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
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
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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.
(c) Notwithstanding the provisions of subsection (b)(1) of this
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 Purchasers 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
Purchasers 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.
(c) Timber - standing trees, downed trees or logs, or portions
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
(c) If Purchasers operations are suspended because of Purchasers
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 Purchasers 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 Purchasers 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, Purchasers 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, Purchasers 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 Purchasers operations. All such roads and ditches
shall be kept free of logs, slash, and debris resulting from Purchasers
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
Purchasers 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 Purchasers 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 Purchasers 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, Purchasers
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 Purchasers 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, Purchasers
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 Purchasers
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.
(c) Purchaser shall undertake every reasonable measure to
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 Purchasers operations. Areas for disposal of
waste material shall be subject to approval of the Authorized Ofcer.
(c) Waste materials, such as garbage, trash, oil, grease, chemicals,
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 Purchasers
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.
(c) “Claim,” as used in this clause, means a written demand or
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cers 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
Purchasers 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.
(c) As contract provisions are completed to the satisfaction of the
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 Purchasers
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
By
(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
I,
, 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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