Timber Firms Sue Canadian Province

Two of British Columbia’s largest timber companies are suing the province for at least $239 million.

MacMillan Bloedel said Thursday it is seeking at least $200 million from the provincial government for raising the royalties it must pay on its timber licenses. The licenses are long-term agreements to cut timber on public land.

Don McMullan, TimberWest Forest Ltd. vice president, said his company wants $39 million in compensation for the loss of property value that will result from the increased royalties.

Legislative changes made to British Columbia’s forest act earlier this year will boost the royalty on timber licenses to 100 percent of stumpage rates over the next six years, MacMillan Bloedel Senior Vice President John Howard said. The royalty rate on timber licenses has historically been 40 percent to 43 percent of stumpage rates, Howard said.

Stumpage is the estimated value of standing timber.