(Cite as: 48 FR 10395, *10418)

prohibited. Federal lands controlled by DND are dedicated to military matters. Indian Reserves are subject to a wide array of
muses including some wood production. Territorial lands are beyond effective market areas, and parks are reserved for
recreational uses.
In 1981, 0.8 percent of total Canadian timber (hardwoods plus softwoods) harvested from the federal Crown lands was cut in small
quantities from small tracts of federal lands in five provinces and two territories, with most of the volume cut from Indian
Reserves.
In every instance, stumpage was allocated according to "volume agreements," whereby an allowable cut is specified. The two
largest sales were made from DND lands and one park where cutting is allowed. Each of these two sales was made under the
particular stumpage sales procedures of the province in which the timber was located.
All other timber sales on federal lands in the provinces were made under provisions of the Forestry Development and Research
Act, Forestry and Timber Regulations. These regulations apparently provide for two systems of stumpage sales:
(a) Permits: Where dues (total stumpage fee) do not exceed Canadian $2,500; the Minister may establish stumpage rates.
(b) Agreements: Where estimated stumpage dues exceed Canadian $2,500,
--the Minister or Forest Officer shall publicly advertise and invite tenders 
                                       (Cite as: 48 FR 10395, *10418)

for cutting;
--after public advertising, an auction shall be held and bids accepted for cutting.
In addition, the Territorial Lands Act provides for the issuing of permits in the Yukon and Northwest Territories, with flexibility
for setting terms of sale. The Governors may:
--issue permits;
--prescribe terms and conditions for the payment of ground rent;
--prescribe permit fees;
--prescribe dues to be paid for volume of timber cut.
For timberlands within the Indian Reserves, stumpage sales are made under Indian Timber Regulations. These provide for two
types of permits and one form of license. A permit may be issued to cut timber free of dues to an Indian Group or band members.
The second type of cutting permit is granted for selling timber to a member of a band or to a group, with stumpage dues set at
prevailing rates for timber cut on band land.
Under the license procedure, tenders to purchase timber on Indian Reserves are invited by public advertising, or, the Minister
may dispense with advertising and dispose of timber by any other method he may deem advisable. However, stumpage dues are
not to exceed a total of Canadian $2,500. Licenses also provide for the charging of ground rent each year at Canadian $10.00 per
sq. 
                                       (Cite as: 48 FR 10395, *10418)

mile, and a license fee of Canadian $10.00 annually. The licensee is responsible for and pays all costs of fire protection and
suppression on the cutting area under license.

[FR Doc. 83-6316 Filed 3-10-83; 8:45 am]

BILLING CODE 3510-25-M