Appendix B.pdf

Project Name: McKinley IRSC Page 1 of 20

APPENDIX B

STEWARDSHIP CONTRACT TIMBER REMOVAL SPECIFICATIONS

GENERAL INSTRUCTIONS; The following is a complete list of standard clauses that maybe used for the IRSC scaled contract.

Eliminate all those that do not apply. As an example; if there is no sample load scaling needed for the contract, eliminate G.8.5.1 Scaling Lost Sample Loads from the list and remove the clause. CLAUSES MARKED WITH AN ‘*’ ARE MANDATORY AND MAY NOT BE DELETED. The clause marked with “**” is mandatory for forests west of the 100th meridian.

*B.0 CONTRACT AREA

*B.2 Claims

*C.0 TIMBER SPECIFICATIONS

*C.1 Included Timber *C.1.1 Standard Timber *C.1.2 Substandard Timber *C.1.3 Damaged Timber *C.1.3.1 Damaged by Contractor *C.1.3.2 Negligent or Willful Damage *C.1.3.4 Minor Damage by Natural Causes *C.1.4 Unintentionally Cut Timber *C.1.6 Other Material *C.2 Utilization and Removal of Included Timber *C.3 Timber Designations C.3.2 Construction Clearing *C.3.2.2 Other Authorized Clearings C.3.5 Individual Trees *C.3.7 Minor Changes *C.4 Volume Estimate

*D.0 RATES OF PAYMENT

*D.1 Current Contract Rates *D.4 Other Payment Rates *D.4.1 Material and Quantities Not in Division A *D.4.2 Timber Cut Through Mistake *D.4.2.1 Designated Timber Cut But Not Removed *D.4.3 Undesignated Timber Damaged Without Negligence *D.4.4 Undesignated Timber Unnecessarily Damaged or Negligently or Willfully Cut *D.4.5 Liquidated Damages *D.4.7 Defect Caused by Abnormal Delay

*E.0 PAYMENTS

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

*G.0 OPERATIONS

*G.4 Conduct of Logging *G.4.1 Felling and Bucking *G.4.1.1 Felling in Clearings *G.4.1.2 Stump Heights *G.4.1.3 Bucking Lengths *G.4.1.4 Limbing *G.4.2 Skidding and Yarding G.4.2.1 Rigging *G.4.2.2 Landings and Skid Trails *G.4.2.3 Skidding on Roads G.4.2.4 Arches and Dozer Blades *G.6.3 Temporary Roads *G.6.4 Landings *G.6.5 Skid Trails and Fire Lines *G.6.6 Current Operating Areas

*G.6.7 Erosion Control Structure Maintenance *G.7 Slash Disposal *G.8 Scaling *G.8.1 Scaling Services *G.8.1.1Sclaing Location *G.8.1.2 Scaling Adjustments *G.8.1.3 Delayed or Interrupted Scaling Services *G.8.1.4 Weighing Services *G.8.2 Presentation for Scaling *G.8.3 Scaling Other Products *G.8.4 Accountability *G.8.4.1 Route of Haul **G.8.4.2 Product Identification *I.1 Title and Liability *I.1.1 Title Passage *I.1.2 Liability for Loss *I.5 Sale of Other Materials K-C.1.1# Timber Subject to Agreement (9/04) K-C.3.5# Designation of Timber, Cutting Unit Boundaries, Subdivision Boundaries (06/2012) K-C.3.5.1# – Designation by Spacing. (9/04) K-F.3.5# Road and Water Supply Use (5/08) K-G.3.3.1 Log Trucking (2/05) K-G.4.1# Felling, Bucking, and Limbing (8/07) K-G.4.2# Ground Based Skidding (12/06) K-G.4.2.5 Cable and Skyline Yarding (8/07) K-G.6.7# Slash Treatment (12/06) K-G.8.1.5 Third Party Scaling Services (9/04) K-I.6.8# Use of Timber (Option 1) (9/04)

