Part 11.1 of the Forest Act authorizes
the "Forest Revenue Audit Program," or FRAP, as it is
sometimes called without much affection. Unless you have
encountered the business end of FRAP up-close, you may not even
have heard of it. Yet to date, FRAP has waged a number of
existential battles with those it has suspected of underreporting
stumpage, and FRAP can pursue its suspicions with surprising
zealotry.
Part 11.1 of the Act authorizes "forest revenue
officials" to conduct audits in relation to stumpage revenue.
Forest revenue officials possess broad powers to enter a premises
to inspect records or demand production of records. If, based upon
an audit, an official known as the 'commissioner'
determines that stumpage was underreported, the commissioner may
estimate the outstanding stumpage and make an assessment against
the licensee for that amount. If the commissioner determines that
underpayment was willful, he or she may also impose a penalty of up
to 100% of the
