washington dnr timber sales program · 2020. 5. 28. · continue down the v-line for 1.5 miles to...
TRANSCRIPT
Change Log Template 10/2009
Washington DNR Timber Sales Program
The documents for Recluse Sorts timber sale have been changed as follows: Documents amended: Brief Description DATE Initials Notice of Sale: ARRF information was added under the "Timber Excise Tax" section.
02/13/18 kw
TIMBER NOTICE OF SALE
Page 1 of 2 2/13/2018
SALE NAME: RECLUSE SORTS AGREEMENT NO: 30-96063 - 30-96072 AUCTION: February 22, 2018 starting at 10:00 a.m. COUNTY: Grays Harbor Pacific Cascade Region Office, Castle Rock, WA
SALE LOCATION: Sale located approximately 14 miles west of Oakville PRODUCTS SOLD AND SALE AREA: All delivered timber described below, except for leave trees bounded by yellow "Leave
Tree Area" tags and pink flagging and individual trees marked with blue paint, and all down timber existing 5 years prior to the day of sale bounded by; white "Timber Sale Boundary" tags, reprod, and the T-3000, T-Line and V-Line roads in Unit 1; white "Timber Sale Boundary" tags, reprod, and the V-Line road in Unit 2; and white "Timber Sale Boundary" tags, reprod, and the V-Line in Unit 3 meeting the specifications described below; on parts of Sections 25, and 36 all in Township 16 North, Range 6 West, Sections 30, 31, and 32 all in Township 16 North, Range 5 West W.M., containing 102 acres, more or less.
MINIMUM BID AND ESTIMATED LOG VOLUMES: Agreement
# Sort
# Species and
Sort Specifications
Average Log
Length
Estimated Volume
Tons Per
MBF
Minimum Bid Delivered Prices
Total Appraised
Value
Bid Deposit
Mbf Tons $/mbf $/Ton 96063 1 DF 5"-11" dib 28 512 3686 7.2 $650.00 $332,800.00 $33,280.00 96064 2 DF 12"-19"
dib 28 938 5253 5.6 $675.00 $633,150.00 $63,315.00
96065 3 DF 20"+ dib 28 977 4787 4.9 $650.00 $635,050.00 $63,505.00 96066 4 DF HQB 12"+
dib 28 395 1896 4.8 $700.00 $276,500.00 $27,650.00
96067 5 WW 5"+ dib 28 141 860 6.1 $500.00 $70,500.00 $7,050.00 96068 6 RA 5"-11" dib 28 120 780 6.5 $600.00 $72,000.00 $7,200.00 96069 7 RA 12"+ dib 28 94 564 6 $800.00 $75,200.00 $7,520.00 96070 8 BM 8"+ dib 28 82 615 7.5 $400.00 $32,800.00 $3,280.00 96071 9 Conifer Pulp
2"+ dib N/A 40 520 13 $28.00 $14,560.00 $1,456.00
96072 10 Hardwood Pulp 2"+ dib
N/A 38 494 13 $28.00 $13,832.00 $1,383.20
Totals: 3337 19455 $2,156,392.00 CERTIFICATION: This sale is certified under the Sustainable Forestry Initiative® program Standard (cert
no: BV-SFIS-US09000572) BID METHOD: Sealed Bids UNIT OF MEASURE: MBF Scale/Tonnage Scale EXPIRATION DATE: July 31, 2018 ALLOCATION: Export Restricted PAYMENT SECURITY: To be determined by the State as described in Clause P-045.2 of the Purchaser’s Contract.
TIMBER NOTICE OF SALE
Page 2 of 2 2/13/2018
BIDDING PROCEDURES: A separate sealed bid and envelope must be submitted for each log sort. Prospective
Purchasers may bid on any or all log sorts. On the day of sale the Purchaser must bring their bid deposit up to 10% of their total bid price. Complete bidding procedures and auction information may be obtained from the Pacific Cascade Region Office in Castle Rock WA. Phone number (360)577-2025.
TIMBER EXCISE TAX: Purchaser must pay the forest excise taxes associated with the log sorts delivered to them.
The tax rate for this sale is 4.2 %. Taxable Stumpage = Total Delivered Value – (Harvest Cost + Estimated Haul Cost + ARRF). For more information contact the Department of Revenue, Forest Tax Section at 1-800-548-8829.
Use the following rates for estimating taxable stumpage: Harvest Cost = $0.00 per MBF for sorts 1, 2, 3, 4, 5, 6, 7 and 8 and $12.00 per Ton for sorts 9 and 10. Hauling Services Payment Rate per Ton = (Base Rate + Mileage Rate) x (Contractor's hauling bid factor) Base Rate = $2.35 per ton
Mileage Rate = (($0.16 x C miles) + ($0.11 x A miles)) x Fuel Index Factor
ARRF = $0.00 per MBF for sorts 9 and 10 and $26.75 per MBF for sorts 1, 2, 3, 4, 5, 6, 7 and 8. Note: To calculate ARRF rates per ton use the tons\mbf conversion factor in the table above.
CONFIRMATION: Each sort is subject to confirmation following auction. Sorts will not be confirmed until
at least 10 days after auction. Final contract award is contingent upon the State’s haul cost analysis. Actual haul route may vary and is subject to change at the State’s discretion.
SPECIAL REMARKS: The successful Purchaser(s) will be required to purchase logs from the sale area upon
delivery to their location specified in the bid submitted. Logs will be delivered to the Purchaser’s delivery location by the State’s contract harvester. Purchaser is responsible for weighing and scaling costs. All tonnage loads will be weighed and all mbf loads will be scaled at State approved locations. The State reserves the right to determine where logs are authorized to be scaled and weighed.
For more information regarding this log sort sale visit our web site: http://www.dnr.wa.gov/programs-and-services/product-sales-and-leasing/timber-sales/timber-auction-packets. If you have questions call Meg Wallmow at the Pacific Cascade Region Office at (360)577-2025 or Steve Teitzel at the Product Sales and Leasing Division Office in Olympia at (360)902-1741.
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Unit 163 Acres
Unit 3 14 Acres
ReprodReprod
Reprod
V-LineV-960
V-960ext.Reprod
31
3025
36
R06W
R05W
V-900
Spur-D
Spur-C
Spur-
E
Spur-F
Spur-GSp
ur-H
T-Line
T-3000
Reprod
123°21.5'W
123°21.5'W
123°22'W
123°22'W
123°22.5'W
123°22.5'W
46°50
.5'N
46°50
.5'N
46°50
'N
46°50
'N
46°49
.5'N
46°49
.5'N
T I M B E R S A L E M A PS A L E N A M E :A G R E E M E N T # :T O W N S H I P ( S ) :T R U S T ( S ) :
R E G I O N :C O U N T Y ( S ) :E L E VAT I O N R G E :
30-096062
³Prepared By:
0 1,000 2,000 3,000500 Feet
ewie490 02/01/2016 Modification Date: 11/22/2017
Sale Area" """ """ """ """ "" """ """ """ """ "" """ """ """ """ "" """ """ """ """ "" """ """ """ """ "" """ """ """ """ "" """ """ """ """ " Leave Tree Area
Riparian Mgt Zone~ ~ ~ ~ Sale Boundary ~ ~ ~¦ ¦ ¦ Leave Tree Tags
Reprod
Required Pre-Haul MaintenanceOptional Construction
\ Optional ReconstructionExisting Roads
> > Streams]% Stream Typek Stream Type Breako Leave Trees
)! ! Gate (PCP1-1)
Pacific Cascade RegionRECLUSE SORTS
T16R05W, T16R06W 155-891GRAYS HARBOR
State Forest Transfer(1), Common School and Indemnity(3), Capitol Grant(7)
All State Unless Otherwise Noted
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Unit 225 Acres
Reprod
Reprod
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Reprod
30 2931 32
Spur-ASpur-BV-900
V-Line
123°20'W
123°20'W
123°20.5'W
123°20.5'W
123°21'W
123°21'W
123°21.5'W
123°21.5'W
46°50
.5'N
46°50
.5'N
46°50
'N
46°50
'N
46°49
.5'N
46°49
.5'N
T I M B E R S A L E M A PS A L E N A M E :A G R E E M E N T # :T O W N S H I P ( S ) :T R U S T ( S ) :
R E G I O N :C O U N T Y ( S ) :E L E VAT I O N R G E :
30-096062
³Prepared By:
0 1,000 2,000 3,000500 Feet
ewie490 02/01/2016 Modification Date: 11/22/2017
Sale Area" """ """ """ """ "" """ """ """ """ "" """ """ """ """ "" """ """ """ """ "" """ """ """ """ "" """ """ """ """ "" """ """ """ """ " Leave Tree Area
Riparian Mgt Zone~ ~ ~ ~ Sale Boundary ~ ~ ~¦ ¦ ¦ Leave Tree Tags
Reprod
Required Pre-Haul MaintenanceOptional Construction
\ Optional ReconstructionExisting Roads
> > Streams]% Stream Typek Stream Type Breako Leave Trees
Pacific Cascade RegionRECLUSE SORTS
T16R05W, T16R06W 155-891GRAYS HARBOR
State Forest Transfer(1), Common School and Indemnity(3), Capitol Grant(7)
All State Unless Otherwise Noted
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1.2 mi. V- Line
0.3 mi.V-Line
0.3 mi.V-Line
0.5mi.V-3000
0.4mi. T-Line
2.8mi. T-Line Brooklyn Road
4.4mi.
State Street/South Bank Road
1.9 mi.Garrard Creek Road3.5
Garra
rd Creek Road
Brooklyn Road
T-3000
Oakville(B)
(A)
V-850TLin
e
5.4 mi V- Line
South Bank Road
V-1000
31
34
35
33
32
36
D R I V I N G M A PS A L E N A M E :A G R E E M E N T #:TO W N S H I P (S ) :TR U S T (S ) :
R E G I O N :C O U N T Y (S ) :E L E VAT I O N R G E :
RECLUSE SORTS
³Prepared By:
Pacific Cascade Region
DRIVING DIRECTIONS:From US Highway 12 (milepost 35) turn south onto State Street which becomes South Bank Road;follow for 1.9 miles over the Chehalis River bridge.Turn left on to Garrard Creek Road; (A) follow for 3.5 miles to Brooklyn Road.Turn Right on Brooklyn Road; follow for 4.4 miles to the T-Line.Turn right on the T-Line; follow for 2.8 miles to theT-Line, V-Line intersection which is Unit 1. To access Units 2 and 3;Turn Right on the V-Line for 0.3 miles to Unit 3: continue down the V-Line for 1.5 miles to Unit 2:(B) Drive 300ft and turn Right on to the V-Line.Follow the V-Line for 5.4 miles to Unit 2.
dsun490 02/01/2016 Modification Date: 12/20/2017
Timber Sale UnitsHighwaysHaul RouteOther Route
") Milepost Markers! Distance Indicator^ Town
)! ! PCP1-1 (GREEN)
30-096062T16R05W, T16R06W
GRAYS HARBOR155-891
State Forest Transfer(1), Common School and Indemnity(3), Capitol Grant(7)
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12/21/2017 1 of 16 Agreement No. 30-096063
STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES
LOG SALE AND PURCHASE CONTRACT
AGREEMENT NO. 30-096063
SALE NAME: RECLUSE SORT 1
THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:
Section G: General Terms
G-001.2 Definitions
The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.
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12/21/2017 2 of 16 Agreement No. 30-096063
Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.
G-010.2 Products Sold and Sale Area
Purchaser was the successful bidder on February 22, 2018 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the RECLUSE SORTS Timber Sale described as parts of Sections 25, and 36 all in Township 16 North, Range 6 West, Sections 30, 31, and 32 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.
G-022.2 Sorting Specifications
Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications:
Agreement No.
Sort #
Description Destination
96063 1 DF 5"-11" dib Unless otherwise specified, no blue stain is allowed in Ponderosa pine.
G-024.2 Manufacturing Standards
All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.
Agreement No.
Sort #
Scaling Rule
96063 1 WS
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12/21/2017 3 of 16 Agreement No. 30-096063
Average Log Length Preferred Log Lengths 28
"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.
a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.
b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.
c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.
d. Surface characteristics for a high quality (HQ) "B" log sort will have sound tight knots not to exceed 1½ inch in diameter. May include logs with not more than two larger knots up to 2½ inch in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third top end of the log.
G-026.2 Log Delivery Destination
Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.
G-027.2 Log Delivery Schedule and Conditions
a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.
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12/21/2017 4 of 16 Agreement No. 30-096063
b. Improperly loaded trucks - It is understood and agreed that the Purchaser
incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.
c. Log Delivery Interruptions - Purchaser may schedule times in which delivery
of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.
d. Required Acceptance of Daily Load Deliveries and Notification - If the State
is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:
1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or
2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.
e. State Notification to Purchaser - The State will notify the Purchaser when it
anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.
f. If payments are not received or, the State determines that the payment security
has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.
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12/21/2017 5 of 16 Agreement No. 30-096063
G-030.2 Contract Term and Expiration Date
Purchaser agrees to accept and pay for forest products delivered through the period ending July 31, 2018.
G-054.2 Early Contract Termination
The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.
G-056.2 Force Majeure
No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.
G-060.2 Exclusion of Warranties
The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:
a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.
b. The CONDITION of the forest products. The forest products will be
conveyed "AS IS."
c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.
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12/21/2017 6 of 16 Agreement No. 30-096063
d. Items contained in any other documents prepared for or by the State.
G-065 Regulatory Disclaimer
The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.
G-070.2 Limitation on Damage
In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.
G-112.2 Title
The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.
G-116.2 Sustainable Forestry Initiative® (SFI) Certification
Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: BV-SFIS-US09000572.
G-160.2 Agents
The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.
G-180 Modifications
Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.
G-190 Contract Complete
This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.
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G-200.2 Notice
Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s post office address, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.
G-210.2 Violation of Contract
a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.
b. The State has the right to remedy the breach in the absence of any indicated
attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.
c. If Purchaser’s violation is a result of a failure to make payment to the State
when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.
G-240.2 Dispute Resolution
The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.
a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.
b. The Region Manager will issue a written decision on Purchaser’s request
within five business days.
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c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.
d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a
conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.
G-252.2 Forest Excise Tax
Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.
G-253.2 Harvesting Cost Information
The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.
G-260 Venue
This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.
G-330.2 Contract Review
Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.
Section P: Payments and Securities
P-010 Initial Deposit
Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.
P-028.2 Payment for Forest Products Delivered
Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF $20/mbf for Utility logs (Adjusted Gross).
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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause.
P-036.2 Missorts and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet the sorting specifications in G-022.2 where species are incorrect, are scaled over 1” outside the listed diameter specifications, or ponderosa pine with blue stain are considered mis-sorts. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor 0.3 for mis-sort except for blue stain 0.4 for mis-sort related to blue stain Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code
P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting minimum log quality specifications as described in the G-024.2 clause are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract.
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However, when mis-manufactured Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-038.2 Average Log Length and Payment Reduction
If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01) Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th)
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Third party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-040.2 Weighing and Scaling Costs
Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.
P-045.2 Guarantee of Payment
Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.
P-050.2 Billing and Payment Procedure for Forest Products Delivered
The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract.
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Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.
P-080 Payment Account Refund
Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.
Section L: Log Definitions and Accountability
L-010.2 Forest Products Conveyed
Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clauses G-022.2 and G-024.2 of this contract
L-014.2 Sorts Delivered to Incorrect Destination
Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.
L-071.2 Log and Load Reporting Service
This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.
L-080 Scaling Rules
Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.
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L-110 State Approval of Log Scaling and Weighing Locations
Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or en-route to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.
Section D: Damages
D-010 Liquidated Damages
The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.
D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance
a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.
b. Unless Purchaser and the State have made a prior agreement in writing,
Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.
D-027.2 Failure to Accept Forest Products Sold
Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.
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a. When Purchaser’s refusal to accept forest products does not prevent further
harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.
b. When Purchaser’s refusal to accept forest products causes a stoppage of the
State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:
LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment
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D-030.2 Inadequate Log Accountability
Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.
IN WITNESS WHEREOF, the Parties hereto have entered into this contract.
STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch Pacific Cascade Region Manager Date: ________________ Date: _________________ Address:
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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)
STATE OF ____________________________)
) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.
____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________
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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES
LOG SALE AND PURCHASE CONTRACT
AGREEMENT NO. 30-096064
SALE NAME: RECLUSE SORT 2
THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:
Section G: General Terms
G-001.2 Definitions
The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.
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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.
G-010.2 Products Sold and Sale Area
Purchaser was the successful bidder on February 22, 2018 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the RECLUSE SORTS Timber Sale described as parts of Sections 25, and 36 all in Township 16 North, Range 6 West, Sections 30, 31, and 32 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.
G-022.2 Sorting Specifications
Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications:
Agreement No.
Sort #
Description Destination
96064 2 DF 12"-19" dib Unless otherwise specified, no blue stain is allowed in Ponderosa pine.
G-024.2 Manufacturing Standards
All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.
Agreement No.
