Vol. 133, No. 52 — December 25, 1999

Regulations Amending the Yukon Timber Regulations

Statutory Authority

Territorial Lands Act

Sponsoring Department

Department of Indian Affairs and Northern Development

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The federal government, through the Department of Indian Affairs and Northern Development (DIAND), is responsible for administering the Yukon Timber Regulations and the Yukon Forest Protection Regulations pursuant to the Territorial Lands Act. These Regulations govern the cutting, removal and protection of timber on territorial lands administered by the Minister of Indian Affairs and Northern Development (IAND), in the Yukon Territory.

DIAND reviews on an ongoing basis and modernizes regulations and legislation as required. During recent years, in order to respond to immediate and short term requirements and requests from various stakeholders, the Yukon Timber Regulations (YTR) were amended to increase the stumpage fees, introduce a reforestation charge and also include eligibility criteria within the allocation process. Most recently, in October 1996, the then Minister of IAND committed the Department to a review of the stumpage fees aimed at the introduction of a market driven stumpage rate in the Regulations.

This submission proposes a comprehensive set of amendments to the YTR to: respond to issues associated with stumpage fees; modernize various aspects of the Regulations; meet the Government's commitment to carry out sustainable forest management in Yukon; and respond to the Standing Joint Committee for the Scrutiny of Regulations concerning the lack of notice and appeal provisions within these Regulations. The amendments relate mainly to tenure, stumpage, reforestation, enforcement provisions and other forest management aspects. They are required to address the changing priorities of the public, industry and governments to advance technology and resource viability.

The calculation of stumpage fees would be responsive to market influences based on a schedule of dues. More specifically, the new schedule of dues would:

(a) provide a market-driven stumpage rate within the parameters of prescribed dues (dues to be set on a quarterly basis);

(b) provide fair rates for differing grades of wood;

(c) provide for harvesting on a priority basis and harvesting through an open bid system to better manage the resource;

(d) provide a balance between the Crown rent and industry's ability to pay; and

(e) provide fees for processing as a cost of carrying out Crown duties.

Amendments to the Yukon Forest Protection Regulations requested by the Standing Joint Committee for the Scrutiny of Regulations are also being proposed. These amendments provide that, should an emergency situation exist, the occupier of the lands is to be given notice and the opportunity to remedy the situation, prior to the forest officers entering the lands to correct such a situation.

Alternatives

Option 1 — Status quo

Retaining the current Regulations would result in maintaining the non-reactive dues system that either inhibits industrial growth or does not provide fair value to the Crown for a public resource. Presently, dues are fixed and paid on the volume of timber cut. This system is a cause for concern to industry when demand is low (high stumpage rates compared to selling price) and a cause for concern to Government when demand is high (operators can afford to waste part of the harvested timber). The Regulations would remain out of date and would not encourage current modern forest practices used in surrounding jurisdictions.

Under the current Regulations, tenure options are limited. Tenure, which provides for long-term holdings, is the basis for any local value added industrial growth. Industry could use tenure as a guarantee when seeking financing for their operations. Without tenure, industry cannot develop or be sustained. Earlier amendments to the Regulations did not achieve the desired local industrial development.

The current Regulations do not provide for security deposits which would leave the Crown, in some cases, without revenues for the use of a public resource.

The proposed amendments would provide for industrial growth and sustainable logging.

Option 2 — Partial amendments

Amending only the fee schedule, to introduce the market-driven stumpage fee, would leave the administrative and operational amendments for the Yukon Government (YG) to make, once responsibility for the resource is transferred through devolution. This would not address the concerns that have been raised by the Yukon public and other stakeholders affected by the Regulations, such as stability and industrial growth. It would not allow DIAND to modernize the forest management regulatory regime, which is imperative to provide proper management of the forest resources pending devolution to YG and in accordance with Yukon First Nation land claim agreements.

Benefits and Costs

Summary of Benefits

The Department's goals and objectives are to manage Yukon forest resources for the long term social, economic and environmental benefit of Canadians. The proposed amendments reflect sound forest management principles and practices while providing for integrated resource management of a full range of uses and values such as alternate harvesting methods and enhanced reforestation. They respond to the increased interest in commercial logging. The proposed amendments would assist in meeting the federal government's obligations under the Yukon Land Claims Umbrella Final Agreement. They would also facilitate devolution by providing a more effective regime for the YG when it takes on responsibility for the management of the timber resource.

