PROVINCE OF BRITISH COLUMBIA

Ministry of Forests

IN THE MATTER OF TREE FARM LICENCE NUMBER 46

INSTRUMENT NUMBER 13

Amendment

THIS AGREEMENT is dated the 1991"

day of

BETWEEN:

THE MINISTER OF FORESTS, on behalf of HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA, Parliament Buildings, Victoria, British Columbia, V8V 1X4

(the "Licenser")

AND:

Fletcher Challenge Canada Limited 9th Floor 700 West Georgia Street Vancouver, British Columbia V7Y lJ7

(the "Licensee")

WHEREAS:

A. The Licenser and British Columbia Forest Products Limited have entered into Tree Farm Licence Number 46, dated July 1, 1983, pursuant to Section 331 of the Forest Act.

Section 33 of the Forest Amendment Act, 1988 reduced the allowable annual cut available under the Licence from Schedule '@B"' Land by 2 l/2 percent, effective January 1, 1988 and a further 2 l/2 percent, effective January 1, 1989.

PAGE 1 OF 4

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‘1 /

‘I

B. This Agreement, as required by Section 33 of the Forest Amendment Act 1988, evidences the reduction which was made in the allowable annual cut available under the Licence from Schedule "B" Land, effective January 1, 1988 and January 1, 1989, respectively.

c. The deletion of the land within the boundaries set out in this Agreement would result in a reduction in the allowable annual cut available under the Licence from Schedule *'B@' Land equal to the 5 percent reduction implemented, pursuant to Section 33 of the Forest Amendment Act 1988.

D. The timber within the boundaries set out in this Agreement is representative of the kind and quality of timber found on the land subject to the Licence.

E. Under Section 33.1 of the Forest Act, the Licenser may I with the consent of the Licensee, delete part of the licence area from Tree Farm Licence Number 46.

THE PARTIES AGREE AS FOLLOWS:

1. Pursuant to Section 33,l of the Forest Act, Tree Farm Licence Number 46, dated January 1, 1983 (the "Licence") is amended by deleting from the Schedule IrB@@ Land, the land (the "Deleted Land") within the boundaries described on the attached Schedule I, more particularly shown as outlined in bold black on the maps attached.

2. All other terms and conditions of the Licence remain in full force, except as specifically provided in this Agreement.

3. Any cutting permits issued to the Licensee with respect to the Deleted Land are hereby cancelled.

4. Any outstanding silviculture obligations of the Licensee with respect to the Deleted Land, whether these obligations arose under the Licence or under the Forest Act, remain in full force and are in no way affected by the deletion of the Deleted Land from the Schedule 'B' Land.

5. The Licensee will permit every person entitled to access to the Deleted Land to use any road owned by the Licensee which provides access to the Deleted Land, and where such use relates to forest harvesting on or other industrial use of the Deleted Land, the Licensee will not require any payment in respect of such use other than a reasonable payment in respect of the actual maintenance costs of the road.

PAGE 2 OF 4

6, The parties hereby confirm that the allowable annual cut available under the Licence from Schedule "IV Land was reduced by 2 l/2 percent, effective January 1, 1988 and by a further 2 l/2 percent, effective January 1, 1989.

7. Subject to Paragraphs 8 and 11, the Licenser will make no further reduction in the allowable annual cut available under the Licence from Schedule "B" Land by reason only of the deletion of the Deleted Land.

8. Nothing in this Agreement in any way affects any right or duty the Licenser may have under the Licence or the Forest Act to reduce the allowable annual cut available under the Licence from Schedule "B" Land for any reason other than the deletion of the Deleted Land.

9. If the Licenser determines at any time that the deletion of the Deleted Land would, but for Paragraph 7, result in a reduction in the allowable annual cut (the "Actual Reduction") which is less than the 5 percent reduction referred to in Paragraph 6 (the "Intended Reduction"), the Licenser may at its sole discretion, but only after consultation with the Licensee, delete additional land from the Schedule "B" Land to the extent required to make up the difference between the Actual Reduction and the Intended Reduction.

10, Except where the Licenser deletes additional land from the Schedule "B" Land under Paragraph 9, if the Actual Reduction is less than the Intended Deduction, the timber comprised in the reduction in allowable annual cut remaining after the Actual Reduction is deducted from the Intended Reduction is available for disposition by the Licenser to persons other than the Licensee.

11. ff the Licenser determines at any time that the Actual Reduction is greater than the Intended Reduction, the Licenser may at its sol!& discretio but only after consultation with the Licensee.

