Scaling agreements by onetwothree4

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									Forest Management Directives and Procedures

05 Forest Licensing, Wood Allocation and Measurement                                           FOR 05 05 22
05 Wood Measurement                                                                                Procedure


SCALING AGREEMENTS

Approval date: September 20, 2005                       Review date: March, 2014
Contact: Wood Allocation and Measurement Section, Industry Relations Branch - Forests Division



Scaling Agreements are legal documents authorizing the measurement of Crown forest resources at a location
other than the place of harvest and/or by other than Ministry scalers, for the determination of volumes and
values. Scaling Agreements are used by the Ministry to establish partnerships with industry for the
measurement and reporting of scaling data.

Scaling Agreements are reviewed on a regular basis to maximize the use of new technology, increase
efficiency, and accommodate changes to industry operating and reporting methods. Different types of Scaling
Agreements have been developed and implemented by the Ministry to accommodate the various conditions,
relating to the measurement and reporting of Crown forest resources, that exist within the Province.

Conditions for Scaling Agreements

The elements that must be covered in all Scaling Agreements are:

   •   All Crown forest resources must be measured in accordance with the latest edition of the Scaling
       Manual.

   •   Define tally sheets and forms to be used.

   •   Detail the manner in which scaling tallies and other records are to be completed.

   •   Detail the schedule and method on how scaling records shall be submitted to the Ministry (electronic
       data transfer or paper copy).

   •   Detail the retention schedule and type of storage for scaling records such as: vouchers, tally sheets,
       summaries, production records, payroll records, inventories, etc., that will be made available to the
       Ministry.

   •   That the Company will not involve the Ministry in any labour dispute between the Company, its
       employees, contractors, and/or the Union.

   •   The Agreement will include an effective date and termination date.

   •   The Agreement will include a termination clause that permits either party to exit the Agreement with
       adequate notice prior to the termination date.

   •   The Agreement will specify what records will be made available to the Ministry should the Crown forest
       resources be destroyed or rendered otherwise unfit for measurement so that Crown charges may be
       levied.



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    •     The Agreement will specify the Ministry’s authority to inspect, audit, copy, and carry away, any records
          pertaining to the movement, measurement, and reporting of forest resources harvested.

    •     The Agreement will specify that the Ministry will be notified of any changes to previously submitted
          scaling records (eg. changes to final destination).

    •     The Agreement will state the provisions by which the Ministry and Company will mutually cooperate in
          the gathering of data for scaling factors.

    •     The Agreement will specify that the Agreement or any part thereof shall not be contracted or assigned.

    •     Any deviation from the Agreement must be reported to the Ministry within a time frame specified in the
          Agreement.

    •     The Agreement will specify that no provision of the Agreement shall be deemed to waive, modify or
          abridge any provision of the Act, the Regulations thereunder, or any other Provincial, Federal, or
          Municipal Legislation, Regulation or in any licence or any agreement made with the Ministry.

    •     If the Agreement holder is also the holder of a forest resource licence, the Scaling Agreement may also
          include a provision for the licensee to scale their own construction timber.

Scaling Agreements with companies that have electronic data transfer systems, must include the following
conditions to ensure the Crown's interests are protected regarding the electronic collection, retention and
transfer of scaling data:

1. Where the Company employs a computer program to process scaling data contained in records of
   measurement of Crown forest resources and provides or intends to provide scaling data electronically to
   the Crown, the Company agrees, without charge:

    i)    to ensure that all data on the records of measurement of Crown forest resources compiled by the
          Company are processed into the Company’s computer program to produce and transfer data
          electronically (as per the schedule stated here) eg. All data must be transferred to Sault Ste. Marie by
          the 15th day of the month following the month in which measurement has occurred.

    ii)   to transfer scaling data electronically in a format that is compatible with the Crown’s Electronic Data
          Transfer specifications as set out by the Provincial Measurement Unit;

    iii) to not change computer equipment or software except upon the approval of the Crown;

    iv) that the Crown may from time to time, test, review and examine the part or parts of the Company’s
        computer program that produces or is to produce such electronically transferred data and agrees to
        provide the Crown with full access to it’s machines, equipment and systems to make such tests,
        reviews or examinations and also agrees, at the request of the Crown, to provide all such assistance
        and qualified operators as may be necessary to enable the Crown to effectively perform such tests,
        reviews or examinations, and;

    v) to provide the Crown with a monthly report, in a format approved by the Crown for all scaling data
       electronically transferred to the Crown on a timely basis as specified and agreed upon between the
       Company and the Crown.


2. The Company agrees that the Crown and the agents, employees and servants of the Crown shall not be
   liable for any claim, demand, action, cause of action, liability or damages arising out of injury to the
   employees of the Company while the Crown makes the tests, reviews or examinations referred to in clause



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    (iv) of subparagraph (1) unless such injury or damage is caused by negligence of the agents, employees or
    servants of the Crown in which case such liability shall be limited to physical damage caused directly by
    such negligence and shall not include liability for consequential, indirect or special damages.

3. The Crown agrees to receive, keep in confidence, unless compelled otherwise by law or operation of law,
   not to disclose or permit disclosure except for the purpose of this Agreement, all drawings, diagrams,
   specifications, coding systems, design details, operating characteristics and other materials or things
   furnished by the Company and relating to the use or service of the part or parts of the Company’s
   computer program that produces or is to produce the electronically transferred data referred to in this
   paragraph.

