Fill - Free fillable Form 5450-3: UNITED STATES DEPARTMENT OF THE INTERIOR (Bureau of Land Management

Form 5450-3

(December 2011)

UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANGEMENT

No.

CONTRACT FOR THE SALE OF TIMBER

LUMP SUM SALE

THIS CONTRACT is made and entered into the , 20 , under the authority

of the Act of August 28, 1937, (50 Stat. 874), as amended, (43 U.S.C. 118la-f), relating to the revested Oregon and California

Railroad and reconveyed Coos Bay Wagon Road grant lands, or under the Act of July 31, 1947, (61 Stat. 681), as amended, (30

U.S.C. Secs. 601-604), relating to other lands under the jurisdiction of the Bureau of Land Management (BLM), and the regulations

as set forth in 43 CFR Group 5400, between the UNITED STATES OF AMERICA, hereinafter called the Government, acting

through the BLM, and

day of

hereinafter called the Purchaser.

WITNESSETH, That the parties hereto do mutually agree as follows:

Sec. 1. Timber Sold - The Government hereby sells to the Purchaser and the Purchaser hereby buys from the Government, under

the terms and conditions of this contract, all timber included in Exhibit B, which is attached hereto and made a part hereof, except

that timber reserved to the Government under Sec. 41 of this contract, within the area designated by the Government, comprising

contract area as shown on map marked Exhibit A, which is attached hereto and made a part hereof, and situated in the County of

, State of , and described as follows:

TOWNSHIP

RANGE

SECTION

SUBDIVISION(S)

Sec. 2. Total Purchase Price - The Purchaser agrees to pay

the Government, as the total purchase price for the timber sold

hereunder, the sum of

dollars ( ); Provided, however, that such total

purchase price may be adjusted in accordance with Secs. 6, 7, 8, 9,

19, 20, or 42 of this contract.

Sec. 3. Payment

(a) Payment under this contract shall be made as set forth in this

section. No timber may be cut or removed until the required payments

have been made. Purchaser shall continue to make such payments until

the total purchase price has been paid. The total purchase price shall

be paid no later than the expiration of time for cutting and removal as

set forth in Sec. 4.

contract is signed by the Contracting Ofcer, payments shall be made

in installments of not less than

(b) Unless total purchase price is paid on or before the date this

dollars ( ) as follows: (1) The rst installment shall

be paid on or before the date this contract is signed by the

Contracting Ofcer, one-half of this rst installment may be applied

as payment on the total purchase price when (i) no less than 60

percent of the total purchase price has been paid or (ii) road

construction required under the contract has been completed the

value of which when combined with contract payments is equal to no

less than 60 percent of the total purchase price, and one-half of this

rst installment shall be held to satisfy the nal payment due under

this contract; (2) except as provided by subsections (e) and (f) of this

section, a second installment shall be paid prior to cutting or removal

of any timber sold under this contract. Each subsequent installment

shall be due and payable without notice when the value of the timber

cut or removed equals the sum of all payments not including the rst

Save

Clear

installment or one-half of the rst installment after one-half of the

rst installment has been released as provided in subsection (b)(1) of

this section; (3) Provided, however, that in the case of all contracts

with a nineteen (19) month or longer term, the Purchaser shall be

required by the rst anniversary date to either (i) pay no less than 20

percent of the total purchase price or (ii) complete road construction

required under the contract the value of which when combined with

contract payments is equal to no less than 20 percent of the total

purchase price; (4) Provided further, that in the case of contracts with

a twenty-seven (27) month or longer term, the Purchaser shall also be

required by the second anniversary date to either (i) pay no less than

40 percent of the total purchase price or (ii) complete road

construction required under the contract the value of which when

combined with contract payments is equal to no less than 40 percent

of the total purchase price.

section, the amount of the rst installment may be reduced by the

Government when the Contracting Ofcer requests the Purchaser to

interrupt or delay operations for a period expected to last more than

thirty (30) days during the operating season. Such interruption or

delay must be beyond the Purchaser’s control. The rst installment

may be reduced to 5 percent of the installment amount specied in

subsection (b) of this section, during the delay period. The Purchaser

must request such a reduction in writing. When the Contracting

Ofcer noties the Purchaser that operations may proceed, the

Purchaser shall have fteen (15) days after such notication to

restore the rst installment to the value specied in subsection (b) of

this section. Failure to restore the rst installment within the allotted

time will be considered a material breach of contract. No timber shall

be cut or removed from the contract area until the rst installment is

restored.

