Licence No. 542245

Approved by Order-in-Council O.C. 891/97
dated April 24, 1997
And as amended as set out in Appendix “G”
And as most recently amended by Minister’s Approval
Dated September 10, 2020

Subject to the Crown Forest Sustainability Act and the regulations thereto, and the terms and conditions hereinafter set forth, a licence is granted to Boundary Waters Forest Management Corp. (herein called “the Company”) located at R.R. #2 Site 210-10, Fort Frances, Ontario, P9A 3M3 to harvest the following species of forest resources from the Licence Area in the Boundary Waters Forest, which Licence Area is described in Appendix “A” hereto, for the term of this licence; and the Company is required to carry out renewal and maintenance activities in the Licence Area, on behalf of the Crown, which are necessary to provide for the sustainability of the Crown forest.

Tree species

All species

Terms and conditions

This Licence has been executed and delivered by the Minister of Natural Resources and Forestry this 10th day of September, 2020.

Original Signed by the Honourable John Yakabuski Minister of Natural Resources and Forestry for the Province of Ontario.

Appendix “A”

Legal description of licence area

All that parcel or tract of land in the Territorial Districts of Rainy River and Kenora as identified on the Plan map dated the 31st of March, 2020, prepared by the Ministry of Natural Resources and Forestry, a print of which said map is attached and forms part of this Appendix.

Saving and excepting thereout and therefrom all those lands which have been alienated from or not vested in th Crown, all areas regulated under the Provincial Parks and Conservation Reserves Act, 2006, all Ministry of Transportation lands registered by Crown Land Plan, lands under the Mining Lease where the Minister does not have the right to conduct forest management and all First Nations and other Federal lands.

Appendix “B”

[Intentionally Deleted]

Appendix “C”

Forest renewal trust

Eligible silviculture work

The cost of eligible silviculture work that can be claimed from the Forest Renewal Trust includes direct employee costs and contractor costs associated with:

  1. Natural Regeneration
    1. Harvest and Regeneration Option
    2. Modified Harvest Cutting
  2. Tree Marking
  3. Artificial Regeneration
    1. Tree Planting - bareroot, container, cuttings and other
    2. Seeding - direct and with site preparation (including cost of seed and application)
  4. Site Preparation
    1. Mechanical
    2. Chemical (including cost of chemical and application)
    3. Slash Piling (chipper and debris)
    4. Prescribed Burn
    5. Scarification (natural)
  5. Tending
    1. Cleaning
    2. Spacing
    3. Pre-Commercial Thinning
    4.  Improvement Cut (uneven-aged & even-aged)
  6. Renewal Support
    1. Cone Collection and Transport
    2. Seed Extraction, Storage, Testing and Transport
    3. Tree Improvement
    4. Stock Purchase and Delivery (bareroot, container, cuttings and other)
  7. Silviculture Surveys and Associated Information
    1. Surveys,e.g., Free to Grow, establishment, performance, not sufficiently regenerated etc.
    2. Supplemental Aerial Photography
    3. Silviculture Planning and Reporting
  8. Other Eligible Silviculture  
    1. Associated Administrative Overhead based on 10% of the total ESW (pre-HST) claimed from the Forest Renewal Trust
    2. Silviculture Wages & Expenses
  9. And other such activities as identified by the Minister from time to time

Ineligible Expenses:

  1. The following activities or expenses are not eligible for reimbursement by the Forest Renewal Trust:
    1. Commercial Thinning
    2. Boundary marking

Appendix “D”

Minimum balances

Management Unit Account

Boundary Waters Forest: $4,775,400
(Licence no. 542245)

Transition funding total: $4,775,400

Note: Minimum balance is the balance as of March 31, 2021 and each March 31 thereafter. This balance equals the amount of the total transitional funding paid to the Account by the Crown to ensure that there are adequate funds to perform forest renewal on the unit. Where there are Subaccounts, the minimum balance for the Management Unit Account will be the total minimum balance required for all Subaccounts.

Appendix “E”

Wood supply commitments

The Company shall comply with the following wood supply commitments on the Boundary Waters Forest:

  1. To make wood fibre available to Norbord Inc. through a long term memorandum of agreement in accordance and consistent with Supply Agreement 536238 dated April 1, 2016. The Company must enter into and execute the memorandum of agreement within six months of the amendment of this licence for the inclusion of this condition. A copy of the executed memorandum of agreement must be provided by the Company to the Ministry upon request. Where Norbord Inc. is a shareholder in the Company and the parties agree that the shareholders’ agreement constitutes an MOA, a separate MOA is not required..

Appendix “F”

Special conditions

  1. The Company shall provide opportunities, through memoranda of agreement, for the operators identified in the Company’s Shareholder Agreement to conduct harvesting operations on the Boundary Waters Forest in accordance with an approved Forest Management Plan. The harvest areas to be made available to these operators will be determined through the forest management planning process and will be documented in the Forest Management Plan for the Boundary Waters Forest.

    A copy of the memoranda of agreement must be provided by the Company to the Ministry upon request.

Appendix “G”

Summary of Sustainable Forest Licence Amendments

PurposeMechanismApprovalOIC DateDate Licence AmendedReference
Amalgamation of Fort Frances with Flanders Wording updatedOrder in CouncilOIC 1155/2001May 9, 2001June 1, 2001FLANDE -1
Amalgamation of Fort Frances-Flanders with Highrock and wording updatedMinisters ApprovalN/AN/AJune 18, 2002CROSSR - 1
Withdrawal of OLL sites and update wording, removal of Section 5Order in CouncilOIC 1089/2003May 14, 2002May 21, 2003CROSSR - 2
Updated Compliance clauseMinister’s ApprovalN/AN/AMay 24, 2005N/A
Appendix “E” revised, NAVI, Ainsworth & Fibratech Supply Agreements, NAD 83 map, Extension of termOrder in Council531/2006March 1, 2006May 5, 2006CROSSR - 3
Removal of OLL sites #2Minister’s ApprovalN/AN/AJune 3, 2006CROSSR - 4
Changes to Appendix “E” to reflect supply to Manitou and Nickel Lake LumberPending   CROSSR - 5
Update Appendix “E” to reflect Atikokan Forest Products Supply AgreementAmendment did not proceedAmendment did not proceedAmendment did not proceedAmendment did not proceedCROSSR - 6
Removal of the Rainy River First Nation reserve lands; update Appendix “E”; update wording; name change from AbiBow to ResoluteMinister’s Approval  April 25, 2013CROSSR - 7
Withdraw area of Turtle River-White Otter Lake Provincial Park addition; amend Appendix “E” to reflect renewed Norbord supply agreement; update Appendix “A” date and SFL Plan map, admin changesMinister’s Approval  February 27, 2018CROSSR - 8
Extension of the licence term by 10 years to March 31, 2032.Order in CouncilO.C. 2326/2017December 13, 2017February 27, 2018 
Amalgamation of Crossroute Forest and Sapawe Forest; Update to paragraphs 2.1, 3.1 and 3.2; Update to Section 9; Update to Section 16; Section 23 update to new business plan; Update to Appendix “A” and Plan Map; Delete content of Appendix “B”; Appendix “D” combine minimum balance; Update Appendix “F”; Admin. updates.Minister’s Approval  September 10, 2020Crossr-9