[Federal Register Volume 67, Number 225 (Thursday, November 21, 2002)]
[Rules and Regulations]
[Pages 70165-70170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-29542]
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DEPARTMENT OF AGRICULTURE
Forest Service
36 CFR Part 223
RIN 0596-AB48
Sale and Disposal of National Forest System Timber; Extension of
Timber Sale Contracts To Facilitate Urgent Timber Removal From Other
Lands
AGENCY: Forest Service, USDA.
ACTION: Interim rule; request for comments.
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SUMMARY: The Forest Service is proceeding with an interim rule to
provide authority for Regional Foresters to authorize Contracting
Officers to extend the contract performance time on certain National
Forest System timber sale contracts to facilitate the harvest of
damaged timber from private or other non-National Forest System lands.
These contract extensions will allow the expeditious removal of timber
in other ownerships damaged by catastrophic events beyond the
landowner's control. Catastrophic events include, but are not limited
to, severe wildfire, flood, insect and disease infestations, drought,
and
[[Page 70166]]
windthrow. This interim rule also provides for adjustment of future
periodic payment determination dates as an element of these contract
extensions.
The purposes of this interim rule are to save volume and value of
damaged non-National Forest System timber, to improve protection of
National Forest System lands from fire and disease that could otherwise
develop on these damaged lands, to reduce the threat to public safety
and property due to fire and hazardous dead trees, and to promote the
wise use and conservation of the Nation's natural resources. An urgent
removal extension will not be approved for any National Forest System
timber sale contracts that contain dead or dying timber subject to
rapid deterioration.
DATES: This interim rule is effective November 21, 2002. Comments must
be received in writing by January 21, 2003.
ADDRESSES: Send written comments to the Director of Forest and
Rangeland Management, via the U.S. Postal Service to MAIL STOP 1105,
Forest Service, USDA, 1400 Independence Avenue, SW., Washington, DC
20250-1105; via e-mail to [email protected]; or via facsimile to 202-
205-1045. All comments, including names and addresses when provided,
are placed in the record and are available for public inspection and
copying. The public may inspect comments received on this interim rule
in the office of the Director of Forest and Rangeland Management, Third
Floor, Northwest Wing, Yates Building, 201 14th Street, SW.,
Washington, DC. Visitors are encouraged to call ahead to (202) 205-0893
to facilitate entry into the building.
FOR FURTHER INFORMATION CONTACT: Rex Baumback, Forest and Rangeland
Management, (202) 205-0855.
SUPPLEMENTARY INFORMATION:
Background
Periodically, catastrophic events such as severe drought
conditions, insect and disease outbreaks, wildfires, floods, and
windthrow occur on forested lands within, or near, National Forest
System (NFS) lands. As a result of such catastrophic events,
substantial amounts of private and other public timber may be severely
damaged. This damaged timber must be harvested within a relatively
short time period to avoid substantial losses in both the quantity and
quality of the timber due to deterioration. The critical time period
available for harvesting this damaged timber and avoiding substantial
deterioration varies with the season of the year, the species of
timber, the damaging agent, and the location of the damaged timber. In
most cases, substantial deterioration can be avoided if the damaged
timber is harvested within 1 year of the catastrophic event. The number
of wildfires and the extent of damage experienced in the last few years
has resulted in renewed requests by forest products companies and
forest industry associations for the Forest Service to adjust its
contracting procedures to support expeditious removal of damaged timber
on non-National Forest System lands.
Regulatory and Administrative Framework
The National Forest Management Act of 1976 (16 U.S.C. 472a(c))
provides that timber sale contracts with an original term of 2 years or
more may not be extended unless there is a finding that substantial
overriding public interest justifies an extension. Section 223.115 of
Title 36 of the Code of Federal Regulations delegates the authority to
make extensions of timber sale contracts to Contracting Officers once a
substantial overriding public interest finding has been made.