(d) Notwithstanding the provisions of subsections (b)(3) and (b)(4)

of this section, adjustments in the due dates for anniversary payments

may be made by the Government if the Contracting Ofcer interrupts

or delays contract operations for a period expected to last at least

thirty (30) days, and the interruption or delay is beyond the

Purchaser’s control. Any adjustment made to the due dates for

anniversary payments will be commensurate with the extension of

operating time granted in accordance with Sec. 9. The Purchaser shall

request such adjustment in writing before the due date for an

anniversary payment contained in subsections (b)(3) and (b)(4) of

this section.

(e) If Purchaser increases the performance bond as permitted by

Sec. 39(b), cutting of timber of a value not in excess of the increase

in value of such bond may be permitted prior to the payment of the

second installment or subsequent installments; Provided, however,

that no timber may be skidded, yarded, or otherwise transported to a

loading point or removed from the contract area prior to payment of

any installment which, but for provisions of this subsection, would

otherwise be due under the provisions of Sec. 3(b).

(f) If Purchaser provides a payment bond, as permitted by Sec.

39(d), cutting and/or removal of timber of a value not in excess of the

penal sum of such bond may be permitted prior to the payment of the

second installment or subsequent installments. Unless a shorter

period is agreed to by Purchaser and Government, Government shall

bill Purchaser monthly for timber skidded, yarded, or otherwise

transported to a loading point or removed from the contract area.

Such billing shall include any amount due for related road

maintenance fees and other charges required under this contract.

Purchaser shall make payment within fteen (15) days of the billing

date shown on the billing form.

(g) For the purpose of determining (1) when payments are due or

(2) the value of timber subject to any special bonding provisions,

Government shall calculate the value of timber in accordance with

the provisions of Exhibit B.

removal expires or the contract is cancelled, credit against the total

purchase price will be determined pursuant to Sec. 11. The

Government will then bill the Purchaser for the amount due, payable

within fteen (15) days of the demand for damages.

(h) Notwithstanding Sec. 3(a), if the time specied for cutting and

(i) Purchaser shall make all payments at a depository as designated

by the Contracting Ofcer in cash or by money order, check, credit

card, or electronic transfer made payable to the Department of the

Interior, Bureau of Land Management.

(j) For any payments or other charges not paid when due, interest

shall accrue on the amount due at the Department of Treasury’s

Current Value of Funds rate published in the Federal Register,

beginning thirty (30) calendar days after the billing date shown on the

billing form. For every demand letter issued, an administrative charge

will be assessed. If payment has not been received within ninety (90)

calendar days after the billing date shown on the billing form,

administrative penalties will be assessed at a rate of 6 percent per

annum on any outstanding principal balance. All fees are assessed in

accordance with the Debt Collection Improvement Act of 1996 (110

Stat. 1321) or any amendment thereof.

Sec. 4. Time for Cutting and Removal - Except as otherwise

provided in this contract, Purchaser may begin cutting and removing

timber sold under this contract on the date this contract is signed by

the Contracting Ofcer. Purchaser’s right to cut and remove such

timber shall expire ( ) months after

such date; Provided, however, extensions of time may be granted as

provided in Sec. 9.

Sec. 5. Denitions

(a) Contracting Ofcer - the Bureau of Land Management ofcial

who would have authority to execute this contract and delegate

authority to take action in connection with this contract.

(b) Authorized Ofcer - any employee of the Bureau of Land

Management who has been delegated, by the Contracting Ofcer, the

authority to take action in connection with this contract.

thereof, which are capable of being measured in board feet.

(d) Loading Point - any landing or other area in which logs are

capable of being loaded for transportation out of the contract area;

Provided, however, that right-of-way timber which has been cut shall

not be considered to be at a loading point until such time as the logs

from any source are actually transported from that portion of the

right-of-way.

(e) Operating Season - the time of year in which operations of the

type allowed or required are normally conducted and not specically

restricted under this contract.

Sec. 6. Inspection of Timber and Disclaimer of Warranty

(a) Purchaser warrants that this contract is accepted and executed

on the basis of its examination and inspection of the timber sold

under this contract and its opinion of the value thereof.

(b) Government expressly disclaims any warranty of tness of the

timber for any purpose; all timber sold hereunder is accepted As Is

without any warranty of merchantability by Government. Any

warranty as to the quantity or quality of the timber sold hereunder is

expressly disclaimed by Government. Refund to or recovery by

Purchaser for failure of title to any timber sold hereunder shall not

exceed the value of such timber computed at unit prices per species

or for all species included as set forth in Exhibit B.

