Forestry Rights (Amendment) Act 2001

i Forestry Rights (Amendment) Act 2001 Act No. 8/2001 TABLE OF PROVISIONS Section Page PART 1—PRELIMINARY 1 1. Purposes 1 2. Commencement 2 3. Principal Act 2 PART 2—CARBON SEQUESTRATION RIGHTS 3 4. Definitions 3 5. Carbon sequestration right part of forest property right 3 6. Carbon rights agreements 4 12. Carbon rights agreements 4 13. Notification to Department Head 4 14. Carbon rights agreement not forest property agreement or interest in land 5 15. Existing forest property agreements include carbon sequestration right 5 PART 3—NOTIFICATION OF FOREST PROPERTY AGREEMENTS 7 7. Definitions 7 8. Notification required in certain circumstances 8 9. Form of notification 8 7A. Form of notification 8 ═══════════════ ENDNOTES 10 -- 1 of 11 -- 1 Forestry Rights (Amendment) Act 2001 † [Assented to 8 May 2001] The Parliament of Victoria enacts as follows: PART 1—PRELIMINARY 1. Purposes The main purposes of this Act are— (a) to amend the Forestry Rights Act 1996 to provide for rights to the commercial exploitation of carbon sequestered by trees; and Victoria No. 8 of 2001 -- 2 of 11 -- Act No. 8/2001 Forestry Rights (Amendment) Act 2001 2 (b) to provide for notification to holders of registered mortgages or charges to be given in relation to certain forest property agreements. 2. Commencement This Act comes into operation on the day after the day on which it receives the Royal Assent. 3. Principal Act In this Act, the Forestry Rights Act 1996 is called the Principal Act. _______________ s. 2 See: Act No. 29/1996 and amending Act No. 85/1998. LawToday: www.dms. dpc.vic. gov.au -- 3 of 11 -- Act No. 8/2001 Forestry Rights (Amendment) Act 2001 3 PART 2—CARBON SEQUESTRATION RIGHTS 4. Definitions (1) In section 3 of the Principal Act, insert the following definitions— ' "carbon rights agreement" means an agreement entered into under section 12; "carbon sequestration right" means a right to commercially exploit carbon sequestered by trees; "Department Head" means the Department Head (within the meaning of the Public Sector Management and Employment Act 1998) of the Department of Natural Resources and Environment;'. (2) In section 3 of the Principal Act, in the definition of "forest property" after paragraph (b) insert— "; and (c) carbon sequestered by trees;". (3) At the end of section 3 of the Principal Act insert— "(2) In this Act, a reference to "carbon sequestered by trees" is a reference to the process by which carbon is sequestered in trees by the absorption by trees of carbon dioxide from the atmosphere.". 5. Carbon sequestration right part of forest property right (1) In section 5 of the Principal Act, after paragraph (a) insert— "(ab) to grant to that person a carbon sequestration right in relation to forest property on that land; and". s. 4 -- 4 of 11 -- Act No. 8/2001 Forestry Rights (Amendment) Act 2001 4 (2) In section 5(c) of the Principal Act, after sub- paragraph (ii) insert— "; and (iii) to monitor and measure carbon sequestered by trees on that land.". 6. Carbon rights agreements After section 11 of the Principal Act insert— "12. Carbon rights agreements (1) A forest property owner may enter into an agreement with a person to grant the forest property owner's carbon sequestration right to that person. (2) A carbon rights agreement must— (a) be in writing; and (b) specify the following— (i) the parties to the agreement; and (ii) the land to which the agreement applies; and (iii) the rights and duties of the parties to the agreement; and (iv) the date or circumstances under which the agreement terminates. (3) A carbon rights agreement may specify any other matters consistent with the matters set out in sub-section (2) to which the parties agree. 13. Notification to Department Head (1) A person who is granted a carbon sequestration right under a carbon rights s. 6 s. 6 -- 5 of 11 -- Act No. 8/2001 Forestry Rights (Amendment) Act 2001 5 agreement must provide the following details to the Department Head in writing within 28 days after the carbon rights agreement is entered into— (a) notification that a carbon rights agreement has been entered into; and (b) the land to which that agreement applies; and (c) the area of land in hectares to which that agreement applies. Penalty: 1 penalty unit. (2) A failure to notify the Department Head under sub-section (1) does not affect the validity of any carbon rights agreement. 