2409.18_10
Page 1 of 12
FOREST SERVICE HANDBOOK
ALASKA REGION (REGION 10)
JUNEAU, ALASKA
FSH 2409.18 – SALE PREPARATION HANDBOOK
CHAPTER 10 – SALE PROGRAM DEVELOPMENT – GATE SYSTEM
Regional Supplement No.: R-10 2409.18-2006-5
Effective Date: October 13, 2006
Duration: This supplement is effective until superseded or removed.
Approved: /s/ Paul K. Brewster
DENNIS E. BSCHOR
Regional Forester
Date Approved: 10/10/2006
Posting Instructions: Regional supplements are numbered consecutively by Handbook
number and calendar year. Post by document at the end of the chapter. Retain this transmittal as
the first page(s) of this document. The last R-10 supplement to this Handbook was 2409.182006-4 to chapter 90.
New Document
2409.18_10
12 Pages
Superseded Document(s)
(Interim Directive Number
and Effective Date)
2409.18_10 (2409.18 – 2006-1, 5/26/06)
2 Pages
Digest:
13.1: Region 10’s NEPA Economic Analysis Tool (NEAT) is the designated program for timber
sale financial analysis
13.2: Provides definition of terms used in NEAT-R
13.3: NEAT-R Operational Concept.
13.4: Defines required data sources for NEAT-R
R10 SUPPLEMENT 2409.18-2006-5
EFFECTIVE DATE: 10/13/2006
DURATION: This supplement is effective until superseded or removed.
2409.18_10
Page 2 of 12
FSH 2409.18 – SALE PREPARATION HANDBOOK
CHAPTER 10 – SALE PROGRAM DEVELOPMENT – GATE SYSTEM
11 – BASICS OF TIMBER SALE PROGRAM
11.4 – Timber Program Scheduling
Before issuing the Tongass 5-year sale plan annually, estimate potential annual market demand
using the procedures described in Region 10 Report Number R10-MB-413, April 2000, titled
Responding to the Market Demand for Tongass Timber: Using Adaptive Management to
Implement Sec. 101 of the 1990 Tongass Timber Reform Act.
Post the annual demand projections on the Regional and Tongass National Forest web sites.
Table 10, page 29 of the above named report will be used when posting the information.
13 – FINANCIAL AND ECONOMICAL EFFICIENCY ANALYSES
Region 10’s NEPA Economic Analysis Tool – Residual Value (NEAT_R) is approved for use in
timber sale planning analysis. The NEAT-R model provides a comparison of anticipated costs
and revenues that are part of Forest Service monetary transactions and is based on Region 10’s
Residual Value Appraisal system. NEAT_R should be used for all timber sale projects which
require either an environmental impact statement or an environmental assessment. At the line
officer’s discretion, NEAT_R may be used for projects which are being proposed under a
categorical exclusion.
13.05 – Definitions
Cruise Database. A database containing 130 historic timber sale cruises across the
Tongass. The trees were processed through the same valuation procedure used in the residual
value appraisal system. Each tree has its value calculated on a net MBF basis. The output from
this database is the pond log value per net MBF by species, diameter class, and district.
Additional outputs include the average number of logs, and the average woods defect by species,
diameter class, and district.
Current Market. The current market is defined as the most recent appraisal data
available. Data used in Gate 1 analyses should reflect market conditions when the position
statement is being developed. For Gate 2 analyses, data used in the draft environmental
documents should reflect the market conditions when the alternatives are approved by the
responsible official. Data used in final environmental documents should reflect current market
conditions.
Logging Systems. The logging systems used in NEAT_R are identical to the logging
systems appraised for use in the Residual Value Appraisal System. Refer to the Alaska Region
amendments to FSH 2409.22 for further information.
R10 SUPPLEMENT 2409.18-2006-5
EFFECTIVE DATE: 10/13/2006
DURATION: This supplement is effective until superseded or removed.
