Little_Truckee_Biomass_Stewardship_Appendix_B.docx

APPENDIX B

STEWARDSHIP CONTRACT TIMBER REMOVAL SPECIFICATIONS

GENERAL INSTRUCTIONS; The following is a complete list of standard clauses that maybe used for the IRSC. Eliminate all those that do not apply. As an example; if there is no Overstory Removal Units, eliminate CT.3.3 Overstory Removal Units from the list and remove the clause. CLAUSES MARKED WITH AN ‘*’ ARE MANDATORY AND MAY NOT BE DELETED The clause marked with “**” is mandatory for forests west of the 100th meridian.

Project: Little Truckee Biomass Stewardship Page 11 of 11

*BT.0 CONTRACT AREA

*BT.2 Claims

*CT.0 TIMBER SPECIFICATIONS

*CT.1 Included Timber *CT.1.1 Standard Timber *CT.1.2 Substandard Timber *CT.1.3 Damaged Timber *CT.1.3.1 Damaged by Contractor *CT.1.3.2 Negligent or Willful Damage *CT.1.3.4 Minor Damage by Natural Causes *CT.1.4 Unintentionally Cut Timber CT.1.5 Construction Timber *CT.1.6 Other Material *CT.2 Utilization and Removal of Included Timber *CT.3 Timber Designations *CT.3.7 Minor Changes *CT.4 Volume Estimate

*DT.0 RATES OF PAYMENT

*DT.1 Current Contract Rates *DT.4 Other Payment Rates *DT.4.1 Material and Quantities Not in Division AT *DT.4.2 Timber Cut Through Mistake *DT.4.2.1 Designated Timber Cut But Not Removed *DT.4.3 Undesignated Timber Damaged Without Negligence *DT.4.4 Undesignated Timber Unnecessarily Damaged or Negligently or Willfully Cut *DT.4.5 Liquidated Damages

ET.0 PAYMENTS

*ET.1 Amount Payable for Timber *ET.2 Integrated Resource Account *ET.3 Deposits When Payment Guaranteed

GT.0 OPERATIONS

*GT.4 Conduct of Logging *GT.4.2.2 Landings and Skid Trails *GT.4.2.3 Skidding on Roads *GT.6.4 Landings *GT.6.6 Current Operating Areas *GT.6.7 Erosion Control Structure Maintenance *GT.7 Slash Disposal *GT 8 Measuring

IT.0 OTHER CONDITIONS

*IT.1 Title and Liability *IT.1.1 Title Passage *IT.1.2 Liability for Loss *IT.5 Sale of Other Materials

THE FOLLOWING IS A COMPLETE LIST OF WO KT CLAUSES THAT CAN BE USED FOR THE TREE MEASUREMENT VERSION OF THE IRSC. LIST ONLY WO OR REGIONAL K CLAUSES THAT ARE DEEMED APPLICABLE AND NOT IN CONFLICT WITH SECTIONS IN PART I.

WO-KT-CT.3.5# Designation of Timber and Payment Unit Boundaries (8/07) KT-GT.3.1.5# Project Operations Schedule (12/06) ) ) KT-GT.7# Slash Treatment (12/06) KT-GT.8.3 Accountability (2/05)

KT-GT.8.3

KT-IT.6.8#

Division AT Location and Area:

This Contract Area of

Volume Estimate and Utilization Standards

Quantity Unit of Measure Minimum Specifications

Diameter Breast High (d.b.h.)

(inches) Number of Minimum Pieces per Tree Length

(feet) Diameter Inside Bark at Small End

(inches) Merchantability Factor

Timber Subject to Agreement

Total Quantity

40,326

High Stumps

Combined Softwood (Appendix A)

Green Biomass

N/A

Roads

Class Approx.

Length (mi./km.)

Sheet Numbers and Approval Date Performance Responsibility

Staking1/

N/A

1/ Indicate timing, i.e., before clearing (BC) or after clearing (AC).