The amendments to the Yukon Forest Protection Regulations would ensure that the permittee is aware of any critical situation on the occupied lands. The amendments would provide for the opportunity to remedy the situation before forest officers enter the lands to take corrective action.

The Regulations apply equally to both gender and do not disadvantage women or men involved in the forest industry.

Stumpage and Reforestation

The amendments would:

— Provide market-driven stumpage fees through prescribed rates and allow the option of using a bidding system in certain circumstances (such as setting priority harvesting areas, salvage operations, specified volumes to increase availability) which would enhance monitoring and ensure appropriate returns to the Crown for the forest resource and minimal waste at mill sites;

— Allow for prescribed costs for reforestation based on a three-year rolling average of unit costs incurred by the reforestation activity, ensuring reforestation costs are appropriate and funds are available for future needs; and

— Improve the tracking and payments of stumpage fees for harvested timber.

Tenure

Industry wants stability and direct industrial growth that could be obtained through longer tenure. The proposed amendments would allow DIAND to enter into various types of timber permits, with various terms, and to enter into improved timber harvesting agreements under civil contract, to achieve industrial growth and improved resource and ecosystem management goals and objectives. The amendments would allow DIAND to execute the permits in a timely manner to cover both volume and area based agreements that were, in the past, exempted from the Regulations. The proposal to use a bid system of timber quota (whereby industry will be invited to submit bids on set volumes of timber/round wood) would also assist in achieving tenure.

Scaling and Grading System

Amendments to include a scaling and grading system, which is supported by industry and environmental groups, would provide a fairer method of determining Crown value of the resource and better tracking of timber cut and revenues due. The intent is to approve all scale sites, which could include a saw mill or a sort yard, that receive Crown wood. Only these sites could receive Crown wood. All wood that is transported would be marked and tracked. Scale sites that receive Crown wood where dues are not paid would not be allowed further supply until the timber permittee with outstanding obligations paid the dues. Inclusion of the new scaling and grading system would show a value for the resource based on product and conform with the British Columbia provincial system which receives most of the Yukon round wood.

Security Deposit

The introduction of the security deposit requirement would provide protection to the Crown from operators who have a history of unfulfilled past obligations. It would ensure the Crown receives the fair return through dues payable on the harvested timber. It would not penalize good operators who do not have outstanding obligations.

Summary of Costs

Although some of the proposed amendments would result in increased costs to industry, these costs are expected to be minimal. Stumpage fees in some cases would represent a higher cost for industry but would be relative to the selling price of timber. In other cases, the stumpage fees could result in a decrease in costs to industry. The proposal for the prescribed base rate fees was developed after reviewing other provincial jurisdictions, such as Alberta and British Columbia A study of the proposed rates showed that they are reasonable and appropriate. DIAND proposed these rates in the draft Stumpage Proposal Framework discussion paper which was developed with and agreed to by industry. The review was released to the public in the early winter 1996.

The proposed security deposit would be refundable once the dues for which it was deposited are complete and in good standing. The scaling and grading requirements are supported by industry and environmental groups. Although all wood would have to be scaled, scaling sites could include a saw mill and a sorting yard at a rail head. This would make it convenient for the operator to deliver the timber close to the harvesting area and reduce transportation costs.

Costs for training departmental and industry staff would be minimal. Monitoring and revenue collection systems are in place at DIAND. Costs are not expected to increase but revenue collection should be more efficient under the proposed amendments. Land Use Officers would also serve as Forest Officers and vice versa.

Consultation

During the summer of 1996, DIAND, as a result of an industry request, began consultation on a proposed market-driven stumpage rate. Regular meetings were held with the Yukon Forest Advisory Committee (YFAC) which includes representatives from DIAND, YG, First Nations, Yukon College, environmental groups, Renewable Resources Councils and industry to develop a reasonable system. YFAC discussed the proposed amendments and the accompanying fee schedule, as well as options to meet the longer term requirements of the industry, the government and other stakeholders.