2409.18_10
Page 3 of 12
FSH 2409.18 – SALE PREPARATION HANDBOOK
CHAPTER 10 – SALE PROGRAM DEVELOPMENT – GATE SYSTEM
Pond Log Value. The pond log value is the final selling value of the finished products
minus the manufacturing costs and an allowance for profit and risk. It is the amount that a mill
can afford to pay for delivered logs.
Prescription. There are four basic prescriptions which describe the range of silvicultural
treatments commonly used.
a. Clearcut. NEAT_R calculates volumes and values based on 100 percent removal
of timber in each setting.
b. Clearcut with Reserves. NEAT_R calculates volumes and values based on the
percentage removal of timber in each setting (1 acre retention for each acre harvested,
plus an additional percentage for structure retained in harvested portion of the
setting).
There are three two-aged clearcut with reserve prescriptions:
(1) TA CCR50 – 50% of the stand is harvested, 50% is retained as structure.
(2) TA CCR40 – 40% of the stand is harvested, 60% is retained as structure.
(3) TA CCR85 – 85% of the stand is harvested, 15% is retained as structure.
c. Group Selection. NEAT_R calculates volumes and values based on a percentage
removal of timber in each setting. In group selection, the harvest prescription is 2
acre clearcuts. There are two prescriptions for group selections:
(1) GS25 – 25% of the stand is harvested per entry.
(2) GS33 – 33% of the stand is harvested per entry.
d. Single Tree Selection. NEAT_R allows the user to apply prescriptions to a stand
table for each setting, and calculates volumes and values based on the indicated
harvest trees.
Reaggregation (reag). Recombination of stand exam plots based on set criteria using the
R-10 Reaggregation extension to FSVEG.
Residual Value. A method to arrive at fair market value for timber sold. End product
selling values (revenues) are determined from a sample of timber purchaser’s records. End
product values are brought back to Alaska mills (subtract freight from point of sale) and
converted to log scale. Operational costs incurred in producing the end products are subtracted
to estimate value on the stump. An amount is then subtracted for normal profit and risk. The
remainder is the indicated fair market value or indicated advertised rate.
R10 SUPPLEMENT 2409.18-2006-5
EFFECTIVE DATE: 10/13/2006
DURATION: This supplement is effective until superseded or removed.
2409.18_10
Page 4 of 12
FSH 2409.18 – SALE PREPARATION HANDBOOK
CHAPTER 10 – SALE PROGRAM DEVELOPMENT – GATE SYSTEM
Road Construction Costs. This includes a cost estimate by road segment for all
temporary and permanent road construction and reconstruction, LTF construction or
reconstruction.
Setting. The area where all timber harvested using one prescription and one logging
system goes to one landing. Harvest units may have multiple settings, but NEAT_R calculates
all volumes, values, and costs on the setting level.
Stand Exam Data. This data set contains over 30,000 stand exam plots across the
Tongass. The stand exam points are stratified by the Volstrata they fall in, and the 30 nearest
points per Volstrata are used to produce the Gate 1 estimate of volume.
Volstrata. A GIS cover (VS95) of the 1997 Volstrata containing the commercial forest
lands on the Tongass National Forest, stratified into high (H), medium (M), and low (L) strata.
This cover was selected because it contains Volstrata data for polygons which have been stand
examined and harvested since 1997, which will be coded as harvested or second-growth on more
recent Volstrata layers. That ensures the most local stand exam plots are used. If any updates
are made to this cover based on information collected in the field, document and add to the
project record.
13.11 - Analysis at Gates 1 and 2
1. Standards for Stand Exam Data at Gate 1. For Gate 1 analysis, stand exam data is
used to generate volume estimates. The following are the standards for using stand exam data.
a. A minimum of 30 stand exam plots per Volstrata are required;
b. Stand exam plots used for this analysis will be the closest plots to the project area.