Specification sheets with itemized construction codes also attached

Schedule of Payment Units

Payment Unit Number Approx.

Acres To be Paid for at Flat Rates

Total Flat Rate Payment Total Required Deposits For Slash Disposal $

Measure

CS

Biomass

33,829

Gr. Tons

$3,382.90

APPLICABLE REGIONAL CLAUSES MAY BE ADDED

UNITED STATES DEPARTMENT OF AGRICULTURE

Forest Service

TIMBER REMOVAL SPECIFICATIONS

CLAUSES FOR TREE MEASUREMENT TIMBER REMOVAL CONTRACTS

(Applicable to Contracts to be Measured Before Felling)

This Division is organized into Parts, Sections, Subsections, and Items. These are numbered in accordance with the following scheme: Part BTl.0, Section BTl.1, Subsection BTl.11, and Item BTl.111. References to a Part include all Sections, Subsections, and Items within that Part; references to a Section include all Subsections and Items within that Section; and references to a Subsection include all Items within that Subsection. Cross references within this contract cite the reference number of the applicable Division, Part, Section, Subsection, and Item. Descriptive headings used are not to be considered in determining the rights and obligations of the parties hereunder. The Standard Clauses in this Division are subject to Specific Conditions of the contract stated in Division AT. Wherever appropriate, Specific Conditions established in Division AT are herein cited by reference number. References to Standard Clauses also apply to Special KT Clauses with the same numbers. These clauses are applicable only to the timber removal portion of the Ascension Stewardship Contract except where otherwise specifically referenced. “Timber” when used in this appendix includes timber and other products.

BT.0—CONTRACT AREA

BT.2 Claims. Valid claims are excluded from Contract Area, except those on which timber cutting is authorized in writing by the claimant and except mining claims on which cutting is authorized by the Act of July 23, 1955 (30 USC 614). Claims that limit Contractor’s rights to operate under this contract and that Forest Service has been able to identify are shown on Contract Area Map. Contractor is not obligated to operate contrary to existing claim limitations. Forest Service shall designate boundaries of claims on the ground to the extent necessary to identify Included Timber.

CT.0—TIMBER SPECIFICATIONS

CT.1 Included Timber. “Included Timber” consists of:

CT.1.1 Standard Timber. Live and dead trees and portions thereof that meet Utilization Standards and are designated for cutting.

CT.1.2 Substandard Timber. Live and dead trees that:

(a) Do not meet Utilization Standards and

(b) Are located in Clearcutting Units or construction clearings or are otherwise designated for cutting.

CT.1.3 Damaged Timber.

CT.1.3.1 Damaged by Contractor. Undesignated live trees meeting Utilization Standards (a) within 200 feet slope distance from centerline of roads constructed hereunder which are damaged by Contractor's construction to the extent that considerable deterioration or mortality is imminent and are designated by Forest Service for felling before the nearest road segment is substantially completed; or (b) which are damaged by Contractor in logging and are subsequently Marked before Contractor has completed skidding or yarding operations in the immediate area. By agreement, such trees may be left without charge if their removal would cause undue damage or be grossly uneconomic.

CT.1.3.2 Negligent or Willful Damage. Undesignated timber meeting Utilization Standards and unnecessarily damaged or negligently or willfully cut by Contractor, if included by Forest Service.

CT.1.3.4 Minor Damage by Natural Causes. Undesignated trees within Contract Area and meeting Utilization Standards, that become insect infested, windthrown, suffer serious damage, or die, as designated by agreement.

CT.1.4 Unintentionally Cut Timber. Trees within or immediately adjacent to Contract Area or to road construction or other authorized clearing outside Contract Area, not designated for cutting but that are cut through mistake by Contractor, when included by Forest Service.

CT.1.5 Construction Timber. Trees to be used for construction under this contract.

