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Forestry Regulation 1998
Unvalidated References:
Forestry Regulation 1992
Forestry Act 1991
Salaries and Conditions Monitoring Committee Act 1988
Salaries and Conditions Monitoring Committee Act 1988
Public Finances (Management) Act 1995
Public Finances (Management) Act 1995
Public Finances (Management) Act 1995
Public Finances (Management) Act 1995
Environmental Planning Act 1978
Companies Act 1997
Forestry Regulation 1992
This reprint of this Statutory Instrument incorporates all amendments, if any, made before25 November 2006 and in force at 22 January 2004.
.........
Legislative Counsel
Dated 25 November 2006
INDEPENDENT STATE OF PAPUA NEW GUINEA.
No. of 1998.
Forestry Regulation 1998
ARRANGEMENT OF SECTIONS.
1. Interpretation.
2. Dedication of National Forests.
3. Declaring of reserved trees.
4. Power of Authority to enter into contracts.
5. Minister’s direction to the Authority.
6. Grant of leave of absence by the Chairman to a member or alternate member of the Board.
7. Grant of leave of absence by the Minister to the Chairman or Deputy Chairman of the Board.
8. Resignation of office by a Board member or alternate member.
9. Termination of a Board member or alternate member by the Minister.
10. Notice of intention by National Executive Council to a member or alternate member of the Board that it intends to terminate his appointment.
11. Representation to National Executive Council from Chairman or Deputy Chairman or member or alternate member of the Board.
12. Termination by National Executive Council of appointment of Chairman, Deputy Chairman, member or alternate member of the Board of the Forest Authority.
13. Determination of the Board to convene a meeting of the Board.
14. Convening of Board meeting pursuant to a direction by the Chairman or Deputy Chairman of the Board.
15. Request by Minister to Chairman or Deputy Chairman of the Board to convene a meeting of the Board.
16. Request by not less than two members of the Board to the Chairman or Deputy Chairman of the Board to convene a meeting of the Board.
17. Convening of a Board meeting by Chairman or Deputy Chairman pursuant to a request by the Minister.
18. Convening of a Board meeting by Chairman or Deputy Chairman pursuant to a request by two or more members of the Board.
19. Request by Minister to Chairman or Deputy Chairman of the Board to convene a meeting of the Board.
20. Convening a Board meeting by Managing Director pursuant to a request to the Board by the Minister.
[21. Repealed]
22. Delegation of Minister’s powers and functions to the Board.
23. Delegation of Board’s powers and functions to the Managing Director.
24. Letter of Transmittal by the Board to the Minister of an Annual Report of the Board.
25. Letter of Transmittal by the Minister to Provincial Governments of an Annual Report of the Board.
26. Appointment of members and alternate members of a Provincial Forest Management Committee.
27. Appointment of members of Provincial Forest Management Committees.
28. Revocation of appointment and appointment of members of Provincial Forest Management Committee.
29. Revocation of appointment and appointment of alternate members of the Provincial Forest Management Committee.
30. Grant of Leave of Absence by the Chairman of a Provincial Forest Management Committee to a member or alternate member of the Committee.
31. Grant of Leave of Absence by the Chairman of the Forest Board to the Chairman of a Provincial Forest Management Committee.
32. Resignation of office by a member or alternate member of a Provincial Forest Management Committee.
33. Termination of a member or alternate member of a Provincial Forest Management Committee by the Chairman of the Board.
34. Request to Board by a body which has nominated a member or alternate member to a Provincial Forest Management Committee to terminate the appointment.
35. Termination by Board of appointment of a member/alternate member of a Provincial Forest Management Committee.
36. Notice of intention by the Chairman of the Board to a member or alternate member of a Provincial Forest Management Committee that he intends to terminate his appointment.
37. Representation to Chairman of the Board from a member or alternate member of a Provincial Forest Management Committee.
38. Termination by Chairman of the Board of appointment of member or alternate member of a Provincial Forest Management Committee.
39. Determination by the Chairman of a Provincial Forest Management Committee to convene a meeting of the Committee.
40. Request to the Chairman of a Provincial Forest Management Committee by the Board or Managing Director of the National Forest Service to convene a meeting of the Committee.
41. Request to the Chairman of a Provincial Forest Management Committee by not less than two members to convene a meeting of the Committee.
42. Convening of a Provincial Forest Management Committee by the Chairman of the Provincial Forest Management Committee pursuant to a request by the Board or Managing Director of the National Forest Service or of not less than two members of the Provincial Forest Management Committee.
43. Provincial Forest Management Committee Notice to the owners of a Forest Resource.
44. Delegation of Provincial Forest Management Committee’s functions to the National Forest Service.
45. Letter of transmittal of an Annual Report of a Provincial Forest Management Committee to the Chairman of the Board.
46. Annual Report of the Provincial Forest Management Committee.
47. Letter of transmittal of an Annual Report of a Provincial Forest Management Committee by the Chairman of the Board to the Minister and the Chairman of the Committee in the Provincial Executive Council Responsible for Forestry Functions in a Provincial Government.
48. Establishment of an Advisory Committee of the Board.
49. Appointment to an Advisory Committee of the Board.
50. Board’s advice to the Minister on other functions of the Managing Director.
51. Determination by the Minister for Forests on other functions to be carried out by the Managing Director.
52. Delegation of powers by Managing Director.
53. National Forest Service.
54. Minister’s consultation with Board on proposed appointment of consultant.
55. Board’s and Managing Director’s advice to Minister on proposal by Minister to appoint a consultant.
56. Appointment of consultant by the Minister.
57. Board recommendation to Minister to appoint Forest Officers.
58. Instrument of appointment of Forest Officers.
59. Board recommendation to Minister to appoint Forest Inspectors.
60. Instrument of appointment of Forest Inspectors.
61. Minister’s consultation with the Board on proposed establishment of a State Marketing Agency.
62. Board’s advice to Minister for Forest on proposal by Minister to establish a State Marketing Agency.
63. Determination by the Board for the management staffing and control of the State Marketing Agency established as a Division of the National Forest Service by the Minister.
64. Establishment of a State Marketing Agency as a Division of the National Forest Service by the Minister or otherwise.
65. Notice to Minister for Finance of Board’s intention to execute a Project Agreement and seeking the Minister for Finance’s approval.
66. Minister for Finance’s approval for Board to execute a Project Agreement.
67. Notice to Minister for Finance of Board’s intention to execute a contract and seeking the Minister for Finance’s approval.
68. Minister for Finance’s approval for Board to execute a contract.
69. National Forest Inventory and Annual Statement by Board of Allowable Cut Volumes.
70. Letter of transmittal of a National Forest Plan by the Chairman of the Board to the Minister.
71. Submission of Provincial Forest Plan to Board.
72. Referral by Board of Provincial Forest Plan to Provincial Government.
73. Re-submission of a Provincial Forest Plan to Board.
74. Board’s notification to Chairman of the Committee of the Provincial Executive Council responsible for forestry function relating to a Provincial Forest Plan.
75. Letter of transmittal of a Provincial Forest Plan by the Board to the Minister.
76. Declaration of restricted area by Managing Director.
77. Burning permit.
78. Application to Managing Director for a burning permit.
79. Forest Management Agreement.
80. Approval of a Forest Management Agreement by Minister.
81. Board’s request to the Minister to approve a Forest Management Agreement.
82. Certificate from Provincial Forest Management Committee on Forest Management Agreement.
83. Board consultation with customary owners, etc.
84. Board direction to the National Forest Service or a contractor to carry out development options studies over a proposed project area.
85. Board’s request to Provincial Forest Management Committee to give directions to the Board on the carrying out of a Development Options Study.
86. Directions to the Board from Provincial Forest Management Committee on Development Options Study.
87. Provision of Development Options Study to Minister and Provincial Forest Management Committee.
88. Submission to Board of draft project guidelines by Provincial Forest Management Committee.
89. Boards issuance of final project guidelines for Forest Development Project.
90. Expressions of interest in a Forest Development Project and Project Proposal.
91. Invitation by the Board to the holder of a timber permit to lodge an expression of interest and make a project proposal in respect of an extension into a Forest Development Project Area.
[92. Repealed]
93. Grant or refusal of permission to carry out feasibility studies, etc.
94. Application to Managing Director to carry out feasibility studies, etc.
95. Project proposals.
96. Reference of a project proposal to a Provincial Forest Management Committee.
97. Provincial Forest Management Committee invitation to proponent for further information, etc.
98. Report and recommendation of Provincial Forest Management Committee on project proposal to the Board.
99. Boards Consultation with Minister on report and recommendations of a Provincial Forest Management Committee.
100. Minister views on Provincial Forest Management Committee’s report and recommendations and on the Board’s views.
101. Board Directions to Provincial Forest Management Committee on Project Agreement.
102. Board Recommendation to the Provincial Forest Management Committee on the parameters within which negotiations should be conducted and recommendations on the composition of a negotiating committee.
103. Provincial Forest Management committees confirmation to the Board on the parameters within which negotiations are to be conducted and of the composition of a negotiating committee.
104. Confirmation by the Board to the Provincial Forest Management Committee of the parameters within which negotiations are to be conducted and on the composition of a negotiating committee.
105. Advice to Board by Provincial Forest Management Committee that negotiations have failed in respect to a final draft of a project agreement.
106. Submission of final draft of project agreement by a Provincial Forest Management Committee to Board.
107. Board Recommendation to Minister to grant a timber permit.
108. Board referral to Provincial Forest Management Committee of draft project agreement.
109. Submission to Board o ffurther final draft project agreement by Provincial Forest Management Committee.
110. Minister’s invitation to a person to make an application for a timber permit.
111. Minister’s non-acceptance of Board’s recommendation to grant a timber permit and referral to Board.
112. Board’s final recommendation to the Minister to grant a timber permit.
113. Minister referral of Board recommendation for a grant of a timber permit to National Executive Council.
114. Direction of National Executive Council to the Minister to accept the recommendation of the Board of the Forest Authority to grant a timber permit.
115. Direction of National Executive Council to the Minister to reject the recommendation of the Board of the Forest Authority to grant a timber permit.
116. Minister’s advice to the Board of National Executive Council’s direction to the Minister to accept the recommendation of the Board of the Forest Authority to grant a timber permit.
117. Minister’s advice to the Board of National Executive Council’s direction to the Minister to reject the recommendation of the Board of the Forest Authority to grant a timber permit.
118. Timber permit.
119. Application for a timber permit.
120. Return of an application for a timber permit.
121. Timber permit extension or renewal of term.
122. Return by Managing Director of application for extension or renewal of the term a timber permit.
123. Application for extension or renewal of term of timber permit.
124. Board request to Provincial Forest Management Committee for a report on timber permit extension or renewal of term.
125. Report to the Board by a Provincial Forest Management Committee on an application for an extension or renewal of the term of a timber permit extension.
126. Rejection by Board of application for extension or renewal of term of a timber permit.
127. Recommendation by Board to the Minister for timber permit extension, etc.
128. Board notice to a holder of a timber permit that it requires an amendment to a timber permit.
129. Managing Director’s notice of Minister’s approval of transfer of a timber permit.
130. Managing Director’s notice of Minister’s approval of surrender of a timber permit.
131. Managing Director’s notice of Minister’s approval of amendment of a timber permit.
132. Conditions of a transfer surrender or amendment of a timber permit.
133. Application to transfer etc. a timber permit.
134. Return by Managing Director of an application to transfer amend or surrender a timber permit.
135. Board Recommendation to Minister to transfer, etc., timber permit.
136. Approval of Minister to transfer, etc., timber permit.
137. Ministers referral of application to transfer, etc., a timber permit for Board’s Recommendation.
138. Board’s final recommendation to Minister on transfer, etc. , a timber permit.
139. Approval of Minister to transfer, etc, timber permit after receiving Board’s final recommendation.
140. Minister’s referral of an application for a transfer amendment or surrender of a timber permit to the National Executive Council.
141. Directions of National Executive Council to the Minister to accept the recommendation of the Board of the Forest Authority for a transfer amendment or surrender of a timber permit.
142. Directions of National Executive Council to the Minister to reject the recommendation of the Board of the Forest Authority for a transfer amendment or surrender of a timber permit.
143. Minister’s Advice to the Board and the holder of a timber permit of National Executive Council’s directions to the Minister to accept the recommendation of the Board of the Forest Authority for a transfer amendment or surrender of a timber permit.
144. Minister’s Advice to the Board and the holder of a timber permit of National Executive Council’s directions to the Minister to reject the recommendation of the Board of the Forest Authority for a transfer amendment or surrender of a timber permit.
145. Suspension of rights of a Timber Permit, etc.
146. Notice of intention to suspend rights.
147. Request of holder of Timber Permit, etc., to be heard on suspension of rights.
148. Application of holder of timber permit, etc, to re-instate rights suspended.
149. Recission of notice of suspension by the Managing Director.
150. Re-instatement by Managing Director of rights suspended.
151. Cancellation of timber permit by Minister.
152. Notice of intention to cancel timber permit.
153. Representations to Managing Director from holder of timber permit.
154. Request of holder of timber permit to be heard on proposed cancellation of a timber permit.
155. Managing Director’s report to the Board of hearing on proposed cancellation of a timber permit.
156. Managing Director’s report to the Board when there has been no representations made or request to be heard.
157. Recommendations by Board to Minister on proposed cancellation of timber permit.
158. Advice to the Minister to cancel a timber permit.
159. Timber authority for domestic processing, etc.
160. Application for timber authority for domestic processing, etc.
161. Timber authority for roadline clearance, etc.
162. Application for timber authority for roadline clearance, etc.
163. Timber authority for agricultural or other land use.
164. Application for timber authority for agricultural or other land use.
165. Timber authority to harvest other forest products.
166. Application for timber authority to harvest other forest products.
167. Timber authority to harvest plantation material on Government, State leasehold, private leasehold or private freehold lands.
168. Application for timber authority to harvest plantation material on Government, State leasehold, private leasehold or private freehold land.
169. Managing Director’s notice to applicant for timber authority.
170. Managing Director’s referral of timber authority application to Provincial Forest Management Committee.
171. Rejection by a Provincial Forest Management Committee of an application for a timber authority.
172. Recommendations of Provincial Forest Management Committee on timber authority applications.
173. Notice of Intention to Board to grant a timber authority.
174. Consent or Non-consent of Board to the grant of a timber authority.
175. Cancellation of a timber authority.
176. Notice of Intention to cancel a timber authority.
177. Licence.
178. Return by Managing Director of an application for a Licence.
179. Application for a Licence.
180. Return of application for a licence.
181. Referral to Board for consideration of application for a licence.
182. Board Determination to seek assistance from the National Forest Service or any relevant Department in evaluating an application for the issue of a licence.
