable annual cut partition relating to the order, and the harvested volume limit that each licence holder is restricted to (cannot exceed) during the term of the order. [Forest Act s.75.02(5)] 20 July 15,

23 Obtaining a Partition Order Partition Order Decision Package for a Timber Supply Area ORDER OF THE MINISTER OF FORESTS, LANDS AND NATURAL RESOURCE OPERATIONS (section (1) of the Forest Act) Ministerial Order Number (1) [Specify unique number with TSA identifier] I, XXXXX, Minister of Forests, Lands and Natural Resource Operations, order that: 1. In this Order: (a) (b) (c) words and phrases have the same meaning as in the Forest Act; "Schedule" means the schedule attached to this Order; AAC partition means the allowable annual cut attributed to [specify nature of the partition (e.g. species of timber)] by the chief forester under section 8 (5) of the Forest Act on [date] for the [specify] Timber Supply Area. 2. To ensure the attribution specified in the AAC partition is carried out, for the period starting [use the date of this order or specify a future date] and ending on [specify date no later than 5 years from date of the order], the limit on the harvested volume under a forest licence listed in column 1 of the Schedule is specified in column 2 of the Schedule opposite that licence. Minister of Forests, Lands and Natural Resource Operations Date [Separate page] SCHEDULE TO ORDER NUMBER (1) [#] Column 1 Forest Licence Column 2 Harvested Volume Limit (cubic metres of [specify nature of partition]) A1[specify number] A1[specify number] A1[specify number] A1[specify number] [specify volume limit] [specify volume limit] [specify volume limit] [specify volume limit] 21 July 15,

24 Obtaining a Partition Order Partition Order Decision Package for a TFL 2.4 Partition Order Decision Package for a TFL Which Timber Needs Harvest Limits? (TFL) If an AAC partition has been specified for a TFL area, the partition order s limit on harvested volume for the TFL must be in respect of one or more of the following: a type of timber or terrain in parts of Crown land within the tree farm licence area; different areas of Crown land within the tree farm licence area; a type of timber or terrain in different parts of private land within the tree farm licence area. The limit on harvested volume for each forest licence in the TFL area must be in respect of one or more of the following: a type of timber or terrain in parts of Crown land within the TFL area; different areas of Crown land within the TFL licence area; [Forest Act s.75.02(3)] The partition order must relate to a defined AAC partition that was specified by the chief forester in an AAC determination made under section 8(5) of the Forest Act. Also, the partition order must specify timber in such a way that the timber volumes can be tracked using existing systems such as the Harvest Billing System (HBS). Examples include cedar or species other than pine. Please contact Forest Tenures Branch if the proposed partition order relates to an AAC partition attributable to anything other than a one or more species (i.e. an area, etc.). An AAC partition for an area or a forest type could have implementation impacts on a partition order due primarily to the ability to accurately track partition volumes. All related issues must be resolved prior to proceeding with the partition order request. It is important to emphasize that the draft partition order must be consistent with the Chief Forester s partition specifications. Please contact Forest Analysis and Inventory Branch if there are any questions regarding the timber intended for inclusion in a partition and therefore subject to a partition orders harvest limitations. 22 July 15,

25 Obtaining a Partition Order Partition Order Decision Package for a TFL Identify the Licences to Include In a Partition Order (TFL) The tree farm licence and those forest licences within the TFL must be included in the proposed partition order unless the licence is considered an exempted licence. For convenience, here is a consolidated version of the definition of exempted licence. For the purposes of the Forest Act Part 4, Division 3.01 Allowable Annual Cut Partition, an exempted licence is a forest licence that: (a) specifies an allowable annual cut that is less than 10,001 m³ a year, or (b) is a non-replaceable forest licence that is in a timber supply area or tree farm licence area to which a minister s order applies and the licence meets one or more of the following conditions: (i) there is not more than 5 years remaining in the term of the licence on the date the minister s order is made; (ii) the licence restricts timber harvesting to one or more of the following, as applicable: (A) a type of timber or terrain in a part of Crown land within the timber supply area or tree farm licence area; (B) an area of Crown land within the timber supply area or tree farm licence area; (C) a type of timber or terrain in a part of private land within the tree farm licence area. [Forest Act s.75.01(1)], [AACPR 2] & [AACPR 3] Calculate the Harvested Volume Limit (TFL) For the TFL and each forest licence in the proposed partition order, calculate the harvested volume limit according to the formula from section 6 of the Allowable Annual Cut Partition Regulation: ( ) ( ) ( ) ( ) Where HVL is the harvested volume limit for the TFL or the forest licence as applicable AAC of TFL is the allowable annual cut available to the holder of the tree farm licence AAC of FL is the allowable annual cut authorized in the forest licence AAC of TFL area is the allowable annual cut determined under section 8(1) of the Forest Act for the tree farm licence area AAC partition is the allowable annual cut partition [see in this guide] # of years of minister s order is the term of the minister s order, expressed as the number of years for that order. 23 July 15,