( 1 a add land from the Deleted Land back into the Schedule "B" Land to the extent required to make up the difference between the Actual Reduction and the Intended Reduction; or

w if the Licenser does not add land from the Deleted Land back into the Schedule "B" Land, reduce the allowable annual cut available under the Licence from Schedule "B" Land by the amount by which the Actual Reduction exceeds the Intended Reduction. '

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12, Where, under Paragraph 11(b), the Licenser reduces the allowable annual cut available under the Licence from Schedule "B"* Land, the Licenser will compensate the Licensee in respect of the reduction.

13. In the event that:

(a) legislation is enacted which deems a reduction in allowable annual cut, effected by means of a deletion of an area of Crown land within a tree farm licence, to be equal to the 5 percent reduction implemented under the Forest Amendment Act, 1988; and

(b) the deletion of the Deleted Land falls within the scope of the legislation, Paragraphs 9 to 12, inclusive will cease to have any force or effect as of the day on which the legislation comes into force, and this Agreement will be deemed to have been amended accordingly by agreement of the parties.

IN WITNESS WHEREOF the parties have executed this Agreement the day and year first above written.

SIGNED on behalf of Her 1 Majesty the Queen in Right ) of the Province of ) British Columbia, by the 1

1

C/S

PAGE 4 OF 4

SCHEDULE I

Deleted Lands From Schedule "B" Lands of Tree Farm Licence Number 46

Block 7 - 1

Block 7 - 2

Block 7 - 3

Block 7 - 4A

Blocks 7 - 4B and 7 - 4C

Block 7 - 5A

Block 7 - 5B

Block 7 - 7

Block 7 - N

Draw Lake

Clayoquot Arm

McCaw Peninsula

Meares Island

Meares Island

Hesquiat Harbour

Sydney River

Hesquiat Harbour

Escalante River

PAGE 1 of 1

. Prov 1 rice 0 t Mhistry of I _. -: 2 - 8rftish Cal jig F&e&s

-. +

MAP OF: Block 7-58 (Schedu I e B TFL 46) Dafe Drawn by

FOREST REGION : Of Vancouver DISTRICT: 17 Port Alberni Revfsad by Date LAND DISTRICT: Clayoquot OUTtiNE :

U.T.M. form East North Grid 9

Rw 692

Compt. L 5492 5 21

MANAGEMENT UN i T TIMBER SUPPLY AREA PULPWOOD CASCADES w

TYPO T Number 38 AGREEMENT East 92E058,E059 Number 46

Ref. Mop Block A West c Scale I: 40000

Block Sub-B

\

-1

CLAYOQUOT FOREST

DLR. I-N

MAP OF: El ock 7-7 (Schedule B TFL 46) Date

Drawn by

FOREST REG i ON : 01 Vancouver D1STRICT: 17 Port A berni Revls*d by LAND DISTRICT: Clayoquot OUTLINE :

U.T.M. Zone East North Rw Compt. L

Grid 9 682 5486 5 22

MANAGEMENT UNIT

TYPO T Number 46

3lock

TIMBER SUPPLY AREA PULPWOOD CASCADES

Number 38 AGREEMENT East Ref. Map

92E048,E058

Block A West c Scale I: 40000

Sub-8 Area 522 hectares ?

T. P. 2043m W and 32761-n N fro

the NW cot-. of L 15%

46 5

Area 2 ,

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-33----

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--I- --- I

\ I I

-z/3- - - I I I

j

a -- I I 21

.

t 1599 L 1600 \

Rondeau I t Pt

Lectalre Pt

Hesguiat

I ’ I I I 22 T

MAP OF: f3lock 7-N (Schedule B TFL 46) Date

FOREST REG I ON : 01 Vancouvkr DISTRfCT: 17 Port Alberni LAND DISTRICT: C I ayoquot OUTLINE :

U.T.M. Zone East North WI Compt. L Grid 9 687 5491 5 I

MANAGEMENT UN I T

Type J TIMBER SUPPLY AREA PULPWOOD CASCADES

Number 38 AGREEMENT Eost Ref. Map 92E058,E059

Number 46 Block A

Block Sub-B

West c Scala Ir 40000 Area 157 1 hectares t

5359m E and the NE cot-.

IA / \ I

Blk 5

1 -1 . Hesqulol

( -P 1

I I I I 46

. . Prov I no0 of Ministry of . . c. 'I --

*’

Brlttsh Colt a Forests *

MAP OF: B I ock 7-l (Schedu I e I3 TFL 46) ~a+0 Drawn by

FOREST REGION: 0 I Vancouver DISTRICT: 17 Port Alberni ?7= Rev ised by ate

LAND DISTRICT: C I ayoquot OUTLINE :

tl.T.M. Zone East North Rw Compt. L Grid 10 322 5439 5 IO D

MANAGEMENT UN IT Tl M8ER SUPPLY AREA PULPWOOD CASCADES

WPQ T Number 38 AGREEMENT East Ref, Map 92FOO3,FO13

Number 46 3lock A west c Scale II 40000

Block 5ub43 Area 2530 hectares +_

KENNEDY L to c 680

Island LAKt 1 1401091

3332m ET~n%. 390m S c from the NW I

A19234 Cht 1

and I l06m E from cot-. of L 80ALB

LAKE d!ifix?"~~l

tqrllstry of - i : . . __ *, ._ -, >- c . .