Plot selection can be done manually, or by using the NEAT_AVP Arcview Project;
c. Planners may need to restrict the plots to be considered based on geographical
variations in timber, especially between islands;
d. A map showing the locations of the plots used in relationship to the project area
must be included in the Gate 1 Position Statement; and
e. Stand exam data will be processed through FSVeg, using the R10 NEAT_R Ready
REAGG. The reports will be prepared using the following variables:
(1) Outputs by species.
(2) Include all merchantable live and dead trees.
(3) Use 2-inch diameter classes, from 9.0 inches to 100 inches.
R10 SUPPLEMENT 2409.18-2006-5
EFFECTIVE DATE: 10/13/2006
DURATION: This supplement is effective until superseded or removed.
2409.18_10
Page 5 of 12
FSH 2409.18 – SALE PREPARATION HANDBOOK
CHAPTER 10 – SALE PROGRAM DEVELOPMENT – GATE SYSTEM
2. Financial Feasibility Determination at Gate 1. Salability of the proposed project will
be determined by the stumpage value from the NEAT_R program. If the indicated value is
deficit for the current market, and/or there are not enough positive quarters in the analysis period
for a prudent operator to successfully build the roads and harvest the timber, project planners
should revisit the LSTA, using NEAT_R outputs to determine which components (units, setting,
roads, and so forth) contribute positively or negatively to the total project. Eliminate the grossly
negative components, and use NEAT_R to re-evaluate the remainder of the project.
In coordination with the line officer, determine if it is desirable to redefine the scope of
the project, based on results of the NEAT_R analysis. Ensure line officers have outputs
of the NEAT_R analysis before making the further investment decision (‘Go – No Go’)
at Gate 1.
3. Analysis at Gate 2. The design of the timber sale should be such that the sale will be
considered an economic offering. The Residual Value Appraisal System estimates the indicated
stumpage value based on project specific characteristics. A positive stumpage value in the
NEAT_R analysis indicates that the proposed project or alternative is likely to be economically
viable to potential purchasers.
Financial evaluation of alternatives shall be done using Region 10’s NEPA Economic Analysis
Tool – Residual Value (NEAT_R), which is based upon the Residual Value Appraisal System.
The Residual Value Appraisal System is described in detail in Alaska Region amendments to
FSH 2409.22.
In the NEAT_R program, market conditions are analyzed for a period spanning 12 quarters (3
years).
4. Standards for Stand Exam Data at Gate 2. Site specific stand exam data is used to
generate volume estimates at Gate 2. The standards for using the site specific stand exam data:
a. In addition to the requirements in the Tongass National Forest supplement to FSH
2409.26d, the sale planner and silviculturist must ensure that there are a sufficient
number of stand exam plots in each Volstrata to provide a statistically reasonable
volume estimate.
b. Note that if units or settings are dropped during the planning process, the stand
exam plots associated with the units or settings must be removed from the stand exam
plot pool.
5. Interpretation of Analysis Results. The output of the NEAT_R analysis is the indicated
stumpage value under current market conditions. Additional information is provided showing
the indicated bid value under each of the 12 quarters of the analysis period.
R10 SUPPLEMENT 2409.18-2006-5
EFFECTIVE DATE: 10/13/2006
DURATION: This supplement is effective until superseded or removed.
2409.18_10
Page 6 of 12
FSH 2409.18 – SALE PREPARATION HANDBOOK
CHAPTER 10 – SALE PROGRAM DEVELOPMENT – GATE SYSTEM
6. Determination of Economic Viability of Alternatives. An alternative is judged to be
viable when the following criteria are met:
a. The indicated stumpage value under current market conditions is higher then the
base rates for the alternative, and
b. There are enough quarters in the analysis period with above base rate values to
allow a prudent operator sufficient time to construct roads and harvest timber. This
time estimate should take in to consideration the normal operating season and timing
requirements.
13.2 – Scope of Analysis
NEAT_R is designed to calculate the indicated stumpage value for timber on a setting and
project as a whole basis. The inputs to NEAT_R include the acres to be harvested by Volstrata
(H, M, L) by logging system and prescription for each setting, estimates of road construction
costs, haul times, and tow distance. All volume, timber pond log value, and harvest cost
information is calculated on a per acre basis, and expanded to the setting level.
