09-0008_CORP_APPENDIX C TREE_MEASUREMENT_FS-2400-13T_Part_BT(9-04).pdf

14 Contract 2400-13T, (9/04)

BT.0—CONTRACT AREA

BT.1 Contract Area Map. The boundaries of “Contract Area” and any Payment Unit thereof, are as shown on the attached “Contract Area Map” that is made a part hereof, and were, before contract advertisement, designated on the ground by Forest Service to meet the anticipated needs of the parties. The location of Contract Area and its approxi-mate acreage are stated in AT.1. Payment Units may be revised and additional ones may be established only by writ-ten agreement. Upon Contractor’s request, Forest Service shall subdivide Payment Units to reduce them to a size that can be logged within 60 days at Contractor’s normal rate of logging. However, the rate of logging used in such ad-justment of Payment Unit size shall not be less than a rate necessary for removal of all Included Timber during Nor-mal Operating Seasons prior to Termination Date. Payment Units and stewardship project areas may be eliminated from Contract Area under conditions described in GT.3.6. Catastrophically Damaged areas may be removed from Contract Area under IT.3.2.

Where applicable, the following are also identified on Contract Area Map:

(a) Identified claims limiting Contractor’s rights under BT.2;

(b) Payment Units where timber is to be Measured or Marked after date of contract advertisement and approximate location of sample Marked timber under CT.3.6 and CT.4;

(c) Boundaries of Clearcutting Units, Overstory Removal Units, and Understory Removal Units under CT.3;

(d) Diameter limits for Overstory Removal Units and Understory Removal Units under CT.3.3 and CT.3.4;

(e) Areas where leave trees are Marked to be left uncut under CT.3.5;

(f) Specified Roads listed in AT.7;

(g) Sources of base course, surface rock, and rock riprap listed in the Schedule of Items;

(h) Roads where log hauling or use is prohibited or restricted under FT.1.2;

(i) Roads and trails to be kept open under GT.2.2;

(j) Improvements to be protected under GT.2.2;

(k) Locations of known wildlife or plant habitat and cave resources to be protected under GT.2.4;

(l) Locations of areas known to be infested with specific invasive species of concern under GT.3.5;

(m) Maximum stump heights when more than one height is listed by areas in AT.6 under GT.4.1.2;

(n) Skidding or yarding methods specified under GT.4.2;

(o) Streamcourses to be protected under GT.5;

(p) Locations of meadows requiring protection under GT.6.1;

(q) Locations of wetlands requiring protection under GT.6.2;

(r) Locations of temporary roads to be kept open under GT.6.3.1; and

(s) Other features required by Parts A through K.

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 iden-tify are shown on Contract Area Map. Contractor is not obligated to operate contrary to existing claim limitations. For-est 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 under CT.2 and are designated for cutting under CT.3.

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 that are damaged by Contrac-tor’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) That are damaged by Contractor in logging or stewardship project operations and are subsequently Marked before Contractor has completed work 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 unnec-essarily damaged or negligently or willfully cut by Contractor, if included by Contracting Officer.

CT.1.3.3 Damage by Catastrophe. As provided under IT.3.2, undesignated live and dead timber within Contract Area, meeting Utilization Standards, and affected by Catastrophic Damage. “Catastrophic Damage” as used

15 Contract 2400-13T, (9/04) hereunder is major change or damage to Included Timber on Contract Area, to Contract Area, to access to Contract Area, or a combination thereof:

(a) Caused by forces, or a combination of forces, beyond control of Contractor, occurring within a 12-month pe-riod, including, but not limited to, wind, flood, earthquake, landslide, fire, forest pest epidemic, or other major natural phenomenon and

(b) Affecting the value of any trees or products meeting Utilization Standards, within Contract Area and estimated to total either:

(i) More than half of the estimated timber quantity stated in AT.2 or

(ii) More than two hundred thousand cubic feet (2,000 CCF) or equivalent.

Catastrophic Damage does not include changes caused by forest pest epidemics or foreseeable deterioration if Included Timber was sold for salvage or pest control.

CT.1.3.4 Minor Damage by Natural Causes. Undesignated trees within Contract Area and meeting Utili-zation Standards, in amounts less than specified in CT.1.3.3, 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 con-struction or other authorized clearing outside Contract Area, not designated for cutting under CT.3 but that are cut through mistake by Contractor, when included by Contracting Officer.

CT.1.5 Construction Timber. Trees to be used for construction under FT.1.

CT.1.6 Other Material. Species or products not listed in AT.2, upon written approval of Contracting Officer under DT.4.1.

CT.2 Utilization and Removal of Included Timber. “Utilization Standards” for trees and minimum pieces are stated in AT.2. To meet minimum tree specifications, trees must equal or exceed tree diameters listed in AT.2 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 AT.2 or

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

CT.3 Timber Designations. Timber designated for cutting shall be confined to Contract Area, except as provided in CT.1.3.1, CT.1.4, CT.1.5, CT.3.2, and FT.1. Contract Area Map indicates Payment Units, if any, where Marking under CT.3.5 is to be done after contract advertisement, except for construction clearing under CT.3.2, designation changes under CT.37, and damaged timber.