183. Rejection by Board of an application for a licence.
184. Cancellation of licence.
185. Notice of intention to cancel licence.
186. Representations to Managing Director from holder of a licence.
187. Request by holder of a licence to be heard on proposed cancellation of a licence.
188. Report of hearing to Board on proposed cancellation of a licence.
189. Recommendations by Board to Minister on proposed cancellation of a licence.
190. Managing Director’s Report to Board where there has been no representation made or hearing requested in respect of a proposed cancellation of a licence.
191. Board’s advice to Minister to cancel a licence.
192. Extension of term of licence.
193. Application for an extension of a licence.
194. Return by Managing Director of an application for extension of Term of a licence.
195. Rejection of an application by the Board for an extension of term of a licence.
196. Performance Bond.
197. Procedure for drawing on a Performance Bond.
198. Prescribed scale of deductions for breaches of conditions of timber permits, etc.
198A. Management and contral of performance bonds.
199. Project statement.
200. Five year working plans.
201. Annual logging plan.
202. Failure to lodge satisfactory statements and plans.
203. Preservation requirements.
204. Log identification scaling methods and reporting and royalty self-assessment.
205. Licensing of Log Scalers.
206. Notice of intention to cancel scaler’s licence.
207. Cancellation of log scaler’s licence.
208. Registration of a forest industry participant.
209. Application for registration as a forest industry participant.
210. Registration of a forest industry consultant.
211. Application for registration as a consultant.
212. Return by the Managing Director of an application for registration as a forest industry participant or consultant.
213. Notification of change of particulars.
214. Notification of intention to make referrals to the Board for cancellation of registration.
215. Referrals to the Board for consideration of cancellation of registration.
216. Notice of Board Directions.
217. Appeal to Minister on registration, etc.
218. Minister’s decision on appeal.
219. Exemption.
220. State purchase option.
221. Transfer pricing.
222. Variation by the Minister of royalty payable under a timber permit.
223. Levies.
224. Lawful direction.
225. Notice of seizure.
226. Act of seizure.
227. Notice of forfeiture.
228. Declaration banning export etc.
229. Registration of brand.
230. Application to register in the Authority a brand.
231. Safety.
232. Access rights.
233. Ship Loading Authorization and suspension of Ship Loading Authorization.
234. Log exports.
235. Role and recognition of bodies representing customary owners.
236. Cancellation of recognition.
237. Returns and records.
238. Destruction of forest produce.
239. Registration of timber processing plant.
240. Application for registration of timber processing plant.
241. Logging and roading standards and practices.
242. Board notice to vary terms or conditions of Registration, Permit, Licence, Timber Rights Purchase Agreement, Authority or Agreement.
243. Offences generally.
244. Fees.
245. Maps, etc.
246. Forms.
247. Tenders.
248. Service of notice etc.
249. Public Register.
[250. Repealed]
251. Disasters.
252. Repeal.
253. Transitional.
254. Application for an Authority to carry out a large scale agricultural or other land use development project where the amount of proposed clearance of natural forest is greater than 50 hectares in total.
255. Return of an application for a large scale conversion of forest to agriculture or other land use.
256. Board’s consultation with a Government body relating to an application to carry out a large scale agriculture or other land use development.
257. Notice of a Public Hearing in respect to an application for an Authority to carry out a large scale agriculture or other land use development.
258. Instrument of appointment of Chairman of a Public Hearing.
259. Reference of an application for a proposed large scale agriculture or other land use project and summary of Public Hearing to Provincial Forest Management Committee.
260. Provincial Forest Management Committee request for assistance of National Forest Service or other relevant Department.
261. Provincial Forest Management Committee report and recommendation to the Board to approve/reject an application for an authority to carry out an agricultural or other land use project.
262. Board’s advice to applicant of rejection of application for an authority to carry out a large scale agriculture or other land use project.
263. Board’s recommendation to Minister to recommend to the National Executive Council to endorse an application for a large scale conversion of forest to agriculture or other land use.
264. Rejection by Board of an application for a large scale agriculture or other land use project.
265. Minister for Forests referral of Board recommendation for approval of an application for an authority to carry out a large scale agriculture or other land use development to National Executive Council.
266. Direction of National Executive Council to the Minister for Forests to endorse/reject an application for an authority to carry out a large scale agriculture or other land use project.
267. Minister’s advice to the Board of the National Executive Councils direction to the Minister for Forests to endorse/reject the recommendation of the Board of the Forest Authority to approve an application for an authority to carry out a large scale agriculture or other land use project.
268. Board’s advice to applicant and Provincial Forest Management Committee of decision of National Executive Council directing the Minister to reject an application for an authority to carry out a large scale agriculture or other land use development.
269. Authority to carry out a large scale agriculture or other land use development project.
270. Forest clearing authority.
271. Application for authority to carry out a large scale roadline development project over an existing forested area where the proposed road will be greater than 12.5 kilometres in length.
272. Return of an application for a large scale conversion of forest to road.
273. Board’s consultation with a Government body relating to an application to carry out a large scale road development project.
274. Notice of a public hearing in respect to an application for an authority to carry out a large scale road development project.
275. Instrument of appointment of Chairman of a public hearing.
276. Reference of an application for a proposed large scale road development project and summary of Public Hearing to Provincial Forest Management Committee.
277. Provincial Forest Management Committee request for assistance of National Forest Service or other relevant Department.
278. Provincial Forest Management Committee report and recommendation to the Board to approve/reject an application for an authority to carry out a large scale road development project.
279. Board’s advice to applicant of rejection of application for an authority to carry out a large scale road development project.
280. Board’s recommendation to Minister to recommend to the National Executive Council to endorse an application for a large scale conversion of forest to road.
281. Rejection by Board of an application for a large scale road development project.
282. Minister for Forests referral of Board recommendation for approval of an application for an authority to carry out a large scale road development project to National Executive Council.
283. Direction of National Executive Council to the Minister for Forests to endorse or reject an application for an authority to carry out a large scale road development project.
284. Minister’s advice to the Board of National Executive Councils direction to the Minister for Forests to endorse or reject the recommendation of the Board of the Forest Authority to approve an application for an authority to carry out a large scale road development project.
285. Board’s advice to applicant and Provincial Forest Management Committee of decision of National Executive Council directing the Minister to reject an application for an authority to carry out a large scale road development project.
286. Authority to carry out a large scale road development project.
287. Forest clearing authority.
288. Verification of ownership and consent of land owners.
289. Sales and purchase agreement.
290. Application to inspect and make copies of a summary of matters associated with an application.
Forestry Regulation 1998
MADE by the Head of State, acting with, and in accordance with, the advice of the National Executive Council under the Forestry Act 1991, to be deemed to have come into operation on 24 January 1996.
Dated 200 .
1. INTERPRETATION.
“forest industry activities” means any commercial activities within Papua New Guinea directly connected with–
(a) harvesting or processing timber or rattan; or
(b) buying unprocessed timber or rattan for processing or export; or
(c) selling or, on behalf of another person or other persons, arranging or procuring the sale or purchase of, timber or rattan (whether unprocessed or processed but not including manufactured items made from timber or rattan materials), by a person where the timber or rattan harvest, processed, purchased, sold or arranged or procured to be purchased or sold, by that person in a calendar year exceeds–
(i) 500m3 in volume; or
(ii) in the case of sandalwood or rattan–K20,000 in market value;
“repealed Acts” means the Acts referred to in Section 136 of the Act.
2. DEDICATION OF NATIONAL FORESTS.
3. DECLARING OF RESERVED TREES.
(2) A person, who wilfully destroys or damages any tree or member of any species or class of trees declared to be reserved trees under Section 4 of the Act, is guilty of an offence.
Penalty: A fine not exceeding K10,000.00.
4. POWER OF AUTHORITY TO ENTER INTO CONTRACTS.
(a) in the case of a Forest Management Agreement, project agreement or any agreement which, if made between private persons, would by law be required to be in writing and under seal–by affixing the seal in accordance with Section 5(3) of the Act;
(b) any agreement which if made between private persons, would by law be required to be in writing signed by the parties–in writing signed by the Chairman and another member of the Board pursuant to a resolution of the Board or by any two officers of the National Forest Service authorized by the Board; and
(c) any agreement which, if made between private persons, would by law be valid although nor reduced into writing–orally by any member of the Board pursuant to a resolution of the Board or by any officer of the National Forest Service authorized by the Board to do so.
5. MINISTER’S DIRECTION TO THE AUTHORITY.
6. GRANT OF LE****E OF ABSENCE BY THE CHAIRMAN TO A MEMBER OR ALTERNATE MEMBER OF THE BOARD.
7. GRANT OF LE****E OF ABSENCE BY THE MINISTER TO THE CHAIRMAN OR DEPUTY CHAIRMAN OF THE BOARD.
8. RESIGNATION OF OFFICE BY A BOARD MEMBER OR ALTERNATE MEMBER.
9. TERMINATION OF A BOARD MEMBER OR ALTERNATE MEMBER BY THE MINISTER.
10. NOTICE OF INTENTION BY NATIONAL EXECUTIVE COUNCIL TO A MEMBER OR ALTERNATE MEMBER OF THE BOARD THAT IT INTENDS TO TERMINATE HIS APPOINTMENT.
11. REPRESENTATION TO NATIONAL EXECUTIVE COUNCIL FROM CHAIRMAN OR DEPUTY CHAIRMAN OR MEMBER OR ALTERNATE MEMBER OF THE BOARD.
12. TERMINATION BY NATIONAL EXECUTIVE COUNCIL OF APPOINTMENT OF CHAIRMAN, DEPUTY CHAIRMAN, MEMBER OR ALTERNATE MEMBER OF THE BOARD OF THE FOREST AUTHORITY.
13. DETERMINATION OF THE BOARD TO CONVENE A MEETING OF THE BOARD.
14. CONVENING OF BOARD MEETING PURSUANT TO A DIRECTION BY THE CHAIRMAN OR DEPUTY CHAIRMAN OF THE BOARD.
15. REQUEST BY MINISTER TO CHAIRMAN OR DEPUTY CHAIRMAN OF THE BOARD TO CONVENE A MEETING OF THE BOARD.
16. REQUEST BY NOT LESS THAN TWO MEMBERS OF THE BOARD TO THE CHAIRMAN OR DEPUTY CHAIRMAN OF THE BOARD TO CONVENE A MEETING OF THE BOARD.
17. CONVENING OF A BOARD MEETING BY CHAIRMAN OR DEPUTY CHAIRMAN PURSUANT TO A REQUEST BY THE MINISTER.
18. CONVENING OF A BOARD MEETING BY CHAIRMAN OR DEPUTY CHAIRMAN PURSUANT TO A REQUEST BY TWO OR MORE MEMBERS OF THE BOARD.
19. REQUEST BY MINISTER TO CHAIRMAN OR DEPUTY CHAIRMAN OF THE BOARD TO CONVENE A MEETING OF THE BOARD.
20. CONVENING A BOARD MEETING BY MANAGING DIRECTOR PURSUANT TO A REQUEST TO THE BOARD BY THE MINISTER.
21[1]. [REPEALED.]
22. DELEGATION OF MINISTER’S POWERS AND FUNCTIONS TO THE BOARD.
23. DELEGATION OF BOARD’S POWERS AND FUNCTIONS TO THE MANAGING DIRECTOR.
24. LETTER OF TRANSMITTAL BY THE BOARD TO THE MINISTER OF AN ANNUAL REPORT OF THE BOARD.
25. LETTER OF TRANSMITTAL BY THE MINISTER TO PROVINCIAL GOVERNMENTS OF AN ANNUAL REPORT OF THE BOARD.
26. APPOINTMENT OF MEMBERS AND ALTERNATE MEMBERS OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE.
27. APPOINTMENT OF MEMBERS OF PROVINCIAL FOREST MANAGEMENT COMMITTEES.
28. REVOCATION OF APPOINTMENT AND APPOINTMENT OF MEMBERS OF PROVINCIAL FOREST MANAGEMENT COMMITTEE.
29. REVOCATION OF APPOINTMENT AND APPOINTMENT OF ALTERNATE MEMBERS OF THE PROVINCIAL FOREST MANAGEMENT COMMITTEE.
30. GRANT OF LE****E OF ABSENCE BY THE CHAIRMAN OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE TO A MEMBER OR ALTERNATE MEMBER OF THE COMMITTEE.
31. GRANT OF LE****E OF ABSENCE BY THE CHAIRMAN OF THE FOREST BOARD TO THE CHAIRMAN OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE.
32. RESIGNATION OF OFFICE BY A MEMBER OR ALTERNATE MEMBER OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE.
33. TERMINATION OF A MEMBER OR ALTERNATE MEMBER OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE BY THE CHAIRMAN OF THE BOARD.
34. REQUEST TO BOARD BY A BODY WHICH HAS NOMINATED A MEMBER OR ALTERNATE MEMBER TO A PROVINCIAL FOREST MANAGEMENT COMMITTEE TO TERMINATE THE APPOINTMENT.
35. TERMINATION BY BOARD OF APPOINTMENT OF A MEMBER/ALTERNATE MEMBER OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE.
36. NOTICE OF INTENTION BY THE CHAIRMAN OF THE BOARD TO A MEMBER OR ALTERNATE MEMBER OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE THAT HE INTENDS TO TERMINATE HIS APPOINTMENT.
37. REPRESENTATION TO CHAIRMAN OF THE BOARD FROM A MEMBER OR ALTERNATE MEMBER OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE.
38. TERMINATION BY CHAIRMAN OF THE BOARD OF APPOINTMENT OF MEMBER OR ALTERNATE MEMBER OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE.
39. DETERMINATION BY THE CHAIRMAN OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE TO CONVENE A MEETING OF THE COMMITTEE.
40. REQUEST TO THE CHAIRMAN OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE BY THE BOARD OR MANAGING DIRECTOR OF THE NATIONAL FOREST SERVICE TO CONVENE A MEETING OF THE COMMITTEE.
41. REQUEST TO THE CHAIRMAN OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE BY NOT LESS THAN TWO MEMBERS TO CONVENE A MEETING OF THE COMMITTEE.
42. CONVENING OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE BY THE CHAIRMAN OF THE PROVINCIAL FOREST MANAGEMENT COMMITTEE PURSUANT TO A REQUEST BY THE BOARD OR MANAGING DIRECTOR OF THE NATIONAL FOREST SERVICE OR OF NOT LESS THAN TWO MEMBERS OF THE PROVINCIAL FOREST MANAGEMENT COMMITTEE.