A workshop was held in Watson Lake in June 1997 and letters of invitation were sent to individuals, forestry operators, mill owners, stakeholders, environmental groups and the support industries operating throughout the Yukon. Invitations were also extended to all First Nations and all of the Renewable Resources Councils as well as the municipal governments, YG, the Chamber of Commerce, the Yukon Conservation Society and Yukon College. Although not all invitees participated in the three day workshop, it was attended by 49 individuals representing most interested groups. The workshop focussed on forestry operating procedures and the proposed amendments. Following this workshop, the proposed amendments were redrafted and a further meeting/workshop was held in Whitehorse on July 28, 1997, which 31 individuals attended. Another meeting was held with YG on August 27, 1997. Various meetings were held with YFAC throughout September and October. During September 1997, DIAND advertised in the local media that the Timber Regulations Revision Package was available at all of DIAND's offices in the Yukon. Forest Resources personnel responded to questions from the media, the general public, various organizations and the industry.

Sawmill owners expressed concern regarding the proposed fee schedule, requesting the inclusion of an incentive for loggers to sell their timber to local mills instead of exporting it to mills outside of the Yukon. DIAND considered this request and determined that it could not be achieved by regulations. As a result, DIAND will consult within each Forest Management Unit on the capacity of local processing and suggest the amount of timber to be processed locally.

Mill owners were also concerned with the $5/m³ reforestation charge on fuel wood areas. They consider this amount too high and see it as an adverse factor on their profits. The amendments would prescribe the reforestation charge each April 1, based on a three-year average cost of reforestation. This amendment would also provide for an incentive to use alternate silviculture systems, which, if used, would reduce the reforestation charge.

Loggers were concerned with the existing provision that 60 percent of the harvested timber must be processed within the Yukon Territory. Some loggers believe that the industry is not viable enough to support milling at this capacity. They would prefer being able to export the logs to British Columbia, for example, where the timber price is much higher, resulting in a better return for the timber. DIAND is proposing to repeal this section and set the amount of timber to be processed locally based on the ability and capacity of local industry to process timber, and also provide for the export of timber at a British Columbia-based market stumpage fee. A reduction in stumpage fees for locally processed timber was considered by DIAND but this would contravene the North American Free Trade Agreement and the Internal Trade Agreement.

Environmentalists were supportive of the proposed amendments which would allow for better enforcement of mitigation measures and demonstrate a commitment to forest management planning. They also strongly supported the inclusion of a security deposit within the Regulations.

YG was generally supportive of the proposed amendments. The schedule is consistent with YG's position to apply market-driven royalties on forest activity in Yukon, but they would like to see further technical and financial analysis completed. They support amendments that allow for greater local control and more responsive management of the timber resource. They are anxious, as future managers of the resource, to be involved in the development of policies that will result from the changes.

Since the end of 1997, DIAND has engaged in subsequent discussions with stakeholders on the development of the amendments that resulted in the current proposal.

In conclusion, the consulted parties and the Yukon public generally support these amendments as a step in the right direction. The amendments reflect a fair compromise that is expected to satisfy all interest groups.

Compliance and Enforcement

The proposed Regulations would provide clearer and more consistent guidance to forest officers responsible for the management of the resource. Industry is prepared for the new scaling and grading systems which include designated sites. Training of departmental staff and industry for the new scaling and grading systems is planned at minimal cost. DIAND is prepared for the monitoring and revenue collection systems required for the new dues. The proposed enforcement provisions are similar to what is contained in the Territorial Land Use Regulations, which are made pursuant to the Territorial Lands Act. Although more inspections would be required for forestry, Land Use Officers and Forest Officers would be authorized and qualified to do either land use or forestry inspections. The tracking of payments for export wood to British Columbia would improve with the combination of the proposed amendments and subsequent inter-agency agreements. Operational procedures would be amended to reflect the regulatory amendments.

Contact

Anne Snider, Chief, Policy Projects, Department of Indian Affairs and Northern Development, Les Terrasses de la Chaudière, 10 Wellington Street, Ottawa, Ontario K1A 0H4, (819) 997-0046 (Telephone), (819) 953-2590 (Facsimile), snidera@inac.gc.ca (Electronic mail).

PROPOSED REGULATORY TEXT

Notice is hereby given, pursuant to section 24 of the Territorial Lands Act, that the Governor in Council, pursuant to section 18 and paragraphs 23(j) and (l) of that Act, proposes to make the annexed Regulations Amending the Yukon Timber Regulations.

Interested persons may make representations to the Minister of Indian Affairs and Northern Development with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice and be addressed to Anne Snider, Chief, Policy Projects, Environment and Renewable Resources Directorate, Department of Indian Affairs and Northern Development, Ottawa, Ontario K1A 0H4.

Ottawa, December 16, 1999

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE YUKON TIMBER REGULATIONS

AMENDMENTS

1. (1) The definition "dues" in section 2 of the Yukon Timber Regulations (see footnote 1) is repealed.

