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FSH 2409.18 - TIMBER SALE PREPARATION HANDBOOK
R-1 SUPPLEMENT NO. 2409.18-95-3
EFFECTIVE 01/29/96
53.4 - Forest Products Sale Permit, Form FS-2400-4.
1. General. Forest Products Sale Permit, FS-2400-4, (commonly referred to as "Green
Slip") is the simplest form on which forest products can be sold.
All FS-2400-4 permits will be written as Lump Sum Single Payment unit sales. FS-2400-4
permits are not to be used when measurement will be done after felling.
a. Distribution of Permit.
(1) Original - Signed by the authorizing Forest Officer after payment has been received,
and if required, performance bond has been provided. Original 2400-4 permit will be
maintained at the issuing office until closure.
(2) Signed copy to Purchaser after payment has been received, and if required,
performance bond has been provided.
(3) A copy of the FS-2400-4 permit to the ATSA input location for processing within the
accounting system. An additional copy of the permit will need to be sent to the location
performing the ATSA audit responsibility. Likewise, a copy of the paid Bill for Collection
(FS-6500-89a) will need to be sent to the audit location.
(4) Upon closure, the original FS-2400-4 permit should be sent to the ATSA audit location
where a permanent file will be retained for 3 years.
b. Branding (Export Control). The branding and paint marking requirements shall apply
to sawlogs sold under FS-2400-4. In addition, the following statement shall be typed in the
Remarks block, along with the assigned brand: "The export and substitution regulations
apply to this permit."
c. Timber Sale Administrator Certification. Certification will not be required for the
administration of FS-2400-4 permits.
d. Supplementing to FS-2400-4. If additional provisions are needed which cannot be
entered in the spaces provided, use Timber Sale Contract FS-2400-3. Additional pages
shall not be appended to FS-2400-4.
A bid guarantee should be required on any sale which is advertised and should not be less
than 10 percent of the forest product value or a set minimum deposit. The Forest Officer
authorized to approve the award of the permit shall decide whether personal or company
checks will be accepted as bid guarantee; if not, the words "or check" must be deleted from
the bid form.
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When a performance bond is required, add the statement as shown under item (20) of this
supplement.
Do not use this permit for sales with a stumpage value greater than $10,000.00. The Forest
Supervisor may set a lower limit if desired. All sawlogs permits will be formally or
informally advertised. A 2400-17, Appraisal Summary will be prepared for all sales
having an appraised value of more than $2,000.
2. Instructions for Preparation of FS-2400-4 (7/77). The following guides shall be used in
preparing log or miscellaneous forest product sales on the FS-2400-4, dated (7/77). The numbers
in parentheses () refer to the same numbered items on 53.4 - Exhibit 01. Unless otherwise stated,
the items should be filled in when the permit is prepared.
(1) Full name and address, including ZIP code of Purchaser. Name shall agree with name
in item (45) if Purchaser is an individual doing business for himself. If Purchaser is a
corporation, partnership, or an individual doing business under a firm's name, indicate
name of corporation, partnership, or firm. In all cases, use full name. The use of
nicknames is not acceptable.
(2) Enter date permit is issued (awarded) to Purchaser. This is the date the Forest Officer
authorized to sign the permit determines that Purchaser has signed and dated the permit,
total payment has been received and an acceptable performance bond has also been
received, if required. The Forest Officer shall not sign the permit until the above items
have been satisfactorily completed.
(3) Enter contract number for the permit. All permits shall be assigned a contract number
from the automated list generated by the ATSA system.
(4) Insert regulations under which sale is made.
(5) Enter Forest name.
(6) Enter name and number of District.
(7) Enter State name.
(8) Enter compartment number(s), subcompartment and stand number.
(9) (NO LONGER APPLICABLE - LEAVE BLANK)
(10) Enter applicable size class code.
(11) (NO LONGER APPLICABLE - LEAVE BLANK)
(12) Show section, township, range, meridian, name of drainage, and county.
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(13) Enter "Volume determined in presale estimate by Forest Service."
(14) If Purchaser is to dispose of slash, this will be stated. If the Forest Service is to
participate in all or part of the slash disposal job, the extent of our participation will be
determined and appropriate collection made.
(15),(16),(17) For sawlog sales, insert utilization standards as found in Chapter 50.
Standards for special products, posts, and poles should be established locally.
(18) Insert "N/A".
(19) Insert permissible stump heights (Chapter 50).
(20) Indicate how Included Timber is designated for cutting and how cutting boundaries
are marked.
If Purchaser will be required to present a cash deposit in lieu of a performance bond, the
following wording shall be entered here as follows:
"As a further guarantee of the faithful performance of this permit, Purchase shall deposit
into a Federal depository and maintain therein, cash in the amount of
dollars
($
). In lieu there of and subject to approval by the Forest Service, Purchaser may
provide an Assignment of Savings Account or Certificate of Deposit in the amount equal
to or greater than the required cash deposit."