Sort #
Scaling Rule
96064 2 WS
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Average Log Length Preferred Log Lengths 28
"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.
a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.
b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.
c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.
d. Surface characteristics for a high quality (HQ) "B" log sort will have sound tight knots not to exceed 1½ inch in diameter. May include logs with not more than two larger knots up to 2½ inch in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third top end of the log.
G-026.2 Log Delivery Destination
Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.
G-027.2 Log Delivery Schedule and Conditions
a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.
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b. Improperly loaded trucks - It is understood and agreed that the Purchaser
incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.
c. Log Delivery Interruptions - Purchaser may schedule times in which delivery
of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.
d. Required Acceptance of Daily Load Deliveries and Notification - If the State
is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:
1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or
2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.
e. State Notification to Purchaser - The State will notify the Purchaser when it
anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.
f. If payments are not received or, the State determines that the payment security
has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.
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G-030.2 Contract Term and Expiration Date
Purchaser agrees to accept and pay for forest products delivered through the period ending July 31, 2018.
G-054.2 Early Contract Termination
The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.
G-056.2 Force Majeure
No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.
G-060.2 Exclusion of Warranties
The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:
a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.
b. The CONDITION of the forest products. The forest products will be
conveyed "AS IS."
c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.
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d. Items contained in any other documents prepared for or by the State.
G-065 Regulatory Disclaimer
The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.
G-070.2 Limitation on Damage
In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.
G-112.2 Title
The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.
G-116.2 Sustainable Forestry Initiative® (SFI) Certification
Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: BV-SFIS-US09000572.
G-160.2 Agents
The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.
G-180 Modifications
Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.
G-190 Contract Complete
This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.
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G-200.2 Notice
Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s post office address, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.
G-210.2 Violation of Contract
a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.
b. The State has the right to remedy the breach in the absence of any indicated
attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.
c. If Purchaser’s violation is a result of a failure to make payment to the State
when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.
G-240.2 Dispute Resolution
The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.
a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.
b. The Region Manager will issue a written decision on Purchaser’s request
within five business days.
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c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.
d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a
conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.
G-252.2 Forest Excise Tax
Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.
G-253.2 Harvesting Cost Information
The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.
G-260 Venue
This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.
G-330.2 Contract Review
Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.
Section P: Payments and Securities
P-010 Initial Deposit
Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.
P-028.2 Payment for Forest Products Delivered
Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF $20/mbf for Utility logs (Adjusted Gross).
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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause.
P-036.2 Missorts and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet the sorting specifications in G-022.2 where species are incorrect, are scaled over 1” outside the listed diameter specifications, or ponderosa pine with blue stain are considered mis-sorts. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor 0.3 for mis-sort except for blue stain 0.4 for mis-sort related to blue stain Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code
P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting minimum log quality specifications as described in the G-024.2 clause are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract.
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However, when mis-manufactured Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-038.2 Average Log Length and Payment Reduction
If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01) Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th)
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Third party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-040.2 Weighing and Scaling Costs
Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.
P-045.2 Guarantee of Payment
Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.
P-050.2 Billing and Payment Procedure for Forest Products Delivered
The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract.
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Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.
P-080 Payment Account Refund
Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.
Section L: Log Definitions and Accountability
L-010.2 Forest Products Conveyed
Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clauses G-022.2 and G-024.2 of this contract
L-014.2 Sorts Delivered to Incorrect Destination
Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.
L-071.2 Log and Load Reporting Service
This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.
L-080 Scaling Rules
Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.
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L-110 State Approval of Log Scaling and Weighing Locations
Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or en-route to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.
Section D: Damages
D-010 Liquidated Damages
The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.
D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance
a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.
b. Unless Purchaser and the State have made a prior agreement in writing,
Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.
D-027.2 Failure to Accept Forest Products Sold
Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.
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a. When Purchaser’s refusal to accept forest products does not prevent further
harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.
b. When Purchaser’s refusal to accept forest products causes a stoppage of the
State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:
LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment
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D-030.2 Inadequate Log Accountability
Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.
IN WITNESS WHEREOF, the Parties hereto have entered into this contract.
STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch Pacific Cascade Region Manager Date: ________________ Date: _________________ Address:
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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)
STATE OF ____________________________)
) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.
____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________
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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES
LOG SALE AND PURCHASE CONTRACT
AGREEMENT NO. 30-096065
SALE NAME: RECLUSE SORT 3
THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:
Section G: General Terms
G-001.2 Definitions
The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.
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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.
G-010.2 Products Sold and Sale Area
Purchaser was the successful bidder on February 22, 2018 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the RECLUSE SORTS Timber Sale described as parts of Sections 25, and 36 all in Township 16 North, Range 6 West, Sections 30, 31, and 32 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.
G-022.2 Sorting Specifications
Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications:
Agreement No.
Sort #
Description Destination
96065 3 DF 20"+ dib Unless otherwise specified, no blue stain is allowed in Ponderosa pine.
G-024.2 Manufacturing Standards
All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.
Agreement No.
Sort #
Scaling Rule
96065 3 WS
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Average Log Length Preferred Log Lengths 28
"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.
a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.
b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.
c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.
d. Surface characteristics for a high quality (HQ) "B" log sort will have sound tight knots not to exceed 1½ inch in diameter. May include logs with not more than two larger knots up to 2½ inch in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third top end of the log.
G-026.2 Log Delivery Destination
Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.
G-027.2 Log Delivery Schedule and Conditions
a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.
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b. Improperly loaded trucks - It is understood and agreed that the Purchaser
incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.
c. Log Delivery Interruptions - Purchaser may schedule times in which delivery
of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.
d. Required Acceptance of Daily Load Deliveries and Notification - If the State
is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:
1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or
2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.
e. State Notification to Purchaser - The State will notify the Purchaser when it
anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.
f. If payments are not received or, the State determines that the payment security
has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.
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G-030.2 Contract Term and Expiration Date
Purchaser agrees to accept and pay for forest products delivered through the period ending July 31, 2018.
G-054.2 Early Contract Termination
The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.
G-056.2 Force Majeure
No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.
G-060.2 Exclusion of Warranties
The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:
a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.
b. The CONDITION of the forest products. The forest products will be
conveyed "AS IS."
c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.
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d. Items contained in any other documents prepared for or by the State.
G-065 Regulatory Disclaimer
The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.
G-070.2 Limitation on Damage
In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.
G-112.2 Title
The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.
G-116.2 Sustainable Forestry Initiative® (SFI) Certification
Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: BV-SFIS-US09000572.
G-160.2 Agents
The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.
G-180 Modifications
Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.
G-190 Contract Complete
This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.
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G-200.2 Notice
Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s post office address, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.
G-210.2 Violation of Contract
a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.
b. The State has the right to remedy the breach in the absence of any indicated
attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.
c. If Purchaser’s violation is a result of a failure to make payment to the State
when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.
G-240.2 Dispute Resolution
The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.
a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.
b. The Region Manager will issue a written decision on Purchaser’s request
within five business days.
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c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.
d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a
conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.
G-252.2 Forest Excise Tax
Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.
G-253.2 Harvesting Cost Information
The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.
G-260 Venue
This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.
G-330.2 Contract Review
Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.
Section P: Payments and Securities
P-010 Initial Deposit
Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.
P-028.2 Payment for Forest Products Delivered
Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF $20/mbf for Utility logs (Adjusted Gross).
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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause.
P-036.2 Missorts and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet the sorting specifications in G-022.2 where species are incorrect, are scaled over 1” outside the listed diameter specifications, or ponderosa pine with blue stain are considered mis-sorts. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor 0.3 for mis-sort except for blue stain 0.4 for mis-sort related to blue stain Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code
P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting minimum log quality specifications as described in the G-024.2 clause are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract.
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However, when mis-manufactured Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-038.2 Average Log Length and Payment Reduction
If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01) Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th)
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Third party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-040.2 Weighing and Scaling Costs
Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.
P-045.2 Guarantee of Payment
Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.
P-050.2 Billing and Payment Procedure for Forest Products Delivered
The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract.
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Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.
P-080 Payment Account Refund
Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.
Section L: Log Definitions and Accountability
L-010.2 Forest Products Conveyed
Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clauses G-022.2 and G-024.2 of this contract
L-014.2 Sorts Delivered to Incorrect Destination
Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.
L-071.2 Log and Load Reporting Service
This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.
L-080 Scaling Rules
Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.
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L-110 State Approval of Log Scaling and Weighing Locations
Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or en-route to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.
Section D: Damages
D-010 Liquidated Damages
The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.
D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance
a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.
b. Unless Purchaser and the State have made a prior agreement in writing,
Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.
D-027.2 Failure to Accept Forest Products Sold
Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.
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a. When Purchaser’s refusal to accept forest products does not prevent further
harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.
b. When Purchaser’s refusal to accept forest products causes a stoppage of the
State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:
LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment
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D-030.2 Inadequate Log Accountability
Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.
IN WITNESS WHEREOF, the Parties hereto have entered into this contract.
STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch Pacific Cascade Region Manager Date: ________________ Date: _________________ Address:
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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)
STATE OF ____________________________)
) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.
____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________
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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES
LOG SALE AND PURCHASE CONTRACT
AGREEMENT NO. 30-096066
SALE NAME: RECLUSE SORT 4
THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:
Section G: General Terms
G-001.2 Definitions
The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.
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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.
G-010.2 Products Sold and Sale Area
Purchaser was the successful bidder on February 22, 2018 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the RECLUSE SORTS Timber Sale described as parts of Sections 25, and 36 all in Township 16 North, Range 6 West, Sections 30, 31, and 32 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.
G-022.2 Sorting Specifications
Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications:
Agreement No.
Sort #
Description Destination
96066 4 DF HQB 12"+ dib Unless otherwise specified, no blue stain is allowed in Ponderosa pine.
G-024.2 Manufacturing Standards
All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.
Agreement No.
Sort #
Scaling Rule
96066 4 WS
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Average Log Length Preferred Log Lengths 28
"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.
a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.
b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.
c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.
d. Surface characteristics for a high quality (HQ) "B" log sort will have sound tight knots not to exceed 1½ inch in diameter. May include logs with not more than two larger knots up to 2½ inch in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third top end of the log.
G-026.2 Log Delivery Destination
Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.
G-027.2 Log Delivery Schedule and Conditions
a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.
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b. Improperly loaded trucks - It is understood and agreed that the Purchaser
incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.
c. Log Delivery Interruptions - Purchaser may schedule times in which delivery
of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.
d. Required Acceptance of Daily Load Deliveries and Notification - If the State
is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:
1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or
2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.
e. State Notification to Purchaser - The State will notify the Purchaser when it
anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.
f. If payments are not received or, the State determines that the payment security
has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.
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G-030.2 Contract Term and Expiration Date
Purchaser agrees to accept and pay for forest products delivered through the period ending July 31, 2018.
G-054.2 Early Contract Termination
The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.
G-056.2 Force Majeure
No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.
G-060.2 Exclusion of Warranties
The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:
a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.
b. The CONDITION of the forest products. The forest products will be
conveyed "AS IS."
c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.
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d. Items contained in any other documents prepared for or by the State.
G-065 Regulatory Disclaimer
The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.
G-070.2 Limitation on Damage
In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.
G-112.2 Title
The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.
G-116.2 Sustainable Forestry Initiative® (SFI) Certification
Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: BV-SFIS-US09000572.
G-160.2 Agents
The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.
G-180 Modifications
Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.
G-190 Contract Complete
This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.
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G-200.2 Notice
Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s post office address, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.
G-210.2 Violation of Contract
a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.
b. The State has the right to remedy the breach in the absence of any indicated
attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.
c. If Purchaser’s violation is a result of a failure to make payment to the State
when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.
G-240.2 Dispute Resolution
The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.
a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.
b. The Region Manager will issue a written decision on Purchaser’s request
within five business days.
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c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.
d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a
conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.
G-252.2 Forest Excise Tax
Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.
G-253.2 Harvesting Cost Information
The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.
G-260 Venue
This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.
G-330.2 Contract Review
Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.
Section P: Payments and Securities
P-010 Initial Deposit
Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.
P-028.2 Payment for Forest Products Delivered
Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF $20/mbf for Utility logs (Adjusted Gross).
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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause.
P-036.2 Missorts and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet the sorting specifications in G-022.2 where species are incorrect, are scaled over 1” outside the listed diameter specifications, or ponderosa pine with blue stain are considered mis-sorts. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor 0.3 for mis-sort except for blue stain 0.4 for mis-sort related to blue stain Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code
P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting minimum log quality specifications as described in the G-024.2 clause are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract.
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However, when mis-manufactured Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-038.2 Average Log Length and Payment Reduction
If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01) Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th)
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Third party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-040.2 Weighing and Scaling Costs
Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.
P-045.2 Guarantee of Payment
Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.
P-050.2 Billing and Payment Procedure for Forest Products Delivered
The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract.
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Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.
P-080 Payment Account Refund
Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.
Section L: Log Definitions and Accountability
L-010.2 Forest Products Conveyed
Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clauses G-022.2 and G-024.2 of this contract
L-014.2 Sorts Delivered to Incorrect Destination
Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.
L-071.2 Log and Load Reporting Service
This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.
L-080 Scaling Rules
Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.
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L-110 State Approval of Log Scaling and Weighing Locations
Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or en-route to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.
Section D: Damages
D-010 Liquidated Damages
The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.
D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance
a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.
b. Unless Purchaser and the State have made a prior agreement in writing,
Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.
D-027.2 Failure to Accept Forest Products Sold
Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.
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a. When Purchaser’s refusal to accept forest products does not prevent further
harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.
b. When Purchaser’s refusal to accept forest products causes a stoppage of the
State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:
LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment
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D-030.2 Inadequate Log Accountability
Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.
IN WITNESS WHEREOF, the Parties hereto have entered into this contract.
STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch Pacific Cascade Region Manager Date: ________________ Date: _________________ Address:
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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)
STATE OF ____________________________)
) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.
____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________
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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES
LOG SALE AND PURCHASE CONTRACT
AGREEMENT NO. 30-096067
SALE NAME: RECLUSE SORT 5
THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:
Section G: General Terms
G-001.2 Definitions
The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.
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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.
G-010.2 Products Sold and Sale Area
Purchaser was the successful bidder on February 22, 2018 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the RECLUSE SORTS Timber Sale described as parts of Sections 25, and 36 all in Township 16 North, Range 6 West, Sections 30, 31, and 32 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.
G-022.2 Sorting Specifications
Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications:
Agreement No.
Sort #
Description Destination
96067 5 WW 5"+ dib Unless otherwise specified, no blue stain is allowed in Ponderosa pine.
G-024.2 Manufacturing Standards
All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.
Agreement No.
Sort #
Scaling Rule
96067 5 WS
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Average Log Length Preferred Log Lengths 28
"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.
a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.
b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.
c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.
d. Surface characteristics for a high quality (HQ) "B" log sort will have sound tight knots not to exceed 1½ inch in diameter. May include logs with not more than two larger knots up to 2½ inch in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third top end of the log.
G-026.2 Log Delivery Destination
Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.
G-027.2 Log Delivery Schedule and Conditions
a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.
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b. Improperly loaded trucks - It is understood and agreed that the Purchaser
incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.
c. Log Delivery Interruptions - Purchaser may schedule times in which delivery
of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.
d. Required Acceptance of Daily Load Deliveries and Notification - If the State
is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:
1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or
2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.
e. State Notification to Purchaser - The State will notify the Purchaser when it
anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.
f. If payments are not received or, the State determines that the payment security
has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.
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G-030.2 Contract Term and Expiration Date
Purchaser agrees to accept and pay for forest products delivered through the period ending July 31, 2018.
G-054.2 Early Contract Termination
The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.
G-056.2 Force Majeure
No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.
G-060.2 Exclusion of Warranties
The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:
a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.
b. The CONDITION of the forest products. The forest products will be
conveyed "AS IS."
c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.
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d. Items contained in any other documents prepared for or by the State.
G-065 Regulatory Disclaimer
The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.
G-070.2 Limitation on Damage
In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.
G-112.2 Title
The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.
G-116.2 Sustainable Forestry Initiative® (SFI) Certification
Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: BV-SFIS-US09000572.
G-160.2 Agents
The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.
G-180 Modifications
Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.
G-190 Contract Complete
This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.
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G-200.2 Notice
Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s post office address, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.
G-210.2 Violation of Contract
a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.
b. The State has the right to remedy the breach in the absence of any indicated
attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.
c. If Purchaser’s violation is a result of a failure to make payment to the State
when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.
G-240.2 Dispute Resolution
The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.
a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.
b. The Region Manager will issue a written decision on Purchaser’s request
within five business days.
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c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.
d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a
conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.
G-252.2 Forest Excise Tax
Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.
G-253.2 Harvesting Cost Information
The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.
G-260 Venue
This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.
G-330.2 Contract Review
Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.
Section P: Payments and Securities
P-010 Initial Deposit
Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.
P-028.2 Payment for Forest Products Delivered
Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF $20/mbf for Utility logs (Adjusted Gross).
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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause.