Project Name: McKinley IRSC Page 2 of 20

Division A Location and Area:

This Contract Area of 9,470 acres more or less is located in: T45N, R7W, sec 4-6, 8, 18; T45N, R8W, sec 1-4, 9-16, 21-24; T46N, R7W, sec 32-34; MDM; Siskiyou County

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

Merch Factor

Combined Softwood Sawtimber 40,908.00 TON 10 1 10 6 12

Timber Subject to Agreement Combined Softwoods Grn Bio Cv Unestimated

TON 3.0 1 6.0 N/A 16

Total Quantity 40,908.00

Timber Designations, acres are approximate:

Number Acres

Individual Trees (C.3.5) 1,217.9

High Stumps

Species Product Maximum Stump Height (inches)

All All 12

Maximum 6-inch stump height up to 100 feet uphill and 50 feet downhill along forest road 45N28.

Project Name: McKinley IRSC Page 3 of 20

Roads

Name and Date of Governing Road Specifications: Standard Specifications for Construction of Roads and Bridges on Federal Highway Projects - FP-14

Project Design Class

Approx.

Length

(mi./km.)

Sheet Numbers and

Approval Date

Performance Responsibility

Survey Design Const.

Staking1/ Road No. Name

Specification sheets with itemized construction codes also attached, appendix D

Scaling Instructions and Specifications Name and Date of Governing Instructions: National Forest Cubic Scaling Handbook, FSH 2409.11A, as amended, Cubic Taper 4.

Scaling Specifications

Maximum Scaling Length (feet)

Trim Allowance Diameter

Range (inches)

Length Range (feet)

Trim Allowance

Combined Softwoods Sawtimber 20 All All 6

Scaling Services

Unit of Measure Site and Geographic Location Method

Standard Estimated

Cost per Unit

TON As approved and agreed to by Forest Service

100% 0.00

Project Name: McKinley IRSC Page 4 of 20

APPLICABLE REGIONAL CLAUSES MAY BE ADDED

UNITED STATES DEPARTMENT OF AGRICULTURE

Forest Service

TIMBER REMOVAL SPECIFICATIONS

CALUSES FOR SCALED TIMBER REMOVAL CONTRACTS

(Applicable to Contracts to be Measured After Felling)

This Division is organized into Parts, Sections, Subsections, and Items. These are numbered in accordance with the following scheme: Part Bl.0, Section Bl.1, Subsection Bl.11, and Item Bl.111. References to a Part include all Sections, Subsections, and Items within that Part;

references to a Section include all Subsections and Items within that Section; and references to a Subsection include all Items within that Subsection. Cross references within this contract cite the reference number of the applicable Division, Part, Section, Subsection, and Item.

Descriptive headings used are not to be considered in determining the rights and obligations of the parties hereunder. The Standard Clauses in this Division are subject to Specific Conditions of the contract stated in Division A. Wherever appropriate, Specific Conditions established in Division A are herein cited by reference number. References to Standard Clauses also apply to Special K Clauses with the same numbers.

These clauses are applicable only to the timber removal portion of the McKinley Stewardship Contract except where otherwise specifically referenced. “Timber” when used in this appendix includes timber and other products.

B.0—CONTRACT AREA

B.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.

C.0—TIMBER SPECIFICATIONS

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

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

C.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.

C.1.3 Damaged Timber.

C.1.3.1 Damaged by Contractor. Undesignated live trees meeting Utilization Standards (a) within 200 feet slope distance from centerline of roads constructed hereunder which are damaged by Contractor's construction to the extent that considerable deterioration or mortality is imminent and are designated by Forest Service for felling before the nearest road segment is substantially completed; or

(b) which are damaged by Contractor in logging and are subsequently Marked before Contractor has completed skidding or yarding operations in the immediate area. By agreement, such trees may be left without charge if their removal would cause undue damage or be grossly uneconomic.