Sec. 7. Passage of Title and Risk of Loss - Title to timber

sold under this contract shall remain in Government and shall not

pass to Purchaser until such timber has been paid for and removed

from the contract area. Unless cut timber is sold under this contract,

risk of loss shall be borne by Purchaser after the timber is cut;

(Form 5450-3, page 2)

Provided, however, that if loss results from a re which was not

caused by Purchaser, Purchaser’s contractors, subcontractors, or the

employees of any of them, the risk of loss shall be borne by the party

holding title. If cut timber is sold under this contract, risk of loss shall

be borne by the party holding title. Risk of loss to Government shall

not exceed the value of such timber computed at the unit prices per

species or for all species included as set forth in Exhibit B. Nothing

herein shall be construed to relieve either party from liability for any

breach of contract or any wrongful or negligent act. As used in this

section, the term cut timber refers only to timber which has been

felled, bucked, piled at a loading point, or otherwise severed by direct

human activity prior to the date this contract was entered into.

Sec. 8. Sales of Additional Timber - If the Authorized Ofcer

and Purchaser agree that additional timber should be removed and the

Contracting Ofcer determines that the sale will not be detrimental to

the interests of Government and is within the provisions of 43 CFR

5402.0-6, the Contracting Ofcer, or Authorized Ofcer if designated,

shall grant written permission to Purchaser to cut and remove

such timber. If permission is granted, Purchaser shall pay for

such timber at a price determined by the Authorized Ofcer in

accordance with BLM-prescribed procedures. The value of such

timber shall be added to total purchase price in Sec. 2. Payment for

such timber shall be made in accordance with Sec. 3(b) or 3(f), except

that, if all contract payments required by Sec. 3(b) or 3(f) have been

made, payment for such timber shall be made in advance as a

condition of granting such permission.

Sec. 9. Extension of Time and Reappraisal - If Purchaser

shows that delay in cutting and removal was due to causes beyond

their control and without their fault or negligence, the Contracting

Ofcer may grant an extension of time, not to exceed one (1) year,

upon written request of Purchaser. Any such extension shall provide

the Purchaser with an equal amount of operating time as would have

been available without the delay. Such written request shall be led

with the Contracting Ofcer prior to the expiration of the time for

cutting and removal expressed in Sec. 4. If an extension of time is

granted, except as provided by 43 CFR 5473.4, timber remaining on

contract area shall be reappraised by the Authorized Ofcer using

BLM-prescribed procedures, and the total purchase price and Exhibit

B adjusted accordingly; Provided, however, no adjustment shall be

made by reason of timber being enhanced in value by Purchaser,

nor shall the reappraised total purchase price be less than the total

purchase price in effect during the original time for cutting and

removal or the last extension. The Contracting Ofcer may require

that the reappraised total purchase price shall be paid in advance as a

condition of granting an extension. Market uctuations shall not be

cause for consideration of contract extensions.

Sec. 10. Violations, Suspension, and Cancellation

(a) If Purchaser violates any provision of this contract, the

Contracting Ofcer may, by written notice, suspend any further

operations of Purchaser under this contract, except such operations as

may be necessary to remedy the violation. If Purchaser fails to

remedy the violation within thirty (30) days after receipt of a

suspension notice, the Contracting Ofcer may, by written notice,

cancel the rights of the Purchaser under this contract and take

appropriate action to recover all damages suffered by Government by

reason of such violation, including application toward payment of

such damages of any advance payments and any performance bonds

or, where applicable, any payment bonds; Provided, however, that if

the violation involves nonpayment of amounts due for timber cut

and/or removed under a payment bond of a corporate surety, the

Contracting Ofcer must, in addition to the above requirements,

allow sixty (60) days after making demand upon surety for any

payment due before cancelling the rights of Purchaser.

damages under applicable law. For purposes of determining damages

under this section, the value of the trespass timber shall be based

upon the fair market value of the particular timber cut or removed at

the time of trespass. Any payment made for purchase price of timber

cut or removed in trespass shall be deducted to the extent of single

damages or the value of timber under this contract, whichever is

lesser, from amount due because of trespass.

(b) If Purchaser cuts or removes any timber sold under this

contract during any period of suspension, such cutting or removal

shall be considered a willful trespass and render Purchaser liable for

failure to make an installment payment when due, the Contracting

Ofcer may require Purchaser to pay the entire remaining balance of

the total purchase price or any portion thereof as a condition of

terminating the suspension.

(d) In the event timber is entirely removed or the time for cutting

and removal has passed, the suspension notice otherwise required in

this section need not be issued prior to the notice of cancellation.

(e) If Purchaser, Purchaser’s contractors, subcontractors, or the

employees of any of them, cuts, injures, or removes any Government

timber reserved under this contract, they shall fully cooperate, upon

request of the Authorized Ofcer, in the investigation of such acts. If

in the opinion of the Contracting Ofcer, full cooperation is not

received or will not be forthcoming, said ofcial may suspend that

portion of Purchaser’s operations necessary to preserve evidence

pending investigation or permit safe investigation of such acts.

