Guidelines for Issuing Timber Authorities 1995

Pa~ua New Guinea Forest Author~ty NA~IONAL FOREST SERVIC GUIDELINES FOR ' ISSU.ING TIMBER AUTHORIT::ES I I I I . MARCH 1995 ,JI I j rv PAPUA NEW GUINEA FOREST AUTHORITY GUIDELINfS FOR ISSUING TIMBER AUTHORITIES 1 • 2. 3. 4. 5. 6. Table of Contents Introduction-what are Timber Authorities . . 1 •••• 1.1 Timber Authorities and Timber Permits •.••..•• 1.2 Who 2. 1 2.2 2.3 When Timber Authorities are permitted •••••••• c~n apply for a Timber Authority ......... . Registration requirements •·············· 1···· IPA approval requirements ••••••.•.••...•••.•. Subcontracting not permitted ••••••••••••••.. Lodging an Application .for a Timber , Authority ....................................... . 3.1 Where to lodge the form •.••••••••..•.••••••. 3. 2 What must be lodged with the application ••••. Table 1 Information to be lodged with applic ltions Proc~ssing Applications ....................... . 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... Checking applications for completeness ••••••• Evaluation of Applications •••.••.••••••.•.•• Evaluation Report ••••••••••••••····••••· r ·•·· Consultation with other agencies •••••••• ' ••••• Drafting of Timber Authority •.••.•••••••.••.• Evaluation Report referred to PFMC ••••••••• •• Referral to Provincial Forests Minister •••.•• Basis for PFMC evaluation ••••••••••••••••••.• Changing the Draft Timber Authority .•••••••.• Provincial Minister notifies Board ••. ~ •••••.• Board Consent ••••.••.••...•.••.••• · ..•• ~ ..... . Dome;tic Processing Timber Authorities (TA-~)1) ...........•......................•........ 5. 1 Evaluating applications ••••••••.•••••••• ' ••••• 5.2 5.3 5.4 Criteria for Evaluation •.••••.•.•••.••••••••• Lando'Wil.er Issues ••••••••.•••••.••••••••••.••• Conditions .................................. . ~~:~~~)A~:.~~~~ ~~.e.~. : .~~. ~.o.~~~ ~~~ . . ~~~~~~.n.~~ ..... 6.1 r Evaluating applications •.•..•.• •.••..•. •...• 6 . 2 Criteria for evaluation • • . • • • • . • . • • • • • • • •... 6.3 6.4 Landowner issues ...................... . Conditions ............................ . i !- 1 1 2 2 2 3 4 5 5 5 6 7 7 7 8 8 9 9 10 10 10 11 11 12 13 13 13 14 15 16 16 17 19 19 7. T'mber Authorities for Agricultural 8. 9. 10. C earance (TA-03) •••••••••••••••••••••••••••• • ••• 7 1 Evaluating applications .••.•••••• • ••••....••• 1 l 2 Projects under SO hectares •••..•. • ..•. . ... • •. 7 13 Projects over SO hectares ..•........... . . .• .. 7 4 L andowner issues ••••••••••••••••••••••••••• • • 7 'S Conditions ..•..•.••.•..••••• •• ....••.•....•.• Ttmber Authorities for harvesting Other Ffrest Produce (TA-04) .............. l • •••••• 8.1 Eva luating applications .......•...•• ~ ...•..• • 8 '2 Criteria for Evaluation • . . • • • • . • . • . • . •.•..•• 8 3 0 J4 Landowner Issues •..••••••..•.••• • .•. 1 ....... . Conditions . • • . • • • • . • . . • • • • . • • • . • . • . • . ..• •• .. L ndowner Consent and Revenue Arrangemk nts . . .. 9 .1 Landowner Consent Issues •....• • ..•...••..•••. 9.2 Revenue arrangements ....•.....•..•.• . ...••.. T ble 2 Revenue payments . • • • . . . • • . • . . . • . • •...•.• 9 • 3 Landowner Premium • • • • • • • • • • • • • • • • • • • • •••• • • • P,rformance Bonds .... • .•......•..••......•.... • .. 21 21 21 22 24 25 27 27 27 27 28 29 29 30 31 32 32 11. Monitoring and Reporting . . . . . . . . . . . . . . . . . . . . . . . . 34 11.1 Scaling a nd reporting of logs harvested...... 34 11.2 Declaration of Other Forest Produce ••..•.• . .• \ 35 11.3 Completion reporting ................. . ....... 35 12. Suspension .•....••••.•.••••.•..•.•......••.•..•..• 13. c J ncellation ..................... . ............. . . . ATTACH~ ENT 1 Application Forms ....•••.•••••• 1 ..... . . . TA-01 Domestic Processing, 5 ,000 m3 (Form 17) ..... . TA 02 Roadline Clearance (Form 14) •••.••.••.•.• • .. TA 03 Agricultural Clearance (Form 15 ) ..•••... . ... TA 04 Other Forest Products (Form 16) ...•• •• •••• • . TA LOC Landowner Consent (Form 17 ) .•.•.•..••..•. . .. I T- FB Lodgement of Performance Bond • • ••••.•• • •..• • . I ATTACH ENT 2 Sales and Purchase Agreement ....... . . ATTACH ENT 3 Forestry Act Requirements ....... . .. . ATTACH ENT 4 Checklist and Evaluation Form r ••••• • • ATTACH ENT 5 Standard Letters . . . . . . . . . . . . . . . . ..... . ATTACH ENT 6 Timber Authority and Standard Conditions .............. . ....... ... ..... . TA 01 Domesti c Processing, 5, 000 m3 conditiohs ..•.• TA 02 Roadline Clearance conditions • • • • • • • • • •••• • . TA 03 Agricultural Clearance conditions ••••.•.•.• • • TA 03 Ot her Forest Produce conditions ..••••• • •• • • • • ATTACH ENT 7 Log Scale Record Sheet Form .. ii 35 36 37 39 41 45 49 51 53 57 65 67 79 81 83 91 101 111 117 e ~ " fAPUA NEW GUINEA FOREST AUTHORITY GUIDELINES FOR ISSUING TIMBER AUTHORIT ES About thes r Guidelines: These Guidelines have been issued by the Forest Authority to assist applicants, Forest Authority regional and proj ct staff, Provincial Forest Management Committees and Provincial ~overnments with the allocation of Timber Authorities It is intended that the Guidelines will be updated from time to time. users can check whether t ey have an up to date copy of the Guidelines by contacti g the PNG Forest iuthority Resource Development Division. 1 1. Introc!luction-what are Timber Authorities 1.1 Timber Authorities and Timber Permits Timber Authorities are one way of authorising the exerci~e of timber harvesting rights. Timber Permits also aµthorise harvesting, by allocating timber rights which •the Forest Authority (or the State) has a ready acquirr d. Timber permits must be used for harvesting timber from (a) customary land over which there is a Fores~ ~anagement Agreement; and (b) government land. Timbe~ permits are issued by the National Minis er for Forestls on the recommendation of the National F rest Board. Timbe Authorities can be used for ( a) q.arvesting timber from customary land over which ~.here is no Forest Management Agreement; ad (b) ~arvesting of forest produce other than tirer. Timbet Authorities allow the exercise of harvesting right' which have been directly acquired from t~e lando~mers. They are issued by Provincial Fore~ts Ministers on the recommendation of the Provincial Fores: Management Committee, with the consent o the Natio1al Forest Board. To wo.k out whether a Timber Permit or a Timber Authof ity is appropriate for a specific project, see Attac~1ment 3. Remember that all harvesting rom custo mary land requires either a Forest Mana~ement Agreement and a Timber Permit, or a GUIDELINES 1oR TIMBER AUTHORITIES Vl.4 Page 1 r 1 : 1.2 2. 2.1 1 Introduction T mber Authority. Customary owners of tjllnber r~quire a Timber Authority if they cut more than c j bic metres of timber per year. wen a Timber Authority is permitted 500 A .Timber Authority for harvesting of timberican only be g anted outside the area of a Forest Manage ent Agreement. This is because the timber righ s within t~ese areas have already been purchased by he State. w~ere it is proposed to harvest timber from a Timber R~ghts Purchase (TRP) Area over which there 1is no Tajmber Permit, the Forest Authority is respdnsible for r ~venue arrangements with landowners. Ther~ can be no r e 1 purchase of timber rights which have alre\ady been acquired under a TRP Agreement. HoCever, Timber Authorities can be granted qnly for four specific purposes, set out in Sectidn 87 of the Ac. These are TA 01 harvesting of less than 5,000 m3 anmlally of timber for domestic processing only; TA 02 harvesting of timber for roadline clEarance; TA 03 harvesting of timber for clearing in preparation for agricultural or other land use; TA 04 harvesting of forest produce other tt an timber. Ti er Authorities are intended for projects other than ex. o t forestr ro·ects. Export forestry pr ojects can only take place under a Timber Permit. However, this do~s not prevent logs produced as a by-product of roadline or agricultural clearance being exported, pr vided a Timber Authority is in place. The processes of applying for and granting a Timber Aut hority are set out in these Guidelines. t imber Aulhorities must be consistent with the Natibnal Forest Po icy and relevant provincial government poJicies. To as ist Provincial Forest Management Cornrnittei s, st ndard form Timber Authorities, of the fou. types set ou~ above, have been provided as Attachment to these Guidelines. Wh can apply for a Timber Authority Rel istration and Investment Promotion ap roval requirements A thority Ap13licants must be registered under the Foret,try Act 1 9Yl as forest industry participants and (if they are fo~eign enterprises) must have Investment Prcmotion Auuhority ( IPA) approval to operate the projE( t. Page 2 GUIDELINES FOR TIMBER AUTHOi I TIES Vl.4 .. ,., 2: Who can apply for a Timber Authority Under lection 88 of the Forestry Act 1991 applic tions for Ti er Authorities can only be lodged by re 'stered forest industr artici ants. Their registratio number must be noted on the application form. S ction 105 of the Forestry Act makes it an offence to a ply for a .imber Authority without being a registere forest industry participant . Specia . requirements apply to foreign companies. Under the Co panies Act, a company cannot operate in P pua New Gu nea unless it is registered with the Regirtrar of Com anies . A fore.gn company must also have IPA approval fo its propos d activities before it applies for an aut~ority (parag :aph 2.2 below explains when IPA requireme ts apply to a company). It is an offence under the Investf ent Promotion Act to apply for a Timber Authori ty before IPA approval for that activity as been o ,)tained . An app ication by a person or a company which is not a regist red forest industry participant, or which does not haye IPA approval, if that is required, will be return~d to the applicant. 2 . 2 I nves ment Promotion Authority Approval r equi ·ements Amendm~nts to the Investment Promotion Act in Se tember 1994 m 3 an that foreign companies must now have I A approv 1 before they apply for a Permit, Authority or Licenc~ under the Forestry Act. under .,ection 25 of the Investment Promotion Act, a foreig1 enterprise 'shall not carry on business , nless a certificate has been granted under this Part'. The Se)tember 1994 amendments changed the defini ion of 'carrying on business' to include '(a) m~king application for any permit, licence, lease OL authority issued for commercial purposes by the State or by a State body • •• ' A 'for9ign enterprise' is defined as an enterprise in which 0% or more of the company is owned by no~ c itize s. Even if the company is a joint ventu~~ compan involving landowners, a company which h~: 50% or mora of its shares owned by foreigners, or foreign companies, is still classified as a foreign entdrprise. If the joint venture is not incorporated, then ny joint venture partner with 50% or more foreign owners ip must get approval for the activity to be carrie out by the joint venture partners. GUIDELINES FI R TIMBER AUTHORITIES Vl.4 j Page 3 2: W o can apply for a Timber Authority II should be noted that existing IPA approv,1 for 1J in activities ma not be enou h to autl~orise a c , 1 m an to a 1 for a Timber Permit or Autl&ority. IPA a provals specify only certain locations whErre the atjthorised activity may be carried out. FOJ example, even though a company has an approval to caJry on l<lgging operations in Central Province, if ·t applies fdr a Timber Permit in New Ireland, it is ccrnmitting an ofifence unless it gets a new IPA approval fer the New I J eland operation first. I T~e amendments passed in 1994 also protect apua New G inea citizens from exploitation by foreig companies w ich have not had or do not have IPA appro al. Under S ction 41A of the Investment Promotion Act as ame nded, i~ a foreign enterprise enters into a contr· ct with agother enterprise which relates to activit{es for wijich the foreign enterprise did not have I ~A approval a~ the time, then a court may set aside the contract as bing unlawful . A 'foreign enterprise which breaches the IPA Act is 1·able to a fine of up to Kl00,000. 2.3 S bcontracting is not permitted Page 4 u9der the standard terms and conditions for~Timber · A9thorities, subcontracting is not permitte . Whe re a customary group proposes to contract the ha vest of t ~mber under a Timber Authority, it should nter into a s les and Purchase A reement (see Attachment 2). The c ntractor should then apply for the Timber [Authority. A;ts is noted later in these Guidelines, the customary o ers of timber can negotiate fully on the price which is paid by the contractor for the timber. 'llhey are not o~liged to accept the prevailing royalty ra~es. H9Cever, the prevailing royalty rate is the !minimum aJ ount which landowners must be paid. W~ere a Timber Authority is for roadline clearance or a~icultural clearance the agricultural dev loper or road builder (where they themselves do not 'ntend to ca ry out the forest clearing) may assist t .eir tractor to apply for the issue of a Timb r hority, but the Authority will be issued in the name the company which is to undertake the harvesting. Ti er Authorities are non- transferable (se Section 87(4) Forestry Act) . GUIDELINES FOR TIMBER AUTH RITIES Vl . 4 3: Lodging an App 'ication 3 • lication for a Timber Authorit 3.1 where to lodge the form All aphlications for Timber Authorities must be ade on t he pr,::!scribed form ( see the forms TA-01 to TA-0~ in Attach~ent 1 of these Guidelines) and must be lo~ged with t e Managing Director of the Forest Authority at 3.2 I Forest Head uarters Hohola or osted to PO Box 5055 Boroko. If a r:!gional or provincial forestry office recrives an application for a Timber Authority they will ~eturn the ap~lication to the applicant with a written advice that t1e application must be lodged at the Manag·ng Direct)r's office. What lust be lodged with the Application? There re four different application forms for T'mber Author'ties: TA-01 Timber authorities for harvesting undef 5,000 cubic m~tres of timber per year for dorestic processing TA-02 Timber Authority for roadline clearance TA-03 Timber Authority for agricultural cleafance TA-04 Timber Authority for other forest produce The fo~r different kinds of Timber Authority havb differ nt requirements for supporting documentat~on . These re set out on the Timber Authority form, ~nd are discus;ed in detail in Sections 5 to 8 below, wh~ch cover ::!ach different kind of Timber Authority. hey are brLefly listed below in Table 1. The ap lication must also be accompanied by a KlOO applic tion fee. If it is a cheque it should be made out to "PNG Forest Authority" . An application for a Timber Authority will not be acce t:!d for processing unless all the reguired I docume1ts are attached to it and the application fee is includ:!d. If an application does not contain al~ the requir:!d information, it will be sent back to thr applic1nt along with the KlOO application fee. transf::!rred into the Permits Table which is a mo e perman:!nt record. GUIDELINES FO TIMBER AUTHORITIES Vl.4 Page 5 3: Lodging an Application Page 6 1, I All TA Applications: I Kl00 application fee l IPA Certificate for the activity and location covered by the Timber Authority (if foreign enterprise) Consent by Landowners (Incorporated Land Group or Clan Agents if customary land) I Copies of all agreements with landowners, including Sales and Purchase Agreemt nt. Copies of agreements for processing or marketing of forest produce Description and map of proposed pro:ect area showing areas of over 30° slope and land t enure Utilisation plan for forest produce harvested Where the application is for renewa. or exte nsion of a previous Timber Authority, a r,port on the activities undertaken , the quantity harvested and details of utilisation THE FOLLOWING DOCUMENTS ARE ALSO REQUIRED, ITA under 5, 000 m3 TA-01 ! ~•A for Roadline Clearance TA-02 ' l'.A for Agricultural Clearance TA-03 1 '.A for other Forest Produce TA-04 No further documents required Map of proposed road route Details of road design including al.gnment and standards in accordance with DOW ma1ual Details of construction including c<~st, funding, contracts, and implementation sched1~le Letter from Department of Transport approving route, construction timetable, and <onfirming funding for construction and ongoini~ maintenance Letter from Department of Works app1roving standard of construction I Less than fifty hectares1 Description of agricultural project and implementation schedule More than fifty hectares: l Detailed agricultural development p:an approved by Department of Agriculture and Li, es tock Supporting letters from DAL and any other relevant industry body as to viabil ty of project Evidence of intention to carry out 1roject Implementation schedule for clearini and planting approved by DAL Environmental Plan approved by DEC er letter of comfort from DEC Evidence of adequate land tenure ar1angements Description of forest produce to be harvested and quantity to be harvested per annum 1 I Table 1: Information to be lodged with Timbe r Authority Applications GUIDELINES FOR TIMBER AUTHCRITIES Vl.4 C· 4. 4.1 4.2 ·1 4: Processing Appl cations Proce~ sing of applications All ap lications received must be registered in Forest Authority Database under the Timber Autho A lie tions Table, regardless of whether or not' are ac~epted . Once a Timber Authority is actual issued, the information in this table will be transf rred into the Permits Table which is a mo e perman3nt record. The Tiµlber Authority Applications Table records follow~·ng information about the application: · A plication ID number (allocated by the Fo est A thority); · P\r.-oject name; AFoplication date; Af.plicant particulars; T~·mber Authority type; S atus ID; ~ marks (for example, the reason why an alpplication has been returned). Timber1 Authority applications will receive an I prece~ed with the letters ATA, in chronological of receipt. When the Timber Authority is actua grantedld, this application number will be change match the numbering system currently used in th Permiu~ Table in the Database. Check'ng applications for completeness Timbe~ 1 Authority appliJations which are receive Manag4ng Director's Office will be forwarded to Resounce Development Division action officer, w first lcheck the application for completeness be is acdepted. The tion officer will check that number order ly to by the the o will ore it he application form is filled in properly and igned; he applicant is a registered forest indus ry articipant; '.f the applicant is a foreign company, it as IPA .pproval for the activity and location cov red by .he Timber Authority application; 11 the required documents are attached; KlOO application fee is included. A det1iled checklist setting out the steps for ,hecking an ap lication is contained in Attachment 4 of 1hese Guide ines. If any of the required accompanyin GUIDELINES F)R TIMBER AUTHORITIES Vl.4 Page 7 4: P ocessing Applications 4.3 4.4 Page 8 d cuments are not included, the application will be s~nt back to the applicant together with thl KlOO adplication fee. A 1:sample letter for accompanying an applica ion which is sent back, is included in Attachment 5.1. A copy of t ~is letter must be sent to the regional an provincial : ~:i:::: that an application has been retur~ed will be noted in the register, and a copy of the apilication waj11 be kept on file for future reference i case it is resubmitted. 1: Er aluation of Applications O~ce an application has been accepted, it w:11 then be e[ aluated. T~e Forestry Act requires Timber Authority pplications tq be evaluated by the relevant Provincial liorest M~nagement ~ommittee with assistance from tl1e National Forest Service. T l streamline the processing of application~, eialuations will be undertaken by staff of 1j:he Resource Development Division with assistance from the relevant r ~gional and provincial staff. D1fferent criteria are used to evaluate the four d~fferent kinds of Timber Authority. These Guidelines sit out in detail the criteria which are to be used for e~aluating the application (see Sections 5 o 8 below a~d the detailed checklist for evaluation sEt out at A-tltachment 4). AJl.key issue in evaluating applications is t ~ ensure t 1 at landowners have given proper consent tc, the p oject. This issue is dealt with in more etail later irl these Guidelines (See Section 9 below). TJe main role of regional and provincial pe1rsonnel will b~ to assess landowner awareness of the pro1osed Timber A~thority, and to ensure that requirements 1egarding l9ndowner consent to the issue of the Timbe1 Authority a J e met . E aluation Report TJ e results of the evaluation will be preserted in an Evi~luation Report to the Provincial Forest :r-ianagement c5mmittee. The Evaluation Report must state a positive o~I negative recommendation as to whether or not the a~plication s hould be accepted. If the reccmmendation is negative, reasons should be given. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 ., " 4.5 4: Processing Appl'cations The e~~luation report will be made available to he regionfl office for comment before it is forwardfd to the Pr vincial Forest Management Committee. How[ver, if thece is delay in receiving regional office comments these an be provided by Regional Office direct o the Provin ial Forest Management Committee. Consultation with other agencies Other overnment agencies will be involved in the grant of Ti er Authorities where the project is not a forest y project. Projects involving roadline clearance and agricu tural cleara ce are not forestry projects. A Timber Author'ty is issued in these cases to allow the commer ial use of the timber which is a by-product of land c earing in preparation for development. The Focest Authority and the Provincial Forest 1 Manage ent Committee will be mostly concerned to ensure that t e projects are genuine, and to attach ter sand condit'ons to the Timber Authority which fit the project scope and timing, negotiated with the lire agenci s responsible for them (Department of Agricu ture and Livestock in the case of agricul ural projects, and Departments of Transport and Works, and provin ial departments in the case of roads). h these Guidelines contain specific condi ions se types of projects, consultation overt e issue f particular Timber Authorities will also be requir d during the evaluation stage, especially when draft rimber Authority conditions are being set. 4.6 Draftlng of Timber Authority Once an evaluation is completed, the Resource Develo ment Division will calculate an appropria e perfor ance bond, and draft recommended terms anp condit'ons for the Timber Authority. The formulf for calcul~ting a performance bond is set out in Sec ion 10 below. Many of the terms and conditions will be standarp ones, similaL to those contained in the standard Timbe Author'ties which form Attachment 6 . varia e terms and conditions may include the follo ng: rmitted annual allowable cut; rmitted annual allowable area for harvesting; rm; I econditions for the issue of further Timber thorities • GUIDELINES • J. I TIMBER AUTHORITIES Vl.4 j Page 9 4: P ocessing Applications 4.7 plication and Evaluation Report referred to 4.8 4.9 ovincial Forest Managsment Committee O ce the application has been evaluated and an E 1 aluation Report prepared with recommendations, the Resource Development Division Action Officei will f6rward the application to the PFMC to etheri with the eJa1uation re ort and a draft Timber Author't, under c ver of a letter signed by the Managing Di ector . A cqpy of the letter must be sent to the Board S1cretariat and to the regional office. A !sample letter advising the PFMC that the <lpplication h~s been evaluated, and enclosing the application, evaluation report and draft Timber Authorit), is set o tin Attachment 5.2. P~MC evaluates the application and if it approves the application, refers to Provincial Ft rests Minister T~e evaluation prepared by the Forest Author ity R~source Development Division will be consic~ered by the PFMC in coming to its decision as to whetheJr or not to rl 1 commend a Timber Authority application to the P ovincial Minister. T e Provincial Minister can only grant a Ti1~ er A~thority where the PFMC has recommended it and the Bard has consented, under Section 87(1) of the F ,restry Act: I 8 7 ( 1 ) Upon the recommendation of the Prol incial Forest Management Committee and the consent cf t he Board under Section 89 and otherwise subject to this section and to Sections 88 and 89, a provincial Minister shall grant to a registered forest industry participant 4 Timber Authority •. . (description of different type1 of Timber Authorities follows). B sis for PFMC evaluation I u,der Section 89 of the Forestry Act, the PFMC eTaluation should be made against specified criteria: s 7 (2) An evaluation of an application will be ade against (a) the National Forest Policy: and (b) any relevant provincial government policies, provided they are not inconsistent with the National Forest Policy: and (c) the commercial viability of the project (including the financial resources of the applicant, the past performance of the applicant in forest industry and olther projects, analysis of projected cash flows and the anticipated net benefit to the resource owners and to the State), Page 10 GUIDELINES FOR TIMBER AUTEORITIES Vl.4 II I 4: Processing Appl cations If the~PFMC requires further information or assi~tance in eva uating the application, it can approach the Resour ,,e Development Division or the Regional ol ice See Se ,~tion 89 of the Forestry Act: J 89 ( 3) In making an evaluation under this secti on , a Provincial Forest Management Committe e may requife the a sistance of the National Forest Service and of any r 1levant Department. I (4) Where the Provincial Forest Managemfnt Ci mmittee, after having considered and evaluated an a plication, is of the opinion that it is satisfactory it s all recommend to the provincial Minis ter to gran a T~mber Authority to the applicant. Altern1ttively the PFMC may seek further informat'on direct+y from the applicant. 