P-036.2 Missorts and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet the sorting specifications in G-022.2 where species are incorrect, are scaled over 1” outside the listed diameter specifications, or ponderosa pine with blue stain are considered mis-sorts. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor 0.3 for mis-sort except for blue stain 0.4 for mis-sort related to blue stain Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code
P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting minimum log quality specifications as described in the G-024.2 clause are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract.
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However, when mis-manufactured Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-038.2 Average Log Length and Payment Reduction
If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01) Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th)
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Third party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-040.2 Weighing and Scaling Costs
Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.
P-045.2 Guarantee of Payment
Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.
P-050.2 Billing and Payment Procedure for Forest Products Delivered
The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract.
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Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.
P-080 Payment Account Refund
Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.
Section L: Log Definitions and Accountability
L-010.2 Forest Products Conveyed
Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clauses G-022.2 and G-024.2 of this contract
L-014.2 Sorts Delivered to Incorrect Destination
Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.
L-071.2 Log and Load Reporting Service
This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.
L-080 Scaling Rules
Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.
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L-110 State Approval of Log Scaling and Weighing Locations
Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or en-route to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.
Section D: Damages
D-010 Liquidated Damages
The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.
D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance
a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.
b. Unless Purchaser and the State have made a prior agreement in writing,
Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.
D-027.2 Failure to Accept Forest Products Sold
Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.
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a. When Purchaser’s refusal to accept forest products does not prevent further
harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.
b. When Purchaser’s refusal to accept forest products causes a stoppage of the
State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:
LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment
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D-030.2 Inadequate Log Accountability
Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.
IN WITNESS WHEREOF, the Parties hereto have entered into this contract.
STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch Pacific Cascade Region Manager Date: ________________ Date: _________________ Address:
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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)
STATE OF ____________________________)
) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.
____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________
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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES
LOG SALE AND PURCHASE CONTRACT
AGREEMENT NO. 30-096068
SALE NAME: RECLUSE SORT 6
THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:
Section G: General Terms
G-001.2 Definitions
The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.
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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.
G-010.2 Products Sold and Sale Area
Purchaser was the successful bidder on February 22, 2018 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the RECLUSE SORTS Timber Sale described as parts of Sections 25, and 36 all in Township 16 North, Range 6 West, Sections 30, 31, and 32 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.
G-022.2 Sorting Specifications
Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications:
Agreement No.
Sort #
Description Destination
96068 6 RA 5"-11" dib Unless otherwise specified, no blue stain is allowed in Ponderosa pine.
G-024.2 Manufacturing Standards
All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.
Agreement No.
Sort #
Scaling Rule
96068 6 WS
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Average Log Length Preferred Log Lengths 28
"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.
a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.
b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.
c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.
d. Surface characteristics for a high quality (HQ) "B" log sort will have sound tight knots not to exceed 1½ inch in diameter. May include logs with not more than two larger knots up to 2½ inch in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third top end of the log.
G-026.2 Log Delivery Destination
Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.
G-027.2 Log Delivery Schedule and Conditions
a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.
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b. Improperly loaded trucks - It is understood and agreed that the Purchaser
incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.
c. Log Delivery Interruptions - Purchaser may schedule times in which delivery
of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.
d. Required Acceptance of Daily Load Deliveries and Notification - If the State
is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:
1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or
2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.
e. State Notification to Purchaser - The State will notify the Purchaser when it
anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.
f. If payments are not received or, the State determines that the payment security
has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.
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G-030.2 Contract Term and Expiration Date
Purchaser agrees to accept and pay for forest products delivered through the period ending July 31, 2018.
G-054.2 Early Contract Termination
The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.
G-056.2 Force Majeure
No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.
G-060.2 Exclusion of Warranties
The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:
a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.
b. The CONDITION of the forest products. The forest products will be
conveyed "AS IS."
c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.
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d. Items contained in any other documents prepared for or by the State.
G-065 Regulatory Disclaimer
The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.
G-070.2 Limitation on Damage
In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.
G-112.2 Title
The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.
G-116.2 Sustainable Forestry Initiative® (SFI) Certification
Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: BV-SFIS-US09000572.
G-160.2 Agents
The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.
G-180 Modifications
Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.
G-190 Contract Complete
This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.
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G-200.2 Notice
Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s post office address, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.
G-210.2 Violation of Contract
a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.
b. The State has the right to remedy the breach in the absence of any indicated
attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.
c. If Purchaser’s violation is a result of a failure to make payment to the State
when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.
G-240.2 Dispute Resolution
The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.
a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.
b. The Region Manager will issue a written decision on Purchaser’s request
within five business days.
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c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.
d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a
conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.
G-252.2 Forest Excise Tax
Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.
G-253.2 Harvesting Cost Information
The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.
G-260 Venue
This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.
G-330.2 Contract Review
Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.
Section P: Payments and Securities
P-010 Initial Deposit
Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.
P-028.2 Payment for Forest Products Delivered
Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF $20/mbf for Utility logs (Adjusted Gross).
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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause.
P-036.2 Missorts and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet the sorting specifications in G-022.2 where species are incorrect, are scaled over 1” outside the listed diameter specifications, or ponderosa pine with blue stain are considered mis-sorts. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor 0.3 for mis-sort except for blue stain 0.4 for mis-sort related to blue stain Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code
P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting minimum log quality specifications as described in the G-024.2 clause are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract.
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However, when mis-manufactured Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-038.2 Average Log Length and Payment Reduction
If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01) Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th)
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Third party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-040.2 Weighing and Scaling Costs
Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.
P-045.2 Guarantee of Payment
Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.
P-050.2 Billing and Payment Procedure for Forest Products Delivered
The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract.
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Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.
P-080 Payment Account Refund
Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.
Section L: Log Definitions and Accountability
L-010.2 Forest Products Conveyed
Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clauses G-022.2 and G-024.2 of this contract
L-014.2 Sorts Delivered to Incorrect Destination
Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.
L-071.2 Log and Load Reporting Service
This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.
L-080 Scaling Rules
Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.
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L-110 State Approval of Log Scaling and Weighing Locations
Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or en-route to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.
Section D: Damages
D-010 Liquidated Damages
The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.
D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance
a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.
b. Unless Purchaser and the State have made a prior agreement in writing,
Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.
D-027.2 Failure to Accept Forest Products Sold
Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.
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a. When Purchaser’s refusal to accept forest products does not prevent further
harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.
b. When Purchaser’s refusal to accept forest products causes a stoppage of the
State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:
LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment
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D-030.2 Inadequate Log Accountability
Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.
IN WITNESS WHEREOF, the Parties hereto have entered into this contract.
STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch Pacific Cascade Region Manager Date: ________________ Date: _________________ Address:
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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)
STATE OF ____________________________)
) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.
____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________
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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES
LOG SALE AND PURCHASE CONTRACT
AGREEMENT NO. 30-096069
SALE NAME: RECLUSE SORT 7
THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:
Section G: General Terms
G-001.2 Definitions
The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.
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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.
G-010.2 Products Sold and Sale Area
Purchaser was the successful bidder on February 22, 2018 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the RECLUSE SORTS Timber Sale described as parts of Sections 25, and 36 all in Township 16 North, Range 6 West, Sections 30, 31, and 32 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.
G-022.2 Sorting Specifications
Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications:
Agreement No.
Sort #
Description Destination
96069 7 RA 12"+ dib Unless otherwise specified, no blue stain is allowed in Ponderosa pine.
G-024.2 Manufacturing Standards
All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.
Agreement No.
Sort #
Scaling Rule
96069 7 WS
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Average Log Length Preferred Log Lengths 28
"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.
a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.
b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.
c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.
d. Surface characteristics for a high quality (HQ) "B" log sort will have sound tight knots not to exceed 1½ inch in diameter. May include logs with not more than two larger knots up to 2½ inch in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third top end of the log.
G-026.2 Log Delivery Destination
Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.
G-027.2 Log Delivery Schedule and Conditions
a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.
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b. Improperly loaded trucks - It is understood and agreed that the Purchaser
incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.
c. Log Delivery Interruptions - Purchaser may schedule times in which delivery
of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.
d. Required Acceptance of Daily Load Deliveries and Notification - If the State
is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:
1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or
2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.
e. State Notification to Purchaser - The State will notify the Purchaser when it
anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.
f. If payments are not received or, the State determines that the payment security
has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.
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G-030.2 Contract Term and Expiration Date
Purchaser agrees to accept and pay for forest products delivered through the period ending July 31, 2018.
G-054.2 Early Contract Termination
The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.
G-056.2 Force Majeure
No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.
G-060.2 Exclusion of Warranties
The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:
a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.
b. The CONDITION of the forest products. The forest products will be
conveyed "AS IS."
c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.
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d. Items contained in any other documents prepared for or by the State.
G-065 Regulatory Disclaimer
The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.
G-070.2 Limitation on Damage
In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.
G-112.2 Title
The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.
G-116.2 Sustainable Forestry Initiative® (SFI) Certification
Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: BV-SFIS-US09000572.
G-160.2 Agents
The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.
G-180 Modifications
Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.
G-190 Contract Complete
This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.
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G-200.2 Notice
Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s post office address, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.
G-210.2 Violation of Contract
a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.
b. The State has the right to remedy the breach in the absence of any indicated
attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.
c. If Purchaser’s violation is a result of a failure to make payment to the State
when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.
G-240.2 Dispute Resolution
The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.
a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.
b. The Region Manager will issue a written decision on Purchaser’s request
within five business days.
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c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.
d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a
conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.
G-252.2 Forest Excise Tax
Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.
G-253.2 Harvesting Cost Information
The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.
G-260 Venue
This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.
G-330.2 Contract Review
Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.
Section P: Payments and Securities
P-010 Initial Deposit
Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.
P-028.2 Payment for Forest Products Delivered
Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF $20/mbf for Utility logs (Adjusted Gross).
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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause.
P-036.2 Missorts and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet the sorting specifications in G-022.2 where species are incorrect, are scaled over 1” outside the listed diameter specifications, or ponderosa pine with blue stain are considered mis-sorts. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor 0.3 for mis-sort except for blue stain 0.4 for mis-sort related to blue stain Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code
P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting minimum log quality specifications as described in the G-024.2 clause are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract.
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However, when mis-manufactured Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-038.2 Average Log Length and Payment Reduction
If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01) Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th)
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Third party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-040.2 Weighing and Scaling Costs
Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.
P-045.2 Guarantee of Payment
Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.
P-050.2 Billing and Payment Procedure for Forest Products Delivered
The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract.
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Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.
P-080 Payment Account Refund
Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.
Section L: Log Definitions and Accountability
L-010.2 Forest Products Conveyed
Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clauses G-022.2 and G-024.2 of this contract
L-014.2 Sorts Delivered to Incorrect Destination
Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.
L-071.2 Log and Load Reporting Service
This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.
L-080 Scaling Rules
Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.
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L-110 State Approval of Log Scaling and Weighing Locations
Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or en-route to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.
Section D: Damages
D-010 Liquidated Damages
The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.
D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance
a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.
b. Unless Purchaser and the State have made a prior agreement in writing,
Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.
D-027.2 Failure to Accept Forest Products Sold
Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.
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a. When Purchaser’s refusal to accept forest products does not prevent further
harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.
b. When Purchaser’s refusal to accept forest products causes a stoppage of the
State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:
LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment
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D-030.2 Inadequate Log Accountability
Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.
IN WITNESS WHEREOF, the Parties hereto have entered into this contract.
STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch Pacific Cascade Region Manager Date: ________________ Date: _________________ Address:
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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)
STATE OF ____________________________)
) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.
____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________
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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES
LOG SALE AND PURCHASE CONTRACT
AGREEMENT NO. 30-096070
SALE NAME: RECLUSE SORT 8
THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:
Section G: General Terms
G-001.2 Definitions
The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.
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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.
G-010.2 Products Sold and Sale Area
Purchaser was the successful bidder on February 22, 2018 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the RECLUSE SORTS Timber Sale described as parts of Sections 25, and 36 all in Township 16 North, Range 6 West, Sections 30, 31, and 32 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.
G-022.2 Sorting Specifications
Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications:
Agreement No.
Sort #
Description Destination
96070 8 BM 8"+ dib Unless otherwise specified, no blue stain is allowed in Ponderosa pine.
G-024.2 Manufacturing Standards
All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.
Agreement No.
Sort #
Scaling Rule
96070 8 WS
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Average Log Length Preferred Log Lengths 28
"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.
a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.
b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.
c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.
d. Surface characteristics for a high quality (HQ) "B" log sort will have sound tight knots not to exceed 1½ inch in diameter. May include logs with not more than two larger knots up to 2½ inch in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third top end of the log.
G-026.2 Log Delivery Destination
Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.
G-027.2 Log Delivery Schedule and Conditions
a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.
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b. Improperly loaded trucks - It is understood and agreed that the Purchaser
incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.
c. Log Delivery Interruptions - Purchaser may schedule times in which delivery
of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.
d. Required Acceptance of Daily Load Deliveries and Notification - If the State
is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:
1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or
2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.
e. State Notification to Purchaser - The State will notify the Purchaser when it
anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.
f. If payments are not received or, the State determines that the payment security
has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.
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G-030.2 Contract Term and Expiration Date
Purchaser agrees to accept and pay for forest products delivered through the period ending July 31, 2018.
G-054.2 Early Contract Termination
The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.
G-056.2 Force Majeure
No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.
G-060.2 Exclusion of Warranties
The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:
a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.
b. The CONDITION of the forest products. The forest products will be
conveyed "AS IS."
c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.
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d. Items contained in any other documents prepared for or by the State.
G-065 Regulatory Disclaimer
The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.
G-070.2 Limitation on Damage
In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.
G-112.2 Title
The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.
G-116.2 Sustainable Forestry Initiative® (SFI) Certification
Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: BV-SFIS-US09000572.
G-160.2 Agents
The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.
G-180 Modifications
Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.
G-190 Contract Complete
This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.
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G-200.2 Notice
Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s post office address, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.
G-210.2 Violation of Contract
a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.
b. The State has the right to remedy the breach in the absence of any indicated
attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.
c. If Purchaser’s violation is a result of a failure to make payment to the State
when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.
G-240.2 Dispute Resolution
The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.
a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.
b. The Region Manager will issue a written decision on Purchaser’s request
within five business days.
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c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.
d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a
conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.
G-252.2 Forest Excise Tax
Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.
G-253.2 Harvesting Cost Information
The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.
G-260 Venue
This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.
G-330.2 Contract Review
Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.
Section P: Payments and Securities
P-010 Initial Deposit
Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.
P-028.2 Payment for Forest Products Delivered
Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/MBF $20/mbf for Utility logs (Adjusted Gross).
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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause.
P-036.2 Missorts and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet the sorting specifications in G-022.2 where species are incorrect, are scaled over 1” outside the listed diameter specifications, or ponderosa pine with blue stain are considered mis-sorts. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor 0.3 for mis-sort except for blue stain 0.4 for mis-sort related to blue stain Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code
P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting minimum log quality specifications as described in the G-024.2 clause are considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract.
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However, when mis-manufactured Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-038.2 Average Log Length and Payment Reduction
If the average log length for all logs delivered under this contract is less than the average log length specified in the table in clause G-024.2, The amount of allowable payment reduction shall be calculated by multiplying the payment rate in P-028.2 by the total volume delivered, and the difference between the average length of logs delivered and the average log length specified in G-024.2, times 1% as follows: Log Length Payment Reduction = (B x V x L) x (.01) Where: B = Bid rate from P-028.2 clause V = total delivered log Volume L = Length in feet below specified average (rounded to nearest 1/10th)
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Third party scaling organization information is required to determine Scribner mbf and Average log length for payment reduction purposes. Average log length is determined on a piece count basis. Value of log length price reduction will be derived from the applicable sort value as described in this contract. Scale information for determining Average log length for payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for below average log lengths shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-040.2 Weighing and Scaling Costs
Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.
P-045.2 Guarantee of Payment
Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.
P-050.2 Billing and Payment Procedure for Forest Products Delivered
The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract.
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Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.
P-080 Payment Account Refund
Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.
Section L: Log Definitions and Accountability
L-010.2 Forest Products Conveyed
Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clauses G-022.2 and G-024.2 of this contract
L-014.2 Sorts Delivered to Incorrect Destination
Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.
L-071.2 Log and Load Reporting Service
This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.
L-080 Scaling Rules
Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.
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L-110 State Approval of Log Scaling and Weighing Locations
Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval. Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or en-route to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.
Section D: Damages
D-010 Liquidated Damages
The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.
D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance
a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.
b. Unless Purchaser and the State have made a prior agreement in writing,
Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.
D-027.2 Failure to Accept Forest Products Sold
Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.
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a. When Purchaser’s refusal to accept forest products does not prevent further
harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.
b. When Purchaser’s refusal to accept forest products causes a stoppage of the
State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:
LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment
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D-030.2 Inadequate Log Accountability
Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess. For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.
IN WITNESS WHEREOF, the Parties hereto have entered into this contract.
STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch Pacific Cascade Region Manager Date: ________________ Date: _________________ Address:
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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)
STATE OF ____________________________)
) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.
