Timber companies pay a " stumpage " fee for the right to harvest those logs, but U . S . producers contend those charges are set so artificially low as to constitute a lucrative subsidy.
42.
They are also concerned that Canada's " stumpage " system for licensing lumber cutting on provincial land _ which often takes into account social and environmental policy, not just market rates _ is unfair.
43.
A simplified net present value method where the value of the stock is obtained by multiplying the current volume of standing timber by its stumpage price, assuming the rate of discount is equal to the natural growth rate.
44.
The company was granted lands, among others, in the Restigouche River, the Miramichi River and the Tobique River watersheds, and it maintained a staff in Saint John, New Brunswick to oversee stumpage on its lands.
45.
In particular, the U . S . lumber industry believes the stumpage fees that Canada's provincial governments charge for harvesting timber are set to protect the companies rather than to bring a fair market price for the product.
46.
The Bush administration imposed the tariffs mainly to offset the benefits of what it says are subsidies to Canadian sawmills, in the form of low " stumpage " fees paid to cut down trees in government-owned forests.
47.
U . S . lumber producers allege Canada charges unfairly low " stumpage " fees to companies that log on government lands, allowing Canadian firms to sell lumber in the United States for less than the cost of production.
48.
These conflicts center on endangered species protection, logging of old-growth forests, intensive clear cut logging, undervalued stumpage fees, mining operations and mining claim laws, and logging / mining access road-building within National Forests.
49.
Most of the new 29-percent duty is meant to offset subsidies that American officials say Canadian mills receive, notably through the very low fees provincial governments charge for the right to harvest trees on public land, known as stumpage.
50.
But the panel supported Canadian claims that the United States had used the wrong methodology when it came to working out how much benefit Canada's companies get from the stumpage system _ and so had miscalculated the amount of duty to impose.
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