The Forest Service timber sale contract provides authority to allow
additional contract time on undamaged (green) NFS timber sale contracts
in order to harvest damaged timber outside the sale area on NFS lands.
However, the Forest Service does not have the current authority to
allow additional contract time on NFS timber sale contracts for the
harvest of damaged timber from private or other non-National Forest
System (non-NFS) lands.
Impediments to Timely Harvest
When significant catastrophic events occur on non-NFS lands, timber
sale purchasers often do not have the personnel, equipment, or mill
capacity to take on new contracts. Thus, landowners who have suffered
from catastrophic events may find themselves competing for available
loggers, buyers, and mill capacity to get damaged timber removed before
deterioration occurs. If a purchaser has an opportunity to contract for
timber on non-NFS land that is now damaged and also holds an NFS timber
sale contract for undamaged (green) timber, that purchaser may face
three choices: (1) Declining to bid on the contract for harvest of
damaged timber from non-NFS lands, and harvesting the NFS undamaged
(green) timber contract, thus allowing the damaged non-NFS timber to
deteriorate; (2) harvesting both the NFS undamaged (green) timber and
the damaged non-NFS timber under the terms and deadlines of the
applicable contracts; (3) or harvesting only the damaged, non-NFS
timber and potentially breaching the NFS undamaged (green) timber sale
contract. If a purchaser already has a non-NFS timber sale contract,
which now must be operated more quickly than anticipated because of
catastrophic damages, that purchaser also faces difficult and costly
choices.
Even if the purchaser has personnel and equipment to handle NFS and
non-NFS timber sale contracts, a purchaser may face significant
additional costs arising from stockpiling the undamaged (green) NFS
timber, if manufacturing capacity is not available. The additional
costs incurred in this scenario include the cost of carrying
inventories, logging expenses, stumpage payments, and other payments
required under the NFS contract terms. If log-decking space is not
available, stockpiling inventory may not be possible. If logging
equipment is scarce, a purchaser may have little to no opportunity to
remove the damaged non-NFS timber in a timely manner.
Risks and Benefits Associated With Removal of Damaged Timber
Damaged timber can provide a source of highly flammable fuel for
future wildfires, with inherent risks to public safety and property as
well as to resource values of any nearby NFS lands. Damaged timber also
can provide a habitat conducive to the development of insect
infestations and subsequent diseases that could threaten nearby
undamaged (green) timber stands on private, NFS, or other public land.
The overriding public benefit and justification for extending
certain NFS timber sale contracts to allow the harvest of damaged
timber requiring expeditious removal from non-NFS lands is the improved
protection of nearby NFS lands from loss due to fire and/or insect and
disease outbreaks, reduction of the threat to public safety and
property from such catastrophic events, and promotion of wise use and
conservation of the natural resources of the Nation by utilizing rather
than wasting damaged timber. In addition, expeditiously harvesting the
damaged non-NFS timber before it deteriorates provides private and
other public landowners direct economic benefits from the utilization
of the resource through revenues received through sale of the timber
and indirect benefits as a result of the employment generated by
converting the raw salvage timber into marketable products.
[[Page 70167]]
Finding of Substantial Overriding Public Interest
Having considered (1) the plight of private and other non-NFS
landowners whose timber has been damaged by wildfire and other
catastrophes this year; (2) the Forest Service statutory and regulatory
framework for adjusting contracts; (3) the need for purchasers to plan
their operation and to enter into contracts for the timely removal of
damaged timber, and (4) the ability to protect the U.S. taxpayer from
any losses associated with Forest Service contract extensions or loss
of valuable timber; the Chief of the Forest Service has found there is
substantial overriding public interest in extending NFS timber sale
contracts for the harvest of undamaged (green) timber not requiring
expeditious removal, when such an extension will expedite the rapid
harvest of damaged timber requiring expeditious removal from private or
other non-NFS lands. Extensions of undamaged (green) NFS timber sale
contracts will only be approved if the delay of harvesting will not
cause resource damage, delay the completion of needed projects, delay
the harvest of damaged NFS timber, or in any other manner adversely
impact the management of National Forest System lands. Highest priority
consideration will be given to requests for extensions that involve
damaged non-NFS timber adjacent to National Forest System lands.