____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________
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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES
LOG SALE AND PURCHASE CONTRACT
AGREEMENT NO. 30-096071
SALE NAME: RECLUSE SORT 9
THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:
Section G: General Terms
G-001.2 Definitions
The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.
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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.
G-010.2 Products Sold and Sale Area
Purchaser was the successful bidder on February 22, 2018 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the RECLUSE SORTS Timber Sale described as parts of Sections 25, and 36 all in Township 16 North, Range 6 West, Sections 30, 31, and 32 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.
G-022.2 Sorting Specifications
Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications:
Agreement No.
Sort #
Description Destination
96071 9 Conifer Pulp 2"+ dib Unless otherwise specified, no blue stain is allowed in Ponderosa pine.
G-024.2 Manufacturing Standards
All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.
Agreement No.
Sort #
Scaling Rule
96071 9 WS
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Average Log Length Preferred Log Lengths N/A
"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.
a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.
b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.
c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.
d. Surface characteristics for a high quality (HQ) "B" log sort will have sound tight knots not to exceed 1½ inch in diameter. May include logs with not more than two larger knots up to 2½ inch in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third top end of the log.
G-026.2 Log Delivery Destination
Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.
G-027.2 Log Delivery Schedule and Conditions
a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.
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b. Improperly loaded trucks - It is understood and agreed that the Purchaser
incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.
c. Log Delivery Interruptions - Purchaser may schedule times in which delivery
of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.
d. Required Acceptance of Daily Load Deliveries and Notification - If the State
is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:
1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or
2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.
e. State Notification to Purchaser - The State will notify the Purchaser when it
anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.
f. If payments are not received or, the State determines that the payment security
has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.
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G-030.2 Contract Term and Expiration Date
Purchaser agrees to accept and pay for forest products delivered through the period ending July 31, 2018.
G-050.2 Contract Term Extension
Contract extensions and any other conditions subject to the extension as agreed to by the Purchaser and State, must be formalized in writing, signed by Purchaser and State.
G-054.2 Early Contract Termination
The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.
G-056.2 Force Majeure
No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.
G-060.2 Exclusion of Warranties
The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:
a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.
b. The CONDITION of the forest products. The forest products will be
conveyed "AS IS."
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c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.
d. Items contained in any other documents prepared for or by the State.
G-065 Regulatory Disclaimer
The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.
G-070.2 Limitation on Damage
In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.
G-112.2 Title
The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.
G-116.2 Sustainable Forestry Initiative® (SFI) Certification
Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: BV-SFIS-US09000572.
G-160.2 Agents
The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.
G-180 Modifications
Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.
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G-190 Contract Complete
This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.
G-200.2 Notice
Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s post office address, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.
G-210.2 Violation of Contract
a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.
b. The State has the right to remedy the breach in the absence of any indicated
attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.
c. If Purchaser’s violation is a result of a failure to make payment to the State
when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.
G-240.2 Dispute Resolution
The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.
a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.
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b. The Region Manager will issue a written decision on Purchaser’s request
within five business days.
c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.
d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a
conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.
G-252.2 Forest Excise Tax
Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.
G-253.2 Harvesting Cost Information
The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.
G-260 Venue
This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.
G-330.2 Contract Review
Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.
Section P: Payments and Securities
P-010 Initial Deposit
Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.
P-028.2 Payment for Forest Products Delivered
Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/Ton
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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause.
P-036.2 Missorts and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet the sorting specifications in G-022.2 where species are incorrect, are scaled over 1” outside the listed diameter specifications, or ponderosa pine with blue stain are considered mis-sorts. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor 0.3 for mis-sort except for blue stain 0.4 for mis-sort related to blue stain Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code
P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting minimum log quality specifications as described in the G-024.2 clause are
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considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract. However, when mis-manufactured Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-039.2 Tonnage Sort Payment Reduction Requirements
Purchaser must provide a plan in writing, acceptable to the State, to acquire third party Scribner mbf scaling information in order to be eligible for a payment reduction for a tonnage sort according to clauses P-036.2 or P-037.2. Logs delivered and accepted by the Purchaser prior to the State’s acceptance of Purchaser’s written payment reduction plan are not eligible for payment reduction. Failure of Purchaser to provide sample scale data in a timely, accurate and legible basis will void an approved sample scale plan. An approved payment reduction plan can be voided at the sole discretion of the State.
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For the purpose of tonnage sort payment reduction requests, preferred log lengths for tonnage sawlog sorts shall include the following plus any additional lengths identified in clause G-024.2: Species Type Preferred Lengths Conifer Sorts 16’, 20’, 24’, 26’, 32’, 40’ Hardwood Sorts 18’, 20’, 26’, 28’, 30’, 36’, 38’, 40’
P-040.2 Weighing and Scaling Costs
Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.
P-045.2 Guarantee of Payment
Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.
P-050.2 Billing and Payment Procedure for Forest Products Delivered
The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract. Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.
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P-080 Payment Account Refund
Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.
Section L: Log Definitions and Accountability
L-010.2 Forest Products Conveyed
Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clauses G-022.2 and G-024.2 of this contract
L-014.2 Sorts Delivered to Incorrect Destination
Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.
L-071.2 Log and Load Reporting Service
This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.
L-080 Scaling Rules
Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.
L-110 State Approval of Log Scaling and Weighing Locations
Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval.
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Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or en-route to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.
Section D: Damages
D-010 Liquidated Damages
The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.
D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance
a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.
b. Unless Purchaser and the State have made a prior agreement in writing,
Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.
D-027.2 Failure to Accept Forest Products Sold
Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.
a. When Purchaser’s refusal to accept forest products does not prevent further harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.
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b. When Purchaser’s refusal to accept forest products causes a stoppage of the
State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:
LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment
D-030.2 Inadequate Log Accountability
Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess.
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For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.
IN WITNESS WHEREOF, the Parties hereto have entered into this contract.
STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch Pacific Cascade Region Manager Date: ________________ Date: _________________ Address:
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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)
STATE OF ____________________________)
) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.
____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________
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STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES
LOG SALE AND PURCHASE CONTRACT
AGREEMENT NO. 30-096072
SALE NAME: RECLUSE SORT 10
THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES, HEREINAFTER ACTING SOLELY, IN ITS PROPRIETARY CAPACITY, STATE, AND PURCHASER, AGREE AS FOLLOWS:
Section G: General Terms
G-001.2 Definitions
The following definitions apply throughout this contract; Contract Administrator: Region Manager’s designee responsible for assuring that the contractual obligations of the Purchaser and Contractor are met. Contractor: State-selected harvester responsible to perform all duties as required by the Harvesting Services Contract, including but not limited to timber harvesting, road construction, debris removal and piling, hauling and delivery of forest products for weighing and/or scaling, to the Purchasers of the timber sales Sorts. Delivery: Occurs when logs or forest products meeting the sorting specifications arrive at the Purchasers destination, as described in the contract. Forest Product: Any material derived from the forest for commercial use. Harvesting: A general term, referring to the Contractor’s various obligations under the Harvesting Services Contract.
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Harvesting Services Contract: Contract between the Contractor and the State, which sets forth the procedures and obligations of the Contractor for completing the harvesting of timber, and the delivery of various log sorts to the State’s purchasers, and the payment obligations of the State, The Harvesting Services Contract will include a Road Plan for any road construction or reconstruction, where applicable. Log Sale and Purchase Contract: Purchase Agreement between the State and Purchaser(s) of particular log sorts from the timber sale. Purchaser: The company or individual that has entered into a Log Sale Contract with the State for individual log sorts from the timber sale area. The Contractor must deliver the designated log sorts to this company or individual. Contractor will likely be delivering different log sorts to different purchasers under the Harvesting Services Contract. State: The Washington State Department of Natural Resources, landowner and seller of forest products from the timber sale area. The State is represented by the Region Manager as designated on the contract signature page. Contractual obligations to the State are enforced by the Region Manager or the designated Contract Administrator.
G-010.2 Products Sold and Sale Area
Purchaser was the successful bidder on February 22, 2018 and sale was confirmed on ___________________. The State, as owner, agrees to sell and deliver to the Purchaser logs meeting the log sort specifications as described in the G-022.2 clause. Logs will be delivered from the RECLUSE SORTS Timber Sale described as parts of Sections 25, and 36 all in Township 16 North, Range 6 West, Sections 30, 31, and 32 all in Township 16 North, Range 5 West W.M., in Grays Harbor County.
G-022.2 Sorting Specifications
Purchaser shall accept and pay for delivery of log sorts by a state selected contractor to the designated Purchaser location that meets the following specifications:
Agreement No.
Sort #
Description Destination
96072 10 Hardwood Pulp 2"+ dib Unless otherwise specified, no blue stain is allowed in Ponderosa pine.
G-024.2 Manufacturing Standards
All forest products except poles, produced and sold under this contract will be manufactured to maximize the amount of logs meeting preferred log lengths and to achieve the average log length listed.
Agreement No.
Sort #
Scaling Rule
96072 10 WS
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Average Log Length Preferred Log Lengths N/A
"WS" indicates that west side scaling rules apply. Minimum trim is 8 inches per scaling segment for west side scaling rules. "ES" indicates that east side scaling rules apply. Minimum trim is 4 inches per scaling segment for east side scaling rules. Poles produced under this contract will be manufactured to ANSI specifications (American National Standard Specifications and Dimensions for Wood Poles), in force at the time of signing this contract.
a. Sweep will be limited to within the bole of the log as measured using a tape stretched between the centers of each end of the log.
b. Logs approved by the state for peelers shall be chuckable with no more than a 2 inch diameter area of rot within a 5 inch diameter circle located at the center of either end of the log.
c. Limbs and knots shall be cut flush, with no more than 15 percent of a log having limbs or knots over 2 inches in diameter extending more than 2 inches above the surface of the log.
d. Surface characteristics for a high quality (HQ) "B" log sort will have sound tight knots not to exceed 1½ inch in diameter. May include logs with not more than two larger knots up to 2½ inch in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third top end of the log.
G-026.2 Log Delivery Destination
Purchaser shall accept logs delivered to the destination as described in the G-022.2 clause. Purchaser may make a written request to the State for a change in log delivery destination or scaling or weighing location. If agreeable and in the best interest of the State, the State may approve the Purchaser’s request. Written approval must be granted by the State prior to log delivery to a new destination or use of a new scaling or weighing facility. Increased haul distance shall result in an increase in the P-028.2 log delivery payment rate in an amount to be calculated by the State. In no circumstance shall the payment rate for delivered logs be reduced as a result of a state approved delivery destination or scaling or weighing facility change. Purchaser may refuse loads delivered to the wrong destination.
G-027.2 Log Delivery Schedule and Conditions
a. Delivery hours - Purchaser agrees to accept logs from the Contractor at the Purchaser's delivery location during Purchaser’s working hours or at least between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays unless otherwise agreed upon by the State.
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b. Improperly loaded trucks - It is understood and agreed that the Purchaser
incurs no obligation to accept improperly or illegally loaded trucks in its facility. Any truck so loaded may be directed to vacate the yard and shall remain the responsibility of the harvesting contractor. The Purchaser shall notify the State within 24 hours of any load (s) rejected and specify the reasons why.
c. Log Delivery Interruptions - Purchaser may schedule times in which delivery
of logs will not be accepted. The Purchaser shall notify the Contract Administrator at least five (5) working days before the scheduled interruption or closure occurs. The duration of the log delivery interruption shall not exceed seven (7) consecutive working days or a total of ten (10) working days over the duration of the contract term. If Purchaser’s scheduled delivery interruption exceeds contract requirements and causes the State harm, Purchaser will be in breach of contract and subject to liquidated damages as per the D-026.2 and D-027.2 clauses, unless Purchaser and the State have made a prior agreement in writing to mitigate potential harm to the State.
d. Required Acceptance of Daily Load Deliveries and Notification - If the State
is harmed by purchaser’s refusal to accept up to 10 truck deliveries of any one sort per day, Purchaser will be in breach of contract and subject to damages as per the D-026.2 and D-027.2 clauses. A truck delivery is all the wood delivered including sorts on super trucks, mule trains and pups brought to the delivery point by a single truck. The Purchaser shall notify the Contract Administrator at least 48 hours in advance if:
1. Purchaser intends to limit the number of truck deliveries accepted on any day to less than that listed above, or
2. Purchaser intends to limit the number of truck deliveries accepted on any day to the number listed above.
e. State Notification to Purchaser - The State will notify the Purchaser when it
anticipates or schedules an interruption of deliveries and when it anticipates the number of truck deliveries on any day will exceed the number listed above.
f. If payments are not received or, the State determines that the payment security
has become unsatisfactory or, a demand is made against the payment security under the P-045.2 clause the State shall suspend deliveries until such time as the violation has been remedied. Any suspension of deliveries due to late payment or inadequate payment security will be considered a Log Delivery Interruption under (c) of this clause.
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G-030.2 Contract Term and Expiration Date
Purchaser agrees to accept and pay for forest products delivered through the period ending July 31, 2018.
G-050.2 Contract Term Extension
Contract extensions and any other conditions subject to the extension as agreed to by the Purchaser and State, must be formalized in writing, signed by Purchaser and State.
G-054.2 Early Contract Termination
The State may terminate this contract in whole or in part by giving fifteen (15) days written notice to the Purchaser when it is in the best interests of the State. If this contract is so terminated, the State shall be liable only for the return of that portion of the initial deposit that is not required for payment, and the return of unapplied payments. The State shall not be liable for damages, whether direct or consequential.
G-056.2 Force Majeure
No Party shall be liable for any failure to perform its obligations, other than payments due, where such failure is as a result of Acts of Nature (including fire, flood, earthquake, storm, or other natural disaster), war, act of foreign enemies, hostilities (whether war is declared or not), terrorist activities, government sanction, fire, labor dispute, strike or lockout. Any Party asserting Force Majeure as an excuse shall have the burden of proving that reasonable steps were taken (under the circumstances) to minimize delay or damages caused by foreseeable events, that all non-excused obligations were substantially fulfilled, and that the other Party was timely notified of the likelihood or actual occurrence which would justify such an assertion, so that other prudent precautions could be contemplated. In the event of Force Majeure, the State reserves the right to terminate this agreement in accordance with clause G-054.2 ‘Early Contract Termination’.
G-060.2 Exclusion of Warranties
The PARTIES AGREE that the IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE and ALL OTHER WARRANTIES EXPRESSED OR IMPLIED ARE EXCLUDED from this transaction and shall not apply to the goods to be harvested or sold. For example, THE FOLLOWING SPECIFIC MATTERS ARE NOT WARRANTED, and are EXCLUDED from this transaction:
a. The MERCHANTABILITY of the forest products. The use of the term "merchantable" in any document is not intended to vary the foregoing.
b. The CONDITION of the forest products. The forest products will be
conveyed "AS IS."
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c. THE VOLUME, WEIGHT, QUANITY, OR QUALITY, of the forest products to be harvested. The descriptions of the forest products to be conveyed, are estimates only, made solely for administrative and identification purposes. The timing of forest product deliveries.
d. Items contained in any other documents prepared for or by the State.
G-065 Regulatory Disclaimer
The State disclaims any responsibility for, or liability relating to, regulatory actions by any government agency, including actions pursuant to the Forest Practices Act, Ch. 76.09 RCW that may affect the operability of the timber sale.
G-070.2 Limitation on Damage
In the event of a breach of any provision of this contract by the State, the liability of the State shall be limited to return of the unused initial deposit and unapplied payments to the Purchaser. The State shall not be liable for any damages, whether direct, incidental, or consequential.
G-112.2 Title
The State hereby warrants that State is the owner of said logs and has the right to sell same, free of liens, encumbrances, or claims, but subject to trade restrictions promulgated in WAC 240-15-015. Purchaser assumes title and all risk and responsibility for said logs upon delivery.
G-116.2 Sustainable Forestry Initiative® (SFI) Certification
Forest products purchased under this contract are certified as being in conformance with the Sustainable Forestry Initiative program Standard under certificate number: BV-SFIS-US09000572.
G-160.2 Agents
The State's rights and duties will be exercised by the Region Manager at Castle Rock, Washington. The Region Manager will notify Purchaser in writing who is responsible for administering the contract. The Region Manager has sole authority to waive, modify, or amend the terms of this contract in the manner prescribed in clause G-180. No agent, employee, or representative of the State has any authority to bind the State to any affirmation, representation, or warranty concerning the logs conveyed beyond the terms of this contract. The Purchaser agrees to notify the State in writing of their authorized representative at the log delivery destination who will be readily available and who shall be authorized to receive, on behalf of the Purchaser any instructions or notices given by the State in regard to performance under this contract, and any limits to this person's authority.
G-180 Modifications
Waivers, modifications, or amendments of the terms of this contract must be in writing signed by Purchaser and the State.
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G-190 Contract Complete
This contract is the final expression of the Parties' agreement. There are no understandings, agreements, or representations, expressed or implied, which are not specified in this contract.
