[Federal Register Volume 69, Number 88 (Thursday, May 6, 2004)]
[Notices]
[Pages 25367-25368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10287]


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DEPARTMENT OF AGRICULTURE

Forest Service


Revision of Timber Sale Contract Forms FS-2400-6 and FS-2400-6T

AGENCY: Forest Service, USDA.

ACTION: Notice; final timber sale contracts.

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SUMMARY: The Forest Service is implementing revisions to its timber 
sale contracts, Form FS-2400-6, for scaled sale procedures, and Form 
FS-2400-6T, for tree measurement timber sale procedures. The revisions 
are the first substantive changes in the standard timber sale contract 
provisions in over 30 years. A notice with request for comment on the 
proposed contract revisions was published in the Federal Register on 
December 19, 2003 (68 FR 70758). The Forest Service made appropriate 
changes to the contracts in response to the public comments. The final 
revised contracts and a detailed summary of the Forest Service 
responses to public comments are available for review, as provided in 
the ADDRESSES section of this notice.

DATES: The final revised timber sale contract forms are effective May 
6, 2004.

ADDRESSES: The final revised timber sale contract forms and the Forest 
Service response to public comments are available for public review on 
the Forest Service World Wide Web/Internet site at: http://www.fs.fed.us/forestmanagement/infocenter/newcontracts/index.shtml. 
Alternatively, the contracts and responses to comments can be reviewed 
in the office of the Director of Forest and Rangeland Management, Third 
Floor, Northwest Wing, Yates Building, 201 14th Street, SW., 
Washington, DC. Visitors are encouraged to call ahead to (202) 205-0893 
to facilitate entry into the building.

FOR FURTHER INFORMATION CONTACT: Richard Fitzgerald, Forest and 
Rangeland Management Staff, (202) 205-1753.

SUPPLEMENTARY INFORMATION:

[[Page 25368]]

Background

    Timber sale contract Forms FS-2400-6 and FS-2400-6T are used by the 
Forest Service for the sale of all large, complex timber sales. Timber 
sale contract Form FS-2400-6 is used when timber is measured for 
payment after it is harvested, and timber sale contract Form FS-2400-6T 
is used when the basis for payment is measurement prior to sale. These 
contracts were originally brought into use in July 1970 and January 
1972, respectively, and were the result of extended discussions between 
the Federal Timber Purchasers Committee and the Forest Service. These 
contracts were revised in September 1973 and October 1973, 
respectively, to incorporate modifications based upon experience gained 
and policy changes since their inception.
    From 1973 until July 2001, the requirements of new legislation and 
Forest Service policy were implemented in the contracts by issuing 
special provisions that replaced or added to the standard contract 
provisions. In July 2001, new versions of timber sale contract Forms 
FS-2400-6 and FS-2400-6T were issued. The July 2001 versions 
incorporated the special provisions that had been brought into use 
since 1973, but did not make any other changes that affect the rights 
and obligations of the Forest Service and timber sale purchasers.

Summary of Comments

    In response to public comments, over 75 changes were made to timber 
sale contract Forms FS-2400-6 and FS-2400-6T, including:
    1. Adding a contract provision to provide for an emergency rate 
redetermination after severe market declines.
    2. Changing the procedure for reimbursing purchasers for changes in 
road construction cost to provide more timely reimbursement.
    3. Removing the contract provision requiring that purchasers comply 
with other Federal, State, and local laws, since they have this 
obligation anyway.
    4. Shortening the time requirement for the Forest Service to 
inspect the timber sale purchaser's completed work from 10 days to 5 
days.
    5. Adding a contract provision to allow the timber sale purchaser 
to terminate the contract if the market declined substantially during a 
Forest Service suspension.
    6. Based on information it currently has, the Forest Service 
believes the appropriate level for liquidated damages should be 
increased from 7 percent to 15 percent. The Forest Service will monitor 
liquidated damages to determine if further adjustments are needed.
    7. Adding a contract provision to provide for reducing the 
performance bond during a Forest Service suspension.

Contract Revisions

    The final revised timber sale contract Forms FS-2400-6 and FS-2400-
6T provide a better balance of risk between the timber sale purchaser 
and:
    1. Clarify and simplify the remedies available when contracts are 
suspended, modified, or terminated for environmental reasons.
    2. Incorporate special provisions that are applicable to all timber 
sales into the standard contract provisions.
    3. Correct inconsistencies and clarify language that has 
accumulated by the addition of 30 years of special provisions to the 
timber sale contracts.
    4. Make organizational and editorial changes intended to eliminate 
duplicative and unnecessary provisions.
    5. Provide for liquidated damages when the Forest Service 
unilaterally terminates or partially terminates a timber sale contract.
    6. Provide for a rate redetermination after a specified time when 
the Forest Service orders the delay or interruption of operations for 
specific reasons.
    7. Provide for an emergency rate redetermination if there is a 
severe market decline after the timber sale is purchased.
    The final revised contracts and responses to public comments are 
available electronically and in paper copy, as provided in the 
ADDRESSES section of this notice.

    Dated: April 30, 2004.
Sally Collins,
Associate Chief.
[FR Doc. 04-10287 Filed 5-5-04; 8:45 am]
BILLING CODE 3410-11-P