(2) Section 2 of the Regulations is amended by adding the following in alphabetical order:

"grade" means the classification given to timber in accordance with chapter 14 of the Scaling Manual; (classe)

"priority harvest area" means a road right-of-way, quarry site or burn area or an area of infestation or over-maturity in which the forest stand is at least 30% dead or dying by stem count; (zone de récolte prioritaire)

"Yukon Scaling Manual" means the document entitled Yukon Scaling Manual published by the Yukon Forest Resources Branch of the Department of Indian Affairs and Northern Development, as it read on March 31, 1999; (Manuel de mesurage du Yukon)

2. Section 3 of the Regulations is renumbered as subsection 3(1) and is amended by adding the following:

(2) Sections 3.2 to 24 do not apply to a person referred to in section 3.1.

3. Section 3.1 (see footnote 2) of the Regulations is replaced by the following:

3.1 A person with whom the Minister has entered into a long-term timber harvesting agreement pursuant to an authorization by the Governor in Council under section 8 of the Act is exempted from the provisions of section 17 of the Act.

4. The Regulations are amended by adding the following after the heading before section 4:

3.3 A person who wishes to obtain a permit for the cutting of timber on territorial lands shall submit to the Minister an application in the form prescribed by the Minister under section 28 of the Act, together with the applicable fee set out in Schedule 1, that

(a) describes the applicant's knowledge of environmental protection and conservation measures related to local timber harvesting conditions;

(b) describes the applicant's experience in the forest industry;

(c) evidences the applicant's capacity to harvest the amount of timber applied for; and

(d) lists any previous permits held by the applicant.

5. (1) Subsection 4(1)(see footnote 3) of the Regulations is replaced by the following:

4. (1) Subject to subsections (2) and (3) and section 22, the Minister may issue

(a) Class A permits, to cut round wood, in a volume not exceeding 20,000 m³ per permit per year;

(b) Class B permits, to cut round wood, in a volume not exceeding 40,000 m³ per permit over two years;

(c) Class C permits, to cut round wood, in a volume not exceeding 60,000 m³ per permit over three years;

(d) Class D permits, to cut fuel wood or dry round wood, cut to less than 2.5 m in length, in a volume not exceeding 1000 m³ per permit;

(e) Class G permits, to cut round wood, in a volume not exceeding 1000 m³ per permit; and

(f) Class H permits, to cut round wood for personal, non-commercial use, in a volume not exceeding 50 trees per permit.

(1.1) Subject to subsection (3) and section 22, the Minister may by public tender issue to applicants who meet the requirements of paragraphs (2)(a) to (c)

(a) Class E permits, to cut timber in a priority harvest area in a volume not exceeding 20,000 m³ per permit; and

(b) Class F permits, to cut round wood, in a volume not exceeding 20,000 m³ per permit.

(1.2) The upset price on a tender under subsection (1.1) shall not be less than

(a) in respect of a Class E permit, $0.25/m³; and

(b) in respect of a Class F permit, the total of the cost of the layout of the permit area and the stumpage and reforestation charges payable.

(2) The portion of subsection 4(2)(see footnote 4) of the Regulations before paragraph (a) is replaced by the following:

(2) To ensure that forestry practices promoting sustainable development are maintained, permits, other than permits issued under subsection (1.1) or 7(1), shall be issued in priority to applicants who have

(3) Subsection 4(3) (see footnote 5) of the Regulations is replaced by the following:

(3) A permit shall not be issued to an applicant who has contravened these Regulations or the conditions of any previous permit if the contravention has not been remedied.

(4) Section 4 of the Regulations is amended by adding the following after subsection (4):

(5) The Minister shall, within 10 days after deciding to refuse to issue a permit, give notice in writing to the applicant whose application for a permit is refused.

6. Section 5(see footnote 6) of the Regulations is repealed.

7. (1) Subsection 6(1)(see footnote 7) of the Regulations is replaced by the following:

6. (1) Every permittee shall pay dues on all timber cut under a permit in an amount equal to

(a) in respect of a Class E or Class F permit, the amount bid for the permit; and

(b) in respect of any other permit, the sum of the applicable stumpage and reforestation charges set out in Schedule 2.

(1.1) Stumpage and reforestation charges on timber cut shall be calculated as at the earlier of

(a) the day on which the timber report in respect of that timber is received by the Minister, and

(b) the last day of the period within which the timber report in respect of that timber is to be remitted under section 5.3.