Sec. 11. Credit Against Purchase Price - If the time specied

for cutting and removal of timber has expired or the rights of

Purchaser have been cancelled, Purchaser shall be entitled to a credit

against any amount which is due and owing Government for timber

remaining on the contract area. The Contracting Ofcer shall

determine the credit value of the remaining timber as soon as possible

after the date of expiration or cancellation. Credit value of the

remaining timber shall be total market value as established by the

Contracting Ofcer by reappraisal or resale, or total value based upon

contract unit prices as shown on Exhibit B, whichever is less. There

shall be deducted from credit value such amounts as the Contracting

Ofcer determines adequate to cover costs to Government resulting

from Purchaser’s failure to perform, including but not limited to costs

of appraising and administering any resale of timber.

Sec. 12. Hold Harmless and Responsibility for Damages

to the Government - Purchaser agrees to hold the Government

harmless from any claim for damage or loss of property, personal

injury, or death and to be liable for any damage suffered, cost or

expense incurred by the Government which claim, damage, cost, or

expense arise out of any operations under this contract and result

from any breach of contract or wrongful or negligent act or omission

of Purchaser, Purchaser’s contractors, subcontractors, or employees

of any of them. Purchaser shall pay Government for such damages

after written demand therefore by the Contracting Ofcer.

Sec. 13. Timber Trespass - If in connection with operations

hereunder Purchaser, Purchaser’s contractors, subcontractors, or the

employees of any of them, cuts, injures, or removes any Government

timber, other than timber sold under this contract, Purchaser shall be

liable for damages under applicable law. Purchaser shall pay Gov-

ernment for such damages after written demand therefore by the

Contracting Ofcer.

Sec. 14. Protection of Roads, Utilities, and Improvements

- Existing telephone lines, transmission lines, fences, ditches, roads,

trails, and other improvements shall be protected as far as practicable

in all phases of Purchaser’s operations. All such roads and ditches

shall be kept free of logs, slash, and debris resulting from Purchaser’s

operations. Damage to roads, utilities, and improvements shall be

promptly paid for or repaired to a condition which, in the opinion of

the Authorized Ofcer, is at least as good as the condition just prior

to such damage.

(Form 5450-3, page 3)

Sec. 15. Fire Prevention and Slash Disposal - Purchaser shall

take such measures for prevention and suppression of re on the

contract area and other adjacent Government lands used or traversed

by Purchaser in connection with operations as are required by

applicable laws and regulations. However, when in the opinion of the

Authorized Ofcer, weather and other conditions affecting re

incidence and control make special precautions necessary to protect

the contract area and said Government lands, Purchaser shall take

such additional or other re prevention and control measures as may

be required by the Authorized Ofcer. Disposal of slash shall be done

in accordance with a plan approved by the Authorized Ofcer or as

provided in Sec. 42.

Sec. 16. Construction, Use, and Maintenance of Roads

and Facilities

(a) Subject to the written approval of and regulation by the

Contracting Ofcer, Purchaser may: (1) construct and use any new

roads and facilities not otherwise provided for in this contract, and (2)

use any existing roads and facilities not otherwise provided for in this

contract.

(b) Except as provided in Sec. 12, Purchaser shall perform or pay

for repair and maintenance of any road or facility used under the

terms of this contract in accordance with the requirements of Sec. 42;

Provided, however, that Purchaser shall not be responsible for

maintenance or repair of wear or damage caused by third parties, or

maintenance or repair which exceeds the standards of required

maintenance shown in Sec. 42; and Provided, further, that

Purchaser’s responsibility under this provision shall not commence

prior to the date on which Purchaser rst begins operations and

shall cease upon completion and written acceptance of all contract

requirements other than slash disposal, except for maintenance and

repair of damages resulting from Purchaser’s slash disposal activities.

Sec. 17. Limitations of Road Use

(a) Purchaser’s right under this contract to use existing Government

roads described herein, or roads to be constructed, is limited to

removal of timber sold and the transport of mineral materials under

this contract; Provided, however, that this provision shall not limit

any right to use Government roads or rights-of-way which have been

granted to Purchaser pursuant to 43 CFR Group 2800.

(b) For the purpose of protecting roads described herein, Purchaser

shall immediately discontinue use of said roads upon receipt of

written notice that the Authorized Ofcer has determined that

continued use will cause excessive damage to said roads.

Sec. 18. Acceptance of Road Construction

(a) Whenever Purchaser shall deliver to the Contracting Ofcer

a written statement that the road construction is complete, pursuant

to the contract terms, the Authorized Ofcer shall promptly inspect

such road. If the contract road construction requirements have been

completed to the satisfaction of the Contracting Ofcer, Purchaser

will be given written notice of acceptance, and, except as provided in

Sec. 12, be released from further liability or duty for construction or

reconstruction of such road.