4.10 ChanJ ing the Standard Draft Timber Author 1 ty 4.11 I It sho1i-1ld be noted that draft Timber Authorities which are fop;arded to PFMCs by the Resource Developme t Divisi~~ will conform to these Guidelines. Any , alteral ion to these conditions may mean that the Board will n , t consent to the issue of the Timber Auth rity. If a P~Mc proposes to change the draft Timber Author .ty, it should consider whether the proposrd change!~· will still conform to the Board's requir~ments. PFMCs , r regional office staff who assist them c n check ith Resource Development Division staff tat propos~d changes to terms and conditions will st'll meet t 1 ~1e requirements for Board consent. 1 In ord!r to streamline the processing of Timber Author.ties sent in from Provincial Ministers fo Board consent, the PFMC (or regional office staff who ssist them\ s;hould inform the Resource Develooment Div 1ision if the terms and conditions of draft Timber Auth)ritv have boen altered when the PFMC makes its recornrn1Jndation to the Provincial Minister . If the Resource Development Division is notifiedj that the drl ft terms and conditions of a Timber Autho~ity are to be changed, it should alert the Board ' Secret5riat so that the proposed Timber Authoritr can be prowerly checked for compliance with the Guid lines when it comes through for Board consent. Provj'lncial Minister notifies Board of int ntion to issue Timber Authority and requests co sent When a Provincial Minister proposes to act on th recornrn ndation of a PFMC and issue a Timber Auth rity, he or j he must first give notice of that intenti , n to the BoTrd- see Section 89 of the Forestry Act: GUIDELINES FO, TIMBER AUTHORITIES Vl.4 Page 11 4: P ocessing Applications 4.12 I I I 8 9 ( 5) On receipt of a recomrnendation 1 under Subsection (4) (from the PFMC), the provincial Minister shall give notification to the Board that he intends to grant a Timber Authority over the project area and s hall request the consent of the Board to the grant. (6) Where the Board does not respond to a notification under Subsection (5) within four weeks of the date on which notification was given, consent! to the grant of the Timber Authority to which the notificat ion r e lates, shall be deemed to have been given. I~ giving notice, the Minister must forward Ito the Board a copy of the Timber Authority which she or he prloposes to issue, together which any other documents wHich form part of the Timber Authority (such as d~velopment plans, feasibility studies etc . {. If the Minister does not forward a copy of the Timl~er A~.thority, notice will be deemed not to havE been given uj der the Act. NJ tification operates from the time of recei pt by the Bgard. If the copy of the Timber Authority is lost in t~e post, it will not be deemed to have bee1 notified to the Board. oard consideration of proposed Timbep uthority I should be noted that the Board has only iour weeks tq refuse to consent to a Timber Authority c>therwise c~nsent is deemed to have been given. Thenbfore, p oposed Timber Authorities received from PJ1ovincial M'nisters will have to be evaluated by the Resource D~El 1 velopment Division as a matter of urgency I the proposed Timber Authority conforms tc the s andard conditions specified in these GuidElines , u 1 gent Board consideration of the request fc>r consent will not be sought . In these situations consent to the Tajmber Authority will be implied by the BoaJrd' s lack of r1sponse within the statutory four week peri od (see Section 89(6) of the Forestry Act). This wi ll e ~;iminate much unnecessary Board processing of Timber A ,thority notifications. I W~ere the Timber Authority does not conform to the Guidelines, an urgent "walk-around" Board Slbmission waj'll be prepared to enable the Board to comlider the aPiplication and, if it wishes, to refuse cortsent to the a 11 plication within four weeks , of the notifi ation . B1cause of the urgency of Board consideraticn, the R9isource Development Division will have to ~ake its a ·sessment of a proposed Timber Authority wi thin strict t'me limits. Page 12 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 5. 5.1 5 • Domestic Processing Timber Authorities, (TA-01) I Domes ic Processing Timber Authorities (T -01) Evalu j ting applications The ma·n concerns in evaluating domestic processing Timber Authorities are to ensure that t e Act is complied with; t e project is genuinely for domestic proci ssing; 1 ndowners have been fairly treated and ha~r given proper informed consent to the project; anj ~ h rvesting of the timber will be by select·on 1 gging and environmental standards will be served . Evalua ion will be undertaken by the Planning se 1 ction of the Resource Development Division with assistance from R gional and Provincial staff. 5.2 Crite .ia for Evaluation =..=..,="-!==-"'O=n=e: Annual allowable cut must be unde 5 000 cubic etres The application must specify an annual allowable cut under 5,000 cubic metres. If the applicant already has another Timber Authprity within 10 kilometres of the boundary, then the t tal annual allowable cut is 5,000 cubic metres. For th ~ purposes of fixing the cut in the Timber AuthorLty which is applied for, the cut for the existiig Timber Authority should be subtracted f om 5,000 . The balance remaining is the maximum cut allowei for the new Timber Authority. Both cuts should always add up to no more than 5,000. If there a e alread two other Timber Authorities held by the applic~mt within 10 kilometres of the boundary, peduct the cu,:s for both of them from 5,0000 . The amou t remainLng is the maximum allowable for the third, propos~d Timber Authority. If the applicant applies for more than one Timbe Authort tY at a time, and the boundaries of the T'mbe r Author}ties are within 10 kilometres of one anot er, the tor al volume applying to all the proposed Tter Authorr ties is 5,000. • If it iippears that the applicant is seeking a nu er of Timber lAuthorities in order to construct a projept with a permf tted cut well in exce ss of 5,000 cubic metres, then t ~1e project is probably not appropriate for' a Timber Authority and should be reconsidered as a 1 forest GUIDELINES Foy. T I MBER AUTHORITIES Vl .4 Page 13 + 5: D mestic Processing Timber Authorities (TA-01) 5.3 dfvelopment project under a Forest Manageme. t Aq;reement. N, te also that the volume is an annual maxif um. Only srooo cubic metres may be harvested in any ?ne twelve m©nth period. Some Timber Authorities have been issued ib the past which give a right to a further allowable c~t after the 5,000 cubic metres has been e hausted. T&is is not permitted. Once the 5,000 cubic metres has been cut, harvesting must cease until the first abniversary of the date of commencement of the Ti mber Aithority, when a further Timber Authority can be i t sued to authorise harvesting of a further 5,000 cubic mt tres over the next twelve months. C: iterion Two: The area of the Timber Authokity must n~t be inside a Forest Mana ement A reement Area A!check should be done with the Mapping and A, quisitions Branches to ensure that there ~s no Forest M~nagement Agreement over the area of the p~oposed Timber Authority, and that there is no application for a I! Forest Management Agreement over the area 1. Timber Aathorities cannot be issued over an existing Timber Aithority area. fli . . d . . mb h . th I it is propose to issue a Ti er Aut ority ove r e atea of an existing Timber Rights Purchase ~greement, special procedures apply. The Forest Authority will ntgotiate revenue arrangements with the landowner s, btcause the timber rights in these areas have alr eady bf en purchased by the State. C~iterion Three: Utilisation for domestic processing T~e Utilisation Plan which accompanied the application spould specify the sawmill or other processing facility wfich will use the timber. Timber harvested unde r an Afthori~y for 5,000 cubic metres for domest~c processing must not be exported in log form. 11 Lr ndowner Issues Clan agency agreements should provide the basis f or c ~nsent give n by landowners to domestic process ing Timber Authorities, where no Land Groups are in e*isten~e. The for~a~ion of Land ~roups ~Of these s t all timber authorities would be impractical. · Wtere consent to the issue of a Timber Authority is to b given by a Clan Agent, the consent form must be s 11 gned in the village where the customary resource oyners reside, and must be witnessed by the Village Cfurt Magistrate or the local land mediator. Thi s is i f tended to provide maximum protection agaihst agency c f nsents being given without the knowledge of the m jority of landowners. Page 14 ' GUIDELINES FOR TIMBER AUTHORITIES Vl.4 (\ 5.4 5: Domestic Processing Timber Authorities , (TA - Ol) 1 I . . Loca i orest Authority staff may undertake a sit to con:irm that the consent is valid and that al have b.en included. visit clans R~v~nu~ arrangements proposed must reflect at least the minimu~t royalty rate ( see Section 9. 2) . Condi ~ ions attaching to Domestic Processin, Timbe J Authorities Standa~·d recommended conditions for Timber Autho f or do~1estic processing appear in the draft Timb Author .ty at Attachment 6. Term a id ermitted cut ities r The ma1i mum recommended duration of a domestic proces j ing Timber Authority is one year. The pe mitted annual cut must not exceed 5,000 cubic metres anQ export of the timber in unprocessed form is not I permit ed. Where two or more Timber Authorities focated within ten kilometres of each other are held by he same p •rson, the total annual permitted cut cann t exceed 5,000 cubic metres . If the applicant has . not declar .d the existence of another Timber Authority within 10 kilometres of that which is applied fo, t hen the Tilber Authority is void . Prohib tion against subcontracting If subJ ontracting were permitted under Timber Author{ties, then large contractors would be abl to avoid t he 10 kilometre rule by establishing land , wner compan~ es to apply for the Timber Authorities. Accordl ngly, subcontracting (other than by the employriient of individual contract labourers) is I prohib1'.ted . Harvesting by any person other than the person or company named in the Timber Authority ·s an offenc i and will lead to cancellation of the Ti er Authorl ty. Enviro,1mental and Forest Management requirements, Timber Authorities for domestic processing autho 1 ise harves~:ing by normal selection logging methods a,ji..med at sustaimed yield. The Timber Authority will be sueject to the1Code of Logging Practice and the Key Stan?ards for Se .. ection Logging. until these standards befome part o: regulations, they should be attached to ~ach Timber Authority for domestic processing as supplei entary conditions . (Copies of the Key St ndards can be obtained from the Operations Division or rom the Re,;ource Development Division of the PNG For st Authori ty.) · GUIDELINES FOl l TIMBER AUTHORITIES Vl. 4 Page 15 5; Do estic Processing Timber Authorities (TA - 01) 6 . 6.1 Domestic processing Timber Authorities will e subject toi' payment of a performance bond. The formula for ca culating the performance bond is set out below (see Se tion 10). Rerenue I Proposed revenue payments to landowners will be inpluded as a condition of the Timber Authority. These witl be drawn from the Sales and Purchase Agreement sutmitted for each clan. Fo 1 est Management and Reforestation levies wk11 be also ap lied to Timber Authorities. Section 9 details the pr cise amounts of these levies . Until such time as thkse levies are imposed by regulation and or Mihisterial notice, payment of them will be specified in 1 the Timber Authority terms and conditions. I Re enue will be payable on all timber scaled and mohthly summaries of scaling must be submitted to the PNf FA Revenue Accountant at Forestry headquarters, with log scale record sheets attached. Receipts should be at}ached to each summary to show payment to landowners has been completed . Cheques for payments due to Prbvincial Government, the Forest Authority and the Internal Revenue Commission should also be a~tached. Fa'lure to make payment of these amounts within the time limits provided will result in suspension of the Tit er Authority. Ti~ber Authorities for Roadline Clearamce (11:A-02) Evaluating applications Th 1 main concerns when evaluating an applicaltion for ro 11 dline clearance are to ensure that- 1 the project is a genuine road construction project; harvesting is confined to the minimum area necessary for the road to be built; landowners have been fairly treated and have given proper informed consent to the project; and environmental standards will be followed in the 1 harvesting and construction. I Ev luation will be undertaken by the Planning Section of lthe Resource Development Division with assistance fr m Regional and Provincial forestry staff. I Page 16 GUIDELINES FOR TIMBER AUTHO~ITIES Vl.4 Q ,. 6.2 6: Timber Authorities for Roadline Clearing 1 (TA-02) Critef ia for evaluation Criterion One: The ro·ect must be outside an Timber 1 Ri hts Purchase or Forest Mana ement A Area 1 Road c 1 nstruction under Timber Authorities is on~y permisf.ible outside the area of an existing Timbfr Rights Purchase (TRP) area or Forest Management II Agreem~nt Area. Within a TRP area or Forest Manfgement Agreem~nt Area the timber rights have already bern acquir~d and cannot be sold again. Road construption can oc~ur through these areas, but only by arran~ement with tie Forest Authority and any permit holder. I A chec~.: should be made with the Policy and Plann· ng Divisi~m (Mapping Branch) to ensure that timber ights over t1e area have not already been acquired. CriterLon Two: Evidence that the road will actuai ly be constructed I There ~1ave been a number of Timber Authorities i the past which have been issued for roadline clearan , e. In some c ,tses no road was ever constructed. , The mo?t certain way to ensure that a road will e constri1cted is to insist that funding for the const ·uction is secured first. Reading is expens ve. Even the lowest rade lo in road c nnot be pail for with timber harvested from its corri or. Thus it is not feasible to fund a roading proje t entirely from the proceeds of harvesting. The FoJestry Authority must satisfy itself that }he projecf. is viable and that the road will actuallf. be constr~1cted. Accordingly, applicants must provi e the follow~ .. ng evidence that plans are already in pla , e for the road to be built- · c Jipy of construction contract ( if the appli ant is n9,t going to undertake construction); d~tails of equipment and manpower suitable for r ~ad construction and evidence of past expe ience wtth road construction (if the applicant is to undertake construction); d .tails of cost of road construction and so , rces o' funding; i tplementation schedule showing planned rat and 1 cation of harvesting and road constructio , . It sho~.ld be noted that to be effective, road constr~ction should take place within three to stx months of clearing, or the bush will begin to gr ,w back and cli aring will have to be repeated. The eval ation should therefore ensure that the implementation GUIDELINES FO, . TIMBER AUTHORITIES Vl. 4 Page 17 I 6: T 'mber Authorities for Roadline Clearing (TA- 02) 1 I schedule shows road construction following c1losely bdhind clearing. I. . h C1nterion T ree: Roading will be of an aI~proved sJa nd a rd ds built under Timber Authorities have been c ted to no particular alignment or sttandard, a~parently for the primary purpose of harve~ting timber f:r:/om the cleared road corridor. P loblems will result if the road does not mj et proper s~andards or is not on the correct alignmenu to meet up w.ilth other roads in the area. If constructjron of a rdad has not been approved by the appropriatte a~thorities then there may not be adequate 1mnds in the f 1 ,ture to maintain the road. In order to ensure that the road constructic~n is p~operly authorised, the Department of Tran:f POrt or r1levant Provincial Department is required yo provide a letter certifying that the road route is in accordance w.ilth relevant Provincial and National infra~tructure p:Uans and that funding is available to maini,ain the rdad in the future. A letter is also required from the Ddpartment of Works to the effect that the f~tandard of cgnstruction proposed is appropriate to the lnature of t i e road and that the alignment is acceptabi e. I ~ is the applicant ' s responsibility to provide tJese certificates. Applications which are submitted w'thout certificates will not be accepted. I • I c iterion Four: Minimum disturbance of t,he forest TJ e third criteria for evaluating a Timber Authority fdr roadline clearance is the amount of clearing p~oposed. Some Timber Authorities have pronosed c ~'earing of corridors up to 1 kilometre wid~ (more than 39 times the width of the road), which caus~ great unnecessary damage to the forest. T~e Forest Authority Report on Sustained Yii ld Forest H~rvesting-Roading and Selection Logging St,andardsl re.commends a maximum clearing width of 40 mE~tres for a ~l roads. A~~. ordingly, any application which proposes a clearing w1ctth in excess of 40m should be rejected . The a~~licant m~y be ~nvited to resubmit the ap1lication using a maximum width of 40 metres . N~ Timber Authority which proposes a clearing width of mare than 40 metres will be approved by the Board . FM P, PNG Forest Authority, Toward Sustained Yield Commercial est Harvesting-Roading and Selection Logging, October 1994 Page 18 GUIDELINES FOR TIMBER AUTHdRITIES Vl.4 0 (1 6.3 6.4 6: Timber Authorities :£or Roadline Clearing' (TA-02) Landofner issues Clan a!gency agreements should be the basis for 5onsent given y landowners to roadline clearance Timbe~I Author'ties, where no Land Groups are in existe ce. The fo mation of Land Groups for small Timber Author~ties would be impractical. Where f onsent to the issue of a Timber Authorit is to be giv~n by a Clan Agent, the consent form must ~e signed in the village where the customary resou~ce owners reside, and must be witnessed by the Vil~age Court ~agistrate or the local land mediator. Tis is intend d to provide maximum protection against gency consents being given without the knowledge of tI majority of landowners. Local ~orest Authority staff may undertake a sit visit to confirm that the consent is valid and that all landof ers have been included. Condi t ions attaching to Roadline Clearance Timber Authorities Standa~d recommended conditions for Timber Authorities for Ro~dline Clearance are at Attachment 6. Th main recommended conditions relate to ensuring that harves/ting is followed closely by construction nd that proper environmental precautions are employed. develo ment authorisation It is ost important to note that harvesting should be author·sed in stages, to ensure that the road is actual y constructed. Construction of the prev·ous sectio of road must have begun before a furthe Author~ty will be granted. The ma1Kimum length of road corridor clearing to be permitted at any one time is 5 kilometres alon a corrid r of not more than 40 metres width (maxi um area of 20 ectares). Harves[ing can be authorised in further 5 kilom~tre instalments, provided there is evidence of roa constr ction commencing in the area already har 1 ested and pr vided the applicant obtains a certificate from the lo al Department of Works office confirming ,the lengthi of road constructed and that it has met he requirr d standard. Enviro 1 nmental Standards The Key Standards for Selection Logging are not appropriate to a clear felling operation and wi 1 not be app ied. It is a standard condition of the ~imber Author'ty that all environmental legislation in luding GUIDELINES FOIR TIMBER AUTHORITIES Vl. 4 Page 19 6: T'mber Authorities for Roadline Clearing (TA-02) t e Environmental Contaminants Act and the water Resources Act should be observed, as well as any ehvironmental plan which may have been submitted or rkquisitioned. In addition, any standards set by D~partment of Works which apply to the road must be alihered to. P!~ohibition against subcontracting I s l bcontracting (other than by the employment of i~dividual contract labourers) is prohibited under T~mber Authorities. Road construction contractors who ! 