(2) Paragraph 6(2)(a)(see footnote 8) of the Regulations is replaced by the following:

(a) at the time of issue of the permit, a deposit in an amount equal to the dues that would be payable on the volume of timber set out in the permit; or

8. The Regulations are amended by adding the following after section 6:

6.1 (1) Subject to subsection (2), round wood values for the calculation of stumpage for each species of coniferous trees shall be equal to the average of the round wood selling prices for that species at Ft. Nelson, Stewart, Smithers and Prince George, in the Province of British Columbia, for the last quarter for which an average has been published under subsection (3).

(2) Where a species of coniferous trees is not sold at Ft. Nelson, Stewart, Smithers or Prince George, the price for like stratum wood at that location shall be used in the calculation of the average round wood selling price.

(3) As soon as practicable after the end of each quarter, the Minister shall publish, in two successive issues of a newspaper published in the Yukon Territory, the average round wood selling prices referred to in subsection (1) for the preceding quarter for each species of timber cut in the Yukon Territory.

(4) For the purposes of this section, "quarter" means a three-month period ending on March 31, June 30, September 30 or December 31.

9. Section 14 of the Regulations is amended by adding the following after subsection (2):

(3) The Minister shall offer for sale by public tender any timber that is left on a permit site after the expiration of the permit.

(4) The Minister may dispose of any timber or round wood that was offered for sale by public tender under subsection (3) and that remains unsold, in accordance with the Surplus Crown Assets Act.

(5) Where timber is sold under subsection (3) or disposed of under subsection (4), the Minister shall

(a) deduct from the proceeds of disposition

(b) pay any balance remaining from the sale or other disposition to the former permittee.

10. The heading(see footnote 9) before section 15 and sections 15 to 19(see footnote 10) of the Regulations are replaced by the following:

Scaling

15. (1) The Minister shall issue a scaling licence to any applicant who meets the requirements for scalers set out in article 15.4.5 of the Yukon Scaling Manual.

(2) A scaling licence is valid for one year after it is issued.

(3) A scaling licence, including one that has been previously renewed, shall be renewed if

(a) the holder of the scaling licence has scaled timber cut under a permit during the preceding year; and

(b) the scaling results did not deviate by more than 3% from the results of any check scales performed by a forest officer in accordance with article 15.6.1 of the Yukon Scaling Manual.

16. (1) Before commencing to operate a scale site to scale timber cut from territorial lands, a scale site operator shall submit to the Minister an application for a scale site authorization, in the form prescribed by the Minister under section 28 of the Act, that

(a) describes the land tenure under which the operator holds the proposed scale site;

(b) sets out the operator's workmen's compensation number;

(c) sets out the operator's federal goods and services tax registration number; and

(d) includes a copy of the scaling licences of all scalers who will be employed at the proposed scale site.

(2) On receipt of an application containing the information referred to in subsection (1), the Minister shall issue a scale site authorization.

(3) The operator of a scale site shall keep records, identified in article 15.8 of the Yukon Scaling Manual, of all timber scaled at the scale site that was cut under a permit or timber harvesting agreement.

(4) The operator of a scale site shall, within 10 days after the end of each month, submit to the Minister the scale reports identified in article 15.8 of the Yukon Scaling Manual, in the form prescribed by the Minister under section 28 of the Act, for all timber cut under permits or timber harvesting agreements that was scaled at that site during that month.

(5) A scale site operator shall retain a record referred to in subsection (3) for a period of one year after the record is made.

Permittees

17. (1) A permittee shall ensure that the timber mark identified in the permit is affixed to logs cut under the permit before they are transported from the permit area.

(2) Every permit shall identify a timber mark and require that all transported logs bear the timber mark in a visible location.

18. A permittee shall ensure that, before it is processed in any manner, all timber cut under the permit

(a) is scaled by a person referred to in section 15, in accordance with the Yukon Scaling Manual, at an authorized scale site; and

(b) is graded in accordance with chapter 14 of the Yukon Scaling Manual.

19. Every permittee shall keep the records identified in article 15.8 of the Yukon Scaling Manual, in the form prescribed by the Minister under section 28 of the Act, indicating the volume of all timber cut under the permit and the manner of its disposition and shall retain those records for a period of one year after the expiration of the permit.