The boundaries of Clearcutting Units, Overstory Removal Units, and Understory Removal Units were plainly Marked on ground before contract advertisement and are shown on Contract Area Map. Boundary trees shall not be cut. Such units where Measuring is to be completed after date of contract advertisement are also shown. The number of units and approximate acreage of timber designations are stated in AT.3.

CT.3.1 Clearcutting Units. All trees that meet Utilization Standards within “Clearcutting Units” are designated for cutting.

CT.3.2 Construction Clearing. All timber is designated for cutting that is within the clearing limits of roads constructed hereunder or is in other authorized clearings. All dead or unstable live trees are designated for cutting that are sufficiently tall to reach Contractor’s landings, work areas, or the roadbed of Specified and Temporary Roads when Marked in advance of work in the immediate area. Pieces meeting Utilization Standards from such dead or un-stable 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 under FT.2.

CT.3.2.1 Specified Road Clearings. Timber within the clearing limits of Specified Roads is within sepa-rate Payment Units, as shown on Contract Area Map, and the quantities are in AT.2. These Payment Units are sub-ject to revision, as specified in CT.37. The quantities of dead or unstable trees designated outside the clearing limits are not included in AT.2.

CT.3.2.2 Other Authorized Clearings. Timber within authorized clearings for Temporary Roads, land-ings, or other construction clearings is designated for cutting. Quantities of such timber are not included in AT.2.

CT.3.3 Overstory Removal Units. All trees within “Overstory Removal Units” are designated for cutting when they meet Utilization Standards and equal or exceed the diameter limits shown on Contract Area Map.

CT.3.4 Understory Removal Units. All trees within “Understory Removal Units” are designated for cutting when they meet Utilization Standards and are smaller than the diameter limits shown on Contract Area Map.

CT.3.5 Individual Trees. All trees to be cut, other than in the units described in CT.3.1, CT.3.2, CT.3.3, and CT.3.4, are Marked or designated by description. Trees are “Marked” when individually designated by Forest Service with paint marks above and below stump height.

Contract Area Map indicates areas plainly identified on the ground where leave trees are Marked to be left uncut.

CT.3.6 Incompletely Measured Payment Units. Live trees within incompletely Measured Payment Units shown on Contract Area Map at time of contract advertisement shall be designated in accordance with KT-CT.3.6. A

16 Contract 2400-13T, (9/04) representative sample of the timber to be designated has been Marked prior to contract advertisement in accordance with such rules. The approximate locations of the representative sample areas are shown on Contract Area Map.

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

In event Contracting Officer accepts alternate facilities under FT.2.6, Contracting Officer shall revise the affected Payment Units and adjust estimated quantities.

In the event Contractor does not construct portions of Specified Roads, Payment Units involved shall be revised to eliminate the road portions not to be constructed. Parts of such areas within non-road-related Payment Units shall be added to such Payment Units and the timber thereon shall be designated by the methods provided for in the Pay-ment Units. Estimated quantities for Payment Units so revised shall be adjusted as necessary.

CT.4 Quantity Estimate. The estimated quantities of timber by species designated for cutting under CT.3 and expected to be cut under Utilization Standards are listed in AT.2. Estimated quantity in AT.2 does not include the following:

(a) Damaged timber under CT.1.3;

(b) Unintentionally cut timber under CT.1.4;

(c) Construction timber under CT.1.5 cut outside of Payment Units and removed from construction use for utiliza-tion by Contractor;

(d) Timber within clearing limits of Temporary Roads or other authorized clearings and that is not designated un-der CT.3.1, CT.3.3, CT.3.4, or CT.3.5; or

(e) Dead or unstable live trees that are sufficiently tall to reach Contractor’s landings, work areas, or the roadbed of Specified Roads under CT.3.2.

Estimated quantities for such timber not included in AT.2 shall be determined as stated in KT-GT.8.

If Contract Area Map shows Payment Units where Marking or Measuring is to be completed after date of contract advertisement, the objective of Forest Service shall be to designate for cutting in such Payment Units sufficient timber so that Contract Area shall yield the approximate estimated quantities by species or species groups stated in AT.2.

However, the estimated quantities stated in AT.2 are not to be construed as guarantees or limitations of the timber quantities to be designated for cutting under the terms of this contract.

Quantity adjustments shall not be made under this Section after there is modification for Catastrophic Damage under IT.3.2.

CT.4.1 Adjustment for Quantity Deficit. If Contract Area Map shows Payment Units where Marking or Measuring is to be completed after the date of contract advertisement and if Contracting Officer determines that a deficit in the estimated quantity will cause the quantity designated to be less than 90 percent of the total estimate shown in AT.2, Forest Service, upon request by Contractor, shall designate additional timber within Contract Area.

Such additional timber shall be limited to that estimated to be necessary to reach approximately the estimated quanti-ties by species listed in AT.2. Any such additional designation shall be consistent with land and resource management plans.

