Appendix_B.pdf

Solicitation No. AG-9A40-S-17-4000 4S81 Stewardship Project

APPENDIX B

STEWARDSHIP CONTRACT TIMBER REMOVAL SPECIFICATIONS

*BT.0 CONTRACT AREA

*BT.1 Contract Area Map *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.1.6 Other Material *CT.2 Utilization and Removal of Included Timber *CT.3 Timber Designations *CT 3.2.2 Other Authorized Clearings *CT.3.5 Individual Trees *CT.3.7 Minor Changes *CT.4 Volume Estimate

*DT.0 RATES OF PAYMENT

*DT.1 Current Contract Rates *DT.2 Escalation Procedure *DT.2.1 Unavailable Index *DT.3 Rate Redetermination *DT.3.1 Rate Redetermination for Environmental Modification *DT.3.2 Rate Redetermination after Catastrophic Damage *DT.3.3 Rate Redetermination for Market Change *DT.3.4 Emergency Rate Redetermination *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

GT.0 OPERATIONS

*GT.3 Control of Operations *GT.4 Conduct of Logging *GT.4.1 Felling and Bucking *GT.4.1.1 Felling in Clearings *GT.4.1.2 Stump Heights *GT.4.1.3 Limbing *GT.4.2 Skidding and Yarding *GT.4.2.2 Landings and Skid Trails *GT.4.2.3 Skidding on Roads *GT.6.3 Temporary Roads *GT.6.4 Landings *GT.6.5 Skid Trails and Fire Lines *GT.6.6 Current Operating Areas *GT.6.7 Erosion Control Structure Maintenance *GT.7 Slash Disposal *GT 8 Measuring **GT.8.1 Product Identification *GT.9 Stewardship Projects.

IT.0 OTHER CONDITIONS

*IT.1 Title and Liability *IT.1.1 Title Passage *IT.1.2 Liability for Loss*IT.2 Period of Contract *IT.5 Sale of Other Materials

KT.0—SPECIAL PROVISIONS

WO-KT-CT.1.1# Timber Subject to Agreement (9/04) R5-KT-CT.3.5# Designation of Timber, Cutting Unit Boundaries and Payment Unit Boundaries (6/2012) R5-KT-FT.3.5# Road and Water Supply Use (5/2008) R5-KT-GT.2.2# Protection of Improvements (5/2008) R5-KT-GT.3.1.4 Release of Payment Units (2/2005) R5-KT-GT.3.1.5# Project Operations Schedule (12/2006) R5-KT-GT.3.3.1 Log Trucking (2/2005) R5-KT-GT.3.7 Substitute Methods (2/2005) R5-KT-GT.4.1# Felling, Bucking, and Limbing (8/2007) R5-KT-GT.4.2# Ground Based Skidding (12/2006) R5-KT-GT.6# Erosion Prevention and Control (5/2008)

R5-KT-GT.7# - SLASH TREATMENT. (12/2006)

WO-KT-GT.8-2# - Measuring - Option 2 (2/2005)

R5-KT-GT.8.3 – ACCOUNTABILITY (2/2005)

R5-KT-HT.2# - SPECIFIED FIRE PRECAUTIONS

(6/2012)

R5-KT-HT.2.2# - EMERGENCY PRECAUTIONS

WO-KT-I.6.8# – USE OF TIMBER (Option 1) (9/2004)

Location and Area:

This Contract Area of 423.5 acres more or less is located in: T8S R23E SEC 24, 25, 26, 35, 36; T7S R24E

SEC 8, 16, 17, 19, 20, 21, 30

Volume Estimate and Utilization Standards

Species Group Product Estimated Quantity *

Unit of Measure

Minimum Specifications Merchantable Tree Piece Required to be Removed

Diameter Breast High

(d.b.h.)

(inches)

Number of

Minimum Pieces per Tree

Length

(feet)

Diameter Inside

Bark at Small End

Net Merch.

Factor

Combined Softwoods Biomass 2,882 CCF 10 1 10 N/A N/A

Timber Subject to Agreement

NA

Total Quantity 2,882 1/ Enter Merchantability Factor (Merch. Factor) or Net Scale in % of Gross Scale, whichever is appropriate.