CT.1.6 Other Material. Species or products not listed in the contract, upon written approval of Forest Service.

CT.2 Utilization and Removal of Included Timber. “Utilization Standards” for trees and minimum pieces are stated in Division AT. To meet minimum tree specifications, trees must equal or exceed tree diameters listed in Division AT and contain at least one minimum piece. Except for timber required or authorized to be left, Contractor shall fell and buck such trees and shall remove from Contract Area all pieces that:

(a) Meet minimum piece standards in Division AT or

(b) Do not meet such standards, but would have qualified as part of minimum pieces if bucking lengths were varied to include such material.

CT.3 Timber Designations. Timber designated for cutting shall be confined to Contract Area, except as otherwise provided. Contract Area Map indicates Payment Units, if any, where Marking is to be done after solicitation, except for construction clearing, minor changes, and damaged timber. The boundaries of cutting units were plainly marked on ground before solicitation and are shown on Contract Area Map. The number of units and approximate acreage of timber designations are stated in Division AT.

CT.3.2 Construction Clearing. All dead or unstable live trees are designated for cutting that are sufficiently tall to reach Contractor’s landings, work areas, when Marked in advance of work in the immediate area. Pieces meeting Utilization Standards from such dead or unstable live trees shall be removed, unless there is agreement that to do so could damage the road. Such designation may be revised as part of agreed changes in road location.

CT.37 Minor Changes. Within Contract Area, minor adjustments may be made in boundaries of cutting units or in the timber individually Marked for cutting when acceptable to Contractor and Forest Service.

CT.4 Volume Estimate. The estimated volumes of timber by species designated for cutting and expected to be cut under Utilization Standards are listed in Division AT. The estimated volumes stated are not to be construed as guarantees or limitations of the timber volumes to be designated for cutting under the terms of this contract.

DT.0—RATES OF PAYMENT

DT.1 Current Contract Rates. Included Timber that is Released for Cutting shall be paid for at Current Contract Rates determined under this Section. “Current Contract Rates” shall be Flat Rates. Flat Rates shall be those listed in Division AT or B2 of the Schedule of Items. In the event contract time is adjusted, Current Contract Rates shall be continued in the same manner as immediately prior to the adjustment period.

DT.4 Other Payment Rates.

DT.4.1 Material and Quantities Not in Division AT. Incidental amounts of products or portions of trees of species that do not meet Utilization Standards may be removed without charge. Timber for which the quantity is not included in the estimate, shall be paid for at Current Contract Rates and Required Deposits.

DT.4.2 Timber Cut Through Mistake. Undesignated timber meeting Utilization Standards, cut by Contractor through mistake and included by the Forest Service, shall be removed and paid for at Current Contract Rates and Required Deposits, unless such material is not listed. In such event, Forest Service, in accord with standard Forest Service methods, shall establish rates to be paid.

DT.4.2.1 Designated Timber Cut But Not Removed. Standard timber shall be removed prior to acceptance of a Payment Unit for completion of logging. There shall be no charge when (a) leaving the incidental material is justified under existing conditions, or (b) Cut timber is left by option or requirement.

DT.4.3 Undesignated Timber Damaged Without Negligence. Undesignated timber meeting Utilization Standards, damaged without negligence by Contractor and designated by Forest Service, shall be cut, removed, and paid for at Current Contract Rates and Required Deposits.

DT.4.4 Undesignated Timber Unnecessarily Damaged or Negligently or Willfully Cut. Undesignated timber meeting Utilization Standards and unnecessarily damaged or negligently or willfully cut by Contractor, if included by Forest Service shall be cut, removed, and paid for at Current Contract Rates and Required Deposits that are in addition to liquidated damages. If such timber is of a species or size not listed in Division AT or is of a quality different from designated timber, Contracting Officer shall establish payment rates in accord with standard Forest Service methods.

