The Inherent Insecurity Of Log Purchase Transactions

I have previously used this space to discuss the powerful remedies available to the provincial government's Forest Revenue Audit Program ("FRAP") under Part 11.1 of the Forest Act (the "Act"). By way of recap, if a "commissioner" appointed pursuant to that program considers (for any number of reasons) that stumpage was underpaid on harvested Crown timber, the commissioner may make an assessment of the underpayment on any basis that the commissioner considers "adequate and expedient" and the amount of the assessment becomes due and owing on top of any stumpage already paid on the timber at issue.

The government has other rights available under the Act to adjust the stumpage owing on harvested timber after the fact. Sections 105(5.1) and (5.2), combined with provisions of BC's stumpage appraisal manuals, require a "changed circumstances" reappraisal of the stumpage rate payable on harvested timber if the district manager concludes that the circumstances encountered in