11. (1) Subsection 20(1) (see footnote 11) of the Regulations is replaced by the following:

20. (1) Every permittee shall, on the expiration of the permit, remove or otherwise dispose of

(a) all facilities constructed by the permittee in the permit area;

(b) all equipment brought by the permittee into that area; and

(c) all timber cut under the permit.

(2) The portion of subsection 20(2)(see footnote 12) of the Regulations before paragraph (a) is replaced by the following:

(2) Where a permittee fails to comply with subsection (1), the Minister

(3) Subsections 20(3) to (6)(see footnote 13) of the Regulations are repealed.

12. The Regulations are amended by adding the following after section 21:

Security Deposit

22. (1) Unless an applicant has already posted security in respect of a harvesting operation pursuant to an Act of Parliament or a regulation made thereunder in an amount equal to or greater than the amount required under subsection (2), the Minister shall, before issuing a permit, require security to be posted by the applicant if

(a) the applicant has contravened these Regulations in respect of any previous permit or has failed to comply with the conditions of any previous permit; or

(b) the applicant has not previously held a permit.

(2) The amount of security posted under subsection (1) shall be equal to the amount of dues payable under the permit.

(3) Security posted under subsection (1) shall be in the form of

(a) a promissory note guaranteed by a bank in Canada and payable to the Receiver General;

(b) an irrevocable letter of credit from a bank in Canada;

(c) a certified cheque drawn on a chartered bank in Canada and payable to the Receiver General;

(d) bearer bonds issued or guaranteed by the Government of Canada; or

(e) cash.

(4) On the termination of a permit and after all outstanding dues have been paid and all other obligations under the permit have been fulfilled, the Minister shall return to the permittee any security posted under subsection (1) or any portion thereof remaining after the deduction of any unpaid dues.

Notice

23. (1) Every permittee shall be informed, by a notice in writing sent to the address indicated on the application for the permit, of any decision made or action taken under these Regulations in respect of the permit within 10 days after the decision is made or the action is taken.

(2) For the purposes of section 24, a notice sent under subsection (1) shall be considered to have been received five days after it is sent.

Review Process

24. (1) An applicant for a permit or a permittee may apply to the Minister for

(a) a review of any decision made or any other action taken by a forest officer under these Regulations, within 30 days after receipt of notice of the decision or action; or

(b) where the applicant or permittee is of the opinion that an action should have been taken by a forest officer under these Regulations, a review of whether action should have been taken, within 30 days after the action should have been taken.

(2) An application for a review under subsection (1) shall be made in writing, setting out

(a) the decision or action in respect of which the review is requested; and

(b) the reasons for requesting the review.

(3) On receipt of an application made under subsection (1), the Minister shall

(a) either

(b) advise the applicant in writing of that decision, and the reasons therefor.

(4) The making of an application for a review of a decision or action under subsection (1) does not suspend or otherwise affect the validity of the decision or action.

13. The schedule(see footnote 14) to the Regulations is replaced by the following:

SCHEDULE 1
(Section 3.3)

APPLICATION FEES

Item	Column 1 Type of Permit	Column 2 Fee, per permit ($)
1.	Class A, B, C or G permit:
	(a) under 100 m3	10
	(b) 100 m3 to 1000 m3	50
	(c) over 1000 m3	100
2.	Class D or H permit	10
3.	Class E or F permit	100

SCHEDULE 2
(Subsection 6(1))

DUES

Stumpage

1. The stumpage payable on cut timber is

(a) for Grade 5 or Grade Z coniferous timber, fuel wood, dry round wood of less than 2.5 m length, Christmas trees, transplants, round wood subject to a Class H permit and deciduous timber, the applicable amount set out in column 2 of Table 1; and

(b) for any other Grade 2, 3, 4 or 6 coniferous timber, the amount determined by the formula

A × B × C

where

A is the round wood value for that species, determined under section 6.1 of these Regulations,

B is the percentage applicable to that value set out in column 2 of Table 2, and

C is the percentage applicable to the grade of the wood set out in column 2 of Table 3.

