[Federal Register Volume 61, Number 180 (Monday, September 16, 1996)]
[Rules and Regulations]
[Page 48625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23480]



[[Page 48625]]

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DEPARTMENT OF AGRICULTURE

Forest Service

36 CFR Part 223


Sale and Disposal of National Forest System Timber; Appraisal of 
Timber for Land Exchange, Right-of-Way, or Other Authorized Use

AGENCY: Forest Service, USDA.

ACTION: Final rule; technical amendment.

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SUMMARY: The Forest Service is amending regulations for appraising the 
value of timber under special circumstances. These regulations were 
reviewed under phase II of the President's Regulatory Reinvention 
Initiative and were determined to be repetitive and in need of 
revision. The intended effect of this technical amendment is to remove 
ambiguity and improve the usefulness of the rules by consolidating the 
content of similar rules that provide the Chief of the Forest Service 
appropriate appraisal methods for determining fair market value of 
timber on land exchanges; right-of-ways, or other authorized use.

EFFECTIVE DATE: September 16, 1996.

FOR FURTHER INFORMATION CONTACT:
Jim Naylor, Timber Management Staff, Forest Service, telephone: (202) 
205-0858.

SUPPLEMENTARY INFORMATION: 

Background

    The Organic Administration Act (16 U.S.C. 478) and the Federal Land 
Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.) authorize 
the Secretary to allow occupancy and use of the national forests for 
egress or ingress, for right-of-ways, or other authorized uses.
    The National Forest Management Act (16 U.S.C. 472a(a)) directs that 
all timber sold from National Forest System land be sold at not less 
than its appraised, or fair market, value. Therefore, all timber of 
merchantable size and quality sold in exchange for land or as timber 
cut for right-of-ways or for other authorized uses is appraised 
according to requirements set out in 36 CFR 223.60, Determining fair 
market value. Section 223.60 was amended February 14, 1996 (61 CFR 
5684), to remove the residual value appraisal procedure as the primary 
method for determining fair market value. While the residual value 
appraisal method may still be used and currently is used by Region 10, 
it has been replaced primarily by the transaction evidence appraisal 
method used in other regions.
    Currently, there are two rules that address the process for 
appraising the value of timber under special circumstances, one for 
exchange of timber--Section 223.65, and another for right-of-way or 
occupancy uses--Section 223.66. In this rulemaking, section 223.65 is 
being amended to include appraisal of timber for right-of-way or other 
authorized use, and Sec. 223.66 is being removed.
    When the residual value method was the primary method for 
appraising timber, direction was needed for the special circumstances 
of appraising the value of timber when an exchange of land, right-of-
way, or other authorized use was granted. In order to ensure that the 
method of appraisal under these specific circumstances reflected fair 
market values, the rules at Sec. 223.65 and Sec. 223.66 included the 
following language: ``Where residual value method is used, prices paid 
for comparable timber will be considered and the residual value 
adjusted accordingly.'' This statement allowed the use of transaction 
evidence (the prices paid for comparable timber) in determining the 
value of the timber. Since the amendment to Sec. 223.60 states that 
``Valid methods to determine fair market value include, but are not 
limited to, transaction evidence appraisals, analytical appraisals, 
comparison appraisals, * * *'' direction permitting the use of 
transaction evidence in determining the value of the timber is no 
longer needed in the revised Sec. 223.65. Therefore, Sec. 223.65 is 
being revised to state that ``The value of the timber * * * is to be 
determined by the appraisal methods in Sec. 223.60 of this part.''

Regulatory Impact

    This is a technical rule with no substantive effect; therefore, it 
is not subject to review under USDA procedures and Executive Order 
12866 on Regulatory Planning and Review. As a technical amendment, this 
final rule also is exempt from further analysis under Executive Order 
12630, Takings Implications; the Unfunded Mandates Reform Act of 1995; 
the Paperwork Reduction Act of 1995; or Executive Order 12778, Civil 
Justice Reform.

List of Subjects in 36 CFR Part 223

    Exports, Government contracts, National forests, Reporting 
requirements, Timber sales.

    Therefore, for the reasons set forth in the preamble, Part 223 of 
Title 36 of the Code of Federal Regulations is hereby amended as 
follows:

PART 223--SALE AND DISPOSAL OF NATIONAL FOREST SYSTEM TIMBER

    1. The authority citation continues to read as follows:

    Authority: 90 Stat. 2958, 16 U.S.C. 472a; 98 Stat. 2213, 16 
U.S.C. 618; 104 Stat. 714-726, 16 U.S.C. 620-620h, unless otherwise 
noted.


Sec. 223.65  [Amended]

    2. Revise Sec. 223.65 to read as follows:


Sec. 223.65  Appraisal of timber for land exchange; right-of-way, or 
other authorized use.

    The value of timber in land exchange or the value of timber 
required to be cut for occupancy of a right-of-way or other authorized 
use of National Forest System land for which payment will be made is to 
be determined by the appraisal methods in Sec. 223.60 of this part.


Sec. 223.66  [Removed and Reserved]

    3. Remove and reserve Sec. 223.66.

    Dated: September 3, 1996.
David G. Unger,
Associate Chief.
[FR Doc. 96-23480 Filed 9-13-96; 8:45 am]
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