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

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

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

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

C.2 Utilization and Removal of Included Timber. “Utilization Standards” for trees and minimum pieces are stated in Division A. To meet minimum tree specifications, trees must equal or exceed tree diameters listed in Division A and contain at least one minimum

Project Name: McKinley IRSC Page 5 of 20 piece. Except for timber required or authorized to be left, Contractor shall fell and buck such trees and shall remove from Contract Area all pieces that:

(a) Meet minimum piece standards in Division A 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.

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

C.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 locations.

C.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 Division A.

C.3.5 Individual Trees. All trees to be cut, other than in the units described in C.3.1, C.3.2, C.3.3, and C.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.

C.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.

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

D.0—RATES OF PAYMENT

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

D.4 Other Payment Rates.

D.4.1 Material and Quantities Not in Division A. Incidental amounts of products or portions of trees of species that do not meet Utilization Standards may be removed without charge. Such material from Clearcutting Units and construction clearings may be purposely removed in more than incidental amounts without charge subject to agreement on deposits for road maintenance and use.

Such material from other than Clearcutting Units and construction clearings 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 may, upon written approval of Contracting Officer, be cut and removed subject to agreement on rates of payment. Timber for which the quantity is not included in the estimate, shall be paid for at Current Contract Rates and Required Deposits.

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

D.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.

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

Project Name: McKinley IRSC Page 6 of 20

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

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

D.4.7 Defect Caused by Abnormal Delay. Scaling deductions made for rot, check, or other defect resulting from abnormal delay in Scaling caused by Contractor shall be recorded separately and charged to Integrated Resource Account at Current Contract Rates and applicable deposits.

E.0—PAYMENTS

E.1 Amount Payable for Timber. Current Contract Rates and Required Deposits in effect when the timber is Scaled shall be applied to the Scaled volume to determine the amount Contractor shall pay.

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

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

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

c. Stewardship Credits established,

d. Contract Scaling Deposits, and

e. Other Charges provided in this contract.

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

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

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

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

G.0—OPERATIONS

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

G.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 Division A. 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 Division A. If necessary to assess extent of defect, Contractor shall make sample saw cuts or wedges.

G.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 construction clearings and areas of regeneration cutting.

Project Name: McKinley IRSC Page 7 of 20

G.4.1.2 Stump Heights. Stumps shall not exceed, on the side adjacent to the highest ground, the maximum heights set forth in Division A, except that occasional stumps of greater heights shall be acceptable when necessary for safe and efficient conduct of logging. Except for acceptable high stumps stated above, Contractor shall re-cut high stumps so they will not exceed heights specified in Division A and shall dispose of severed portions in the same manner as other logging debris or as otherwise agreed. The stump heights shown in Division A 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.

G.4.1.3 Bucking Lengths. Trees shall be bucked in various lengths to obtain the greatest utilization of material meeting Utilization Standards.

G.4.1.4 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.

G.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.

G.4.2.1 Rigging. Insofar as practicable, needed rigging shall be slung on stumps or trees designated for cutting.

G.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.

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

G.4.2.4 Arches and Dozer Blades. Skidding tractors equipped with pull-type arches or dozer blades wider than tractor width or C-frame width, whichever is greater, shall not be used in residual timber outside Clearcutting Units and other authorized clearings, except on constructed tractor roads or landings, unless there is written agreement that residual timber will not be damaged materially by such use.

G.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.

G.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.

G.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.

G.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 October 31 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 during November 1st through April 30th, inclusive Contractor shall keep such work on any additional disturbed areas as up to date as practicable.

G.6.7 Erosion Control Structure Maintenance. During the period of this contract, Contractor shall provide maintenance of soil erosion control structures constructed by Contractor until they become stabilized, but not for more than 1 year after their construction.

Contractor shall not be responsible for repair of such structures damaged by other National Forest users whose activities are not a part of Contractor’s Operations.

Project Name: McKinley IRSC Page 8 of 20

G.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 elsewhere herein and are in addition to Required Deposits for slash disposal.

