Crown Licenses and Forest Management Agreements

As legislated in the Crown Lands and Forest Act, the Minister of the Department of Natural Resources and Energy Development (DNRED), with the approval of the Lieutenant-Governor in Council, may issue a Crown Timber License to a person who operates a wood processing facility or who undertakes, by agreement with the minister, to construct and operate a wood processing facility in the province and has entered into a Forest Management Agreement with the minister. There are currently 5 licensees who manage the public forest over the 10 licence areas on Crown lands as illustrated below.

A Forest Management Agreement (FMA) is a legal contract that sets out the responsibilities of the minister and the licensee for the sustainable management and use of Crown lands. It includes seven schedules (A to G) that detail all aspects of the FMA agreement:

• Schedule A – the Timber Berth (boundaries of the license area)
• Schedule B – the Industrial Plan (information with respect to the processing facility)
• Schedule C – the Forest Management Plan (25-year plan period, with 80-year growth projection)
• Schedule D – the Operational Plan (1-year period, renewed annually)
• Schedule E – the Forest Management Manual (FMM)
• Schedule F – the Timber Allocations (wood product allocations per license and sub-license)
• Schedule G – Key Performance Indicators (KPI) to measure licensee performance