Acts and Regulations

2023-38 - Timber Royalty Adjustment

Table of contents
Full text
Current to 28 March 2024
NEW BRUNSWICK
REGULATION 2023-38
under the
Private Woodlot
Sustainability Act
(O.C. 2023-155)
Filed June 29, 2023
Under section 6 of the Private Woodlot Sustainability Act, the Lieutenant‑Governor in Council makes the following Regulation:
Citation
1This Regulation may be cited as the Timber Royalty Adjustment Regulation – Private Woodlot Sustainability Act.
Definitions
2The following definitions apply in this Regulation.
“Act” means the Private Woodlot Sustainability Act. (Loi)
“average price” means, with respect to a species or group of species of timber, the monthly price or the average of the weekly prices for a month, as the case may be, published by a price reporting agency in a publication for the product that is manufactured from the species or group of species of timber, except the species or group of species referred to in subsection 3(4), and that is listed in column 5 of Schedule A. (prix moyen)
“fair market value” means the fair market value prescribed for a species or group of species of timber in Schedule A of New Brunswick Regulation 86-160 under the Crown Lands and Forests Act.(juste valeur marchande)
“inflation-adjusted monthly price” means a price calculated in accordance with section 4. (prix mensuel ajusté en fonction de l’inflation)
“price reporting agency” means a price reporting agency listed in column 3 of Schedule A. (organisme d’information sur les prix)
“publication” means a publication listed in column 4 of Schedule A. (publication)
“species or group of species of timber” means a species or group of species of timber that is included in a class of timber and listed in column 2 of Schedule A. (espèce ou groupe d’espèces de bois)
“timber” means timber as defined in the Crown Lands and Forests Act. (bois)
2024-14; 2026-25
Average price
3(1)If an average price is not a multiple of one dollar, it shall be rounded to the nearest multiple of one dollar or, if it is equidistant from two consecutive multiples, to the higher multiple.
3(2)If an average price is expressed in U.S. dollars, it shall be converted into Canadian dollars using the Bank of Canada’s average exchange rate for that month.
3(3)The average price of mixed hardwood and poplar in the pulpwood class of timber differs depending on which of the following products is manufactured from the mixed hardwood or poplar:
(a) dissolving pulp;
(b) corrugating medium;
(c) medium density fibreboard; or
(d) lumber or pallets.
3(4)The average price of mixed hardwood in the pulpwood class of timber that is used to manufacture lumber or pallets and the average price of poplar in the sawlogs or pulpwood class of timber that is used to manufacture lumber or pallets are calculated by adding the monthly price published by a price reporting agency, of the following products weighted according to the following coefficients:
(a) 36% of mixed hardwood pallet lumber 5/8 x 31/2 x 40 in.;
(b) 54% of mixed hardwood pallet lumber 5/8 x 51/2 x 40 in.;
(c) 3% of poplar pallet lumber 5/8 x 31/2 x 40 in.; and
(d) 7% of poplar pallet lumber 5/8 x 51/2 x 40 in.
2026-25
Inflation-adjusted monthly price
4(1)The inflation-adjusted monthly price of a species or group of species of timber is calculated by taking the average of the adjusted monthly prices calculated in accordance with subsection (2) for that species or group of species of timber.
4(2)The adjusted monthly price of a species or group of species of timber is calculated by adjusting, for each month during the period beginning January 1, 2015, and ending December 31, 2024, the average price of the species or group of species of timber to reflect any changes in the data in the following tables published by Statistics Canada, using December 2024 as the base month:
(a) Electric power selling price index, monthly – Electric power selling price over 5000 kw (New Brunswick);
(b) Wholesale services price index, monthly – Petroleum and petroleum products merchant wholesalers (Canada);
(c) Raw materials price index, monthly – Logs and bolts, and pulpwood (Canada);
(d) Industrial product price index, by product, monthly – Wood chips (Canada);
(e) Machinery and equipment price index, by industry of purchase, quarterly – Wood product manufacturing and paper manufacturing (Canada);
(f) Average hourly earnings for employees paid by the hour, by industry, monthly, unadjusted for seasonality – Manufacturing (New Brunswick – all employees); and
(g) Employee wages by industry, monthly, unadjusted for seasonality – Forestry, fishing, mining, quarrying, oil and gas (New Brunswick).
4(3)The fiftieth and ninetieth percentiles of inflation-adjusted monthly prices are prescribed in columns 6 and 7 of Schedule A for the purposes of calculating the royalty adjustment.
2026-25
Royalty adjustment calculation
5For the purposes of section 5 of the Act, the royalty adjustment for a species or group of species of timber shall be calculated each month using the following formula:
A = B × [(C – D) ÷ (E – D)]
where
Ais the royalty adjustment;
Bis the fair market value;
Cis the average price of the species or group of species of timber;
Dis the fiftieth percentile of the inflation-adjusted monthly price; and
Eis the ninetieth percentile of the inflation-adjusted monthly price.
2024-14
Maximum royalty adjustment
6The royalty adjustment for a species or group of species of timber may not be greater than its fair market value.
2024-14
Minimum royalty adjustment
7If the formula in section 5 produces a royalty adjustment that is less than 5% of the fair market value of a species or group of species of timber, the royalty adjustment shall be deemed to be 5% of the fair market value of the species or group of species of timber.
2024-14
Fixed royalty adjustments
8(1)The royalty adjustment for the following species or group of species of timber is deemed to be 10 % of their fair market value:
(a) red pine in the poles and pilings class of timber;
(b) any softwood species other than white pine, spruce, jack pine or fir in the sawlogs class of timber;
(c) cedar in the shinglewood class of timber;
(d) cedar in the studwood class of timber; and
(e) poplar in the studwood class of timber.
8(2)The royalty adjustment for every species or group of species of timber in the following classes of timber is deemed to be $0/m³:
(a) fuelwood;
(b) forest biomass;
(c) weir stakes;
(d) top poles;
(e) weir brush; and
(f) tips and branch material.
2024-14
SCHEDULE A
Column 1
Column 2
Column 3
Column 4
Column 5
Column 6
Column 7
Class of Timber
Species or Group of Species of Timber
Price reporting agency
Publication
Product information
Inflation-adjusted monthly price (fiftieth percentile)
Inflation-adjusted monthly price (ninetieth percentile)
 