The timber volume is computed on a per acre basis for each setting based upon how many acres
of each Volstrata is in the setting. The volume is determined by adjusting the stand exam
estimates of gross volume by the district specific woods defect on a species and diameter class
basis. Value is determined by applying the pond log value for each species and diameter class,
by district, based on historic cruise data set.
13.3 – Analysis Schedule
Data sources for NEAT_R include, corporate GIS covers, stand exam data and cruise data. The
use of corporate datasets allows the NEAT_R outputs to be reproducible and defensible.
Specific instructions on preparation of data for NEAT_R analysis is included in the NEAT_R
Users Guide, which is posted on the R-10 Forest Management website.
13.4 – Displays and Documentation
1. Logging and Transportation Systems Information. The Logging Systems
Transportation Analysis GIS covers will be the source for logging systems, prescription, and
roads input to the NEAT program. The required fields for each GIS cover are described in 13.4 Exhibits 01 and 02. Small projects that include only a few proposed harvest units can run the
NEAT_R model on only those units, rather than developing a full LSTA for the entire area.
2. Stand Examination Plots Data. Use 30 nearest historic stand exam per Volstrata
during Gate 1 analysis. Use project specific stand exam data if available for all Gate 2 analysis.
Stand exam plot data must be re-aggregated into High, Medium, and Low strata, based upon plot
location as determined by the 1997 Volstrata layer. Remove all cull trees (tree classes 5, 7, and
R10 SUPPLEMENT 2409.18-2006-5
EFFECTIVE DATE: 10/13/2006
DURATION: This supplement is effective until superseded or removed.
2409.18_10
Page 7 of 12
FSH 2409.18 – SALE PREPARATION HANDBOOK
CHAPTER 10 – SALE PROGRAM DEVELOPMENT – GATE SYSTEM
9) from data set prior to re-aggregation. Reagg outputs are by species, and 2 inch diameter
classes – ranging from 9.0 inches to 100 inches. Reagg reports 16 and 17 are required inputs for
NEAT_R.
3. Timber Value Data. Timber value is estimated using a database of historic timber sale
cruises. The database outputs are the average pond log value for each species and diameter class,
by district.
4. Appraisal Variables. Variables used for calculating logging and transportation costs
are generated from the historic cruise database. These variables are:
a. Average Number of Logs per Tree by Species, Diameter Class, and District. This
data is used to calculate the average piece size – gross board feet.
b. Average Woods Defect. This variable is used to adjust the standing gross volume,
and to calculate the scaling defect.
5. GIS Cover Description.
a. Logging System Transportation Analysis Cover (LSTA_SET). This GIS polygon
cover can be created from digitizing a hand drawn logging plan, or through updating
an existing LSTA. The Tongass-wide LSTA cover should be consulted as a starting
point. The information in the cover will be on a setting basis. During Gate 1
analysis, unit numbers are not necessary and may be added later. Coordination with
silviculture during the assignment of unit numbers will aid in using the same unit
number for the FACTs (Forest Activity Tracking System) database. Individual
harvest units often have more then one setting – all the area accessed by a single
landing. Calculate the Average Yarding Distance (Ayd), Round Trip Time (Rtt) for
each setting in Gate 1 to allow flexible prescription and logging systems changes
during Gate 2. The following fields and coding found in 13.4 – Exhibit01 are
required:
R10 SUPPLEMENT 2409.18-2006-5
EFFECTIVE DATE: 10/13/2006
DURATION: This supplement is effective until superseded or removed.
