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Consolidated Newfoundland Regulation 1996
Under the authority of section 35 of the Forestry Act and the Subordinate Legislation Revision and Consolidation Act, the Lieutenant‑Governor in Council makes the following regulations.
1. Short title
3. Domestic cutting permit
5. Royalty rates
6. Crown timber
7. Royalty: commercial cutting permit
8. Royalty: timber purchase licence
9. Interest rate
10. Security for royalty
12. No permit or licence issued
1. These regulations may be cited as the Timber Royalty Regulations.
2. In these regulations
(a) "Act" means the Forestry Act;
(b) "commercial cutting permit" means a permit issued under the Cutting of Timber Regulations to cut timber for sale or barter;
(c) "commercial cutting permit return" means a form showing the total of all volumes cut and royalty owing for each of the prescribed 3 month periods ending June 30, September 30, December 31 and March 31 of the fiscal year in accordance with a commercial cutting permit;
(d) "royalty" means the fee paid to the Crown for use of the timber resource; and
(e) "timber purchase licence" means a licence issued under section 34 of the Act to purchase timber cut under a commercial cutting permit or Crown timber licence.
Domestic cutting permit
3. A royalty is not payable to the Crown in respect of timber harvested under a domestic cutting permit issued under the Cutting of Timber Regulations.
4. (1) The holder of a commercial cutting permit shall pay royalty for each class of Crown timber in accordance with the Schedule.
(2) The holder of a timber purchase licence shall pay royalty on each class of Crown timber purchased in accordance with the Schedule unless the seller of the timber has agreed to pay the royalty and provides to the holder of the timber purchase licence written assurance that the royalty will be paid.
5. Royalty rates shall be
(a) prescribed by the minister; and
(b) published in the Gazette.
6. Notwithstanding section 4, the royalty due in relation to Crown timber cut as pulpwood shall be at the rate for sawlogs prescribed in the Schedule if
(a) the pulpwood is exchanged for sawlogs that are cut from limits owned, leased or licensed by a pulp and paper company; and
(b) the documentation as may be required in the commercial cutting permit in relation to the exchange is provided.
Royalty: commercial cutting permit
7. The holder of a commercial cutting permit must remit all royalty to the Crown, accompanied by a cutting permit return, no later than the 20th day of the month following the quarterly periods ending June 30, September 30, December 31 and March 31 based on volumes cut during each period.
Royalty: timber purchase licence
8. The holder of a timber purchase licence must remit royalty to the Crown for each calendar month no later than the 20th day of the following month, based on the volume purchased during that calendar month, if required to pay royalty under subsection 4(2).
9. (1) Royalty not remitted in accordance with sections 7 and 8 shall bear interest at the rate of 1.5% per month
(a) from the end of each quarter in respect of a commercial cutting permit; and
(b) from the end of each month in respect of a timber purchase licence.
(2) Interest calculated in subsection (1) shall be added to the royalty amount payable.
Security for royalty
10. (1) In the case of first time permit holders, one time permit holders, sporadic permit holders, permit holders previously delinquent in remitting royalty and cutting permit returns, any timber purchaser or any individual, when there is reason to believe that a royalty may not be paid, the minister may require the provision of security in the form of cash, certified cheque, bond or similar security for 25% of royalty that would be owing if the full permit volume were harvested.
(2) Security shall be returned upon filing of the return and payment of the royalty.
(3) If royalty payment is delayed or royalty is not paid, the security shall be realized.
(4) Realization of security shall not affect liability to pay the balance of the royalty or another remedy available to the Crown to enforce payment.
11. For royalty purposes, pulpwood that is converted to pulpchips at a sawmill shall be treated as pulpwood.
No permit or licence issued
12. Further to the Cutting of Timber Regulations, a cutting permit or timber purchase licence may not be issued to a person while any royalty, interest or penalties owing to the Crown are outstanding from that person.
13. The Timber Royalty Regulations, Newfoundland Regulation 167/93, are repealed.
Timber Royalty Rates
Stand Volume (experimental)
In areas designated for experimentation with a royalty system based on standing volume, a 33% reduction may be applied to the amount payable on the gross merchantable volume expressed in cubic metres (stacked) only.
Non‑accessed rated shall apply to areas which have been accessed by 2.0 or more kilometres of privately constructed road. In areas where 1.0 to 2.0 kilometres of private road have been provided, the applicable rates shall be those obtained by averaging the accessed and non‑accessed rates.
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