FOREST SERVICE MANUAL PACIFIC SOUTHWEST REGION (R5) VALLEJO, CALIFORNIA FSM 2400 TIMBER MANAGEMENT CHAPTER 2430 - COMMERCIAL TIMBER SALES Supplement No.: 2400-2015-1 Effective Date: 3/9/2015 Duration: This supplement expires 5 years from the effective date unless superseded or removed earlier. Approved: Randy Moore, Regional Forester Date Approved: 2/23/2015 Posting Instructions: Manual supplements are numbered consecutively by Manual number and calendar year. Post by document; remove the entire document and replace it with this supplement. Retain this transmittal as the first page(s) of this document. Last Change: 2400-2014-1 to Chapter 2440 New Document: 2430 Superseded Document(s): 2400-2010-4, 12/21/2010 Digest: 2430, 2431, 2435, and 2439. Makes minor edits, corrections in spelling, punctuation, and style practices throughout the chapter. Substantive changes are as follows: 2431.31b. Changes the Minimum Rates to $5.00 per CCF for High Value Species, $3.00 per species for Medium Value Species, and $1.00 per CCF for Low Value Species. Replaces the term quadratic mean DBH of less than 14 inches with mean DBH of less than 14 inches for Low Value Species in 2431.31b. 2431b. Changes Region 5 Minimum Rates for Convertible Timber Products for Post and mine props to $0.50 each ($20.00 per CCF) and Poles and Round Rails to $0.30 Each. FSM 2400 TIMBER MANAGEMENT Chapter 2430 - COMMERCIAL TIMBER SALES Supplement No.:2400-2015-1 - Effective Date: 3/9/2015 2430.3 - Policy 1. Use guidance found in FSH 2409.18 - Timber Sale Preparation Handbook, Chapter 50, to determine the proper contract form to be used for a timber sale. 2430.4 - Responsibility 2430.43- Forest Supervisor 1. Forest Supervisors shall submit proposed contractual provisions (Non-recurring C Provisions) to the Director for Ecosystem Management for review. The proposal must include: a. The draft language proposed. b. A description of the unique situation that requires the special provision. c. A discussion of other options considered, the reason(s) for favoring the proposed C Provision, and the adverse consequences which would occur if only approved National and Regional provisions were included in the contract. d. The name of the forest representative who reviewed the proposal, ensuring that the requirements in items 1 through 3 are satisfied, and the name of the person to consult for further discussion regarding the proposal. 2431 - MANAGEMENT OF TIMBER SALE PROGRAM 2431.21 - Regional Timber Sale Schedule 1. Forests shall strive to offer at least 25 percent of their programmed volume in each of the first three quarters of each fiscal year. Forest Supervisors shall submit a Five Year Timber Sale Program to the Regional Forester by April 1, annually (Report R52400-B). 2431.3 - Rates 2431.31a - Standard Rates 1. Forest Supervisors may establish standard rates for sales that are less than 200 CCF or for other miscellaneous forest products. The standard rates for sales less than 200 CCF shall be established using a Transaction Evidence Appraisal process. Standard rates may be no lower than minimum rates established in FSM 2431.31b. Standard rates for miscellaneous forest products shall be established using the R5 Special Forest Product Appraisal. This appraisal can be found on the R5 regional Ecosystem Management website. Forest Supervisors shall re-establish standard rates whenever there are significant changes in the market or in appraised rates for a specific product. Rates are usually established for the forest as a whole. However, where significant variations in conditions and markets exist, forests may establish rates on a unit or zone basis. Consultation and coordination between adjoining forests is encouraged in order to standardize rates and to the extent practicable coordinate with Bureau of Land Management. Page 2 FSM 2400 TIMBER MANAGEMENT Chapter 2430 - COMMERCIAL TIMBER SALES Supplement No.:2400-2015-1 - Effective Date: 3/9/2015 2431.31b - Minimum Rates 1. Minimum rates are the lowest rate for which Region 5 will sell forest products, except to provide for the removal of insect-infested, diseased, dead, or distressed timber in accordance with contract provisions specifically provided for catastrophically affected timber. Forest products are to be appraised using the Regional Transaction Evidence Appraisal program or the R5 Special Forest Products Appraisal Program and the selling price set at the higher of the appraised value or the base rate. Any associated charges for the forest product is