G-200.2 Notice
Notices required to be given under the following clauses shall be in writing and shall be delivered to the State or Purchaser’s authorized agent or sent by certified mail to the Purchaser’s post office address, so that their receipt may be acknowledged. G-026.2 Log Delivery Destination G-027.2 Log Delivery and Schedule Conditions G-210.2 Violation of Contract All other notices required to be given under this contract shall be in writing and delivered to their respective authorized agent or mailed to the Party’s post office address. Parties agree to notify the other of any change of mailing address.
G-210.2 Violation of Contract
a. If Purchaser violates any provision of this contract, the Contract Administrator, by written notice, may suspend delivery of further loads of forest products. If the violation is capable of being remedied, the Purchaser has five (5) days after receipt of suspension notice to remedy the violation. If the violation cannot be remedied (such as violation of WAC 240-15-015) or Purchaser fails to remedy the violation within five (5) days after receipt of a suspension notice, the State may terminate the rights of the Purchaser under this contract and collect damages as described in the damages clause in this contract.
b. The State has the right to remedy the breach in the absence of any indicated
attempt by the Purchaser or if Purchaser is unable, as determined by the State, to remedy the breach. Any expense incurred by the State shall be charged to Purchaser and shall be paid within thirty (30) days of receipt of billing.
c. If Purchaser’s violation is a result of a failure to make payment to the State
when due, in addition to (a.) above, interest shall accrue on the unpaid balance at 12 percent per annum, beginning the date payment was due. The State may secure payments from the security provided.
G-240.2 Dispute Resolution
The following procedures apply in the event of a dispute regarding interpretation or administration of this contract and the parties agree that these procedures must be followed before a lawsuit can be initiated.
a. In the event of a dispute, Purchaser must make a written request to the Region Manager for resolution prior to seeking other relief.
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b. The Region Manager will issue a written decision on Purchaser’s request
within five business days.
c. Within five business days of receipt of the Region Manager's decision, the Purchaser may make a written request for resolution to the Deputy Supervisor - Uplands of the Department of Natural Resources.
d. Unless otherwise agreed, the Deputy Supervisor - Uplands will hold a
conference within 15 calendar days of the receipt of Purchaser’s request for review of the Region Manager's written decision. Purchaser and the Region Manager will have an opportunity to present their positions. The Deputy Supervisor - Uplands will issue a decision within a reasonable time of being presented with both Parties' positions.
G-252.2 Forest Excise Tax
Purchaser shall be responsible for payment of all forest excise taxes pursuant to chapter 84.33 RCW.
G-253.2 Harvesting Cost Information
The State agrees to supply all harvesting cost information to the Purchaser for their consideration in payment of forest excise taxes.
G-260 Venue
This contract shall be governed by the laws of the State of Washington. In the event of a lawsuit involving this contract, venue shall be proper only in Thurston County Superior Court.
G-330.2 Contract Review
Purchaser may arrange with the Contract Administrator to review the provisions of this contract prior to the delivery of forest products.
Section P: Payments and Securities
P-010 Initial Deposit
Purchaser paid DATA MISSING initial deposit, which will be maintained pursuant to RCW 79.15.100(3). If the operating authority on this contract expires without Purchaser's payment of the full amount specified in the 'Payment for Forest Products' clause, the initial deposit will be immediately forfeited to the State, and will be offset against Purchaser's remaining balance due. Any excess initial deposit funds not needed to ensure full payment of the contract price, or not needed to complete any remaining obligations of the Purchaser existing after contract expiration, will be refunded to the Purchaser.
P-028.2 Payment for Forest Products Delivered
Purchaser agrees to pay the State for delivered forest products at the following rate: $0.00/Ton
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Purchaser agrees to increase the above delivered payment rate as approved by the State in the event the location of delivery is changed per the G-026.2 clause.
P-036.2 Missorts and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet the sorting specifications in G-022.2 where species are incorrect, are scaled over 1” outside the listed diameter specifications, or ponderosa pine with blue stain are considered mis-sorts. However, when mis-sorted Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-sort threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-sort payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-sort price reduction are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-sorted will be calculated as follows: Payment Reduction = (B x M) x R Where: B = Bid rate from P-028.2 clause M = Mis-sorted volume exceeding threshold excluding utility R = Reduction factor 0.3 for mis-sort except for blue stain 0.4 for mis-sort related to blue stain Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-sort payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-sorts shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code
P-037.2 Mismanufacture and Payment Reduction for Delivered Forest Products
Forest Products delivered that do not meet preferred log length specifications or multiples or combinations of preferred lengths and Forest Products delivered not meeting minimum log quality specifications as described in the G-024.2 clause are
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considered mis-manufactured. Purchaser receiving mis-manufactured Forest Products is required to pay the State at the bid price under this contract. However, when mis-manufactured Forest Products amount to more than 5% of the total delivered sort volume, Purchaser may request approval for payment reduction for delivered volume exceeding the mis-manufacture threshold. Requests for payment reduction must be submitted to the State in writing prior to contract expiration. Eligibility for mis-manufacture payment reduction is subject to State approval and shall be determined by the State’s delivered product analysis. Forest Products determined by the State eligible for mis-manufacture price reductions are not eligible for any other price adjustments. Payment reduction for Forest Products deemed mis-manufactured will be calculated as follows: Payment Reduction = (B x M) x (0.2) Where: B = Bid rate from P-028.2 clause M = Mis-manufactured volume exceeding threshold excluding utility Third party scaling organization information is required to determine Scribner mbf for payment reduction purposes. Value will be derived from the applicable sort value as described in this contract. Scale information for determining mis-manufacture payment reduction eligibility must be obtained from roll-out scale. Truck-ramp and/or bundle scaling information is not acceptable for determining eligibility. Purchaser’s exclusive remedy for mis-manufacture shall be the payment reduction described in this clause, notwithstanding other provisions in the Uniform Commercial Code.
P-039.2 Tonnage Sort Payment Reduction Requirements
Purchaser must provide a plan in writing, acceptable to the State, to acquire third party Scribner mbf scaling information in order to be eligible for a payment reduction for a tonnage sort according to clauses P-036.2 or P-037.2. Logs delivered and accepted by the Purchaser prior to the State’s acceptance of Purchaser’s written payment reduction plan are not eligible for payment reduction. Failure of Purchaser to provide sample scale data in a timely, accurate and legible basis will void an approved sample scale plan. An approved payment reduction plan can be voided at the sole discretion of the State.
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For the purpose of tonnage sort payment reduction requests, preferred log lengths for tonnage sawlog sorts shall include the following plus any additional lengths identified in clause G-024.2: Species Type Preferred Lengths Conifer Sorts 16’, 20’, 24’, 26’, 32’, 40’ Hardwood Sorts 18’, 20’, 26’, 28’, 30’, 36’, 38’, 40’
P-040.2 Weighing and Scaling Costs
Purchaser agrees to pay for all weighing costs for logs delivered regardless if logs are purchased on a weight or scale basis. In addition, Purchaser agrees to pay for all scaling costs for logs delivered on a scale basis. Purchaser also agrees to pay for all costs associated with the transmission and reporting of scale or weight data.
P-045.2 Guarantee of Payment
Prior to the delivery of forest products and at a date determined by the State, Purchaser shall guarantee payment to the State for products delivered by posting with the State an approved payment security. If the Purchaser has purchased more than one sort, the payment securities may be consolidated for all the sorts. Acceptable payment security includes cash, certificate of deposit assignment, payment bond, savings account assignment, or irrevocable bank letter of credit. The amount of payment security shall be determined by the State. The amount of payment security shall represent at least 30 days value of forest product deliveries. Payment security for products delivered will be used to guarantee payment to the State for late or non-payments. If at any time the State determines that the security has become unsatisfactory or a demand is made against the payment security, the Purchaser agrees to increase the amount or replace the security with one acceptable to the state within 5 business days. Failure to increase the amount or replace the security is considered a breach of contract.
P-050.2 Billing and Payment Procedure for Forest Products Delivered
The State will compute and forward to Purchaser a billing statement of charges for forest products delivered during the billing period at the delivered rate shown in P-028.2 clause. After receipt of the billing statement, Purchaser’s payment must be received by the Department of Natural Resources on or before the due date shown on the billing statement. Purchaser agrees to make payment, payable to the Department of Natural Resources. Failure to pay on time for forest products delivered is considered a breach of contract. Included with the billing statement will be a summary report for the billing period compiled by the State or their log and load reporting service. The State will adjust final billings to account for any State approved payment reductions.
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P-080 Payment Account Refund
Advance payments made under P-045 or P-045.2 remaining on account above the value for the charges shall be returned to Purchaser within 30 days following the final report of charges. Refunds not made within the 30 day period will accrue interest at the interest rate, as established by WAC 332-100-030, computed on a daily basis until paid.
Section L: Log Definitions and Accountability
L-010.2 Forest Products Conveyed
Forest products conveyed are logs or parts of logs delivered meeting the sorting criteria defined by clauses G-022.2 and G-024.2 of this contract
L-014.2 Sorts Delivered to Incorrect Destination
Purchaser has agreed to purchase the sort as described in the G-022.2 clause. In the event a load from a different sort is delivered to Purchaser, Purchaser may reject the load. If Purchaser receives an incorrectly delivered load, they shall notify the State within 24 hours. If the Purchaser accepts the load, provisions in the P-035.2 or P-036.2 clause may apply.
L-071.2 Log and Load Reporting Service
This contract may at the States discretion, require the services of a State approved third party log and load reporting service. Purchaser shall ensure log volume measurement, weight, or scale and weight data for each load is received by the log and load reporting service within 1 business day of logs being measured or weighed. If during the term of this contract, the State discontinues use of the Log and Load Reporting Service, the State will notify the Purchaser in writing, and will approve an alternative log and load reporting process.
L-080 Scaling Rules
Determination of volume and grade of any forest products shall be conducted by a state approved third party scaling organization and in accordance with the Westside log scaling and grading rules and Scribner Volume Table, revised July 1, 1972, contained in the Northwest Log Rules Eastside and Westside Log Scaling Handbook (developed and produced by the Northwest Log Rules Advisory Group) and in effect on the date of confirmation of this contract. Special scaling specifications shall be noted on the State’s Brand Designation form which is hereby incorporated to this contract by reference.
L-110 State Approval of Log Scaling and Weighing Locations
Forest Product measurement and weighing facilities required by this contract must be approved by the State. Forest products sold under the contract which require log scaling shall be scaled, measured, or counted by a State approved third party log scaling organization. Forest products sold under the contract which require weighing shall be weighed at a location that meets Washington State Department of Agriculture approval.
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Prior to forest products being hauled, the Contract Administrator must authorize in writing the use of State approved measurement and/or weighing facilities that are at or en-route to final destinations. Forest products from this sale shall be measured or weighed at facilities, which are currently approved for use by the State and are currently authorized for this sale. The State reserves the right to verify load volume and weights with State employees or contractors at the State's own expense. The State reserves the right to revoke the authorization of previously approved measurement locations.
Section D: Damages
D-010 Liquidated Damages
The clauses in the DAMAGES section of this contract provide for payments by Purchaser to the State for certain breaches of the terms of this contract. These payments are agreed to as liquidated damages and not as penalties. They are reasonable estimates of anticipated harm to the State caused by Purchaser's breach. These liquidated damages provisions are agreed to by the State and Purchaser with the understanding of the difficulty of proving loss and the inconvenience or infeasibility of obtaining an adequate remedy. These liquidated damages provisions provide greater certainty for the Purchaser by allowing the Purchaser to better assess its responsibilities under the contract.
D-026.2 Damages for Delivery Interruptions and Load Non-Acceptance
a. Purchaser’s failure to accept delivery of forest products due to an extended delivery interruption exceeding the limits as described in the G-027.2 (c) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $1,000.00 per each day of breach, until breach is remedied.
b. Unless Purchaser and the State have made a prior agreement in writing,
Purchaser’s failure to accept at least the number of delivered loads as described in the G-027.2 (d) clause, results in substantial injury to the State. The Purchaser shall pay the State liquidated damages at a rate of $200 per each truck delivery not accepted, until breach is remedied.
D-027.2 Failure to Accept Forest Products Sold
Purchaser’s failure to accept all or part of the forest products sold in this agreement prior to expiration or completion of the contract results in substantial injury to the State. Except for reasons other than ‘Force Majeure’ (G-056.2), either section a. or b. below will apply as determined by the State.
a. When Purchaser’s refusal to accept forest products does not prevent further harvesting operations, or forest products can be re-sold to another buyer acceptable to the State, Purchaser shall be liable for and pay State for actual damages plus costs, as determined by the State associated with the administration and re-sale of forest products not accepted by Purchaser under the terms of this contract.
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b. When Purchaser’s refusal to accept forest products causes a stoppage of the
State’s harvesting operations and prevents the State from further harvest of the sale area, the actual damage to the State and associated costs are difficult to assess. The remaining value of all the forest products left in the sale area once the stoppage occurs is not readily ascertainable. Purchaser’s failure to perform disrupts the State’s management plans. Therefore, Purchaser agrees to pay the State as liquidated damages, a sum calculated using the following formula:
LD = (.35V-I) + C+ A - P Where: LD = Liquidated Damages V = The stumpage value remaining in the sale area at the date of work stoppage. This will be determined by multiplying the contract bid rate contained in the P-028.2 clause for all sorts originating in the sale area, by the State’s estimate of the remaining volume, less the cost of harvesting and delivery associated with each sort. I = Initial Deposit C = Costs associated with required harvesting services and road construction services prior to work stoppage but not amortized or paid. A = Administrative fee = $2,500.00 P = Advance payments received exceeding the value of logs delivered under this contract. The above formula reflects the Purchaser’s forfeiture of the initial deposit in accordance with clause P-010 by deducting the initial deposit from the amount owed. In no event shall the liquidated damages be less than zero. Interest on the liquidated damage is owed from the date of the work stoppage until final payment, calculated using the following formula: Interest = r x LD x N Where: r = daily equivalent of an annual interest at current interest rate as established by WAC 332-100-030. N = Number of days from work stoppage to time of payment
D-030.2 Inadequate Log Accountability
Failure to provide weighing and third party scaling information result in substantial injury to the State. The potential loss of accountability is not readily ascertainable. These contractual breaches result in an increase in the potential for the delivery of forest products for which the State receives inadequate payment and causes an increase in the State's administration costs associated with this contract. The actual costs of these breaches are difficult to assess.
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For these reasons, Purchaser’s payments for forest product delivery under this contract will be increased in the following amounts, as liquidated damages, to compensate the State for these breaches: $250.00 each time a load weight is not provided as required by the contract, and $250.00 each time load scale data is not determined and provided by a State approved third party scaling organization in accordance with this contract.
IN WITNESS WHEREOF, the Parties hereto have entered into this contract.
STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES ______________________ ________________________ Purchaser Eric Wisch Pacific Cascade Region Manager Date: ________________ Date: _________________ Address:
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CORPORATE ACKNOWLEDGEMENT (Required for both LLC and Inc. Entities)
STATE OF ____________________________)
) COUNTY OF ____________________________) On this _____________ day of _______________________, 20___, before me personally appeared ________________________________________________ __________________________________________________ to me known to be the ____________________________________________________________ of the corporation that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of the corporation, for the uses and purposes therein mentioned, and on oath stated that (he/she was) (they were) authorized to execute said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.
____________________________________ Notary Public in and for the State of ____________________________________ My appointment expires _______________
WASHINGTON STATE DEPARTMENT OF NATURAL RESOURCES
FOREST EXCISE TAX ROAD SUMMARY SHEET
Region:
Timber Sale Name:
Application Number:
EXCISE TAX APPLICABLE ACTIVITIES
Construction: linear feet Road to be constructed (optional and required) but not abandoned
Reconstruction: linear feet Road to be reconstructed (optional and required) but not abandoned
Abandonment: linear feet Abandonment of existing roads not reconstructed under the contract
Decommission: linear feet Road to be made undriveable but not officially abandoned.
Pre-Haul Maintenance: linear feet Existing road to receive maintenance work (specifically required by the contract) prior to haul
EXCISE TAX EXEMPT ACTIVITIES
Temporary Optional Construction: linear feet Optional roads to be constructed and then abandoned
Temporary Optional Reconstruction: linear feet Optional roads to be reconstructed and then abandoned
New Abandonment: linear feet Abandonment of roads constructed or reconstructed under the contract
All parties must make their own assessment of the taxable or non-taxable status of any work performed under the timber sale contact. The Department of Revenue bears responsibility for determining forest road excise taxes. The Department of Natural Resources developed this form to help estimate the impact of forest excise taxes. However, the information provided may not precisely calculate the actual amount of taxes due. The Department of Revenue is available for consultation by calling 1.800.548.8829. (Revised 6/13)
Page 1 of 3 Revised 03/15/2010 (FRCD)
PRE-CRUISE NARRATIVE
UNIT ACREAGES AND METHOD OF DETERMINATION: Unit
#
Harvest R/W
or RMZ WMZ
Legal Description (Enter only one legal
for each unit)
Sec/Twp/Rng
Gra
nt
or
Tru
st
Gro
ss P
rop
osa
l A
cres
Deductions from Gross Acres (No harvest acres)
Net
Har
vest
A
cres
Acreage Determination
(List method and error of
closure if applicable)
RM
Z/
WM
Z A
cres
Lea
ve T
ree
Acr
es
Exi
stin
g
Ro
ad A
cre
s
Oth
er
Acr
es
(des
crib
e)
1 36/T16N/R06W 03 07
96 27 6 - - 63 Choose an item.