2409.18_10
Page 8 of 12
FSH 2409.18 – SALE PREPARATION HANDBOOK
CHAPTER 10 – SALE PROGRAM DEVELOPMENT – GATE SYSTEM
13.4 - Exhibit 01: LSTA Cover Description
Field Name
Project
Type
Text
Width
16
Attributes
Alphanumeric
District
Unit
Text
Text
16
16
Alphanumeric
Alphanumeric
Setting
Landing
Text
Text
16
16
Alphanumeric
Alphanumeric
Acres
Ayd
Number
Number
16 - 2 decimal
16 - 0 decimal
Number
Number
Rtt
Number
16 - 2 decimal
Number
Haul_Miles
Number
16 - 2 decimal
Number
Description
Project Name (NEPA)
From TIM
District Name
Unique
Carry the same unit
number from NEPA to
implementation
Unique
Unique
Recommended to be the
same as the setting
Calculated
Avg Yarding Distance
User Calculated
Only required for
settings using Long
Span Cable system SLC
Round Trip Time
Truck haul no delay
Calculated – Network
Analysis
One way haul miles
from landing to
LTF/Mill.
Calculated – Network
Analysis
R10 SUPPLEMENT 2409.18-2006-5
EFFECTIVE DATE: 10/13/2006
DURATION: This supplement is effective until superseded or removed.
2409.18_10
Page 9 of 12
FSH 2409.18 – SALE PREPARATION HANDBOOK
CHAPTER 10 – SALE PROGRAM DEVELOPMENT – GATE SYSTEM
13.4 - Exhibit 01: LSTA Cover Description--Continued
HE_Elev
HE_Horiz
AltX_sys
Number
Number
Text
16 - 0 decimal
16 - 0 decimal
16
(Logging
System for each
setting by
Alternative)
AltX_rx
(Prescription
for each setting
by Alternative)
Number
Number
SSC
SSP
SHC
SHP
HE
SLC
Text
16
NONE
CC
CCR40
CCR50
CCR85
GS25
GS33
STS
NONE
Elevation change
between centroid of unit
and landing. If
downhill, make a
negative value.
Only required for
settings with Helicopter
Horizontal distance
between centroid of unit
and landing.
Only required for
settings with Helicopter
Shortspan Skyline
Clearcut
Shortspan Skyline
Partial Cut)
Shovel Clearcut
Shovel Partial Cut
Helicopter
Longspan Skyline
Clearcut
No Logging System
Clear Cut
Clear Cut with Reserves
40% harvest
Clear Cut with Reserves
50% harvest
Clear Cut with Reserves
85% harvest
Group Selection
25% harvest
Group Selection
33% Harvest
Single Tree Selection
(Partial Cut)
No Prescription
R10 SUPPLEMENT 2409.18-2006-5
EFFECTIVE DATE: 10/13/2006
DURATION: This supplement is effective until superseded or removed.
2409.18_10
Page 10 of 12
FSH 2409.18 – SALE PREPARATION HANDBOOK
CHAPTER 10 – SALE PROGRAM DEVELOPMENT – GATE SYSTEM
b. Transportation System (LSTA_RDS). This line coverage is created by digitizing
proposed temporary and system roads into the existing transportation coverage for the
planning area. The cover is used during Network Analysis to calculate the haul miles
and round trip time for each setting. The following fields and coding in 13.4 –
Exhibit 02 are required for each road segment:
13.4 - Exhibit 02: LSTA Transportation Cover Description
Field Name
Class
Type
Text
16
Width
Const
Text
16
Miles
Number
16 - 2 decimal
Attributes
T
L
C
A
H
E
R
C
Number
Cost_per_Mile
Number
16 - 0 decimal
Number
Road_Cost
Number
16 - 0 decimal
Number
Ave_Speed
Number
16 - 0 decimal
Number
Hours
Number
16 - 3 decimal
Number
AltX
Boolean
True
False
Description
Temporary
Local
Collector
Arterial
Highway
Existing
Reconstruction
New Construction
Calculated miles per
segment
Engineers estimate for
construction,
reconstruction or prehaul maintenance
Calculated cost per
segment
(Cost_per_mile*Miles)
Estimated average truck
speed by road class
Round trip travel time
without delay–
calculated.