26 Obtaining a Partition Order Partition Order Decision Package for a TFL Decision Briefing Note (TFL) The decision briefing note should include: Background information from the current AAC determination for the TFL area including AAC partition(s) as specified by the chief forester and any rationale for the establishment of the AAC partition(s) as found in the AAC Rationale. The main reasons why a partition order is required as found in the district/regional preliminary assessment of the situation (see 2.2 Assess the Need for an Order). The proposed term (not to exceed 5 years) and the reasons/rationale for the recommended term, including the proposed partition order start date (either the date of the order or a future date such as January 1, etc.). A summary of the input received from the holders of licences that will be affected by the partition order. Input and comments received from other partition users (i.e. BCTS, etc.). Reference to the draft partition order which contains the harvested volume limits as calculated to the formula defined in the Allowable Annual Cut Regulation. A specific and detailed recommendation from the Regional executive director Draft Partition Order (TFL) Using the template on the following pages, draft a partition order that specifies: a term not exceeding 5 years, the allowable annual cut partition relating to the order, and the harvested volume limit that each licence holder is restricted to (cannot exceed) during the term of the order. [Forest Act s.75.02(5)] 24 July 15,

27 Obtaining a Partition Order Partition Order Decision Package for a TFL ORDER OF THE MINISTER OF FORESTS, LANDS AND NATURAL RESOURCE OPERATIONS (section (2) of the Forest Act) Ministerial Order Number (1) [Specify unique number with TFL identifier] I, XXXXX, Minister of Forests, Lands and Natural Resource Operations, order that: 1. In this Order: (a) (b) (c) words and phrases have the same meaning as in the Forest Act; "Schedule" means the schedule attached to this Order; AAC partition means the allowable annual cut attributed to [specify nature of the partition (e.g. species of timber)] by the chief forester under section 8 (5) of the Forest Act on [date] for the [specify] timber supply area. 2. To ensure the attribution specified in the AAC partition is carried out, for the period starting [use the date of this order or specify a future date] and ending on [specify date no later than 5 years from date of the order], the limit on the harvested volume under: (a) (b) Tree Farm Licence [specify number], and a forest licence listed in column 1 of the Schedule is specified in column 2 of the Schedule opposite that licence, in respect of the nature of partition specified in column 3 of the Schedule. XXXXX, Minister of Forests, Lands and Natural Resource Operations Date 25 July 15,

28 Obtaining a Partition Order Seeking a Partition Order from the Minister [Separate page] SCHEDULE TO ORDER NUMBER (2) [#] Column 1 Licence Tree Farm Licence [specify number] Forest Licence [specify number] Forest Licence [specify number] Column 2 Harvested Volume Limit (cubic metres) [specify volume limit] [specify volume limit] [specify volume limit] Column 3 Nature of Partition [specify nature of partition such as type of timber on Crown land and/or private land] [specify nature of partition such as type of timber on Crown land] [specify nature of partition such as type of timber on Crown land] 2.5 Seeking a Partition Order from the Minister The MFLNRO regional executive director will first submit the decision package to the MFLNRO Executive (i.e. applicable ADM in MFLNRO). The reviewed package will then be forwarded to the Minister for review and sign-off. 2.6 Notify Ministry Staff and Holders of Licences The Minister s decision and the signed partition order (if approved) will be communicated to the regional executive director by the Minister of Forests, Lands and Natural Resource Operations office. If the minister has signed the partition order, the order will be posted on an applicable government public access website. For each licence specified in the partition order, the regional executive director must formally provide a copy of the order to the holder of the licence. [FA 75.02(6)] The regional executive director should also advise the holder of the licence that: o Section 75.02(7) of the Forest Act requires the holder to ensure that the harvested volume under the licence does not exceed the harvested volume limit specified for that licence in the order, o Section of the Forest Act allows the minister to consider an increase or waiver of the harvested volume limit if the request meets criteria in section and the Allowable Annual Cut Partition Regulation, and o Section of the Forest Act imposes a monetary penalty if the harvested volume limit is exceeded. 26 July 15,