4. The Company agrees that the Crown may have the free use of all electronically transferred data including
   their contents, as well as all materials referred to in subparagraph (1) for all such purposes as may be
   reasonably related to or connected with this Agreement. The Crown shall not be responsible for the
   disclosure, inadvertent or otherwise, of any material furnished by the Company to the Crown that is publicly
   available.

5. The Company agrees to use due care in processing the data compiled in records or measurement of
   Crown forest resources and agrees, at its own expense, to correct any errors which are due to the
   malfunction of the Company’s machines or equipment or the failure of the Company’s operators.

6. The Company agrees that the Crown may, with a view towards eliminating errors, reasonably prescribe
   procedures from time to time to be used by the Company’s operators in processing data compiled in
   records of measurement of Crown forest resources to produce the electronically transferred data referred
   to in this paragraph and the Company agrees to use such prescribed procedures.

Mass Scaling Agreement

A Mass Scaling Agreement authorizes the measurement of Crown forest resources by means of a weigh scale
located at a mill or other central location. Since the forest resources must be moved from the place of
harvesting prior to measurement, the licensee must have first obtained an “Authority to Haul Unscaled Crown
Forest Resources”.

The following minimum conditions must be in a Mass Scaling Agreement:

    •   The weighing device (scale) must be certified by the Measurement Canada. A copy of the certification
        must be posted in the weigh scale building.

    •   The measuring units must be kilograms.

    •   The weighing site must be in possession of an “Authority to Haul Unscaled Crown Forest Resources”
        for each licensee/licence measuring at that site. The Company must advise the Ministry of
        unauthorized deliveries of Crown forest resources.

    •   The weigh scale must be of adequate size to accommodate the largest load and vehicle to be weighed.

    •   The location of the weigh scale must be clearly specified.

    •   Only Ministry approved, serially numbered mass scale slips will be used.

    •   In the event of weigh scale failure, the Agreement should specify alternate scaling arrangements to be
        implemented.

    •   The care and maintenance responsibilities of all parties relative to the weighing device and site shall be
        stated.



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   •   Define scaling equipment that is to be used.

   •   The Ministry assumes no responsibility or liability for any death or damage caused to any persons or
       equipment using or operating Ministry owned weigh scale equipment.

Domestic Scaling Agreement

Domestic Scaling Agreement authorizes the scaling of Crown forest resources for Ministry purposes by
Company employed, licensed, and approved scalers at the harvest site.

The following minimum conditions must be included in a Domestic Scaling Agreement:

   •   Forest resources shall be available and subject to check scale by Ministry check scalers.

   •   A list of company scalers approved to work at the harvest site.

Central Scaling Agreement

A Central Scaling Agreement authorizes the measurement of Crown forest resources in a mill yard or other
Ministry approved concentration point, by licensed, approved Ministry or Company scalers. The Central
Scaling Agreement may also be applied for the management of wood flow and related records through a
concentration point or merchandizing yard.

The following minimum conditions must be included in a Central Scaling Agreement:

   •   The central measuring site must be in possession of an “Authority to Haul Unscaled Crown Forest
       Resources” for each licensee/licence measuring at that site. The Company must advise the Ministry of
       unauthorized deliveries of Crown forest resources.

   •   The Company must provide a plan, approved by the Ministry, detailing the location of the mill yard or
       designated concentration point, and those areas where unscaled forest resources will be piled for
       scaling.

   •   A list of scalers approved to work at the measuring site must be provided.

   •   Forest resources shall be available and subject to check scale by Ministry check scalers.

Container Scaling Agreement

A Container Scaling Agreement authorizes the use of a net merchantable volume to be applied to designated
containers. The net volumes detailed in the agreement are determined by sampling conducted in accordance
with the Sampling Standards Manual. The Agreement between the Ministry and the licensee may also include
a third party should that party have obligations under the Agreement (railway, receiving mill).

The following minimum conditions must be included in a Container Scaling Agreement:

   •   The licensee and receiving mill must be in possession of an “Authority to Haul Unscaled Crown Forest
       Resources”.

   •   The Agreement will detail the reporting requirements for measurement (counting), shipping, and
       receiving of containers.

   •   The Agreement must specify the date the Crown forest resources are considered to be scaled. This
       may be the date the container was loaded, shipped, or received.



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Gang Scaling Agreement

A Gang Scaling Agreement permits the scaling of Crown forest resources by Ministry scalers for both company
and Ministry purposes.

The following minimum conditions must be included in a Gang Scaling Agreement:

    •   The Agreement must specify what scaling data and documents the Ministry will supply to the company.

    •   The fee charged by the Ministry for scaling data must be specified in the Agreement. See FOR 05 05
        43 Scaling Costs.

Scaling Records Agreement

A Scaling Records Agreement is an agreement between the Ministry and a forest resources processing facility
that receives Crown forest resources where the forest resources is not measured at that facility. These are
usually small facilities that receive Crown forest resources that have been measured before being delivered.

The primary need for this Agreement is to provide the Ministry with free access to all records pertaining to
deliveries of both Crown and private wood.

 Responsible Party                                        Responsibility

Regional                  1. Develops and negotiates scaling agreements with forest resource
Measurement                  licensees and forest resource processing facilities. As part of this
Coordinator                  process, continually pursues new and improved scaling arrangements
                             with our forest industry partners.
                          2. Signs the Agreement on behalf of the Minister (Delegation of Authority)

                          Distribution:
                              Original copy to licensee/forest resource facility owner
                              Original copy to Regional Measurement Coordinator
                              Photocopy to Wood Measurement Officer
                              Photocopies to appropriate District/Area offices




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