(b) Notwithstanding acceptance of any road under this section,

Purchaser shall remain liable for maintenance and repair of any such

road in accordance with the provisions of Sec. 16.

feet, Government shall become responsible for any estimated cost

which exceeds the above amounts. Government may elect to meet its

share by reducing the total purchase price or by payment of such cost

to Purchaser or by performing the Purchaser’s share of the necessary

work. Where the Contracting Ofcer determines that the damages

caused by such major physical change are so great that restoration,

reconstruction, or construction is not practical under the cost-sharing

arrangement, the Contracting Ofcer may cancel the timber sale

contract notwithstanding any provisions thereof. The estimated cost

of additional work shall be calculated by the Authorized Ofcer

using BLM-prescribed appraisal procedures. Such cost shall include

the cumulative estimated costs of repairing damage from slides,

washouts, landslips, re, etc., caused by said event. If necessary,

plans and contract specications shall be revised, and the contract

modied, to meet the new conditions. Purchaser must obtain advance

approval from the Contracting Ofcer for such additional work in

order for Purchaser to be eligible for cost adjustment under this

section. The payment for physical changes shall be made by crediting

against the total actual purchase price and may be accomplished by

applying the credit to future installments owed by the Purchaser.

Sec. 19. Cost Adjustment for Physical Changes - If, prior to

acceptance of a road under Sec. 18, a major physical change, caused

by a single event, and not due to negligence of Purchaser, Purchaser’s

contractors, subcontractors, or the employees of any of them, results

in additional construction work by Purchaser involving an additional

estimated cost of more than: (1) $1,000 for sales under one million

board feet; (2) $1.00 per thousand board feet for sale of one to three

million board feet; or (3) $3,000 for sales over three million board

Sec. 20. Design Change - If the Purchaser requests and the

Contracting Ofcer agrees to a design change of a substantial nature

to any road, road structure, or bridge required to be constructed or

improved under the terms of this contract, or, in the absence of such a

request, the Contracting Ofcer determines that a design change of a

substantial nature is needed, the total purchase price shall be revised

to reect the estimated increase or decrease in cost from such design

change. A design change of a substantial nature is one that would result

in a cost adjustment of $2,000 or more.

Sec. 21. Rights and Obligations After Time for Removal of

Personal Property or Cancellation of the Rights of the

Purchaser - If any of Purchaser’s obligations remain unperformed

after expiration of the time for removal of personal property, as set

forth in Sec. 40, or if the rights of Purchaser under this contract have

been cancelled by Government, all provisions of this contract for the

benet and protection of Government or third parties shall remain in

effect until this contract is terminated in its entirety by Government.

Sec. 22. Protection of Survey Monuments, Witness

Corners, Reference Monuments, and Bearing Trees -

Purchaser shall protect all survey monuments, witness corners,

reference monuments, and bearing trees against destruction,

obliteration, or damage during operations on the contract area. If any

monuments, corners, or accessories are destroyed, obliterated, or

damaged by such operations, Purchaser shall hire an appropriate

county surveyor or registered land surveyor to reestablish or restore

the monuments, corners, or accessories, at the same location, using

surveying procedures in accordance with the Manual of Instructions

for the Survey of the Public Lands of the United States, and shall

record such survey in appropriate county records. The Authorized

Ofcer may prescribe in writing additional requirements for

protection of monuments, corners, and bearing trees.

Sec. 23. Protection of Cultural Resources - If in connection

with operations under this contract the Purchaser, Purchaser’s

contractors, subcontractors, or the employees of any of them,

discovers, encounters, or becomes aware of any object or sites of

cultural value on the contract area, such as historical or prehistorical

ruins, graves, grave markers, fossils, or artifacts, the Purchaser shall

immediately suspend all operations in the vicinity of the cultural

value and shall notify the Authorized Ofcer of the ndings.

Operations may resume at the discovery site upon receipt of written

instructions and authorization by the Contracting Ofcer.

Sec. 24. Purchaser’s Representative - At all times when

operations are in progress under this contract, Purchaser shall have an

authorized representative, whom shall be designated in writing by

Purchaser, readily available on the contract area who shall be

(Form 5450-3, page 4)

authorized to receive, in behalf of Purchaser, any notices or

instructions from the Authorized Ofcer in regard to performance

under this contract. Purchaser shall take such action as required by

the terms of this contract.

Sec. 25. Simultaneous Use of Contract Area by Others -

The simultaneous use of the contract area by others may be

authorized by the Government through issuance of permits, leases, or

contracts, provided that the Contracting Ofcer rst determines that

such use of the contract area will not seriously interfere with the

operations of the Purchaser.