2 31/T16N/R05W 01 03
43 17 2 -
- 25 Choose an item.
3 31,32/T16N/R05W 03 37 17 6 - - 14 Choose an item.
TOTAL ACRES
176 61 14 - - 102
HARVEST PLAN AND SPECIAL CONDITIONS: Unit # Harvest Prescription:
(Leave, take, paint color, tags, flagging etc.)
Special Management areas:
Other conditions (# leave trees, etc.)
1 Unit 1 is a VRH unit, the easterly boundary of this unit is bounded out with white
8 leave trees per acre (clumped & scattered)
Sale Name: Recluse Sorts Region: Pacific Cascade Agreement #: 30-096062 District: Independence Valley Contact Forester: Eric Weinke Phone / Location: 360-827-2031
County(s): Choose a county, Grays Harbor
Alternate Contact: Dave Sund Phone / Location: 360-577-2025
Other information: Click here to enter text.
Type of Sale: Log Sort (Contract harvest)
Harvest System: Ground based 40% Harvest System: Uphill Cable Click here to enter text. 60% Harvest System: Select harvest system Click here to enter text. Click here to enter percent
sale acres.
Page 2 of 3 Revised 03/15/2010 (FRCD)
“Timber Sale Boundary” tags and pink flagging. The north, west and south boundary are defined by the T-3000, T-Line and V-line. Also a portion of the east boundary is along a reprod plantation.
are bounded by yellow “Leave Tree Area” tags with pink flagging, individual leave trees are marked with a single band of blue paint.
2
Unit 2 is a VRH unit, the south and west boundaries are marked with white “Timber Sale Boundary” tags and pink flagging. The north boundary is defined by the V-Line. Also the east boundary is along a reprod plantation.
8 leave trees per acre (clumped & scattered) are bounded by yellow “Leave Tree Area” tags with pink flagging, individual leave trees are marked with a single band of blue paint.
3
Unit 3 is a VRH unit, the north boundary is marked with white “Timber Sale Boundary” tags and pink flagging. The west and east boundaries are along a reprod plantation. Also the south boundary is defined by the V-Line.
8 leave trees per acre (clumped & scattered) are bounded by yellow “Leave Tree Area” tags with pink flagging, individual leave trees are marked with a single band of blue paint.
OTHER PRE-CRUISE INFORMATION: Unit # Primary,secondary
Species / Estimated Volume (MBF)
Access information (Gates, locks, etc.)
Photos, traverse maps required
1 1826 mbf YES
2 1123 mbf PCP1-1 YES
3 387 mbf PCP1-1 YES
TOTAL MBF 3790 mbf REMARKS: Prepared By: Eric Weinke Title: Forester CC: Dave Sund
Page 3 of 3 Revised 03/15/2010 (FRCD)
Date: 05/09/2017
j:\forms\pre-sales\CRUISE-Narrative.doc Revised: 2/17/2000
Cruise Narrative
Sale Name: Recluse Sorts
Region: Pacific Cascade
App. #: 30-0
District: Lewis
Lead Cruiser: Dylan Worlock
Completion date: 7/13/2017
Other Cruisers: Alan Herrman, Kalvin Bailey
Unit acreage specifications:
Unit #
Cruised acres
Cruised acres agree with sale acres? Yes/No
If acres do not agree explain why.
1 63.1 YES
2 24 YES
3 13.6 YES
Total 100.7 YES
Unit cruise specifications:
Unit #
Sample type (VP, FP, ITS,100%)
Expansion factor (BAF, full/ half)
Sighting height (4.5 ft, 16 ft.)
Grid size (Plot spacing or % of area)
Plot ratio (Cru./Tally)
Total number of plots
1 VP
54.44 Conifer
40 Hardwood 4.5’ 208’ x 208’ 1/1 62
2 VP
54.44 Conifer
40 Hardwood 4.5’ 208’ x 208’ 1/1 24
3 VP 40 4.5’ 208’ x 208’ 1/1 14
Sale/Cruise Description:
Minor species cruise intensity: Cruised on appropriate plots. Minimum cruise spec: 40% 0f Form- Factor at 16 feet D.O.B or 5 inch Top, and merchantable top. Avg. ring count by sp: DF = 8 WH = NA SS = NA
Leave/take tree description:
Leave trees are clumped & scattered, bound by yellow “Leave Tree Area” tags with pink flagging, and individual leave trees are marked with a single band of blue paint.
Sort Description:
HA– Logs meeting the following criteria: Surface characteristics for a high quality A sort will have sound tight knots not to exceed 1 ½” in diameter, numbering not more than an average of one per foot of log length. May include logs with not more than two larger knots. Knots and knot indicators ½” in diameter and smaller shall not be a determining factor. Logs will have a growth ring count of 6 or more rings per inch in the outer third top end of the log. (min dia 8”.) HB – Logs meeting the following criteria: Surface characteristics for a B sort will have sound tight knots not to exceed 1 ½” in diameter. May include logs with not more than two larger knots up to 2 ½” in diameter. Logs will have a growth ring count of 6 or more rings per inch in the outer third to end of the log. (min dia 8”.) R – Logs meeting the following criteria: Gross diameter of 12 inches or greater, excessive knots greater than 2 ½ inches with recovery less than 65%
j:\forms\pre-sales\CRUISE-Narrative.doc Revised: 2/17/2000
of the net scale.
Field observations:
Recluse Sorts- is located about 5 miles west of Oakville, Wa. It is made of 3 VRH units, totaling 100.7 net harvest acres. The sale contains a net total of 3,336 MBF comprised of 86% Douglas fir, 7% red alder, 4% western hemlock, and 3% big-leaf maple. Units 2 and 3 are accessible by the V-line road, and unit 1 is partly accessible by the V-line and mostly accessible by the T-line road.
This log sort (contract harvest) sale is estimated to be harvested using 40% ground based and 60% uphill cable.
Areas of the sale, particularly unit 1, contain small root rot pockets consisting of primarily unmarketable and decayed timber (standing and downed) with a few trees that would produce marketable logs. Total defect percent is 6.2, slightly lower at 5.4% for Douglas fir. This is due mostly to crooks, sweep, and large branches/spike knots.
Leave tree clumps and individuals were not included in the cruise data.
The topography of the sale is broken and variable, including steep slopes and narrow draws.
Unit 1- 63.1 Acres. The unit contains a total net of 1,826 MBF, averaging 28,934 net bf/acre. The composition is 83% DF, 7% WH, 8% RA, and 2% BM. Total defect percent for unit 1 is 8.2, slightly lower at 7.7% for Douglas fir. The unit is patchy and variable, consisting of primarily domestic grade DF. Average DBH for Douglas fir is 25.2” with an average bole length of 94’.
Unit 2- 24 Acres. The unit contains a total net of 1,123 MBF, averaging 46,800 net bf/acre. Composition of the unit is 92% DF, 5% RA, and 3% BM. The high net bf/acre is due to the occurrence of a good amount of large diameter/tall fir. Average DBH for Douglas fir is 21” with an average bole length of 101’. Most of the timber is domestic grade with 25% of the fir being high quality “b” sort. The unit was fairly uniform throughout, with the exception of the draw in the southeast corner containing more red alder than the rest of the unit. The Douglas fir had a defect % of 2.8 due primarily to crooks and sweep, while maple and alder had defect percentages of 16.3 and 6.2 respectively, mostly due to crooks and splits.
Unit 3- 13.6 Acres. The unit contains a total net of 387 MBF, averaging 28,475 net bf/acre. Douglas fir makes up the majority at 84% of the net bf, followed by 8% maple, 7% alder, and 2% hemlock. The average DBH for Douglas fir is 18.7” with an average bole length of 84’. This unit is highly variable in terms of timber distribution and topography. It falls on 3 small ridges with steep draws between. Timber is patchy with few small holes containing little marketable timber. Defect percentages in the unit are as follows: 2.7% in DF, 11.3% in BM, 8% in RA, and 22.7% in WH. The Douglas fir is fairly clean with approximately 35% consisting in high-quality timber.
Grants: Prepared by: D.W Title: Timber Cruiser
Species, Sort Grade - Board Foot Volumes (Project)PSPCSTGRTC
Project:
Acres
RECLUSES
100.70
Page 1
Date 7/13/2017
Time 12:36:38PM
T16N R06W S36 Ty00U1 63.10
T16N R06W S36 Ty00U2 24.00
T16N R06W S36 Ty00U3 13.60
Net Bd. Ft. per AcreTotal
Ln
Log Scale Dia.
Percent of Net Board Foot Volume Average Log
Per
Logs
T
S
Spp Def% Gross NetNet MBF Ft /Acre
BdFt
%
So Gr
5-7 8-1112-15 16+ 12-20 36-9931-3521-30
Lf
CF/Bd
Ft
rt ad
Log Length
In
Dia
RA CU CU 120 100.0 6.3 17 0.00 5
RA D UT 6 148 15 .0 74 26 68 22 6.7 148 32 19 0.34 6
RA D 1S 7 172 16 7.5 100 57 321 .5 159 43 35 2.28 16
RA D 2S 34 868 78 11.1 100 15 151 5.1 772 85 31 1.34 12
RA D 3S 13 298 29 3.0 100 69 133 2.2 289 31 34 1.05 10
RA D 4S 31 753 71 5.8 100 50 73 9.7 709 50 33 0.69 8
RA D 4S 9 204 20 4.6 100 10 19 20 35 5.6 194 51 29 0.38 6
13 58RA Totals 7 11.4 2,563 2,272 229 46 34 7 5 2 35 27 63 36.0 0.68 8
DF CU CU 306 100.0 14.3 4 0.00 12
DF HA 2S 99 10 100 100 360 .3 99 40 1.93 15
DF HA 3S 91 9 100 100 160 .6 91 36 1.03 11
DF HB 2S 12 3,332 331 1.3 17 83 3 2 91 499 6.6 3,287 4 38 2.64 17
DF HB 3S 2 602 60 1.4 100 100 136 4.4 594 39 0.84 10
DF D SM 2 543 54 .6 100 75 596 .9 540 25 38 2.97 19
DF D 2S 66 20,108 1,903 6.0 21 79 0 98 504 37.5 18,900 1 39 2.66 17
DF D 3S 13 3,771 375 1.4 17 83 0 7 84 103 36.0 3,719 9 37 0.74 9
DF D 4S 3 687 69 .8 95 5 26 20 17 31 22.0 682 36 25 0.32 6
DF D UT 1 389 39 22 4 31 43 41 33 14 58 6.7 389 11 18 0.66 7
DF RO 3S 1 117 11 4.4 70 30 31 69 235 .5 112 37 1.80 13
5 4DF Totals 86 5.4 30,046 28,413 2,861 13 17 64 2 2 92 31 219 129.8 1.52 12
WH CU CU 66 100.0 2.8 8 0.00 8
WH D 2S 42 626 60 4.2 40 60 100 399 1.5 600 39 2.38 16
WH D 3S 40 582 57 3.1 15 85 90 99 5.7 564 10 38 0.83 8
WH D 4S 17 239 23 2.3 98 2 2 48 33 7.1 233 49 29 0.38 5
WH D UT 1 8 1 100 100 10 .8 8 13 0.34 5
23 12WH Totals 4 7.7 1,521 1,405 141 34 17 26 1 87 29 78 17.9 0.78 7
BM CU CU 69 100.0 6.6 9 0.00 9
BM D UT 10 106 11 15 55 30 60 52 2.0 106 40 19 0.79 8
BM D 2S 39 447 41 9.1 100 26 132 3.1 407 74 26 1.39 13
BM D 3S 24 276 25 9.0 100 8 61 124 2.0 251 31 33 1.30 11
BM D 4S 15 168 16 8.0 100 18 64 2.4 155 82 29 0.97 9
BM D 4S 12 134 12 9.1 100 9 10 27 40 3.1 122 53 28 0.61 6
13 59BM Totals 3 13.3 1,200 1,040 105 45 39 3 19 1 21 21 54 19.2 0.87 9
Totals 3,336 18 6 19 57 2 10 2 86 29 163 202.9 6.2 33,130 35,330 1.27 10
TC PSTATS
RECLUSESPROJECT
PLOTS TREESACRES
1
DATE
373 100 100.70
7/13/2017
RGE SC TRACT TYPETWP
16N 06 36 RECLUSES 00U1
16N06W 36 RECLUSES 00U2
PROJECT STATISTICSPAGE
CuFt BdFt
S W
16N 06W 36 RECLUSES 00U3
ESTIMATED PERCENT
TREES TOTAL SAMPLE
PER PLOT TREES TREESPLOTS TREES
TOTAL 100 373 3.7
CRUISE 60 209 3.5 8,330 2.5
DBH COUNT
REFOREST
COUNT 35 144 4.1
BLANKS 5
100 %
STAND SUMMARY
SAMPLE TREES AVG BOLE REL BASAL GROSS GROSS NETNET
TREES /ACRE DBH LEN DEN AREA BF/AC BF/AC CF/AC CF/AC
139 46.8 22.9 95 133.9 30,046 6,131DOUG FIR 28,413 6,199 28.0
25 9.1 17.4 51 15.1 1,200 352BL MAPLE 1,040 370 3.6
26 15.6 15.8 69 21.2 2,563 659R ALDER 2,272 690 5.3
19 11.2 14.9 57 13.6 1,521 400WHEMLOCK 1,405 414 3.5
209 82.7 20.2 80 183.7 7,674 35,330 33,130 7,543TOTAL
CONFIDENCE LIMITS OF THE SAMPLE
TIMES OUT OF 100 THE VOLUME WILL BE WITHIN THE SAMPLE ERROR 68.1
40.9
COEFFSAMPLE TREES - BF
SD:
INF. POP.# OF TREES REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL
1.0
68.1
88.6 7.5 1,123 1,215 1,306DOUG FIR
69.1 14.1 119 138 157BL MAPLE
56.1 11.2 158 178 198R ALDER
125.4 29.6 210 298 387WHEMLOCK
8.0 802 872 942 533 272 133TOTAL 115.5
COEFFSAMPLE TREES - CF
SD:
INF. POP.# OF TREES REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL
1.0
68.1
78.7 6.7 233 250 266DOUG FIR
58.6 12.0 42 47 53BL MAPLE
50.2 10.0 46 51 56R ALDER
103.4 24.4 58 76 95WHEMLOCK
7.0 172 185 198 406 207 101TOTAL 100.8
COEFFTREES/ACRE
SD:
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL
1.0
68.1
107.6 10.7 42 47 52DOUG FIR
269.8 27.0 7 9 12BL MAPLE
187.9 18.8 13 16 19R ALDER
284.8 28.5 8 11 14WHEMLOCK
6.7 77 83 88 179 91 45TOTAL 66.9
COEFFBASAL AREA/ACRE
SD:
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL
1.0
68.1
82.7 8.3 123 134 145DOUG FIR
291.9 29.2 11 15 19BL MAPLE
186.9 18.7 17 21 25R ALDER
294.5 29.4 10 14 18WHEMLOCK
5.6 173 184 194 126 65 32TOTAL 56.3
COEFFNET BF/ACRE
SD:
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL
1.0
68.1
84.8 8.5 26,006 28,413 30,821DOUG FIR
292.9 29.3 736 1,040 1,344BL MAPLE
187.7 18.8 1,846 2,272 2,698R ALDER
TC PSTATS
RECLUSESPROJECT
PLOTS TREESACRES
2
DATE
373 100 100.70
7/13/2017
RGE SC TRACT TYPETWP
16N 06 36 RECLUSES 00U1
16N06W 36 RECLUSES 00U2
PROJECT STATISTICSPAGE
CuFt BdFt
S W
16N 06W 36 RECLUSES 00U3
NET BF/ACRE
SD: 1.00
COEFF # OF PLOTS REQ. INF. POP.
VAR. S.E.% LOW AVG HIGH 5 7 10
CL 68.1
310.7 31.0 969 1,405 1,841WHEMLOCK
6.8 30,878 33,130 35,382 185 94 46TOTAL 68.0
COEFFNET CUFT FT/ACRE
SD:
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL
1.0
68.1
84.3 8.4 5,615 6,131 6,648DOUG FIR
290.2 29.0 250 352 454BL MAPLE
185.7 18.6 537 659 781R ALDER
313.7 31.3 275 400 526WHEMLOCK
6.3 7,065 7,543 8,021 161 82 40TOTAL 63.4
COEFFV_BAR/ACRE
SD:
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL
1.0
68.1
194 212 230DOUG FIR
247.1 24.7 49 69 89BL MAPLE
96.0 9.6 87 107 127R ALDER
288.2 28.8 71 103 135WHEMLOCK
6.5 168 180 193 170 87 43TOTAL 65.3
Species, Sort Grade - Board Foot Volumes (Type)TSPCSTGRT
RECLUSESProject:
1Page
7/13/2017Date
12:36:39PMTime
T16N R06W S36 T00U1T16N R06W S36 T00U1
PlotsAcresTypeTractSecRgeTwp
116 62 63.1000U1RECLUSES3606W16N
CuFt BdFt
S W
Sample Trees
Net Bd. Ft. per AcreTotal
Ln Dia Bd Log Length
Percent Net Board Foot Volume Average Log
Per
Logs
T
S
Spp Def% Gross Net Net MBF Ft In Ft /AcreBdFt
%
rt ad
Grade
5-7 16+ 12-20 21-30 31-35 36-998-11 12-15
Log Scale Dia.
