Common use of Base Case Clause in Contracts

Base Case. The industry is comprised of two sectors: (i) farmed finfish (Atlantic, chinook, and coho)and (ii) farmed shellfish (Pacific oysters, Manila clams, and Japanese scallops), which culture, process, and market finfish and shellfish into a variety of products. The most recent data indicates there are 68 aquaculture tenures involving four companies and one First Nation in the Plan Area. The number of operating sites is somewhat less than the number of tenures for various reasons, including unsuitable locations and standard fallowing practices. Of the actual operations, most produce salmon and several produce shellfish. Only two of the region’s aquaculture facilities are located in the northern portion of the Plan Area, although two additional farm applications are pending for relocation from the south to the north coast area. There is also considerable biophysical capability for future potential and the industry has expressed interest in a number of other areas within the Plan Area. Based on a recent study of the industry34 it is estimated that almost 50% of provincial, farmed salmon production come from Plan Area operations. Based on this share, Central Coast Plan Area operations are estimated to support an estimated 540 Person-Years (PYs) of employment (or an average of 10 per operation). Most of these jobs are year round, but only about 5% are permanent Plan Area residents.35 Therefore, most of the income earned by these workers would be spent in mid and northern Vancouver Island communities where the vast majority reside. Salmon farming production has increased significantly since its beginnings in the 1970’s, and in 1998, surpassed the wild salmon catch of 30,200 tonnes for the first time. During this period, there has also been much rationalization in the industry to improve efficiency in the face of lower salmon prices, cost issues, some environmentally inappropriate sites. Some First Nations have entered joint ventures for salmon farming while others remain opposed to this activity at this time.36 There are two salmon farms located near Klemtu that is joint ventured between the Kitasoo Nation and industry. Some First Nations are also providing contracted services to certain operations, and discussions are ongoing to broaden their participation in the industry in the Plan Area and elsewhere. The number of farms peaked in the mid-1990s, after the provincial government declared a moratorium on tenures due to concerns about potential environmental impacts. However, it is important to note that production in the industry has continued to grow despite restrictions on the on number of sites. In 1997, the BC Environmental Assessment Office (EAO) published the Salmon Aquaculture Review (SAR), with 49 recommendations primarily aimed at reducing potential negative impacts. The BC government has accepted most of the SAR recommendations, including a cap37 on the number of existing salmon farm tenures at 121. The Province is also encouraging development of up to 10 new closed-containment pilot projects, 5 of which may be in saltwater and 5 in freshwater.