Describe any special fire precautions, erosion control, or other needed requirements of the
sale area.
It will be permissible to use a rubber stamp with the above statements. If a stamp is used,
make sure all copies of the permit are stamped.
(21) Reported sold item will be completed in the Supervisor's Office. The "Reported
Sold" date is the quarter in which payment was received.
(22) The termination date should be established to allow an average operator ample time
to complete removal of material, reduce or eliminate resource user conflicts, and complete
all contractual items. In no case should the termination date exceed 1 year in length.
(23) The sale should be extended on or before the termination date item (22). If an
extension is approved, insert the new termination date. Since a permit will be
automatically terminated in ATSA upon reaching the termination date in the system, it is
important that any extensions granted be approved and the revised termination date input
into ATSA promptly.
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Extension should be the exception rather than the rule. Only one extension should be
granted and this extension shall not exceed one year.
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Extension should not be considered unless the following conditions have been met:
(a) Seventy-five percent of the sale volume has been cut and removed from the sale area.
(b) All contractual items are up to date.
On FS-2400-4 permits where more time is required to remove Included Timber, the
authorizing Forest Officer will initial adjacent to the "Date Extended To" blank, or
will document the extension by letter to the Purchaser.
(24) Extension must be approved by the Forest Officer having authority to approve the
sale, his successor or superior (FSM 2404.28.
(25) Use product names listed in FSH 2409.22, Chapter 20. All products should indicate
"Live" or "Dead".
(26) Use initials of species commonly used in the region (FSH 2409.22, Chapter 20).
(27) Unit of measure to be used to calculate value (FSH 2409.22, Chapter 20).
(28) Enter number of trees, posts, poles, linear feet, and so forth.
(29) Enter thousand board feet (MBF) for all convertible products. Use standard
converting factors in FSH 2409.22, Chapter 90 for converting items shown in quantity
column (28).
(30) Insert stumpage rates. Sawtimber or other products will not be sold for less than the
Standard Rates unless supported by a TE appraisal. Appraised prices will not be lower
than minimum stumpage rates.
If an appraisal has been completed, those developed rates will be used unless they are
lower than minimum rates. Developed appraisal rates can be higher than standard rates,
but rates charged cannot be lower than minimum rates, even though the appraisal
calculation indicates lower figures.
(31) Cross out the heading "Slash" if collections are to be made for slash disposal and/or
road maintenance. These collections shall be shown on separate lines using the rate and
value columns used for slash. If slash disposal will be the only Required Deposit, do not
cross out the heading "Slash". Instead place dollar rate in the Slash column.
(32) Insert the total of unit dollar rate times quantity. Be sure to be consistent with unit
and rates. Remember, all commercial, personal use, and other product sales are subject to
the minimum dollar value as stated in FSH 2409.22, Chapter 80.
(33) Optional Entry. ATSA reports volumes sold as cut upon reaching current termination
date.
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(34) Optional Entry. See (33).
(35) Complete this space from the copy of Bill for Collection FS-6500-89a.
(36) Complete when sale is closed. This is the date when all the timber has been cut and
all permit requirements met, or the sale expires uncut. It must be prior to or on the
termination date item (22) or the extension date item (23). Sales should be closed
promptly after cutting is completed and other requirements have been accomplished.
Following closure of commercial permits a letter indicating sale closure should be sent to
Purchaser with reference to the 60-day appeal period, and a copy to the Supervisor's
Office. If cash has been deposited as a performance bond, the cash bond should be
refunded and a copy of the refund voucher sent with the closure letter to the Purchaser.
(37) Optional Entry. ATSA reports volume sold as cut upon reaching current termination
date.
(38) Complete when sale is closed. Insert actual acres cut (not gross sale area).
(39) Complete when sale is closed. The approval of closure and date will be by the Forest
Officer authorized to sign such permit originally, their successor, or supervisor. The
current ATSA Permit Product Report should be attached to the FS-2400-4 for review upon
closure approval.
(40) Show total dollar amount for K-V. Collection must be supported by an approved KV (Sale Area Betterment) plan. An approved K-V plan can be made for each sale or the
sale can be included in an approved area K-V plan. If a K-V plan has been prepared for
the sale, an approved copy should be forwarded to the Supervisor's Office at the same time
the permit and Bill for Collection is sent. If sale area is included in an approved area K-V
plan, indicate the name of the area plan.
(41) When the permit is issued, show percent and total in dollars of stumpage to be
deposited to NFF, K-V and SSF.
Enter "none" in blocks where no collection will be made.