29 Administering an AAC Partition Order Process of Administering a Partition Order Part 3 Administering an AAC Partition Order Refer to Part 5 Glossary for definitions and abbreviations 3.1 Process of Administering a Partition Order Figure 6 - Administering a Partition Order 27 July 15,

30 Administering an AAC Partition Order AAC Partition Statements 3.2 AAC Partition Statements AAC partition statements issued during the term of a partition order will be required to include those timber volumes attributable to a licence for the purpose of determining if the harvested volume complies with the harvested volume limit as specified in the partition order. It is recommended that at least one AAC partition statement be issued to licence holders during the term of a partition order. However, periodic (annual) statements are preferred. This will encourage licence holder compliance with the partition order, and as a mechanism to proactively reduce potential disputes regarding harvest volume information. The workload associated with the issuance of partition statements is not expected to be significant given the limited number of licences anticipated to be associated with partition orders. The frequency of AAC partition statements is not specified in legislation however a statement every 12 months is recommended. Final compliance with a partition order can only be determined after the order has expired. However, determining compliance will rely heavily on the use of those statements issued during the term of the order (see the definition of harvested volume ). For each affected licence an AAC partition statement should be prepared and contain the following: o the Partition Order s number and term (years), o the AAC partition specifically related to the Partition Order, o the licence number, the harvested volume limit as specified in the order and any adjustments due decisions of the minister (see 3.3) or due to licence consolidation, subdivision or replacement. (See 3.4), o the period of time covered by the statement, o the harvested volume attributed to the licence during the period of the statement for the purposes of the partition order, o the total harvested volume to date and the remaining volume left under the harvested volume limit, o the Ministry contact person for questions or concerns about the AAC partition statement. Harvested Volume Attributed to the Licence The AAC partition statement must attribute to the affected licences all the harvested volume of the subject timber, as specified in the partition order that was cut under the licence, and under those road permits associated with the licence. This includes wasted or damaged volumes of the target species. Volumes can be obtained from scale reports or from cruise-based calculations. C ertain volumes attributed by the regional executive director or district manager are also included (see section 75.01(2) (c) of the Forest Act.) If the partition order specifies harvested volume limits in terms of one or more species, the appropriate timber volumes for 28 July 15,

31 Administering an AAC Partition Order Increase or Waive the Harvested Volume Limit the licence during the period of the AAC partition statement can be calculated using the Harvest Billing System. Using the established definitions of harvested volume, timber volumes and the AAC Partition Regulation s downward adjustments, the harvested volume in an AAC partition statement is: o for a Coast licence, all timber volumes for the appropriate licence and species as recorded in the Harvest Billing System, other than grade code Z. o for an Interior licence, all timber volumes for the appropriate licence and species as recorded in the Harvest Billing System as grade codes 1, 2, and 4. If the harvested volume limit is for timber (i.e. forest types, terrain or area), other than timber that is one or more species you will need to seek advice from Forest Tenures Branch and Forest Analysis Branch on how best to track and report this form of partition. Implementation issues regarding AAC partitions should be resolved prior to the partition order request. (See and 2.4.1) Downward adjustments The above description of harvested volume incorporates the downward adjustments referred to in section 75.01(1) and defined in section 4 of the Annual Allowable Cut Partition Regulation. For the purpose of determining the harvested volume, timber volumes for a licence subject to Coast timber grades receive a downward adjustment of 100% of grade code Z listed in the Schedule of Coast Timber Grades to the Scaling Regulation. [FA 75.01(1)] & [AACPR 4] Timber volumes for a licence subject to Interior timber grades receive a downward adjustment of 100% of the grade codes listed in the Schedule of Interior Timber Grades to the Scaling Regulation, other than grade codes 1, 2, and 4. [FA 75.01(1)] & [AACPR 4]. 3.3 Increase or Waive the Harvested Volume Limit Section of the Forest Act gives the minister discretion to increase or waive the harvested volume limit specified for a licence, if the holder of the licence submits a signed request with the specific reasons for the request in accordance with Section 75.03, and if the minister is satisfied that these reasons meet one or more of the following criteria: (a) (b) (c) The increase or waiver is requested by a first nation with respect to a licence entered into with that first nation under section 47.3(1)(a) of the Forest Act, and the minister s order does not meet the objectives contemplated under the agreement between the first nation and the government referred to in that section. It is necessary or desirable for the holder to exceed or be free of the harvested volume limit because the timber is imperilled, as a result of forest health factors, of being significantly reduced in value, or being lost and/or destroyed. Compliance with the minister s order is inconsistent with a notice given by the regional executive director, in accordance with the terms of the licence, restricting the 29 July 15,