'sh to subcontract the clearing work should arrange r the harvesting contractor to apply for the Timber thority. Harvesting by any person other than the pbrson or company named in the Timber Authority is an o~fence and will lead to cancellation of the Timber Abthority. Pl~rformance bond A mance bond will be required for Ti$er A 1 hor1.t1.es for roadline clearance. This i1s described br low in Section 10. Revenue P~oposed revenue payments to landowners wil!l be ir,cluded as a condition of the Timber Authdrity. These w~·11 be drawn from the Sales and Purchase Agreement s 1 bmitted for each clan. Revenue payments will be b ' sect on logs scaled not on logs exported. Fill rest Management and Reforestation levies Jwill be also a plied to Timber Authorities. Section 9 9etails the p ecise amounts of these levies. Until such time as t ese levies are imposed by regulation and 1 or M~nisterial notice, payment of them will b~ specified i f the Timber Authority terms and conditio~s. Revenue will be payable on all timber scal~d and monthly summaries of scaling must be submi ted to the Pfi'GFA Revenue Accountant at Forestry headqu,arters, with lpg scale record s heets attached. Receipt~ should be a~tached to each summary to show payment t~ landowners has been completed. Cheques for payments dlue to Pfovincial Government, the Forest Authority and the rpternal Revenue Commission should also be submitted. Fkilure to make payment of these amounts w~thin the t'me limits provided will result in suspension of the T"mber Authority. I Page 20 GUIDELINES FOR TIMBER AUT~ORITIES Vl.4 ll .. " ,, 7: Tl~ber Authorities for Agricultural Clearing (TA-03) 7. Tirnbev Authorities for A ricultural Cleara , ce · (TA-03) 7.1 Evalu~ting applications 7.2 Timber Authorities can be issued under this cate ,ory to cover all forms of clearing for agricultural and other land u~e. These include reforestation, plantati n develo~ment and development of infrastructure ot er than r q,ads . Key corlcerns in evaluating agricultural and othe land use cl4arance Timber Authority applications will be to ensure that t ~e project is genuine; c 3r.earing is confined to those areas require for i ~unediate agricultural development or other1land u~e• I , , l ~ndowners have been fairly treated and hav given p~·oper informed consent to the project; I t qere are no significant environmental risk a ~sociated with the project . Evaluatiion will be undertaken by the Planning Se tion of the Resource Development Division with assist nee f r om Regional and Provincial forestry staff. Agricu~tural and other land use .projects vary gr atly from small scale clearing for subsistence garden~ to massivd plantation developments. Small scale prfjects are trJ ated differently and less documentation i required to support the application. ' Re qui ~ ernents for evaluation of small scale p r ojects (under 50 hectares) Where ~he area to be cleared under a Timber Auth rit y isles~ than 50 hectares, the Forest Authority w'll r equire only a project statement setting out tqe nature of the proposed land use; who is to carry out the land use; a 1 description of the precise area of the lad use; tqe proposed timetable for implementation. In most cases, no further information will be Where ~t appears that the project will have a signifi cant impact on the local environment or population, or there is reason to believe that subseq~ent land use may not occur, the Forest Au may re~uire more information about the project b evaluating the application. e hority fore GUIDELINES FO~ TIMBER AUTHORITIES Vl.4 Page 21 ' 7.3 C 1 iteria for evaluation of large scale projects Page C: ver 50 hectares) I C iterion One: The project must be outside an existing T~mber Rights Purchase or Forest Management Agreement I A["ea I T'mber rights can only be purchased from customary o ners where the timber has not already been acquired b , the State or the Forest Authority. A 1 check should be made with the Policy and Planning Dfvision (Mapping Branch) to ensure that the area has not been already acquired. c l iterion Two: The project must be viable and approved b the relevant department I were the project is an agricultural development Pf Oject, the following supporting documentat ion i s required to confirm that the project is via~le and has a 1 relevant approvals • I detailed agriculture development plan approved by I the Department of Agriculture and Livestock (DAL) as a true and accurate statement of the project; supporting letters from DAL and any other r e levant industry body to the effect that the project is viable. T"mber Authorities will be issued in stages to ensure tat the project development begins before furthe r AUthorities are issued. A detailed implementation s bhedule to facilitate this will be require~ . The applicant must provide a detailed implementation Sfhedule approved by the Department of Agricultur e and Livestock, with the application for the Timber A thority. I F?r other land use projects, the department responsible ftor authorising the development must provide supporting d .cumentation confirming that the project is approved ad viable, and must similarly specify the precis e s 1 ages in the development when authority to clear fell i r required. Ir is the responsibility of the applid ant to s r cure these approvals. Criterion Three: Evidence the project will go ahead I ii dd ' t' h h . . . n a i ion to assurances tat t e proJect is viable, the Forest Authority will also require some evide nce of i~tention by the developer that the project will go amead. The high value of timber and the lo~ cost of c ear felling operations mean that it is tempting for GUIDELINES FOR TIMBER AUTl~ORITIES Vl. 4 0 .. 7: Timber Authorities Eor Agricultural Clearing j(TA-03) developers to clear land and abandon the subsequ nt agricultural development. Becaus$ of the close link between clearing and planting, a Timber Authority will be one of the ast steps required in the preparation for an agricul ural project. A Timber Authority should not be issue until the project is in the advanced stages of preparation. In the case of oil palm, for example, limited sufply of seedlings around the world means that they must ,e ordered well in advance of any clear felling . The Authority will require some evidence of commr·tment to the project, such as production of letters, invoices, or orders showing ordering of relevant , suppli~s, contracts for future sale of agricultu al produce, evidence of guaranteed markets etc. (I ·, the case of oil palm, the Authority would expect to ·ee seedlings ordered; nursery established; site survey and tenders called for mill construction.) It should be remembered that the lack of a 1 Timber Authority will not stop an a9ricult~ral projec t from proceeding . There is nothing 1to stop a developer from clear felling and bu~ning for planting. The only reason a TA is required is to allow the commercial harvesting of t,e trees which are to be clear-felled . Criterj on Four: place Environmental safe uards are in I Environmental standard setting and monitoring of l agricultural projects is the responsibility of t r e Department of Environment and Conservation (DEC) Before a Timber Authority is approved for an agricultural or other land use project, DEC shoutd approved an environmental plan for the project Of should indicate in writing that it does not requ re a plan. It is the responsibility of the applicant to sec re approval or a letter of comfort from DEC. Criterion Five: must be! in place Ade uate land tenure arran e ents ' I Unless the crops (or other improvements to the lJnd) are going to be owned by the customary owners of 1 the land, the land must be transferred from customar land to agricultural leasehold land before the agricuttural development takes place. This is because any pl nting on customary land legally belongs to the owners f the land, not to the company which put it there. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 23 7: 7 . 4 l TJmber Authorities for Agricultural Clearing (TA-03) : Were the land for the project is customary land ( nless it is a small-holder development by the cdstomary owners themselves), the Secretary of the odpartment of Lands and Physical Planning iB required t ~ provide written confirmation that the area for development has been transferred into agricultural 11!asehold. L ndowner issues s 4all scal e projects under 50 hectares Fj r projects involving less than 50 hectaref3, consent td the development and the issue of the Timber Adthority may be given by clan agents on behalf of each c ~an (if no Land Groups are in existence) • . II · f 'mb h . . t Wtiere consent to the issue o a Ti er Aut ority is o b~ given by a clan agent, the consent form must be s ~gned in the village where the customary resource owners reside, and must be witnessed by the Village cdurt Magistrate or the local land mediator 4 This is iqtended to provide maximum protection against agency consents being given without the knowledge of the m~jority of landowners. LJ cal Forest Authority staff may undertake a site visit t q confirm that the consent is valid and that all landowners have been included. LJ rge scale projects over 50 hectares W~ere a proposed agricultural or other land use project i9volves an area of more than 50 hectares, t he Forest A~thority will require the formation of Incorporated L1nd Groups to give consent to the project and to r ~ceive any landowner revenue not distributE:id directly to individual tree- owners. I: . Joint Venture arrangements AJ!ricultural projects involving joint ventures be tween l ~ndowners and developers should be carefull y examined t9 ensure that the proposed arrangements aro c9~ercially fair to landowners. Past experience of l~ndowners entering into unfair arrangementB without i~dependent advice have made it necessary t<) ensur e t;.at the joint venture arrangements are pro1rerly s .rutinised . Other agencies will be asked t o care fully v t any joint venture agreements. wtj1ere a joint venture is to undertake the aqricultural d6ivelopment, the company which is to undertake the a 9tual harvesting should apply for the Timber A thority. Page 24 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 .,. .. · 7: Timber Authorities for Agricultural Clearing (TA - 03) 7.5 Standard conditions for Agricultural clear nee Timber Authorities I The For est Authority will examine proposed condi~ions for lar ge scale agricultural or land use clearin~. closely. Standard recommended conditions for Tieu:>er Authorities for agricultural clearing are at Att chment 6. Staged authorisation of development Strict controls will be imposed on the rate of c~earing to ensure that the development project is imple~ented alongside the forest clearing, and that the foreft clearing will be purposeful. The Timber Authori y will be granted on a staged basis, ie . , evidence of I development of the first stage area will be requ·red before further areas are authorised for clearing. Conditional issue of Timber Authorities Where a developer requires some security that harvesting will be permitted before commencing t i initial preparation for development, a Condition Timber Authority may be issued. This will requi the completion of certain conditions before the Timb r Authority will come into effect. Possible conditions include completion of infrastructure (eg., nursery); site preparation; approval of environmental plan; issue of agricultural leases. The developer will be required to produce eviden e of completion of these preconditions to the Managin Director who will certify satisfaction of the 1 conditi ons and authorise harvesting to commence. Environmental Standards While certain of the Key Standards for Selection Logging are not appropriate to a clear felling operat.:Lon, a number are relevant and will be app ied. It is also a recommended condition of the Timber Authori ty that all environmental legislation inc uding the Environmental Contaminants Act and the Water Resources Act should be obeyed. If an Environmen~al Plan has been requisitioned or submitted, the tefms of approval will be conditions of the Timber Author,· ty. Prohibition against subcontracting Subcontracting (other than by the employment of individual contract labourers) is prohibited und r Timber Authorities. Agricultural developers who wish to subcontract the clearing work should arrange or the GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 25 7~ r Authorities £or Agricultural Clearing (TA-03) ' I h~rvesting contractor to apply for the Timber Atlthority. Harvesting by any person other than the pdrson or company named in the Timber Authority i s an oj 1 fence and will lead to cancellation of the Timber A thority . i Wliere a landowner joint venture company is the ddveloper of an agricultural project, the harvesting cdntractor should apply for the Timber Authority. Any agreement about profit-sharing reached between the joint venture company and the landowners, or between t tje joint venture company and the harvesting cdntractor, must be submitted with the Timber Authority agplication. I, Performance bond I A :performance bond will be required for Timber A thorities for agricultural or other land use c il'earance. This is described below in Secti on 10 . I~j! the case of large projects involving export of logs f om the project, and where there is little to g 'arantee the subsequent performance of the d velopment, the Forest Authority may require the d~posit of an accumulating performance bond. This bond will require a percentage of each monthly shipment o ~ export from the project to be lodged at the time of extport. Further shipments will not be permitted unless ttie bond has been paid. This kind of performance bond w.illl be required to secure some adequate return to 1dndowners against the possibility of a future agricultural development not taking place. RJ venue 11 ~5.oposed revenue payments to landowners will be included as a condition of the Timber Authority. These W~'ll be drawn from the Sales and Purchase Agreement I . submitted for each clan. Revenue payments Bhould be ba!sed on logs scaled, not on logs exported. F~lrest Management and Reforestation levies will be also aPiplied to Timber Authorities. Section 9 details the p~ecise amounts of these levies. Until such time as t ~,ese levies are imposed by regulation and or M"nisterial notice, payment of them will be required by T ' mber Authority terms and conditions. I I RJ venue will be payable on all timber scaled and monthly summaries of scaling must be submitted to the P~~FA Revenue Accountant at Forestry headquarters, with lolg scale record sheets attached. Receipts should be a~tached to each summary to show payment to landowners his been completed . Cheques for payments due to P~ovincial Government, Forest Authority and Internal Revenue commission should also be attached. I Page 26 ' GUIDELINES FOR TIMBER AUTHORITIES Vl.4 8. 8.1 7: Timber Authorities for Agricultural Clearing 1 (TA - 03) Failure to make payment of these amounts within time limits provided will result in suspension o Timber Authority. I I Timber Authorities for Other Forest Produc (TA-04) Evaluating applications he the The main concerns in evaluating Timber Authoriti s for the harvesting of other forest products are toe sure that the Act is complied with; landowners have been fairly treated and proper informed consent to the project; appropriate payments to landowners will be appropriate environmental standards will be observed. Evaluation will be undertaken by the of the Resource Development Division from Regional and Provincial staff. Planning Se tion with assist nee I 8. 2 Criteria for Evaluation · · n One: The application must specify the ; of other forest reduce to be harvested ' er annum The 'other forest product' must be one for which harvesting is permitted . Criterion Two: The area from which harvestin is to occur must be specified 8.3 Landowner Issues Clan agency agreements should be the basis for c nsent given by landowners to Timber Authorities for harvesting of other forest products where no Incorporated Land Groups are in existence. Where consent to the issue of a Timber Authority 1is to be given by a Clan Agent, the consent form must ~e signed .in the village where the customary resourd 1 e owners :reside, and must be witnessed by the Villaige Court Magistrate or the local land mediator. Th~s is intended to provide maximum protection against agency consent!;; being given without the knowledge of the majori ty of landowners. 1 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 27 I 8: T'mber Authorities for Other Forest Products (TA -04) 8.4 L cal Forest Authority staff may undertake a site visit t i' confirm that the consent is valid and that all clans h •ve been included. I Te Sales and Purchase Agreement must specify the p oposed rate of payment to landowners. Revenue should br payable on all forest products declared. Ci nditions attaching to Timber Authorities for harvesting other forest products Ii d d' . f 'mb h .. Sfan ard recommended con 1t1ons or Ti er Aut or1t1es fr other forest products appear in the draft Timber A thority at Attachment 6. I Prohibition against subcontracting s l bcontracting (other than by the employment of i~dividual contract labourers) is prohibited. Harvesting by any person other than the person or cJmpany named in the Timber Authority is an offence and will lead to cancellation of the Timber Authority. I ~ . . Emvironmental and Forest Management requirements l . 11 b . f . d b b . T1,1ese wi e speci ie on a case y case asis. 11 Performance Bond I Tt mber Authorities for harvesting of other forest p~oducts will be subject to payment of a performance b@nd. The formula for calculating the performance bond i t set out below (see Section 10). Revenue I! Pfoposed revenue payments to landowners will be ilJlcluded as a condition of the Timber Authority. These will be drawn from the Sales and Purchase Agreement s 1 bmitted for each clan. I R~venue will be payable on all forest products d~clared. All producers of other forest products under a II Timber Authority must report monthly to t he local Forest Authority office with details of the quantity of ol'her forest products harvested. There is no p escribed form for this report. I F ,rest Management and Reforestation levies will be also a 1 plied to Timber Authorities. Section 9 details the p:rrecise amounts of these levies. Until such time as t~ese levies are imposed by regulation and or M~nisterial notice, payment of them will be required by Timber Authority terms and conditions. Failure to make p 1 yment of revenue within the time limits pr ovided will r sult in suspension of the Timber Authority. I I Page 28 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 .. .. 9. 9 . 1 9: Landowner Consent and Revenue Arra gements . I Landowner Consent and Revenue Arrangements1 Landowner Consent Issues An unfortunate legacy of a quarter-century of fo est development in Papua New Guinea is that many, ifl not most, owners of timber feel that they have not I recover ed a fair economic return . Protecting thr interes ts of landowners is a primary goal for th new Forest Authority. Under PNG law, Incorporated Land Groups are the only corporations which can legally speak for landown~rs . Companies formed under the Companies Act (usuall~ referred to as 'Landowner Companies') have no legal power t o deal with customary land. These bodies, are legally separate and distinct from the customary owners they may represent. I The new Forestry Act contains very strong provis ' ons to ensure that landowners properly consent to fores ry projects. In the case of projects involving the long term dl:!Velopment of forest resources under a Timeer Permit , the Act requires that Incorporated Land eroups be formed to give consent to entering into the Forest Management Agreement, which is the basis for the project . To require the formation of Land Groups for smal~ projects under Timber Authorities would be impractical. Therefore, the Forest Authority will permit clan agents to giv<:! consent for Timber Authorities in some c ses. In the case of Timber Authorities for domestic processing or harvesting of other forest produce, or for roadline clearing and for small (less than 50 hectar<:!) agricultural and other land use project~, there is no requirement to form Incorporated Lanci Groups. I However, in the case of larger agricultural projle cts more than 50 hectares, the Forest Authority does :equire that Land Groups be formed to protect thel interests of landowners. Landowner Consent Forms must be submitted with e 1 ach Timber Authority application, using form TA- LOC providc:!d in Attachment 1 of these Guidelines. Tpe Consent Form must be signed in the village, and L witness ed by a Village Court Magistrate or a lanci mediator. This is intended to provide protectio~ against a Consent Form being signed by one persoh without the knowledge of the other landowners. of Where t here is any concern about whether or not he consent of landowners is genuine, the Forest Aut ority GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 29 9: 9.2 Landowner Consent and Revenue Arrangements jy conduct further investigations into the issue. A Pi:lovincial Minister who issues a Timber Authority against the wishes of landowners may be legally liable f 9r the loss of the timber, and the Forest Authority h~s ~ ~e~ponsibility to protect against this possibility. R] venue arrangements TJ ~ Forestry Act makes provision for royalties to be f~xed in Timber Permits, but not in Timber Authori ties. H9~ever, levies, such as Forest Management Levy, apply t9 both Timber Authorities as well as Timber Permits (see Sections 120 and 121). I R'~hts to timber or forest produce covered by a Timber A thority are purchased directly from the owners under a Sales and Purchase A reement. A standard form of Sales and Purchase Agreement is set out in Attachment TJo. Timber Authority holders will also have a l ~ability to make payments to government as well a s to r j 'source owners. Re~enue arrangements for Timber Authorities will be m ~e up of payments from the following categories Royalty-equivalent payments fixed in the Sales and Purchase Agreement negotiated directly with landowners. This amount will not be l e ss than the prevailing royalty rate (the proposed rate is set out below), and should be based on logs scaled, regardless of whether or not the logs from the project are exported. Royalty-equivalent purchase payments will be paid directly to landowners by the holder of the Timber Authority . A receipt evidencing payment will be required to be submitted with each monthly r e turn. Provincial Government entitlement Fifteen percent of the gross amount of the royalty equivalent amount must be paid to Provincial Government. This should be deducted from the royalty- equivalent payment and submitte d with the monthly return in the form of a cheque payabl e to the relevant Provincial Government With-holding tax In addition to deducting provincial government share of royalty-equivalent payments, 'l)imber Authority holders are also required to deduct 5% of the remaining 85% share, to be paid to the Commissioner for Internal Revenue as with- holding tax. A cheque for this amount made payable t o the Commissioner for Internal Revenue must be submitted with each monthly return . Page 30 GUIDELINES FOR TIMBER AUTHORITI ES Vl . 4 ,. II (2) 9: Landowner Consent a nd Revenue Arrai gements Le vies fixed by regulation or Ministerial :otice, or set in the conditions of a Timbe~ Authorfty . A Forest Management Levy will be applied to atl Ti mber Permits, and some or all of its comp , nents, l i sted below, will be applied to Timber Authorities PNGFA operations levy Log export surveillance levy Ref ores tation levy PNGFA operations and Refore station levies wtll all be payable at the end of each mont h, by chei ue to t he PNG Fores t Authority . The cheque s must be s ubmitted with each monthly return. Table 2 : Amo unts o f r oya l t y -equivalent an l e vy payme nts for di fferent Timber l Author ity t ypes as propo sed undek n e w reve nue system 11 Royalty PNGFA Log Export Re~ores t equivalent Oper ations Sur veil'ce atJon Le vy Levy Le 'f}' 5 ,000 m3 KlO gross* K5 . 