Timber Tenure Transfers and Dispositions

Persons who hold forest tenure agreements can dispose of them to another party, with notice given to the Ministry of Forests.

All dispositions undergo ministerial review to assess the impact on the public interest, Indigenous communities and the marketing of fibre in B.C.

A disposition can include a broad range of actions including to assign, give, sell, grant, charge, convey, bequeath, devise, lease, divest, or release the agreement. However, in general the disposition of an agreement  can occur in three ways:

• the transfer of the agreement to a new holder,
• a change of control of the corporation holding an agreement, or
• an amalgamation of a corporation that holds an agreement.

A transfer requires prior written approval to proceed, and must undergo a review of the effect of the transfer on the marketing of fibre in British Columbia and the public interest. Some types of agreements, such as woodlots, first nations woodland licenses, or community forest agreements, can only be transferred to a person or corporation that is eligible to hold that type of agreement. In the case of bankruptcies and trusteeships, where an intermediary must hold the agreement before it is disposed, prior approval is required for the final disposition of the agreement.

The “Disposition of an Agreement Administrative Guide” (link below) provides detailed information, guidance, and procedures regarding the disposition of an agreement that has been entered into under current or previous versions of the Forest Act.

• Disposition of an Agreement Administrative Guide - Dec 8, 2021 (PDF 576KB)

Support for submitting a request for the approval of an intended transfer (RAIT) is available by using the template below, along with the associated guidance document. Use of this template will help consolidate the information that the holder of an agreement should provide to government as part of their request for approval:

• Template for the Request for Approval of an Intended Transfer (RAIT) (DOCX 78KB)
• Guidance document for using the RAIT template (PDF 283KB)
• Acceptable Forms of Security (PDF 154KB)

A change of control results from the change in ownership of the corporation that holds the agreement. An amalgamation is when a corporation holding an agreement is affiliated with a holding corporation and is merged into the holding corporation.

Prior written approval is not required for a disposition that results from a change of control or an amalgamation. However, a corporation that holds an agreement must give written notice to the minister within 30 days after a change of control of the corporation or an amalgamation of the corporation. A ministerial review is then conducted after this notice is received. A number of administrative actions are available to the decision maker under certain circumstances, and these actions include suspension of the rights under the agreement and cancellation of the agreement. Therefore, it is very important that business owners understand the possible consequences associated with a change of control or amalgamation of a corporation that holds a forest tenure agreement.

Learn more about the consideration of the public interest for proposed tenure agreement transfers.

Woodlot Licence Transfers

Woodlot licences are small area-based tenures that are held and managed under the provincial Woodlot Licence Program. Specific guidance for the disposition of woodlot licence agreements and a template to request approval for an intended transfer are provided below.

• Woodlot Licence Disposition Guide (PDF 499KB)
• Request for Approval of an Intended Transfer (RAIT) of a Woodlot Licence Agreement (DOCX 84KB)

Learn more about the provincial Woodlot Licence Program.