Timber Designations, acres are approximate:

Number Acres

Clearcutting Units (CT.3.1) Overstory Removal Units (CT.3.3) Understory Removal Units (CT.3.4) Individual Trees (CT.3.5) 406.5 Incompletely Measured (CT.3) Designation by Description or Prescription (KT-CT.3)

High Stumps

Species Product

Maximum Stump Height

All Sawtimber/Biomass 12

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 BT.l.0, Section BT.l.1, Subsection BT.l.1.1, and Item BT.l.1.1.1. 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 4S81 Stewardship Contract except where otherwise specifically referenced. “Timber” when used in this appendix includes timber and other products.

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 approximate acreage are stated in AT.1. Payment Units may be revised and additional ones may be established only by written 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 adjustment of Payment Unit size shall not be less than a rate necessary for removal of all Included Timber during Normal 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; 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 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 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

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) 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 unnecessarily damaged or negligently or willfully cut by Contractor, if included by Contracting Officer.

CT.1.3.4 Minor Damage by Natural Causes. Undesignated trees within Contract Area and meeting Utilization 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 construction 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.1.6 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 varied 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.3.2.2 Other Authorized Clearings. Timber within authorized clearings for Temporary Roads, landings, or other construction clearings is designated for cutting. Quantities of such timber are not included in

AT.2.

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.3.7 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.

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 Payment Units. Estimated quantities for Payment Units so revised shall be adjusted as necessary.

CT.4 Volume 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 utilization by Contractor;

(d) Timber within clearing limits of Temporary Roads or other authorized clearings and that is not designated under 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.

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 adjusted by the escalation procedures in DT.2. Flat Rates and Tentative Rates shall be those listed in AT.4, unless superseded 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 effective date, the rates in effect at the time of Release for Cutting shall apply to the two units from which the greatest estimated proportions of Payment Unit quantities have been removed. Otherwise, in released Payment Units, redetermined 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 quarterly 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, except 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, except 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 replace 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 average of the index described in AT.5 for a 12-month period prior to its becoming unavailable using the quarterly adjustment 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 under IT.3.3 or partial termination under IT.3.4, Contracting Officer shall make an appraisal to determine for each species 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 estimated 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 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, or differences for rates subject to DT.2, and Required Deposits shall be considered established 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 adjustment, if any, of Included Timber, Contracting Officer shall make an appraisal to determine for each species the catastrophe- caused difference between the appraised unit value of Included Timber remaining immediately prior to the catastrophe 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 become 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 delay or interruption.

DT.3.4 Emergency Rate Redetermination. Forest Service shall redetermine rates if, upon Contractor's application, Forest Service determines 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 purposely 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 Deposits.

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.4.2.1 Designated Timber Cut But Not Removed. Standard timber shall be removed prior to acceptance of a Subdivision 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 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 timber 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.

If such timber is of a species or size not listed in AT.2 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, as described in DT.4.4, 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 Contracting Officer, Contractor shall remove such damaged 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 provided in DT.2.

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

National Forest at Contractor’s request. Contractor shall not start cutting until allocation has again been made to this contract.

GT.0—OPERATIONS

GT.3 Control of Operations. Under this contract, “Contractor’s Operations” shall include activities of or use of equipment of Contractor, Contractor’s employees, agents, Subcontractors, or their employees or agents, acting in the course of their employment in operations hereunder on National Forest lands or within Forest Service protection boundary (unless acting under the immediate supervision of Forest Service).

Contractor’s Operations shall be conducted in a workmanlike and orderly manner. The timing of required Forest Service designation of work on the ground and the performance of other Forest Service work shall not be such as to cause unnecessary delay to Contractor.

“Release for Cutting” is written authorization to Contractor to begin cutting in a Payment Unit. Upon Contractor’s request for release of a Payment Unit, Forest Service shall either:

(a) Give tentative approval and bill Contractor as necessary under ET.2.1 or

(b) Reject the request, stating reasons for rejection.

When payment or payment guarantee has been confirmed, Forest Service shall issue Release for Cutting within 10 days. Contractor shall not cut timber in any Payment Unit until it is Released for Cutting.

GT.4 Conduct of Logging. Unless otherwise specifically provided herein, Contractor shall fell trees designated for cutting and shall remove the portions that meet Utilization Standards, as provided in CT.2, prior to acceptance of Payment Unit for completion of logging and stewardship projects under GT.3.6. Forest Service may make exceptions 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 KT-GT.4 provisions set forth requirements to meet special or unusual logging conditions:

GT.4.1 Felling and Bucking. Felling shall be done to minimize breakage of Included Timber and damage to residual timber. Unless agreed otherwise, felling shall be done by saws or shears. Bucking shall be done to permit removal of all minimum pieces set forth in AT.2. Contractor may buck out cull material when necessary to produce pieces meeting Utilization Standards. Such bucked out material shall contain a minimum amount of sound wood, not in excess of the net Measure in percentage of gross Measure, or based on the merchantability factor, whichever is stated in AT.2. If necessary to assess extent of defect, Contractor shall make sample saw cuts or wedges.