to be in addition to the minimum charge. a. Commercial Timber Sales. Minimum rates per CCF for sawlog product sales. Rates which appear below are the minimum for timber sales and stewardship projects composed primarily of sawtimber. Base rates on timber sales and stewardship timber projects shall be either those listed below or essential regeneration costs, whichever is greater. The minimum rate for excepted products from insect-infested, diseased, dead or distressed timber, composed primarily of merchantable sawtimber, shall not be less than $0.50 per CCF. The minimum rate for sales of any coniferous species, which is to be cut for silvicultural purposes, and does not meet the minimum utilization standard for sawtimber or non-sawtimber due to size, is $0.25 per CCF without regeneration costs, or $0.25 per CCF plus regeneration costs, whichever is greater. (1) Sawtimber rates for all forests (except the four southern forests) are: $5.00 per CCF (hundred cubic feet) equivalent to $10.00 per MBF (thousand board feet) for high value species; $3.00 per CCF ($6.00 per MBF) for medium value species; and, $1.00 per CCF ($2.00 per MBF) for low value species. Sawtimber is bole material from trees with a DBH of 10 inches or greater as listed in 2431.31b - Exhibit 01. Use is mandatory unless minimum rates are otherwise prescribed in Washington Office directives. (See Exhibit 01). (2) Sawtimber rates for the four southern forests are: $1.00 per CCF ($2.00 per MBF) for all commercial species; and, $0.25 per CCF ($0.50 per MBF) for all noncommercial species. Minimum rates for convertible timber products are listed in 2431.31b - Exhibit 02. Use is mandatory unless minimum rates are otherwise prescribed in Washington Office directives. (See Exhibit 02). 2. Convertible Timber Products. Minimum rate for sales of non-sawtimber and/or woody biomass products is $0.25 per CCF ($0.10 per Ton or $0.50 per MBF). Nonsawtimber is defined as trees or portions of trees that do not meet sawtimber specifications. Woody biomass includes trees and woody plants, including limbs, tops, needles, leaves, and other woody parts, grown in a forest, woodland, or rangeland environment that are the by-products of forest management. Minimum rates for convertible timber products are listed in 2431.31b – Exhibit 03. Use is mandatory unless minimum rates are otherwise prescribed in Washington Office directives. (See Exhibit 03). A unit of measure is shown above for each product; however, a volume in a different unit of measure may be needed for reporting. The volume for each product is shown in hundred cubic feet CCF. If it is necessary to know thousands of board feet MBF, a constant conversion factor of .5000 MBF: CCF will be used for all convertible Page 3 FSM 2400 TIMBER MANAGEMENT Chapter 2430 - COMMERCIAL TIMBER SALES Supplement No.:2400-2015-1 - Effective Date: 3/9/2015 products. This is not exact for each product but will provide an acceptable number or MBF reporting. Example: Permit is for 100 poles. 0.030 CCF per pole CCF volume = 100 x .030 = 3.0 CCF MBF volume = 3.0 CCF x .5000 = 1.50 MBF Material of sawtimber size and quality sold in other forms should be sold at equivalent sawtimber rates. A standard cord is a pile of stacked wood measuring 8 feet long, 4 feet wide, and 4 feet high. Solid wood content of a cord can average 75 cubic feet depending on tree species and degree of knots and crookedness. Christmas Trees. The minimum charge for any commercial sale is $20.00. The minimum charge for a personal use Christmas tree is $10.00. The amount of $10.00 must be distributed to NFF. If there are associated charges (road maintenance and/or slash disposal) related to the sale of this product, these charges are in addition to the $10.00 minimum charge. Under a vender agreement, the forests are not to sell the permits to the vender for less than $10 per permit. The minimum charge of $10 is also to be distributed to NFF. Some gathering of forest products such as the cutting of a Christmas tree can be considered a recreational experience and thus part of the money collected could be used to pay for some recreational activities (as allowed in the Federal Lands Recreation Enhancement Act (REA) of December 8, 2004). Only fees collected in excess of the minimum charge can be used by recreation, as for Christmas trees, $10.00 minimum charge must be distributed to NFF. Region 5 minimum rates for Christmas trees are listed in Exhibit 04. Non-Convertible Non-Timber Products. All special forest products are