| Preceded
by Procedure No: |
03
and 04 |
Followed by Procedure No: |
07 |
| Purpose: |
To
specify the value of the performance bond
for inclusion in TUC prospectus and TUC
condition |
| Applies
to: |
FC Chief ExecutiveRMSC
Director and staffTREC
Secretariat FC Legal
Officer |
| Reference
Documents: |
LI
1649, LIi
1721TUC Prospectus
TUC |
| 1.
The RMSC
Director assigns staff to prepare the value
of the performance bond to be specified
in the prospectus for each TUC. This value
will constitute the amount of the performance
bond to be arranged by the TUC holder for
the first year of the TUC term. |
| 2.
The method
for calculating the value of the performance
bond for both on and off reserve TUCs is as follows:
a)
The proposed
first-year harvest schedule and other pertinent
information are examined to construct an
estimate of the expected harvest volume
of each species. Appropriate adjustments
apply so that the estimated volume corresponds
to the volume for which the stumpage fee
will be charged. b)
The current
stumpage for each species, is calculated
as specified in LI 1649 Schedule 3, multiplied
by each volume identified in 2 a) and summed.
c)
The sum
is rounded up to the nearest ¢1,000. |
| 3.
The RMSC
Director ensures that the value is accurately
presented in the TUC prospectus. |
| 4.
After award
of each TUC, the TREC Secretariat and the
FC Legal Officer ensures that the value
of the performance bond posted by the TUC
holder is equal to the amount specified
in the relevant prospectus. |
| 5.
In the second
and subsequent years of the TUC term, {at
least [one] month prior to the TUC's anniversary
date} OR ANNUAL RENEWAL DATE OF PERFORMANCE
BOND, the RMSC Director recalculate the revised value of the performance bond in
accordance with the procedure in Step 2
above, except projected harvest volume and
species distribution is taken from the results
of the TUC stock survey from compartments
to be harvested in following year instead
of the inventory results. Where no harvest
is scheduled for a forthcoming year, the
performance bond remains at the current
year's value. |
| 6.
The value
of the performance bond is calculated by
using the stumpage fees
in effect on the anniversary date multiplied
by the corresponding volume, summed and
rounded up to the nearest ¢ 1,000. |
| 7.
The Chief Executive
advises each TUC holder of
his revised Performance bond value. |
| 8.
The TREC
Secretariat maintains a record of the annual
calculation for each TUC. |