50 K2 - 10 on dome s tic on all logs on all logs not applied all i l ogs scaled scaled sea ed r o a dline KlO gross* K5.50 Kl. 50 on all I I c l e ara nce on all logs on all l ogs logs not appli ed scaled scaled exported ' a gricultural KlO gross* K5.50 Kl.50 on all not applied c l e ara nce on all logs on all logs logs scaled scaled exported o ther forest To be fixed on a case by case bas is as applica ple on p r o ducts volume of forest products declared I I ( 3 ) I * deduct 15% for Provincial Government share and 5% of remainins landowner share of 85% as with-holding tax ' Landowner Premium Le vies negotiated with1 landowners, payable directly to them either as individuals, c lans or as reco nised represertativ g e landowner bodies. Receipts evidencing paym 1nt must be submitted with each monthly return. Where the levy is not payable to individual1 or clans, it can be paid to Recognised Represeqtative Landowner Bodies. If no such body is in existence the levy will be paid into a trust account J maintained by the Forest Authority until su h time as the Representative Body i s formed and recognised by the Managi ng Director of the lores t Authority (see below). (4) Export dut y. Payable directly to Comptrol~er for Customs in accordance with normal procedures at time of export . GUIDELINES FOR TIMBER AUTHORITIES Vl . 4 Page 31 10: 9.3 10. II erformance Bonds andowner Premium he r oyalty equivalent payme nt set out above is a base payment only. Landowners may negotiate additional gayments i n t he form of a Landowner Premium Levy. The rlandowner Premi um Levy s hould also be speci fied in t he , a l es and Purchase Agreement. i his levy may be negotiated as a "top-up" to royalty ~quivalent payments and paid to i ndividual tree owners qr i t may be paid to c l an agents or Incorporated Land Groups . Alternatively, it may be made payabl e to a ~andowner Company representing a number of I ncorporated la nd Groups, provided this landowner company has been ecognised as a properly representative body by the a nagi ng Director of t he Forest Authority. ~ayments may be made to a Landowner company only where tihe Ma naging Director has recognised t hat hody as a ~epresentative Landowner Body. Payments to Landowner dompanies which include only a few landowners as ~hareholders will no l onger be permitted. The Forest ~uthorit y issues Guidelines as to what are r equired dr i teri a for a body to be recognised. ienerally speaking, unless Incorporate d Land roups have been formed, the Forest Authority ill only approve revenue arrangements which ~ncorporate dire ct payments to clans o r ~ndivi~uals, rather than payments to Landowner Companies. j erformance Bonds ~ection 87 of the Forestry Act 1991 requires a P,erformance bond to be fixed for each Timbe~r ~ut horities. Section 98 provides the detailed nrovi sions relating to Performance bonds: I 98. PERFORMANCE BONDS. ( l ) A per formance bond required under ( a ) Section 73(2 )( h) or 81( 2) in relation to a timber permit; or ( b ) Section 8 7( 2 )( e ) in rel ation to a t i mber authority; or ( c ) Section 91 ( 2 )( d ) in relation to a l i cence, s h al l b e (d ) in the prescribed form; and ( e ) lodged with a bank approved by the Managing Director; a n d ( f ) sub ject to Subsection (2), aut horise the Authority to draw directly on t he b o nd in the event of non- performance b y the holder of the t i mber permi t, timber a uthori ty or l icence, as the case may be, o f any condition or r equirement of t he timbe r permit, timber authority or l icence Page 32 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 ,. 10: Performance Bonds respectively, or of any provision o this Act. (2) The Authority may draw directly on a bond only (a) after following the prescribed procrdures; and (b) to the extent of the prescribed sea e of deductions for nominated breaches o conditions or requirements. (3) Where the Authority has drawn on a bond im accordance with this section, the holder of the tiber permit, timber authority or licence, as the case m!y be, shall, within 30 days of being so notified by the Authority, deposit with the bank a sum equivalent o the ~~~~~. I Performance bonds will be calculated on the basi of an estimate of two months royalty-equivalent, which, must be lodged in advance. For a domestic processing Timber Authori ty the performance bond is based on one-s·xth the annual allowable cut. Where an additional Landowner Premium Levy is payable, that payment should also be included in the calculation. I Payment of the performance bond will be a precontition to the commencement of the Timber Authority. Harvesting which commences prior to payment oft e bond constitutes a breach of the conditions of the Tirer Authority. The bond must be kept in an account maintained w·th a Bank in Papua New Guinea, and the holder and the Bank must provide the Managing Director with a declar tion that the bond has been lodged. The declaration rust be made in the form contained in Attachment 1, headrd T PFB. Th~s form applies to all performance bonds r Until this form is lodged with the Managing Director the Timber Authority is of no eff ct. The bond is generally intended to secure payment of royalties and levies, and can be drawn against f~r any non-payment, or late payment. In specific cases ) the Forest Authority may require the lodgement of an additional accumulating bond, comprised of a per~entage of the FOB value of each export shipment, as sec rity for the performance of subsequent obligations. The performance bond will be released by the Managing Director providing a written authorisation, unde seal of the Forest Authority, to release the bond. Te bond will not be released until the completion report has been submitted to the Resource Development Divis~on, and there has been an opportunity for an inspection of the Project Area. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 33 I 11: M nitoring and Reporting I ! I 11. M nitorin of Timber Authorities I T mber Authorities will be monitored in a similar m nner to other logging projects, except that project s pervisors will not live on site. I 11.1 caling and reporting of logs harvested I A 1 holders of Timber Authorities, other than those civering Other Forest Products, must scale all logs p .oduced. The requirements for those operation~ which e port logs are stricter than for those harvesting for d ,mestic use. II . Export operations Al l logs harvested under a Timber Authority which p!rmits export must be scaled in accordance with the PJ1-1GFA "Directions for the Identification, Scaling and Reporting on Logs Harvested from Natural Forest Logging Or erations " . s J aling must be undertaken by a Licensed Log Scaler. All logs scaled must be reported on an official nJmbered Log Scaling Record Sheet. Numbered log tags ( ,btained from the PNGFA) must be used. I :r;:a:~::: :::mh::::t::g:u:r:r: 0 :o:x::r::dexported mJst be scaled in accordance with the methods set out i4 the "Directions for the Identification, Scaling and Reporting on Logs Harvested from Natural Fa.rest Logging 011 erations ", however the use of a Licenced Log Scaler a ,d PNGFA official log tags is not required. I . M • 1 nthly reports of logs scaled must be subm.1.tted to the l~ .. cal Forest Authority office, but the use of official L ,g Scale Sheets is not required. The form used for r porting must be produced by the Timber Aut hority hqlder, and contain the same information as the o~ficial Log Scale Record Sheets. An example of this form is at Attachment 7. I S 1 bmission on monthly reports with receipts and cheques 11 . Reports must be submitted monthly and must have a ~tached (a) receipts for payment of royalty-equivalent II payments to landowners; (ti ) cheques for payment of levies and taxation due to I PNGFA, Commissioner for Internal Revenue, and Provincial Government . Page 34 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 0 ll: Monitoring and R porting Log producers failing to produce the required re ,ords will have their Timber Authority suspended until such time as they comply with these reporting requirements. 11.2 Report of harvesting of other forest prod l e Produce!rs of other forest products under a Timbe Authority must report monthly to the local PNGFA office with details of the quantity of other forest pro uce harvested. Where payments are due, the monthly eport must be accompanied by the required cheques (or receipts for payments). ! Those tailing to produce the required records wi 1 have their Timber Authority suspended until such time as they comply with these reporting and payment requirements. 11.3 Completion reporting At the completion of a Timber Authority a report on the activities conducted under the Authority should ,e submitted to the local Forestry Office by the Timber Authority holder. The report should cover how the previous Timber Authority was carried out, the v~lumes harvested, and details of utilisation. Where a turther Timber Authority is applied for, it will not be granted until this report on the previous Authority is judged to be satisfactory. A performance bond lodged in respect of a Timber Authority will not be released until a completio ' report has been submitted. 12. Suspension of Timber Authorities The Act gives general powers to suspend Timber Permits, Timber Authorities and licences: 85. SUSPENSION OF RIGHTS. (1) The Managing Director may in addition to any penalty under this Act, suspend, in whole or in part, the rights in a Timber Permit, Timber Authority or lice' ce wh(~re its holder (a) made a material misrepresentation omission or mis-statement of fact in his appl'cation for it; or (b) fails to perform an obligation to be performed by him under it; or (c) fails to comply with this Act with r gard to it. (2) Before the rights are suspended, the Manging Director shall serve a notice on the holder - i (a) specifying the alleged misrepresenta ion, omission or mis-statement or failure of performance or compliance; and GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 35 L I 12: S 1 spension and Cancellation (b) allowing the holder at least 14 days after the date of serving the notice to remedy the failure of performance or complia nce . (3) A suspension of rights under Subsectio n (1) takes effect on the expiry of the time allowe d in t he notice under Subsection (2) and continues until t he rights are re-instated by the Managing Director or e xpire o r are cancelled under this Act. (4) On the request of the holder, the Managing Director shall allow him an opportunity to be heard and shall rescind the notice where he considers that the holder is not subject to Subsection (1). (5) On the application of the holder, the Managing Director shall re- instate rights suspended under this section where the holder is performing his obligations and complying with this Act . 13 . C ncellation of Timber Authorities T li e Forestry Act makes provision for the cancellation o Timber Authorities by the Provincial Minister : Page 36 90. CONVICTION OF THE HOLDER OF A TIMBER the the AUTHORITY, ETC., (1) Where the holder of a timber authority (or where holder is a corporate person, any of the princ ipals of holder) (a) ( b) is or are convicted of an offence (i) against this Act; o f (ii) concerning forestry matte rs, against any other law; or the Provincial has or have failed to comply with any of t he conditions of the timber authority, Minister may cancel the timber authority. GUIDELINES FOR TIMBER AU'l'HORITIES Vl. 4 ' ATTACHMENT !-APPLICATION TIMBER AUTHORITY APPLICATION FORMS: TA-O1 Application for Timber Authority Annual Cut under 5,000 cubic met es, Domestic Processing (Form 13) Use this form to apply for permission to harvest less th n 5,000 m3 per year by selection logging from customary land. TA-02 Application for Timber Authority for Roadline Clearance (Form 14) Use this form to apply for permission to harvest logs fo commerci al use from roadline clearing operations other tan under a Timber Permit . TA-03 Application for Timber Authority for Agricultural or other Land Use Clearance (Form 15) Use this form for permission to harvest logs for commerc'al use from forest clearing operations for agriculture or other land use development. TA-04 Application for Timber Authority for harvesting Other Forest Products (Form 16) Use this form for permission to harvest forest products ther than timber. TA-LOC Timber Authority Verification of Ownership and Consent of Landown rs . (Form 17) This form is used to show that landowners consent to the project and to verify they are the proper landowners of t he area in question. T-PFB Confirmation of Lodgement of Sec rity Bond. (Form 19) Ti. I er This form must be completed by both the Holder of the Authority, and the Bank holding the Performance bond, be Timber Authority becomes effective. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 the Page 37 ... ,. INDEPENDENT STATE OF PAPUA NEW GUINEA FORESTRY ACT 1991 Act, sec. 88 Reg. FORM 13 Application for Timber Authority-Annual Cut 5,000 cubic metres, Domestic Processing Name and address of applicant*: Name: Address: I I Phone: Fax: I 01 nder I * The applicant must be the person who will actuall y carr~ out the loggi ng. Registration number of applicant as registered forest industry participant: Registration number: Declaration of applicant status under IPA Act: I A company or joint venture owned 50% or more by non-citizens is a foreign enterprise. Is the applicant a foreign enterprise? If yes, IPA certificate number: Location of t he proposed project: Province : Location: YES / NO Any other Timber Authorities held by the applicant within 10 km of the boundary of the proposed Project Area: I NOTE: THIS FORM rs TO BE LODGED WITH THE MANAGING DIRECTOR, NA~IONAL FOREST SERVICE, PO BOX 5055 BOROKO PAPUA NEW GUINEA. Appl icatipns received by other Forest Authority offices will be returned to the applicant. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 39 TA- 1 1 I Details of the proposed project: I A ea (hectares ) : I C mmencement date: I P oposed annua l cut: I Declauation by Applicant: I decl~I re t hat the following documents are included with this a plication and that the information contained in them is tru a nd correct: (1) Kl OO application fee ( cheque made out to Papua New Gui nea Forest A thority); ( 2 ) a l copy of the applicant ' s IPA approval in respect of the a tivi ties and location to be carried out under the Ti mbe r At thority (if relevant); ( 3 ) ( 4) ( 5) ( 6) ( 7 ) ( 8 ) a 1map and description of the project area in respect of which t e application is made (" the project area") showing any areas of slope in excess of 30° and giving details of land tenure; a li completed Form TA-LOC from each resource owning Incorporated Lr,nd Grou p or clan agent within the project area, which has been signed in t he village in the presence of a Village Court Mr gistrate or land mediator; c 6pies of Sales and Purchase Agreement and all other agre ements b~tween the appl icant and the customary owners, which relate to the purchase, harvest, processing or marketing of timber and other forest products from the project area; a l plan for utilisation of the timber to be harvested; c pies of any agreements, or details of proposed arrangements w'th another registered forest industry participant in r e spect o [ the marketing or processing of timber from the project area; if t he Timber Authority is a renewal or extension of an e xisting Ai thority, a report showing how the previous Authority wa s p [i rformed, the volumes harvested , and details of utilisation. Declar d at •...•••. .• ....••......•• Dated 19 . . . . . . . .... ....... . person signing ............. .......... Signed on behalf of the Applicant . ................... .. . Office held with applicant IT IS A OFFENCE UNDER THE FORESTRY ACT 1991 TO MAKE AN UNTRUE DECLARATION IN AN APPLICATION AND THE OMISSION, MISREPRESENTATION OR MIS-STAt EMENT OF FACTS IN AN APPLICATION MAY BE GROUNDS FOR SUSPENSION OF THE IMBER AUTHORITY. Page 40 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 .. TA-02 INDEPENDENT STATE OF PAPUA NEW GUINEA FORESTRY ACT 1991 Act, sec.88 Reg. FORM 14 Application for Timber Authority for Roadl'ne Clearance ' Nam e and address of applicant: Name: Address: Phone: Fax: * The applicant must be the person who will actuall y car:t the logging. Reg ind istration number of applicant as registered forest ustry participant: Registration number: Dec laration of applicant status under IPA Act: y out l A company or joint venture owned 50% or more by non-citi~lens i s a foreign e nterprise. Is the applicant a foreign enterprise? YES/ NO I If yes, I PA certificate number: Loe ation of the proposed project: Province : Location : NOTE: THIS FORM IS TO BE LODGED WITH THE MANAGING DIRECTOR, NA IONAL FOREST SERVICE, PO BOX 5055 BOROKO PAPUA NEW GUINEA, Applicatibns received by other Forest Authority offices will be returned to the applicant. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 41 TA- 2 netai1 I of the proposed project: I At ea (hectares) (road length x 41m maximum width): P'"oposed term: ) rnrnencernent date: I (max 1 yr) I . b 1· Declar tion y App icant: I decll re that the following documents are included with this a 1 ~· plication and that the information contained in them is tru and correct : I (1) Kl00 application fee (cheque made out to Papua New Guinea Forest Authority); (2) i ~ the applicant is a foreign company within the meaning the Investment Promotion Act (50% or more fbreign ownership), a copy of the applicant's IPA aEproval in respect of the activities and location to br carried out under the Timber Authority; (3) a l map and description of the project area in respect of which the application is made ("the project area") g~ving details of land tenure, and showing the route of the proposed road in numbered 5 kilometre sections; (4) a l completed Form TA-LOC from each resource owning I corporated Land Group or clan agent within the PfOject area, which has been signed in the village in tpe presence of a Village Court Magistrate or land mediator; 11 ' (5) cppies of Sales and Purchase Agreement and all other agreements between the applicant and the customary owners, which relate to the purchase, harvest, p~ocessing or marketing of timber and other fores t I pr oducts from the project area; (6) a l plan for utilisation of the timber to be harvested; (7) c 1 pies of any agreements, or details of proposed afrangements with another registered forest industry Perticipant in respect of the marketing or processing o[ timber from the project area; or extension of an how the previous harvested and (8) if the Timber Authority is a renewal e} isting Authority, a report showing Afthority was performed, the volumes df tails of utilisation; (9) d~tails of the design of the road including alignment and proposed standard of construction in accordance w"th Department of Works road design manual; Page 42 GUIDELINES FOR TIMBER AUTHORITI ES Vl.4 (10) ( 11) (12) T 11 A-02 details of the proposed road construction incluctf·ng . copy of construction contract (if the appli , ant is not going to undertake construction); I details of equipment and manpower suitable for road construction and evidence of past expe ience with road construction (if the applicant is to undertake construction); details of cost of road construction and sources of funding; I implementation schedule showing planned rat and location of harvesting and road constructiot; a certificate from the Department of Tr ansport t 1 , the effect that the proposed road route is in accord nee with the relevant national or provincial i nfrastf ucture plans a nd funding is available to maintain the r i ad after construction; I a certificate from the Department of works to th effect that the standard of construction propose , is appropriate for the nature of the road and the p 1 oposed alignment of the road is acceptable. Declared at Dated .............. ....... ...... 19 ............... ........ ...... .............. Name of pers on signing Signed on behalf of the Applicant . ..................... . Office held with applic nt IT IS AN OFFENCE UNDER THE FORESTRY ACT 1991 TO MAKE AN UNTRUE DECLARATION IN AN APPLICATION AND THE OMISSION, MISREPRESENTAT ON OR MIS-STATEMENT OF FACTS IN AN APPLICATION MAY BE GROUNDS FOR SU PENSION OF THE TIMBER AUTHORITY . GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 43 Cl INDEPENDENT STATE OF PAPUA NEW GUINEA FORESTRY ACT 1991 T Act, Sec.88 Reg. FORM 15 03 Appl ication for Timber Authority for Agricultu al or other Land Use Clearance I ~•-ar,--)111,1111,1~1111~11i1~ ···· ·•:...-... •-·v•-·.· --•... ·.:-:-·., -·-:-:-::•.•:< ·-<•:-.•:•·-.-:-:-:-:::::•::- -.··· • ..•. -•. .• . ~~~---.•· , -.~---'.=:~=xl ~:::,~-.-.-.-:~ :,,-r.:: .. -:-:-:-:1!'!::: . . ·: . • . -.... :•::: .• .. -..•. . . --·-··---•.• -. ... ~ : .-.·,:-:-:-:-:-:,·,:-:-· ...... :-:--:-•-•, -..... , • .. , , • • · · ·.:.·-·,-:-:.·-:- -·-:-.-:.·-:-:-·-:->"-:-: Name and address of applicant: Name : Address: Phone: Fax: * The applicant must be the person who will actually car1y out the logging. I Registration number of applicant as registered forest industr y participant: Re gistration number: Declaration of applicant status under IPA Act: A company or joint venture owned 50% or more by non-citi:ens i s a fore ign enterprise. Is the ap plicant a foreign enterprise? I f yes, IPA certificate number : Location of the proposed project: Province: Location: YES/ NO NOTE: THIS FORM IS TO BE LODGED WITH THE MANAGING DIRECTOR, NlTIONAL FOREST SERVICE, PO BOX 5055 BOROKO PAPUA NEW GUINEA. Applicat'ons received by other Forest Authority offices will be returned to the applicant. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 45 TA-03 Detail, of the proposed project: ArLa (hectares): Ra~e of clearing: Prr posed term (max 1 yr): Co encement date: Declaration by Applicant: I declare that the following documents are included with this aPiplication and that the information contained in them is true and correct: ( 1) ( 2) ( 3) ( 4) (5) ( 6) ( 7) K~OO application fee (cheque made out to Papua New Guinea Forest Authority); i 3 the applicant is a foreign company within the mJ aning the Investment Promotion Act (50% or more foreign ownership), a copy of the applicant's IPA approval in respect of the activities and location to b11 carried out under the Timber Authority; a ~ap and description of the project area in respect of which the application is made ("the project area") shbwing any areas of slope in excess of 30° and giving de~ails of land tenure; Lad owner consent: small-scale projects under 50 hectares a completed Form TA- LOC from each resource owning clan ag nt (or Incorporated Land Group if they have bee n fo med) within the project area, which has been signed in the village in the presence of a Village Cour t Magistrate or land mediator; For large projects over 50 hectares a ~ompleted Form TA-LOC from each resource owning incorporated land group within the project area, which har been signed in the village in the presence of a Vi~lage Court Magistrate or land mediator; co ies of Sales and Purchase Agreement and all other ag eements between the applicant and the customar y owners, which relate to the purchase, harvest, processing or marketing of timber and other fores t products from the project area; a b1an for utilisation of the timber to be harve sted; co~ies of any agreements, or details of proposed arf angements with another registered forest industry pa ticipant in respect of the marketing or processing of timber from the project area; Page 46 GUI DELINES FOR TIMBER AUTHORITI ES Vl.4 " Tk -03 (8) if the Timber Authority is a existing Authority, a report Authority was performed, the and details of utilisation. renewal or extensio l of an showing how the pre ious volume of timber ha vested Small Scale Operations under 50 hectares (9) Project description showing OR Large ( 9) (10) ( 11) (12) the nature of the proposed land use; who is to carry out the land use; a description of the precise area of land use; the proposed timetable for implementation. Scale Operations over 50 hectares a detailed development plan certified by the rel vant Government Agency responsible for the project (e .