DT.4.5 Liquidated Damages. Unnecessary damage to or negligent or willful cutting of undesignated timber, on portions of Contract Area cut over under this contract is likely to cause substantial silvicultural or other damage to the National Forest. It will be difficult, if not impossible, to determine the amount of such damage. Therefore, Contractor shall pay as fixed, agreed, and liquidated damages an amount equivalent to the amount payable at Current Contract Rates. If designated by the Forest Service, Contractor shall remove such damaged timber.

ET.0—PAYMENTS

ET.1 Amount Payable for Timber. Current Contract Rates and Required Deposits in effect when a Payment Unit is Released for cutting shall be applied to the timber quantities to determine the amount Contractor shall pay. Payment shall be in the form of Stewardship Credits or cash.

E.2 Stewardship Account “Stewardship Account” is an account of all Contractor’s deposits, credits, Payment Guarantees, and the charges for:

a. Timber, or other Products at rates specified in contract

b. Slash disposal and road maintenance at Required Deposit rates,

c. Stewardship Credits established,

d. Contract Scaling Deposits, and

e. Other Charges provided in this contract.

Cash deposits and Stewardship Credits earned shall be recorded currently in such account.

Charges for timber cut shall be made when Forest Service prepares and furnishes to Contractor periodic statements of volume and value of such timber cut and scaled. Charges against Stewardship Credits shall be limited to timber value in excess of Required Deposits. Required Deposits and Other Charges shall be paid in cash.

Contractor shall make cash deposits to meet Contractor’s obligations within 15 days of billing by the Forest Service. Deposits shall be made to Forest Service, USDA, by mail or delivery to the address shown on the bill for collection.

ET.3 - Deposits When Payment Guaranteed. (05/10) To the extent payment guarantee is provided under Clause entitled, “PRODUCT PAYMENT GUARANTEE” requirements for advance cash deposits shall be waived for the value of Product on contract area that is cut, but not removed, and for the value of Products removed from contract area, up to limit of remaining stewardship credits to be earned and exchanged for value of included product except for Required Deposits and Associated Charges. Associated charges shall be waived for not more than one monthly billing period.

GT.0—OPERATIONS

GT.4 Conduct of Logging. Unless otherwise specifically provided herein, Contractor shall remove the portions which meet Utilization Standards, except for occasional trees inadvertently not cut or trees or pieces not removed for good reason, including possible damage to forest resources or gross economic impracticability at the time of removal of other timber. Logging shall be conducted in accordance with the following, unless other clauses set forth requirements to meet special or unusual logging conditions:

GT.4.2.2 Landings and Skid Trails. The cleared or excavated size of landings shall not exceed that needed for efficient skidding and loading operations.

GT.4.2.3 Skidding on Roads. Products may be skidded on permanent roads authorized for hauling only by prior written agreement.

GT.6.4 Landings. After landings have served Contractor’s purpose, Contractor shall ditch and slope them to permit water to drain or spread. Unless agreed otherwise, cut and fill banks around landings shall be sloped to remove overhangs and otherwise minimize erosion.

GT.6.6 Current Operating Areas. Where logging or other stewardship project work is in progress but not completed, unless agreed otherwise, Contractor shall, before operations cease annually construct temporary cross drains, drainage ditches, or other facilities needed to control erosion.

Such protection shall be provided, prior to end of October 31st , for all disturbed, unprotected ground that is not to be disturbed further prior to end of operations each year, including fire lines. When weather permits operations during Nov. 1 – March 30, Contractor shall keep such work on any additional disturbed areas as up to date as practicable.

GT.6.7 Erosion Control Structure Maintenance. During the period of this contract, Contractor shall provide maintenance of soil erosion control structures constructed by Contractor until they become stabilized, but not for more than 1 year after their construction. Contractor shall not be responsible for repair of such structures damaged by other National Forest users whose activities are not a part of Contractor’s Operations.