G.8 Scaling. “Scaling,” as used herein, involves:

(a) Various volume determination methods, such as log rule, sampling, measuring, linear measuring, counting, weighing, or another method or combination of methods;

(b) Various sites, such as truck Scaling stations, rollways, weighing stations, woods landings, water Scaling stations, or other sites; and

(c) Various geographic locations.

G.8.1 Scaling Services. Scaling services shall be performed by Forest Service personnel or parties under contract to Forest Service, except that weighing services may be performed by personnel or parties approved by Forest Service. Scaling shall be provided in accordance with the instructions and specifications in Division A. Scalers shall be currently certified to perform accurate Scaling services. The Scaling services provided shall be selected exclusively by Forest Service. Scaling services may be Continuous, Intermittent, or Extended. “Continuous Scaling Services” is Scaling at one site five (5) 8-hour shifts a week, exclusive of Sundays and Federal holidays. “Intermittent Scaling Services” are non-continuous Scaling services. “Extended Scaling Services” are Scaling services exceeding Continuous Scaling Services and may include Sundays and designated Federal holidays. Upon written request of Contractor and approval of Contracting Officer, Forest Service may provide other services, such as but not limited to grading, tagging, or marking of Scaled logs.

G.8.1.1 Scaling Location. Forest Service shall provide Scaling services at the Scaling site(s) shown in Division A. The Scaling site(s) shown in Division A normally will be a non-exclusive site where more than one National Forest contractor may be served. Contractor may request, in writing, an alternate Scaling site, such as at a private mill yard, private truck ramp, or a privately operated log transfer facility. Contracting Officer may approve an alternate Scaling site, when Contracting Officer determines that Scaling conditions at an alternate site are acceptable. Such conditions shall include at a minimum: (a) Scaler safety and comfort, (b) Product accountability and security, (c) Facilities and practices conducive to accurate and independent Scaling, and (d) The ability to provide for remote check Scaling. Upon approval of an alternate Scaling site, Forest Service and Contractor shall enter into a written memorandum of agreement governing Scaling at that alternate location. Contractor agrees that Forest Service personnel or persons under contract with Forest Service shall perform Scaling services at an alternative Scaling site. In no instance shall Contractor or employees of Contractor perform Scaling services.

G.8.1.2 Scaling Adjustments. Forest Service shall check the accuracy of the Scaling performed on National Forest logs. Scaling will be satisfactory if performed within the accuracy standards stated in governing instructions identified in Division A. In the event Forest Service check Scale(s) shows a variance in net Scale in excess of the allowable variance, an adjustment to volume reported Scaled may be made by Forest Service. Such adjustment will be based on the difference between Forest Service check Scale(s) and original Scale for contract volume Scaled within the adjustment period. The volume to which this difference will be applied will be: (a) One-half of the volume Scaled between the last satisfactory check Scale and the first unsatisfactory check Scale or, if a period of 120 days or more occurs without Scaling National Forest timber for stumpage, the adjustment will be applied to 100 percent of the volume Scaled after this period and (b) 100 percent of the volume Scaled between unsatisfactory check Scales and (c) One-half of the volume Scaled between the last unsatisfactory check Scale and the next satisfactory check Scale, or if no satisfactory check Scale is completed and a period of 120 days or more occurs without Scaling of National Forest timber for stumpage, the adjustment will be applied to 100 percent of the volume Scaled since the last unsatisfactory check Scale. Adjustments may increase or decrease the original Scaled volume.

Adjustments will be applied to Integrated Re-source Account to correct charges for Included Timber, plus deposits, Scaled during the adjustment period.

G.8.1.3 Delayed or Interrupted Scaling Services. In the event Scaling services are delayed or interrupted, Contractor shall discontinue hauling. Contractor further agrees that no logs will be presented for Scaling outside agreed upon Scaling services schedule.