(2*(Miles/Ave_Speed))
Whether this road is in
an alternative.
c. Additional LSTA Inputs.
(1) Round trip tow miles: Refer to Alaska Region amendments to FSH 2409.22
(2) Haul delay time: Refer to Alaska Region amendments to FSH 2409.22.
R10 SUPPLEMENT 2409.18-2006-5
EFFECTIVE DATE: 10/13/2006
DURATION: This supplement is effective until superseded or removed.
2409.18_10
Page 11 of 12
FSH 2409.18 – SALE PREPARATION HANDBOOK
CHAPTER 10 – SALE PROGRAM DEVELOPMENT – GATE SYSTEM
(3) Single tree selection prescriptions: Setting specific partial cut prescriptions.
6. Maintenance of NEAT_R Program. Regional Office Forest Management staff will be
responsible for maintaining and updating both the NEAT_R and the Historic Cruise Databases.
Specific instructions on how to maintain the databases can be found in the document NEAT_R
Administrators Guide. The periodic updates to NEAT_R are displayed in 13.4 – Exhibit03. The
updates will be posted on the R10 Forest Management website.
13.4 - Exhibit 03: Periodic Updates to NEAT_R
Update Item
New Cruise Data
Database
Historic Cruise
Database
Quarterly Selling
Values and Fuel
Cost Adjustments
Historic Cruise
Database
Base Year
Manufacturing
Costs
Historic Cruise
Database
Base Year and
Quarter Dates
Historic Cruise
Database
Base Year Dates
Historic Cruise
Database
Base Year Selling
Values
Historic Cruise
Database
Cruising Defect
and Utility
Constants
Historic Cruise
Database
Value and Cost
Historic Cruise
Distribution Ratios Database
Table Name
All_Log_Data
Frequency
Annually.
Before the start
of the calendar
year.
Qtrly_SV_Update_Factors
Quarterly.
When valuation
forester releases
updates.
BaseYear_MfgCosts
Annually.
When base year
appraisal data
released for use.
Base_Year_and_Qtr_Dates
Annually.
Beginning of
calendar year
Base_Year_Dates
Annually.
Beginning of
calendar year
Base_Year_SellingValues
Annually.
When base year
appraisal data
released for use.
Scaling_Defect_and_Percent_Utility As needed.
_Recoverable_By_District
When new data
becomes
available
VDR_CDR
As needed.
When new data
becomes
available.
R10 SUPPLEMENT 2409.18-2006-5
EFFECTIVE DATE: 10/13/2006
DURATION: This supplement is effective until superseded or removed.
2409.18_10
Page 12 of 12
FSH 2409.18 – SALE PREPARATION HANDBOOK
CHAPTER 10 – SALE PROGRAM DEVELOPMENT – GATE SYSTEM
13.4 - Exhibit 03: Periodic Updates to NEAT_R--Continued
Quarterly Selling
Value Updates
Minimum Rates
by Species
Historic Cruise
Database
NEAT_R
Qtrly_SV_Update_Factors
Quarterly.
Base Rates
Fuel Cost
Adjustment
Factors
Percentage
Recoverable
Product and
Breakage Factors
Pieces per Tree
Coefficients
Pond Log Value
Coefficients
Jobs, Income, and
Project Cost Data
NEAT_R
Fuel_Cost_Adjustment_Factor
NEAT_R
Hidden_Defect_and_Utility_Const
NEAT_R
Pieces Per Tree Coefficients
As needed.
When new data
becomes
available.
Quarterly.
When appraisal
bulletin released.
As needed.
When new data
becomes
available.
Quarterly.
NEAT_R
Pond Log Value Coefficients
Quarterly.
NEAT_R
Social_Economic_Inputs
Woods Defect by
Species, Diameter
Class and District
Logging Cost
Algorithms
NEAT_R
Woods Defect Coefficients
As needed.
When new data
becomes
available.
Quarterly.
NEAT_R
Query - Costs and Values by Setting
and Appraisal YearQTR
As needed.
When new data
becomes
available.