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 SCALLOP TENURE CONCESSIONS
ISL's Scallop Tenures
ISL currently holds three tenures in Baynes Sound (see note 1), one large bottom tenure just south of Baynes Sound and one on the west coast of Vancouver Island near Tofino, as shown in the below table.
The three Baynes Sound tenures (Denman, Hindoo Creek and Deep Bay and the Tofino tenure) offer unique features, which will add additional value to these properties. These include the split of tenures between east and west shores of Baynes Sound as well as the east and west coast of Vancouver Island, allowing continual accessibility to shellfish despite managed closures (harvest restrictions) due to incidental water quality or Paralytic Shellfish Poisoning (PSP or red tide). The seasonal closures caused by short-term bacteriological contamination, related to rainfall and upland bacterial sources, are limited to the western shore of the Sound and thus to only two of the three tenures retained by Island Scallops Ltd. The result of having operating tenures on both sides of the Sound ensures that product can be continually harvested despite closures that may occur within this management area.
Note 1: Baynes Sound, the marine waterway situated between eastern Vancouver Island and the western shore of Denman Island, is considered the most productive and highly utilized shellfish growing area in coastal British Columbia. The area supports extensive beach culture (Manila clams and oysters) as well as deepwater culture that produces oysters, scallops and some mussels. (Source: AquaMetrix Research LTD.)
© BC Ministry of Sustainable Resource Management Market Value of Scallop Tenures
The area available for shellfish aquaculture within Baynes Sound is almost fully subscribed, and as a result new tenures are extremely limited through the Provincial application and review process. The shellfish companies within the Sound are also well established and sales of tenures are quite rare, making the assessment of market value for the Island Scallop tenures difficult. The three Baynes Sound tenures occupy an area of 33.28 hectares (82.2 acres). At US$20,000/acre,Island Scallops' tenures are valued at US$1,644, 000 at current market price. The tenure in Tofino, although more isolated, is similar in value and the 3.9 hectare (9.6 acre) lease is valued at US$192,000. The large bottom tenure of 375 ha is the largest in Canada and is capable of producing 30 million scallops annually (926 acres @ 7,240/acre) with an estimated value of US$5,363,200. These estimates are for the combined tenures, and do not include infrastructure or the current inventory of shell stock. Since the government process for new tenures is extremely difficult and can take up to four years of government and environmental review, management estimates the true value of its five tenures, occupying an area of 1,018 acres, to be approximately US$7.2 million if acquired today.
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 SCALLOPS  TENURE CONCESSION BLACKCOD GENERAL FISHERIES |
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