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FOREST SERVICE MANUAL
DENVER, CO
TITLE 2700 - SPECIAL USES MANAGEMENT
R2 Supplement No. 2700-94-1
Effective May 27, 1994
POSTING NOTICE. Supplements to this title are numbered consecutively. Post by
document name. Remove entire document and replace with this supplement.
Retain this transmittal as the first page of this document. The last supplement to
this Title was Supplement 2700-93-12 to Chap.10.
Document Name
2713-2714
Superseded New
(Number of Pages)
3
3
Digest:
2713.32 - Adds clarification of use of Forest Service Certificate of Insurance
(Exhibit 01, 2713.32) and deletes sections that are no longer valid relating to
insurance coverage for various recreation events and special events.
ELIZABETH ESTILL
Regional Forester
R2 SUPPLEMENT 2700-94-1
EFFECTIVE 5/27/94
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2713.32 - Liability and Insurance Coverage. Where insurance is required, the
permittee shall have commercial general liability coverage, Coverage "A", Bodily
Injury and Property Damage Liability in the minimum amounts of $300,000 per
occurrence and/or General Aggregate Limit.
Forest Supervisors may require higher coverage when deemed necessary.
Region 2 participates in the National Master Policy Review and Approval program
currently administered by Region 1 and Region 5. Subsequently, Authorized
Officers may accept R#'s for the current calendar year as long as the listed coverage
matches the authorized use and the Certificate of Insurance (normally an Accord
Form) issued by the Insurance Company includes:
1. Regional ID number (may be R2, R5, or R1)
2. Producer (issuing insurance agency)
3. Company(s) providing the coverage
4. The insured; (this name must be the same as the Forest Service permittee)
5. Type of insurance
6. Effective dates
7. Liability limits (amount of coverage)
8. Description of operations/locations/restrictions/special items as necessary;
and
9. Certificate holder (Forest Service office(s) to which cancellation notice(s) will
be sent.
Participation in the above mentioned program or other valid review of a specific
policy allows authorized officers to accept insurance company certificates of
insurance as proof of adequate coverage for special use permit administration
purposes. In these instances, DO NOT REQUIRE either permittees or their
insurance agents/brokers/companies to sign the Forest Service Certificate (Exhibit
1, 2713.32). Use of this certificate is only appropriate and necessary in extremely
rare cases where a permittee or insurance company might refuse to provide a copy
of a policy for review or a permittee has waited too long to accomplish proper review
of a policy prior to beginning operation or an event and the insurance
agent/company is willing to sign the Forest Service Certificate. Exhibit 1 certificate
is only to be used as an emergency measure when normal insurance operations have
failed to yield desirable results. Most agents or companies refuse to sign this
document as they have no knowledge of the specific permit requirements they might
bind themselves to.
2713.34 - Performance Bonds. A bond will usually be required in special-use
permits or easement stipulations when the use is of such a nature that National
Forest lands may require restoration in the event construction is not completed
R2 SUPPLEMENT 2700-94-1
EFFECTIVE 5/27/94
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and/or the permit is abandoned or revoked. A bond should not be required when
there is little probability that site restoration and cleanup will be needed. Likewise,
bonds should not be required of Federal Government agencies, and need not be
required of permittees with assured financial ability and tenure, such as a public
utility.
Normally bonds are only for restorative measures. When deemed administratively
desirable, bonds may be required for specific phases of construction, periods of
maintenance or specific jobs. In each case the bond clause must clearly state the
exact items bonded. The bond clause used for short-lived permits such as borrow
pits, construction camps, etc., may require compliance with all terms of the permit.
In continuing permits, a bond should be required only for that period of time when
there is a likelihood the use may be abandoned. This will usually coincide with
construction of the facility or completion of the first major phase of construction.
For example, the initial construction phase of a winter sports area should be
covered by bond. Bond would not usually be necessary for subsequent development
phases after initial construction is accepted and the area is operating.
As a general rule, bonds should be in the amount of a liberal estimate of the cost of
cleanup and restoration of the site, with a minimum of $100. No permit
requirement supported by a bond should be revised without the prior consent of
surety.
Bonds for special uses will be checked annually in accordance with FSM 6506.51 to
determine whether the surety is currently acceptable. If not, a new acceptable
surety will be required. When a new bond is furnished by the permittee, the surety
on the superseded bond may be notified that a new bond has been furnished. The
surety on superseded bonds is secondarily liable and no one has authority to release
them from this liability.
When the conditions for which the bond was requested have been satisfied, the
permittee shall be notified so he may notify his surety. Letter of notification should
not contain any statement releasing the permittee or surety from liability. (FSM
6505.48.)
2713.5 - Acceptance by Permittee. All permits will be signed by the permittee or his
authorized representative prior to signature by the issuing officer. In many
instances, signature by the issuing officer without permittee acceptance through
signing can be construed as issuance of a document by the Forest Service.