TABLE 1

STUMPAGE FOR MISCELLANEOUS TIMBER

Item	Column 1 Grade	Column 2 Stumpage payable
1.	Grade 5 — Dry or dead lumber reject	$0.25/m3
2.	Grade Z — Firmwood reject	$0.25/m3
3.	Fuel wood and dry round wood less than 2.5 m in length	$0.25/m3
4.	Christmas trees and transplants (maximum 4 m in height)	$0.50/tree
5.	Deciduous timber	$0.50/m3
6.	Round wood subject to a class H permit	$7/tree

TABLE 2

BASE STUMPAGE FOR ROUND WOOD — CONIFEROUS SPECIES

Item	Column 1 Round Wood Value ($/m3)	Column 2 Percentage
1.	less than 50	3%
2.	50 to 59.99	4.5%
3.	60 to 69.99	6%
4.	70 to 79.99	7.5%
5.	80 to 89.99	9%
6.	90 to 99.99	10%
7.	100 to 109.99	11%
8.	110 to 119.99	12%
9.	120 to 129.99	13%
10.	130 to 139.99	14%
11.	140 or more	16% plus 2% for every $10 of round wood value over $140

TABLE 3

STUMPAGE MULTIPLIERS

Item	Column 1 Grade	Column 2 Percentage
1.	Grade 2 — Round wood	100%
2.	Grade 3 — Dead or dry round wood	100%
3.	Grade 4 — Lumber reject	25%
4.	Grade 6 — Undersized logs	50%

Reforestation Charges

2. (1) Subject to subsection (2), the reforestation charges payable on round wood cut are

(a) for timber reported under section 5.3 of the Regulations before January 1, 2002, $5/m³; and

(b) for timber reported under section 5.3 of the Regulations on or after January 1, 2002, the greater of

(2) Where after harvesting the permit area is fully stocked, the reforestation charges payable by a permittee on round wood cut are $1/m³.

COMING INTO FORCE

14. These Regulations come into force on the day on which they are registered.

[52-1-o]

Regulations Amending the Yukon Forest Protection Regulations

Statutory Authority

Territorial Lands Act

Sponsoring Department

Department of Indians Affairs and Northern Development

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see the Regulations Amending the Yukon Timber Regulations.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 18 and paragraphs 23(j) and (l) of the Territorial Lands Act, proposes to make the annexed Regulations Amending the Yukon Forest Protection Regulations.

Any interested person may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must be addressed to Anne Snider, Chief Policy Projects, Environment and Renewable Resources Directorate, Department of Indian Affairs and Northern Development, Ottawa, Ontario, K1A 0H4 and cite the Canada Gazette, Part I, and the date of publication of this notice.

Ottawa, December 16, 1999

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING T00HE YUKON FOREST PROTECTION REGULATIONS

AMENDMENTS

1. Section 14 of the Yukon Forest Protection Regulations(see footnote 15) is replaced by the following:

14. (1) Subject to subsection (2), where any timber or brush, or slash or other debris, located on occupied lands within the forest area is found to be infested with insects or infected with a plant disease to such an extent that the insects or disease are likely to spread, a forest officer may, without the consent of the licensee or lessee of those lands, enter them and take any measures necessary to control or eradicate the insects or disease.

(2) At least 15 days before a forest officer enters occupied lands under subsection (1), the forest supervisor shall give written notice to the licensee or lessee of those lands that, after 15 days from the date of receipt of the notice, a forest officer may enter the lands for the purposes of that subsection.

(3) A notice given under subsection (2) shall

(a) set out the species of insect or plant disease infecting the occupied lands;

(b) set out the measures necessary to be taken to eradicate or control the insects or disease;

(c) advise the licensee or lessee that the licensee or lessee may take the measures referred to in paragraph (b) to avoid the entry of the forest officer onto the occupied lands; and

(d) advise the licensee or lessee of the requirements of subsection (4).

(4) A licensee or lessee who intends to take the measures referred to in paragraph (3)(b) must advise the forest supervisor in writing of that intention and begin to take those measures before the day on which the forest officer is to enter the occupied lands.

(5) A forest officer may, without the consent of the licensee or lessee, enter occupied lands in respect of which a licensee or lessee has given a notice under subsection (4) in order to conduct an inspection to determine that the necessary measures have been taken and that the infestation or disease has been eradicated or controlled.

(6) A notice referred to in subsection (2) shall be delivered personally to the licensee or lessee or sent by registered mail to the last known address of the licensee or lessee.

(7) Where a notice has been sent by registered mail, it shall be considered to have been received five days after the date it was mailed.

