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Interior Appraisal Manual Effective July 1, 2019 Cost Base Of: 2017

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Interior Appraisal Manual Effective July 1, 2019 Cost Base Of: 2017 TIMBER PRICING BRANCH Interior Appraisal Manual Effective July 1, 2019 Cost Base of: 2017 Includes Amendments Effective Date Amendment No. 1 November 1, 2019 This manual is intended for the use of individuals or companies when conducting business with the British Columbia Government. Permission is granted to reproduce it for such purposes. This manual and related documentation and publications are protected under the Federal Copyright Act. They may not be reproduced for sale or for other purposes without the express written permission of the Province of British Columbia. Interior Appraisal Manual Ministry of FLNRORD New 2019 Interior Appraisal Manual Highlights Section or Description Appendix 1.1 • New definition for camp “food premises”. 1.3 • Updated Point of Appraisal (POA) policy. Because of the changes, the Craigellachie and Canal Flats POAs are removed from use in appraisals. • Removed the Squamish POA under the previous policy rules. 1.4.4 • Updated the Transportation Cost (TC) equation to gross up the specified operation transportation costs using the average low-grade factor in table 4-8. 1.5.1 • New requirement to provide a description of leave trees with an appraisal data submission. 2.2.2 • New changed circumstance for cutting authorities with changes in reserve areas or reserve tree characteristics from those identified in the original appraisal (note that reserve tree characteristics is effective May 1, 2020). 3.1 • Updated Estimated Winning Bid equation with new coefficients and variables. 3.2 • Updated Consumer Price Index Factor. • Updated DECAY variable to only apply to scale-based cutting authorities. • Removed the VPH variable from the EWB equation. • Updated CYCLE time variable with new default roads speeds for on- block roads. • Updated PC (PARTIAL CUT) variable for cutting authorities with 20-30 partial cut retention levels. • Updated ISOLATED variable to use a straight-line distance from the centre of the cutting authority to the closest support centre. July 1, 2019 i Timber Pricing Branch Highlights Section or Description Appendix 3.2 • Updated CAMP variable definition to remove the requirement for a full- time staff and clarify other requirements. • New variable for OTHER_ATTACK to account for the effects of spruce beetle and other beetle attack. • Updated the following tables: LRF (lumber recovery factor) add-ons, Zonal Coniferous volume & District Average Number of Bidders. 3.3.1-3.3.6 • Updated specified operations cost estimates. 3.4 • Updated Final Estimated Winning Bid equation to include a Low-Grade (LG) percent adjustment to the Total Specified Operation amount. 4.2.1 • Updated Forest Management Administration TOA cost estimate equation. • New Table for Regional Constants and minimum and maximum amounts. 4.3.2 • Updated subgrade construction cost estimate equations. • Updated snow and ice road cost estimate. 4.3.3 • Updated tabular culvert cost estimates. • Updated bridge cost estimates for new bridge installations. • New bridge cost estimates for used bridge installations. 4.3.4 • Updated tabular stabilizing material equations. 4.3.5 • Updated cattle guard, fence and pipeline cost estimates. 4.4 • Updated Road Management cost estimates. 4.5 • Updated Cruise Adjustment Factor Table. • Updated Basic & Enhanced Silviculture Cost Estimates. ii July 1, 2019 Interior Appraisal Manual Ministry of FLNRORD Section or Description Appendix 4.6 • Low grade factors now applied to Specified Operations. • Updated low grade factors for cutting authorities with less than 35% MPB damage. • Updated Return to Forest Management, Market Logger Cost and average CPI for the cost base. 5.1.1 • Updated BCTS upset rate calculation policy. BCTS Timber Sale Managers must use the greater of VCU or the indicated upset (MPS70). 6.4.3 • Updated Cruise Based Salvage Cutting Authorities stumpage rate formula and constants. • New Low-grade adjustment to transportation specified operations. 6.6 • Updated Area based stumpage rates. • Removed the reference to sawlog rates in Table 6-7 for timber harvested under the expired pre-harvest waste program. Appendix 1 • Updated equipment and labour rates. July 1, 2019 iii Interior Appraisal Manual Ministry of FLNRORD Table of Contents 1 Introduction ........................................................................ 1-1 1.1 Definitions ......................................................................................................... 1-2 1.2 Terms of Reference ............................................................................................ 1-8 Responsibility for Stumpage Determination ....................................... 1-8 Stumpage Appraisal Parameters .......................................................... 1-8 Minimum Stumpage Rate .................................................................... 1-9 Numbering and Calculation ................................................................. 1-9 1.3 Point of Appraisal (POA) ................................................................................ 1-10 1.4 Fully Appraised Cutting Authority Area ......................................................... 1-11 Cutblocks ........................................................................................... 1-11 Maximum Area .................................................................................. 1-11 Cruise Based/Scale Based ................................................................. 1-11 Transportation Route ......................................................................... 1-11 Harvest Method ................................................................................. 1-13 1.5 Appraisal Data Submission Requirements ...................................................... 1-14 Cruise Information ............................................................................. 1-14 Appraisal Data Forms ........................................................................ 1-15 Appraisal Map ................................................................................... 1-16 Documentation .................................................................................. 1-16 2 Appraisals, Reappraisals and Stumpage Adjustments .. 2-1 2.1 Appraisals .......................................................................................................... 2-2 Appraisal Data Submission Process .................................................... 2-2 2.2 Reappraisals ....................................................................................................... 2-3 Reappraisal Data Submissions ............................................................ 2-3 Changed Circumstances ...................................................................... 2-3 Suddenly and Severely Damaged Timber ........................................... 2-6 Minister’s Direction ............................................................................. 2-6 Insect Damage ..................................................................................... 2-6 Compilation Version ........................................................................... 2-8 July 1, 2019 i Timber Pricing Branch Table of Contents 2.3 Stumpage Adjustments ...................................................................................... 2-9 2.4 Correctable Errors ............................................................................................ 2-10 2.5 Redetermination of Stumpage Rate by Agreement ......................................... 2-11 2.6 Post-Harvest Appraisal Reconciliation ............................................................ 2-12 3 Final Estimated Winning Bid ........................................... 3-1 3.1 Estimated Winning Bid Equation ...................................................................... 3-2 3.2 Estimated Winning Bid Variables ..................................................................... 3-3 Consumer Price Index Factor (CPIF) .................................................. 3-3 Real Stand Selling Price (RSP) ........................................................... 3-3 Cedar (CE) ........................................................................................... 3-4 Hemlock and Balsam (HE and BA) .................................................... 3-4 Larch and Yellow Pine (LA and YE) .................................................. 3-4 Dry Belt Fir and Yellow Pine (DRY_BELT and FIYE) ..................... 3-4 Cable Harvest Method (CABLE) ........................................................ 3-4 Average Conifer Volume (VOL) ......................................................... 3-5 Conifer Decay (DECAY) .................................................................... 3-5 Fire Damage (FIRE) ............................................................................ 3-5 Volume per Tree (VPT) ....................................................................... 3-6 Conifer Volume Per Hectare ............................................................... 3-6 Cycle Time (CYCLE) .......................................................................... 3-6 Fort Nelson – Peace Selling Price Zone (ZONE_9) ............................ 3-8 Deciduous Volume (DECID) .............................................................. 3-8 Cruise Based Cutting Authority with <35% MPB (CB) ..................... 3-8 Cruise Based Cutting Authority with >35% MPB (CB) ..................... 3-8 Latest Auction Year (AUC2018) ......................................................... 3-8
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