43. PROVINCIAL FOREST MANAGEMENT COMMITTEE NOTICE TO THE OWNERS OF A FOREST RESOURCE.
44. DELEGATION OF PROVINCIAL FOREST MANAGEMENT COMMITTEE’S FUNCTIONS TO THE NATIONAL FOREST SERVICE.
45. LETTER OF TRANSMITTAL OF AN ANNUAL REPORT OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE TO THE CHAIRMAN OF THE BOARD.
46. ANNUAL REPORT OF THE PROVINCIAL FOREST MANAGEMENT COMMITTEE.
47. LETTER OF TRANSMITTAL OF AN ANNUAL REPORT OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE BY THE CHAIRMAN OF THE BOARD TO THE MINISTER AND THE CHAIRMAN OF THE COMMITTEE IN THE PROVINCIAL EXECUTIVE COUNCIL RESPONSIBLE FOR FORESTRY FUNCTIONS IN A PROVINCIAL GOVERNMENT.
48. ESTABLISHMENT OF AN ADVISORY COMMITTEE OF THE BOARD.
49. APPOINTMENT TO AN ADVISORY COMMITTEE OF THE BOARD.
50. BOARD’S ADVICE TO THE MINISTER ON OTHER FUNCTIONS OF THE MANAGING DIRECTOR.
51. DETERMINATION BY THE MINISTER FOR FORESTS ON OTHER FUNCTIONS TO BE CARRIED OUT BY THE MANAGING DIRECTOR.
52. DELEGATION OF POWERS BY MANAGING DIRECTOR.
53. NATIONAL FOREST SERVICE.
(a) may provide for the employment of certain officers under a contract of employment for a specified term; and
(b) shall otherwise be as determined by the Board.
(2) Subject to the Salaries and Conditions Monitoring Committee Act 1988, the provision for a superannuation or other retirement benefits scheme to provide benefits for the staff, the provision for a home ownership scheme for citizen officers and disciplinary procedures including the creation and abolition of offices and the promotion of officers shall be as determined by the Board.
54. MINISTER’S CONSULTATION WITH BOARD ON PROPOSED APPOINTMENT OF CONSULTANT.
55. BOARD’S AND MANAGING DIRECTOR’S ADVICE TO MINISTER ON PROPOSAL BY MINISTER TO APPOINT A CONSULTANT.
56. APPOINTMENT OF CONSULTANT BY THE MINISTER.
57. BOARD RECOMMENDATION TO MINISTER TO APPOINT FOREST OFFICERS.
58. INSTRUMENT OF APPOINTMENT OF FOREST OFFICERS.
59. BOARD RECOMMENDATION TO MINISTER TO APPOINT FOREST INSPECTORS.
60. INSTRUMENT OF APPOINTMENT OF FOREST INSPECTORS.
61. MINISTER’S CONSULTATION WITH THE BOARD ON PROPOSED ESTABLISHMENT OF A STATE MARKETING AGENCY.
62. BOARD’S ADVICE TO MINISTER FOR FOREST ON PROPOSAL BY MINISTER TO ESTABLISH A STATE MARKETING AGENCY.
63. DETERMINATION BY THE BOARD FOR THE MANAGEMENT STAFFING AND CONTROL OF THE STATE MARKETING AGENCY ESTABLISHED AS A DIVISION OF THE NATIONAL FOREST SERVICE BY THE MINISTER.
64. ESTABLISHMENT OF A STATE MARKETING AGENCY AS A DIVISION OF THE NATIONAL FOREST SERVICE BY THE MINISTER OR OTHERWISE.
65. NOTICE TO MINISTER FOR FINANCE OF BOARD’S INTENTION TO EXECUTE A PROJECT AGREEMENT AND SEEKING THE MINISTER FOR FINANCE’S APPROVAL.
66. MINISTER FOR FINANCE’S APPROVAL FOR BOARD TO EXECUTE A PROJECT AGREEMENT.
67. NOTICE TO MINISTER FOR FINANCE OF BOARD’S INTENTION TO EXECUTE A CONTRACT AND SEEKING THE MINISTER FOR FINANCE’S APPROVAL.
68. MINISTER FOR FINANCE’S APPROVAL FOR BOARD TO EXECUTE A CONTRACT.
69. NATIONAL FOREST INVENTORY AND ANNUAL STATEMENT BY BOARD OF ALLOWABLE CUT VOLUMES.
(a) a precise description of those parts of the national forest estate which are deemed suitable for long term sustainable management by location, type, area and estimated merchantable volume;
(b) a description of the national forest estate presenting broad details of all forests by location, type and area;
(c) such other particulars as the Board may specify from time to time.
(2) The content of the National Forest Inventory shall be revised from time to time to take account of known changes in the nature and size of the national forest resource, data obtained from successive or more detailed forest resource assessments and knowledge obtained through forest research.
(3) A document purporting to be the National Forest Inventory or a revision thereof shall be of no force and effect unless it has been certified as such by the Chairman pursuant to a resolution of the Board to the effect that the Board is satisfied that the information contained therein is the best available at the time and is suitable for inclusion in the Inventory.
(4) A certificate certifying a National Forest Inventory under Section 47(2)(b) of the Act shall be in Form 66 of Schedule 1.
(5) Within 30 days of certification under Subsection (4), the Authority shall make and offer for sale to the public, at a price determined by the Managing Director, printed copies of the National Forestry Inventory or a revision thereof, and the Authority may make and offer for sale to the public consolidated copies of the Inventory and revisions thereof on such occasions as it sees fit.
(6) An Annual Statement by the Board of allowable cut volumes under Section 47(2)(c)(iii) of the Act shall be in Form 67 of Schedule 1.
70. LETTER OF TRANSMITTAL OF A NATIONAL FOREST PLAN BY THE CHAIRMAN OF THE BOARD TO THE MINISTER.
71. SUBMISSION OF PROVINCIAL FOREST PLAN TO BOARD.
72. REFERRAL BY BOARD OF PROVINCIAL FOREST PLAN TO PROVINCIAL GOVERNMENT.
73. RE-SUBMISSION OF A PROVINCIAL FOREST PLAN TO BOARD.
74. BOARD’S NOTIFICATION TO CHAIRMAN OF THE COMMITTEE OF THE PROVINCIAL EXECUTIVE COUNCIL RESPONSIBLE FOR FORESTRY FUNCTION RELATING TO A PROVINCIAL FOREST PLAN.
75. LETTER OF TRANSMITTAL OF A PROVINCIAL FOREST PLAN BY THE BOARD TO THE MINISTER.
76. DECLARATION OF RESTRICTED AREA BY MANAGING DIRECTOR.
77. BURNING PERMIT.
78. APPLICATION TO MANAGING DIRECTOR FOR A BURNING PERMIT.
(a) be in Form 76 of Schedule 1; and
(b) contain the information and particulars specified in the form or as are required in any particular case by the Managing Director.
79. FOREST MANAGEMENT AGREEMENT.
80. APPROVAL OF A FOREST MANAGEMENT AGREEMENT BY MINISTER.
81. BOARD’S REQUEST TO THE MINISTER TO APPROVE A FOREST MANAGEMENT AGREEMENT.
82. CERTIFICATE FROM PROVINCIAL FOREST MANAGEMENT COMMITTEE ON FOREST MANAGEMENT AGREEMENT.
83. BOARD CONSULTATION WITH CUSTOMARY OWNERS, ETC.
84. BOARD DIRECTION TO THE NATIONAL FOREST SERVICE OR A CONTRACTOR TO CARRY OUT DEVELOPMENT OPTIONS STUDIES OVER A PROPOSED PROJECT AREA.
85. BOARD’S REQUEST TO PROVINCIAL FOREST MANAGEMENT COMMITTEE TO GIVE DIRECTIONS TO THE BOARD ON THE CARRYING OUT OF A DEVELOPMENT OPTIONS STUDY.
86. DIRECTIONS TO THE BOARD FROM PROVINCIAL FOREST MANAGEMENT COMMITTEE ON DEVELOPMENT OPTIONS STUDY.
87. PROVISION OF DEVELOPMENT OPTIONS STUDY TO MINISTER AND PROVINCIAL FOREST MANAGEMENT COMMITTEE.
(2) Any person may on payment of the prescribed fee in Schedule 3, make application in Form 232 of Schedule 1 to the National Forest Service for a copy of a development option study.
88. SUBMISSION TO BOARD OF DRAFT PROJECT GUIDELINES BY PROVINCIAL FOREST MANAGEMENT COMMITTEE.
89. BOARDS ISSUANCE OF FINAL PROJECT GUIDELINES FOR FOREST DEVELOPMENT PROJECT.
(2) Any person may on payment of the prescribed fee in Schedule 3, make application in Form 232 of Schedule 1 for a copy of final Project Guidelines for a Forest Development Project.
90. EXPRESSIONS OF INTEREST IN A FOREST DEVELOPMENT PROJECT AND PROJECT PROPOSAL.
(2) Where the Board has determined under Section 64(3) of the Act to consider Expressions of Interest in a Forest Development Project and Project Proposals without advertisement for open tender then such expressions of interest and project proposals shall be lodged together directly with the Managing Director and shall be in Form 92 of Schedule 1.
(3) The fee payable on lodging an expression of interest and accompanied project proposal under Section 66 of the Act shall be as specified in Schedule 3.
91. INVITATION BY THE BOARD TO THE HOLDER OF A TIMBER PERMIT TO LODGE AN EXPRESSION OF INTEREST AND MAKE A PROJECT PROPOSAL IN RESPECT OF AN EXTENSION INTO A FOREST DEVELOPMENT PROJECT AREA.
92[5]. [REPEALED.]
93. GRANT OR REFUSAL OF PERMISSION TO CARRY OUT FEASIBILITY STUDIES, ETC.
94. APPLICATION TO MANAGING DIRECTOR TO CARRY OUT FEASIBILITY STUDIES, ETC.
(2) The fee payable on making an application under Section 65 of the Act shall be as specified in Schedule 3.
95. PROJECT PROPOSALS.
(a) a description of the proposed use of the forest resource;
(b) the proposed forest harvesting methods;
(c) details of employment potential in relation to the project;
(d) detailed financial analysis in relation to the project including projected revenue flows, cost flows, particulars of debt servicing and rates of return;
(e) an undertaking and guarantee that the proponents will comply with contemporary environmental control standards and the Authority’s Manuals titled “Planning, Monitoring and Control Procedures for Natural Forest Logging Operations under a Timber Permit”, “P.N.G. Logging Code of Practice” and “Procedures for Exporting Logs” (or any revisions thereof);
(f) detailed description and independent valuation of the proponents proposals for landowner benefits;
(g) details of proposed measures to implement the principles of sustainable forest management which shall include but are not limited to all of the following:–
(i) resource replacement;
(ii) selective logging;
(iii) enrichment planting;
(iv) harvesting practices;
(v) reforestation;
(h) a copy of certificate of registration as a forest industry participant;
(i) supporting documentation from the proponents Bankers, financiers or others confirming the ability of the proponent to undertake the proposed project;
(j) the name, postal address, address for service in Papua New Guinea of legal process, telephone number and facsimile number of the proponent;
(k) where the proponent is a corporate person–
(i) the shareholding structure; and
(ii) the name, office or position held in the company, nationality, place of residence, details of formal qualifications, relevant work experience of, and other current or prior offices held by, each director, office-bearer or senior management executive; and
(iii) the proponents experience in proposals of a similar nature;
(l) the name, address, telephone and facsimile number of the applicant’s bankers;
(m) any permit, licence or timber authority applied for or held by the Proponent;
(n) where the proponent is a corporate person–
(i) a copy of the certificate of incorporation; and
(ii) the shareholding structure of any incorporated shareholders;
(o) audited financial statements for the year ending 31 December previously; and
96. REFERENCE OF A PROJECT PROPOSAL TO A PROVINCIAL FOREST MANAGEMENT COMMITTEE.
97. PROVINCIAL FOREST MANAGEMENT COMMITTEE INVITATION TO PROPONENT FOR FURTHER INFORMATION, ETC.
98. REPORT AND RECOMMENDATION OF PROVINCIAL FOREST MANAGEMENT COMMITTEE ON PROJECT PROPOSAL TO THE BOARD.
99. BOARDS CONSULTATION WITH MINISTER ON REPORT AND RECOMMENDATIONS OF A PROVINCIAL FOREST MANAGEMENT COMMITTEE.
100. MINISTER VIEWS ON PROVINCIAL FOREST MANAGEMENT COMMITTEE’S REPORT AND RECOMMENDATIONS AND ON THE BOARD’S VIEWS.
101. BOARD DIRECTIONS TO PROVINCIAL FOREST MANAGEMENT COMMITTEE ON PROJECT AGREEMENT.
102. BOARD RECOMMENDATION TO THE PROVINCIAL FOREST MANAGEMENT COMMITTEE ON THE PARAMETERS WITHIN WHICH NEGOTIATIONS SHOULD BE CONDUCTED AND RECOMMENDATIONS ON THE COMPOSITION OF A NEGOTIATING COMMITTEE.
103. PROVINCIAL FOREST MANAGEMENT COMMITTEES CONFIRMATION TO THE BOARD ON THE PARAMETERS WITHIN WHICH NEGOTIATIONS ARE TO BE CONDUCTED AND OF THE COMPOSITION OF A NEGOTIATING COMMITTEE.
104. CONFIRMATION BY THE BOARD TO THE PROVINCIAL FOREST MANAGEMENT COMMITTEE OF THE PARAMETERS WITHIN WHICH NEGOTIATIONS ARE TO BE CONDUCTED AND ON THE COMPOSITION OF A NEGOTIATING COMMITTEE.
105. ADVICE TO BOARD BY PROVINCIAL FOREST MANAGEMENT COMMITTEE THAT NEGOTIATIONS H****E FAILED IN RESPECT TO A FINAL DRAFT OF A PROJECT AGREEMENT.
106. SUBMISSION OF FINAL DRAFT OF PROJECT AGREEMENT BY A PROVINCIAL FOREST MANAGEMENT COMMITTEE TO BOARD.
107. BOARD RECOMMENDATION TO MINISTER TO GRANT A TIMBER PERMIT.
108. BOARD REFERRAL TO PROVINCIAL FOREST MANAGEMENT COMMITTEE OF DRAFT PROJECT AGREEMENT.
109. SUBMISSION TO BOARD O FFURTHER FINAL DRAFT PROJECT AGREEMENT BY PROVINCIAL FOREST MANAGEMENT COMMITTEE.
110. MINISTER’S INVITATION TO A PERSON TO MAKE AN APPLICATION FOR A TIMBER PERMIT.
111. MINISTER’S NON-ACCEPTANCE OF BOARD’S RECOMMENDATION TO GRANT A TIMBER PERMIT AND REFERRAL TO BOARD.
112. BOARD’S FINAL RECOMMENDATION TO THE MINISTER TO GRANT A TIMBER PERMIT.
113. MINISTER REFERRAL OF BOARD RECOMMENDATION FOR A GRANT OF A TIMBER PERMIT TO NATIONAL EXECUTIVE COUNCIL.
114. DIRECTION OF NATIONAL EXECUTIVE COUNCIL TO THE MINISTER TO ACCEPT THE RECOMMENDATION OF THE BOARD OF THE FOREST AUTHORITY TO GRANT A TIMBER PERMIT.