G.8.1.4 Weighing Services. Weighing services for stumpage payment purposes may be provided by either public or privately owned and operated weighing facilities. A “Weighing Services Agreement,” approved by the Forest Supervisor, must be executed at each weighing facility providing weighing services. Scales used to weigh National Forest products for payment purposes must be a currently certified scale in accordance with State law and be capable of weighing the entire load of logs in a single operation. The weighing of less than the entire load or weighing two loads at once is prohibited. Unless otherwise agreed, the minimum sized weighing facility shall be a 60-ton capacity scale with a 10 foot by 70 foot platform or larger. The weighmaster must work in a position where it is possible to verify that the truck wheels are on or off the scales.

Weighing facilities shall meet the following minimum requirements:

(a) Be an electronic design,

(b) Use electronic load cells or have a fully enclosed and sealed weigh-beam,

(c) Have digital weight meters sealed with a seal approved by the State,

(d) Have a zero interlocking device on the printer,

(e) Have an automatic zero-setting mechanism,

(f) Have an automatic motion-detecting device, Project Name: McKinley IRSC Page 9 of 20

(g) Be shielded against radio or electromagnetic interference, and

(h) Have a date and time stamp and gross and tare weights that print electronically with each weighing. Contracting Officer may waive electronic printing for public or third party weighing facilities.

Contractor shall bear all charges or fees for weighing services.

G.8.2 Presentation for Scaling. Contractor shall present products so that they may be Scaled in an economical and safe manner. If prior to Scaling, Included Timber is to be mixed with other timber, Contractor shall, prior to mixing, provide for distinguishing, by means approved by Forest Service, each product included in this contract.

Trees or pieces presented for Scaling that have not been bucked to separate material meeting minimum piece standards from material not meeting minimum piece standards due to diameter, shall be Scaled as though such bucking had been done.

Deductions made for rot, check, or other defects resulting from abnormal delay in Scaling caused by Contractor shall be recorded separately and charged to Integrated Resource Account under D.4.7.

Any timber that has been removed from Contract Area during the period of this contract, but remains unscaled after contract termination, shall be Scaled at the earliest reasonable date.

G.8.3 Scaling Other Products. The Scaled volume of material presented for Scaling in forms other than those stated in Division A., when appropriate, shall be converted to the Division A unit of measure by the application of standard converting factors and procedures in effect at the time the contract was sold. Other converting factors may be used by written agreement.

G.8.4 Accountability. When Scaling is performed away from Contract Area, products shall be accounted for in accordance with Forest Service written instructions or an Accountability Agreement between Forest Service and Contractor and as follows:

(a) Contractor shall plainly mark or otherwise identify products prior to hauling in accordance with G.8.4.2;

(b) Forest Service shall issue removal receipts to Contractor;

(c) Contractor shall assign a competent individual at the landing to complete removal receipts and attach them to each load of products removed from Contract Area;

(d) Removal receipts shall be returned to Forest Service at periodic intervals;

(e) When products are in transit, the truck driver shall possess or display removal receipt and show it upon request as evidence of authority to move products;

(f) The scaler’s portion of removal receipt shall be surrendered at point of Scaling, the unloading point, or as requested by Forest Service; and

(g) Contractor shall notify Forest Service of lost or off-loaded logs and their location within 12 hours of such loss.

Contractor shall not place products in storage for deferred Scaling until an accountability system has been agreed to in writing for a stated period.

G.8.4.1 Route of Haul. Contractor shall furnish a map showing the route of haul over which unscaled products will be transported from Contract Area to the approved Scaling location. Such route of haul shall be the shortest, most economical haul route available between the points.

Upon advance written agreement, other routes may be approved. All unscaled products removed from Contract Area shall be transported over the designated routes of haul. Contractor shall notify Forest Service when a load of products, after leaving Contract Area, will be delayed for more than 12 hours in reaching Scaling location.

Contractor shall require truck drivers to stop, if requested by Forest Service, for the following reasons:

(a) For accountability checks when products are in transit from Contract Area to the designated Scaling location or

(b) For a remote check Scale when products are in transit after being truck Scaled at the designated Scaling location.