CT.4.2 Adjustment for Excess Quantity. If Contract Area Map shows Payment Units where Marking or Measuring is to be completed after date of contract advertisement and if Contracting Officer determines that the quan-tity designated will be more than 120 percent of the total estimated quantity listed in AT.2, Forest Service, upon re-quest by Contractor, shall make an adjustment in Marking or cutting unit boundaries with the objective of designating for cutting the approximate estimated quantities by species listed in AT.2. Such adjustments in quantities shall be con-fined to (a) Marking adjustments on Contract Area and (b) reduction in area to be cut over. Such adjustments or re-ductions shall not conflict with the silvicultural treatment being applied on Contract Area and shall not materially change the average value by species of the timber designated for cutting. Such adjustments may be made notwith-standing the provisions of BT.1 and CT.3.

If the timber designated for cutting is not reduced by such adjustments to less than 120 percent of the total esti-mated quantity listed in AT.2, Contractor, after cutting 120 percent of the total estimated quantity listed in AT.2, may elect to have Contract Area reduced to eliminate Payment Units where felling has not begun.

CT.4.3 Adjustment for Quantity Errors. An estimated quantity shown in AT.2 shall be revised by correcting identified errors made in determining estimated quantity that result in a change in total contract quantity of at least 10 percent or $1,000 in value, whichever is less, when an incorrect estimated quantity is caused by computer malfunction or an error in calculations, area determination, or computer input.

No adjustments in quantity shall be made for variations in accuracy resulting from planned sampling and Measur-ing methods or judgments of timber quality or defect.

For payment purposes, corresponding revisions in quantity and total payment shall be shown in AT.4.3 for each Payment Unit involved. Adjustment in rates will not be made. Adjustment in quantities shall not obligate Forest Ser-vice to designate additional quantities when the original quantity estimate is overstated.

17 Contract 2400-13T, (9/04)

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 (a) Flat Rates and (b) Tentative Rates ad-justed by the escalation procedures in DT.2. Flat Rates and Tentative Rates shall be those listed in AT.4, unless su-perseded by rates redetermined under DT.3 or established for Contract Term Extension.

Current Contract Rates, based on rates redetermined under DT.3 or established under IT.2.3, shall apply to all Payment Units from which removal of timber from Contract Area has not been completed on the effective date of the revised rates, except Current Contract Rates in effect at the time of Release for Cutting shall be applicable:

(a) On Payment Units for Specified Roads Released for Cutting on which clearing has begun and

(b) For not more than two other Payment Units from which removal from Contract Area has begun.

Notwithstanding the exceptions provided in this Section, rates redetermined under BT3.31, BT3.32, and BT3.33 shall apply to all Included Timber removed subsequent to the rate redetermination.

In event there are more than two Payment Units from which timber removal has not been completed on the effec-tive date, the rates in effect at the time of Release for Cutting shall apply to the two units from which the greatest es-timated proportions of Payment Unit quantities have been removed. Otherwise, in released Payment Units, redeter-mined rates or rates established for Contract Term Extension shall apply to the entire quantity shown in AT.4.3 for those units. In addition, Required Deposits shall be made as listed in AT.4 and KT-FT.3.2, or established under DT.3 or IT.2.3.

In the event Termination Date is adjusted under IT.2.1 or IT.2.1.2, Current Contract Rates shall be continued in the same manner as immediately prior to the adjustment period.

“Current Contract Value” is the sum of the products of Current Contract Rates and estimated remaining quantities by species of Included Timber meeting Utilization Standards, less the bid rate for mandatory stewardship projects that have not been completed.

DT.2 Escalation Procedure. Tentative Rates for those species and products listed in AT.4.1 are subject to quar-terly escalation in accordance with the following procedures: The calendar quarter index average for each price index described in AT.5 is the arithmetic average of the three such monthly price indices preceding January 1, April 1, July 1, and October 1. The difference between calendar quarter index average and Base Index listed in AT.4.1 shall be the basis for quarterly escalation. To arrive at Current Contract Rates for Payment Units Released for Cutting during the preceding calendar quarter, Tentative Rates for each species shall be reduced or increased by such difference, ex-cept when the calendar quarter index average is:

(a) Less than the Base Index, the reduction shall not result in a rate below Base Rate or

(b) Greater than the Base Index, the increase shall not exceed the difference between Tentative Rate and Base Rate.

In the event of Contract Term Extension, the escalation procedure will be used during the extension period, ex-cept that adjusted payment rates for any calendar quarter cannot be less than Tentative Rates, for each species and product group, established under IT.2.3 for the extension period.

DT.2.1 Unavailable Index. If an index described in AT.5 is no longer available, Contracting Officer may re-place that index. If Contracting Officer determines that a replacement index does not exist, Current Contract Rates for the remainder of the contract shall be a Flat Rate. Flat Rates will be Tentative Rates adjusted by the arithmetic aver-age of the index described in AT.5 for a 12-month period prior to its becoming unavailable using the quarterly adjust-ment procedure outlined in DT.2. Contracting Officer will determine availability and a beginning point to average the index for Flat Rates. Such Flat Rates are subject to rate redetermination as provided elsewhere under this contract.

