9. Notwithstanding anything in these Regulations, a forestry officer shall issue a permit without requiring the payment of any fees, to any department or agency of the Government of Canada, for the cutting and removal in its own lands in a forest area of such timber as that department or agency may require for its purposes.

• 10. (1) Subject to subsection (2), timber that is cut under the authority of a permit shall be measured by a mill scale or by a scaler who holds a scaling licence that is valid in the province in which the timber is cut.

• (2) Where the use of a mill scale or a scaler is not appropriate to the forest area or to the species, quantity or product of timber being cut, timber that is cut under the authority of a permit shall be measured by such method as the forestry officer considers appropriate, having regard to that forest area, species, quantity or product.

11. Where a permit holder cuts and removes timber in excess of the amount set out in the permit, the permit holder shall pay to the Receiver General, by cheque or cash, fees calculated by a forestry officer pursuant to section 6 on the amount of that timber that exceeds the permitted amount.

• 12. (1) A forestry officer shall cancel a permit if the permit holder

  • (a) fails to observe any terms or conditions of the permit;

  • (b) fails or refuses to comply with such instructions for the protection of the forest area as have been given by the forestry officer who is supervising the cutting and removal of timber in the forest area; or

  • (c) fails to observe any municipal, provincial and federal law.

• (2) A forestry officer who cancels a permit pursuant to subsection (1) shall notify the permit holder in writing of the cancellation and of the reasons therefor.

• (3) Within 21 days after receipt of a notice of cancellation referred to in subsection (2), the permit holder may in writing appeal the cancellation to the Minister.

• (4) Within 30 days after receipt of an appeal under subsection (3), the Minister shall render a decision on the appeal.

13. A permit may not be assigned or transferred.

14. The Minister may, after making a public call for tenders, enter into an agreement for the cutting and removal of timber in a forest area with

• (a) an individual who has reached the age of majority as set out under the laws of the province in which the agreement is entered into; or

• (b) a corporation, partnership or joint venture.

• 15. (1) Subject to subsection (2), every operator shall provide a security deposit to the Minister with each tender to ensure due performance of the agreement by the operator.

• (2) The amount of the security deposit referred to in subsection (1) shall be not less than 10 per cent of the tender price.

• (3) The Minister shall apply the security deposit provided pursuant to subsection (1) to the tender price of the agreement.