Changes to 36 CFR Part 223, Subpart B
Section 223.53 Urgent Removal Extensions. This interim rule adds a
new Sec. 223.53. Paragraph (a) of this new section documents the
Chief's finding that there is substantial, overriding public interest
in extending NFS timber sale contracts to facilitate expeditious
removal of timber on non-NFS lands damaged by a specific catastrophic
event.
Paragraph (b) requires that the Regional Forester make a written
determination on whether cause for an urgent removal extension exists.
It also sets out the criteria that Regional Foresters must apply when
making this determination. The rule provides that, in making this
determination, the Regional Forester must document that the specific
conditions, listed in paragraph (b), items 1 through 4, exist and that
an extension of NFS timber sale contracts for the expeditious removal
of damaged timber from non-NFS land is in the public interest.
Paragraph (c) lists the required documentation that purchasers must
provide to the Contracting Officer when requesting urgent removal
extensions of undamaged (green) NFS timber sale contracts to expedite
salvage operations of catastrophically damaged timber on non-NFS lands.
The agency has limited this information to only that essential to
determine that expeditious removal is in the public interest. A full
disclosure of the information required is set out later in this
document under the heading ``Controlling Paperwork Burdens on the
Public.''
Paragraph (d) assigns Contracting Officers the authority to grant
an urgent removal extension on an individual sale, up to a maximum of
one year, for the purpose of expeditious removal of damaged non-NFS
timber.
Paragraph (e) sets forth terms and conditions that must be included
in a mutual contract modification before a Contracting Officer may
grant an extension of an NFS timber sale contract. A formula is
provided in this paragraph that must be used to determine the amount
that purchasers must pay at the time of a contract modification in
consideration for the additional contract term. This payment would be
in keeping with the Comptroller General's long-standing rule that no
officer or agent of the Government has the authority to waive
contractual rights which have accrued to the United States or to modify
existing contracts to the detriment of the Government without legal
consideration (44 Comp. Gen. 746, 749 (1965); 5 Comp. Gen. 605 (1926)).
Purchasers are also required by paragraph (e) to make payment to
cover the cost of re-marking timber, if necessary. Such a payment is
consistent with the Comptroller General's rule requiring reimbursement
to the Government for costs incurred if remarking of the timber or
reestablishing cutting unit boundaries is required due to the
extension. This payment is also a standard requirement for other NFS
contract extensions under the terms of the timber sale contract
(contract provision B/BT8.23).
Paragraph (f) states that the information purchasers are required
to provide, as outlined in paragraph (c), constitutes a new information
collection and cites the Office of Management and Budget's control
number.
Section 223.50 Periodic Payments. Establishment of a contract
extension for the purposes of expeditious removal at Sec. 223.53
requires a conforming amendment to Sec. 223.50. The interim rule
revises paragraph (e) of this section to authorize adjustments of dates
for determining future periodic payment date(s) when an urgent removal
extension is granted under the new rule and when contract term
extensions are granted under the general authority of Sec. 223.115(b).
The current text, at Sec. 223.50(e), provides for adjustment of
future periodic payment determination dates when contract term
adjustments are granted under Sec. 223.46 or when market-related
contract term additions are granted under Sec. 223.52, but explicitly
prohibits a similar adjustment when contract term extensions are
granted under the general authority of Sec. 223.115.
Therefore, the adjustment of periodic payment determination date(s)
is necessary to allow purchasers to transfer their financial resources
from an NFS contract to facilitate harvesting of non-NFS timber needing
expeditious removal.