DT.3 Rate Redetermination. Rates may be redetermined as set forth in this Section. Bid Premium Rates shall be added to all redetermined rates, except as provided in DT.3.1, DT.3.2, and DT.3.3.

Rate redeterminations shall be made in accordance with the standard Forest Service methods in effect 45 days prior to rate redetermination. Such methods shall take into consideration factors that may affect timber value at rate redetermination date.

Redetermined rates shall not be less than Base Rates listed in AT.4, except for reduction under DT.3.1, DT.3.2, or DT.3.3. Required Deposits shall be redetermined. Redetermined Specified Road construction cost is subject to the limitations of FT.2.6.

DT.3.1 Rate Redetermination for Environmental Modification. In the event of a contract modification un-der IT.3.3 or partial termination under IT.3.4, Contracting Officer shall make an appraisal to determine for each spe-cies the difference between the appraised unit value of Included Timber remaining immediately prior to the revision and the appraised unit value of Included Timber to be cut under the modification. The appraisal shall consider the es-timated cost of any construction work listed in the Schedule of Items that was performed and abandoned.

Tentative Rates and Flat Rates in effect at the time of the revision will be adjusted by said differences to become Current Contract Rates. Accordingly, Base Rates shall be adjusted to correspond to the redetermined rates if rede-termined rates are less than the original Base Rates, subject to a new Base Rate limitation of the cost of essential

18 Contract 2400-13T, (9/04) reforestation or 25 cents per hundred cubic feet or equivalent, whichever is larger. However, existing Base Indices shall not be changed under this Subsection.

Redetermined rates, or differences for rates subject to DT.2, and Required Deposits shall be considered estab-lished under DT.1 for Included Timber removed subsequent to the contract revision.

DT.3.2 Rate Redetermination after Catastrophic Damage. In event of Catastrophic Damage and adjust-ment, if any, of Included Timber, Contracting Officer shall make an appraisal to determine for each species the catas-trophe-caused difference between the appraised unit value of Included Timber remaining immediately prior to the ca-tastrophe and the appraised unit value of existing and potential Included Timber immediately after the catastrophe.

Included Timber is any that would not be eliminated under IT.3.2. Potential Included Timber is any that would be added under IT.3.2.

Tentative Rates and Flat Rates in effect at the time of catastrophe shall be adjusted by said differences to be-come the redetermined rates for the purpose of a contract modification under IT.3.2. Accordingly, Base Rates shall be adjusted to correspond to the redetermined rates if redetermined rates are less than the original Base Rates, subject to new Base Rate limitations of 25 cents per hundred cubic feet or equivalent. However, existing Base Indices shall not be changed under this Subsection.

Upon agreement under IT.3.2, redetermined rates and Required Deposits shall be considered established under DT.1 for Included Timber removed subsequent to Catastrophic Damage.

At time of such appraisal, Specified Road construction cost shall include the estimated cost of any construction work listed in the Schedule of Items performed and abandoned.

DT.3.3 Rate Redetermination for Market Change. In the event of delay or interruption, exceeding 90 days, under IT.3.3, 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 delay or interruption and the appraised unit value of Included Timber immediately after the delay or interruption. The appraisal shall be done after any rate redetermination done pursuant to DT.3.1, using remaining volumes.

Tentative Rates and Flat Rates in effect at the time of delay or interruption or established pursuant to DT.3.1 will be reduced, if appraised rates declined during the delay or interruption, to become Current Contract Rates. Increases in rates will not be considered. Accordingly, Base Rates shall be adjusted to correspond to the redetermined rates if redetermined rates are less than the original Base Rates, subject to a new Base Rate limitation of the cost of essential reforestation or 25 cents per hundred cubic feet or equivalent, whichever is larger. However, existing Base Indices shall not be changed under this Subsection.

Redetermined rates shall be considered established under DT.1 Included Timber removed subsequent to the de-lay or interruption.

DT.3.4 Emergency Rate Redetermination. Forest Service shall redetermine rates if, upon Contractor's ap-plication, Forest Service determies that, because of changes in the timber market since the award date or the last rate redetermination under this provision, the Producer Price Index identified in AT.17 has declined by 25 percent. Rates shall be redetermined under DT.3 and shall be considered established under DT.1 for timber Scaled subsequent to Contractor’s application. This Subsection shall not apply during Contract Term Extension.

DT.4 Other Payment Rates.

DT.4.1 Material and Quantities Not in AT.2. Incidental amounts of products or portions of trees of species listed on AT.2 that do not meet Utilization Standards may be removed without charge. Such material may be pur-posely removed in more than incidental amounts without charge upon written approval of Contracting Officer, and subject to agreement on deposits if needed for road maintenance and use.

Other species or products not listed in AT.2 may be cut and removed upon written approval of Contracting Officer and subject to agreement on rates of payment and deposits if needed for road maintenance and use.