• , the Department of Agriculture and Livestock for an II agricultural project), as a true and accurate statement of the proposed project; ~ supporting letters from the relevant Department f nd any other relevant industry body to the effect that he proposed project is viable; · I evidence of intention to carry out the Agricultufe development plan such as orders placed with suppiiers, tenders let, infrastructure design or constructi~n etc. I an implementation schedule showing the precise a eas and rate of harvesting and successive land use development approved by the relevant Department; (13) copy of an Environmental Plan approved by the Department of Environment and Planning (DEC), or a letter of comfort from DEC indicating no plan is required; (14) a letter from the Secretary, Department of Lands evidencing appropriate land tenure (eg., agricul ural leases) if the land is customary land. Declared at Dated .... ............... ........ 19 .... ................ Signed on behalf of the applicant Name of pers on signing Office held with applic nt IT IS AN OFFENCE UNDER THE FORESTRY ACT 1991 TO MAKE AN UNTRUE DECLARATION IN AN APPLICATION AND TEE OMISSION, MISREPRESENTAT ON OR MIS-STATEMENT OF FACTS IN AN APPLICATION MAY BE GROUNDS FOR SU PENSION OF THE TIMBER AUTHORITY. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 47 ·A-04 INDEPENDENT STATE OF PAPUA NEW GUINEA FORESTRY ACT 1991 Act, Sec.88 Reg. FO 16 Application for Timber Authority for harvesting of Other Forest Produce Name and address of applicant: Name: Address: Phone: Fax: * The applicant must be the person who wil l actually car y out the harvesting. Registration number of applicant as registered forest industry participant: Registration number: Declaration of applicant status under IPA Act: A company or joint venture owned 50% or more by non-citizens is a foreign enterprise. Is the applicant a foreign enterprise? If yes, IPA certificate number: Location of the proposed project: Province : Location : YES/ NO NOTE: THIS FORM IS TO BE LODGED WITH THE MANAGING DIRECTOR, NA"IONAL FOREST SERVICE, PO BOX 5055 BOROKO PAPUA NEW GUINEA. Appl icatiJns received by othe r Forest Authority offices will be returned to he applicant. GUIDELINES FOR TIMBER AUTHORI TIES Vl.4 Page 49 TA- 1 4 Detail~ of the proposed project: F! rest Product to be harvested: II Ql antity to be harvested: Proposed term (max 1 yr): c f mmencement date : 1 1 • 1 · Declaration by App icant: I decll~l re that the following documents are included with this a ' plication and that the information contained in them is tru and correct: (1) Kt· 00 application fee (cheque made out to Papua New Guinea Forest A thority); (2) a l copy of the applicant's IPA approval in respect of the a ' tivities and location to be carried out under the Timber Ahthority (if relevant); ( 3) ( 4) ( 5) ( 6) ( 7 ) ( 8) ( 9) a f map and description of the project area in respect of which t , e application is made ("the project area") giving details of 1 nd tenure; a l completed Form TA-LOC from each resource owning incorporated land group or clan agent within the project area, which has been s~gned in the village in the presence of a Village Court Mrgistrate or land mediator; copies of all agreements between the applicant and the customary orners, which relate to the purchase, harvest, processing or mr rketing of other forest products from the project area; details of the proposed revenue benefits to landowners from the p ' oject; a l description of the type and amount of forest produce to be h ' rvested; a 1 plan for utilisation of the forest produce t o b e harvested; I copies of any agreements, or details of proposed arrangements w~th another registered forest industry participant in respect o the marketing or processing of other forest from the project a ea; Declaj~d at .....•.....•••..•••••.•• Dated 19 .................... Signed on behalf of the Applicant . ..................... . Name of person signing Office held with Applicant IT rs l OFFENCE UNDER THE FORESTRY ACT 1991 TO= AN UNTRUE DECLARA~ION IN AN APPLICATION AND THE OMISSION, MISREPRE:SENTATION OR MIS-ST ~EMENT OF FACTS IN AN APPLICATION MAY BE GROUNDS FOR SUSPENSION OF THE IMBER AUTHORITY. Page 50 GUIDELINES FOR TIMBER AUTHORITIES Vl . 4 Th-Loe INDEPENDENT STATE OF PAPUA NEW GUINEA FORESTRY ACT 1991 Act, Sec.88 FORM 17 Reg. Timber Authority-Verification of Ownershi and Consent of Landowners (A SEPARATE COPY OF THIS FORM MUST BE COMPLETED FOR EACH CLA AGENT, INCORPORATED LAND GROUP OR INDIVIDUAL HAVING OWNERSHIP RIGHT I OVER TIMBER AND/OR OTHER FOREST PRODUCTS TO BE TAKEN UNDER THE TIMBER AUTHORITY. COMPLETED FORMS SHOULD BE ATTACHED TO THE APPLicn1TION FOR TIMBER AUTHORITY) I 1. 2. 3. Name and address of Resource Owners Name: Address: I . *note that only a Clan Agent or an Incorporated Land Group can ex~rcise rights over customary land Corporations may only exercise rights over freehold or leasehold land, not over customary land I The Sales and Purchase Agreement and this Consent Form must be siined in the village where the customary owners live, and witnessed by a Village Court Magistrate or a land mediator Basis of ownership 0 customary O freehold title □ leasehold title I D other (please describe) Consent to the project I hereby certify that (a) (b) ( C) I have been given a copy of the attached application for a Timber Authority and the project documents which go with the application; I the resource owners named above have ownership rights over timber or other forest produce within the I I Area (describe the area owned by the resource owners) I I the resource owners consent to the harvesting of GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 51 TA-L C ( d) 4. d timber or D I . . other fore st produce • I h in It e area; ( tick the box which applies) I ~ave been appointed according to custom to act as the ag~:i;t of the resource owners for the purposes of the pr! IJ ect. ( strike out if the land is not customary land) I D TED: (write the date of I signing here) I S IGNATURE1 ( he person giving consent on behalf of the resource owners signs here, I fi the land is customary land, the form must be signed in the place wl~ere the resource owners live. A Village Court Magistrate or land m diator must witness the signature-see section 4. below,) I N me of person signing: I Pace where the form was signed: I If [ he land is customary land, is the person giving con 1 ent above 0 Clan Agent 0 authorised by an Incorporated Land Group (tic the box which applies) I Ce tificate by witness I c~rtify that I believe the person whose signature apprars above is authorised to give this consent on beh~lf of the resource owners named, and that I believe that the resource owners are the true owners of the lantl described . I I Signature of witness : 11 Nf me of witness: Address of witness P ![sition held by witness: (Sitness must be a Village Court Magistrate or Land Mediator) I Page 52 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 T-PFB INDEPENDENT STATE OF PAPUA NEW GUINEA FORESTRY ACT 1991 Act, sec. 98 Reg. FORM 19 Confirmation of Lodgement of Security s1nd (and authorisation for release) J ,(I \ , Name and address of Holder of Timber Permit, Timber Authority or Licence: Name: Address: Phone: Fax : Details of Timber Permit, Timber Authority or Licence: ~ Type of TP, TA or Licence: Number: Comme ncement date: Term: Name of Pr oject Area: ( if relevant) Loc ation: (if rele vant) Amount of Performance Bond required: K •..• . ...••.••• ..• . .• ... Details of Bond Account: Name of Bank: Branch Address: Phone: Fax: Account number: Account balance: K •• . ..•• • • . .• •• . . . • • •..•.•...••.. GUIDELINES FOR TIMBER AUTHORITIES Vl .4 Page 53 PART ONE-DECLARATION BY HOLDER Name and address of person making this declaration: 1. 2. 3. 4. 5. Addr~ss: Phonl : Fax: I Posi ion held with Holder: I I a! authorised to make this declaration on behalf of the labove named Holder of the Timber Permit/ Timber Authority/ Licence . The II Holder maintains the account set out above ( called 'the Bond Account') and the account has a credit bal1nce as described above. The lHolder has nominated the funds held in the Bond Acc ,unt to comprise the Performance Bond required to be lod~ed by it under the terms of the Timber Permit/ Timllber Authority/ Licence and Section 98 of the For 1 stry Act. The Holder has given an irrevocable authority to the Bank to release t he Forest Authority such sums as t he Aut!ority seeks to draw, from funds held in the Bond Ace unt, and such authority will remain in force until s ue : time as the Bank receives a release notice under sea of the Forest Authority. I I h ve personal knowledge of the facts herein stated whi ,h are true and correct to the best of my knowledge and lbelief . Signature of declarant Signature of witness Plac! of declaration : Date of declaration : Name of witness : Addr~ss of Witness I Page 54 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 " PART TWO-UNDERTAKING OF BANK We ( insert Bank and Branch Name) hereby unconditionally undertake to 1. Pay promptly to the Forest Authority such sums as the Authority seeks to draw from funds held in the 1Bond Account without reference to the Holder and I notwithstanding any direction given by the Hol er to the Bank not to pay such sum or sums. I 2. Not release to the Holder any of the funds deposited in the Bond Account until after receipt of a writ 'len authorisation, under seal of the Forest Authority, to release such funds to the Holder. I THE COMMON SEAL of the Bank was hereunto affixed in due execution of this undertaking in the presence of the witness. I i Seal o the Bank Name of witness authorised to affix seal: Office held by witness: Signature of witness: NOTE: THIS FORM IS TO BE LODGED WITH THE MANAGING DIRECTOR, NATIONAL FOREST SERVICE, PO BOX 5055 BOROKO PAPUA NEW GUINEA. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 55 TO: Mal ager I Bank THREE AUTHORITY TO RELEASE FUNDS IN BOND ACCOUNT . I Branch I, , Managing Director of the PNG (il ert address of Bank) Forest uthority, hereby I 1. 2. 3 . co firm the expiration or cancellation of the Timber Pe~mit/ Timber Authority/ Licence held by the Holder; I . . ' d co firm that the Forest Authority has receive a co ' pletion report submitted by the Holder, I am sa~·sfied that the Holder has discharged his/her or its ob igations under the terms of the Timber Permit/ Ti 1 er Authority/ Licence; and au~horise and direct you to release the funds held in th Bond Account to the Holder. I I Signature of Managing Director I . . THE CO ON SEAL of the Forest Authority was hereunto affixed in due 1' xecution of this release in the presence of the witness ~ I Seal of the Forest Authority Nane of witness authorised to affix seal: I Of ice held by witness: I Si nature of witness: I Page 56 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 ;.. ATTACHMENT 2-SALES AND PURCHASE AGREEMENT Sales and Purchase Agreement THIS AGREEMENT is made on the •• •• • • . • •• • •• • day of . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 •• • BETWEEN: Name : Address : Regis tered Forest Industry Participant and Timber Ajlthor ity applicant (called 'the Purchaser' in this agreement) AND Clan name: Village: I Customary owners of timber in the ••.• .•• •. .•. •• Area (called 'the Resource Owners) in this agreement I WHEREAS : I A. The Resource Owners comprises the persons listetll in Schedule 1 who are the sole owners of customary 1 land in t he area and have the rights to sell timber or othe r fores t products growing on the land in the areal marked in r ed on the map in Schedule 2 . (use one agre~[ ent for each c lan); I B. The Resource Owners have not otherwise sold or risposed of rights over the timber or other forest produ'ce growing on the land; I c . The Purchaser wishes to make an Agreement with lthe Re sour ce Owners for t he purchase of timber or olther forest produce ; I D. The Re source Owners have appointed as their agent in accor dance with custom- 1 I I name of Clan Agent or person appo inted by IncorporatEd La nd Group : to execute t his agreement on their behalf. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 5 7 NOW 1. 1.1 2. 2.1 2.2 2.3 2.4 2.5 3. 3.1 4. 4.1 ND PURCHASE AGREEMENT IS GREED AS FOLLOWS: cod 1 di tion precedent h . I · b · d d . . 1 th T s Agreement is su Ject to an con 1t1ona upon e gra!nt of a Timber Authority by the PNG Forest Authority and shall not confer any right to harvest timber or ot~er forest produce except in accordance with that Ti!er Authority. Gr ~t of rights to timber or other forest produce Thel 1 I Resource Owners hereby grant to the Purchaser the exclusive right to purchase timber or other forest produce from the land area described in Schedule 2 (referred to i n this agreement as 'the Clan land, with thel exception of those species listed in Schedule 4). Th Resource Owners declare that (a) they are customary owners of the Clan land; (b) they are entitled under custom to deal with timber or other forest produce on that land; and (c) no other person has any right or interest in the timber or other forest produce on the land. Ti er or other forest produce remains the property of the1 1 customary owners of the land in which it is growing until it has been felled, when the timber or other forfst produce becomes the property of the Purchaser, sub:ject to the payment of the monetary benefits set out in chedule 3. I The Resource Owners must not interfere with the car' ying out of this Agreement. The l Resource Owners must not allow any other person to acq ire an interest in the timber or other forest pro~uce which the Purchaser may be entitled to take undrr this Act. Tert of this A reement The term of this Agreement is ••.••••...•.• (maximum one year) commencing on the day on which a Timber ~ut~ority covering all or part of the Clan land is 1ssI1led by the PNG Forest Authority. Mon tary benefits 11 At the end of each month during which timber or other for4st produce has been taken under this Agreement, the Pur '. has er must pay to the Resource Owners monetary ben .fits in accordance with Schedule 3, calculated on the 1volume of timber scaled or other forest produce dee ared during that month . Page 58 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 .. II SALES . AND PURCHASE AG EEMENT 5. Additional rights of the Purchaser 5.1 The Resource Owners grant to the Purchaser and all persons lawfully authorised by the Purchaser t e rights to- I 6 • 6.1 6.2 (a) enter on and pass through land (but not p ivate premises); ! I (b) make fire breaks and formed and unformed oads, tracks, bridges, culverts and similar wor s; (c) prepare and construct loading and storage sites for forest produce; (d) extract, remove, convert and use road-makfng materials for the purpose of any of the activities set out in paragraphs (a) to (c) above ca ried out within the land area described in Schedul 2 subject to payment of revenue benefits de cribed in Schedule 3.; I (e) use, keep and transport vehicles, machine y, plant and equipment; (f) use roads and waterways; (g) conduct land and resource assessment surv ys (including aerial surveys) and inventorie. Rights of the Resource Owners The Clan and its members are entitled to carry out all customary rights to: ( a) hunt; (b) fish; (c) gather plant foods (d) gather traditional materials for making artefacts, tools, utensils and houses; collect firewood c othing, ( e) ( f) ( g) I plant, maintain and harvest subsistence g rdens enter on and pass through land. I Nothing in this Agreement entitles any employe of the Purchaser to hunt, fish or make gardens on Cla1 land without the permission of the owners of the re evant land. 6.3 The Resource Owners have the right to (a) mark commercial trees and other forest pr , duce which are required by them for traditiona purposes; and I (b) identify cultural areas, burial grounds ad gardens, which are to be excluded from this Agreement. 6.4 Cultural areas, burial grounds and gardens may be identified by marking them in blue or green on the map GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 59 ... 7 .. . SALES t HD PURCHASE AGREEMENT in · chedule 2, or may be identified to the Purchaser •by the ' Resource Owner during an inspection of the land . 7 d i . . • Lan and buildin s I 7 . 1 The, Purchaser may only construct permanent fixtures and bui, dings on land made available by agreement with the Resburce Owners. The Resource Owners will not unrbasonably withhold their agreement to the con' truction of buildings or permanent fixtures rea onably required for the purpose of this Agreement. 7.2 Any buildings or fixtures constructed on the Clan land for the purposes of this Agreement are severable and may be removed by the Purchaser within 90 days of t he exp'ration or cancellation of the Timber Authority doi ' g as little damage to the land as possible. I SIGNED B THE CLAN AGENT OR AUTHORISED INCORPORATED LAND GROUP REPRESENTATIVE on behalf of the Resource Owners and in accordan e with the ir wishes I Signature or mark PLACE where OF ISIGNING (the Agreement must be signed in the place the Clan members live) I I Vi llage: I . Pl ovince: WITNESSE BY Village Court Magistrate or Land Mediator I SIGNED B THE PURCHASER I Page 60 Signature of witness Signature of Purchaser GUIDELINES FOR TIMBER AUTHORITIES Vl.4 I SALES AND PU RCHASE AC ~REEMEN T . " SCHEDULE 1--LIST OF RESOURCE OWNERS Name Signature GUIDELINES FOR TIMBER AUTHORITIES Vl . 4 Page 6 1 ~ I SALES ~ND · PURCHASE AGREEMENT SCHEDUilE 2--MAP DIAGRAM OF CLAN LAND AREA Insert lap-need not be to scale-showing clan area with red boundar I Cultura areas to excluded under clause 6 may also be shown in gree or blue Page 62 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 .. SALES AND PURCHASE A REEMENT SCHEDULE 3--MONETARY BENEFITS Royalty equivalent payments K m3 (minimum KlO) (note Provincial Government share of 15% and ith holding tax of 5% of remaining 85% to be dedudted) .Landowner premium levy K m3 Landowner Premium Levy is payable to I *Resource owners who receive royalty payments I OR *Recognised Representative Landowner Body Name of Recognised Body: Date of Managing Director ' s letter of recognition: *strike out which ever one is not applicable SCHEDULE 4-EXCLUDED SPECIES May also list any excluded areas if they cannot be lshown on the map in schedule 2 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 63 , "' 't ..; ATTACHMENT 3-FOREST REQUIR MENTS y ACT Reauirements of the Fores trv Act to oJ tain permission for harvesting I IS PERMISSION OF THE PNG FOREST AUTHORITY REQl~IRED TO UNDERTAKE HARVESTING? I Do forest industry activities involve (a) more than 500 m3 per annum of timber; or (b) sandal wood or rattan of more than K20,000 value per annum YES Defined as forest industry participant by the Act. Permission is required to undertake activities PNGFA PERMISSION IS REQUIRED NO Permission is obtained by Registration as forest industry part icipant Obtaining Timber Permit, Timber Authority or licence as required I Not a foreft industry II participan1 as defined by l the Act PNGFA PERMIHSION NOT REQUIRE ,J WHAT KIND OF PERMISSION IS REQUIRED? Is the activity an exercise of timber rights on Government land or within an FMA? NO Is the activity harvesting of less than 5,000 m3 for domestic processing agricultural or roadline clearing harvest of other f orest produce NO YES All remaining forest industry activitie s require a licence YES GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Timber permit is l required and ful1 allocation II procedure must bE used I 11 Timber Authority can be issued Page 65 ATTACHMENT 4--CHECKLI EVALUATION T and SHEBT and Evaluation Sheet The purpose of this checklist is to ensure that everything :ihich should have been sent in with a TA application has been sen7 in, and that the proposed Timber Authority meets the Guidelines. T~e :;;11!!:1 0 :h~~!db~:nf!!~~~s!:d~nd then put on file after th PROVI NCE : . ..... . ...... .. ............ . . . . . .............•.... NAME OF TA AREA: . .. .. .• ••• . •. ...•.... . .... ... . . . . ..•...... j .. I NAME OF APPL I CANT : •...••..•• • .... • . .. . •. . •.. .. ..•. .. • • • · • . • · • . I APPLICATION DATE. • • •. .. • .•.•.......... .. ... . ...•. . ... . .•. . .•• . I DATE APPLICATION RECEIVED: .... . • ... .. . .... .. . . .•. . ... . . . . . .•• REGISTRATION NUMBER: . ... . ........ .. . .. . • .... . • .. ... . . . . •. . j .. DATE ON WHICH THIS CHECK WAS MADE • . .. . . / . .. . . • / ... . . . OFFICER CHECKING : . . ....••.•••. . •••. . ••.• • .•••• . •••. . . IF THERE IS A ,C AGAINST ANY BOX WHICH APPLIES TO THE APPLICATION IT SHOULD BE SENT BACK TO THE APPLIC~NT WITH A LETTER EXPLAINING WHAT IS MISSING t/ for 'YES' )C for ' NO' 1. Is the application form filled in and signed 2. Is an application fee of Kl00 enclosed 3. Forest industry participant registration number 4 . Is the applicant a foreign company? If so, has an IPA certificate been included 5. What kind of Timber Authority is applied for: TA-01 Domestic processing under 5,000 m3 TA-02 Roadline clearing TA-03 Agricultural or other land use clearing TA-04 Other Forest Product harvesting D D D D I t/ 0 " op 6. Is the application accompanied by all the correct doc ents? GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 67 I CHECKL ST 6. Is j he appl ication accompanied by a ll the correct documents? USE 1THE LISTS BELOW TO DETERMINE IF THE RIGHT INFORMATION HAS BEEN SENT IN WITH THE TIMBER AUTHORITY. MARK EACH BOX WITH t/' or r,· . IF THERE IS A )( BY f1NY BOX WHICH APPLIES, SEND THE APP ICAT ION BACK TO THE APPLICANT I TA-01 AJnlications for 5,000 cubic metre domestic pJocessing Timber Authorities: Are the f ll llowing included? ti' or )( I ti' for 'Y~S' )( for ' NO ' ( 1 ) ( 2) ( 3 ) ( 4 ) ( 5 ) ( 6) a mJp and description of the project area in respect of J.hich the application is made (" the project areJ ") showing any areas of slope in excess of 30° andJ giving details of land tenure; a c mpleted Form TA-LOC from each resource owning Incqrporated Land Group or Clan Agent within the pro j ect area , which has been signed in the village in i he presence of a Village Court Magistrate or land' mediator; cop~es of Sales and Purch ase Agreement and all other agri ements between the applicant and the customary owni rs, which rel ate to the purchase, harvest, proqessing or marketing of timber and other forest pro; ucts from the project area; a pan for utilisation of the timber to be har 'ested; copJ es of any agreements, or details of proposed arrjngements with another registered forest industry par •~ici ~ant in respect of t he marketi ng or pro essing of timber from t he project area; if ~he Timber Authority is a renewal or exten sion of an ~xisting Authority, a report showing how the pre~ious Au thority was performed, the volume of ti~er harvested and detai l s of util isation. IF THERE :s A )( BY ANY BOX WHICH APPLIES, SEND THE APPLICATION BACK TO Tl~E APPLICANT WITH A REQUEST FOR MORE INFORMATION TA-02 Afplications for Roadline A thorities: I clearance Timber □ 0 □ □ □ □ Are the f llowing included? I ti' or )( ti' for ' YE~ ' )( for ' NO' ( 1 ) a m~p and description of the project area in respect of 1hich t he application is made ( "the project are5,") showing the route of the proposed road in numlJ,~red 5 kilometre sections, and showing details of land tenure; □ Page 68 GUIDELINES FOR TIMBER AUTHORI TIES Vl.4 I) l'I .. I CIECKLIST I Roadline clearance Timber Authorities continued 'V or ,C ( 2) ( 3) ( 4) ( 5) ( 6) ( 7 ) ( 9) a completed Form TA-LOC from each resource owning Incorporated Land Group or Clan Agent within the project area, which has been signed in the village in the presence of a Village Court Magistrate or land mediator; copies of Sales and Purchase Agreement a nd all other agreements between the applicant and the customary owners, which relate to the purchase, harvest, processing or marketing of timber and other forest products from the project area; a plan for utilisation of the timber to be harvested; copies of any agreements, or details of proposed arrangements with another registered forest industry participant in respect of the marketing or processing of timber from the project area; if the Timber Authority is a renewal or extension of an existing Authority, a report showing how the previous Authority was performed, the volume of timber harveste d and details of utilisation. details of the design of the road including alignment and proposed standard of construction in accordance with Department of Works road design manual; details of the proposed road construction including copy of construction contract (if the applicant is not going to undertake construction); details of equipment and manpower suitable for road construction and evidence of past experience with road construction (if the applicant is to undertake construction); details of cost of road construction and sources of funding. implementation schedule s howing planned rate and location of harvesting and road construction. (10) a certificate from the Department of Transport confirming that the proposed road route is in accordance with the relevant national or provincial infrastructure plans and funding is available to maintain the road after construction; (11) a certificate from the Department of Works confirming that the standard of construction proposed is appropriate for the nature of t he road and that the proposed alignment of the road is acceptable IF THERE IS A )( BY ANY BOX WHICH APPLIES SEND THE APPLICAT ON BACK TO THE APPLICANT WITH A REQUEST FOR MORE INFORMATION j GUIDELINES FOR TIMBER AUTHORITIES Vl . 