[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