COMING INTO FORCE

2. These Regulations come into force on the day on which they are registered.

[52-1-o]

Public Sector Pension Investment Board Regulations

Statutory Authority

Public Sector Pension Investment Board Act

Sponsoring Department

Treasury Board Secretariat

REGULATORY IMPACT ANALYSIS STATEMENT

Description

The Public Sector Pension Investment Board Act, S.C., 1999, c. 34 (the Act), created the Public Sector Pension Investment Board, charged with managing and investing newly created pension funds under the Canadian Forces Superannuation Act (CFSA), the Public Service Superannuation Act (PSSA) and the Royal Canadian Mounted Police Superannuation Act (RCMPSA). To ensure the independence of members of the Board and the Chairperson of the nominating committee responsible for establishing a list of candidates for proposed appointment to the Board, the Act sets out certain criteria according to which a person would be disqualified from serving in such a capacity. Entitlement to receive pension benefits under the largest federal public sector pension plans, the CFSA, PSSA, and RCMPSA, is one of the grounds for disqualification and is specified in the Act itself. For greater certainty in assuring the independence of a potential candidate, the Act further provides for the making of regulations specifying additional kinds of pension benefits that would disqualify a person from serving as a director of the Board or Chairperson of the nominating committee. The Regulations proposed here establish the particulars of this disqualification. Disqualification is to result in cases where pension benefits and entitlements are payable under the Judges Act, the Governor General's Act, the Lieutenant Governors Superannuation Act, and in respect of most other employer-sponsored pension benefits payable out of various Government of Canada accounts, including pension benefits payable out of the Consolidated Revenue Fund to employees engaged locally outside of Canada.

Alternatives

There is no alternative to use of the regulatory route.

Benefits and Costs

The application of these Regulations is limited to those persons who are being considered for appointment as a director of the Public Sector Pension Investment Board or Chairperson of the nominating committee.

Consultation

The broad parameters of these Regulations were the subject of discussion during the parliamentary review undertaken during the enactment process of the Public Sector Pension Investment Board Act. These Regulations are being pre-published to afford interested parties a 30-day period in which to submit comments before the Regulations are finalized, prior to being published in the Canada Gazette, Part II.

Compliance and Enforcement

In addition to the public nature and accompanying public scrutiny of the appointments contemplated by these Regulations, normal administrative compliance structures will apply, including internal audits.

Contact

Joan M. Arnold, Director, Pensions Legislation Development Group, Pensions Division, Treasury Board Secretariat, Ottawa, Ontario K1A 0R5, (613) 952-3119.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to subparagraphs 6(2)(g)(ii) and 10(1)(a)(ii) and paragraph 50(d) of the Public Sector Pension Investment Board Act (see footnote a) proposes to make the annexed Public Sector Pension Investment Board Regulations.

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Sharon G. Hamilton, Assistant Secretary, Pensions Division, Treasury Board Secretariat, L'Esplanade Laurier, 140 O'Connor Street, Ottawa, Ontario K1A 0R5.

Ottawa, December 16, 1999

MARC O'SULLIVAN
Assistant Clerk of the Privy Council

PUBLIC SECTOR PENSION INVESTMENT BOARD REGULATIONS

1. For the purposes of subparagraphs 6(2)(g)(ii) and 10(1)(a)(ii) of the Public Sector Pension Investment Board Act, the prescribed kind of superannuation or pension benefit is one that is

(a) granted under the Judges Act;

(b) payable under the Governor General's Act or the Lieutenant Governors Superannuation Act; or

(c) payable out of the Consolidated Revenue Fund, or out of a superannuation or pension fund or plan pursuant to which contributions have been paid out of the Consolidated Revenue Fund in respect of employees engaged locally outside of Canada, and that is

2. These Regulations come into force on the day on which they are registered.

[52-1-o]

Footnote 1

C.R.C., c. 1528; SOR/87-191

Footnote 2

SOR/87-191

Footnote 3

SOR/95-580

Footnote 4

SOR/95-580

Footnote 5

SOR/95-580

Footnote 6

SOR/95-580

Footnote 7

SOR/96-549

Footnote 8

SOR/96-549

Footnote 9

SOR/92-592

Footnote 10

SOR/79-508; SOR/92-592

Footnote 11

SOR/95-531

Footnote 12

SOR/79-508

Footnote 13

SOR/79-508

Footnote 14

SOR/96-549

Footnote 15

SOR/87-531

Footnote a

S.C. 1999, c. 34

NOTICE:
The format of the electronic version of this issue of the Canada Gazette was modified in order to be compatible with extensible hypertext markup language (XHTML 1.0 Strict).