a minimum charge of $20.00 per permit for personal use and commercial use. Commercial sales should be at fair market value for the product. Products included in timber sale or stewardship timber contracts under Timber Subject to Agreement (2400-3(S&T), 6(T), 13(T)). For all forests, Region 5 minimum rates for products being included under Timber Subject to Agreement are listed below and use of these rates are mandatory. Do not use Timber Subject to Agreement in a stewardship IRSC. Region 5 minimum rates for products being included under Timber Subject to Agreement are listed in Exhibit 05. Page 4 FSM 2400 TIMBER MANAGEMENT Chapter 2430 - COMMERCIAL TIMBER SALES Supplement No.:2400-2015-1 - Effective Date: 3/9/2015 2431.31b - Exhibit 01 - All Forests (except the four southern forest) species value classification for sawtimber High Value Species, $5 per CCF Medium Value Species, $3 per CCF Ponderosa and Jeffrey Pine Douglas Fir Sugar and Western White Pine Incense Cedar Coastal Redwood Sitka Spruce Port-Orford Cedar White and Red Fir Western Red Cedar Giant Sequoia - Low Value Species, $1 per CCF All other species including hardwoods and conifer species with a mean DBH of less than 14 inches - 2431.31b - Exhibit 02 - Southern Forests species value classification for sawtimber Commercial Species, $1 per CCF Ponderosa and Jeffrey Pine Sugar and Western White Pine Douglas Fir White and Red Fir Incense Cedar Western Red Cedar Giant Sequoia Coastal Redwood Lodgepole Pine Non Commercial Species, $0.25 per CCF All others including Coulter Pine and Hardwoods - 2431.31b - Exhibit 03 - Minimum rates for convertible timber products Forest Products Telephone poles, piling, derrick poles, and house logs (actual size) Cull logs Post and mine props (average piece 7 inches small end and 8 feet long = 0.025 CCF) Poles and round rails (average piece 5 inches small end and 15 feet long=0.03 CCF) Rails, Cedar, split (average piece 5 inches and 16 feet long = 0.028 CCF) Rails, Other Species, split (average piece 5 inches and 16 feet long = 0.028 CCF) Shingle and shake bolts (split) Shake board (average piece 1 inch by 6 inches by 5 feet = 0.002 CCF) Firewood (fuelwood) Biomass. When biomass is sold together with sawtimber in the same timber sale using dual rate pricing, sell the biomass at fixed rates. Do not assign bid premium to this material. Page 5 Minimum Rate $PUOM Sawtimber rates for commercial timber sales $0.50 $20.00 UOM $0.30 $1.00 $0.25 $20.00 $0.20 $5.00 $0.25 Each Each Each Cord Each Cord CCF CCF CCF FSM 2400 TIMBER MANAGEMENT Chapter 2430 - COMMERCIAL TIMBER SALES Supplement No.:2400-2015-1 - Effective Date: 3/9/2015 2431.31b - Exhibit 04 - Minimum rates for Christmas trees Forest Product Personal Use - All Species Commercial - Red Fir Commercial - White Fir Commercial - All other species Minimum Rate, $ $10.00 $5.00 $4.00 $3.00 Unit of Measure Each Each Each Each 2431.31b - Exhibit 05 - Minimum rates for products being included under Timber Subject to Agreement Product Fire-damaged chippable cull logs Cull logs - all species Firewood (fuelwood) Biomass - All species Minimum Rate, $ $0.25 $0.50 $5.00 $0.25 Page 6 Unit of Measure CCF CCF Cord CCF FSM 2400 TIMBER MANAGEMENT Chapter 2430 - COMMERCIAL TIMBER SALES Supplement No.:2400-2015-1 - Effective Date: 3/9/2015 2431.32 - Appraised Rates 1. Sales sold by the ton. Generally, timber sales using tons for the unit of measure should be sold with one rate for sawlog products and a separate rate for biomass products (dual rate pricing). Single rate pricing (using one rate for all sawtimber and biomass products) may be used in projects and sales where the project or sale quadratic mean diameter for sawtimber is less than 14 inches. If single rate pricing is used, any sawtimber added to the project or sale after the bid, shall be charged at sawtimber stumpage rates. Use of single rate pricing with any other project or sale can only be used with Regional Office approval. 2. Deficit sales. For sales that appraise at a deficit value, the forest should get an expression of interest from industry before advertising the sale. Having industry show their interest for a deficit sale before it is put up would limit the number of nobid sales within the region. 2431.34 - Stumpage Rate Adjustment 1. Forest Service timber sale contracts (FS-2400-6(T) and FS-2400-13(T) that exceed 1 year in contract length in the western United States, shall include provisions for quarterly stumpage rate adjustments, except: a. Non-sawtimber sales or sales sold using a weight unit of measure. b. Species for which flat rate pricing is specifically authorized by the Regional Forester are: incense cedar, port-orford cedar, and redwood. 