Lf
CF/So Gr
DF CU CU 466 100.0 6 13.5 0.00 15
DF HB 2S 1 249 15 2.1 100 100 40 920 .3 244 4.41 23
DF HB 3S 1 291 18 100 100 38 112 2.6 291 0.77 9
DF DM 2S 82 21,072 1,238 6.9 18 82 0 0 99 39 523 37.5 19,618 2.79 18
DF DM 3S 11 2,777 171 2.4 5 95 8 2 89 37 116 23.3 2,709 0.86 9
DF DM 4S 2 359 23 92 8 39 32 17 13 23 31 11.6 359 0.38 6
DF DM UT 2 592 37 19 4 33 45 38 12 35 15 20 76 7.7 592 0.77 8
DF RO 3S 1 102 6 5.1 100 56 44 36 172 .6 97 1.48 12
DF Totals 83 7.7
25,908 23,910 1,509 2 12 16 69 2 2 95 30 246
97.1 2 1.76 13
WH CU CU 76 100.0 8 4.4 0.00 7
WH DM 2S 39 871 53 3.9 46 54 100 39 382 2.2 837 2.35 16
WH DM 3S 42 918 56 3.2 15 85 9 91 38 99 9.0 889 0.83 8
WH DM 4S 18 381 23 2.3 98 2 2 49 48 29 33 11.3 372 0.38 5
WH DM UT 1 13 1 100 100 13 10 1.3 13 0.34 5
WH Totals 7 6.5
2,259 2,111 133 24 36 18 22 1 12 87 29 75
28.2 0.76 7
RA CU CU 156 100.0 18 7.6 0.00 5
RA DM UT 5 128 8 .0 52 48 82 18 16 22 5.8 128 0.36 6
RA DM 1S 11 275 16 7.5 100 43 57 35 321 .8 254 2.28 16
RA DM 2S 42 1,086 60 12.5 100 100 30 146 6.5 950 1.33 12
RA DM 3S 7 159 9 9.1 100 100 30 100 1.4 145 0.89 10
RA DM 4S 26 639 38 6.2 100 80 20 31 66 9.1 599 0.65 8
RA DM 4S 9 196 12 100 6 62 32 31 39 5.0 196 0.42 6
RA Totals 8 13.9
2,638 2,272 143 12 35 42 11 5 81 14 26 63
36.2 0.69 8
BM CU CU 35 100.0 5 5.0 0.00 10
BM DM UT 18 117 7 9 47 44 53 47 18 83 1.4 117 1.21 10
BM DM 2S 25 188 10 12.5 100 42 58 25 116 1.4 164 1.48 12
BM DM 3S 39 264 15 7.1 100 100 40 155 1.6 246 1.44 11
BM DM 4S 10 68 4 100 100 24 60 1.1 68 0.83 9
BM DM 4S 8 57 3 20.0 100 100 28 40 1.1 45 0.67 7
BM Totals 2 12.1
728 640 40 9 58 26 8 20 41 38 18 55
11.6 1.05 10
1,826 5 17 18 60 2 10 1 87 28 167 173.1Type Totals 8.2 31,533 28,934 1.36 11
Species, Sort Grade - Board Foot Volumes (Type)TSPCSTGRT
RECLUSESProject:
1Page
7/13/2017Date
12:36:39PMTime
T16N R06W S36 T00U2T16N R06W S36 T00U2
PlotsAcresTypeTractSecRgeTwp
60 24 24.0000U2RECLUSES3606W16N
CuFt BdFt
S W
Sample Trees
Net Bd. Ft. per AcreTotal
Ln Dia Bd Log Length
Percent Net Board Foot Volume Average Log
Per
Logs
T
S
Spp Def% Gross Net Net MBF Ft In Ft /AcreBdFt
%
rt ad
Grade
5-7 16+ 12-20 21-30 31-35 36-998-11 12-15
Log Scale Dia.
Lf
CF/So Gr
DF CU CU 24 100.0 3 10.7 0.00 6
DF HB 2S 21 9,429 224 .8 12 88 4 6 90 38 547 17.1 9,351 2.86 18
DF HB 3S 4 1,593 37 2.1 100 100 40 165 9.4 1,559 0.95 11
DF DM SM 4 1,772 42 .8 100 33 67 39 563 3.1 1,757 2.81 19
DF DM 2S 53 23,544 540 4.5 28 72 0 4 96 39 459 49.0 22,490 2.42 16
DF DM 3S 15 6,618 158 .2 32 68 1 9 11 79 37 91 72.6 6,603 0.63 8
DF DM 4S 2 1,003 24 97 3 28 59 14 23 29 35.0 1,003 0.31 5
DF DM UT 1 77 2 100 100 11 10 7.7 77 0.17 5
DF Totals 92 2.8
44,061 42,840 1,028 7 14 17 61 2 8 89 33 209
204.6 2 1.37 11
RA CU CU 3.3 0.00 5
RA DM UT 8 203 5 100 71 29 20 20 10.1 203 0.27 5
RA DM 2S 10 295 6 16.7 100 100 30 150 1.6 246 1.55 13
RA DM 3S 13 340 8 100 100 40 150 2.3 340 1.16 10
RA DM 4S 56 1,478 34 5.2 100 17 83 37 85 16.6 1,401 0.75 9
RA DM 4S 13 340 7 11.5 100 17 31 52 27 29 10.3 301 0.33 5
RA Totals 5 6.2
2,655 2,489 60 20 70 10 8 25 61 28 56
44.3 6 0.63 7
BM CU CU 136 100.0 22 5.8 0.00 5
BM DM UT 2 39 1 100 100 14 20 1.9 39 0.45 8
BM DM 2S 58 951 20 10.5 100 30 70 25 131 6.5 851 1.27 13
BM DM 3S 13 213 5 9.1 100 100 30 100 1.9 194 0.89 10
BM DM 4S 16 252 6 7.7 100 100 30 60 3.9 233 0.85 9
BM DM 4S 11 165 4 6.6 100 100 28 37 4.1 154 0.54 7
BM Totals 3 16.3
1,756 1,470 35 10 32 58 20 80 25 61
24.2 0.71 9
1,123 8 18 18 56 3 11 2 84 31 171 273.1Type Totals 3.4 48,472 46,800 1.21 10
Species, Sort Grade - Board Foot Volumes (Type)TSPCSTGRT
RECLUSESProject:
1Page
7/13/2017Date
12:36:39PMTime
T16N R06W S36 T00U3T16N R06W S36 T00U3
PlotsAcresTypeTractSecRgeTwp
33 14 13.6000U3RECLUSES3606W16N
CuFt BdFt
S W
Sample Trees
Net Bd. Ft. per AcreTotal
Ln Dia Bd Log Length
Percent Net Board Foot Volume Average Log
Per
Logs
T
S
Spp Def% Gross Net Net MBF Ft In Ft /AcreBdFt
%
rt ad
Grade
5-7 16+ 12-20 21-30 31-35 36-998-11 12-15
Log Scale Dia.
Lf
CF/So Gr
DF CU CU 65 100.0 2 24.6 0.00 12
DF HA 2S 3 731 10 100 100 40 360 2.0 731 1.93 15
DF HA 3S 2 671 9 100 100 36 160 4.2 671 1.03 11
DF HB 2S 29 6,878 91 2.5 32 68 9 91 38 387 17.3 6,708 2.13 16
DF HB 3S 1 297 4 100 100 36 80 3.7 297 0.50 8
DF DM SM 4 895 12 100 100 36 750 1.2 895 3.77 22
DF DM 2S 38 9,568 126 3.5 28 72 100 40 541 17.1 9,233 2.60 18
DF DM 3S 14 3,361 45 1.2 7 93 10 11 79 37 108 30.7 3,319 0.78 9
DF DM 4S 7 1,652 22 2.5 97 3 11 16 47 27 30 34 47.5 1,611 0.29 5
DF RO 3S 2 394 5 3.5 35 65 100 39 412 .9 380 2.64 16
DF Totals 84 2.7
24,512 23,845 324 8 17 24 52 1 2 90 30 160
149.3 7 1.16 10
BM CU CU 107 100.0 8 15.3 0.00 10
BM DM UT 8 171 2 .0 37 63 63 37 23 33 5.2 171 0.50 7
BM DM 2S 35 765 10 2.2 100 100 30 156 4.8 748 1.51 12
BM DM 3S 17 441 5 14.3 100 39 61 25 90 4.2 378 1.31 11
BM DM 4S 20 484 6 13.6 100 50 50 34 73 5.7 418 1.20 9
BM DM 4S 20 439 6 4.3 100 20 22 58 29 42 10.1 420 0.63 6
BM Totals 8 11.3
2,407 2,136 29 23 42 35 16 59 21 21 47
45.3 4 0.85 9
RA CU CU 163 100.0 27 5.4 0.00 5
RA DM UT 7 146 2 100 100 30 30 4.9 146 0.46 5
RA DM 2S 46 873 12 100 100 36 180 4.9 873 1.28 12
RA DM 3S 47 870 12 100 100 36 160 5.4 870 1.12 11
RA Totals 7 8.0
2,052 1,889 26 8 46 46 8 92 32 92
20.6 0.77 8
WH CU CU 140 100.0 8 .5 0.00 28
WH DM 2S 92 596 8 6.5 100 100 40 580 1.0 558 2.73 19
WH DM 3S 8 48 1 100 100 28 100 .5 48 0.97 10
WH Totals 2 22.7
784 606 8 8 92 8 92 29 315
1.9 2.12 19
387 9 21 26 45 2 7 6 85 28 131 217.2Type Totals 4.3 29,755 28,475 1.08 10
TC TSTATS
RECLUSES
TWP RGE SECT TYPE
PROJECT
PLOTS TREESACRES
PAGE
DATE
202 62 63.1000U1RECLUSES3606W16N
7/13/2017
1STATISTICS
CuFt BdFtTRACT
S W
ESTIMATED PERCENT
TREES TOTAL SAMPLE
PER PLOT TREES TREESPLOTS TREES
TOTAL 62 202 3.3
CRUISE 38 116 3.1 4,491 2.6
DBH COUNT
REFOREST
COUNT 20 73 3.7
BLANKS 4
100 %
STAND SUMMARY
SAMPLE TREES AVG BOLE REL BASAL GROSS GROSS NETNET
TREES /ACRE DBH LEN DEN AREA BF/AC BF/AC CF/AC CF/AC
73 33.2 25.2 94 115.0 25,908 5,214DOUG FIR 23,910 5,317 22.9
18 17.8 14.7 57 21.1 2,259 613WHEMLOCK 2,111 631 5.5
17 14.9 15.9 71 20.6 2,638 645R ALDER 2,272 682 5.2
8 5.3 18.4 43 9.7 728 219BL MAPLE 640 227 2.3
116 71.2 20.7 76 166.4 6,857 31,533 28,934 6,691TOTAL
CONFIDENCE LIMITS OF THE SAMPLE
TIMES OUT OF 100 THE VOLUME WILL BE WITHIN THE SAMPLE ERROR 68.1
36.6
COEFF
SAMPLE TREES - BF
SD: 1.0
INF. POP.# OF TREES REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
66.5 7.8 1,127 1,223 1,318DOUG FIR
123.1 29.8 172 245 318WHEMLOCK
58.9 14.7 169 198 227R ALDER
77.3 29.2 120 170 220BL MAPLE
9.0 769 845 921 375 191 94TOTAL 96.9
COEFF
SAMPLE TREES - CF
SD: 1.0
INF. POP.# OF TREES REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
60.1 7.1 240 258 276DOUG FIR
103.5 25.1 50 67 83WHEMLOCK
54.0 13.5 48 55 63R ALDER
73.0 27.5 43 59 76BL MAPLE
8.0 170 184 199 295 151 74TOTAL 86.0
COEFF
TREES/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
101.9 12.9 29 33 38DOUG FIR
217.6 27.6 13 18 23WHEMLOCK
206.3 26.2 11 15 19R ALDER
390.9 49.6 3 5 8BL MAPLE
9.0 65 71 78 202 103 50TOTAL 71.1
COEFF
BASAL AREA/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
86.2 10.9 102 115 128DOUG FIR
230.8 29.3 15 21 27WHEMLOCK
200.7 25.5 15 21 26R ALDER
407.8 51.7 5 10 15BL MAPLE
7.3 154 166 179 133 68 33TOTAL 57.7
COEFF
NET BF/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
88.6 11.2 21,221 23,910 26,600DOUG FIR
249.9 31.7 1,442 2,111 2,781WHEMLOCK
200.6 25.5 1,694 2,272 2,850R ALDER
424.7 53.9 295 640 985BL MAPLE
8.7 26,416 28,934 31,451 188 96 47TOTAL 68.6
TC TSTATS
RECLUSES
TWP RGE SECT TYPE
PROJECT
PLOTS TREESACRES
PAGE
DATE
202 62 63.1000U1RECLUSES3606W16N
7/13/2017
2STATISTICS
CuFt BdFtTRACT
S W
NET CUFT FT/ACRE
SD: 1.0
COEFF # OF PLOTS REQ. INF. POP.
VAR. S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
COEFF
NET CUFT FT/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
88.4 11.2 4,630 5,214 5,799DOUG FIR
249.4 31.6 419 613 807WHEMLOCK
199.2 25.3 482 645 808R ALDER
414.7 52.6 104 219 334BL MAPLE
8.2 6,144 6,691 7,238 166 85 41TOTAL 64.4
COEFF
V-BAR/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
184 208 231DOUG FIR
231.7 29.4 68 100 132WHEMLOCK
106.4 13.5 82 110 138R ALDER
332.2 42.2 30 66 102BL MAPLE
23.7 159 174 189 1,388 708 347TOTAL 186.5
TC TSTATS
RECLUSES
TWP RGE SECT TYPE
PROJECT
PLOTS TREESACRES
PAGE
DATE
110 24 24.0000U2RECLUSES3606W16N
7/13/2017
1STATISTICS
CuFt BdFtTRACT
S W
ESTIMATED PERCENT
TREES TOTAL SAMPLE
PER PLOT TREES TREESPLOTS TREES
TOTAL 24 110 4.6
CRUISE 14 60 4.3 2,575 2.3
DBH COUNT
REFOREST
COUNT 10 45 4.5
BLANKS
100 %
STAND SUMMARY
SAMPLE TREES AVG BOLE REL BASAL GROSS GROSS NETNET
TREES /ACRE DBH LEN DEN AREA BF/AC BF/AC CF/AC CF/AC
46 74.2 21.8 101 192.8 44,061 9,120DOUG FIR 42,840 9,126 41.3
7 20.5 15.0 67 25.0 2,655 782R ALDER 2,489 782 6.5
7 12.6 15.5 58 16.7 1,756 432BL MAPLE 1,470 465 4.2
60 107.3 20.0 90 234.5 10,373 48,472 46,800 10,334TOTAL
CONFIDENCE LIMITS OF THE SAMPLE
TIMES OUT OF 100 THE VOLUME WILL BE WITHIN THE SAMPLE ERROR 68.1
52.4
COEFF
SAMPLE TREES - BF
SD: 1.0
INF. POP.# OF TREES REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
107.0 15.8 1,085 1,288 1,491DOUG FIR
26.3 10.7 115 129 142R ALDER
66.8 27.2 101 139 176BL MAPLE
16.5 851 1,019 1,187 651 332 163TOTAL 127.7
COEFF
SAMPLE TREES - CF
SD: 1.0
INF. POP.# OF TREES REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
95.4 14.1 221 257 293DOUG FIR
31.9 13.0 36 41 46R ALDER
49.6 20.2 32 40 48BL MAPLE
14.6 176 206 236 510 260 128TOTAL 113.0
COEFF
TREES/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
96.1 20.0 59 74 89DOUG FIR
141.7 29.5 14 20 27R ALDER
210.0 43.8 7 13 18BL MAPLE
11.9 95 107 120 135 69 34TOTAL 56.9
COEFF
BASAL AREA/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
67.1 14.0 166 193 220DOUG FIR
147.8 30.8 17 25 33R ALDER
222.9 46.4 9 17 24BL MAPLE
9.5 212 234 257 86 44 22TOTAL 45.5
COEFF
NET BF/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
65.8 13.7 36,969 42,840 48,711DOUG FIR
145.0 30.2 1,737 2,489 3,241R ALDER
216.6 45.1 807 1,470 2,134BL MAPLE
11.4 41,482 46,800 52,118 124 63 31TOTAL 54.5
COEFF
NET CUFT FT/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
65.6 13.7 7,874 9,120 10,367DOUG FIR
146.7 30.6 543 782 1,021R ALDER
222.8 46.4 231 432 632BL MAPLE
10.6 9,243 10,334 11,425 107 55 27TOTAL 50.7
TC TSTATS
RECLUSES
TWP RGE SECT TYPE
PROJECT
PLOTS TREESACRES
PAGE
DATE
110 24 24.0000U2RECLUSES3606W16N
7/13/2017
2STATISTICS
CuFt BdFtTRACT
S W
V-BAR/ACRE
SD: 1.0
COEFF # OF PLOTS REQ. INF. POP.