sawlogs
mixed hardwood
Hardwood Publishing Co., Inc.
Hardwood Review Forecasting
Northern Index
$2,427/
thousand board feet
$2,844/
thousand board feet
 
poplar
Canadian Wood Pallet and Container Association
Lumber Price Trends
Mixed hardwood pallet lumber 5/8 x 31/2 x 40 in.
Mixed hardwood pallet lumber 5/8 x 51/2 x 40 in.
Poplar pallet lumber 5/8 x 31/2 x 40 in.
Poplar pallet lumber 5/8 x 51/2 x 40 in.
$1,074/
thousand pieces
$1,716/
thousand pieces
 
white pine
Random Lengths Publications, Inc.
Random Lengths Weekly
Board Lumber Group Composite
$1,201/
thousand board feet
$1,640/
thousand board feet
 
spruce, jack pine and fir
Random Lengths Publications, Inc.
Random Lengths Weekly
Eastern S-P-F Lumber Group Composite
$744/
thousand board feet
$1,391/
thousand board feet
 
 
studwood
spruce, jack pine and fir
Random Lengths Publications, Inc.
Random Lengths Weekly
Eastern S-P-F Lumber Group Composite
$744/
thousand board feet
$1,391/
thousand board feet
 
 
pulpwood
mixed softwood
RISI Inc.
PPI Pulp & Paper Week
Northern Bleached Softwood Kraft, Spot Market, US East
$1,206/tonne
$1,655/tonne
 
mixed hardwood
RISI Inc.
World Dissolving Pulp Monitor
Hardwood Viscose Pulp, Delivered to China
$1,575/tonne
$1,812/tonne
 
RISI Inc.
PPI Pulp & Paper Week
Semichemical Corrugating Medium, 26 lb, Open Market, US East
$1,126 /short ton
$1,403/short ton
 
Random Lengths Publications, Inc.
Random Lengths Weekly
Medium Density Fiberboard (East) 3/4 in. FOB Mill
$1,074/
thousand square feet
$1,338/
thousand square feet
 
Canadian Wood Pallet and Container Association
Lumber Pricing Trends
Mixed hardwood pallet lumber 5/8 x 31/2 x 40 in.
Mixed hardwood pallet lumber 5/8 x 51/2 x 40 in.
Poplar pallet lumber 5/8 x 31/2 x 40 in.
Poplar pallet lumber 5/8 x 51/2 x 40 in.
$1,074/
thousand pieces
$1,716/
thousand pieces
 
poplar
RISI Inc.
World Dissolving Pulp Monitor
Hardwood Viscose Pulp, Delivered to China
$1,575/tonne
$1,812/tonne
 
RISI Inc.
PPI Pulp & Paper Week
Semichemical Corrugating Medium, 26 lb, Open Market, US East
$1,126/short ton
$1,403/short ton
 
Random Lengths Publications, Inc.
Random Lengths Weekly
Medium Density Fiberboard (East) 3/4 in. FOB Mill
$1,074/
thousand square feet
$1,338/
thousand square feet
 
Canadian Wood Pallet and Container Association
Lumber Pricing Trends
Mixed hardwood pallet lumber 5/8 x 31/2 x 40 in.
Mixed hardwood pallet lumber 5/8 x 51/2 x 40 in.
Poplar pallet lumber 5/8 x 31/2 x 40 in.
Poplar pallet lumber 5/8 x 51/2 x 40 in.
$1,074/
thousand pieces
$1,716/
thousand pieces
 
 
Oriented Strand Board
mixed softwood
Random Lengths Publications, Inc.
Random Lengths Weekly
Oriented Strand Board (Eastern Canada) – 7/16-in.
$476/
thousand square feet
$1,146/
thousand square feet
 
mixed hardwood
Random Lengths Publications, Inc.
Random Lengths Weekly
Oriented Strand Board (Eastern Canada) – 7/16-in.
$476/
thousand square feet
$1,146/
thousand square feet
 
poplar
Random Lengths Publications, Inc.
Random Lengths Weekly
Oriented Strand Board (Eastern Canada) – 7/16-in.
$476/
thousand square feet
$1,146/
thousand square feet
2024-14; 2026-25
N.B. This Regulation is consolidated to April 27, 2026.