When any material suitable for use in a product form included in AT.2 is removed in another product form, the rates of payment shall be not less than but approximately equivalent to Current Contract Rates and Required Depos-its.

DT.4.2 Timber Cut Through Mistake. Undesignated timber meeting Utilization Standards, cut by Contractor through mistake and included by Contracting Officer under CT.1.4, shall be removed and paid for at Current Contract Rates and Required Deposits, unless such material is not listed in AT.2. In such event, Contracting Officer, in accord with standard Forest Service methods, shall establish rates to be paid.

DT.4.3 Undesignated Timber Damaged Without Negligence. Undesignated timber meeting Utilization Standards, damaged without negligence by Contractor and designated by Forest Service under CT.1.3.1, 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 tim-ber meeting Utilization Standards and unnecessarily damaged or negligently or willfully cut by Contractor, if included by Contracting Officer under CT.1.3.2, shall be cut, removed, and paid for at Current Contract Rates and Required Deposits that are in addition to liquidated damages under DT.4.5.

19 Contract 2400-13T, (9/04)

If such timber is of a species or size not listed in AT.2 or is of a quality different from designated timber, Contract-ing 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, as described in DT.4.4, on portions of Contract Area cut over under this contract is likely to cause substantial silvicul-tural 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 Contracting Officer, Contractor shall remove such dam-aged or cut timber and pay for it at Current Contract Rates.

ET.0—PAYMENTS

ET.1 Amount Payable for Timber. Except as provided in DT.1, 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. A “Payment Unit” is a portion of Contract Area established for payment purposes.

ET.2 Integrated Resource Account. “Integrated Resource Account” is an account maintained by Forest Service of all Contractor’s deposits, credits, payment guarantees, and the charges for:

(a) Timber at Current Contract Rates;

(b) Slash disposal and road maintenance at Required Deposit rates;

(c) Cooperative work at rates established by specific agreement under ET.2.1.8;

(d) Stewardship Credits established; and

(e) Other charges provided in this contract.

Cash deposits shall be recorded currently in such account.

Charges for Payment Units Released for Cutting shall be made when Forest Service prepares and furnishes to Contractor periodic statements of quantity and value of such timber. Charges subject to escalation under DT.2 shall be made initially on the basis stated in ET.2.1.4 and shall be adjusted at the end of each calendar quarter, as pro-vided in DT.2.

Charges shall be made according to DT.4 when trees are subsequently Marked or designated for cutting.

ET.2.1 Cash Deposits. Within the limitations of this Subsection, Contractor shall make cash deposits to meet Contractor’s obligations within 15 days of billing by Forest Service. Deposits shall be made to Forest Service, U.S.D.A., by mail or delivery to the address to be furnished by Forest Service. Forest Service shall explain the bill at the time it requests each deposit.

ET.2.1.1 Downpayment. The downpayment amount shown in AT.15 may not be applied toward any other payment required under the provisions of this contract, except damages determined pursuant to JT.4, trans-ferred to other contracts, or refunded until stumpage value representing 25 percent of the total bid value of the con-tract is shown on Integrated Resource Account to have been cut, removed, and paid for or the estimated value re-maining to be cut and removed, as shown on Integrated Resource Account, is equal to or less than the amount of the downpayment. For lump sum contracts, the downpayment may be applied to payment for release of the single pay-ment unit.

ET.2.1.2 Advance Deposits. Contractor agrees to make cash deposits in advance of cutting to meet charges under ET.2.

Forest Service billings for advance cash deposits shall be in such amounts that Integrated Resource Account will maintain an unobligated balance that covers the applicable charges for Payment Units Released for Cutting and des-ignated material not included in AT.2 expected to be cut within the next 60 days. This advance cash deposit may be reduced to a smaller amount by the terms of ET.2.1.1, ET.2.1.3, ET.2.1.5, and/or ET.2.1.7. Except for amounts re-quired pursuant to ET.2.1.1, ET.2.1.3, and ET.2.1.7, Contractor shall not be required to make advance deposits above those required under this Item.

When the credit balance in Integrated Resource Account is exceeded by the charges for timber within Payment Units Released for Cutting and for the estimated quantity to be cut in 10 days of cutting designated material not in-cluded in AT.2, Contracting Officer will suspend all or any part of Contractor’s Operations until payment or acceptable payment guarantee is received.

ET.2.1.3 Periodic Payment Schedule. Contractor shall make periodic payments for stumpage value, as shown in AT.16.

In the event Contractor has not paid the amount(s) stated in AT.16 as stumpage for quantity removed by the peri-odic payment determination date(s), Forest Service shall issue a bill for collection for the difference between the re-quired amount and payments made by Contractor. If payment(s) fall due on a date other than a normal billing date, the payment date shall be extended to coincide with the next Integrated Resource Account billing date.

The amount of the periodic payment(s) will be reduced if the payment(s) would result in Contractor’s credit bal-ance for timber charges exceeding the Current Contract Value.