GT.4.1.1 Felling in Clearings. Insofar as ground conditions, tree lean, and shape of clearings permit, trees shall be felled so that their tops do not extend outside Clearcutting Units, construction clearings, and areas of regeneration cutting.

GT.4.1.2 Stump Heights. Stumps shall not exceed, on the side adjacent to the highest ground, the maximum heights set forth in AT.6, except that occasional stumps of greater heights are acceptable when Contractor determines that they are necessary for safe and efficient conduct of logging. Unless otherwise agreed, Contractor shall re-cut high stumps so they will not exceed heights specified in AT.6 and shall dispose of severed portions in the same manner as other logging debris. The stump heights shown in AT.6 were selected with the objective of maximum reasonable utilization of the timber, unless Contract Area Map shows special areas where stump heights are lower for aesthetic, land treatment, or silvicultural reasons.

GT.4.1.3 Limbing. When Forest Service determines it is necessary to minimize damage to the residual stand during skidding, Contractor shall cut exposed limbs from products prior to skidding. Contractor may leave uncut those limbs that cannot be cut with reasonable safety.

GT.4.2 Skidding and Yarding. Methods of skidding or yarding specified for particular areas, if any, are indicated on Contract Area Map. Outside Clearcutting Units and construction clearings, insofar as ground conditions permit, products shall not be skidded against reserve trees or groups of reproduction and tractors shall be equipped with a winch to facilitate skidding.

GT.4.2.2 Landings and Skid Trails. Location of all landings, tractor roads, and skid trails shall be agreed upon prior to their construction. 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 under FT.1.2 only by prior written agreement.

GT.6.3 Temporary Roads. As necessary to attain stabilization of roadbed and fill slopes of Temporary Roads, Contractor shall employ such measures as outsloping, drainage dips, and water-spreading ditches.

After a Temporary Road has served Contractor’s purpose, Contractor shall give notice to Forest Service and shall remove bridges and culverts, eliminate ditches, outslope roadbed, remove ruts and berms, effectively block the road to normal vehicular traffic where feasible under existing terrain conditions, and build cross ditches and water bars, as staked or otherwise marked on the ground by Forest Service. When bridges and culverts are removed, associated fills shall also be removed to the extent necessary to permit normal maximum flow of water.

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.6.5 Skid Trails and Fire Lines. Contractor shall construct cross ditches and water-spreading ditches on tractor roads and skid trails, where staked or otherwise marked on the ground by Forest Service. Forest Service shall designate cross ditching on Contractor-built fire lines prior to or during construction. By agreement, Contractor may use other comparable erosion control measures, such as backblading skid trails, in lieu of cross ditching.

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

Such protection shall be provided, prior to end of a Normal Operating Season, for all disturbed, unprotected ground that is not to be disturbed further prior to end of operations each year, including roads and associated fills, tractor roads, skid trails, and fire lines. When weather permits operations after Normal Operating Season, 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. Contracting Officer may agree to perform such structure maintenance under ET.2.1.8, if requested by Contractor, subject to agreement on rates. 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 KT-GT.7 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 KT-GT.8.

GT.8.1 Product Identification. For contracts west of the 100th meridian, before removal from Contract Area, unless Contracting Officer determines that circumstances warrant a written waiver or adjustment, Contractor shall:

(a) Hammer brand all products that are eight (8) feet or more in length and one-third (1/3) or more sound, on each end that is seven (7) inches or more in diameter.

(b) West of the 100th meridian, paint with a spot of highway-yellow paint all domestic processing products that are eight (8) feet or more in length and one-third (1/3) or more sound, on each end that is seven (7) inches or more in diameter. Each paint spot must be not less than three (3) square inches in size.

Contracting Officer shall assign brands and, if Contract Area is within a State that maintains a log brand register, brands shall be registered with the State. Contractor shall use assigned brand exclusively on logs from this contract until Contracting Officer releases brand. Contractor will furnish and apply highway-yellow paint of a lasting quality (oilbase or equivalent).

All hammer brands and/or highway-yellow paint must remain on logs until they are domestically processed.