14. Carbon rights agreement not forest property agreement or interest in land (1) A carbon rights agreement is not a forest property agreement for the purposes of this Act. (2) A carbon rights agreement is deemed not to be an interest in land. 15. Existing forest property agreements include carbon sequestration right (1) A forest property right granted under a forest property agreement in force immediately before the commencement of the Forestry Rights (Amendment) Act 2001 is deemed to include a carbon sequestration right in relation to the forest property on the land to which that agreement relates. (2) A carbon sequestration right deemed by sub- section (1) to be included in a forest property right granted under a forest property agreement may be dealt with in accordance -- 6 of 11 -- Act No. 8/2001 Forestry Rights (Amendment) Act 2001 6 with this Act as amended by the Forestry Rights (Amendment) Act 2001. (3) Sub-section (1) does not apply to any forest property agreement in force immediately before the commencement of the Forestry Rights (Amendment) Act 2001 if that agreement expressly provides that the forest property right granted does not include any carbon sequestration right.". _______________ s. 6 -- 7 of 11 -- Act No. 8/2001 Forestry Rights (Amendment) Act 2001 7 PART 3—NOTIFICATION OF FOREST PROPERTY AGREEMENTS 7. Definitions In section 3 of the Principal Act, insert the following definitions— ' "holder of a registered mortgage or charge" means— (a) a person or body that is a mortgagee under a registered instrument of mortgage; or (b) a person or body that is entitled to the benefit of a charge under a registered charge; "registered mortgage or charge", in relation to land which is subject to a forest property agreement, means— (a) an instrument of mortgage— (i) recorded on the folio of the Register within the meaning of the Transfer of Land Act 1958 relating to that land; or (ii) registered under the Property Law Act 1958; (b) a charge— (i) recorded on the folio of the Register within the meaning of the Transfer of Land Act 1958 relating to that land; or (ii) registered under the Property Law Act 1958;'. s. 7 -- 8 of 11 -- Act No. 8/2001 Forestry Rights (Amendment) Act 2001 8 8. Notification required in certain circumstances (1) At the end of section 5 of the Principal Act insert— "(2) An owner of land must not enter into a forest property agreement under this section if the agreement relates to land which is subject to a registered mortgage or charge unless at least 14 days before the agreement is entered into, the owner of the land has notified the holder of the registered mortgage or charge that it is proposed to enter into the agreement.". (2) At the end of section 7 of the Principal Act insert— "(2) If the forest property agreement to be amended relates to land which is subject to a registered mortgage or charge, the parties to that agreement must not amend that agreement unless at least 14 days before the agreement is amended, the owner of the land has notified the holder of the registered mortgage or charge that it is proposed to amend the agreement.". 9. Form of notification After section 7 of the Principal Act insert— "7A. Form of notification A notice given under section 5(2) or section 7(2) must be in writing and must— (a) be served on the holder of the registered mortgage or charge personally or by registered post; and s. 8 -- 9 of 11 -- Act No. 8/2001 Forestry Rights (Amendment) Act 2001 9 (b) include a copy of— (i) the forest property agreement to be entered into; or (ii) in the case of an amendment of an agreement, a copy of that amendment; and (c) state that it is a requirement of the Act that at least 14 days notice in writing is given to the holder of a registered mortgage or charge before a forest property agreement is entered into or amended.". ═══════════════ s. 9 -- 10 of 11 -- Act No. 8/2001 Forestry Rights (Amendment) Act 2001 10 ENDNOTES † Minister's second reading speech— Legislative Assembly: 2 November 2000 Legislative Council: 3 April 2001 The long title for the Bill for this Act was "to amend the Forestry Rights Act 1996 to provide for rights to exploit carbon sequestered by trees, to require notification to be given for certain agreements under that Act and for other purposes." 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