Sec. 26. Watershed Protection: Water Quality, Erosion

Control, and Soil Damage

(a) Purchaser shall comply with all applicable State and Federal

laws and regulations pertaining to water quality in connection with

any operations under this contract.

(b) Purchaser shall take every reasonable precaution not to pollute

or obstruct any stream, lake, or reservoir on or near the contract area

in connection with any operations under this contract. If Purchaser’s

operations cause pollution or obstruction of any stream, lake, or

reservoir on or near the contract area, Purchaser shall correct the

condition to the satisfaction of the Authorized Ofcer.

minimize erosion and soil damage in connection with any operations

under this contract, including but not limited to construction of water

bars on yarding and spur roads as designated by the Authorized

Ofcer. Purchaser shall immediately discontinue any construction,

timber harvesting, or hauling operations under this contract, upon

receipt of written notice from the Contracting Ofcer that due to

weather or soil moisture conditions, such operations will cause

excessive damage to the soil. The Contracting Ofcer shall notify

Purchaser, in writing, when such operations may be resumed.

Sec. 27. Refuse Control and Disposition of Waste

Materials

(a) Purchaser shall comply with all applicable State and Federal

laws and regulations pertaining to refuse control and disposition of

waste materials in connection with any operations under this contract.

(b) Purchaser shall, to the satisfaction of the Authorized Ofcer,

remove, or otherwise dispose of all garbage, temporary buildings,

trash, litter, discarded equipment or parts, waste materials, or other

refuse resulting from Purchaser’s operations. Areas for disposal of

waste material shall be subject to approval of the Authorized Ofcer.

and similar substances shall be disposed of in a manner that will

prevent their entry by drainage, high water, or other means into any

river, watercourse, lake, or reservoir in or near Purchaser’s

operations. Water used to wash down equipment used for petroleum

products, industrial chemicals, cement, or other toxic materials shall

be disposed of in a manner that will prevent their entry into any

watercourse or waterway.

Sec. 28. Storage and Handling of Hazardous Materials

(a) Purchaser shall comply with all applicable State and Federal

laws and regulations pertaining to storage, handling, use, and disposal

of industrial chemicals, pesticides, herbicides, and other hazardous

materials in connection with any operations under this contract.

surrounded by impermeable containment dikes of sufcient capacity

to contain the aggregate capacity of all tanks.

(b) All petroleum products, industrial chemicals, and similar toxic

or volatile materials stored by Purchaser on or near the contract area,

in connection with operations under this contract, shall be stored in

durable containers and shall be stored in areas, as determined by the

Authorized Ofcer, which are either located so that any accidental

spillage will not drain into any watercourses, lakes, or reservoirs

or, when such areas are not available, shall be stored in an area

Sec. 29. Safety and Health - Purchaser shall conduct all

operations in connection with this contract in compliance with the

applicable provisions of Federal, State, and local safety, health, and

sanitation laws, codes, and regulations and shall make it possible for

the Authorized Ofcer to inspect such operations.

Sec. 30. Equal Opportunity - The Purchaser will comply with all

provisions of Executive Order No. 11246 of September 24, 1965, as

amended, and of the rules, regulations, and relevant orders of the

Secretary of Labor.

Sec. 31. Records and Reports - Upon request of the Authorized

Ofcer, Purchaser shall furnish the following records and reports: (1)

volume or quantity of timber cut and removed from the contract area;

(2) road costs including road use fees paid in connection with

removing timber from the contract area; and (3) prices received for

lumber and other wood products.

Sec. 32. Unsatisfactory Bond - Whenever any performance or

payment bond furnished under this contract becomes unsatisfactory

to the Contracting Ofcer, said ofcial may require a new bond.

Sec. 33. Assignments

(a) Purchaser may not assign this contract or any interest therein

without written approval of the Contracting Ofcer. An assignment

shall contain all the terms and conditions agreed upon by the parties

thereto.

(b) The Contracting Ofcer will not approve any assignment

involving contract performance unless assignee: (1) is authorized to

transact business in the State indicated in Sec. 1; (2) submits such

information as is necessary to assure the Contracting Ofcer of their

ability to fulll the contract; and (3) furnishes a performance bond as

required by Sec. 39 or obtains a commitment from the previous

surety to be bound by the assignment when approved.

Sec. 34. Contingent Fees - The Purchaser warrants that no

person or agency has been employed or retained to solicit or secure

this contract upon an agreement or understanding for a commission,

percentage, brokerage, or contingent fee excepting bona de

employees or bona de established commercial agencies maintained

by Purchaser for the purpose of securing business. For breach or

violation of this warranty, Government shall have the right to cancel

this contract without liability or, in its discretion, to require Purchaser

to pay, in addition to the contract price or consideration, the full

amount of such commission, percentage, brokerage, or contingent

fee.