2431.4 - Bidding 2431.41 - Bidding Method 1. Use sealed bidding methods for all competitive sales. 2431.6 - Disposal of Firewood 1. Forests and Districts are encouraged to develop firewood programs to facilitate firewood gathering by the public and commercial firewood businesses. A maximum of 12 cords may be sold to an individual for personal use during a firewood season. A charge will be made for all firewood material except where large supplies of material exist with little or no demand. Use free use only where the management objectives for an area cannot be accomplished by charging for firewood or where it serves the best interests of the Government (FSM 2462). 2. Contractors, permittees, timber sale purchasers, their employees and subcontractors must adhere to the same procedures and sources of firewood as does the general public. A sample letter found in 2431.6 - Exhibit 01 may be used to remind cooperators of personal-use firewood restrictions. 3. Logging and road right-of-way slash, as well as other firewood sources, may be utilized within timber sale subdivisions or payment units that have been accepted as complete. Page 7 FSM 2400 TIMBER MANAGEMENT Chapter 2430 - COMMERCIAL TIMBER SALES Supplement No.:2400-2015-1 - Effective Date: 3/9/2015 4. Firewood sold or given away for personal use shall use permit forms FS-2400-1 Forest Product Removal Permit and Cash Receipt, or FS-2400-8 Forest Product Free Use Permit, respectively. The office issuing the permit should provide maps and stipulations for the area(s) where the permittees plan to cut. The Districts/Offices that commonly issue permits for cutting in other areas should initiate the coordination necessary with other units. 5. The permit must be displayed on the dashboard of the permittee's vehicle. 6. Hunters, campers, outfitters, and other forest users will not need permits if the wood they gather is used on National Forest lands. 7. The minimum charge for personal use firewood is $5.00 per cord, with a minimum of $20.00 per permit. The amount of $5.00 per cord must be distributed to the stumpage distribution accounts of National Forest Fund (NFF) and/or Salvage Sale Fund (SSF) if applicable, and there must be an approved plan to support the SSF collections. None of the stumpage is to go into Knutson-Vandenberg (KV) fund as per regional salvage sale fund policy. If there are associated charges (road maintenance and/or slash disposal) related to the sale of this product, these charges are in addition to the $20.00 minimum permit charge. A maximum of 12 cords may be sold to an individual during a firewood season. The minimum distribution of $0.25 per cord must be distributed to NFF and the remaining funds may be distributed to SSF when appropriate. 8. SSF, slash disposal and road maintenance plans must be prepared in advance to determine the amount and kind of work associated with the firewood program. The plans must cover the area and roads where firewood harvest occurs, generally a district or drainage (FSM 5150 Brush Disposal). (See Exhibit 01). Page 8 FSM 2400 TIMBER MANAGEMENT Chapter 2430 - COMMERCIAL TIMBER SALES Supplement No.:2400-2015-1 - Effective Date: 3/9/2015 2431.6 - Exhibit 01 - Sample Letter Dear (Name of Purchaser, Contractor, or Permittee), We request your cooperation in improving relations with the general public users of the National Forest lands. The Pacific Southwest Region has implemented a personal-use firewood policy which requires the use of a permit. In most areas, firewood gathering will be permitted on a charge basis, although firewood gathering may be free in some specially designated areas. You, your employees, and subcontractors must adhere to the same procedures and sources for firewood as does the general public. Removal of personal-use firewood from your Timber Sale Area(s), Contract or Permit area will only be permitted to the same degree and with the same restrictions as the public is allowed. Removal of saw log or non-sawlog material in any lengths must be provided for by specific provisions in your contract or permit. Your cooperation and courtesy with the general public, owners of the National Forests, who may visit your contract or permit areas will be greatly appreciated and can help limit future restrictions. Sincerely, (Contracting Officer) Page 9 FSM 2400 TIMBER MANAGEMENT Chapter 2430 - COMMERCIAL TIMBER SALES Supplement No.:2400-2015-1 - Effective Date: 3/9/2015 2431.7 - Timber Sale Program Announcement 1. Each forest shall prepare a firm (6-month) and tentative (12 month) timber sale program announcement. 