Conclusion
By adoption of this interim rule, the Chief of the Forest Service
is making a finding that there is substantial overriding public
interest in extending NFS timber sale contracts when such an extension
will facilitate the expeditious removal of timber damaged by
catastrophic events on non-NFS lands, thus reducing the threat to
public safety and property and promoting the wise use and conservation
of the Nation's natural resources. An urgent removal extension will not
be approved for an NFS timber sale contract that contains dead or dying
timber subject to rapid deterioration.
Good Cause Statement
The 2002 fire season is on pace to be more damaging than that seen
in 1988, 1994, and 2000. These fire seasons are considered to be some
of the more noteworthy in modern times. Over 6.7 million acres have
been burned this year, nearly doubling the 10-year average. Two-thirds
of the acreage burned, 4.5 million acres, has been on private or other
non-NFS lands. This interim rule is necessary because burned timber not
harvested promptly will deteriorate and lose volume and value, making
harvest and utilization of the damaged timber uneconomical. Without
prompt removal of damaged timber, nearby NFS lands will be more likely
to experience fire or insect and disease outbreaks, the threat to
public safety and property from such catastrophic events will be
higher, and affected landowners would not be able to achieve wise use
and conservation of the natural resources on their lands. Further,
without prompt harvest, private and other public landowners will be
unable to obtain the economic benefits and revenues from the
utilization of the resource and the public will lose the
[[Page 70168]]
indirect benefits that will result from the employment generated by
converting the raw salvage timber into marketable products.
This interim rule will assist timber sale purchasers who, with
limited processing or manufacturing capacity or limited logging
equipment capacity, must make immediate decisions on whether to meet
their contract requirements by harvesting undamaged (green) NFS timber
under contract or to purchase and harvest salvage timber burned during
the summer of 2002 on private, tribal, State, or other Federal land.
Under these circumstances, the Department has determined that prior
notice and opportunity for public comment are not practicable and are
contrary to the public interest and that there is good cause under 5
U.S.C. 553 for making this rule effective immediately after publication
in the Federal Register.
Comments received on this interim rule will be considered in
adoption of a final rule, notice of which will be published in the
Federal Register. The final rule will include a response to comments
received and identify any revisions made to the rule as a result of the
comments.
Regulatory Certifications
Regulatory Impact
This interim rule has been reviewed under USDA procedures and
Executive Order 12866 on Regulatory Planning and Review. OMB has
determined that this is not a significant rule. This rule will not have
an annual effect of $100 million or more on the economy nor adversely
affect productivity, competition, jobs, the environment, public health
or safety, nor State or local governments. This rule will not interfere
with an action taken or planned by another agency nor raise new legal
or policy issues. Finally, this action will not alter the budgetary
impact of entitlements, grants, user fees, or loan programs or the
rights and obligations of recipients of such programs. Accordingly,
this interim rule is not subject to OMB review under Executive Order
12866.
Moreover, this interim rule has been considered in light of the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.), and it has been
determined that this rule will not have a significant economic impact
on a substantial number of small entities. The interim rule imposes
minimal additional requirements on all timber purchasers for the
purpose of validating the need for such extensions and to determine
whether or not to approve the requested extension. The information
required is easily within the capability of small entities to produce.
All businesses that desire an urgent removal extension must show that
the extension is needed in order to harvest and salvage deteriorating
non-NFS timber, while avoiding contract default on NFS timber.
Environmental Impact
This interim rule establishes uniform criteria to be followed when
consideration is being given to extending an NFS timber sale contract
because of the need for expeditious removal of damaged non-NFS timber.
Section 31.1b of Forest Service Handbook 1909.15 (57 FR 43180;
September 18, 1992) excludes from documentation in an environmental
assessment or impact statement ``rules, regulations, or policies to
establish Service-wide administrative procedures, program processes, or
instructions'' that do not significantly affect the quality of the
human environment. The agency's preliminary assessment is that this
rule falls within this category of actions and that no extraordinary
circumstances exist which would require preparation of an environmental
assessment or environmental impact statement. The intent of this
interim rule is to provide authority to allow additional contract time
on NFS timber sale contracts for the harvest of damaged timber from
private or other non-NFS lands, thus saving valuable resources from
deterioration. No change in resources on NFS land would occur from
implementation of this rule except to defer operations on an NFS timber
sale. A final determination will be made upon adoption of a final rule.