Sec. 35. Successors in Interest - Every obligation hereunder

shall extend to and be binding upon the successors in interest of

the parties hereto and every benet hereunder shall inure to such

successors.

Sec. 36. Exercise of Rights or Duties of the Authorized

Ofcer - The rights or duties of the Authorized Ofcer may be

exercised by the Contracting Ofcer or said ofcial’s designated

representative.

Sec. 37. Ofcials Not to Benet - No Member of, or Delegate to

Congress, or Resident Commissioner, after said ofcial’s election or

appointment, or either before or after said ofcial has qualied and

during said ofcial’s continuance in ofce, and no ofcer, agent, or

employee of the Department of the Interior, except as provided in

43 CFR (20.735-24) shall be admitted to any share or part in this

contract or derive any benet that may arise therefrom; and the

provisions of Section 3741 of the Revised Statutes of the United

States, as amended (41 U.S.C. Sec. 22), and Sections 431, 432, and

433, Title 18 U.S.C., relating to contracts, enter into and form a part

(Form 5450-3, page 5)

of this contract so far as the same may be applicable.

Sec. 38. Disputes

(a) This contract is subject to the Contract Disputes Act of 1978, as

amended (41 U.S.C. 601-613).

(b) Except as provided in the Act, all disputes arising under or

relating to this contract shall be resolved under this clause.

written assertion by one of the contracting parties seeking, as a matter

of right, the payment of money in a sum certain, the adjustment or

interpretation of contract terms, or other relief arising under or

relating to this contract. However, a written demand or written

assertion by the Purchaser seeking the payment of money exceeding

$100,000 is not a claim under the Act until certied. A voucher,

invoice, or other routine request for payment that is not in dispute

when submitted is not a claim under the Act. The submission may be

converted to a claim under the Act, by complying with the

submission and certication requirements of this clause, if it is

disputed either as to liability or amount or is not acted upon in a

reasonable time.

(d) A claim by the Purchaser shall be made in writing and, unless

otherwise stated in this contract, submitted within six (6) years after

accrual of the claim to the Contracting Ofcer for a written decision.

A claim by the Government against the Purchaser shall be subject to

a written decision by the Contracting Ofcer.

(e) The Purchaser shall provide certication when submitting any

claim exceeding $100,000. The certication requirement does not

apply to issues in controversy that have not been submitted as all or

part of a claim. The certication shall state as follows: “I certify that

the claim is made in good faith; that the supporting data are accurate

and complete to the best of my knowledge and belief; that the amount

requested accurately reects the contract adjustment for which the

Purchaser believes the Government is liable; and that I am duly

authorized to certify the claim in behalf of the Purchaser.” The

certication may be executed by any person duly authorized to bind

the Purchaser with respect to the claim.

(f) For Purchaser claims of $100,000 or less, the Contracting

Ofcer must, if requested in writing by the Purchaser, render a

decision within sixty (60) days of the request. For Purchaser-certied

claims over $100,000, the Contracting Ofcer must, within sixty (60)

days, decide the claim or notify the Purchaser of the date by which

the decision will be made.

(g) The Contracting Ofcer’s decision shall be nal unless the

Purchaser appeals or les a suit as provided in the Act.

(h) If the claim by the Purchaser is submitted to the Contracting

Ofcer or a claim by the Government is presented to the Purchaser,

the parties, by mutual consent, may agree to use alternative dispute

resolution (ADR). If the Purchaser refuses an offer for ADR, the

Purchaser shall inform the Contracting Ofcer, in writing, of the

Purchaser’s specic reasons for rejecting the offer.

(i) The Government shall pay interest on the amount found due and

unpaid from: (1) the date that the Contracting Ofcer receives the

claim (certied, if required); or (2) the date that payment otherwise

would be due, if that date is later, until the date of payment. Simple

interest on claims shall be paid at the rate, xed by the Secretary of

the Treasury as provided in the Act, which is applicable to the period

during which the Contracting Ofcer receives the claim and then at

the rate applicable for each six (6) month period as xed by the

Treasury Secretary during the pendency of the claim.

(j) The Purchaser shall proceed diligently with performance of this

contract, pending nal resolution of any request for relief, claim,

appeal, or action arising under the contract, and comply with any

decision of the Contracting Ofcer.

Sec. 39. Bond

(a) A performance bond shall be led by Purchaser on or before

the date this contract is signed by the Contracting Ofcer in the

amount of

dollars ( ).