GT.7 Slash Disposal. Contractor’s timing of product removal and preparatory work shall not unnecessarily delay slash disposal. Specific slash disposal measures to be employed by Contractor are stated in elsewhere herein and are in addition to Required Deposits for slash disposal.

GT.8 Measuring. “Measuring” is the estimation of timber quantities using certain dimensions and applicable volume tables or formulae to determine the contents of trees or stands in a standard manner. Sampling may be on an individual tree or area basis. Examples of standard procedures are tree measurement, sample tree measurement, and area estimate. The quantity of timber designated or to be designated for cutting has been or shall be Measured, as specified in this contract

IT.0—OTHER CONDITIONS

IT.1 Title and Liability.

IT.1.1 Title Passage. All right, title, and interest in and to any Included Timber shall remain in Forest Service until it has been cut, removed from Contract Area or other authorized cutting area, and paid for, at which time title shall vest in Contractor. Timber cut under the terms of clause Product Payment Guarantee, shall be considered to be paid for. Title to any Included Timber that has been cutand paid for, but not removed from Contract Area or other authorized cutting area by Contractor on or prior to contract termination, shall remain in Forest Service.

IT.1.2 Liability for Loss. If Included Timber is destroyed or damaged by an unexpected event that significantly changes the nature of the Included Timber, such as fire, wind, flood, insects, disease, or similar cause, the party holding title shall bear the timber value loss resulting from such destruction or damage; except that such losses caused by insect or disease after felling of timber shall be borne by Contractor, unless Contractor is prevented from removing such timber by the Forest Service. Deterioration or loss of value of salvage timber is not an unexpected event. In the event Included Timber to which Forest Service holds title is destroyed, Contractor will not be obligated to remove and pay for such timber. In the event Included Timber to which Forest Service holds title is damaged, Contracting Officer shall make an appraisal to determine for each species the difference between the appraised unit value of Included Timber immediately prior to the value loss and the appraised unit value of timber after the loss. Current Contract Rates in effect at the time of the value loss shall be adjusted by said differences to become the redetermined rates.

There shall be no obligation for Forest Service to supply, or for Contractor to accept and pay for, other timber in lieu of that destroyed or damaged. This Subsection shall not be construed to relieve either party of liability for negligence.

IT.5 Sale of Other Materials. Forest Service reserves the right to sell from Contract Area during the period of this contract any materials or products not subject to its terms, but shall not permit removal, possession or use thereof which will materially interfere with Contractor's Operations. Contractor shall not be obligated to do any work made necessary by the action of others.

KT-CT.3.5# DESIGNATION OF TIMBER AND SUBDIVISION/PAYMENT UNIT BOUNDARIES. Trees are designated for cutting under KT-CT.3.5# only if designated as shown in the Timber Designation table below. The boundaries of Subdivisions/Payment Units are designated as shown in the Boundary Designation table below. Trees used for boundary designation are not to be cut.

Payment Unit Boundary Designation Table

Contract Area or All Units

Contract Area or All Units

KT-F.3.5#–ROAD AND WATER SUPPLY USE. National Forest water supply locations, access, method of filling trucks, period of water availability and procedures designed to maintain water quality at each location shall be agreed in advance of use. Such use shall at no time reduce water supplies to the level that further use may be detrimental to aquatic resources or other established use. Waterholes and other improvements relating to said water supplies shall be put into condition, prior to expected seasonal periods of precipitation orrunoff, to avoid resource damage.

Damage to resources at such locations caused by Purchaser's Operations, other than fire suppression activities, shall be repaired by . Purchaser in a timely and agreed manner to the extent practicable to restore and prevent further resource damage. Unless otherwise agreed, Purchaser’s use of roads and other water supply requirements shall conform to the following table. See Appendix C

KT-GT.3.1.4 - RELEASE OF PAYMENT UNITS. Except for Specified Road Payment Units, Forest Service shall not Release for Cutting more Payment Units than can be logged within 60 calendar days at Contractor's normal rate of logging. Unless otherwise agreed in writing, upon completion of all contract requirements in a Payment Unit, additional Payment Units may be Released for Cutting.