Contractor shall replace identifying marks if they are lost, removed, or become unreadable. Contractor may remanufacture products into different log lengths. Except for logs remanufactured as part of the mill in-feed process immediately before processing, remanufactured products must be rebranded with the assigned contract brand and repainted with highway-yellow paint, unless otherwise agreed to in writing by Contracting Officer. For such remanufactured products, Contracting Officer may approve use of a brand to be used exclusively as a catch brand, in lieu of the assigned contract brand.

GT.9 Stewardship Projects. Performance of stewardship projects shall be in accordance with the specifications in KT-GT.9.

All of the mandatory stewardship projects, as shown in AT.4.4, shall be performed. Optional stewardship projects, as shown in AT.4.4, shall be performed when authorized in writing by Contracting Officer. Such authorization may be for all or a portion of the quantity shown. Optional stewardship projects may be selected and authorized in any order by the Contracting Officer. Upon written request of Contractor, additional optional stewardship projects shall be authorized; however, Contracting Officer shall not be obligated to authorize additional stewardship projects if three or more authorized optional stewardship projects or any of the mandatory stewardship projects remain uncompleted. Contracting Officer shall not be obligated to authorize additional optional stewardship projects at any time if Contracting Officer determines that there is insufficient value of remaining designated timber to cover the value of additional stewardship projects.

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 Measured, removed from Contract Area or other authorized cutting area, and paid for, at which time title shall vest in Contractor. For purposes of this Subsection, timber in Payment Units Released for Cutting covered by cash deposit or payment guarantee under ET.3 shall be considered to have been paid for. Title to any Included Timber that has been Measured and paid for, but not removed from Contract Area or other authorized cutting area by Contractor on or prior to Termination Date, 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 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 for reasons that would qualify for Contract Term Adjustment. Deterioration or loss of value of salvage timber is not an unexpected event, except for deterioration due to delay or interruption that qualifies for Contract Term Adjustment or under IT.3.3.

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 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 that will materially interfere with Contractor’s Operations. Contractor shall not be obligated to do any work made necessary by the action of others.

KT.0—SPECIAL PROVISIONS

In accordance with AT.19, the Sections, Subsections, and Items therein listed are attached and made a part hereof. The identifier after the K indicates the Part, Section, Subsection, or Item that is being supplemented or modified by each particular provision included in this Part.

WO-KT-CT.1.1# – TIMBER SUBJECT TO AGREEMENT. (9/04) In addition, there is within Contract Area an unestimated quantity of:

Species Product

Combined Softwood

Biomass/cull logs that shall be Included Timber upon written agreement.

R5-KT-CT.3.5# - DESIGNATION OF TIMBER, CUTTING UNIT BOUNDARIES, AND

SUBDIVISION/PAYMENT UNIT BOUNDARIES (6/2012) Trees are designated for cutting under BT.3.5# only if designated as shown in the Timber Designation table below. The boundaries of Subdivisions/Payment Units and Cutting Units are designated as shown in the Boundary Designation table below. Trees used for boundary designation are not to be cut.

SPECIFICATIONS PURSUANT TO R5-KT-CT.3.5# - DESIGNATION OF TIMBER, CUTTING UNIT

BOUNDARIES, AND SUBDIVISION/PAYMENT UNIT BOUNDARIES

Timber Designation Table

Cutting Unit/ Subdivision/Area/Payme nt Unit

Tree Paint Color

Designation or Specification

Contract Area

Green

Hazard Tree. Notwithstanding BT.3.2 all dead and unstable live trees which are leaning towards a road or are otherwise hazardous to a road, and are sufficiently tall to reach Contractor's landings or the roadbed of National Forest System roads within Contract Area, shall be felled by Contractor when Marked in the specified paint color above and below stump height by Forest Service in advance of felling any other timber in the vicinity. Pieces meeting Utilization Standards from such dead and unstable live trees shall be removed unless Contractor is notified in writing that removal would cause unacceptable damage to areas requiring special protection such as residual timber, roads, administrative sites, streamside management zones, and areas identified on Contract Area Map or on the ground.

Green

Individual Tree Mark. Individual trees are designated for cutting only if Marked above and below stump height with the specified paint color.

N/A

Leave Tree Mark. All live < > are designated for cutting unless Marked as leave trees. Leave trees are Marked above and below stump height with the specified paint color. Contract Area Map indicates areas plainly identified on the ground where leave trees are Marked to be left uncut.

