Order in Council 1030/2017

On the recommendation of the undersigned, the Lieutenant Governor of Ontario, by and with the advice and concurrence of the Executive Council of Ontario, orders that:

Whereas pursuant to subsection 34(1) of the Crown Forest Sustainability Act, 1994, S.O. 1994 c. 25 (the “CFSA”) and subsection 10(1) of O. Reg. 167/95 made under the CFSA, the Minister of Natural Resources and Forestry (the “Minister”) has the authority to amend a sustainable forest licence (“SFL”) granted under section 26 of the CFSA for the purpose of supplying forest resources to a forest resource processing facility;

And Whereas pursuant to subsection 34(3) of the CFSA an amendment of a SFL may be made only with the approval of the Lieutenant Governor in Council, unless the licensee has agreed in writing to the amendment;

And Whereas Dryden Forest Management Company Limited, a corporation formed under the laws of the Province of Ontario (“DFMCL”) is the holder of SFL number 542444 granted under section 26 of the CFSA and approved by Order in Council O.C. 1424/98 dated June 10, 1998 (such SFL as amended from time to time, the “Dryden Forest SFL”) covering the Dryden Forest;

And Whereas pursuant to subsection 34(4) of the CFSA, by letter dated March 1, 2016, the Minister provided written notice to DFMCL< advising DFMCL< of:

• The Minister’s intention to amend the Dryden Forest SFL including to include a wood supply commitment requiring DFMCL< to make available to Domtar Inc. (“Domtar”) a supply of forest resources in accordance with a proposed wood supply agreement (the “Proposed Supply Agreement”), to update the total area and productive land area of the Dryden Forest SFL, to update the map of the Dryden Forest SFL area, to remove three conditions in Appendix “E” requiring DFMCL< to make forest resources available to other entities, and to make other administrative changes (the “Proposed Amendments”),
• The reasons for the Proposed Amendments, and
• The opportunity for DFMCL< to make representations to the Minister within 30 calendar days on the Proposed Amendments to the Dryden Forest SFL;

And Whereas by letter dated March 17, 2016, DFMCL< made representations to the Minister in respect of the Proposed Amendments, and indicated that it did not agree to the amendment to its license to include a wood supply commitment requiring DFMCL< to make available a wood supply to Domtar in accordance with the Proposed Supply Agreement (the “DFMCL Representations”);

And Whereas the Minister has given due consideration to the DFMCL< Representations and all other matters that the Minister is required to consider under subsection 34(2) of the CFSA and has determined that the Proposed Amendments to the Dryden Forest SFL should be made;

And Whereas in accordance with subsection 34(5) of the CFSA, the Proposed Amendments are consistent with the applicable forest management plan;

Now therefore, pursuant to subsection 34(3) of the CFSA the Minister is hereby given approval to amend the Dryden Forest SFL to make the Proposed Amendments.