115. DIRECTION OF NATIONAL EXECUTIVE COUNCIL TO THE MINISTER TO REJECT THE RECOMMENDATION OF THE BOARD OF THE FOREST AUTHORITY TO GRANT A TIMBER PERMIT.
116. MINISTER’S ADVICE TO THE BOARD OF NATIONAL EXECUTIVE COUNCIL’S DIRECTION TO THE MINISTER TO ACCEPT THE RECOMMENDATION OF THE BOARD OF THE FOREST AUTHORITY TO GRANT A TIMBER PERMIT.
117. MINISTER’S ADVICE TO THE BOARD OF NATIONAL EXECUTIVE COUNCIL’S DIRECTION TO THE MINISTER TO REJECT THE RECOMMENDATION OF THE BOARD OF THE FOREST AUTHORITY TO GRANT A TIMBER PERMIT.
118. TIMBER PERMIT.
(a) be in Form 115 of Schedule 1; and
(b) contain such conditions as are provided for in Section 73(2) of the Act and as are specified in Form 115 of Schedule 1.
119. APPLICATION FOR A TIMBER PERMIT.
(2) An application for a timber permit shall contain the information and particulars as required under Section 77(2) of the Act and as are specified in Form 116 of Schedule 1 and an approval of the environmental plan referred to in Section 77(2)(c)(iii) of the Act by the National Executive Council under Section 18 of the Environmental Planning Act 1978.
(3) The fee payable on an application for a timber permit shall be as specified in Schedule 3.
120. RETURN OF AN APPLICATION FOR A TIMBER PERMIT.
121. TIMBER PERMIT EXTENSION OR RENEWAL OF TERM.
(a) be in Form 118 of Schedule 1; and
(b) contain such conditions as provided for in Section 78 of the Act and as are specified in Form 118 of Schedule 1.
122. RETURN BY MANAGING DIRECTOR OF APPLICATION FOR EXTENSION OR RENEWAL OF THE TERM A TIMBER PERMIT.
123. APPLICATION FOR EXTENSION OR RENEWAL OF TERM OF TIMBER PERMIT.
(2) An application for extension or renewal of a timber permit shall not be considered by the Board until the information and particulars as are specified in Section 78(3) of the Act have been obtained and any application must contain a brief submission setting out why the extension or renewal is desired.
(3) An application must be lodged no later than 90 days before the expiry of the timber permit.
(4) The fee payable on an application for an extension or renewal of term shall be as specified in Schedule 3.
124. BOARD REQUEST TO PROVINCIAL FOREST MANAGEMENT COMMITTEE FOR A REPORT ON TIMBER PERMIT EXTENSION OR RENEWAL OF TERM.
125. REPORT TO THE BOARD BY A PROVINCIAL FOREST MANAGEMENT COMMITTEE ON AN APPLICATION FOR AN EXTENSION OR RENEWAL OF THE TERM OF A TIMBER PERMIT EXTENSION.
126. REJECTION BY BOARD OF APPLICATION FOR EXTENSION OR RENEWAL OF TERM OF A TIMBER PERMIT.
127. RECOMMENDATION BY BOARD TO THE MINISTER FOR TIMBER PERMIT EXTENSION, ETC.
128. BOARD NOTICE TO A HOLDER OF A TIMBER PERMIT THAT IT REQUIRES AN AMENDMENT TO A TIMBER PERMIT.
129. MANAGING DIRECTOR’S NOTICE OF MINISTER’S APPROVAL OF TRANSFER OF A TIMBER PERMIT.
130. MANAGING DIRECTOR’S NOTICE OF MINISTER’S APPROVAL OF SURRENDER OF A TIMBER PERMIT.
131. MANAGING DIRECTOR’S NOTICE OF MINISTER’S APPROVAL OF AMENDMENT OF A TIMBER PERMIT.
132. CONDITIONS OF A TRANSFER SURRENDER OR AMENDMENT OF A TIMBER PERMIT.
133. APPLICATION TO TRANSFER ETC. A TIMBER PERMIT.
(a) be in Form 129 of Schedule 1; and
(b) contain the information and particulars as specified in Form 129 of Schedule 1.
(2) The fee payable on an application to transfer, amend or surrender a timber permit shall be as specified in Schedule 3.
134. RETURN BY MANAGING DIRECTOR OF AN APPLICATION TO TRANSFER AMEND OR SURRENDER A TIMBER PERMIT.
135. BOARD RECOMMENDATION TO MINISTER TO TRANSFER, ETC., TIMBER PERMIT.
136. APPROVAL OF MINISTER TO TRANSFER, ETC., TIMBER PERMIT.
137. MINISTERS REFERRAL OF APPLICATION TO TRANSFER, ETC., A TIMBER PERMIT FOR BOARD’S RECOMMENDATION.
138. BOARD’S FINAL RECOMMENDATION TO MINISTER ON TRANSFER, ETC. , A TIMBER PERMIT.
139. APPROVAL OF MINISTER TO TRANSFER, ETC, TIMBER PERMIT AFTER RECEIVING BOARD’S FINAL RECOMMENDATION.
140. MINISTER’S REFERRAL OF AN APPLICATION FOR A TRANSFER AMENDMENT OR SURRENDER OF A TIMBER PERMIT TO THE NATIONAL EXECUTIVE COUNCIL.
141. DIRECTIONS OF NATIONAL EXECUTIVE COUNCIL TO THE MINISTER TO ACCEPT THE RECOMMENDATION OF THE BOARD OF THE FOREST AUTHORITY FOR A TRANSFER AMENDMENT OR SURRENDER OF A TIMBER PERMIT.
142. DIRECTIONS OF NATIONAL EXECUTIVE COUNCIL TO THE MINISTER TO REJECT THE RECOMMENDATION OF THE BOARD OF THE FOREST AUTHORITY FOR A TRANSFER AMENDMENT OR SURRENDER OF A TIMBER PERMIT.
143. MINISTER’S ADVICE TO THE BOARD AND THE HOLDER OF A TIMBER PERMIT OF NATIONAL EXECUTIVE COUNCIL’S DIRECTIONS TO THE MINISTER TO ACCEPT THE RECOMMENDATION OF THE BOARD OF THE FOREST AUTHORITY FOR A TRANSFER AMENDMENT OR SURRENDER OF A TIMBER PERMIT.
144. MINISTER’S ADVICE TO THE BOARD AND THE HOLDER OF A TIMBER PERMIT OF NATIONAL EXECUTIVE COUNCIL’S DIRECTIONS TO THE MINISTER TO REJECT THE RECOMMENDATION OF THE BOARD OF THE FOREST AUTHORITY FOR A TRANSFER AMENDMENT OR SURRENDER OF A TIMBER PERMIT.
145. SUSPENSION OF RIGHTS OF A TIMBER PERMIT, ETC.
146. NOTICE OF INTENTION TO SUSPEND RIGHTS.
147. REQUEST OF HOLDER OF TIMBER PERMIT, ETC., TO BE HEARD ON SUSPENSION OF RIGHTS.
148. APPLICATION OF HOLDER OF TIMBER PERMIT, ETC, TO RE-INSTATE RIGHTS SUSPENDED.
149. RECISSION OF NOTICE OF SUSPENSION BY THE MANAGING DIRECTOR.
150. RE-INSTATEMENT BY MANAGING DIRECTOR OF RIGHTS SUSPENDED.
151. CANCELLATION OF TIMBER PERMIT BY MINISTER.
152. NOTICE OF INTENTION TO CANCEL TIMBER PERMIT.
153. REPRESENTATIONS TO MANAGING DIRECTOR FROM HOLDER OF TIMBER PERMIT.
154. REQUEST OF HOLDER OF TIMBER PERMIT TO BE HEARD ON PROPOSED CANCELLATION OF A TIMBER PERMIT.
155. MANAGING DIRECTOR’S REPORT TO THE BOARD OF HEARING ON PROPOSED CANCELLATION OF A TIMBER PERMIT.
156. MANAGING DIRECTOR’S REPORT TO THE BOARD WHEN THERE HAS BEEN NO REPRESENTATIONS MADE OR REQUEST TO BE HEARD.
157. RECOMMENDATIONS BY BOARD TO MINISTER ON PROPOSED CANCELLATION OF TIMBER PERMIT.
158. ADVICE TO THE MINISTER TO CANCEL A TIMBER PERMIT.
159. TIMBER AUTHORITY FOR DOMESTIC PROCESSING, ETC.
160. APPLICATION FOR TIMBER AUTHORITY FOR DOMESTIC PROCESSING, ETC.
(a) a Verification of Ownership and consent of landowners form which shall be in Form 165 of Schedule 1;
(b) a copy of a Sale and Purchase Agreement between the applicant and the customary owners, which relates to the purchase, harvesting, processing or marketing of timber and other forest products from the project area and such Agreement shall be in Form 166 of Schedule 1;
(c) contain those particulars as set out in Section 88(c) of the Act.
(2) The fee payable on an application for a timber authority under this Regulation shall be as specified in Schedule 3.
161. TIMBER AUTHORITY FOR ROADLINE CLEARANCE, ETC.
(2) The maximum roadline corridor which may be cleared under a single timber authority for this purpose shall not exceed–
(a) corridor length–the length of road planned to be constructed in the particular timber authority period; and
(b) corridor width–40 metres and such said width shall not be more than 20 metres on either side of the centre of the road.
(3) Any grant of a timber authority for roadline clearance shall be granted for the period of the total roadline clearance project.
(4) A timber authority granted for forest clearance for road construction may be suspended where–
(a) construction of the road in the corridor cleared under the timber authority is not progressing according to the Department of Transport and Work’s approved implementation schedule; or
(b) the applicant has not provided the Authority with a certificate from the Department responsible for road works matters confirming that the length of road constructed in the roadline cleared in accordance with any stage of an implementation schedule meets the road construction standards of that Department.
(5) The construction of new public roads through forested area shall not be funded by the logging of a wide forest corridor, and the timber authority shall prescribe that forest clearance for road construction shall only be authorized in stages in order to ensure actual construction takes place. An applicant for a timber authority must satisfy the Managing Director that he is able to fund the roadline clearance and for this purpose the applicant may factor into their financial proposals estimates of income to the resource owners and themselves from the projected sale of forest resources.
(6) Before a timber authority is processed by the Forest Authority, the relevant Provincial Government must confirm in writing that the proposed road is on the National and or Provincial transport plan and that it agrees with the road being built, and that where it is to be responsible for the roads maintenance, it can afford to maintain the road.
162. APPLICATION FOR TIMBER AUTHORITY FOR ROADLINE CLEARANCE, ETC.
(a) a Verification of Ownership and consent of landowners form which shall be in Form 165 of Schedule 1;
(b) a copy of a Sale and Purchase Agreement between the applicant and the customary owners, which relates to the purchase, harvesting, processing or marketing of timber and other forest products from the project area and such Agreement shall be in form 166 of Schedule 1;
(c) contain those particulars as set out in Section 88(c) of the Act.
(2) The fee payable on an application for a timber authority under this Regulation shall be as specified in Schedule 3.
163. TIMBER AUTHORITY FOR AGRICULTURAL OR OTHER LAND USE.
(2) Any grant of a timber authority for agricultural or other land use shall be granted for the period of the total agriculture or other land use project.
(3)[6] [Repealed.]
(4) A further stage under the same Timber Authority may only be granted for the same purposes of forest clearance for agriculture or other land use where all conditions relating to an agricultural development plan implementation schedule have been satisfied.
(5) A timber authority granted for agriculture and other land use may be suspended where–
(a) the planned land use is not progressing according to the Department of Agriculture and Livestock approved implementation Schedule; or
(b) the applicant has not provided the Authority with a certificate from the Department responsible for Agriculture and Livestock confirming that the requirements of agriculture contained in the timber authority are in accordance with any stage of an implementation schedule and meets the standards of that Department.
(6) An applicant for a timber authority for agriculture or other land use must satisfy the Managing Director that it is able to fund the agriculture or other land use project and for this purpose the applicant may factor into their financial proposals estimates of income to the resource owners and themselves from the projected sale of forest resources.
164. APPLICATION FOR TIMBER AUTHORITY FOR AGRICULTURAL OR OTHER LAND USE.
(a) a verification of ownership and consent of landowners form which shall be in Form 165 of Schedule 1;
(b) a copy of a Sale and Purchase Agreement between the applicant and the customary owners which relates to the purchase, harvesting, processing or marketing of timber and other forest products from the project area and shall be in Form 166 of Schedule 1;
(c) contain those particulars as set out in Section 88(c) of the Act.
(2) The fee payable on an application for a timber authority under this Regulation shall be as specified in Schedule 3.
165. TIMBER AUTHORITY TO HARVEST OTHER FOREST PRODUCTS.
166. APPLICATION FOR TIMBER AUTHORITY TO HARVEST OTHER FOREST PRODUCTS.
(a) a verification of ownership and consent of landowners form which shall be in Form 165 of Schedule 1;
(b) a copy of a Sale and Purchase Agreement between the applicant and the customary owners which relates to the purchase, harvesting, processing or marketing of timber and other forest products from the project area and shall be in Form 166 of Schedule 1;
(c) contain those particulars as set out in Section 88(c) of the Act.
(2) The fee payable on an application for a timber authority under this Regulation shall be as specified in Schedule 3.
167. TIMBER AUTHORITY TO HARVEST PLANTATION MATERIAL ON GOVERNMENT, STATE LEASEHOLD, PRIVATE LEASEHOLD OR PRIVATE FREEHOLD LANDS.
168. APPLICATION FOR TIMBER AUTHORITY TO HARVEST PLANTATION MATERIAL ON GOVERNMENT, STATE LEASEHOLD, PRIVATE LEASEHOLD OR PRIVATE FREEHOLD LAND.
(a) the legal ownership of the plantation land and of the plantation material and the consent of the legal owners of the plantation and of the owners of the plantation material where applicable; and
(b) where appropriate and to the satisfaction of the Managing Director, a copy of a Sale and Purchase Agreement between the applicant and the owner of the plantation material which relates to the purchase, harvesting, processing or marketing of plantation material from the project area; and
(c) contain those particulars as set out in Section 88(c) of the Act.
(2) The fee payable on an application for a timber authority under this Regulation shall be as specified in Schedule 3.