N/A

Wildlife Trees. Notwithstanding the designation for cutting under BT.3.l, BT.3.3, BT.3.4, or BT.3.5, trees which are identified by standard Forest Service metal wildlife tree sign or painted with the specified paint color on the uphill and downhill side, shall be left uncut. In event such trees are destroyed in Contractor's Operations, Forest Service may designate alternate trees to be saved.

Black Marked Out Trees. When it is necessary to delete previously marked trees, an unique tree marking paint color will be Marked over or adjacent to the original mark, but will not obscure the original marking. Trees Marked with the original marking paint color and the unique tree marking paint color are not Included Timber.

N/A Designation by Spacing KT-CT.3.5.1#

N/A Designation by Species and Diameter, KT-CT.3.5.2#

N/A Designation by Damage Class, KT-CT.3.5.3#

N/A Designation by Row Spacing, KT-CT.3.5.4#

Subdivision/Payment Unit and Cutting Unit Boundary Designation Table

Subdivision/Payment Unit Boundary Paint Color

Boundary Designation

All Subdivisions Orange Signs with cut unit numbers will be on roads.

Cutting unit boundaries (except along roads & perennial streams) are designated with ORANGE tracer paint, one horizantal band at DBH with at least two stump marks at ground level. Orange painted Boundary trees are not designated for cutting.

Units 1 and 4 Fall and Leave

N/A Flagging – combination of blue/black diagonal stripes and white/green diagonal stripes

All Subdivisions N/A No heavy equipment w/in SMZ flagged with white with blue polka dot flagging. No piled material within 50’of the channel.

R5-KT-FT.3.5# – ROAD AND WATER SUPPLY USE. (5/2008) 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 or runoff, to avoid resource damage.

Damage to resources at such locations caused by Contractor's Operations, other than fire suppression activities, shall be repaired by Contractor in a timely and agreed manner to the extent practicable to restore and prevent further resource damage.

Unless otherwise agreed, Contractor’s use of roads and other water supply requirements shall conform to the following table.

SPECIFICATIONS PURSUANT TO R5-KT-FT.3.5# - REQUIREMENTS OF ROAD AND WATER SUPPLY

USE

Load Limitations Contractor shall notify Forest Service in writing of the planned size and load distribution for equipment which exceeds the State of California Vehicle Code legal size and weight, and the National Forest System roads to be used. Such notice may be part of plan of operation under GT.3.1.1. Within l5 days after receipt of the written notice Forest Service shall notify Contractor in writing of any regulations or restrictions that may be needed to protect National Forest Transportation Facilities.

A written permit shall be required for moving any vehicle which is in excess of the established legal size and weight which is not listed in the above plan, except as may be authorized in prior written agreements.

Existing Non- National Forest System Roads

Roads not shown on Contract Area Map may be used as Temporary Roads if there is agreement before use is started.

Snow Removal

If Contractor removes snow from roads, such work shall be done with Forest Service approval and in a manner that will protect roads and adjacent resources.

Snow berms shall be removed or placed to avoid accumulation of melt water on the road and prevent water concentration on erosive slopes or soils.

Snow must not be removed to the road surface. A minimum < 2 > inch snow depth must be left to protect the roadway. If the road surface is damaged, Contractor shall replace lost surface material and repair structures damaged in blading operations prior to hauling, unless climatic conditions prevent necessary work from being accomplished or as otherwise agreed in writing.

Single lane roads shall be plowed full width including turnouts. In event double lane roads are not plowed to full width, warning signs shall be required and plowing shall be no less than single lane (12 feet) with intervisible turnouts.

Surface Replacement Deposits

Contractor shall make Required Deposits for deferred surface replacement (16 U.S.C. 537) for use of existing surfaced roads. If applicable, such deposits shall be based upon the volume and distance hauled on the roads and at the applicable rates listed in the table below titled Surface Replacement Deposit Schedule. If Contractor uses surfaced roads under jurisdiction of Forest Service other than those listed, Forest Service may establish applicable rates for such surfaced roads.

SURFACE REPLACEMENT DEPOSIT SCHEDULE

Road No. From To Miles Rate

4S81 Section 1 5.40 11.20 5.80 1.69

4S81 Section 2 9.50 11.50 2.00 1.69

4S81 Section 3 6.30 8.70 2.40 1.21

4S81 Section 4 4.10 6.30 2.20 1.53

Contract Area Average Rate: $6.11/MBF

R5-KT-GT.2.2# - PROTECTION OF IMPROVEMENTS. (5/2008) Contractor shall notify Forest Service at least <7> days prior to any operations in the vicinity of improvements identified on Contract Area Map.