K-G.3.1.5# - PROJECT OPERATIONS SCHEDULE. Unless otherwise agreed in writing, Contractor’s Operations shall be performed in accordance with the following schedule:

SCHEDULE PURSUANT TO KT-GT.3.1.5# - PROJECT OPERATIONS SCHEDULE (12/2006)

Payment Unit/ Area/Road

Conditions of Operation

Purpose

KT-GT.3.3.1 - LOG TRUCKING. To promote safe operations on National Forest roads and on Specified Roads, loads shall be safely secured before trucks move from the landing or loading location.

KT-GT.3.7 - SUBSTITUTE METHODS. Notwithstanding other provisions herein, for minor changes such as changes in logging systems for areas smaller than 5 acres, Contractor and Forest Service may agree in writing that use of substitute methods or equipment will achieve Forest Service objectives under this contract and may be used in lieu of those specified for Contractor's Operations.

KT-GT.7# - SLASH TREATMENT. Contractor shall pile, scatter, yard, construct firelines or otherwise treat slash defined in specifications below, within designated areas. Work required of Contractor shall be in accordance with the following slash plan and specifications, and the Contract Area Map.

All vegetative debris larger than 1 inch in diameter outside bark and 3 feet long resulting from Contractor's Operations, other than Construction Slash, is Logging Slash. Measures to be taken by Contractor for treatment of Logging Slash are set forth below unless otherwise agreed in writing.

Forest Service and Contractor shall jointly develop a schedule for completion of slash treatment on the various portions of Project Area prior to Contractor's Operations.

Removing may be substituted for treatment of any other specified method.

See the slash treatment specification table below.

SPECIFICATIONS PURSUANT TO KT-G.7# - SLASH TREATMENT (12/2006)

Specified slash treatment methods shall be shown on Contract Area Map or listed in the following tables by the following symbols:

Slash Treatment Methods

PILING SPECIFICATIONS. All piles shall be reasonably compact and free of soil to facilitate burning and shall be constructed of such size and at such distance from trees so that burning shall not result in unnecessary damage to residual timber. Such Logging Slash shall be bucked into lengths not exceeding ten feet prior to piling. Maximum width of tractor, with brush rake attached, shall not exceed 12 feet. Machine Piling is not required on areas where use of tractors would cause undue damage to residual timber or where slopes exceed 35 percent. Piles shall be located a distance of at least twice their height in feet from the outer edge of tree crowns or snags. Piles shall be no less than four feet in height or greater than 8 feet in height. Material extending three feet or more outside the edge of a pile shall be trimmed. An eight foot fuelbreak shall be cleared of all but fine material around each Machine Pile and an 18 inch wide fireline shall be cleared to mineral soil around the outer ring of the fuelbreak. For hand piles, Contractor shall construct a fireline cleared to mineral soil and at least 3 feet wide around each pile. In areas where there is a potential for burning material to roll, firelines, including those for Machine Piles, shall be trenched on the downhill side of each pile to adequately prevent material from crossing firelines. Trenches shall be constructed by hand unless otherwise agreed.

UNIT AND SUBDIVISION SLASH TREATMENT SPECIFICATIONS.

SLASH TREATMENT

LANDINGS AND DISPOSAL SITES. Unutilized logs accumulated at landings and disposal sites shall be Decked by Contractor for disposal by Forest Service. The maximum height of decks is shown in the following table. Other slash accumulated at landings and disposal sites shall be kept separate from unutilized logs and treated by the method shown in the following table.

SLASH TREATMENT

Subdivision or Unit No.

