Regulations: 16 USC 472a

16 USC 472a.htm

Bid For Advertised Timber

Regulations: 16 USC 472a

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[CITE: 16USC472a]

 
                         TITLE 16--CONSERVATION
 
                       CHAPTER 2--NATIONAL FORESTS
 
             SUBCHAPTER I--ESTABLISHMENT AND ADMINISTRATION
 
Sec. 472a. Timber sales on National Forest System lands


(a) Authorization; rules and regulations; appraised value as minimum 
        sale price

    For the purpose of achieving the policies set forth in the Multiple-
Use Sustained-Yield Act of 1960 (74 Stat. 215; 16 U.S.C. 528-531) and 
the Forest and Rangeland Renewable Resources Planning Act of 1974 (88 
Stat. 476) [16 U.S.C. 1600 et seq.], the Secretary of Agriculture, under 
such rules and regulations as he may prescribe, may sell, at not less 
than appraised value, trees, portions of trees, or forest products 
located on National Forest System lands.

(b) Designation on map; prospectus

    All advertised timber sales shall be designated on maps, and a 
prospectus shall be available to the public and interested potential 
bidders.

(c) Terms and conditions of contract

    The length and other terms of the contract shall be designed to 
promote orderly harvesting consistent with the principles set out in 
section 6 of the Forest and Rangeland Renewable Resources Planning Act 
of 1974, as amended [16 U.S.C. 1604]. Unless there is a finding by the 
Secretary of Agriculture that better utilization of the various forest 
resources (consistent with the provisions of the Multiple-Use Sustained-
Yield Act of 1960 [16 U.S.C. 528-531]) will result, sales contracts 
shall be for a period not to exceed ten years: Provided, That such 
period may be adjusted at the discretion of the Secretary to provide 
additional time due to time delays caused by an act of an agent of the 
United States or by other circumstances beyond the control of the 
purchaser. The Secretary shall require the purchaser to file as soon as 
practicable after execution of a contract for any advertised sale with a 
term of two years or more, a plan of operation, which shall be subject 
to concurrence by the Secretary. The Secretary shall not extend any 
contract period with an original term of two years or more unless he 
finds (A) that the purchaser has diligently performed in accordance with 
an approved plan of operation or (B) that the substantial overriding 
public interest justifies the extension.

(d) Advertisement of sales; exceptions

    The Secretary of Agriculture shall advertise all sales unless he 
determines that extraordinary conditions exist, as defined by 
regulation, or that the appraised value of the sale is less than 
$10,000. If, upon proper offering, no satisfactory bid is received for a 
sale, or the bidder fails to complete the purchase, the sale may be 
offered and sold without further advertisement.

(e) Bidding methods; purposes; oral auction procedures; monitoring and 
        enforcement for prevention of collusive practices

    (1) In the sale of trees, portions of trees, or forest products from 
National Forest System lands (hereinafter referred to in this subsection 
as ``national forest materials''), the Secretary of Agriculture shall 
select the bidding method or methods which--
        (A) insure open and fair competition;
        (B) insure that the Federal Government receive not less than the 
    appraised value as required by subsection (a) of this section;
        (C) consider the economic stability of communities whose 
    economies are dependent on such national forest materials, or 
    achieve such other objectives as the Secretary deems necessary; and
        (D) are consistent with the objectives of this Act and other 
    Federal statutes.

The Secretary shall select or alter the bidding method or methods as he 
determines necessary to achieve the objectives stated in clauses (A), 
(B), (C), and (D) of this paragraph.
    (2) In those instances when the Secretary selects oral auction as 
the bidding method for the sale of any national forest materials, he 
shall require that all prospective purchasers submit written sealed 
qualifying bids. Only prospective purchasers whose written sealed 
qualifying bids are equal to or in excess of the appraised value of such 
national forest materials may participate in the oral bidding process.
    (3) The Secretary shall monitor bidding patterns involved in the 
sale of national forest materials. If the Secretary has a reasonable 
belief that collusive bidding practices may be occurring, then--
        (A) he shall report any such instances of possible collusive 
    bidding or suspected collusive bidding practices to the Attorney 
    General of the United States with any and all supporting data;
        (B) he may alter the bidding methods used within the affected 
    area; and
        (C) he shall take such other action as he deems necessary to 
    eliminate such practices within the affected area.

