(1) Subject to subsection (4), timber rights shall not be granted for a period exceeding 40 years.

(2) Subject to subsection (4), the size of the area in respect of which timber rights may be granted shall not exceed 125 square kilometers in respect of any particular grant of timber rights at a time.

(3) Subject to subsection (4), a small, medium or large scale timber operator as categorized in Schedule 1 to the Timber Resource Management Regulations 1998 (L.I. 1649), shall not be granted an area that exceeds 200, 300 or 500 square kilometers area holding respectively, and accordingly a holder with the respective maximum holding does not qualify to be granted any further timber rights.

(4) The Minister may on the recommendation of the Commission and with the approval of Parliament by resolution permit grant of timber rights that exceed the limits specified in subsections (1), (2) and (3).

(5) The duration and limits of timber rights specified in subsections (1), (2) and (3) shall not apply to timber leases granted before the coming into force of the Timber Resources Management Act, 1997 (Act 547) and the Timber Resources Management Regulations, 1998 (L.I 1649). [As inserted by the Timber Resources Management (Amendment) Act, 2002 (Act 617), s.2]