YaoRun Wood Ltd., a company that buys raw Canadian logs for export to China, has had their logs seized by the provincial government for a second time in under two months for falling behind on stumpage payments.
On November 13, compliance and enforcement officers made an initial seizure of 175 loads at the Yaorun logyard on the corner of Keith Ave. and Kenney St.
Then, after further reviewing the file, the government took further action and seized all of the logs on Nov. 22.
The total seized amount is 36,000 cubic metres contained in 800 piles valued at approximately $2.3 million.
Back in late October, Yaorun had averted another such situation by paying back $586,000 it owed in overdue stumpage payments to the province, after which it continued cutting and stacking logs in preparation for shipment.
“At that time, a payment plan was established for additional stumpage fees that were coming due,” said Ministry of Forests, Lands and Natural Resource public affairs officer Brennan Clarke.
Yaorun currently owes $150,000 in fees to the provincial government, said Clarke on Nov. 26.
“The province has seized the entire yard in an effort to preserve its position and to promote compliance,” Clarke continued. “The forfeiture will be lifted once the company repays the outstanding fees.”
Yaorun has also fallen behind once again on its $10,000 lease payments for renting the property for their log sorting yard on Keith Ave.
The city confirmed that Yaorun has not yet paid its November rent.
Previously it fell behind by three instalments which they paid back by the end of October at the same time as they cleared up their previous depts with the province.
According to a ministry release “No additional logs have come into the yard or left the yard,” since last month. “Stumpage fees on various timber sale licenses come due at different times. When the $586,000 was paid off Yaorun made a commitment to pay other fees as they became due, and didn’t.”
Yaorun operations manager Xinchen Song said last month that the company cannot continue work at their yard when seizure notices are posted.
Yaorun started their its in Terrace in January and operates other log yards in northwestern B.C.