Controlling Paperwork Burdens on the Public
This interim rule represents a new information requirement as
defined in 5 CFR Part 1320, Controlling Paperwork Burdens on the
Public. In accordance with those rules and the Paperwork Reduction Act
of 1995 as amended (44 U.S.C. 3501, et seq.), the Forest Service has
requested emergency approval from the Office of Management and Budget
for this new information collection.
The information to be collected from purchasers applying for an
urgent removal extension (para. c of Sec. 223.53) is the minimum
needed for the Contracting Officer to make an informed decision on
whether good cause exists to grant an extension.
Description of Information Collection
Title: Contract Extension Request to Harvest Damaged Non-National
Forest System Timber.
OMB Number: 0596-0167.
Expiration Date of Approval: April 30, 2003.
Type of Request: The following collection requirements are new and
have not previously received approval by the Office of Management and
Budget.
Abstract: This collection requires a purchaser to provide
information needed to grant an extension of NFS timber sale contracts
to allow the harvest of damaged timber, located on private or other
public lands, which is in need of expeditious removal because of
catastrophic events beyond the control of the landowner. Catastrophic
events, which may result in the need for expeditious removal of damaged
timber, include, but are not limited to, severe wildfire, flood, insect
and disease infestations, drought, and windthrow. Specifically,
purchasers applying for an extension would be required to provide:
(1) An explanation of how the harvest of the damaged non-NFS timber
in need of expeditious removal affects or prevents the removal of
undamaged (green) NFS timber within the term of the existing NFS
contract(s);
(2) Documentation that the manufacturing facilities or logging
equipment capacity available to a purchaser would be insufficient to
provide for both the rapid salvage of damaged non-NFS timber in need of
expeditious removal and continued harvest of undamaged (green) NFS
timber under contract with the Forest Service; and
(3) A notarized statement that the purchaser will not hold the
Forest Service liable for any damages or lost time incurred on the non-
NFS and NFS contracts in the event that a request for an extension is
delayed or denied, or for any damages under NFS contracts due to delay,
suspension, modification, or cancellation (in whole or in part)
subsequent to or during the extension.
Estimate of Burden: The public reporting burden to provide
information when requesting a timber sale contract extension is
estimated to average 2 hours per response.
Respondents: Individuals, large and small businesses, and
corporations purchasing NFS timber sales.
Estimated Number of Respondents: 25.
Estimated Number of Responses per Respondent: 1 response per year.
Estimated Total Annual Burden on Respondents: 50 hours.
Comments are Invited on: (a) Whether the collection of information
is necessary for the proper performance of the functions of the agency,
including whether the information will have
[[Page 70169]]
practical utility; (b) the accuracy of this agency's estimate of the
burden of the collection of information, including the validity of the
methodology and assumptions used; (c) ways to enhance the quality,
utility, and clarity of the information to be collected; and (d) ways
to minimize the burden of the collection of information on respondents,
including the use of automated collection techniques or other forms of
information technology.
Use of Comments: All comments received in response to this
information collection will be summarized and included in the request
for final OMB approval. All comments, including names and addresses
when provided, will become a matter of public record.
Unfunded Mandates Reform
Pursuant to Title II of the Unfunded Mandates Reform Act of 1995,
which the President signed into law on March 22, 1995, the Department
has assessed the effects of this rule on State, local, and tribal
governments and the private sector. This interim rule does not compel
the expenditure of $100 million or more by any State, local, or tribal
government or anyone in the private sector. Therefore, a statement
under section 202 of the Act is not required.
List of Subjects in 36 CFR Part 223
Administrative practices and procedures, Exports, Government
contracts, Forests and forest products, National forests, Reporting and
recordkeeping requirements.