Contractor and Forest Service shall agree to locations for accountability checks and remote check Scales in advance of haul. Such locations shall be established only in areas where it is safe to stop trucks.

Forest Service shall notify Contractor of the methods to be used to alert truck drivers of an impending stop.

G.8.4.2 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 shall furnish and apply highway-yellow paint of a lasting quality (oil-base 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

Project Name: McKinley IRSC Page 10 of 20

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.

G.8.5 Scaling Lost Products. The volume of lost products shall be determined by the best methods currently available, using data from the records for the period in which the loss occurred or the most applicable period if loss should occur substantially after cutting. In the absence of specific information indicating size or species of lost products, species distribution and volume for entire truckloads shall be assumed to be the same as the average volume scaled per truck during the report period, and for individual products it shall be assumed that the volume and species were the average volume of the highest priced species Scaled during the report period.

I.0—OTHER CONDITIONS

I.1 Title and Liability.

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

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

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

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

Project Name: McKinley IRSC Page 11 of 20

NOTE TO CO – THERE ARE A LOT OF REFERENCES TO OTHER CLAUSES IN THIS NEXT SECTION.

IF YOU USE ANY OF THESE CLAUSES BE SURE TO CHECK THE REFERENCES TO ENSURE YOU

AREN’T REFERENCING CLAUSES THAT ARE NOT INCLUDED!

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

Combined Softwood

Grn Bio Cv that shall be Included Timber upon written agreement.

K-C.3.5# - DESIGNATION OF TIMBER, CUTTING UNIT BOUNDARIES, AND SUBDIVISION/PAYMENT UNIT BOUNDARIES (6/2012) Trees are designated for cutting under C.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 K-C.3.5# - DESIGNATION OF TIMBER, CUTTING UNIT

BOUNDARIES, AND SUBDIVISION/PAYMENT UNIT BOUNDARIES

Timber Designation Table

Cutting Unit/ Subdivision/Area/Pay ment Unit

Tree Paint Color

Designation or Specification

Contract Area

Green Hazard Tree. Notwithstanding 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, streamcourses, and areas identified on Contract Area Map or on the ground.

Units: 1T, 3S, 5S, 6S, 11S, 12T, 17S, 19S, 39S, 42S, 47S, 59T, 70E, 83S,91S, 155S, 283T, R3

Green

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

Unit: 222S Orange Leave Tree Mark. All live conifers are designated for cutting unless Marked as leave trees. Leave trees

Project Name: McKinley IRSC Page 12 of 20 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.

All Units

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.

Units: 8S, 10, 13S, 21S, 36S, 38S, 40S, 41S, 44S, 48T, 53S, 56S, 71S, 147T, 183, 247S, 248S, 249S, 250, 299S

Designation by Spacing K-C.3.5.1#

N/A Designation by Species and Diameter, K-C.3.5.2# N/A Designation by Damage Class, K-C.3.5.3# N/A Designation by Row Spacing, K-C.3.5.4#

Subdivision/Payment Unit and Cutting Unit Boundary Designation Table

Subdivision/Payment Unit

Boundary Paint

Boundary Designation

Cutting Unit Boundary Paint

Boundary Designation

All Cutting Units

Orange

Boundary lines are flagged with a solid blue and solid white flagging hung together. Boundaries are marked at eye level with three orange slashes, or a single vertical orange line above DBH facing the next Boundary Tree and two (2) stump marks. Yellow/Black signs posted at corner of harvest units stating “CUTTING UNIT BOUNDARY” attached to trees facing the road.

Streamcourse Protection

N/A Areas are flagged in blue and white striped flagging and/or with orange paint.

K-C.3.5.1# – DESIGNATION BY SPACING. (9/04)

Within Subdivisions or cutting unit(s) 13S, 38S, 40S, 71S, 56S, 299S, 44S, 36S, 21S, 53S and 250 , as shown on Sale Area Map, all live PP, JP, IC, SP, DF, or WF trees, except trees Marked with orange paint or described to be left uncut, that meet Utilization Standards and one or more of the following criteria are designated for cutting.

