A perpetual tree farm licence of the taxpayer was replaced by a 25-year licence as required by a new statutory regime. Shortly thereafter, the taxpayer disposed of the replacement licence.
Sharlow J.A. declined to follow an obiter dictum in the Kettle River case that suggested that in determining whether a timber cutting right is an "original right" for purposes of (b) of the definition of timber resource property, the conditions imposed by subparagraph (a)(ii) were retained, i.e., in this context, the original right must have been renewable rather than perpetual. Accordingly, the replacement licence of the taxpayer qualified as a timber resource property.