(42) The following statements will be inserted in the "Remarks" block for Lump Sum
Sales:
"Volume estimated and not guaranteed. This is a Lump Sum Sale by area of
approximately(net) acres as designated on the ground by the Forest Service."
The following notation will be added on timber sale permits of $50.00 or less: "This sale
is final and not subject to refund."
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If sawlogs are sold as part of sale volume offering, the statement "The export and
substitution regulations apply to this permit" is to be typed in this block along with the
assigned brand.
Truck ticket numbers assigned to the permit may be listed here.
It will be permissible to use a rubber stamp with the statements placed on the permit where
space is adequate near item (42). If a rubber stamp is used, make sure that all copies of the
permit are stamped.
Additional recordkeeping items may be included here such as:
(a) Suitable or Unsuitable Forest Land. (S/U).
(b) Harvest Activity.
(c) Chargeable or Nonchargeable. (Note, CL,CD,NC,ND chargeable only occurs on
suitable forest land).
(43) Signature of approving Forest Officer authorized to sign such permit. This will be
completed following payment being received and cleared, performance bond received, if
required, and permit signed by Purchaser.
(44) Title of approving Forest Officer. This will be their job title.
(45) Signature of Purchaser. Name should be the same as (1) if Purchaser is an individual
doing business for himself. If Purchaser is a corporation, partnership or an individual
doing business under a firm name, the approving Forest Officer must determine if
individual has written authority to sign for the company, partnership or firm.
(46) Date Purchaser signs permit.
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53.4 - Exhibit 01
53.4 - EXHIBIT 01 IS A SEPARATE DOCUMENT AND CAN
BE VIEWED IN HARD-COPY IN THE MASTER SET.
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54 - OTHER REQUIREMENTS
54.1 - Performance Bonds in Timber Sales. In the Prospectus, state method used to calculate the
minimum performance bond. Refer to parent text for guidance on the mathematical calculation
and document both methods in the appraisal report for determination of the minimum bond. For
acceptable forms of bonding securing performance of the contract, refer to FSH 6509.11K,
Chapter 80, Section 83.3.
55.2 - Prospectus. Exhibits 55.2 - Exhibit 01 and 02 are samples of the prospectus used by some
forests in Region 1 and are an alternative to the prospectus in the parent text.
1. 55.2 - Exhibit 01 is considered Section A of the prospectus. This section should contain
specific information for each sale and is sent to prospective purchasers for every sale. It affords
the forests the flexibility of using necessary blanks for an individual sale.
2. 55.2 - Exhibit 02 is considered Section B of the prospectus. Section B is intended to be
the standard information for all forests, and will be updated annually by the Regional Office,
with assistance from the Forests. It contains the full narrative of information for purchasers. It is
designed to be sent to purchasers periodically as information is updated.
New information to be included on the Prospectus will be published through Interim Directive or
memorandum in the future and will be in effect for one (1) year. Forests using a prospectus
different from Section A and B will need to update their prospectus as appropriate.
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55.2 - Exhibit 01
55.2 - EXHIBIT 01 IS A SEPARATE DOCUMENT AND CAN
BE VIEWED IN HARD-COPY IN THE MASTER SET.
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55.2 - Exhibit 02
55.2 - EXHIBIT 02 IS A SEPARATE DOCUMENT AND CAN
BE VIEWED IN HARD-COPY IN THE MASTER SET.
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56 - ADVERTISEMENT.
56.1 - Preliminary Advertisements. When planning preliminary advertising periods for timber
sales, take into consideration road closures and seasonal access restrictions. Prospective bidders
should not be required to walk long distances, on closed roads, to examine timber sale offerings.
Take into consideration road closures and seasonal access restrictions when planning preliminary
advertisements.
If advertisement during a closure cannot be avoided, a preadvertisement should be sent to
prospective bidders notifying them that the sale area will be closed to vehicular traffic during the
formal advertising period (normally 30 days before bid opening). Along with the usual sale
information, the preadvertisement should state when the access road(s) will be closed and advise
interested parties to examine the sale area before it is closed to public vehicular travel.
If it is not practical to preadvertise the offering before a closure, prospective bidders may request
vehicular access in closed areas, which should be granted unless there is an overriding reason
why an exception is not warranted.
56.3 - Bid Guarantee. Refer to FSH 6509.11k, Chapter 80, Section 83.3, for instructions dealing
with purchaser's submission of acceptable forms of bonds serving as bid guarantee. This
includes corporate sureties, deposited securities, irrevocable letters of credit, and assignments of
certificates of deposit, as well as cash.
Amount of bid guarantee, normally based on l0 percent of advertised stumpage value rounded up
to the next $100, can be increased in sale situations involving greater risk. For example, in FS2400-3 or FS-2400-4 contracts, where the bid guarantee may serve as liquidated damages if
contract is not returned (or repudiated), the bid guarantee can be increased.