4 □ □ □ □ □ □ □ □ □ Page 69 CHECKL ST I TA-03 Anolications for Aaricultural clearance Timber Authorities: Are the fJ11owing included? II' for 'YE!~ ' )( for 'NO' V or )( ( 1) a md'p and description of the project area in respect of Jhich the application is made ("the project are1 1 ' ") showing any areas of slope in excess of 30° and 'giving details of land tenure; I (2) a cocpleted Landowne r Consent Form TA-LOC Small sca~e projects under 50 hectares: froj l: each clan agent within the project area, which has been signed in the village in the presence of a Vil 'age Court Magistrate or land mediator; OR Large sca~e projects over 50 hectares fro~ each resource owning incorporated land group or cla~ agent within the project area, which has been sig9:ed in the village in the presence of a Village Count Magistrate or land mediator; ( 3 ) ( 4 ) ( 5 ) ( 6) copJ !es of Sales and Purchase Agreement and all other agnlements between the applicant and the customary own4:rs, which relate to the purchase, harvest, pro9essing or marketing of timber and other forest proctucts from the project area; a p 1 an for utilisation of the timber to be har1;ested; cop~es of any agreements, or details of proposed arr1'ngements with another registered forest industry par~:icipant in respect of the marketing or processing of timber from the project area; if J ~e Timber Authority is a renewal or extension of an 4xisting Authority, a report showing how the pre1ious Authority was performed, the volume of timl::ier harvested and details of utilisation . I Small Sca1le Onerations under 50 hectares: ( 8) Large ( 8 ) I Project description showing the nature of the proposed land use; who is to carry out the land use; a description of the precise area of land use; the proposed timetable for implementation. Sca]e Operations over 50 hectares: a d t ailed agricultural development plan certified by t 1 ~e Department of Agriculture and Livestock as a true 1 and accurate statement of the proposed project; D D D D D D D 0 Page 70 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 .. I'\ l ECKLIST I Agricultural clearance Timber Authorities continued It/ or )( ( 9) supporting letters from the Department of Agriculture and Livestock and any other relevant industry body to the effect that the proposed project is viable; (10) evidence of intention to carry out the Agriculture development plan such as orders placed with suppliers etc. (11) an implementation schedule showing the precise areas and rate of harvesting and successive land use development approved by the Department of Agriculture and Livestock; (12) copy of an approved Environmental Plan, or a letter of comfort from DEC indicating no plan is required; (13) a letter from the Secretary, Department of Lands evidencing appropriate land tenure (eg., agricultural leases) 0 0 0 0 0 I IF THERE IS A )( BY ANY BOX WHICH APPLIES SEND THE APPLICA'"ION BACK TO THE APPLICANT WITH A REQUEST FOR MORE INFORMATION I TA-04 Annlications for Timber Authorities to Other Forest Products: harve 1 st Are the following included? t/ for 'YES ' )( for 'NO' ( 1) ( 2) ( 3) ( 4) ( 5 ) a map and description of the project area in respect of which the application is made (" the project area") giving details of land tenure; a compl eted Form TA-LOC from each resource owning incorporated land group or clan agent within the project area, which has been signed in the village in the presence of a Village Court Magistrate or land mediator; copies of Sales and Purchase Agreement and all other agreements between the applicant and the customary owners, which relate to the purchase, harvest, processing or marketing of other forest products from the project area; a plan for utilisation of the forest products to be harvested; copies of any agreements, or details of proposed arrangements with another registered forest industry participant in respect of the marketing or processing of forest products from the project area; GUIDELINES FOR TIMBER AUTHORITIES Vl.4 I r or )( 0 0 0 0 0 Page 71 CHECK I . 'IST I Timber Authorities to harvest Other Forest Product J continued V or ,C (6) if ' he Timber Authority is a renewal or extension of an r xisting Authority, a report showing how the pre~ ious Authority was performed, the volume of othlEff forest products harvested and details of utiiilisation. IF THERE lrs A )( BY ANY BOX WHICH APPLIES SEND THE APPLICAT ON BACK TO THE APPLICANT I RESULTS OF CHECK: 0 Anjllication returned to annlicant with reauest for further doduments LIST DOC[~MENTS REQUIRED HERE OR 0 Ann n ication accented -oroceed to evaluation I D Page 72 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 .. .. DATE ON WHICH THIS CHECK WAS MADE •••••• / ....•• / .. . .. . OFFICER CHECKING: • •• .•.••••..•••.•••..•.• . • • •.•• ••••• CHECK EACH APPLICATION AGAINST THE APPROPRIATE SET OF CRIT. RIA TO EVALUATE WHETHER THE AUTHORITY SHOULD BE GRANTED IN THE TERMS SOUGHT All Applications Are the following criteria satisfied? V for ' YES ' )( for 'NO' 1.1 If applicant is a foreign company IPA certificate shows approval for the activity to be carried out under the Timber Authority in the proposed location IF THERE IS A )( AGAINST THE ABOVE, SEND THE APPLICATION BACK TO THE APPLICANT-IT IS AN OFFENCE TO APPLY FOR A TIMBER AUTH 1 !RITY WITHOUT HAVING IPA APPROVAL FOR THE ACTIVITY AMD THE Lnf"'JJ..T ON, FIRST j TA-01 Domestic Processing Timber Authorities: I □ Are the following criteria satisfied? V for 'YES ' )( for 'NO' v' or )( 2.1 2.2 Proposed cut no more than 5,000 annual harvest Does applicant already have TA within 10 km of ANY boundary 2.3 (If yes, total permitted volume is 5,000 m3 annually for all) TOTAL VOLUME ALLOWED FOR THIS TA: •• , . , . , , .• , , .•. 2.4 2.5 2.6 2.7 Proposed area not within existing or proposed FMA area (check with Mapping branch) Proportion of 30° slope not excessive (logging not allowed over 30° slope) Utilisation Plan is for domestic processing Landowner consents from clan agents are in order (Regional Office should do check to ensure all landowner groups included) 2.8 Revenue benefits to landowners are at least at current royalty rate I I IF THERE IS A )( AGAINST ANY OF THE ABOVE, CONSIDER WHETHER 1 TO ASK THE APPLICANT TO RESUBMIT THE APPLICATION WITHIN THE GUIDELINES, OR RECOMMEND TO PFMC NOT TO GRANT THE TIMBER AUTHORITY. GUIDELINES FOR TIMBER AUTHORITIES Vl .4 D D □ [J □ □ □ Page 73 EVALUArION SHEET TA,-02 · ' Roadline clearance Timber Authorities Are the f t llowing criteria satisfied? V for 'Y~S ' ,C for 'NO ' 3 .1 Ra~d is outside existing FMA or TRP area 3. 2 P11 ject documents include details of road cost and e idence that proposed road is funded 3.3 3.4 3.5 3 . 6 3.7 3 . 8 3.9 I If applicant is not to do construction I copy of construction contract is included If applicant is going to do construction I details of manpower and equipment available for construction provided Im lementation schedule shows construction within thee to six months of harvest Department of Transport or provincial department hals approved route of road and confirmed funding fo ' maintenance I ( sight letter from Secretary) De artment of Works has approved alignment and st ndard of road I ( sight letter from Secretary) Rofd corridor width not more than 40m, maximum di~tance 5 kilometres per section (TA granted for whole road but harvesting authorised in stages) I • Landowner consents from clan agents are in order (Regional Office should do check to ensure all landowner groups included) 3.10 Revenue benefits to landowners are at least at current royalty rate and are based on l ogs scaled, not logs exported I IF THERE 1 S A )( AGAINST ANY OF THE ABOVE, CONSIDER WHETHER TO ASK TH APPLICANT TO RESUBMIT THE APPLICATION WITHIN THE GUIDE INES, OR RECOMMEND TO PFMC NOT TO GRANT THE TIMBER AUTHORITY. V or ,C D D D D D □ D D D D TA-03 Agricultural clearance Timber Authorities Are the f 1 llowing criteria satisfied? V for ' YEp ' )( for 'NO ' 4.1 Ari a for development is not within existing FMA ar a (check with Mapping Branch) I Small sca lle oroiects under 50 hectares onlv : (for larg1 projects over 50 hectares go to the next page) 4.2 Pr ject appears genuine and viable I 4.3 Pr posed timetable for implementation shows de relopment within 3-6 months of clearing V or )( D D D Page 74 GUIDELINES FOR TIMBER AUTHORITIES Vl . 4 t) .. C !'I 4.4 Agricultural clearance TAs continued Landowner consents from clan agents (or ILGs if they exist) are in order (Regional Office should do check to ensure all landowner groups included ) Large Scale Projects over 50 hectares only: 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 Detailed Agricultural Plan has been approved by Department of Agriculture and Livestock as accurate project statement (sight letter from Secretary) DAL have approved detailed implementation schedule (sight approval letter) DAL and other relevant industry bodies have confirmed project is viable (sight letters from agencies) Evidence is available of commitment to project, ,. ec;r. , orde ring of suP,p],.;i.e s, construction of. nursery, site survey" ··and tendeiing of· mill construction etc. (sight invoices, orders, other documentation ) DEC approved Environmental Plan is in place or DEC letter states no Environmental Plan is required. (sight approval or comfort letter from DEC ) Incorporated Land Groups have been formed Landowner consents from ILGs are in order (Regional Office should do check to ensure all landowner groups included) Secretary Department of Lands has confirmed land tenure is complete. (sight letter from Secretary) Revenue benefits to landowners are at least at current royalty rate and based on logs scaled, not on logs exported IF THERE IS A )( AGAINST ANY OF THE ABOVE, CONSIDER WHETHER TO ASK THE APPLICANT TO RESUBMIT THE APPLICATION WITHIN THE GUIDELINES, OR RECOMMEND TO PFMC NOT TO GRANT THE TIMBER AUTHORITY. TA-04 Harvesting of other forest produce: Are the following criteria satisfied? ti' for 'YES' )( for ' NO' 5.1 Type and quantity of forest produce is specified GUIDELINES FOR TIMBER AUTHORITIES Vl.4 I ti' or )( D D D D D D D D D ,~ or " I D I Page 75 I EVALUA ION SHEET I Ha 1 rvestin of other forest roduce continued II or )( 5.2 5.3 La 1 downer ~onsents from clan agents are in order (Regional Office should do check to ensure all landowner groups included) Re enue benefits to landowners are at least at cu ' rent royalty rate IF THERE S A )( AGAINST ANY OF THE ABOVE, CONSIDER WHETHER APPLICANT TO RESUBMIT THE APPLICATION WITHIN RECOMMEND TO PFMC NOT TO GRANT THE TIMBER RESULTS d~ EVALUATION: Was the ]~plication outside the Guidelines in any way? D YES D NO IF YES, TATE WHERE APPLICATION IS OUTSIDE THE GUIDELINES ACTION TA!sEN: I D D 0 Aoofi.ication returned to annl icant appt ication within guidelines: with reauest to resubmit LIST THE ~ HANGES NECESSARY TO BRING THE GUIDELINES continued ... I APPLICATION WITHIN THE Page 76 GUIDELINES FOR TIMBER AUTHORITIES Vl . 4 " ,. I EVALUATION SHEET OR □ I Aoolication not accented-recommended to PFMC to refus,~ application 1 . Evaluation Report prepared setting out why application does not fit within the Guidelines 0 2 . Letter to PFMC enclosing application and Evaluation Report and recommending TA not be is1~ued 0 OR 0 Annlication acceotAd recommended to PFMC for issue of TA 1. Evaluation Report prepared □ 2 . Copy of Evaluation Report sent to Regional Offi ,e 3 . Draft Timber Authority prepare d 0 4 . Calculate Performance Bond 0 (Royalty rate plus landowner premium x annual expected harvest divided by 6 ) AMOUNT: K . ..••.. ............. . .. . .. • .. .. .. Specify additional accumulating performance Bond if desired 5. Evaluation Report sent to PFMC with TA application and draft Timber Authority EVALUATION RE.MARKS: GUIDELINES FOR TIMBER AUTHORITIES Vl . 4 [i!J I I D Page 77 0 ,., I ATTACHMENT 5-STANDARD LETTERS I 5 . 1 ==L.....,e:::..;t=-=-=-=, ,a,,,, c=c=o=m...ipi:e-a=n=-.iy.....,i=n=g ,,,I,, ,,n"'"'c=o=m;i;:p~l=-e=-=tc..::,e:;. , ,T=-1;=.,· =m=b"-'e=r Authorit lication Returned to A : icant Date: Application number: ATA TO THE APPLICANT re: Application for Timber Authority Your application for a Timber Authority for* appropriate * { harvesting under 5,000 cubic metres roadline clearance* agricultural clearance* harvesting other forest produce* has been received by this office. delete as per ye r* The application has not been accepted because * d lete as appropriate Application form is not completed* { Application fee of Kl00 not enclosed* * Applicant is not a registered forest indus ry participant* no valid IPA certificate included required information is missing* (If required information is missing, specify here what it is. ) A current copy of the Application form relevant to your application is attached. (Attach TA-01, TA-02, TA-03, or TA-04 as appropriate. It ay also be appropriate to enclose a copy of TA-LOC and/or a Standard ales and Purchase Agreement) Yours sincerely Jean L Kekedo Managing Director cc: Regional Office .•••••..•• Region National Forest Authority Board Secretariat PFMC Chairperson •••.•..•.•• Province GUIDELINES FOR TIMBER AUTHORITIES Vl,4 Page 79 STANDJ D LETTERS 5.2 Letter to PFMC enclosing application, eval ation re ort and draft Timber Authorit Date : File number : Application number: ATA TO TH CHAIRPERSON PR 1 VINCIAL FOREST MANAGEMENT COMMITTEE . · 1 • . : • . . .. . . . PROVINCE re: Apflication for Timber Authority at ....... . .. . I advis~ that I have received the enclosed application for a Timber 1uthority for * { harvesting under 5,000 cubic metres per year* roadline clearance* agricultural clearance* harvesting other forest produce* The Res urce Development Division of the Forest Authority have un~ertaken an evaluation of the application and a copy of the evaluation report is enclosed. Based oJI the application and evaluation, a draft Timber Authori 1iY has been prepared and is enclosed. 1 I · h . 1 d . . Pease ~ote that the draft Timber Aut ority enc ose is in accorda~ce with the standard Guidelines approved by the Nationa~1 Forest Board . we suggest that the Authority be recommerf:ied for issue by the Provincial Minister i n the form which is enclosed. Please ~t te that the Provincial Minister will be required to provide a copy of the Timber Permit with the notification to the Boa d if he/she does propose to issue the Timber Authorit!( . * delet l as appropriate . I Yours s ncerely I Jean L i kedo Managing Director 1. 1 . cc: Reg ona Office .... • .. . •. Region Nat .· onal. Forest Authority Board Sf:;cretariat PFMC Chairperson-. . .....•... Province Page 80 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 0 ATTACHMENT I 6-TIMBER AUTHORITY COND TIONS INDEPENDENT STATE OF PAPUA NEW GUINE FORESTRY ACT 1991 Act, Sec.87 Reg. FORM 18 Timber Authority Authority number: Project Area name: I, . . . . . • . . . • . . . . . . . . . . . . . . . . . • . • . Minister for . . . . ...... . in the ••••...•••••••••••••.••••..•..• Provincial Government by virtue of the powers conferred by Section 87 of he Forestry Act 1991 and all other powers me enabling, grant a Timber Authority to .............................. . a registered forest industry participant (registrat+on number .•••.•...•...• ) (referred to in this Authori y as "the holder") . This Authority authorises the holder to carry out f~restry operations in the project area described, and outlined in red on the map in Schedule 1 ("the Project Area") f ·r the term specified in Schedule 2 subject to the Act and to the following terms and conditions (a) (b) the amount of allowable cut shall be as specif'ed in Schedule 3; the holder must, within 21 days, lodge a perfo~mance bond in accordance with Section 98 of the Act -~or the amount specified in Schedule 4 ( and if the perf'ormance bond is not lodged then this Timber Authority is void and of no effect); (c) the holder must comply with the terms and condi ions specified in Schedule 5 and 6. 1 Dated 19 ....................... (signature of Min'!i.ster) GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 81 - • ,, I DOMESTIC PROCESSING CONDITIONS- A-01 TA-01-Domestic Processing under 5,000 cubic metres per year SCHEDULE 1--Map and description of Project (INSERT A DESCRIPTION OF THE PROJECT AREA AND INCLU EA MAP WITH THE AREA OUTLINED IN RED) SCHEDULE 2-Term and commencement date The term of the Authority is for a period of one ye Ir comme ncing on the 19 (The term may be less than one year) SCHEDULE 3--Allowable cut The annual allowable cut is [INSERT AMOUNT NOT MORE THAN 5,000], subject to the provisions of Clause 3 which may require the annual allowable cut to apply to more th none Timber Authority. ] SCHEDULE 4-Performance Bond The amount of the performance bond will be K ( INSERT AMOUNT OF ROYALTY RATE + LANDOWNER PREMIUM LEVY RATE X ANNUAL ALLOWABLE CUT DIVIDED BY 6) I Deduct ions may be made from the Performance Bond witmout refere nce to the holder, for any late payment or non 1 payment of r evenue due to the resource owners. The Pe rformance Bond will be release d on the authori ation of the Managing Director unde r Seal of the Forest Aui hority after the holde r has submitted a completion report and has satis f ied the terms and conditions of this Authority 1 SCHEDULE 5--Standard conditions (The f ollowing standard conditions have been approve by the Fores t Authority) GUIDELINES FOR TI MBER AUTHORITIES Vl.4 Page 83 L DOMES IC PROCESSING CONDITIONs-TA-O1 1 . 1.1 1.2 2. 2.1 2.2 3 . 3.1 3.2 3.3 In er retation rn lthis Authority "P oject Area" means the area described in Schedule 1; I "r source owners" means the customary owners of the ! timber and other forest products in the Project Area, and includes any person named as owners in the Sales and Purchase Agreement; "t e Act " means the Forestry Act 1991; I "t e holder" means the registered forest industry I participant named in this Timber Authority. Wofds and phrases have the same meanings as in the Forestry Act 1991. Co~ditions Precedent Thf following conditions must be satisfied before this Ti er Authority becomes effective I (a I (b I (c the lodgement of a Performance Bond in accordance with Schedule 4; the continued validity of the Authority holder's registration as a forest industry participant; if the applicant is a foreign enterprise within the meaning of the Investment Promotion Authority Act, the continued validity of the IPA approvals for the activity authorised by the Timber Authority. If the registration or approval referred to in Clause 2 . ceases to be valid, this Timber Authority i ediately becomes void and of no effect. Ha l ves ting su! ject to the terms and conditions of this Author ity, th~ provisions of the Forestry Act and Forestry Refulations, and the provisions of any agreement entered into by the holder with the resource owners, th~ holder may exercise timber rights within the Prcbject Area during the term of this Authority. WhJ re the holder is, or becomes, the holder of another Tirtlber Authority or Timber Authorities having its or th4ir boundary within ten kilometres of the boundary of th4i Project Area, the total annual allowable cut for al , the Timber Authorities combined must not exceed 5,000 cubic metres per annum. I Wh 1 re the holder of this Timber Authority was, on the co encement of this Timber Authority, the holder of Page 84 GUIDELINES FOR TIMBER AUTHORI TI ES Vl.4 .. ,.. 4. 4.1 4.2 5. 5.1 5.2 I DOMESTIC PROCESSING CONDITIONS-r.A-O1 another Timber Authority having its boundary ~ithin ten kilometres o f the boundary of this Timber Aut ority, but did not declare the existence of the firs , Timber Authority at the time of making application for this Timber Authority, this Timber Authority is vo· and of no e ffect. Associated rights In carrying out the terms and conditions of this Authority the holder may, within those parts o~ Project Area in which harvesting is authorised, exerci e rights to (a) enter on and pass through land (but not P.rivate premises); (b) make fire breaks, roads, tracks , bridges, culverts and similar works; (c ) prepare and construct loading and storage sites for forest produce; (d) extract, remove, convert and use road-making materials for the purpose of any of the activities set out in paragraphs (a) to (c) above carried out within the Project Area s ubject to payment of any royalty-equivalent payment agreed with th resource owners or fixed in the Sales and Purchase Agreement; (e ) use, keep and transport vehicles, machine y, plant and e quipment; (f) use roads and waterways; (g) conduct land and resource assessment surv ys (including aerial surveys) and inventorie. Export of timber harvested under this Timber A ,thority is not permitted. Environmental and Forest Management Standards the Environmental Contaminants Act, Environmen al Planning Act, Water Resources Act and other environmental laws of Papua New Guinea. The holder must at all times observe the Key Standards for Selection Logging appended to this Authorit~ or those environmental and forest management stand~rds fixed from time to time by the Managing Directo which replace them. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 85 1· : DOMES IC PROCESSING coNDITIONs-TA-O1 6. Ril hts of Resource Owners 6.1 rn l carrying out its rights under this Authority, the ho der must not interfere with the customary user ri ' hts of the resource owners including the right to (a) hunt; (b) fish; (c) gather plant foods; (d) gather traditional materials for making clothing, I artefacts, tools, utensils and houses; (e~ collect firewood; (f~ plant, maintain and harvest subsistence gardens; (g) enter on and pass through land. I 6.2 No hing in this Authority shall be taken as authorising tht' holder to make food gardens, hunt or fish within th ' Project Area or the areas adjacent to it. I 6.3 Th holder must not fell, cut, remove, dispose of or 6.4 6.5 7 • 7.1 7.2 da age any 1 (a trees which have been declared to be reserve trees I under Section 4 of the Act; (b 1 species of tree or other plants specified as I excluded forest products in the Sales and Purchase Agreement; (c 1 particular plants marked and identified by the I resource owners in accordance with the Sal es and Purchase Agreement; I (d timber or other forest products growing in cultural areas, burial grounds, gardens or reserved areas identified by the resource owners in accordance with the Sales and Purchase Agreement. Clause will be holder and the the Valuer-General Co pensation for any breach of this determined by agreement between the resource owners or will be fixed by if II no agreement can be reached. Where the holder is in breach of the Clause, the Holder mu .t pay the compensation which has been agreed or fi ed under Clause 6.4, within the period of time sp 1 cified by the Managing Director. Pa l ment for timber I Th 1 holder must pay revenue to the resource owners at th~ rates fixed in Schedule 6, in respect of all timber felled and scaled within the Project Area. rn laddition to payments made to the resource owners, th 1 ~older must pay to the Forest Authority levies set ou in Schedule 6, or which are from time to time fixed Page 86 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 • ., 8 . 8.1 8.2 8.3 9. 9.1 9 . 2 10. 10.1 10.2 11. 11.1 by in DOMESTIC PROCESSING CONDITIONS- A-01 I the Minister in respect of the Timber Autho ity, or respect of Timber Authorities generally. I Roads and bridges The holder must construct all bridges and road required for its operation within the Project I rea. The holder must maintain all bridges and roadsl to a standard sufficient to carry normally laden lo~ging trucks and at all times during the term of thi Authority must ensure that all roads which are in use for the logging operation are in a trafficable1 condition. I Any roads constructed by the holder will be av ilable for use by the public without charge . Land and buildings The holder must not erect any buildings or fix~ures within the Project Area other than roads and b idges, landings and other infrastructure mentioned in Clause 4, without the consent of the resource owners. I Any buildings or fixtures constructed in the P oject Area for the purposes of this Authority are se(erable and may be removed by the holder within 90 dayp of the expiration or cancellation of the Timber Autho ity doing as little damage to the land as possible. . I Measurement and recording of forest prodi ce . . I All forest produce harvested in the proJect area must be scaled and numbered in accordance with direptions given from time to time by the Managing Directpr. Subject to any other direction which may be g~~en under Clause 10.1, timber harvested in the Project Area must be scaled, recorded and declared in accordance!! with the PNGFA Directions for Scaling, but the use of a Licenced Log Scaler is not required, and the use of off'cial numbered Log Scale Record Sheets and numbered I og tags is not required. Subcontracting prohibited Harvesting under this Timber Authority may be arried out only by the person named as the holder and must not be subcontracted, other than by the employment of individual contract workers on piece-rates. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 87 i'"DOMES ,IC PROCESSING CONDITIONS-:----TA-01 I . 12. Ma keting II 12.1 Thf Holder must endeavour to obtain the best price for thj timber harvested under this Authority and must in all cases obtain arm's length prices. For the purposes of ll this clause, a price is an arm's length price if it is equal to or greater than the price which would have be n obtained on an arm's length sale on the same terms an : conditions of sale other than price. I 1 . . h 13 . Co iance wit Laws I 13.1 Thi holder must observe the conditions of any permit, li ,ence approval or other authority relating to the pr ject, and the provisions of all relevant laws of Pa i' ua New Guinea. I SCHEDU E 6--REVENUE PAYMENTS I 1. Royalty equivalent payments K m3 (minimum KlO) payable to owners of timber Pa ments must be made to resource owners and receipts !~Je~~~m!~~o:~:!n~ea:u~!!~~~~r~~r;h~YF~~!sio!~t~~r!~~ :~Jt~ 0 ~~~~owing in respect of all logs scaled during Pr !lvincial Government share of 15% and with-holding tax of 5% of remaining 85% to be deducted by the holder and Page 88 ,itted to the Forest Authority in the form of cheques the intended recipients . All receipts and payments 'uld be submitted with the Log Scale Record Sheets Declaration of Logs Harvested. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 I DOMESTIC PROCESSING CONDITIONS-~~A-O1 2. Landowner Premium levy 3. 4 • K m3 Landowner Premium Levy is payable to I *Resource owners who receive royalty payments I OR *Recognised Representative Landowner Body recognised by the Managing Director Name of Recognised Body: *strike out which ever is not applicable Payments must be made to resource owners and receipts ' . for payment must be submitted to the Forest A~thority Revenue Accountant at Headquarters by the 10tr~ of the month following in respect of all logs scaled 'during the month. PNGFA Operating Levy K m3 payable to the PNG Forest Authori y I Payments must be made to the Forest Authority Accountant at Headquarters by the 10th of the following in respect of all logs scaled during month. Reforestation Levy K m3 payable to PNG Forest Authority evenue onth the Payments must be made to the Forest Authority evenue Accountant at Headquarters by the 10th of the onth following in respect of all logs scaled during the month. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 89 ROADLINE CLEARANCE CONDITIONS- A-02 TA-02-Roadline Clearance SCHEDULE 1--Map and description of Project A ea The Project Area is aan area of hectares of ! oad corridor of maximum width 40 metres along the route shown in red on the map. (THE MAP SHOULD SHOW THE ROUTE OF THE ENTIRE ROAD fN 5 KM SECTIONS NUMBERED IN ORDER OF CLEARING) 11 SCHEDULE 2-Term and commencement date The term of the Authority is for a period of one year commencing on the 19 (The term may be less than one year) SCHEDULE 3--Allowable cut The annual allowable cut is that timber authorised harvested from the Project Area in accordance with procedures set out in clause 3. SCHEDULE 4-Performance Bond The amount of the performance bond will be K ( INSERT AMOUNT OF ROYALTY RATE + LANDOWNER PREMIUM X ESTIMATED ANNUAL ALLOWABLE CUT DIVIDED BY 6) r o be he EVY RATE Deductions may be made from the Performance Bond without reference to the holder, for any late payment or not -payment of revenue due to the resource owners. The Performance Bond will be released on the authortsation of the Managing Director under Seal of the Forest A~thori ty after the holder has submitted a completion report i nd has satisfied the terms and conditions of this Authorit 1 . (Consider whether a further accumulatin erformanc bond should be imposed as a percentage of the FOB value 1 £ the timbe r if this TA is for a large project. This bond would have to be lodged progressively, afte r eac h e xport hipment, and a separate Confirmation of Lodgement Form would have to be lodged with the Forest Authority. That form wou d be the basis for approval of the next export shipment. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 9 1 ROADL I NE CLEARANCE CONDITIONs-TA-02 The tw 1 paragraphs above would not apply to the accumulating bond, ~ecause an accumulating bond would secure non perfor~ance of the · subsequent development, and could theref9re not be released until possibly several years after the Ti er Authority has been completed. I I SCHED ~ E 5-Standard conditions (The s andard conditions below have been approved by the Forest IAuthority) . I [Optio al clauses shown in square brackets.] I 1. 1.1 1.2 2. 2.1 2.2 I • I ter retation I . h . In this Aut ority " l'uthorised Harvesting Area" means the area in respect of which harvesting is, from time to time, authorised under Clause 3; " lroject Area" means the area described in Schedule 1; esource owners" means the customary owners of the timber and other forest products in the Project Area, and includes any person named as owners in the Sales and Purchase Agreement; "he Act" means the Forestry Act 1991; I "he holder" means the registered forest industry I participant named in this Timber Authority. w9,rds and phrases have the same meanings as i n the Fr estry Act 1991. Conditions Precedent TJ~ following conditions must be satisfied before this T'mber Authority becomes effective I ( ) the lodgement of a Performance Bond in accordance I with Schedule 4 ; (~) the continued validity of the holder's I registration as a forest industry participant; (c ) if the applicant is a foreign enterprise within the meaning of the Investment Promotion Authority Act, the continued validity of the IPA approvals for the activity authorised by the Timber Authority. If, the registration or approval referred to in Clause 2.1 ceases to be valid, this Timber Authority i ediately becomes void and of no effect. Page 92 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 ... ., 0 .. I R0ADLINE CLEARANCE CONDITIONs-'f'A- .O2 [Some timber Authorities may be conditional-that is, they will be issued several months prior to when the ha~,esting is actually to take place, and there may be a numbe of pre conditions to be satisfied before the Timber Author'ty comes into operation. Unless these conditions are satisf~ed, the Timber Authority will be of no effect. Satisfactiof of the conditions must be certified in writing by the Managing Director before the Timber Authority becomes operative. 2.3 Subject to satisfaction of the requirements of clause 2.1, the terms and conditions of this Authorit will not commence to operate until the Managing Dir ctor has c e rtified in writing that the followi ng condit'ons have been fulfilled insert conditions such as (a) The Secretary, Department of Transport ha approved the route for the road. (b) There is adequate evidence of intention t carry out the project in the form of: construction contract already let; identified source of funding for construction; (c) The Secretary, Department of Works has ce in writing that the design (including ali for the road meets Department of works st 2.4 The Managing Director's certification under const itutes a term of this Authority.] 3. Harvesting 3.1 Subject to the terms and conditions of this Aut ority, the provisions of the Forestry Act and Forestr~ Regulations, and the provisions of any agreement entered into by the holder with the resource o ers, the holder may exercise timber rights within th Authorised Harvesting Area during the term oft is Authority. 3.2 For the purposes of Clause 3.1, the Authorised Harvesting Area is (a) on the commencement of the Timber Authorit -the area of the first section of road corridor (not exceeding five kilometres in length) numbe ed "l" in the map in Schedule 1; (b) after the first Authorised Harvesting Area has been cleared-any further section of road corridor, not exceeding five kilometres in length, which has been authorised for harvesting i accordance with Clause 3.3 . 3.3 Where t he holder has provided to the Managing a s tatement in writing from the Department of D·rector GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Wor ks ' Page 93 , ·- -- R0ADLI,NE CLEARANCE coNDITIONs-TA-O2 I . . . d . h . th t road construction has commence int e previous seJ tion of cleared road corridor, and that the standard of ii road construction is adequate to the requirements of th@ Department, the Managing Director may authorise hakvesting to take place in the section of road cot ridor, not exceeding five kilometres in length, wh!'ch is next scheduled for clearing. I . . . d 3.4 Th • holder must obtain a separate certification an authorisation for each five kilometre section of road co~ridor. h ll . d . . 3.5 T f total Authorise Harvesting Area at any one time must not exceed 20 hectares (5 kilometres x 40 I metres).] As l ociated ri hts 4. 4.1 rn l carrying out the terms and conditions of this Au hority the holder may exercise rights within those i~f ts of Project Area in which harvesting is authorised 4.2 5. 5.1 ( a1 1 ) enter on and pass through land (but not private II premises); ( ]jll) make fire breaks, roads, tracks, bridges, culverts and similar works; ( ell) prepare and construct loading and storage sites for forest produce; ( ) extract, remove, convert and use road-making materials for the purpose of any of the activities set out in paragraphs (a) to (c) above carried out within the Project area subject to payment of any royalty agreed with the resource owners or fixed in the Sales and Purchase Agreement; use, keep and transport vehicles, machinery, plant and equipment; use roads and waterways; conduct land and resource assessment surveys (including aerial surveys) and inventories. S~bject to this Authority and the laws of PNG, the hallder may export timber harvested under this A thority. I Environmental and Forest Management Standards TJl holder must at all times observe the provisions t~e Environmental Contaminants Act, Environmental P~anning Act, Water Resources Act and other e vironmental laws of Papua New Guinea. of Page 94 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 .. 6. 6.1 6.2 6.3 6.4 I R0ADLINE CLEARANCE coND.:i:TIONs-TA-O2 Rights of Resource owners In carrying out its rights under this Authority, the holder must not interfere with the customary user rights of the resource owners including the ri ht to (a) hunt; (b) fish; (c) gather plant foods; (d) gather traditional materials for making c othing, artefacts, tools, utensils and houses; (e) collect firewood; (f) plant, maintain and harvest subsistence g , rdens; (g) enter on and pass through land. Nothing in this Authority shall be taken as au horising the holder to make food gardens, hunt or fish w\ithin the Project Area or the areas adjacent to it. The holder must not fell, cut, remove, dispose lof or damage any (a) trees which have been declared to be reserjwe trees under Section 4 of the Act; (b) species of tree or other plants specified as excluded forest products in the Sales and urchase Agreement; (c) particular plants marked and identified by the resource owners in accordance with the Sales and Purchase Agreement; I (d) timber or other forest products growing in \ cultural areas, burial grounds, gardens or reserved areas identified by the resource l wners in accordance with the Sales and Purchase Agreement. Compensation for any breach of this Clause will be determined by agreement between the holder and yhe resource owners or will be fixed by the Valuer- eneral if no agreement can be reached. 6.5 Where the holder is in breach of this Clause, t e holder must pay the compensation which has been agreed or fixed under Clause 6.4, within the period of time specified by the Managing Director. 7. Payment for timber 7.1 The holder must pay revenue to the resource owne sat the rates fixed in Schedule 6, in respect of all timber felled and scaled within the Project Area. 1 7.2 In addition to payments made to the resource own rs, the holder must pay to the Forest Authority levifs set out in Schedule 6, or which are from time to tim fixed GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 95 R0ADL NE . CLEARANCE coNDITIONs-TA-O2 8. 8.1 8.2 8.3 9. 9 . 1 9.2 10. 10.1 10.2 10 .3 10 . 4 ·b (1 the Minister· in respect of the Timber Authority, or i respect of Timber Authorities generally. Rads and bridges II . T~e holder must construct all bridges and roads r quired for its operation within the Project Area. I . . . d Te holder must maintain all bridges and roa s to a s 1 andard sufficient to carry normally laden logging t 1 ucks and at all times during the term of this A thority must ensure that all roads which are in use fr the logging operation are in a trafficable c ndition . A,y roads constructed by the holder will be available f ,r use by t he public without charge. I . . L nd and buildings T! e holder must not erect any buildings or fixtures w+thin the Project Area other than roads and bridges, 1 :' ndings and other infrastructure mentioned in Clause 4 1 without the consent of the resource owners. I A?Y buildings or fixtures constructed in the Project Afea for the purposes of this Authority are severable and may be removed by the holder within 90 days of the efpiration or cancellation of the Timber Authority ding as little damage to the land as possible. Mr asurement and recording of forest produce All forest produce harvested in the project area must bf scaled and numbered in accordance with directions gt ven from time to time by the Managing Director. s l bject to any other direction which may be given under ciause 10.1, if the timber harvested in the Project Afea is for domestic use, the forest produce must be s ~aled, recorded and declared in accordance with the P!GFA Directions for Scaling, but the use of a Licenced L , g Scaler is not required, and the use of official n , mbered Log Scale Record Sheets and numbered log tags i f not required. slLbject to any other direction which may be given under c , aus~ 10.1, if the timber harvested in the Project A. ea is to be exported, it must be scaled, recorded and d clared in accordance with the PNGFA Direct ions for s · a ling. I were timber havested in the Project Area is to be e , ported, the holder must also comply with procedures Page 96 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 r .. ROADLINE CLEARANCE CONDITIONS-~A-02 for export of logs from time to time specified by the Managing Director. 11. Subcontracting prohibited 11.1 Harvesting under this Timber Authority may be 1carried out only by the person named as the holder an~ must not be subcontracted, other than by the employment of individual contract workers on piece- rates. 12. Marketing 12.1 The Holder must endeavour to obtain the best price for the timber harvested under this Timber Authority and must in all cases obtain arm's length prices. For the purposes of this clause, a price is an arm's length price if it is equal to or greater than the price which would have been obtained on an arm's length sale on the same terms and conditions of sale other than price. 13. Compliance with Laws 13.1 The holder must observe the conditions of any ~ermit, licence approval or other authority relating t~ the project, and the provisions of all relevant lais of Papua New Guinea. l \ GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 97 ROADLfNE CLEARANCE coNDITIONs-TA-02 I I SCHEDULE 6--REVENUE PAYMENTS 1. a ments ' I K I m3 (minimum K10) payable to owners of I timber I • P5yments must be made to resource owners and receipts for payment must be submitted to the Forest Authority R9ivenue Accountant at Headquarters by the 10th of the m9nth following in respect of all logs scaled during tlie month. P t vincial Government share of 15% and with-holding tax o~ 5% of remaining 85% to be deducted by the holder and remitted to the Forest Authority in the form of cheques f qr the intended recipients. All receipts and payments s~ 1 ould be submitted with the Log Scale Record Sheets and Declaration of Logs Harvested. 2. Landowner Premium levy m3 Landowner Premium Levy is payable to *Resource owners who receive royalty payments OJ~ *Recognised Representative Landowner Body recognised by the Managing Director Name of Recognised Body: *strike out which ever is not applicable P~yments must be made to resource owners and receipts for payment must be submitted to the Forest Authority RJvenue Accountant at Headquarters by the 10t h of t he mdnth following in respect of all logs scaled during the month . Page 98 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 .. .. R0ADLINE CLEARANCE coNDITIONs-TA-O2 3. PNGFA Operating Levy K m3 payable to the PNG Forest Authority Payments must be made to the Forest Authority Revenue Accountant at Headquarters by the 10th of the onth following in respect of all logs scaled during the month. 4. Log Export Surveillance Levy (export projects only) K m3 payable to PNG Forest Authority Payments in respect of all logs in respect of which an export licence is sought must be made to the Forest Authority Revenue Accountant at Headquarters at the time that application is made for the export licence . GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 99 .---- ,. .. ,. .. AGRICULTURAL CLEARANCE CONPITIONS- A-03 STANDARD TERMS AND CONDITIONS TA-03-Agricultural and other Land Use Clearance SCHEDULE 1--Map and description of Project Area The Project Area is an area of hectares (INSERT A DESCRIPTION OF THE PROJECT AREA AND INCLU EA MAP WITH THE AREA OUTLINED IN RED. THE MAP SHOULD SHOW THE PRECISE AREA OF AGRICULTURAL DEVELOPMENT. ) SCHEDULE 2-Term and commencement date The term of the Authority is for a period of one ye?r commencing on the 19 I (The term may be less than one year) SCHEDULE 3--Allowable cut The annual allowable cut is that timber authorised to be harvested from the Project Area in accordance with the procedures set out in clause 3. SCHEDULE 4-Performance Bond The amount of the performance bond will be K ( INSERT AMOUNT OF ROYALTY RATE + LANDOWNER PREMIUM LEVY RATE X ESTIMATED ANNUAL ALLOWABLE CUT DIVIDED BY 6) I Deductions may be made from the Performance Bond without reference to the holder, for any late payment or non-payment of revenue due to the resource owners. The Performance Bond will be released on the authortsation of the Managing Director under Seal of the Forest Aithority after the holder has submitted a completion report and has satisfied the terms and conditions of this Authoritf . (Consider whether a further accumulating performance bond should be imposed as a percentage of the FOB value of the timber if this TA is for a large project. This bond would have to be l odged progressively, after each export shipment, and a separate Confirmation of Lodgement Form would have to GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 101 r-- :-------- AGRICUi TURAL CLEARANCE coNDITIONs-TA-03 be lodgep with the Forest Authority. That form would be the l::)a,sis f?fr approval of the next export shipment. The two earagraphs above would not apply to the accumulating bond, because an accumulating bond would secure non performahce of the subsequent development, and could therefor[ not be released until possibly several years after the Timber Authority has been completed. SCHEDULk 5--Standard conditions (The sta~dard conditions below have been approved by the Forest Afthority) [Optionak clauses shown in square brackets.] 1. Interpretation 1.1 In rhis Authority "Authorised Harvesting Area" means the area in respect 1.2 2. 2.1 I of which harvesting is, from time to time, authorised under Clause 3; "Project Area" means the area described in Schedule 1; "re ource owners" means the customary owners of the timber and other forest products in the Project Area, and includes any person named as owners in the Sales and Purchase Agreement; "the Act" means the Forestry Act 1991; "the holder" means the registered forest industry participant named in this Timber Authority. Worqs and phrases have the same meani ngs as in the Forestry Act 1991. Conbitions Precedent Th:J following conditions must be satisfied before this Tinier Authority becomes effective (a) the lodgement of a Performance Bond in accordance with Schedule 4; (b) the continued validity of the holder's registration as a forest industry participant; (c) if t he applicant is a foreign enterprise within ' the meaning of the Investment Promotion Authority Act, the continued validity of the IPA approvals for the activity authorised by the Timber Authority . Page 102 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 .. AGRICULTURAL CLEARANCE CONDITIONS-·-1A-OJ 2.2 If the registration or approval referred to in Clause 2.1 ceases to be valid, this Timber Authority immediately becomes void and of no effect. [Some timber Authorities may be conditional-that is, they will be issued several months prior to when the harvesting is actually to take place, and there may be a number of pre conditions to be satisfied before the Timber Authorf. tY comes into operation. Unless these conditions are satisfied, the Timber Authority will be of no effect. Satisfactio~ of the conditions must be certified in writing by the Managing Director before the Timber Authority becomes operative. 