Forestry Rights (Amendment) Act 2001 (Vic)

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

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ENDNOTES 10

i

Victoria

No. 8 of 2001

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

Forestry Rights (Amendment) Act 2001

s. 2 Act No. 8/2001

(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

See:

Act No.	In this Act, the Forestry Rights Act 1996 is
29/1996	called the Principal Act.
and amending Act No. 85/1998. LawToday: dpc.vic. gov.au

_______________
Forestry Rights (Amendment) Act 2001

Act No. 8/2001 s. 4

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".

Forestry Rights (Amendment) Act 2001

s. 6

s. 6 Act No. 8/2001

(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

Forestry Rights (Amendment) Act 2001

Act No. 8/2001

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

before the commencement of the Forestry

property agreement in force immediately 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

Forestry Rights (Amendment) Act 2001

s. 6 Act No. 8/2001

with this Act as amended by the Forestry

Rights (Amendment) Act 2001.

(3) Sub-section (1) does not apply to any forest

before the commencement of the Forestry

property agreement in force immediately agreement expressly provides that the forest property right granted does not include any carbon sequestration right.".

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Forestry Rights (Amendment) Act 2001

Act No. 8/2001 s. 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) Register within the meaning of the

recorded on the folio of the relating to that land; or

(ii) registered under the Property
Law Act 1958;

(b) a charge—

(i) Register within the meaning of the

recorded on the folio of the relating to that land; or

(ii) registered under the Property
Law Act 1958;'.

Forestry Rights (Amendment) Act 2001

s. 8 Act No. 8/2001

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

Forestry Rights (Amendment) Act 2001

Act No. 8/2001 s. 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.".

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Forestry Rights (Amendment) Act 2001

Endnotes Act No. 8/2001

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."