169. MANAGING DIRECTOR’S NOTICE TO APPLICANT FOR TIMBER AUTHORITY.
170. MANAGING DIRECTOR’S REFERRAL OF TIMBER AUTHORITY APPLICATION TO PROVINCIAL FOREST MANAGEMENT COMMITTEE.
171. REJECTION BY A PROVINCIAL FOREST MANAGEMENT COMMITTEE OF AN APPLICATION FOR A TIMBER AUTHORITY.
172. RECOMMENDATIONS OF PROVINCIAL FOREST MANAGEMENT COMMITTEE ON TIMBER AUTHORITY APPLICATIONS.
(2) A recommendation shall have attached to it a draft timber authority which has been approved by the Provincial Forest Management Committee.
(3) A copy of the recommendation shall be forwarded to the Board and the Managing Director.
173. NOTICE OF INTENTION TO BOARD TO GRANT A TIMBER AUTHORITY.
(2) A copy of the proposed timber authority shall be attached to the Notice of Intention.
174. CONSENT OR NON-CONSENT OF BOARD TO THE GRANT OF A TIMBER AUTHORITY.
175. CANCELLATION OF A TIMBER AUTHORITY.
176. NOTICE OF INTENTION TO CANCEL A TIMBER AUTHORITY.
177. LICENCE.
178. RETURN BY MANAGING DIRECTOR OF AN APPLICATION FOR A LICENCE.
179. APPLICATION FOR A LICENCE.
(a) be in Form 177 of Schedule 1; and
(b) contain the information and particulars as required by Section 92 of the Act and those particulars as are specified in Form 177 of Schedule 1 and the particulars set out in Subsection (2).
(2) The particulars referred to Subsection (1)(b) are as follows:–
(a) the proposed felling and logging methods of forest produce;
(b) the proposed methods and arrangements in relation to the transportation of forest produce (if applicable);
(c) the proposed methods and arrangements in relation to the sale and/or purchase of forest produce (if applicable);
(d) the proposed methods and arrangements in relation to the marketing of forest produce (if applicable);
(e) the proposed methods and arrangements in relation to the processing of forest produce (if applicable);
(f) the proposed methods and arrangements in relation to the grading of forest produce (if applicable);
(g) the proposed consulting activities to be undertaken;
(h) any other proposed activities other than those activities specified in subsection (a), (b), (c), (d), (e), (f) and (g);
(i) the proposed forest harvesting methods if applicable;
(j) details of employment potential in relation to the licence;
(k) detailed financial analysis in relation to the licence activities including projected revenue flows, cost flows, particulars of debt servicing and rates of return;
(l) covenant and undertaking of the applicant to comply with contemporary environmental control standards and the Authority’s Manuals titled “Planning, Monitoring and Control Procedures for Natural Forest Logging Operations under a timber permit”, “The Papua New Guinea Logging Code of Practice” and “Procedures for Exporting Logs” (or any revisions thereof);
(m) detailed description and independent valuation of the applicants proposals for landowner benefits (if applicable);
(n) name of proposed contractor;
(o) a copy of certificate of registration as a forest industry participant;
(p) supporting documentation from the applicants Bankers, financiers or others confirming the ability of the applicant to undertake the proposed activities;
(q) the name, postal address, address for service in Papua New Guinea of legal process, telephone number and facsimile number of the applicant;
(r) where the applicant is a corporate person–
(i) the shareholding structure including shareholding structure of any incorporated shareholders; and
(ii) the name, office or position held in the company, nationality, place of residence, details of formal qualifications, relevant work experience of, and other current or prior offices held by, each director, office-bearer or senior management executive; and
(iii) the applicants experience in proposals of a similar nature;
(s) the name, address, telephone and facsimile number of the applicant’s bankers;
(t) any permit, licence or timber authority presently applied for or held by the applicant;
(u) audited financial statements for the year ending 31 December previously;
(v) a copy of the applicants Investment Promotion Authority certificate (if applicable).
(3) The Authority may in additions to the above information and in its discretion, require the applicant to provide further or additional information.
(4) The fee payable on an application for a licence shall be as specified in Schedule 3.
180. RETURN OF APPLICATION FOR A LICENCE.
181. REFERRAL TO BOARD FOR CONSIDERATION OF APPLICATION FOR A LICENCE.
182. BOARD DETERMINATION TO SEEK ASSISTANCE FROM THE NATIONAL FOREST SERVICE OR ANY RELEVANT DEPARTMENT IN EVALUATING AN APPLICATION FOR THE ISSUE OF A LICENCE.
183. REJECTION BY BOARD OF AN APPLICATION FOR A LICENCE.
184. CANCELLATION OF LICENCE.
185. NOTICE OF INTENTION TO CANCEL LICENCE.
186. REPRESENTATIONS TO MANAGING DIRECTOR FROM HOLDER OF A LICENCE.
187. REQUEST BY HOLDER OF A LICENCE TO BE HEARD ON PROPOSED CANCELLATION OF A LICENCE.
188. REPORT OF HEARING TO BOARD ON PROPOSED CANCELLATION OF A LICENCE.
189. RECOMMENDATIONS BY BOARD TO MINISTER ON PROPOSED CANCELLATION OF A LICENCE.
190. MANAGING DIRECTOR’S REPORT TO BOARD WHERE THERE HAS BEEN NO REPRESENTATION MADE OR HEARING REQUESTED IN RESPECT OF A PROPOSED CANCELLATION OF A LICENCE.
191. BOARD’S ADVICE TO MINISTER TO CANCEL A LICENCE.
192. EXTENSION OF TERM OF LICENCE.
193. APPLICATION FOR AN EXTENSION OF A LICENCE.
(2) The Managing Director shall submit an application lodged under Subsection (1) to the Board together with a report on the performance of the licensee in carrying out the activities authorized by the licence.
(3) The Board shall consider an application submitted to it at its first meeting after it is received and where it is satisfied with the performance of the applicant, shall recommend to the Minister that an extension be granted and the Minister may grant the extension.
(4) Where an application for extension is made more than 60 days in advance of the expiration of the licence and the licensee is not notified of the outcome of the application before the expiration of the licence, the licence shall be deemed to be extended until such notification is made.
(5) Where the Board is not satisfied with the performance of a licence it may–
(a) offer the applicant an opportunity of providing a written explanation of any alleged breach of the licence conditions; and
(b) after considering any explanation provided under Paragraph (a), reject the application by notice in writing to the applicant or recommend its extension.
(6) Where an Incorporated Land Group or other party to a Forest Management Agreement gives written notice to the Managing Director of an alleged breach of the conditions of a licence in respect of activities within the area covered by the Agreement, the Managing Director shall cause an investigation to be made of the allegation and shall submit a report of the investigation to the Board.
(7) The fee for an application for an extension of a licence shall be as specified in Schedule 3.
194. RETURN BY MANAGING DIRECTOR OF AN APPLICATION FOR EXTENSION OF TERM OF A LICENCE.
195. REJECTION OF AN APPLICATION BY THE BOARD FOR AN EXTENSION OF TERM OF A LICENCE.
196. PERFORMANCE BOND.
(2) A performance bond required to be lodged under Section 98 of the Act shall be as agreed to by the Managing Director in the form of either –
(a) an open ended bank guarantee with a commercial bank approved by the Managing Director in which case it shall be in Form 194A of Schedule 1 and shall be in the form of Deed; or
(b) cash lodgement(s) to a current account bearing deposit with a commercial bank approved by the Managing Director in which case it shall be in Form 194B of Schedule 1 or substantially in that form.
(3) Where, under Subsection (2), an open ended bank guarantee is the designated option and the performance bond has been executed by an approved Bank, the holder shall, as soon as practicable, provide to the Authority a stamped original copy of the Deed and a confirmation of lodgement of the performance bond in Form 195A of Schedule 1.
(4) Where, under Subsection (2), cash lodgement(s) to a trust account is the designated option, the following shall apply –
(a) a separate bank account shall be established with a commercial bank within Papua New Guinea;
(b) the Account shall be opened as the Project Performance Bond Account of the particular Project for which the appropriate timber permit, timber authority, licence or Authority has been issued under the Act, with the signatories to be only the Managing Director of PNG Forest Authority, the Secretary of the Department of Environment and Conservation, the Legal Counsel of the National Board Service or independent person(s) authorized by the Board and the authorized representative of the landowners;
(c) bond moneys shall be deposited in the account maintained solely for that purpose and any moneys deposited with the bank pursuant to Section 98 of the Act shall be paid into the account and any interest earned on funds of the account shall form part of the bond moneys;
(d) the holder shall provide copies of quarterly statements of account to the Managing Director of the PNG Forest Authority, the Secretary of the Department of Environment and Conservation, the Legal Counsel or the person(s) authorized by the National Forest Board, and the designated representative of the landowners.
(5) Timber Permits
(a) In respect of a timber permit, the total amount of the performance bond shall be not less than the equivalent of the total of the royalty rate plus the average rate of all landowner premiums and levies payable multiplied by the annual allowable cut divided by two, or, at the discretion of the Board in any particular case, an amount greater that what is specified in this Regulation and expressed in the following: –
P = (A+B) x C /2 where -
P = is the performance bond required
A = is the gross royalty rate payable
B = is the assessed average gross rate of all levies and premiums payable (including project development benefit)
C = is the minimum annual allowable cut.
(b) For the purpose of calculation of the performance bond under Paragraph (a), the following shall apply: –
(i) all levies and premiums payable, including those for log export, shall be assessed on the total minimum annual allowable cut, except that where a levy or premium is specified at different rates for log export and domestic processing, the lesser rate shall apply;
(ii) where calculations are required involving log export price, the price used shall be the published Papua New Guinea average log export price, expressed in PNG Kina as published in the log export monitoring report or equivalent, for the preceding calendar year.
(c) Performance bonds may be lodged within the following time periods: –
(i) where the performance bond is to be lodged under Subsection (2)(a) – within thirty days of issuance of the timber permit; or
(ii) where the performance bond is to be lodged under Subsection (2)(b) – two sixths of the total performance bond amount shall be deposited within thirty days of the issuance of the timber permit and with one sixth of the total performance bond amount to be deposited within thirty days of the start of the calendar year, for each of the four subsequent years following the issuance of the timber permit.
(d) Irrespective of the time of initial performance bond lodgement, the level of performance bond for all timber permits shall be reviewed on a standard five yearly basis, starting from the year 2005, and shall be assessed on the basis of any changes to the prevailing royalty, levy and premium rates’ the level of annual allowable cut and to the published Papua New Guinea average log export price for the calendar year preceding the review.
(e) Changes to the level of performance bond on the basis of the five yearly review shall only be made where an increased amount is required, such changes to be made in the following manner: –
(i) any existing lodgements or bank guarantees to be increased to the revised amount within 30 days of the holder receiving notice from the Managing Director of the new bond payable under this Paragraph;
(ii) any future lodgements required to be increased to the revised amount and paid as and when they fall due.
(6) In respect of forest clearing authorities
(a) In respect of forest clearing authorities and timber authorities, the total amount of the performance bond shall be not less than the equivalent of the total of the royalty rate plus the average rate of all landowner premiums and levies payable multiplied by the total assessed net timber harvest volume or the annual allowable cut, as the case may be, or, at the discretion of the Board in any particular case, an amount greater than what is specified in this Regulation and expressed in the following formula:
P = (A+B)8xCx0.2 where -
P = is the performance bond required
A = is the gross royalty rate payable
B = is the assessed average gross rate of all levies and premiums payable
C = is the assessed net harvestable timber volume or timber authority annual allowable cut.
(b) For the purpose of calculation of the performance bond under Paragraph (a), the following shall apply: –
(i) all levies and premiums payable, including those for log export, shall be assessed on the total annual allowable cut, except that where a levy or premium is specified at different rates for log export and domestic processing, the lesser rate shall apply;
(ii) where calculations are required involving log export price, the price used shall be the published Papua New Guinea average log export price, expressed in PNG Kina as published in the log export monitoring report or equivalent, for the preceding calendar year.
(c) Performance bonds may be lodged within the following time periods: –
(i) where the performance bond is to be lodged under Subsection (2)(a) – within thirty days of issuance of the Forest Clearing Authority or Timber Authority, as the case may be; or
(ii) where the performance bond is to be lodged under Subsections (2)(b) – two sixths of the total performance bond amount shall be deposited within thirty days of the issuance of the Forest Clearing Authority or Timber Authority, as the case may be, and with one sixth of the total performance bond amount to be deposited within thirty days of the start of the calendar year, for each of the four subsequent year following the issuance of the Forest Clearing Authority or Timber Authority, as the case may be.
(7) Authorities to carry out Large Scale Agriculture or other Land Use Development and Authorities to Carry Out Large Scale Roadline Development.
(a) In respect of authorities to carry out large scale agriculture or other land use development or authorities to carry out large scale roadline development, the total amount of the performance bond shall be not less than fifteen percent (15%) of the total capital cost of the agricultural, roading or other land use development proposed or, at the discretion of the Board in any particular case, where the perceived level of risk of the holder or lesser level of performance bond, as specified in this Regulation.
(b) Performance bonds may be lodged within the following time periods: –
(i) where the performance bond is to be lodged under Subsection (2)(a) – within thirty days of issuance of any forest clearing authority; or
(ii) where the performance bond is to be lodged under Subsection (2)(b) – fifty percent (50%) of the total performance bond amount must be deposited prior to the commencement of any forest clearing under a forest clearing authority and the remaining fifty percent (50%) to be deposited within thirty days of the issuance of the authority to carry out large scale agriculture or other land use development or authority to carry out large scale roadline development, as the case may be.
(c) Irrespective of the time of initial performance bond lodgement, the level of performance bond for all authorities to carry out large scale agriculture or other land use development or authorities to carry out large scale roadline development shall be reviewed annually, and adjustments made as follows: –
(i) where development is delayed and progress is deemed to be unsatisfactory, except n the case of the force majeure, the level of bond shall be increased or decreased by the Papua New Guinea Consumer Price Index on the anniversary date of the signing of the Authority for each of the Authority for each of the succeeding years, the amount to be calculated in accordance with the following formula: –
P1 = PxN1/B1
Where -
P1 = is the revised performance bond amount
P = is the amount of performance bond calculated at the time of signing the Authority
N1 = is the Consumer Price Index for Papua New Guinea (All Weighted Urban Average) published by the National Statistical Office of Papua New Guinea in respect of the quarter immediately preceding the particular anniversary date
B1 = is the Consumer Price Index for Papua New Guinea (All Weighted Urban Average) published by the National Statistics Office of Papua New Guinea in respect of quarter immediately preceding the base date;
(ii) where development is proceeding the performance bond amount shall be reduced proportionately based on the percentage of the total development, in expenditure terms, completed and subject to specific time frames agreed to between the holder and Authority.