Therefore, for the reasons set forth in the preamble, Part 223 of
Title 36 of the Code of Federal Regulations is amended as follows:
PART 223--SALE AND DISPOSAL OF NATIONAL FOREST SYSTEM TIMBER
1. The authority citation for Part 223 continues to read as
follows:
Authority: 90 Stat. 2958, 16 U.S.C. 472a; 98 Stat. 2213, 16
U.S.C. 618; 104 Stat. 714-726, 16 U.S.C. 620-620j, unless otherwise
noted.
Subpart B--Timber Sale Contracts
2. Revise paragraph (e) of Sec. 223.50 to read as follows:
Sec. 223.50 Periodic payments.
* * * * *
(e) Dates for determining future periodic payments shall be
adjusted as follows:
(1) When contract term adjustments are granted under Sec. 223.46,
(2) When market-related contract term additions are granted under
Sec. 223.52,
(3) When urgent removal extensions are granted under Sec. 223.53,
or
(4) When extensions in the substantial overriding public interest
are granted under Sec. 223.115(b). Periodic payment determination
dates shall not be adjusted when a contract term extension is granted
under the general authority of Sec. 223.115(a).
* * * * *
3. Add a new Sec. 223.53 under the undesignated center heading
``Contract Conditions and Provisions'' to read as follows:
Sec. 223.53 Urgent removal contract extensions.
(a) Finding. There is substantial, overriding public interest in
extending National Forest System timber sale contracts for undamaged
(green) timber not requiring expeditious removal in order to facilitate
the rapid harvest of catastrophically damaged timber requiring
expeditious removal on private or other non-National Forest System
lands. Such an extension may be granted when a specific catastrophic
event beyond the control of the landowner occurs on non-National Forest
System lands that poses a threat to general forest health, public
safety, and property. Catastrophic events include, but are not limited
to, severe wildfire, wind, floods, insects and disease infestation, and
drought.
(b) Regional Forester determination. If the Regional Forester
determines that adequate cause for urgent removal extensions exists,
Contracting Officers may extend a National Forest System timber sale
contract, up to a maximum of 1 year, for the estimated amount of time
required to harvest and process the damaged timber on non-National
Forest System lands. The Contracting Officer may grant an urgent
removal extension only when the Regional Forester verifies in writing
that:
(1) A specific catastrophe occurred on the particular geographic
area for which urgent removal extensions may be granted;
(2) There is a high risk that substantial timber quantities or
values of the damaged non-National Forest System timber in the affected
geographic area would deteriorate unless expeditiously removed;
(3) The manufacturing facilities or logging equipment capacity
available to purchasers are insufficient to provide for both the rapid
harvest of damaged non-National Forest System timber in need of
expeditious removal and the continued harvest of undamaged (green)
timber under contract with the Forest Service; and
(4) Failure to harvest the damaged non-National Forest System
timber promptly could result in the following:
(i) Significant private or other public resource loss,
(ii) Pose a threat to public safety, or
(iii) Create a threat of an insect or disease epidemic to National
Forest System or other lands or resources.
(c) Purchaser request. In order to obtain an urgent removal
extension on a National Forest System timber sale contract, a purchaser
must make a written request to the Contracting Officer, which includes
the following:
(1) An explanation of why the harvest of the damaged non-National
Forest System timber in need of expeditious removal will prevent or
otherwise impede the removal of undamaged (green) National Forest
System timber within the term of the existing National Forest System
contract(s);
(2) Documentation that the manufacturing facilities or logging
equipment capacity available to a purchaser would be insufficient to
provide for both the rapid salvage of damaged non-National Forest
System timber in need of expeditious removal and continued harvest of
undamaged (green) National Forest System timber under contract with the
Forest Service; and
(3) A notarized statement that the purchaser will not hold the
Forest Service liable for any damages or lost time incurred on the non-
National Forest System and National Forest System contracts in the
event that a request for an extension is delayed or denied, or for any
damages under National Forest System contracts due to delay,
suspension, modification, or cancellation (in whole or in part)
subsequent to or during the extension.