2.3 Subject to satisfaction of the requirements of l clause 2.1, the terms and conditions of this Authority will not commence to operate until the Managing Director has certified in writing that the following conditt·ons have been fulfilled 2.4 insert conditions such as (a) The secretary, Department of Agriculture and Livestock has approved in writing an agriculture development plan for the project. (b) There is adequate evidence of intention to carry out the development project in the form of: ordering of seedlings; establishment of nursery; \ tendering for construction or design of processing plant. (c) The secretary, Department of Lands and Physical Planning has certified in writing that the Project Area is under agricultural lease or some bther lan~ tenure appropriate to the nature of rhe pro1ect.J The Managing Director ' s certification under constitutes a term of this Authority.] c1l use 1 2.3 3. Harvesting 3.1 Subject to the terms and conditions of this Au~hority, the provisions of the Forestry Act and Forestry Regulations, and the provisions of any agreemeqt entered into by the holder with the resource owners, the holder may exercise timber rights within tQe Authorised Harvesting Area during the term of this Authority. Two alternative clauses are provided for the definition of 'Authorised Harvesting Area'. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Pa ge 103 AGRI~iLTURA'L CLEARANCE CONDITIONS-·· TA-0 3 For smJ11 agricultural projects staging is probably not warran~ed. Use this clause for projects where harvesting is not st j ged. [3. 2 For the purposes of Clause 3.1, the Authorised Harves~ing Area is the Project Area.] For la ge agricultural projects, staged authorisation will be app}opriate . An approved implementation schedule should have been submitted with the Application for the Timber Author·ty setting out the rate and areas for clearing. This should form the basis for the stages for authorisation. An imp~ementation schedule (Schedule 7) s hould be drawn up for each Timber Authority, setting out the areas to be harvesrled in chronological order, and listing the required preconditions for authorisation of each stage of harvesting. This would form the basis for the staged authorisation processes This shcedule should be drawn up in consultation with t~e agency supervising the development project Department of Agriculture and Livestock, in the case of an agricultural project. [3.2 For the purposes of Clause 3.1, the Authorised Harvesting Area is ( ) on the commencement of the Timber Authority- the area of the first area scheduled for clearing in the Schedule 7 (Implementation Schedule); (b) after the first Authorised Harvesting Area has been cleared-any further area which has been authorised for harvesting in accordance with Clause 3.3. 3.3 Wh re the holder has provided to the Managing Director a certification in writing from the department re1sponsible for the development project that the holder has satisfied the required preconditions set out i n Schedule 7 ( Implementation Schedule), the Managing Dif ector may authorise harvesting to take place in that area which is next scheduled for clearing.] 3.4 The holder must obtain a separate certification for each area set out in the Schedule 7. 4. AJsociated rights 4.1 In carrying out the terms and conditions of this Au hority the holder may exercise rights within those parts of Project Area in which harvesting is authorised tol Page 104 enter on and pass through land (but not private premises); make fire breaks, roads, tracks, bridges, culverts and similar works; GUIDELINES FOR TIMBER AUTHORITIES Vl.4 AGRICULTURAL CLEARANCE CONDITIONS- A-OJ (c) ( d) (e) ( f) ( g) prepare and construct loading and storagl sites for forest produce; extract, remove, convert and use road-ma ing materials for the purpose of any of the ~ctivities set out in paragraphs (a) to (c) above carried out within the Project area subject to payme4t of any royalty agreed with the resource owners ,r fixed in the Sales and Purchase Agreement; use, keep and transport vehicles, machinl ry, plant and equipment; use roads and waterways; conduct land and resource assessment sur eys (including aerial surveys) and inventori s. 4. 2 Subject to this Authority and the laws of PNG ,' the holder may export timber harvested under this Authority. 5. 5.1 6. 6.1 6.2 Environmental and Forest Management Stan ards The holder must at all times observe the prov •ls ions the Environmental Contaminants Act, Environme tal Planning Act, Water Resources Act and other environmental laws of Papua New Guinea. Rights of Resource owners of In carrying out its rights under this Authori y, the holder must not interfere with the customary 1ser rights of the resource owners including the r'ght to (a) hunt; (b) fish; (c) gather plant foods; (d) gather traditional materials for making lothing, artefacts, tools, utensils and houses; (e) collect firewood; (f) plant, maintain and harvest subsistence (g) enter on and pass through land. Nothing in this Authority shall be taken the holder to make food gardens, hunt or fish the Project Area or the areas adjacent to it. horising ithin 6.3 The holder must not fell, cut, remove, dispose of or damage any- 1 (a) trees which have been d~clared to be rese ve trees under Section 4 of the Act; (b) species of tree or other plants specified as excluded forest products in the Sales and Purchase Agreement; GUIDELINES FOR TIMBER AUTHORITIES Vl . 4 Page 105 AGRICJ L'l'URAL CLEARANCE CONDITIONs-TA--0 3 6.4 6.5 7 • 7.1 7.2 8. 8.1 8.2 8.3 9. particular plants marked and identified by the resource owners in accordance with the Sales and Purchase Agreement; timber or other forest products growing in cultural areas, burial grounds, gardens or reserved areas identified by the resource owners in accordance with the Sales and Purchase Agreement. coJpensation for any breach of this Clause will be determined by agreement between the holder and the resource owners or will be fixed by the Valuer-General if lno agreement can be reached. Where the holder is in breach of this Clause, the hoider must pay the compensation which has been agreed or fixed under Clause 6.4, within the period of time specified by the Managing Director. Paiment for timber The holder must pay revenue to the resource owners at the rates fixed in Schedule 6, in respect of all timber fe led and scaled within the Project Area. In addition to payments made to the resource owners, the holder must pay to the Forest Authority levies set out in Schedule 6, or which are from time to time fixed by the Minister in respect of the Timber Authority, or in respect of Timber Authorities generally. Rods and bridges The holder must construct all bridges and roads required for its operation within the Project Area. The holder must maintain all bridges and roads to a standard sufficient to carry normally laden logging trucks and at all times during the term of this Autpority must ensure that all roads which are in use for) the logging operation are in a trafficable condition. Any roads constructed by the holder will be available for use by the public without charge. LaJ d and buildings 9.1 The holder must not erect any buildings or fixtures witpin the Project Area other than roads and bridges, landings and other infrastructure mentioned in Clause 4, without the consent of the resource owners. Page 106 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 "' 9.2 10. 10.1 10.2 I AGRICULTURAL CLEARANCE COND-ITIONs-rA-03 Any buildings or fixtures constructed in the P 1 roject Area for the purposes of this Authority are s~verable and may be removed by the holder within 90 day 1 s of the expiration or cancellation of the Timber Auth9rity doing as little damage to the land as possible[. Measurement and recording of forest prod ce All forest produce harvested in the project a~ea must be scaled and numbered in accordance with dirjctions given from time to time by the Managing Director. Subject to any other direction which may be giCen under Clause 10.1, if the timber harvested in the P~oject Area is for domestic use, the forest produce ~ust be scaled, recorded and declared in accordance w'th the PNGFA Directions for Scaling, but the use of Licenced Log Scaler is not required, and the use of official numbered Log Scale Record Sheets and numbered log tags is not required. 10.3 Subject to any other direction which may beg· en under Clause 10.1, if the timber harvested in the P oject Area is to be exported, it must be scaled, reclbrded and declared in accordance with the PNGFA Directio s for Scaling. I 10.4 Where timber havested in the Project Area is to be exported, the holder must also comply with prdcedures for export of logs from time to time specified by the Managing Director. 1 11. Subcontracting prohibited I 11.1 Harvesting under this Timber Authority may be carried out only by the person named as the holder and may not be subcontracted, other than by the employment of individual contract workers on piece-rates. ' 12. Marketing 12.1 The Holder must endeavour to obtain the best p ice for the timber harvested under this Timber Authori y and must in all cases obtain arm's length prices. For the purposes of this clause, a price is an arm's length price if it is equal to or greater than the pr~ce which would have been obtained on an arm's length sa~e on the same terms and conditions of sale other than p ice. 13. Compliance with Laws 13.1 The holder must observe the conditions of any ermit, licence approval or other authority relating to the GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 107 AGRICUl TURAL CLEARANCE CONDITIONS-TA~ 0 3 l1 . h · · 1 f proJect, and t e provisions of all relevant aws o Pa, ua New Guinea. SCHEDULE 6--REVENUE PAYMENTS 1. Royl lty equivalent payments K m3 (minimum KlO) payable to owners of timber Payments must be made to resource owners and receipts for\ 1 payment must be submitted to the Forest Authority Revenue Accountant at Headquarters by the 10th of the month following in respect of all logs scaled during the month. Provincial Government share of 15% and with-holding tax of 5% of remaining 85% to be deducted by the holder and remitted to the Forest Authority in the form of cheques for the intended recipients. All receipts and payments should be submitted with the Log Scale Record Sheets and Declaration of Logs Harvested. 2. Landowner Premium levy K m3 Lan~owner Premium Levy is payable to *Resource owners who receive royalty payments I OR I *~ecognised Representative Landowner Body recognised by the Managing Director Name of Re cognised Body : *st ~ike out which ever is not applicable Payments must be made to resource owners and r e ce ipts for 1payment must be submitted to the Forest Authority Re v nue Accountant a t Headquarters by the 10th of the month following in r e spect of all logs scaled during the month. Page 108 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 AGRICULTURAL CLEARANCE coNDITIONs-TA-03 3. PNGFA Operating Levy K m3 payable to the PNG Forest Authority Payments must be made to the Forest Authori ty Revenue Accountant at Headquarters by the 10th of t he month following i n respect of all logs scal ed during the month . I 4. Log Export Surveillance Levy (export projects only) K m3 payable to PNG Forest Authority Payments in respect of all logs in respect of which an export licence is sought must be made to the ~orest Authority Revenue Accountant at Headquarters at the time that application is made for the export licence. SCHEDULE 7--IMPLEMENTATION SHEDULE (The following is an example of what an i mplementation schedule might l ook like. This implementation schedule should be drawn up by the Timber Authority applicant and approved by Department of Agriculture and Livestoc1.) AREAS FOR CLEARING HECTARES ANTICIPATED REQUIRED Plrl:CONDITION TIMING 1. Site office and 20 November 1995 nursery 2. Planting area 5,000 June 1996 Site offi ce built, nursery established 3 . etc. 4. 5. 6. 7. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 109 - ... (I .. C, OTHER FOREST PRODUCT CONDITIONS-r A-04 TA-O4-Harvesting of Other Forest PrQduce SCHEDULE 1--Map and description of Project A ea The Project Area is (INSERT A DESCRIPTION OF THE PROJECT AREA AND INCLUDE A MAP WITH THE AREA OUTLINED IN RED) SCHEDULE 2-Term and commencement date The term of the Authority is for a period of one year commencing on the 19 (The term may be less than one year) SCHEDULE 3--Allowable cut The annual allowable cut is (specify volume and type of other forest product) SCHEDULE 4-Performance Bond The amount of the performance bond will be K ( INSERT AMOUNT OF ROYALTY RATE + LANDOWNER PREMIUM LEVY RATE X ANNUAL ALLOWABLE CUT DIVIDED BY 6) Deductions may be made from the Performance Bond without reference to the holder, for any late payment or non-payment of revenue due to the resource owners . The Performance Bond will be released on the authorisation of the Managing Director under Seal of the Forest A+thority after the holder has submitted a completion report and has satisfied the terms and conditions of this Authorit. SCHEDULE 5-Standard conditions (The standard conditions below have been approved Forest Authority) GUIDELINES FOR TIMBER AUTHORITIES Vl.4 - - - I by the Page 111 o·THER IF0REST PRODUCT CONDITIONs-TA~O4 1 . 1.1 1.2 2. 2.1 2.2 3. 3.1 Inl erpretation In ~this Authority "Alllthorised Harvesting Area" means the area in respect of which harvesting is, from time to time, I authorised under Clause 3; "Pi oject Area" means the area described in Schedule 1; "n~source owners" means the customary owners of the timber and other forest products in the Project Area, and includes any person named as owners in the Sales and Purchase Agreement; "tm.e Act" means the Forestry Act 1991 ; "the holder" means the registered forest industry participant named in this Timber Authority. I, Wol ds and phrases have the same meanings as in the Fo estry Act 1991. ' I Conditions Precedent The following conditions must be satisfied before this Timber Authority becomes effective (a) the lodgement of a Performance Bond in accordance with Schedule 4; (b) the continued validity of the holder"s registration as a forest industry participant; (c) if the applicant is a foreign enterprise within the meaning of the Investment Promotion Authority Act, the continued validity of the IPA approvals for .the activity authorised by the Timber Authority . If the registration or approval referred to in Clause 2.1 ceases to be valid, this Timber Authority irnn\ediately becomes void and of no effect. Ii • Harvesting Sutiject to the terms and conditions of this Authority, the provisions of the Forestry Act and Forestry Regulations, and the provisions of any agreement entered into by the holder with the resource owners, th~ holder may exercise rights to harvest other forest produce within the Project Area during the term of this Au-thority. Page 112 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 OTHER FOREST PRODUCT CONDITIONs-'l'A-O4 4. Associated rights 4.1 In carrying out the terms and conditions of this Authority the holder may exercise rights within those parts of Project Area in which harvesting is cluthorised to (a) enter on and pass through land (but not private premises); (b) make fire breaks, roads, tracks, bridges, culverts and similar works; (c) prepare and construct loading and storage sites for forest produce; (d) extract, remove, convert and use road-ma ing materials for the purpose of any of the activities set out in paragraphs (a) to (c) above carried out within the Project area subject to payment of any royalty agreed with the resource owners or fixed in the Sales and Purchase Agreement; (e) ( f) (g) use, keep and transport vehicles, machin, ry, and equipment; , use roads and waterways; 1 conduct land and resource assessment surveys (including aerial surveys) and inventories. plant 4.2 Subject to this Authority and the laws of PNG, the holder may export forest produce harvested under this Authority. 5. I Environmental and Forest Management Standards 5.1 The holder must at all times observe the prov]sions of the Environmental Contaminants Act, Environmenltal Planning Act, water Resources Act and other , environmental laws of Papua New Guinea. 6. Rights of Resource owners 6.1 In carrying out its rights under this Authorit1-, the holder must not interfere with the customary user rights of the resource owners including the right to (a) hunt; (b) fish; (c) gather plant foods; (d) gather traditional materials for making a, 1 1othing, artefacts, tools, utensils and houses; (e) collect firewood; (f) plant, maintain and harvest subsistence ardens; (g) enter on and pass through land. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 113 -- -- - - --- ---- - , OTHER FOREST PRODUCT coNDITIONs-TA-O4 6.2 Nothing in this Authority shall be taken as authorising the holder to make food gardens, hunt or fish within the Project Area or the areas adjacent to it. 6.3 The holder must not fell, cut, remove, dispose of or damage any 6.4 (a) trees which have been declared to be reserve trees under Section 4 of the Act; (b) species of tree or other plants specified as excluded forest products in the Sales and Purchase Agreement; (C) ( d) I particular plants marked and identified by the resource owners in accordance with the Sales a nd Purchase Agreement; timber or other forest products growing in cultural areas, burial grounds, gardens or reserved areas identified by the resource owners in accordance with the Sales and Purchase Agreement. Compensation for any breach of this det~rmined by agreement between the res6urce owners or will be fixed by if no agreement can be reached. Clause will be holder and the the Valuer-General 6.5 Whee the holder is in breach of this Clause, the holder must pay the compensation which has been agreed or fixed under Clause 6.4, within the period of time specified by the Managing Director. 7 . 7.1 7.2 8. 8.1 8.2 Paybent for forest produce The holder must pay revenue to the resource owners at the jrates fixed in Schedule 6, in respect of all forest produce harvested within the Project Area . In ddition to payments made to the resource owners, the holder must pay to the Forest Authority levies set out in Schedule 6, or which are from time to t i me f ixed by the Minister in respect of the Timber Authority, or in respect of Timber Authorities generally. Roah s and bridges The holder must construct all bridges and roads required for its operation within the Project Area. The li holder must maintain all bridges and roads to a standard sufficient to carry normally laden logging trucks and at all times during the term of this Authority must ensure that all roads which are in use for the logging operation are in a trafficable condition. Page 114 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 .J .-OTHER FOREST PRODUCT CONDITIONs-l'A-O4 8.3 Any roads constructed by the holder will be available for use by the public without charge. 9. 9.1 9.2 10. 10.1 Land and buildings The holder must not erect any buildings or fi~tures within the Project Area other than roads and 6ridges, landings and other infrastructure mentioned iq Clause 4, without the consent of the resource owners1 Any buildings or fixtures constructed in the Piroject Area for the purposes of this Authority are severable and may be removed by the holder within 90 days of the expiration or cancellation of the Timber Authority doing as little damage to the land as possiblJ. Measurement and recording of forest produce All forest produce harvested in the project area must be measured and declared in accordance with directions given from time to time by the Managing Direc~or. 10.2 Where forest produce havested in the Project Area is to be exported, the holder must also comply with any procedures for export of forest produce from time to time specified by the Managing Director. 11. 11.1 12. 12.1 13. 13.1 Subcontracting prohibited Harvesting under this Timber Authority may be 1 carried out only by the person named as the holder an~ must not be subcontracted, other than by the employment of individual contract workers on piece-rates. Marketing The Holder must endeavour to obtain the best price for the forest produce harvested under this Timber Authority and must in all cases obtain arm's length prices. For the purposes of this clause, a price is an arm's length price if it is equal to or greatef than the price which would have been obtained on anlr arm's length sale on the same terms and conditions of sale other than price. Compliance with Laws The holder must observe the conditions of any permit, licence approval or other authority relating to the project, and the provisions of all relevant laws of Papua New Guinea. GUIDELINES FOR TIMBER AUTHORITIES Vl.4 Page 115 - - - - -- OTHER l oREST PRODUCT CONDITIONs-TA-O4 SCHEDUJ E 6--REVENUE PAYMENTS 1. Royalty equivalent payments (I~SERT RATE OF ROYALTY FOR VARIOUS FOREST PRODUCT TYFES) Payments must be made to resource owners and receipts for payment must be submitted to the Forest Authority Revenue Accountant at Headquarters by the 10th of the month following in respect of all produce declared during the month. Pro 1 incial Govern~ent share of 15% and with-holding tax of 6% of remaining 85% to be deducted by the holder and remti.tted to the Forest Authority in the form of chequ·es for the intended recipients. All receipts and payments should be submitted with the Monthly declaration. I (The rats and basis for the revenue system for other forest products has not yet been determined) Page 116 GUIDELINES FOR TIMBER AUTHORITIES Vl.4 • 0 Sl) (Q CD ... ... ~ scale-sh. WK3 LOG TAG NUMBER ~ " . PAPUA NEW GUINEA FOREST AUTHORITY LOG SCALING RECORD SHEET SPECIES CODE DIAMETER MEASUREMENTS {To Lowest Whole Centimeter) LENGTH DEFECT ALLQWANCES (Lower 0.1 DEFECT DIAMETER LENGTH DI D2 D3 D4 Of A Meter) TYPE . ORIGINAL WHITE COPY: YELLOW DUPLICATE: GREEN DUPLICATE: . . . . . . . . TO PNGFA PROJECT SUPERVISOR (FOR FORWARDING TO REGIONAL OFFICE) TO PNGFA PROJECT SUPERVISOR (FOR PNGFA PROJECT BASED RECORDS) TO LOGGING COMPANY RECORDS 'l . Sheet Number AA 0000 DA TE SCALED: ............................... TIMBER PERMIT/AUTHORITY NUMBER: I I I I I I I l I I Max 9 Cbaractera Left Aligned HARVEST AUTHORISATION NUMBER: .,.. ............... ~•••••••••••u•••••••••••u•-•••••••••••••• LANDOWNER GROUP NAME: .............................................................. LANDOWNER GROUP CODE: I l I I I I I I I Max 8 Characters Left Alf&ned !.:::"..:!..~RA I IUN I, .................................................... ' holder of Log Scaler's Licence No ......... , certify that I have scaled . 1heJogs~enter eclon~tblsJ orm~nrl that the information given is true and correct. SCALER'S SIGNATURE: .............................................................. I I I l> ~ 0 :i: i: m z f C u, :I: m m f .,, 0 :D s: