Gravel Extraction and Road Haul Rates

Res #: 12-05A
Number: 12
Year: 2005
Midterm: No
Expired: Yes
Responses Received: No
Departments: Saskatchewan Government Relations

Resolution No. 12-05A

WHEREAS, the extraction fees and road haul rates have not been adjusted over a period of time and increased costs have been borne by the RM ratepayers; and

WHEREAS, the Department of Highways have increased their gravel permit fee charges to municipalities effective January 15, 2003;

THEREFORE BE IT RESOLVED, that SARM request the Government of Saskatchewan adjust extracting and road haul rates to reflect today’s maintenance costs.

Response from Honourable Maynard Sonntag, Minister of Highways and Transportation:

The authority to set gravel extraction fees, and hauling on RM roads as set out in The Road Maintenance and Restoration Agreement Regulations, are under the jurisdiction of Government Relations. As a member of the Road Maintenance and Restoration Agreement Regulations Review Committee, Saskatchewan Highways and Transportation would participate in a haul rate review if requested by Government Relations. Since these matters are under the authority of Government Relations, I have forwarded your information to my colleague the Honourable Len Taylor, Minister of Government Relations, so that he or one of his officials can respond to you directly.

Response from Honourable Len Taylor, Minister of Government Relations:

Road Haul Rates
The maximum rates for haul road maintenance agreements were last revised in 1999, following consulations with SARM, the Rural Municipal Administrators' Association of Saskatchewan (RMAAS),the Department of Highways and Transportation (DHT), the road construction industry, the oil industry, the forestry industry and the trucking industry. At that time, the following changes were made:

o The winter haul period defined in the regulations was changed to November 15 of one year to March 15 of the next year. This extended the winter haul period by two weeks in the fall and two weeks in the spring.
o The maximum rate for incremental maintenance resulting from bulk hauls was increased by 12% to 1.57 cents per tonne-kilometre.
o The maximum rate for loss of service life of roads was increased by 16.5% to 1.34 cents per tonne-kilometre. o Authority was added for municipalities to waive the minimum haul rate of $60 per kilometre.

Gravel Extraction Fees
The licensing of gravel extraction is a discretionary power of municipalities under subsection 213(1)(c) of The Rural Municipality Act, 1989 (RMA); however, the fees are regulated by the province to ensure consistency and reasonableness in the amount of fees levied across the province. The Gravel Extraction License Fees were last updated by government in 1986. The current license fees a municipality can establish, by bylaw, for the extraction of gravel within the RM are:

o 8.0 cents per one cubic metre;
o 6.1 cents per one cubic yard;
o 4.3 cents per one tonne; and
o 4.0 cents per one ton. In addition, an RM has the authority to include in its bylaw a prepayment provision, allowing the municipality to charge a fee up to but not exceeding $430, payable on the date the license is issued.

The prepayment fee is chargeable to any person whose estimated extraction will exceed 10,000 tonnes. Applicable Legislation The authority with respect to gravel extraction fees and road haul rates currently provided for under the RMA is continued under The Municipalities Act which comes into effect January 1, 2006. As a result of the legislative change, GR will consider potential regulatory changes. During the regulation review, SARM and other stakeholders will be consulted.