(8) In respect of licences, the amount of performance bond shall be as determined by the Board.
(9) A holder of a timber permit, timber authority, licence, forest clearing authority, authority, authority to carry out large scale agriculture or other land use development and an authority to carry out large scale roadline development shall not be regarded as having lodged a performance bond until the holder has delivered an original copy, together with a duly complete confirmation of performance bond, to the Managing Director.
(10) No timber permit, timber authority, licence, forest authority, authority to carry out large scale agriculture or other land use development and an authority to carry out large scale roadline development shall commence, or be in effect, until a performance bond has been lodged with the Authority in the prescribed form and if not lodged within 21 days of the date of grant of such authority or such longer period as determined by the Board then the said grant or authority shall be deemed void and shall be cancelled by the Board forthwith.
(11) A holder of an existing timber permit, timber authority, licence, forest clearing authority to carry out large scale agriculture or other land use development and an authority to carry out large scale roadline scale roadline development shall comply fully with the requirements of this section within one month of the coming into operation of the Forest (Amendment) Regulation 2004.
(12) The Managing Director may, on recommendation from the Board, increase the performance bond payable under this section, taking into consideration any past non-compliance by the holder with respect to any past or existing permit, timber permit, licence, forest clearing authority, authority to carry out large scale agriculture or other land use development and authority to carry out large scale roadline development and assess the risk of the holder, including its perceived ability to replenish the performance bond in the event that it is drawn upon under Section 198 of the Act.
(13) The Managing Director may opt to undertake a risk assessment on the performance of the holder, based on criteria endorsed by the Board, if he is of the opinion that the holder poses a high level of risk to the State and landowners.
197. PROCEDURE FOR DRAWING ON A PERFORMANCE BOND.
(a) before the Authority draws on a performance bond, the Managing Director or his delegate shall serve a notice on the holder in Form 196 of Schedule 1 –
(i) specifying the allegd non-performance; and
(ii) allowing the holder at least 14 days after the date of serving the notice to –
(A) remedy the non-performance; or
(B) provide a written explanation or denial of the alleged non-performance;
(b) upon expiry of the notice period, the Managing Director may –
(i) arrange for the Authority to draw on the bond, in accordance with the prescribed scale of deductions; or
(ii) if satisfied with the explanation provided by the holder, determine that the Authority will not draw the bond, subject to the holder taking such remedial action, if any, as he directs; or
(iii) if he is of the opinion that the holder is not in breach, or that the holder has taken satisfactory remedial action, determine that the Authority will not draw on the bond and shall notify the holder in writing of his decision by a notice in Form 197 of Schedule 1.
(2) Where a bank guarantee is the designated opinion, upon termination of the timber permit, timber authority, licence, forest clearing authority, authority to carry out large scale agriculture or other land use development and authority to carry out large scale roadline development in respect of which the bond was lodged, the Managing Director shall arrange for delivery to the bank of an authorization in Form 198A of Schedule 1, under seal of the Authority, to release the balance of bond money (if any), after the Authority has drawn any money due to it, and the Authority may delay giving such authorization until it has had a reasonable opportunity to assess whether the holder has committed any breaches.
(3) Where a current interest bearing deposit account is the designated option, the following shall apply: –
(a) withdrawals from the account shall only be for the purpose of –
(i) drawing on the bond in accordance with the prescribed scale of deductions; or
(ii) refunding the full account balance, including any interest earned, to the holder upon completion, and upon confirmation of completion, of the Project;
(b) upon termination of the timber permit, timber authority, licence, forest clearing authority, authority to carry out large scale agriculture or other land use development and authority to carry out large scale roadline development in respect of which the account was established, the Managing Director shall arrange for delivery to the account signatories of an authorization in Form 198B of Schedule 1, under seal of the Authority, to release the balance of bond money (if any), after the Authority has drawn any money due to it, and the Authority may delay giving such authorization until it has had a reasonable opportunity to assess whether or not the holder has committed any breaches;
(c) any withdrawals from the Acount shall require the joint signatures of any three of the Managing Director of the Papua New Guinea Forest Authority, the Secretary of the Department of Environment and Conservation, the Legal Councel of the National Forest Board Service or independent person(s) authorized by the Board and the authorized representative of the landowners.
(4) In relation to a performance bond drawn under this section, the following shall apply: –
(a) no bond moneys shall be released to the holder by the Bank prior to the delivery of authorization under Subsection (2) or (3)(b);
(b) where the Authority has drawn on the performance bond of any holder, the holder shall, within 30 days of the date of the notification by the Authority of the drawdown by the Authority, replenish the bond as prescribed by Section 98(3) of the Act and if the holder does not provide evidence to the Managing Director that the amount in the performance bond account has been restored in full, the Managing Director may, at the expiration of the 14 days, suspend the timber permit, timber authority, licence, forest clearing authority, authority to carry out large scale agriculture or other land use development and authority to carry out large scale roadline development under Section 85 of the Act; and
(c) in the event tha the assessed cost of the contractual breach or non-compliance exceeds the value of the performance bond in place, the performance bond shall be replenished and draw upon to the extent that the full value of the contractual breach or non-compliance is compensated;
(d) a notification to the holder of a timber permit, timber authority, licence , forest clearing authority, authority to carry out large scale agriculture or other land use development and authority to carry out large scale roadline development under Section 98(3) of the Act shall be in Form 199 of Schedule 1.
198. PRESCRIBED SCALE OF DEDUCTIONS FOR BREACHES OF CONDITIONS OF TIMBER PERMITS, ETC.
(2) In assessing the scale of deduction of the performance bond for breaches or defaults as required under this section, the Authority shall make allowance for non-compliance(s) relating to force majeure as stipulated under the timber permit, authority, licence or project agreement(s) entered under Section 72 of the Act or as mutually agreed between the State, the landowners and the holder.
198A. MANAGEMENT AND CONTRAL OF PERFORMANCE BONDS.
(2) An officer designated under Subsection (1) shall –
(a) ensure that all performace bonds are properly in place and up to date; and
(b) ensure that whenever performance bonds are drawn upon, they are replenished within the due time; and
(c) provide six monthly activity reports for each performance bond guarantee or account, including start balance, account transactions, end balance and details of any notices of alleged non-performance and outcomes, and shall report on any other activities or breaches associated with each performance bond to the Managing Director with copies of the report to be provided to the Legal Councel of the National Forest Board Service or independent person(s) authorized by the Board.
(3) The process for reporting and acting upon allegations of non-compliance or breach of conditions shall be as follows: –
(a) all allegations shall be made in writing to the Managing Director and copied immediately to the Legal Counsel of the National Forest Board Service or independent person authorized by the National Forest Board;
(b) the Managing Director shall ensure that all allegations are properly investigated and that a report is prepared for each, including, the details of the findings of the investigation, and the recommened course of action;
(c) the Managing Director shall forward the report to the Legal Counsel of the Natonal Forest Board Service or independent person authorized by the National Forest Board, who will assess the matter and either provide a final clearance or will recommend other actions. No reported breaches are to be either dismissed or acted upon without both the approval of the Managing Director and consent of the Legal Counsel of the National Forest Board Service or independent person authorized by the National Forest Board.
(d) the Legal Counsel of the National Forest Board Service or independent person authorized by the National Forest Board shall provide six monthly reports to the Board regarding the status and activities of all performance bonds and shall also report to the Board immediately regarded any significant actions or breaches associated with any performance bond.
199. PROJECT STATEMENT.
(a) permit holders’ company profile including details of all senior personnel employed;
(b) permit holders’ experience in the carrying out of similar projects;
(c) permit holders proposed method or methods and mode of operations in the harvesting, processing and sale of forest produce in the project;
(d) permit holders proposed method of project management;
(e) permit holders objectives and strategies in respect to the project for each successive five year periods during the term of the timber permit;
(f) such other detail as are determined by the Board from time to time.
(2) The fee payable on the submission of a project statement shall be as specified in Schedule 3.
200. FIVE YEAR WORKING PLANS.
(a) a map of the entire project area at a scale of 1:50,000 (blow-ups of the standard PNG 1:100,000 topographic map series are acceptable) showing–
(i) areas already logged (if any) and year of logging; and
(ii) areas to be logged during the next five years. The area shown must be the gross loggable area, i.e. excluding major areas where logging may not take place (e.g. conservation areas, swamps, areas exceeding 30 degrees slope, extensive village/garden areas), and areas of unmerchantable forest where logging is not planned, but note smaller scale exclusion areas to be delineated at the operational or set-up planning stage (e.g. buffer zones, small cultural sites); and
(iii) permanent forest roads and bridges to be constructed during the five years; and
(iv) the location of any log ponds to be constructed during the five years. Planners preparing a Five Year Plan should note take specific approval to establish a new log pond must be obtained before any construction commences; and
(v) the location of any new logging base camps to be constructed during the five years. Planners preparing a Five Year Plan should note that specific approval to establish a new logging base camp must be obtained before any construction commences; and
(vi) the location of the volumetric survey lines or plots;
(b) a Schedule showing the planned order of logging, including estimates of net loggable areas, and net harvestable volumes (including species distribution) for each year’s area of operations. The estimate of net harvestable volume must be based at minimum on a 1% sample of the gross loggable area (as would be provided for example by parallel survey lines consisting of continuous line plots 5m wide at 500m intervals). For new projects a 1% sample will have already been assessed as part of the Feasibility Study. For existing projects a minimum 1% volumetric survey must be undertaken. The details of net harvestable volumes presented must be based on actual inventory of the areas to be logged, and not on historical data from previously logged areas;
(c) a schedule detailing all landowner benefits which are to be delivered during the five year period, plus a delivery schedule;
(d) five bound copies of the plan shall be attached to Form 201 of Schedule 1;
(e) such other detail as are determined by the Board from time to time.
(2) The fee payable on the submission of a five year working plan shall be as specified in Schedule 3.
201. ANNUAL LOGGING PLAN.
(a) an endorsement letter signed by the Authority’s field based Project Supervisor;
(b) a map at a scale of 1:25,000 (blow-up of the standard PNG 1:100,000 topographic map series are acceptable) clearly showing–
(i) the areas to be logged during the next 12 months split into set-ups of a maximum of 150 hectares each. Set-up boundaries must reflect natural features (where these exist), especially water courses. Areas with no identifiable natural features may be split upon a grid basis and where natural features exist with no reference to the field, the map will not be accepted. Set-ups must be numbered; and
(ii) areas not to be logged e.g. conservation areas, low merchantable volume areas, village reserves, cultural and historic sites; and
(iii) the existing road network, and any existing permanent roads to be decommissioned during the year; and
(iv) any new permanent forest roads and bridges to be constructed during the year. Typically permanent roads are constructed up to 12 months ahead of logging. The map must show all permanent roads to be constructed during the year, including those roads which will not be used until the following year. Road corridors to be cleared for permanent forest road construction must be split into one or more set-ups, and numbered; and
(v) log volume production and use i.e. exported, converted to wood products (sawn timber, plywood, chips, other–including processed product output volumes), changes in stocks; and
(vi) new construction undertaken (forest roads, log ponds, logging base camps, and landowner infrastructure); and
(vii) existing construction which has been decommissioned (forest roads, log ponds and logging base camps); and
(viii) a list of the set-ups form the previous year’s Annual Logging Plan for which no application for a Set-up Plan approval was made, and which have been renumbered and included in the current year’s Annual Logging Plan; and
(ix) infrastructure and other landowner benefits delivered during the year; and
(x) the location of any gravel sources to be exploited during the year; and
(xi) existing log ponds, and the location of any new log ponds to be constructed during the year. Planners preparing an Annual Logging Plan should note that specific Authority’s approval to establish a new log pond must be obtained before any construction commences; and
(xii) existing logging base camps, and the location of any new logging base camps to be constructed during the year. Planners preparing an Annual Logging Plan should note that specific Authority’s approval to establish a new logging base camp must be obtained before any construction commences;
(c) a schedule showing the planned order of logging the set-ups (including both selection logging set-ups and permanent roading set-ups), including set-up number, and for each set-up an estimate of the net loggable area, and an estimate of the harvestable volume (including species distribution). The estimate of net harvestable volume may be based on the 1% sample of the loggable area already presented in the Five Year Plan;
(d) a schedule detailing road and water crossing standards for the permanent forest roads to be constructed during the year;
(e) a schedule setting out the equipment (types and numbers) and logging methods to be used during the 12 months period;
(f) a schedule detailing all landowner benefits which are to be delivered during the year. For infrastructure the Schedule must indicate construction start-up time, estimated completion time, construction standards, an estimate of total costs, and an indicative infrastructure maintenance plan (including responsibility and cost estimates);
(g) a report on the implementation of the previous year’s Annual Logging Plan, comparing plan with actual performance, and summarising;
(h) five bound copies of the plan shall be attached to Form 202 of Schedule 1;
(i) such other detail as are determined by the Board from time to time.
(2) Before logging commences in each harvest area the holder of a timber permit shall apply in writing to a Forest Officer or Forest Inspector for a harvest authorization.
(3) Before a harvest authorization is granted for a particular area the holder of the timber permit shall, in accordance with directions issued from time to time by the Managing Director–
(a) conduct and submit the results of an inventory as directed by the Managing Director from time to time; and
(b) produce a detailed map of the area showing the location of proposed logging roads and skid trails and areas where logging is not to occur for environmental and cultural reasons; and
(c) specify any site-specific measures to avoid or mitigate environmental damage; and
(d) comply with such general directions as from time to time, are given by the Managing Director.
(4) A holder of a timber permit shall notify the Authority upon completion of logging, forest management and related work carried out by him in accordance with any standards and directions set by the Managing Director from time to time.
(5) As soon as practicable after notification under Subsection (4) is received by the Authority, a Forest Officer or Forest Inspector shall–
(a) carry out an inspection of the work as prescribed; and
(b) if work has been carried out in compliance with the standards and directions required, issue a certificate in Form 203 of Schedule 1 to that effect in accordance with Section 102(3) of the Act; and
(c) if work has not been carried out in compliance with the standards and directions required, issue a Notice of Unsatisfactory Completion of Work in Form 204 of Schedule 1.
(6) Harvest authorization to commence logging in successive harvest areas designated in an annual logging plan may be granted subject to and conditional upon the holder of the timber permit obtaining a certificate under Section 102(3) of the Act in respect of a previous harvest authorization.
(7) Commencement of logging in an area without a harvest authorization shall constitute an offence and a breach of the offender’s timber permit, timber authority or licence.
(8) The fee payable on submission of an Annual Logging Plan shall be as specified in Schedule 3.