Specified Method Maximum Height of Decks

Landings

Landing slash and debris

All Units

Pile, Mach, Chip or Remove

Disposal Sites

Landing slash and debris

All Units

Pile, Mach, Chip or Remove

KT-GT.8.3 - ACCOUNTABILITY. Forest Service and Contractor shall agree upon the haul route(s) prior to use. All products removed from Contract Area shall be transported over the designated route of haul.

Contractor shall:

(a) Require truck drivers to sign form R5-2400-242, product removal permit, assure permit is attached to the load prior to removal from the Contract Area and while in transit to load destination.

(b) Assign a competent individual at the landing to record the following information for each load on the product removal permit provided by Forest Service:

1. Date and time load is punched out with a paper punch or equivalent

2. Truck ID or license number

3. Load destination Used books of product removal permits (stub portion) shall be returned to the Forest Service at least weekly, unless otherwise agreed.

(c) Require truck drivers to stop for transportation inspections, if requested by Forest Service, when products are in transit from Contract Area to Contractor's processing facility(s).

(d) Inform truck drivers of the designated route(s) of haul, the agreed upon location(s) for transportation inspections, the method of alerting drivers of an impending stop, and the fact that loads may be inspected at other locations where it is safe and possible to do so.

(e) Require truck drivers to assure the product removal permit is secured to each load of product (including chip vans, dump trucks or other container used for removing material) on the front lower corner of the drivers side of the load. Staple product removal permits to a log or attached piece of wood or other suitable material. Product removal permit shall remain attached to log until manufactured into products or if chips, until load has been unloaded. After logs are processed or load of chips unloaded the product removal permit shall be either destroyed or otherwise rendered unusable, unless otherwise agreed.

KT-IT.6.8# – USE OF TIMBER. (9/04) (a) This contract is subject to the Forest Resources Conservation and Shortage Relief Act of 1990, as amended (16 USC 620, et seq.).

(b) Except for NONE determined pursuant to public hearing to be surplus, unprocessed Included Timber shall not be exported from the United States nor used in direct or indirect substitution for unprocessed timber exported from private lands by Contractor or any person as defined in the Act (16 USC 620e).

(c) Timber in the following form will be considered unprocessed:

(i) Trees or portions of trees or other roundwood not processed to standards and specifications suitable for end product use;

(ii) Lumber, construction timbers, or cants intended for remanufacturing not meeting standards defined in the Act (16 USC 620e); and

(iii) Aspen or other pulpwood bolts exceeding 100 inches in length.

(d) Unless otherwise agreed in writing, unprocessed Included Timber shall be delivered to a domestic processing facility and shall not be mixed with logs intended for export.

(e) Prior to award, during the life of this contract, and for a period of 3 years from Termination Date, Contractor shall furnish to Forest Service, upon request, records showing the volume and geographic origin of unprocessed timber from private lands exported or sold for export by Contractor or affiliates.

(f) Prior to delivering unprocessed Included Timber to another party, Contractor shall require each buyer, exchangee, or recipient to execute an acceptable agreement that will:

(i) Identify the Federal origin of the timber;

(ii) Specify domestic processing for the timber involved;

(iii) Require the execution of such agreements between the parties to any subsequent transactions involving the timber;

(iv) Require that all hammer brands and/or yellow paint must remain on logs until they are either legally exported or domestically processed, whichever is applicable; and

(v) Otherwise comply with the requirements of the Act (16 USC 620d).

(g) No later than 10 days following the execution of any such agreement between Contractor and another party, Contractor shall furnish to Forest Service a copy of each such agreement. Contractor shall retain, for 3 years from Termination Date, the records of all sales, exchanges, or dispositions of all Included Timber.

(h) Upon request, all records dealing with origin and disposition of Included Timber shall be made available to Contracting Officer.

(i) For breach of this Subsection, Forest Service may terminate this contract and take such other action as may be provided by statute or regulation, including the imposition of penalties. When terminated by Forest Service under this Subsection, Forest Service will not be liable for any Claim submitted by Contractor relating to the termination.