Order in Council 246/2017

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 clause 9 of 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 resource 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 Ottawa Valley Forest Inc., a corporation formed under the laws of the Province of Ontario (“OVFI”) is the holder of SFL number 542529 granted under section 26 of the CFSA and approved by Order in Council O.C. 711/99 dated April 14, 1999 (such SFL as amended from time to time, the “Ottawa Valley Forest SFL”) covering the Ottawa Valley Forest;

and whereas the Minister desires to enter into a supply agreement (the “Proposed Supply Agreement”) with Lavern Heideman & Sons Limited (“Heideman”) to make available annually to Heideman approximately 28,000 cubic metres of merchantable poplar, red and white pine, and spruce-pine-fir Crown forest resources (the “Target Volume”) a portion of which is located on the Ottawa Valley Forest;

and whereas pursuant to subsection 34(4) of the CFSA, by letter dated June 6, 2014, the Minister provided written notice to OVFI advising of:

• The Minister’s intention to amend the Ottawa Valley Forest SFL to include a wood supply commitment requiring OVFI to make available a wood supply to Heideman in accordance with the Proposed Supply Agreement, to correct the term of the licence to reflect the extension approved previously by O.C.1286/2006 dated June 14, 2006, to remove a condition in Appendix “E” requiring OVFI to make forest resources available to Grant Forest Products Inc., and to make other administrative changes (the “Proposed Amendments”);
• The reasons for the Proposed Amendments, and
• The opportunity for OVFI to make representations to the Minister within 30 calendar days on the Proposed Amendments to the Ottawa Valley Forest SFL;

and whereas by letters dated June 27, 2014 and October 20, 2014, OVFI made representations to the Minister in respect of the Proposed Amendments, and indicated that it did not agree to the amendment to its licence to include a wood supply commitment requiring OVFI to make available a wood supply to Heideman in accordance with the Proposed Supply Agreement but otherwise agreed in writing to the Proposed Amendments (the “OVFI Representations”);

and whereas the Minister has given due consideration to the OVFI Representations and all other considerations that the Minister is required to consider under subsection 34(2) of the CFSA and has determined that the Proposed Amendments to the Ottawa Valley Forest SFL, including to include a condition requiring OVFI to make available a wood supply to Heideman in accordance with the Proposed Supply Agreement, 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 Ottawa Valley Forest SFL to include a condition requiring OVFI to make available a wood supply to Heideman in accordance with the Proposed Supply Agreement.