202. FAILURE TO LODGE SATISFACTORY STATEMENTS AND PLANS.
203. PRESERVATION REQUIREMENTS.
204. LOG IDENTIFICATION SCALING METHODS AND REPORTING AND ROYALTY SELF-ASSESSMENT.
(a) the Forest Authority’s “Manual of Procedures for the Identification Scaling and reporting (including royalty self assessment) on Logs harvested from Natural Forest Logging Operations” (or any revisions thereof) shall form part of the Regulations;
(b) only licensed log scalers may measure and identify logs;
(c) it shall be an offence if any person identifies or measures logs otherwise than in accordance with the Regulations or makes a false statement in any scaling statement or declaration;
Penalty: A fine not exceeding K50,000.00.
(d) log tags will be supplied by the Authority, or on behalf of the Authority by an agent on making application in Form 232 of Schedule 1 and on payment of the fee as determined from time to time by the Managing Director;
(e) the Authority may from time to time specify different methods of identification, measurement and branding for different categories of timber and specify different procedures relating thereto.
205. LICENSING OF LOG SCALERS.
(2) A–
(a) person shall not work as a log scaler; and
(b) logging operator shall not employ a person as a log scaler, unless that person–
(i) has been awarded a log scaling certificate by the Timber Industry Training College; and
(ii) is licensed in accordance with this Regulation.
Penalty: A fine not exceeding K200.00.
(3) A Log Scaler’s Licence shall be Form 205 of Schedule 1 and shall be issued for a period of two years by the Chief Scaler, who shall maintain a register of log scalers.
(4) A log scaler who has been licensed shall be provided with an identity card by the Chief Scaler and shall, whilst carrying out scaling activities, carry the identity card on his person and produce it on demand to a Forest Officer or Inspector.
(5) Any person, whether self-employed, employed by the holder of a timber permit or timber authority or by a logging company may apply for a Log Scaler’s Licence to the Chief Scaler enclosing–
(i) an application which shall be in Form 206 of Schedule 1; and
(ii) a copy of the applicant’s log scaling certificate awarded by the Timber Industry Training College; and
(iii) two passport size photographs, one of which will be attached to the licence; and
(iv) a cash performance bond of K500.00 which, subject to Subsection (5), is refundable when the licence lapses; and
(v) a two year licence fee as specified in Schedule 3.
(6) The cash performance bond lodged under Subsection (5)(iv) shall be–
(a) forfeited to the Authority in the event of cancellation by the Chief Log Scaler on the grounds of failure by the Log Scaler to comply with the Regulations relating to log scaling; and
(b) otherwise, be repaid to the person lodging the bond on the expiry or cancellation of the Log Scaler’s Licence.
(7) A licensed log scaler shall ensure that his licence is renewed as required and where a licensed log scaler intends to cease practising before his current licence expires he may apply to the Chief Log Scaler for his licence to be cancelled and his performance bond to be returned.
206. NOTICE OF INTENTION TO CANCEL SCALER’S LICENCE.
207. CANCELLATION OF LOG SCALER’S LICENCE.
208. REGISTRATION OF A FOREST INDUSTRY PARTICIPANT.
209. APPLICATION FOR REGISTRATION AS A FOREST INDUSTRY PARTICIPANT.
(2) An application under Subsection (1) shall contain particulars of–
(a) the name, postal address, address for service in Papua New Guinea of legal process, telephone number and facsimile number of the applicant; and
(b) where the applicant is a corporate person–
(i) the shareholding structure; and
(ii) the name, office or position held in the company, nationality, place of residence, details of formal qualifications, relevant work experience of, and other current or prior offices held by, each director, office-bearer or senior management executive; and
(c) the name, address, telephone and facsimile number of the applicant’s bankers; and
(d) the proposed activities; and
(e) any permit, licence or timber authority granted under the repealed Acts; and
(f) any agreement under the repealed Acts to which the applicant was a party; and
(g) such other information as required by Form 210.
(3) An application under Subsection (1) shall be accompanied by–
(a) where the applicant is a corporate person–
(i) a copy of the certificate of incorporation; and
(ii) the shareholding structure of any incorporated shareholders; and
(b) a summary of proposed forest industry activities; and
(c) financial statements for the three years immediately prior to the date of application; and
(d) The application fee as specified in Schedule 3.
(4) The fee payable on an application for registration as a forest industry participant.
210. REGISTRATION OF A FOREST INDUSTRY CONSULTANT.
211. APPLICATION FOR REGISTRATION AS A CONSULTANT.
(2) An application under Subsection (1) shall contain particulars of–
(a) the name, type of entity, postal address, address for service in Papua New Guinea of legal process, telephone number and facsimile number of the applicant; and
(b) where the applicant is a corporate person–
(i) the shareholding structure; and
(ii) the name, office or position held in the company, nationality, place of residence, details of formal qualifications, relevant work experience and other current or prior offices held by each director, office-bearer or senior management executive; and
(c) the type of expertise offered; and
(d) the proposed consultancy activities; and
(e) such other information as is required by Form 212.
(3) An application under Subsection (1) shall be accompanied by–
(a) a resume of qualifications and work experience of the applicant and of consultants employed by the applicant; and
(b) where the applicant is a corporate person–
(i) a copy of the certificate of incorporation; and
(ii) the shareholding structure of any incorporated shareholders; and
(c) the application fee as specified in Schedule 3.
(4) The fee payable on an application for registration as a forest industry consultant shall be as specified in Schedule 3.
212. RETURN BY THE MANAGING DIRECTOR OF AN APPLICATION FOR REGISTRATION AS A FOREST INDUSTRY PARTICIPANT OR CONSULTANT.
213. NOTIFICATION OF CHANGE OF PARTICULARS.
(2) The Managing Director may on receipt of a Notification of Change of particular request such further or additional information as he thinks fit.
(3) Where the Notification particulars are of such a nature that there is a change in ownership, share holding or beneficial ownership or control and such change is–
(a) more than 10% in any one year; or
(b) represents a change of more than 25% in the ownership of the forest industry participant or consultant enterprise (except where the registered forest industry participant or consultant is a subsidiary of a holding company and the ownership of the holding company does not change and the registered forest industry participant enterprise remains a subsidiary of that holding company) as from the date of registration under the Act then such change may be deemed sufficient grounds to justify cancellation of registration and the Board may require the registered forest industry participant or consultant to make a new application for registration as a forest industry participant or consultant.
(4) In Subsection (3) “subsidiary” and “holding company” have the same meanings as defined in the Companies Act 1997.
(5) Nothing in this Section restricts the Managing Director from exercising the power contained in Section 112 of the Act.
(6) A person, who fails to comply with the provisions of Subsection (1), is guilty of an offence.
Penalty: A fine not exceeding K10,000.00.
(7) The fee payable on a notification of change of particulars shall be as specified in Schedule 3.
214. NOTIFICATION OF INTENTION TO MAKE REFERRALS TO THE BOARD FOR CANCELLATION OF REGISTRATION.
215. REFERRALS TO THE BOARD FOR CONSIDERATION OF CANCELLATION OF REGISTRATION.
216. NOTICE OF BOARD DIRECTIONS.
217. APPEAL TO MINISTER ON REGISTRATION, ETC.
(2) The fee payable on an appeal to the Minister shall be as specified in Schedule 3.
218. MINISTER’S DECISION ON APPEAL.
219. EXEMPTION.
(2) A person engaged in an aid project approved by the Government of Papua New Guinea does not require to be registered as a consultant in respect of work undertaken by him in connection with such aid project.
220. STATE PURCHASE OPTION.
(2) The procedure to be followed in accordance with Section 115(4) of the Act are as follows:–
(i) on the first day of the third month of each quarter of each permit year the permit holder shall, in writing, offer to sell, in relation to logs in proportions approximately representative of the mix species of logs to be harvested that permit year, at least one-sixteenth (1/16) of that permit year’s permitted log export volume to the State or its nominee for delivery within a period of one month from the end of that quarter on dates to be agreed upon and on payment terms substantially consistent with those in effect with respect to the permit holder’s other customers;
(ii) the offer will include details of the size and grade of each log, by species, with prices differentiated by size, grade, and species and shall be in that form and contain such other particulars as determined form time to time by the State Marketing Agency;
(iii) the offer or part thereof will be accepted or rejected in writing by the State or its nominee within ten working days of its receipt;
(iv) if an offer is accepted the State shall deliver to the holder of the timber permit a Notice of Proposal to exercise option in Form 220 of Schedule 1;
(v) if and to the extent that the State or its nominee rejects the offer with respect to any quarter, it will forego the right to purchase that amount of logs for that quarter under this Section;
(vi) if the State rejects or fails to respond to the aforesaid offer within the ten working days provided, the permit holder shall not sell the logs or any part thereof to any other party at lesser prices or on terms more favourable to the buyer than those offered to the State or its nominee without first re-offering the logs to the State or its nominee at such lesser price or such more favourable terms, whereupon, as before, the State shall, within ten working days of the receipt of the offer, accept or reject it;
(vii) the obligation to make offers under Subsection 1 above will cease when the State or its nominee has acquired twenty-five percent (25%) of the permit holder’s permitted log export volume for the relevant permit year;
(viii) logs purchased under this Regulation will be on a free-on-board basis, and the price paid by the State or its nominee shall be the price accepted pursuant to Subsection (3) less any duty payable on the export of the said logs;
(ix) logs purchased by the State or its nominee pursuant to this Regulation shall cause the permit holder’s permitted log export volume for that permit year to be reduced accordingly by the volume of logs purchased by the State.
(x) the administrative operation of this Regulation may be reviewed, and, if necessary, revised annually by the State to ensure that it effectively enables the State to purchase up to 25% of the permit holder’s permitted annual log export volume;
(xi) the Managing Director shall have authority on behalf of the State to exercise the rights conferred on the State by this Regulation, and may appoint a nominee on behalf of the State to exercise these rights.
221. TRANSFER PRICING.
“arms length” means a transaction where–
(a) the parties, in negotiating the transaction, have sought to promote their own best interests in accordance with fair and honest business methods; and
(b) there is no other consideration for the provision of goods or services other than a monetary consideration, being the price; and
(c) the terms of the transaction have not been affected by, nor determined as a consequence of, any other agreement, or proposed agreement, or understanding, or any direct or indirect relationship (other than the relationship created by the transaction) between one party, or a shareholder of that party, or a company in which that party or a shareholder of the party; and a company in which that party is a shareholder; and
(d) in the case of a sale, neither the seller nor any person connected with it, through shareholding or otherwise, has any direct or indirect interest in the subsequent resale or disposal by the buyer of any of the products or services purchased pursuant to the agreement;
“transfer pricing” means the pricing of inter-company loans, or transfer of goods or services such that–
(a) in respect of the Company receiving the loans, goods or services, the interest or other monies paid or payable by the Company for such loans, goods or services is higher than the value received by the Company; and
(b) in respect of the Company is providing the loans, goods or services, the interest or other moneys received or receivable by the Company for such loans, goods or services is lower than the value received by the other party;
“value received”, in the case of a transfer of goods and services, is the price which would have been obtained on an arm’s length transaction, and in the case of a loan, shall be the interest and other moneys payable for a loan in the same amount for the same period and on the same terms and conditions which a Company of similar standing to the Company could, in seeking to promote its own best interest in accordance with fair and honest business methods, have negotiated from a lending institution of international repute.
(2) A person, who practices transfer pricing, is guilty of an offence.
Penalty: A fine of twice the “value received” as defined in Subsection (1) or K100,000.00, whichever is the greater amount.
(3) For the purpose of enabling the Authority to satisfy itself as to compliance by a Company with its obligations under this section not to practise transfer pricing, the Company, on written request by the Authority, shall promptly furnish the Authority with–
(a) full details of the parties to, and the conditions of, any loans, transfers of goods or services to, or by, the Company; and
(b) copies of all agreements, documents, and correspondence in respect thereof; and
(c) full details of any other agreements or undertakings entered into, or reached by, the Company, or a shareholder of the Company or by a company in which the Company is a shareholder.
222. VARIATION BY THE MINISTER OF ROYALTY PAYABLE UNDER A TIMBER PERMIT.
223. LEVIES.
(2) The holder of a timber permit, timber authority or licence, who fails to pay a levy fixed under Section 121 of the Act at the time and to the person specified in the notice referred to in Subsection (1), is guilty of an offence.
Penalty: A fine up to but not exceeding K500,000.00.
Default penalty: A fine not exceeding K500,000.00.
(3) The method of payment and collection of levies shall be as follows:–
(a) the Managing Director or his regional representative shall prepare and deliver a Notice of assessment of levy and forward it by post or otherwise to the holder of a timber permit, timber authority or licence as the case may be and the holder of such timber permit, timber authority or licence must pay the amount assessed, clear of all deductions, within 14 days after the date specified in the assessment and such payment shall be by bank cheque.
Penalty: A fine not exceeding K1,000.00.
(b) without prejudice to any other imposition, suspension or penalty that may be made or imposed under this Regulation, any amount of levy that remains unpaid after the expiration of the period specified in Subsection (3)(a) may be recovered by the Authority as a debt and in addition thereto the holder of a timber permit, timber authority or licence as the case may be shall not be permitted to export any forest produce while levies or any part thereof remain unpaid.
(4) A notice of a levy under Section 121 shall be in Form 222 of Schedule 1.
224. LAWFUL DIRECTION.
225. NOTICE OF SEIZURE.
226. ACT OF SEIZURE.
(2) The face referred to in Subsection 1 shall be used for marking any timber or forest produce seized under the Act.
227. NOTICE OF FORFEITURE.
228. DECLARATION BANNING EXPORT ETC.
229. REGISTRATION OF BRAND.
230. APPLICATION TO REGISTER IN THE AUTHORITY A BRAND.
231. SAFETY.
(a) be strongly and properly made; and
(b) be provided with proper and efficient brake-gear for regulating and controlling its speed and running power.
(2) A tramway and every part of a tramway shall be kept and maintained in good order and repair for the purpose of transporting forest produce and any other freight that is authorized, and for the safety of persons and animals carried or employed on and such said forest produce shall at all times be properly secured.
(3) A Forest Inspector or Forest Officer may–
(a) suspend the working of a tramway, or the use and employment of any locomotive, mill-truck, winch, cable, or hauling machinery, that he regards as unsafe or not in proper repair; and
(b) notify the holder of the timber permit or his agent accordingly and direct such repair or renewals as he thinks proper, and the holder of the timber permit shall comply immediately with the notice and without delay effect the repairs or renewals directed to the satisfaction of a Forest Inspector or Forest Officer.
Penalty: A fine not exceeding K1,000.00.
232. ACCESS RIGHTS.
Penalty: A fine not exceeding K1,000.00.
(2) All charges by the holder of a timber permit for the carriage of forest produce or running rights over the tramway shall be on a reasonable scale and are subject to the approval of the Managing Director.
