Gap Filler Detail

1961 – National Archives of Canada

S10-136-80/5 TD 1276 (CCE/Prop)

20 October, 1961

Deputy Minister,
Department of Transport
Ottawa, Ontario

Dear Sir:

Re: Gap Filler Sites - Eastern Canada
Your files:26-10-7, 1653-788 (RE)

Please refer to your letters of 27 September and 4 August, 1961, concerning the payment of charges levied by paper and lumber companies and provincial authorities as a result of our clearing certain properties to be used as Gap Filler sites.

This department will assume responsibility for the payment of compensation, based on the approved Provincial rates for timber and pulpwood, as it has in the past in land acquisition programmes of this nature. During recent visits to your Montreal and Toronto real estate offices by two members of the RCAF staff engaged on the Gap Filler project, the question of stumpage charges were discussed with your managers and officials of the companies and Provincial departments involved. I understand that the areas in which our installations are to be constructed include the following:

1. Provincial Crown Lands - under license to a timber or paper company - we will be charged triple stumpage dues covering merchantable timber and an allowance for loss of future growth. Using La Tuque Gap Filler site as an example, the charges will be $2.94 per 100 cu ft (for spruce and balsam) to Province plus $5.88 per 100 cu ft (for loss of future growth) to Consolidated Paper Corporations;

2. Provincial Crown Lands - no timber or pulpwood license - prevailing stumpage charges for the species of trees on the parcel of land are to be paid to the Province;

3. Company-owned lands - triple stumpage dues will be levied by the company unless cut timber is taken over by or remains the property of the company. The Crown's use of the parcel of land will be covered by a lease.

The specifications for clearing of all the sites provides for the sale or use of the timber and pulpwood by the contractor which will result in a reduced contract price. This factor will vary with site locations and the expense involved in transporting the timber or pulpwood to the nearest commercial plant.

I would be pleased if you would ensure that your regional managers understand their part in these transactions. You will agree that information as to scaling, stumpage dues, sale of merchantable timber to the companies, description of what is considered merchantable timber and place of delivery of such timber must come to us from your field personnel before our contractor goes on the site. The questions to be settled in respect of property at these relatively small sites are numerous but as construction is to commence this Fall on seven of the installations in Quebec and the Maritimes and fourteen in Ontario the usual co-operation of your Ottawa and regional staffs is essential and will be appreciated.

Yours sincerely,

(E B Armstrong)
Deputy Minister

KA Conlin, F/L /MLM
CCE/Prop-3
19 oct 61
6-6909