VAR. S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
COEFF
V-BAR/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
192 222 253DOUG FIR
73.9 15.4 69 100 130R ALDER
185.5 38.6 48 88 128BL MAPLE
38.4 177 200 222 1,413 721 353TOTAL 184.1
TC TSTATS
RECLUSES
TWP RGE SECT TYPE
PROJECT
PLOTS TREESACRES
PAGE
DATE
61 14 13.6000U3RECLUSES3606W16N
7/13/2017
1STATISTICS
CuFt BdFtTRACT
S W
ESTIMATED PERCENT
TREES TOTAL SAMPLE
PER PLOT TREES TREESPLOTS TREES
TOTAL 14 61 4.4
CRUISE 8 33 4.1 1,263 2.6
DBH COUNT
REFOREST
COUNT 5 26 5.2
BLANKS 1
100 %
STAND SUMMARY
SAMPLE TREES AVG BOLE REL BASAL GROSS GROSS NETNET
TREES /ACRE DBH LEN DEN AREA BF/AC BF/AC CF/AC CF/AC
20 61.5 18.7 84 117.1 24,512 5,112DOUG FIR 23,845 5,126 27.1
10 20.7 18.2 54 37.1 2,407 831BL MAPLE 2,136 869 8.7
2 10.3 17.5 66 17.1 2,052 509R ALDER 1,889 567 4.1
1 .5 33.0 119 2.9 784 118WHEMLOCK 606 140 0.5
33 92.9 18.5 76 174.3 6,702 29,755 28,475 6,570TOTAL
CONFIDENCE LIMITS OF THE SAMPLE
TIMES OUT OF 100 THE VOLUME WILL BE WITHIN THE SAMPLE ERROR 68.1
40.5
COEFF
SAMPLE TREES - BF
SD: 1.0
INF. POP.# OF TREES REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
113.2 26.0 752 1,016 1,280DOUG FIR
52.0 17.3 93 112 131BL MAPLE
19.1 17.9 152 185 218R ALDER
WHEMLOCK
24.7 527 699 872 803 410 201TOTAL 141.8
COEFF
SAMPLE TREES - CF
SD: 1.0
INF. POP.# OF TREES REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
102.7 23.5 155 203 251DOUG FIR
26.8 8.9 39 43 47BL MAPLE
27.6 25.8 37 50 63R ALDER
WHEMLOCK
21.3 115 147 178 597 304 149TOTAL 122.2
COEFF
TREES/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
86.0 23.8 47 61 76DOUG FIR
167.6 46.4 11 21 30BL MAPLE
218.8 60.6 4 10 17R ALDER
374.2 103.6 0 1WHEMLOCK
16.6 77 93 108 154 79 39TOTAL 59.9
COEFF
BASAL AREA/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
84.1 23.3 90 117 144DOUG FIR
181.5 50.3 18 37 56BL MAPLE
218.8 60.6 7 17 28R ALDER
374.2 103.6 3 6WHEMLOCK
17.7 143 174 205 176 90 44TOTAL 64.0
COEFF
NET BF/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
86.6 24.0 18,125 23,845 29,564DOUG FIR
190.0 52.6 1,011 2,136 3,260BL MAPLE
218.8 60.6 744 1,889 3,033R ALDER
374.2 103.6 606 1,234WHEMLOCK
20.4 22,662 28,475 34,289 233 119 58TOTAL 73.7
TC TSTATS
RECLUSES
TWP RGE SECT TYPE
PROJECT
PLOTS TREESACRES
PAGE
DATE
61 14 13.6000U3RECLUSES3606W16N
7/13/2017
2STATISTICS
CuFt BdFtTRACT
S W
NET CUFT FT/ACRE
SD: 1.0
COEFF # OF PLOTS REQ. INF. POP.
VAR. S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
COEFF
NET CUFT FT/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
86.4 23.9 3,888 5,112 6,336DOUG FIR
180.2 49.9 416 831 1,246BL MAPLE
218.8 60.6 200 509 817R ALDER
374.2 103.6 118 241WHEMLOCK
19.3 5,305 6,570 7,835 208 106 52TOTAL 69.5
COEFF
V-BAR/ACRE
SD: 1.0
INF. POP.# OF PLOTS REQ.
VAR.% S.E.% LOW AVG HIGH 5 7 10
CL: 68.1
%
155 204 252DOUG FIR
177.9 49.3 27 58 88BL MAPLE
77.3 21.4 43 110 177R ALDER
374.2 103.6 212 432WHEMLOCK
62.9 130 163 197 2,218 1,132 555TOTAL 227.2
Species Summary - Trees, Logs, Tons, CCF, MBFPSPCTLTCMTC
1
7/13/2017Date:
RECLUSESProject
12:36:43PMTime
Acres 100.70
T16N R06W S36 Ty00U 63.10
T16N R06W S36 Ty00U 24.00
T16N R06W S36 Ty00U 13.60
Page No
SpeciesT
Logs
S
Total
Gross Net Gross
Total MBF
Net
Total CCFTotal
Trees
Total
Tons Tree Log
Net Cubic Ft/
LF
CF/
DOUG FIR 11,627 6,243 6,174 3,026 2,861 4,712 17,791 1.56 131.02 53.10
R ALDER 2,992 695 664 258 229 1,572 1,912 0.75 42.21 22.18
WHEMLOCK 1,522 417 403 153 141 1,129 1,334 0.83 35.70 26.47
BL MAPLE 1,270 373 355 121 105 916 988 1.02 38.72 27.92
17,412 3,558 3,336Totals 7,728 7,596 8,330 22,026 1.34 91.19 43.62
Wood Type
CF/
LF
Net Cubic Ft/
LogTreeTons
Total
Trees
Total Total CCF
Net
Total MBF
GrossNetGross
Total
LogsSpecies
1.48 50.02 112.60 3,003C 19,125 5,841 13,150 6,659 3,179 6,577
0.82 23.89 40.93 334H 2,900 2,488 4,262 1,068 379 1,018
17,412 3,558 3,336Totals 7,728 7,596 8,330 22,026 1.34 91.19 43.62
PLOGSTVB
Log Stock Table - MBFTC
Project: RECLUSES
Page 1
Date 7/13/2017
Time 12:36:40PM
Acres 100.70
T16N R06W S36 Ty00U1 63.10
T16N R06W S36 Ty00U2 24.00
T16N R06W S36 Ty00U3 13.60
T
S
Spp Len
Log Gross
MBF
Def
% MBF Spc
%
rt de
So Gr Net Volume by Scaling Diameter in Inches
2-3 4-5 6-7 8-9 10-11 12-13 14-15 16-19 20-23 24-29 30-39 40+MBF
Net
RA DM UT 11 1 1 .5
1
RA DM UT 13 1 1 .3 1
RA DM UT 17 1 1 .4 1
RA DM UT 19 2 2 .8 2
RA DM UT 20 6 6 2.4 2 4
RA DM UT 21 1 1 .6 1
RA DM UT 23 1 1 .6 1
RA DM UT 30 2 2 .9 2
RA DM 1S 30 8 13.3 7 3.0
7
RA DM 1S 40 9 2.5 9 4.0 9
RA DM 2S 30 76 12.9 66 28.8
660
RA DM 2S 36 12 12 5.2 12
RA DM 3S 30 10 9.1 9 4.0 9
RA DM 3S 36 12 12 5.2 12
RA DM 3S 40 8 8 3.6 8
RA DM 4S 30 38 6.5 36 15.7 36
RA DM 4S 36 13 13 5.7 13
RA DM 4S 40 24 7.7 22 9.8 22
RA DM 4S 17 1 1 .3 1
RA DM 4S 18 1 1 .5 1
RA DM 4S 25 2 33.3 1 .5 1
RA DM 4S 27 2 2 .8 2
RA DM 4S 30 7 5.3 7 3.1 7
RA DM 4S 33 4 4 1.6 4
RA DM 4S 40 4 4 1.7 4
RA 258 11.4 229 6.9 22 8 75 29 72 16Totals 6
DF HA 2S 40 10 10 .3
10
DF HA 3S 36 9 9 .3 9
DF HB 2S 20 9 9 .3
9
DF HB 2S 30 14 14 .5 14
DF HB 2S 34 9 5.9 8 .3 8
DF HB 2S 36 23 2.3 22 .8 22
DF HB 2S 40 281 1.2 277 9.7 124 60 29 173017
PLOGSTVB
Log Stock Table - MBFTC
Project: RECLUSES
Page 2
Date 7/13/2017
Time 12:36:40PM
Acres 100.70
T16N R06W S36 Ty00U1 63.10
T16N R06W S36 Ty00U2 24.00
T16N R06W S36 Ty00U3 13.60
T
S
Spp Len
Log Gross
MBF
Def
% MBF Spc
%
rt de
So Gr Net Volume by Scaling Diameter in Inches
2-3 4-5 6-7 8-9 10-11 12-13 14-15 16-19 20-23 24-29 30-39 40+MBF
Net
DF HB 3S 36 14 14 .5 4 10
DF HB 3S 40 47 1.8 46 1.6 8 37
DF DM SM 30 14 14 .5
14
DF DM SM 36 12 12 .4 12
DF DM SM 40 29 1.2 28 1.0 28
DF DM 2S 16 3 3 .1
12
DF DM 2S 17 1 1 .0 1
DF DM 2S 23 1 1 .1 1
DF DM 2S 25 3 3 .1 21
DF DM 2S 30 22 22 .8 2 937
DF DM 2S 36 92 5.5 87 3.0 312827
DF DM 2S 38 2 2 .1 2
DF DM 2S 40 1,900 6.1 1,784 62.3 487 406 344 198 16189144
DF DM 3S 19 1 1 .0 1
DF DM 3S 21 1 1 .0 1
DF DM 3S 22 1 25.0 1 .0 1
DF DM 3S 24 3 11.1 3 .1 3
DF DM 3S 25 3 3 .1 3
DF DM 3S 27 2 2 .1 2
DF DM 3S 28 6 6 .2 2 1 3
DF DM 3S 29 6 6 .2 2 3 2
DF DM 3S 30 13 13 .5 1 9 3
DF DM 3S 31 3 3 .1 3
DF DM 3S 32 8 8 .3 8
DF DM 3S 33 6 6 .2 2 2 2
DF DM 3S 34 4 4 .1 2 2
DF DM 3S 35 5 5 .2 2 4
DF DM 3S 36 68 2.3 66 2.3 4 14 48
DF DM 3S 37 3 3 .1 2 1
DF DM 3S 38 5 5 .2 2 2
DF DM 3S 39 11 1.7 10 .4 2 4 5
DF DM 3S 40 231 1.2 228 8.0 46 57 126
DF DM 4S 15 4 4 .2
4
DF DM 4S 16 3 3 .1 1 1 1
DF DM 4S 17 5 5 .2 3 2
PLOGSTVB
Log Stock Table - MBFTC
Project: RECLUSES
Page 3
Date 7/13/2017
Time 12:36:40PM
Acres 100.70
T16N R06W S36 Ty00U1 63.10
T16N R06W S36 Ty00U2 24.00
T16N R06W S36 Ty00U3 13.60
T
S
Spp Len
Log Gross
MBF
Def
% MBF Spc
%
rt de
So Gr Net Volume by Scaling Diameter in Inches
2-3 4-5 6-7 8-9 10-11 12-13 14-15 16-19 20-23 24-29 30-39 40+MBF
Net
DF DM 4S 18 3 3 .1 2 1
DF DM 4S 19 4 4 .1 1 1 1
DF DM 4S 21 3 3 .1 2 1
DF DM 4S 22 5 5 .2 1 4
DF DM 4S 23 1 1 .0 1
DF DM 4S 24 4 4 .1 4
DF DM 4S 25 1 1 .0 1
DF DM 4S 26 2 2 .1 2
DF DM 4S 27 1 1 .0 1
DF DM 4S 28 5 5 .2 5
DF DM 4S 30 2 2 .1 2
DF DM 4S 31 3 3 .1 2 1
DF DM 4S 33 2 25.0 2 .1 2
DF DM 4S 34 7 7 .3 7
DF DM 4S 35 2 2 .1 2
DF DM 4S 36 3 3 .1 3
DF DM 4S 38 6 6 .2 6
DF DM 4S 40 3 3 .1 3
DF DM UT 11 2 2 .1
2
DF DM UT 12 10 10 .4 4 6
DF DM UT 14 1 1 .0 1
DF DM UT 15 1 1 .0 1
DF DM UT 17 2 2 .1 2
DF DM UT 22 5 5 .2 5
DF DM UT 32 13 13 .5 77
DF DM UT 40 6 6 .2 6
DF RO 3S 34 4 8.8 3 .1 3
DF RO 3S 38 2 2 .1 2
DF RO 3S 40 6 3.0 6 .2 33
DF 3,026 5.4 2,861 85.8 53 83 125 261 216 702 378 244Totals 504 16278
WH DM 2S 36 14 5.3 13 9.5
104
WH DM 2S 40 49 3.9 47 33.2 12 15137
WH DM 3S 21 1 1 .5 1
WH DM 3S 28 1 1 .5 1
WH DM 3S 30 4 4 2.9 4
WH DM 3S 36 7 4.5 6 4.6 2 5
PLOGSTVB
Log Stock Table - MBFTC
Project: RECLUSES
Page 4
Date 7/13/2017
Time 12:36:40PM
Acres 100.70
T16N R06W S36 Ty00U1 63.10
T16N R06W S36 Ty00U2 24.00
T16N R06W S36 Ty00U3 13.60
T
S
Spp Len
Log Gross
MBF
Def
% MBF Spc
%
rt de
So Gr Net Volume by Scaling Diameter in Inches
2-3 4-5 6-7 8-9 10-11 12-13 14-15 16-19 20-23 24-29 30-39 40+MBF
Net
WH DM 3S 40 46 3.3 45 31.6 7 21 17
WH DM 4S 20 1 20.0 1 .4 1
WH DM 4S 22 1 1 .7 1
WH DM 4S 24 8 5.5 7 5.1 7
WH DM 4S 28 3 3 2.4 3
WH DM 4S 36 8 8 5.3 8
WH DM 4S 38 4 4 2.7 4
WH DM UT 12 0 0 .2 0
WH DM UT 14 1 1 .4 1
WH 153 7.7 141 4.2 23 9 27 22 7 12Totals 2417
BM DM UT 13 1 1 .7 1
BM DM UT 14 1 1 .9 1
BM DM UT 16 3 3 3.1 3
BM DM UT 18 1 1 1.4 1
BM DM UT 23 3 3 3.3 3
BM DM UT 30 1 1 .8 1
BM DM 2S 18 4 9.1 3 3.1 3
BM DM 2S 19 3 3 2.8 3
BM DM 2S 20 4 4 4.1 4
BM DM 2S 30 34 11.1 30 29.1 229
BM DM 3S 20 2 12.5 2 1.9 2
BM DM 3S 30 9 11.7 8 7.4 8
BM DM 3S 40 17 7.1 15 14.8 15
BM DM 4S 24 4 4 4.1 4
BM DM 4S 30 9 8.5 8 8.0 8
BM DM 4S 40 3 16.7 3 2.7 3
BM DM 4S 16 1 1 .5
1
BM DM 4S 18 1 1 .5 1
BM DM 4S 27 3 3 2.8 3
BM DM 4S 28 4 20.0 3 2.7 3
BM DM 4S 29 1 25.0 1 .8 1
BM DM 4S 33 2 16.7 1 1.2 1
BM DM 4S 40 3 3 3.1 3
PLOGSTVB
Log Stock Table - MBFTC
Project: RECLUSES
Page 5
Date 7/13/2017
Time 12:36:40PM
Acres 100.70
T16N R06W S36 Ty00U1 63.10
T16N R06W S36 Ty00U2 24.00
T16N R06W S36 Ty00U3 13.60
T
S
Spp Len
Log Gross
MBF
Def
% MBF Spc
%
rt de
So Gr Net Volume by Scaling Diameter in Inches
2-3 4-5 6-7 8-9 10-11 12-13 14-15 16-19 20-23 24-29 30-39 40+MBF
Net
BM 121 13.3 105 3.1 2 12 18 29 39Totals 32
Total 3,558 6.2 3,336 101 112 244 341 730 532 378 244 16334 100.0All Species 303