(b) If Purchaser elects to cut timber before payment of the second

installment or subsequent installments, Purchaser shall increase the

amount of the required performance bond by an amount equal to the

second installment and one or more additional installments as set forth

in Sec. 3(b). The adjusted bond must be approved, in writing, by the

Contracting Ofcer prior to cutting any timber under the adjusted

bond. The increased amount of bond shall be used to ensure payment

for such timber. Timber cut pursuant to this subsection may be paid

for in installments. Upon payment, the increased amount of bond may

be applied to other timber sold under this contract to permit its

cutting in advance of payment.

Contracting Ofcer, said ofcial may, at their discretion, reduce the

amount of the required performance bond; Provided, however, the

performance bond may not be reduced below the amount of

dollars

( ) until provision under Sec. 3(b)(1)(i) or

3(b)(1)(ii) have been completed. Further, the performance bond may

not be reduced below the amount of

dollars

( ) until the total purchase price has been paid. The

performance bond shall be forfeited to the amount of damages, as

determined by the Contracting Ofcer, if all contract provisions are

not faithfully and fully performed by Purchaser. If the amount of

damages exceeds the amount of the bond, Purchaser hereby agrees to

pay the excess. Upon satisfactory performance of all provisions of

this contract, the bond shall be cancelled or, if cash or negotiable

securities are furnished in lieu of a performance bond, such cash or

negotiable securities shall be returned to Purchaser. In event of

litigation, any determination by the Contracting Ofcer as to the

amount of damages will be subject to review by a court of competent

jurisdiction.

(d) If Purchaser elects to: (1) cut and remove timber; (2) remove

timber already cut which has been secured by an increased

performance bond as provided in Sec. 39(b), before payment of the

second installment or subsequent installments, Purchaser shall obtain

a payment bond in an amount equal to the second installment and one

or more additional installments as determined by the Authorized

Ofcer. The payment bond must be approved, in writing, by the

Contracting Ofcer prior to cutting or removing any timber under the

bond. The amount of the bond shall be used to ensure payment for

such timber; Provided, however, that such bond shall be considered

as payment under Sec. 7, for the purpose of passing title and risk of

loss to timber sold. Timber cut pursuant to this subsection shall be

paid for as provided in Sec. 3(f). Upon payment, the amount of the

bond may be applied to other timber to permit its cutting and/or

removal in advance of payment. If a bond of a corporate surety is

used, it shall provide that if Purchaser fails to make payment as

required by Sec. 3(f), the surety will make such payment including

interest as specied in Sec. 3(j), to Government within sixty (60)

days after demand by Government.

Sec. 40. Time for Removal of Personal Property - Purchaser

shall have the right within ( ) month(s) after

expiration of time for cutting and removal to remove Purchaser’s

equipment, improvements, or other personal property from

Government lands or rights-of-way; Provided, however, that any

improvements such as road surfacing, culverts, and bridges which

have become a permanent part of a Government road, shall not be

removed. The Contracting Ofcer may, in said ofcial’s discretion,

grant an extension of time, not to exceed three (3) months for

(Form 5450-3, page 6)

removal of personal property. Any improvements remaining on land and rights-of-way at the end of this period may be removed at

Government lands and rights-of-way at the end of the period for the expense of Purchaser and disposed of in accordance with

removal, or any extension, shall become the property of Government. applicable law.

Any equipment or other personal property remaining on Government

Sec. 41. Timber Reserved from Cutting - The following timber on this contract area is hereby reserved from cutting and removal under the

terms of this contract and is retained as the property of Government.

Sec. 42. Special Provisions - Purchaser shall comply with the special provisions which are attached hereto and made a part hereof unless

otherwise authorized, in writing, by the Contracting Ofcer.

IN WITNESS WHEREOF, the parties hereto have executed this contract as of the day rst above written.

If Individual or Partnership, sign here:

(Name of Firm)

(Signature)

(Address)

(Signature)

(Address)

(Signature)

(Address)

If Corporation, sign here:

(Name of Corporation)

(Signature)

(Title)

UNITED STATES OF AMERICA

(Signature)

(Title)

(Date)

Title 18 U.S.C. Section 1001, makes it a crime for any person knowingly and willfully to make to any department or agency of the United States any false, ctitious, or

fraudulent statements or representations as to any matter within its jurisdiction.

(If Purchaser is a corporation, the following certicate must be executed by the Secretary or Assistant Secretary of the Corporation.)

, certify that I am the

Secretary of the corporation named as Purchaser

herein; that

, who signed the contract was then of said

corporation, that said contract was duly signed for and in behalf of said corporation by authority of its governing body, and is within the scope of its corporate powers.

Signature:

(Form 5450-3, page 7)

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Form 5450-3: UNITED STATES DEPARTMENT OF THE INTERIOR (Bureau of Land Management - Main Domain)

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