[Federal Register Volume 61, Number 40 (Wednesday, February 28, 1996)]
[Notices]
[Pages 7468-7469]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4495]



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DEPARTMENT OF AGRICULTURE

Small Business Timber Sale Set-Aside Program; Notice and Comment 
Opportunity on Recomputation of Shares

AGENCY: Forest Service, USDA.

ACTION: Notice of availability.

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SUMMARY: The Forest Service gives notice that it has revised its 
internal administrative direction in Forest Service Handbook 2409.18 
regarding recomputation of shares under the Small Business Timber Sale 
Set-Aside Program to provide a procedure for timber industry review and 
comment prior to a final decision on recomputed shares. This prior 
notice and comment opportunity is intended to respond to industry's 
concerns about losing the privilege of administrative appeal of 
recomputation decisions when agency appeal regulations at 36 CFR parts 
215, 217, and 251 were revised in response to statutory direction in 
1992. The new procedures have been issued as Interim Directive Number 
2409.18-96-1.

EFFECTIVE DATE: The Interim Directive was effective February 9, 1996.

ADDRESSES: Single copies of the Interim Directive may be obtained by 
calling or writing local Forest Service offices as listed in 36 CFR 
200.4, by telephoning the person listed under FOR FURTHER INFORMATION 
CONTACT or by writing Director, Timber Management, (3NW Aud. Bldg.), 
USDA Forest Service, P.O. Box 96090, Washington, DC 20090-6090.

FOR FURTHER INFORMATION CONTACT: Rod Sallee, Timber Management Staff, 
(202) 205-1766.

SUPPLEMENTARY INFORMATION:

Background

    The Forest Service Small Business Timber Sale Set-Aside Program was 
adopted July 26, 1990 (55 FR 30485). The agency administers the program 
in cooperation with the Small Business Administration (SBA) under the 
authorities of The Small Business Act, The National Forest Management 
Act of 1976, and SBA's regulations at Part 121 of Title 13 of the Code 
of Federal Regulations (13 CFR part 121). The program is designed to 
ensure that small business timber purchasers have the opportunity to 
purchase a fair proportion of National Forest System timber offered for 
sale.
    Direction to guide administration of the Set-Aside Program is 
issued in Forest Service Manual (FSM) Chapter 2430 and Chapter 90 of 
Forest Service Timber Sale Preparation Handbook (FSH 2409.18). The 
Program requires the Forest Service to recalculate the shares of timber 
sales to be set-aside for small business, based on the actual history 
of harvest and/or purchase by small business every 5 years. Shares also 
must be recomputed, if there is a change in manufacturing capability, 
if purchaser size class changes, or if certain purchasers discontinue 
operations.
    Prior to 1992, there was opportunity for administrative appeal of 
decisions associated with recomputation of new shares. In 1992, the 
agency adopted new administrative appeal procedures at 36 CFR part 215 
in response to new statutory direction. Under the rules adopted at 36 
CFR part 215, the Forest Service appeal process no longer covers 
decisions related to the recomputation of shares under the Small 
Business Set-Aside Program, because these decisions are not subject to 
National Environmental Policy Act regulations or procedures. These 
decisions also are not conditions of special use authorizations 
appealable under 36 CFR part 251, subpart C.
    The small business share decision is based on technical information 
from the harvest and/or sales history of defined market areas and other 
information. Rather than providing a separate appeal procedure that 
allows challenge of decisions, the agency believes the decisionmaking 
process will be improved by allowing purchasers the opportunity to 
review and comment on proposed changes in shares and by allowing the 
decisionmaker to consider these comments in making the final decision. 
Accordingly, at Section 91.19 of FSH 2409.18, the agency has 
established procedures for giving notice to the affected timber 
purchasers in the area, for obtaining and considering comment, and for 
documenting the comments received and the agency's response as part of 
the final decision. The Interim Directive establishing these procedures 
as issued to Forest Service employees is set out at the end of this 
notice.

    Dated: February 15, 1996.
Gray F. Reynolds,
Deputy Chief for National Forest System.

!!ID 2409.18-96-1

Expiration Date: 8/9/97

Forest Service Handbook

Washington, D.C.

FSH 2409.18--Timber Sale Preparation Handbook

    Interim Directive: 2409.18-96-1.
    Effective Date: February 9, 1996.
    Expiration Date: August 9, 1997.
    Chapter: 90--Programs With Small Business Administration.
    Posting Notice: Last ID was 2409.18-95-2 to chapter 40.
    This interim directive (ID) establishes new procedures at 
section 91.19 for giving timber purchasers notice and opportunity to 
comment on proposed share recomputations for the timber sale set-
aside program. With adoption of the administrative appeal rules at 
36 CFR part 215, share recomputation decisions were no longer 
appealable. These procedures in section 91.19 reinstate an 
opportunity for purchaser involvement in the recomputation decision.
Sterling J. Wilcox,
Acting Deputy Chief.
    91.19--Establishing New Small Business Shares. Request review of 
all scheduled, 

[[Page 7469]]
periodic market share recomputations as well as any recomputation 
arising from a determination of structural change from the Small 
Business Administration (SBA) Regional Representative. If there are 
any disagreements between the SBA representative and the Forest 
Supervisor, refer the matter to the Regional Forester for resolution 
before giving notice of the proposed share recomputation to timber 
purchasers.
    Following the review by the Small Business Administration, the 
responsible line officer shall take the following actions:
    1. Give direct notice of the proposed new share to all timber 
purchasers on bidders' lists within the affected area, and invite 
their comment.
    a. Advise the timber purchasers of the information used in 
recomputing shares and invite comment on the information used by the 
agency or on information that purchasers believe should have been 
considered. Also advise timber purchasers of the location where they 
can inspect the information used.
    b. All comments postmarked within 30 calendar days following the 
date of mailing must be considered in arriving at the final share 
decision.
    2. Following the 30-day review and comment period, consider the 
comments, make adjustments as may be appropriate, and prepare a 
letter or other document setting forth the final decision.
    3. Give notice of the final decision to all purchasers on the 
bidders' lists within the affected area. Be sure to include a 
statement that the decision is not subject to administrative appeal. 
Make any new share effective at the beginning of the first 6-month 
analysis period following the decision to implement it.
    4. In the notice of the final decision or an attachment to it, 
summarize the comments received, identify the number of persons who 
or entities that provided comments, and provide the deciding 
official's response to them.

[FR Doc. 96-4495 Filed 2-27-96; 8:45 am]
BILLING CODE 3410-11-M