Only cash may be used for this purpose. No other form of payment is acceptable. Forest Service will apply the payments to subsequent charges on this contract under the terms of ET.2.1.2.

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Except for Contract Term Extensions under I.2.3, periodic payment determination date(s) that have not been reached shall be adjusted one day for each additional day of contract time granted.

ET.2.1.4 Deposits for Charges Subject to Escalation. Deposits requested to cover estimated charges for timber subject to escalation under DT.2 shall be based upon Current Contract Rates and related deposits in effect during previous calendar quarter.

ET.2.1.5 Deposits When Payment Guaranteed. To the extent payment guarantee is provided under ET.3, requirements for advance cash deposits under ET.2.1.2 shall be waived for the value of timber on Contract Area that has been Released for Cutting, but not removed, and for the estimated value of products removed from Contract Area for not more than a monthly billing period, subject to the provisions of ET.4.

ET.2.1.6 Blanket Cash Deposits. Contractor may make cash deposits under a written agreement to cover charges made under this and other contracts within the same National Forest. Forest Service shall allocate such deposits to such contracts. When there is to be no timber cutting hereunder for 30 days or more and payment of current charges has been made, the allocation to this contract shall be reallocated to other contracts within the same National Forest at Contractor’s request. Contractor shall not start cutting until allocation has again been made to this contract.

ET.2.1.7 Extension Deposits. In the event of Contract Term Extension, Forest Service shall divide the difference between Current Contract Value as of the start of any Contract Term Extension and the credit balance of any deposit made pursuant to ET.2.1.3 by the number of whole months remaining in Normal Operating Season(s) within the extension period to determine the amount of each “Extension Deposit.”

Contractor shall make the initial Extension Deposit prior to Forest Service executing the contract modification. In response to Forest Service billing under ET.2.1, Contractor shall make advance cash deposits. Such deposits shall at least equal each Extension Deposit required for each whole month remaining in Normal Operating Season(s) during the extension period. Extension Deposits shall be due by the last day of each month during Normal Operating Season whether or not any Payment Unit is to be released.

Due dates for Extension Deposits during the extension period may be delayed when Contractor earns Contract Term Adjustment if Termination Date, as adjusted, results in one or more additional complete months within Normal Operating Season(s).

ET.2.1.8 Cooperative Deposits. On a basis of cooperation or assistance (16 USC 572) and by a written agreement, Forest Service shall perform all or portions of the work that Contractor is obligated to perform under this contract, as well as furnish other Services in connection with activities under this contract. When Forest Service is to perform such work, Contractor shall make one or more deposits to cover the estimated cost of the work. On request of Contractor, Forest Service shall render monthly accounts, as may be specified in such agreement.

ET.2.2 Stewardship Credits. “Stewardship Credits” are credits that are earned and established when work described in KT-GT.9 has been performed and accepted. Stewardship Credits shall be earned at the rate as shown in AT.4.4. Earned Stewardship Credits may be used to pay for Included Timber value in excess of Base Rates and Re-quired Deposits. Base Rates and Required Deposits must be paid in cash.

ET.2.2.1 Progress Estimates. Forest Service shall make timely estimates of Contractor’s progress on stewardship projects. On the basis of such progress estimates, Forest Service shall credit Integrated Resource Ac-count each month as such work proceeds.

ET.2.2.2 Excess Stewardship Credits. In the event there are unused established Stewardship Credits when all of the Included Timber has been cut and removed, Forest Service, at its option, shall either add more timber or make cash payment for the unused Stewardship Credits.

ET.2.2.3 Excess Timber Value. In the event the value of Included Timber exceeds the total value of all of the mandatory projects shown in AT.4.4, plus the optional projects shown in AT.4.4 that Contractor has been author-ized to perform:

(a) Contracting Officer shall authorize additional optional projects shown in AT.4.4 if the excess timber value ex-ceeds 10 percent of the total timber value, or

(b) Contracting Officer shall authorize additional optional projects shown in AT.4.4 or require cash payment if the excess timber value is less than 10 percent of the total timber value, or

(c) Contractor shall make cash payment for the excess timber value if there are no remaining optional projects shown in AT.4.3.

ET.2.2.4 Cash Payment for Stewardship Projects. In lieu of providing timber for established Steward-ship Credits, Forest Service may elect to provide a cash payment to Contractor.

ET.2.3 Temporary Reduction of Downpayment. When, under IT.3.3, Contracting Officer requests Contrac-tor to delay or interrupt Contractor’s Operations for more than 90 days, the downpayment amount being held on de-posit may be temporarily reduced upon the written request of Contractor or at the discretion of Contracting Officer. For the period of the delay or interruption, the downpayment on deposit may be reduced to $1,000 or two (2) percent of the downpayment amount listed in AT.15, whichever is larger.

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Any downpayment amount temporarily reduced pursuant to this Subsection may be refunded or transferred at the request of Contractor. However, if Contractor has outstanding debt owing the United States, Contracting Officer must apply the amount of downpayment that could be refunded to the debt owed in accordance with the Debt Collection Improvement Act, as amended (31 USC 3701, et seq.).