2. Sales and projects listed in the forest’s Timber Sale Program Announcement should include the following information: a. Sale/project name b. Ranger District c. General location of the sale/project d. Volume (by product and total) e. Miles of road construction and reconstruction f. Estimated bid date g. Remarks (special items to note about the sale/project). 2432.47 - Advertisements 1. For sales planned for formal advertising in the winter or early spring months when on-theground conditions might make assessment of the sale difficult or impossible, use preliminary advertisements. 2432.52 - Bid Monitoring 1. Forest Supervisors shall prepare bid monitoring plans and submit an annual report of the results of bid monitoring to the Director, Ecosystem Management, by November 1 of each year (Report FS-2400-AC). Submit revisions to the bid monitoring plan to the Director, Ecosystem Management. 2435 - SALVAGE SALE PROGRAM 2435.03 - Policy. 1. Collection Guidelines: a. All Sales under contract with a measurable component of Salvage Definition trees will have an SSF Plan. - Salvage includes dead and dying because of injurious agents other than competition and safety hazard trees (safety hazard trees may be green). b. Permissible Additional Collections will be utilized: (1) Standard 50 % Additional Collections will be used (SSF Plan, FS-2400-51, part 9.a.). (2) A Surcharge will be collected to contribute to the 150% goal. (FS-2400-51, part 9.b.). Reference R5 Salvage Sale Fund Balance Analysis Report, Part 2, Line14). This amount will be reviewed annually during the SSF Balance Reporting process (3) Loaned funds Repayment Collections will also be collected when Forests have borrowed Salvage funds from other Forests (FS-2400-51, part 7.c.) P a g e 10 FSM 2400 TIMBER MANAGEMENT Chapter 2430 - COMMERCIAL TIMBER SALES Supplement No.:2400-2015-1 - Effective Date: 3/9/2015 c. Personal Use Fuelwood Permits will have SSF Plan(s). 2. Priorities for Collection. a. Salvage Sales. (1) Collect total cost of the sale (FS 2400-51, Line 8a). (2) Collect a combination of funds for (listed by priority): (a) 50% Additional Collection; (b) Regional SSF surcharge; (c) reforestation K-V; (d) and/or rehabilitation/ restoration related KV. (3) Collect K-V, Other. b. Green sales with Salvage Component. (1) Collect Required K-V (essential reforestation) and the required $0.50/MBF ($0.25/CCF) NFF. (FSH 2409.19 Chapter 20 Section 21.1) (2) For sales under contract: (a) If NFF exists, collect the required $0.50/MBF to NFF for the Green component; collect SSF for Salvage component, and collect a combination of funds for (listed by priority): (1) K-V for essential reforestation due to green timber harvest, and (2) Regional SSF surcharge for the salvage component. (b) If NFF does not exist beyond the $0.50/MBF collection for the Green component, no action needed. c. For New Sales. (1) Collect SSF for the Salvage component, and collect a combination of funds for (listed by priority): (a) The required $0.50/MBF to NFF for the Green component. (b) K-V for essential reforestation. (c) Regional SSF surcharge for the salvage component. 2439 - PROGRAMS WITH SMALL BUSINESS ADMINISTRATION 2439.03 - Policy. 2. Contracting Officers are authorized to delay the award of sales for up to 180 days when qualified small business purchaser requests Government construction of specified roads and delay is necessary so prospective road contractors can adequately evaluate field conditions. 3. Contracting Officers are authorized to delay the award of sales in excess of 180 days when delay is due to conditions beyond Contracting Officer's control such as winter shutdown, fire emergency, or restricted access to the site. Delay in award of P a g e 11 FSM 2400 TIMBER MANAGEMENT Chapter 2430 - COMMERCIAL TIMBER SALES Supplement No.:2400-2015-1 - Effective Date: 3/9/2015 contracts for reasons not included in above criteria shall be submitted to the Regional Office, Director, Ecosystem Management Staff, for approval prior to advertising the sale. 4. Document any delay in the award of a sale pending the award of a public works contract for road construction in the timber sale contract folder. Include an itemized listing of the schedule of activities causing the delay in the award. P a g e 12