(d) Contracting Officer determination. In order to grant an urgent
removal extension, the timber sale Contracting Officer must verify the
following:
(1) That it is likely that the undamaged (green) timber from
National Forest System land would be delivered to the same
manufacturing facilities as are needed to process the damaged non-
National Forest System timber or the National Forest System timber sale
contract would require the use of the same logging equipment as is
needed to remove the damaged non-National Forest System timber from the
area affected by the catastrophe;
(2) That extension of the National Forest System contract will not
be injurious to the United States and will protect, to the extent
possible, the health of the National Forest System lands;
(3) That the urgent removal extension does not adversely affect
other resource management objectives to be
[[Page 70170]]
implemented by the National Forest System timber sale being extended;
(4) That the National Forest System timber sale contract to be
extended is not a sale containing damaged, dead, or dying timber
subject to rapid deterioration;
(5) That the National Forest System timber sale contract at issue
has not been granted a previous urgent removal extension;
(6) That the revised National Forest System timber sale contract
term will not exceed 10 years from the date the National Forest System
contract was awarded;
(7) That the National Forest System contract is not in breach, and
all work items, payments, and deposits are current; and
(8) That the purchaser has signed and had notarized the following
statement:
By submission of this request, I release, waive, and abandon any
and all claims against the United States for delay in the processing
or denial of this request for an urgent removal extension of my
National Forest System timber sale(s), contract number(s) ------,
including, but not limited to, all claims for costs, expenses,
attorney fees, compensatory damages, and exemplary damages arising
out of or related to any non-National Forest System timber sale
contract(s) and the National Forest System timber sale(s)
contract(s) identified above. Should my request be granted, I
release, waive, and abandon any and all claims against the United
States due to delay, suspension, modification, or cancellation (in
whole or in part) of the extended National Forest System timber sale
contract(s), including, but not limited to, all claims for costs,
expenses, attorney fees, compensatory damages, and exemplary
damages. This liability limitation supersedes any other compensation
or liability provisions set forth in the timber sale contract,
Federal regulation, or the common law.
(e) Execution of contract extension. An urgent removal extension of
a National Forest System timber sale contract is executed through a
mutual agreement contract modification pursuant to Sec. 223.112, which
must include specific contract provisions. An agreement to modify a
contract must identify the specific provision(s) of the contract being
modified and must include the following terms and conditions:
(1) Purchasers must make cash payment to the Forest Service at the
time of modification granting an urgent removal extension in
consideration for the additional contract term. Such payment (P) shall
be equal to interest on the difference between current contract value
(CCV) at the time of the modification and the credit balance of any
deposits (D). The interest rate (i) shall be the prevailing U.S.
Department of the Treasury current value of funds rate in effect at
time of modification. The time period (t) to be used in the calculation
of interest shall be the number of months of contract extension
granted. Payments so made shall not be refunded as excess cash
deposits. This calculation is expressed by the following formula:
P = i(CCV - D)(t/12)
(2) Purchasers must make cash payment to cover the costs of
remarking timber on the sale area or reestablishing cutting unit
boundaries if the Contracting Officer determines such work is
necessary.
(3) For sales subject to stumpage rate adjustment, future
adjustment of tentative rates will not result in rates less than the
current contract rates at the time of the extension.
(f) Information collection. The information required of a purchaser
to request an extension of an National Forest System timber sale
contract, as outlined in paragraph (c) of this section, to facilitate
expeditious removal of timber from non-National Forest System lands
constitutes an information collection requirement as defined in 5 CFR
Part 1320 and has been assigned Office of Management and Budget control
number 0596-0167.
Dated: November 13, 2002.
David P. Tenny,
Deputy Under Secretary, Natural Resources and Environment.
[FR Doc. 02-29542 Filed 11-20-02; 8:45 am]
BILLING CODE 3410-11-P