Upon Contractor’s receipt of bill for collection and written notice from Contracting Officer that the basis for the de-lay or interruption no longer exists, Contractor shall restore the downpayment to the full amount shown in AT.15 within 15 days after the date the bill for collection is issued, subject to the provisions of ET.4. Contractor shall not resume contract operations until the downpayment amount is fully restored.

ET.2.4 Refund of Excess Cash. If at any time the credit balance of Integrated Resource Account exceeds the charges for timber within Payment Units Released for Cutting and for designated material not included in AT.2 that Forest Service estimates will be cut within the next 60 days, any portion of such excess that is due to cash in the ac-count shall be refunded, if requested by Contractor, unless deposited under ET.2.1.1, ET.2.1.3, or ET.2.1.7. If Con-tractor plans no cutting within the next 60 days, Forest Service may refund the entire unencumbered cash balance, except as provided in this Subsection. However, Forest Service shall not reduce the credit balance below the total value of partially cut Payment Units and designated material not included in AT.2 that is cut before operations cease.

After a refund for a shutdown, deposits shall be made to meet the requirements of ET.2.1.2 before additional timber may be cut.

ET.2.5 Refund after Final Charges for Released Timber. Any cash deposit, in excess of that required to meet charges under ET.2, shall be refunded or transferred within 15 days of Contractor’s request after final charges for Included Timber have been made, except for amounts estimated to be required under JT.5.

ET.3 Payment Guaranteed by Bond or Deposited Securities. To guarantee payment, Contractor may furnish and maintain an acceptable surety bond or deposit in a Federal Depository negotiable securities of the United States.

The securities shall be deposited through the Regional Fiscal Agent accompanied by a power of attorney and agree-ment authorizing the bond-approving officer to sell or collect such securities if payment is not made within 15 days of billing by Forest Service. The penal sum of such surety bond or the market value at time of deposit of such negotiable securities shall be the maximum amount of the payment guaranteed.

For payment purposes, penal sum of the surety bond or market value at time of deposit of negotiable securities shall be in lieu of the performance bond furnished under JT.1.

ET.3.1 Blanket Bond. If Contractor furnishes an acceptable bond, or deposits securities, in accordance with ET.3, to guarantee payment for timber from this and other contracts within the same National Forest, the amount of such bond or deposited securities shall be allocated to such contracts by Forest Service. When there is to be no tim-ber cutting hereunder for 30 days or more and payment of current charges has been made, the allocation to this con-tract shall be reallocated to other contracts at Contractor’s request. Contractor shall not start cutting hereunder until this contract receives an allocation that will meet the obligation for payment guarantee.

ET.3.2 Letters of Credit for Payment Bond. Notwithstanding the provisions of ET.3, Contractor may use letters of credit in lieu of a surety bond for payment bond purposes when approved by Contracting Officer.

ET.4 Payments Not Received. (a) Payments are due and payable on the date of issue indicated on the bill for collection. When a payment for timber cut and other charges is not received at the location designated by Forest Ser-vice by the date allowed in the bill for collection for receipt of payment, Contracting Officer will suspend all or any part of Contractor’s Operations until payment or acceptable payment guarantee is received. Other charges include, but are not limited to:

(i) Slash disposal and road maintenance deposits;

(ii) Cooperative work at rates established by specific agreement under ET.2.1.8;

(iii) Damages pursuant to JT.4;

(iv) Road use fees;

(v) Restoration of downpayment pursuant to ET.2.2;

(vi) Periodic payments pursuant to ET.2.1.3;

(vii)Extension Deposits pursuant to ET.2.1.7; and (viii)Other mandatory deposits.

(b) Failure to pay amounts due by the date allowed in the bill for collection for receipt of payment shall be consid-ered a breach under JT.3. The 30-day notice period prescribed therein shall begin to run as of the end of business on the date allowed for receipt of payments. If the performance or payment is guaranteed by surety bond, the surety will receive a copy of the written notification of breach. Demand will be made on the surety or other institution providing the guarantee or bond instrument for immediate payment 10 days after issuance of written notification of the breach.

(c) Pursuant to the Debt Collection Improvement Act of 1996, as amended, if payment is not received by Forest Service within 15 days after the date of issue indicated on the bill for collection:

(i) Simple interest shall be assessed at the higher of the Current Value of Funds Rate or the Prompt Pay-ment Rate as established by the Secretary of the Treasury. Interest will begin to accrue as of the date of issue in-dicated on the initial bill for collection.

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(ii) Debtors will be assessed administrative charges, in addition to the delinquent amount due. Administrative charges are those additional costs incurred by the Government in processing, handling, and collecting delinquent debts.

(iii) A penalty charge of six (6) percent per annum will be assessed on any portion of a debt delinquent more than 90 days. This penalty charge is in addition to interest and administrative charges under paragraphs (c)(i) and (c)(ii). The penalty charge shall accrue from the date of issue indicated on the bill for collection and shall be as-sessed on all outstanding amounts, including interest and administrative costs assessed under paragraphs (c)(i) and (c)(ii).