Project Name: McKinley IRSC Page 13 of 20

(a) The required spacing is a maximum average of 30 feet. The tree is within 20 feet of a live tree that has a larger stump diameter than it; and the larger tree is not designated for cutting.

(b) The tree is within 20 feet of a hardwood tree (other than liveoak) greater than or equal to 8 inches stump diameter;

and this tree is not designated for cutting.

(c) The tree is Marked with green paint.

Within Subdivisions or cutting unit(s)10, 41S, 48T, 147T, 183, 247S, 248S, 249S, and 8S , as shown on Sale Area Map, all live PP, JP, IC, SP, DF, or WF trees, except trees Marked with orange paint or described to be left uncut, that meet Utilization Standards and one or more of the following criteria are designated for cutting.

(a) The required spacing is a maximum average of 35 feet. The tree is within 25 feet of a live tree that has a larger stump diameter than it; and the larger tree is not designated for cutting.

(b) The tree is within 25 feet of a hardwood tree (other than liveoak) greater than or equal to 8 inches stump diameter; and this tree is not designated for cutting.

(c) The tree is Marked with green paint.

Distances are measured horizontal distance, outside bark stump height to outside bark stump height. Stump diameter is measured outside bark at stump height in a horizontal plane and is the average of a measurement across the short axis through the true center of the stump and a second measurement at right angles to the short axis.

All N/A shall be left as leave trees, unless Marked with N/A paint. No tree greater than or equal to N/A inches stump diameter shall be cut, unless Marked with N/A paint. Cutting unit boundaries and other trees that shall be left uncut are Marked with orange paint.

Contractor and Forest Service shall agree to skid trail location under G.4.2.2. Skid trails shall be no greater than _14______ feet wide with a 120______ foot spacing.

K-F.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.

Project Name: McKinley IRSC Page 14 of 20

SPECIFICATIONS PURSUANT TO K-F.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 G.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 2-4 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.

Water Supply Deposits

N/A

Surface Replacement Deposits

N/A

K-G.3.3.1 - LOG TRUCKING. (2/2005) To promote safe operations on National Forest roads and on Specified Roads, loads shall be safely secured before trucks move from the landing or loading location.

Project Name: McKinley IRSC Page 15 of 20

K-G.4.1# - FELLING, BUCKING, AND LIMBING. (8/2007) Unless otherwise agreed in writing, Contractor’s felling, bucking, and limbing operations shall be conducted as specified in the table below.

SPECIFICATIONS AND TREATMENTS PURSUANT TO K-G.4.1# - FELLING, BUCKING AND LIMBING

Treatment Method Felling, Bucking and Limbing Specifications

Limbing

Outside of construction clearings, Clearcutting Units and regeneration units, unless otherwise provided by G.4.1.4, Purchaser shall, prior to skidding/yarding operations, cut exposed limbs from products which are to be skidded/yarded. Such limbing of stems shall be done to a top diameter of approximately N/A inches, at which point the top shall be cut from the remainder of the stem.

No Lop

“No Lop”

Within units or subdivisions designated NO LOP on Contract Area Map, trees shall be skidded/yarded to agreed landing locations prior to lopping.

Whole Tree Yarding

“Whole”

Notwithstanding the requirements above, within units or subdivisions designated “Whole” on Contract Area Map, trees smaller than 22 inches DBH shall be skidded/yarded to agreed landing locations prior to limbing, bucking, and lopping. Trees larger than or equal to 22 inches DBH shall be bucked into two or more pieces with the butt portion being no longer than 41 feet prior to skidding/yarding. The butt log shall not be limbed prior to skidding/yarding.

Directional Felling Within areas designated DF on Contract Area Map, Included Timber shall be directionally felled away from private property, improvements, roads, designated trails, survey monuments, streamcourses, site specific protection areas with the use of specialized equipment.