233. SHIP LOADING AUTHORIZATION AND SUSPENSION OF SHIP LOADING AUTHORIZATION.
234. LOG EXPORTS.
(2) A person, who fails to comply with the provisions of this Regulation is guilty of an offence.
Penalty: A fine not exceeding K50,000.00.
(3) A person, who makes a false statement in any return or other document furnished to the National Forest Service, the Authority or the Minister in connection with an application to export timber, is guilty of an offence.
Penalty: A fine not exceeding K50,000.00.
235. ROLE AND RECOGNITION OF BODIES REPRESENTING CUSTOMARY OWNERS.
(2) Subject to Subsection (3), where the Managing Director is of the opinion that a body nominated under Subsection (1) satisfactorily represents in accordance with this section the customary owners in the project area, he shall recognise the body for such purpose, and notify the body accordingly.
(3) Where the Managing Director, in consultation with the Provincial Forest Management Committee, is satisfied that–
(a) due to the special circumstances of the customary owners from a project area, it is impracticable for all such customary owners to be represented by a single representative body; and
(b) it is in the best interests of the customary owners from that project area that they appoint or establish more than one representative body, the Managing Director may recognise more than one body nominated by customary owners from a project area provided that–
(i) each such body shall represent customary owners from a clearly defined area within the project area; and
(ii) the aggregate of such areas shall make up the whole of the project area.
(4) Where the Managing Director recognises more than one body in accordance with Subsection (3), he shall also determine the arrangements under which payments shall be apportioned between the bodies.
(5) The Managing Director may issue Guidelines on the formation and structure of bodies which he will consider as satisfactorily representing customary owners.
(6) A body recognised under this section may expend and invest moneys received by it as it considers fit, subject to–
(a) the articles, constitution or rules governing or establishing the body; and
(b) any reasonable rules and procedures regarding management of bank accounts which may be determined by the Board, for the purpose of ensuring that payments are invested or expended for the collective benefit of customary owners in the project area.
(7) Where the Board, on reasonable grounds, is of the opinion that moneys have been expended or invested in breach of any articles, constitution or rules and procedures determined by the Board under Subsection (6), it may, by notice to the representative body and to the bank where the account is held, suspend the operation of the account.
236. CANCELLATION OF RECOGNITION.
(a) fails to comply with any rules or procedures determined by the Board in relation to bank accounts; or
(b) fails adequately to account for funds in accordance with any procedures provided for under the law governing its establishment or incorporation, the Managing Director may cancel its recognition.
(2) For the purposes of Subsection (1), “principal” includes director, manager, secretary, executive committee member or public officer, or any other similar office or any person purporting to act in such a capacity.
(3) On cancellation under Subsection (1), the Managing Director may withhold moneys in trust.
237. RETURNS AND RECORDS.
238. DESTRUCTION OF FOREST PRODUCE.
Penalty: A fine not exceeding K100,000.00.
239. REGISTRATION OF TIMBER PROCESSING PLANT.
240. APPLICATION FOR REGISTRATION OF TIMBER PROCESSING PLANT.
(2) The fee payable on submitting an application shall be as specified in Schedule 3.
(3) An application under Subsection (1) shall be in Form 230 of Schedule 1.
(4) An officer of the National Forest Service may at any reasonable time inspect any plant used for processing timber or which he believes is used for processing timber, whether or not such plant is registered.
(5) The person responsible for the operation of a registered plant shall, by 31 March in each year, submit to the Managing Director an Annual Return for the preceding year setting out details of the operations of the plant in a form and manner and containing such particulars as are specified from time to time by the Managing Director.
(6) Any change in the operator of a timber processing plant shall be notified within seven days to the Managing Director.
(7) A person, who operates a timber processing plant which is not registered under this section, is guilty of an offence.
Penalty: A fine not exceeding K10,000.00.
241. LOGGING AND ROADING STANDARDS AND PRACTICES.
(a) timber permit; or
(b) timber authority, where that authority was applied to harvest less than 5000m3 per year by selection logging from customary land; or
(c) licence,
shall ensure that forest roading and logging and all other forestry activities of whatsoever nature is undertaken according to the Authority’s standards and practices as set out in the Authority’s Manuals titled “Papua New Guinea’s Logging Code of Practice”, “Planning, Monitoring and Control Procedures for Natural Forest Logging Operations, under a timber permit” and “Procedures for Exporting Logs” (or any revisions thereof).
242. BOARD NOTICE TO VARY TERMS OR CONDITIONS OF REGISTRATION, PERMIT, LICENCE, TIMBER RIGHTS PURCHASE AGREEMENT, AUTHORITY OR AGREEMENT.
243. OFFENCES GENERALLY.
(2) A person, who attempts, aids, abets, counsels, or procures, or is in any way knowingly concerned in an offence against this Regulation, is deemed to have committed that offence.
(3) Where, by the authority of the Act or this Regulation, a direction is given to a person and such direction is not complied with, then that person is guilty of an offence.
(4) Where no other penalty is expressly provided in respect of an offence a person guilty of that offence against any provision of this Regulation shall be liable to a penalty by way of a fine of–
(a) where the person is a natural person–an amount not exceeding K1,000.00; or
(b) where the person is a body corporate–an amount not exceeding K10,000.00.
(5) In addition to any penalty under Subsection (4), a person guilty of an offence involving timber or other forest produce shall–
(a) forfeit such timber or forest produce to the owner, or in the case where the offender is the owner, to the Authority; and
(b) be liable also to compensate the Authority or owner of timber or other forest produce in respect of any loss or damage caused in the commission of an offence.
(6) All timber and forest produce harvested pursuant to a timber permit or timber authority on which any royalties, levies or other charges are payable under the Act may be seized by the Authority until the royalties, levies or other charges or paid, and if payment is not made with 20 days of seizure, may be disposed of by the Authority.
244. FEES.
245. MAPS, ETC.
246. FORMS.
(2) Forms required to be signed by or on behalf of the Managing Director, the Authority, the Minister, or any officer of the National Forest Service may be numbered and shall be kept in a secure place.
247. TENDERS.
(2) An application for tender documentation/specifications (if any) relating to any tender (other than documentation/specifications relating to a project proposal) shall be in Form 232 of Schedule 1 and shall be accompanied by the prescribed fee in Schedule 3 which shall be non-refundable.
248. SERVICE OF NOTICE ETC.
249. PUBLIC REGISTER.
(2) An application to search the public register shall be in Form 232 of Schedule 1 and the prescribed fee shall be as set out in Schedule 3.
250[12]. [REPEALED.]
251. DISASTERS.
(a) invite any person or persons who are registered forest industry participants to salvage the forest produce and to carry out any other forest industry activity as defined in such disaster area on such terms and conditions as he thinks fit; or
(b) permit such person or persons or the National Forest Service itself to undertake any reforestation or other land use in the disaster area on such terms and conditions as he thinks fit.
252. REPEAL.
253. TRANSITIONAL.
254. APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE AGRICULTURAL OR OTHER LAND USE DEVELOPMENT PROJECT WHERE THE AMOUNT OF PROPOSED CLEARANCE OF NATURAL FOREST IS GREATER THAN 50 HECTARES IN TOTAL.
(a) be in Form 233 of Schedule 1; and
(b) contain the information and particulars as are specified in Form 233 of Schedule 1.
(2) The fee payable on an application to carry out a large scale agricultural or other land use development project shall be as specified in Schedule 3.
255. RETURN OF AN APPLICATION FOR A LARGE SCALE CONVERSION OF FOREST TO AGRICULTURE OR OTHER LAND USE.
256. BOARD’S CONSULTATION WITH A GOVERNMENT BODY RELATING TO AN APPLICATION TO CARRY OUT A LARGE SCALE AGRICULTURE OR OTHER LAND USE DEVELOPMENT.
257. NOTICE OF A PUBLIC HEARING IN RESPECT TO AN APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE AGRICULTURE OR OTHER LAND USE DEVELOPMENT.
258. INSTRUMENT OF APPOINTMENT OF CHAIRMAN OF A PUBLIC HEARING.
259. REFERENCE OF AN APPLICATION FOR A PROPOSED LARGE SCALE AGRICULTURE OR OTHER LAND USE PROJECT AND SUMMARY OF PUBLIC HEARING TO PROVINCIAL FOREST MANAGEMENT COMMITTEE.
260. PROVINCIAL FOREST MANAGEMENT COMMITTEE REQUEST FOR ASSISTANCE OF NATIONAL FOREST SERVICE OR OTHER RELEVANT DEPARTMENT.
261. PROVINCIAL FOREST MANAGEMENT COMMITTEE REPORT AND RECOMMENDATION TO THE BOARD TO APPROVE/REJECT AN APPLICATION FOR AN AUTHORITY TO CARRY OUT AN AGRICULTURAL OR OTHER LAND USE PROJECT.
262. BOARD’S ADVICE TO APPLICANT OF REJECTION OF APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE AGRICULTURE OR OTHER LAND USE PROJECT.
263. BOARD’S RECOMMENDATION TO MINISTER TO RECOMMEND TO THE NATIONAL EXECUTIVE COUNCIL TO ENDORSE AN APPLICATION FOR A LARGE SCALE CONVERSION OF FOREST TO AGRICULTURE OR OTHER LAND USE.
264. REJECTION BY BOARD OF AN APPLICATION FOR A LARGE SCALE AGRICULTURE OR OTHER LAND USE PROJECT.
265. MINISTER FOR FORESTS REFERRAL OF BOARD RECOMMENDATION FOR APPROVAL OF AN APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE AGRICULTURE OR OTHER LAND USE DEVELOPMENT TO NATIONAL EXECUTIVE COUNCIL.
266. DIRECTION OF NATIONAL EXECUTIVE COUNCIL TO THE MINISTER FOR FORESTS TO ENDORSE/REJECT AN APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE AGRICULTURE OR OTHER LAND USE PROJECT.
267. MINISTER’S ADVICE TO THE BOARD OF THE NATIONAL EXECUTIVE COUNCILS DIRECTION TO THE MINISTER FOR FORESTS TO ENDORSE/REJECT THE RECOMMENDATION OF THE BOARD OF THE FOREST AUTHORITY TO APPROVE AN APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE AGRICULTURE OR OTHER LAND USE PROJECT.
268. BOARD’S ADVICE TO APPLICANT AND PROVINCIAL FOREST MANAGEMENT COMMITTEE OF DECISION OF NATIONAL EXECUTIVE COUNCIL DIRECTING THE MINISTER TO REJECT AN APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE AGRICULTURE OR OTHER LAND USE DEVELOPMENT.
269. AUTHORITY TO CARRY OUT A LARGE SCALE AGRICULTURE OR OTHER LAND USE DEVELOPMENT PROJECT.
270. FOREST CLEARING AUTHORITY.
271. APPLICATION FOR AUTHORITY TO CARRY OUT A LARGE SCALE ROADLINE DEVELOPMENT PROJECT OVER AN EXISTING FORESTED AREA WHERE THE PROPOSED ROAD WILL BE GREATER THAN 12.5 KILOMETRES IN LENGTH.
(a) be in Form 250 of Schedule 1; and
(b) contain the information and particulars as are specified in Form 250 of Schedule 1.
(2) The fee payable on an application to carry large scale roadline development project shall be as prescribed in Schedule 3.
272. RETURN OF AN APPLICATION FOR A LARGE SCALE CONVERSION OF FOREST TO ROAD.
273. BOARD’S CONSULTATION WITH A GOVERNMENT BODY RELATING TO AN APPLICATION TO CARRY OUT A LARGE SCALE ROAD DEVELOPMENT PROJECT.
274. NOTICE OF A PUBLIC HEARING IN RESPECT TO AN APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE ROAD DEVELOPMENT PROJECT.
275. INSTRUMENT OF APPOINTMENT OF CHAIRMAN OF A PUBLIC HEARING.
276. REFERENCE OF AN APPLICATION FOR A PROPOSED LARGE SCALE ROAD DEVELOPMENT PROJECT AND SUMMARY OF PUBLIC HEARING TO PROVINCIAL FOREST MANAGEMENT COMMITTEE.
277. PROVINCIAL FOREST MANAGEMENT COMMITTEE REQUEST FOR ASSISTANCE OF NATIONAL FOREST SERVICE OR OTHER RELEVANT DEPARTMENT.
278. PROVINCIAL FOREST MANAGEMENT COMMITTEE REPORT AND RECOMMENDATION TO THE BOARD TO APPROVE/REJECT AN APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE ROAD DEVELOPMENT PROJECT.
279. BOARD’S ADVICE TO APPLICANT OF REJECTION OF APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE ROAD DEVELOPMENT PROJECT.
280. BOARD’S RECOMMENDATION TO MINISTER TO RECOMMEND TO THE NATIONAL EXECUTIVE COUNCIL TO ENDORSE AN APPLICATION FOR A LARGE SCALE CONVERSION OF FOREST TO ROAD.
281. REJECTION BY BOARD OF AN APPLICATION FOR A LARGE SCALE ROAD DEVELOPMENT PROJECT.
282. MINISTER FOR FORESTS REFERRAL OF BOARD RECOMMENDATION FOR APPROVAL OF AN APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE ROAD DEVELOPMENT PROJECT TO NATIONAL EXECUTIVE COUNCIL.
283. DIRECTION OF NATIONAL EXECUTIVE COUNCIL TO THE MINISTER FOR FORESTS TO ENDORSE OR REJECT AN APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE ROAD DEVELOPMENT PROJECT.
284. MINISTER’S ADVICE TO THE BOARD OF NATIONAL EXECUTIVE COUNCILS DIRECTION TO THE MINISTER FOR FORESTS TO ENDORSE OR REJECT THE RECOMMENDATION OF THE BOARD OF THE FOREST AUTHORITY TO APPROVE AN APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE ROAD DEVELOPMENT PROJECT.
285. BOARD’S ADVICE TO APPLICANT AND PROVINCIAL FOREST MANAGEMENT COMMITTEE OF DECISION OF NATIONAL EXECUTIVE COUNCIL DIRECTING THE MINISTER TO REJECT AN APPLICATION FOR AN AUTHORITY TO CARRY OUT A LARGE SCALE ROAD DEVELOPMENT PROJECT.
286. AUTHORITY TO CARRY OUT A LARGE SCALE ROAD DEVELOPMENT PROJECT.
287. FOREST CLEARING AUTHORITY.
288. VERIFICATION OF OWNERSHIP AND CONSENT OF LAND OWNERS.
289. SALES AND PURCHASE AGREEMENT.
290. APPLICATION TO INSPECT AND MAKE COPIES OF A SUMMARY OF MATTERS ASSOCIATED WITH AN APPLICATION.
(2) The fee payable on making an application shall be as specified in Schedule 3.
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