(iv) Payments will be credited on the date received by the Federal Depository or Collection Officer designated on the bill for collection.

(d) Forest Service remedies for Contractor’s failure to make payment for timber cut and other charges when due, except for accrual of interest, suspension of all or any part of Contractor’s Operations, and administrative offset, shall be stayed for so long as:

(i) A bona fide dispute exists as to Contractor’s obligation to make such payment and

(ii) Contractor files and prosecutes a timely Claim.

FT.0—TRANSPORTATION FACILITIES

FT.1 Authorization. Contractor is authorized to construct and maintain roads, bridges, and other transportation facilities, as needed for harvesting Included Timber and completing stewardship projects on National Forest and other lands where Forest Service has such authority. As used in this contract “construct” includes “reconstruct.”

Location and construction of Specified Roads shall be in accordance with FT.2. Unless otherwise provided herein, construction may be progressive during this contract. Maintenance shall be governed by FT.3. The location and clear-ing widths of all Temporary Roads or facilities shall be agreed to in writing before construction is started. “Temporary Roads” are roads other than Specified Roads that are constructed by Contractor for the purpose of harvesting In-cluded Timber or completing stewardship projects.

Contractor is authorized to cut and use for construction without charge construction timber designated by agree-ment.

FT.1.1 Requirements of Rights-of-Way. Contractor’s road construction and use of rights-of-way identified in attached list or KT-FT.1.1 shall be confined to rights-of-way and limited by the related easements and stipulations, if any, unless Contractor makes other arrangements that will not infringe upon or adversely affect the grantee’s rights.

Easements or right-of-way documents are available in the offices of the Forest Supervisor and District Ranger.

FT.1.2 Use of Roads by Contractor. Except as provided herein, Contractor is authorized to use existing Na-tional Forest system roads and Specified Roads listed in AT.7, when Forest Service determines that such use will not cause damage to the roads or National Forest resources.

If Contractor’s use of an existing temporary or National Forest system road, not listed in AT.7, cannot be satisfac-torily accommodated without reconstruction, Contractor shall be authorized to use such road upon agreement as to the minimum reconstruction work that Contractor shall perform before hauling. When appropriate, such road shall be included in AT.7 as an alternate facility under FT.2.6.

KT-FT.1.2 lists existing roads shown on Contract Area Map that for such reasons as limitations in structural ca-pacity, safety, and protection of soil, water, and roads:

(a) Cannot be used for log hauling or

(b) May be used only under the restrictive limitations stated therein.

FT.2 Specified Roads. “Specified Roads” are roads, including related transportation facilities and appurtenances, shown on Contract Area Map and listed in AT.7. Contractor shall construct Specified Roads used under this contract.

Construction initiated by Contractor on any such Specified Road shall be completed to an agreed terminus that meets Contractor’s needs and prevents unnecessary impact on National Forest resources. Construction to such terminus shall be in full accordance with Plans and specifications identified in AT.7 or specifications and the Schedule of Items attached hereto, except for agreed adjustments needed to accommodate such terminus. For each pay unit, the "Schedule of Items" itemizes quantity of work and materials and cost, with method of measurement and basis for payment. Forest Service shall revise the Schedule of Items to show the estimated cost for the portion constructed to the revised terminus as a separate segment.

A Temporary Road shall not be constructed substantially on the location for a Specified Road, except by agree-ment.

In event of agreed substitution or revision of construction design, specifications, or performance responsibility un-der FT.2.1.2, FT.2.5, FT.2.6, or KT-FT.2.1.5, AT.7 shall be modified. If Contractor does not need a Specified Road or a portion of a Specified Road for harvesting Included Timber or completing stewardship projects and the Specified Road is not constructed, the deletion of the road or road segment will be a mutually agreed Design Change and Inte-grated Resource Account will be adjusted for the reduction in cost, as provided in FT.2.5.

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References in the contract to specifications, standards, or test methods adopted by the American Association of State Highway and Transportation Officials (AASHTO), American Society for Testing and Materials (ASTM), General Services Administration (GSA), or other recognized national technical associations shall mean specifications, stan-dards, or test methods, including interim or tentative issues, that are in effect on the date of contract advertisement.

FT.2.1 Engineering. Forest Service completed survey and design for Specified Roads prior to contract adver-tisement, unless otherwise shown in AT.8 or Contractor survey and design are specified in AT.7. On those roads for which Forest Service completes the design during the contract, the design quantities shall be used as the basis for revising estimated costs stated in the Schedule of Items and adjusting Integrated Resource Account.

Forest Service engineering shall be completed according to the schedule in AT.8. Should Forest Service be un-able to perform the designated survey and design by the completion date or other agreed to time, upon written agreement, Contractor shall assume responsibility for such work. In such event, Contracting Officer shall revise:

(a) AT.7 to show Contractor’s performance responsibility.

(b) The Schedule of Items to include costs of survey and design, as provided under FT.2.4, and adjust Integrated Resource Account, as provided in FT.2.5.