da forests

ock 7-2 (Schedule B TFL 46) ~a+e

lV8l- DISTRICT: 17 Port AIberni

Prov 1 rice of

Brltlsh Cal

MAP OF: B

I

FOREST REGI ON : 01 Vance

LAND DISTRICT: Clayoquot OUTLINE :

U.T.M. Zone East North Reg Compt, L Grid 10 311 5447 5 I I 8

MANAGEMENT UN 1 T

TYPO I-

TIMBER SUPPLY AREA PULPWOOD CASCADES

Number 38 AGREEMENT East Ref. Map 92FOl2,FQ22

Number 46 Block A Block Sub-8

west c Scale I: 40000

Area 1551 hectares +,

LAKE

Prov 1 rice of Mlqllstry of . 't ' c -- .

Brltlstr COIL la Forests

MAP OF: E3I oak 7-3 (Sclhedul e B TFL 46) D&6

FOREST REGION : 0 I Vancouver DISTRICT: 17 Port Alberni LAND DISTRICT: c I ayoquot OUTLINE :

U.T.M. Zone East North Rw Compt. L Grtd 10 306 5453 5 12 B

MANAGEMENT UN IT

Type T Number 46 3lock

TIMBER SUPPLY AREA PULPWOOD CASCADES

Number 38 AGREEMENT East Ref. Map

92FOl2,FO22

Block A W0s-t c Scale I: 40000 Sub-3 Area 643 hectares t

TFL 46 Elk 4

Rmkln .*Rocks

TFL 46 Blk 4

ArFln 3 s 0 Berryman Point

_ n

Prov t no0 of British CoI,..da

. 'A Mhist~y of -, .!- . -_-- 2 3 _ . . Forests

MAP OF: Block 7-4A (Schedule B TFL 46) ~a+e

FOREST REGION : 0 I Vancouver DISTRICT: 17 fort Albernf LAND DISTRICT: c I ayoquot OUTLINE :

U.T.M. Zone East North Rw Compt. L Grid 10 280 5452 5 14 A

MANAGEMENT UN I T

Type T

TIMBER SUPPLY AREA

Number 38

PULPWOOD CASCADES AGREEMENT East Ref. Map 92FOl I

Number 46 Block A Block Sub-3

West c Scale I: 40000 Area 202 hectares +_

Save and except thereout: SUP 51 15, TFL 46 Deletion Instrument No. 55

ARRCDW%Mlll TFL 46 Blk 4

683m W from the SE cor.of L 642

a

TFL 44 Blk 6

Wickonlnnlsh

Provhoe oF iw-l I st.t-y of

Brltfsh Co. . ..nbla Forests

MAP OF:BI ock 7-4B,7-4C (Schedul Q B TFL 46!1+9 Drawn by

FOREST REGI ON : 0 I Vsncouver DISTRtCT: 17 Port Albernl revised by

LAN0 DtSTRiCT: Clayoquot OUTLINE :

U.T.M. Zone East North Rw Compt. L

Grid IO 296 5457 5 14 A

MANAGEMENT UN I T

Type T Number 46 Block

TIMBER SUPPLY AREA PULPWOOD CASCADES

Number 38 AGREEMENT East

EIOCK A Was+ c

Sub-B

Ref.Map 92FOll,F02I

SC019 I: 40000 Area 355 hectares +,

:BIk 4- Y

TFI

ISLAND

n Dark

0327085

s

‘MJnMyy of _ c I '1

' 4.. ..Ilb f a FW8StS

ock 7-5A (Schedule B TFL 46) Oote Drawn by-

I ’ c Provinc0 0

8rftlsh Co

MAP OF: B

FOREST REGl ON : 01 Vancouver DtSTRICT: 17 Port A 1 berni Raised by Me

LAND DISTRICT: Clayoquot OtJTLtNE :

U.T.M, Zone East North Rw Compt. L Grid 9 6880 5485 5 22

MANAGEMENT LtNtT

TYP@ T Number 46 Ellock

TIMBER SUPPLY AREA PtlLPWOOD CASCADES

Number 38 AGREEMENT East Ref. Map

92E048,E058

Block A West c scat0 I: 40000

Sub-B Area 547 hectares ?

I \ i 1

Tn3Qr; TO295

I 134m ti-f’r:m

\ CLAYOQUOT FOREST 2 TFL 46

Blk 5

l26lTE

I

Y I Hesquiut

02WE6

Rondeault Pt\\----,-. ------;=-,=+--=% \ II:’