(f) Research and demonstration projects

    The Secretary of Agriculture, under such rules and regulations as he 
may prescribe, is authorized to dispose of, by sale or otherwise, trees, 
portions of trees, or other forest products related to research and 
demonstration projects.

(g) Designation, marking, and supervision of harvesting; personnel

    Designation, marking when necessary, and supervision of harvesting 
of trees, portions of trees, or forest products shall be conducted by 
persons employed by the Secretary of Agriculture. Such persons shall 
have no personal interest in the purchase or harvest of such products 
and shall not be directly or indirectly in the employment of the 
purchaser thereof.

(h) Utilization standards, methods of measurement, and harvesting 
        practices; monetary deposits by purchasers of salvage harvests; 
        nature, purposes and availability of designated fund; return of 
        surplus to Treasury

    The Secretary of Agriculture shall develop utilization standards, 
methods of measurement, and harvesting practices for the removal of 
trees, portions of trees, or forest products to provide for the optimum 
practical use of the wood material. Such standards, methods, and 
practices shall reflect consideration of opportunities to promote more 
effective wood utilization, regional conditions, and species 
characteristics and shall be compatible with multiple use resource 
management objectives in the affected area. To accomplish the purpose of 
this subsection in situations involving salvage of insect-infested, 
dead, damaged, or down timber, and to remove associated trees for stand 
improvement, the Secretary is authorized to require the purchasers of 
such timber to make monetary deposits, as a part of the payment for the 
timber, to be deposited in a designated fund from which sums are to be 
used, to cover the cost to the United States for design, engineering, 
and supervision of the construction of needed roads and the cost for 
Forest Service sale preparation and supervision of the harvesting of 
such timber. Deposits of money pursuant to this subsection are to be 
available until expended to cover the cost to the United States of 
accomplishing the purposes for which deposited: Provided, That such 
deposits shall not be considered as moneys received from the national 
forests within the meaning of sections 500 and 501 of this title: And 
provided further, That sums found to be in excess of the cost of 
accomplishing the purposes for which deposited on any national forest 
shall be transferred to miscellaneous receipts in the Treasury of the 
United States.

(i) Purchaser credit for permanent road construction; right of election 
        of small business concerns; estimated cost; date of completion; 
        use of funds for construction; effective date

    (1) For sales of timber which include a provision for purchaser 
credit for construction of permanent roads with an estimated cost in 
excess of $20,000, the Secretary of Agriculture shall promulgate 
regulations requiring that the notice of sale afford timber purchasers 
qualifying as ``small business concerns'' under the Small Business Act, 
as amended [15 U.S.C. 631 et seq.], and the regulations issued 
thereunder, an estimate of the cost and the right, when submitting a 
bid, to elect that the Secretary build the proposed road.
    (2) If the purchaser makes such an election, the price subsequently 
paid for the timber shall include all of the estimated cost of the road. 
In the notice of sale, the Secretary of Agriculture shall set a date 
when such road shall be completed which shall be applicable to either 
construction by the purchaser or the Secretary, depending on the 
election. To accomplish requested work, the Secretary is authorized to 
use from any receipts from the sale of timber a sum equal to the 
estimate for timber purchaser credits, and such additional sums as may 
be appropriated for the construction of roads, such funds to be 
available until expended, to construct a road that meets the standards 
specified in the notice of sale.
    (3) The provisions of this subsection shall become effective on 
October 1, 1976.

(Pub. L. 94-588, Sec. 14, Oct. 22, 1976, 90 Stat. 2958; Pub. L. 95-233, 
Feb. 20, 1978, 92 Stat. 32; Pub. L. 101-626, title I, Sec. 105(a), Nov. 
28, 1990, 104 Stat. 4427.)

                       References in Text

    The Multiple-Use Sustained-Yield Act of 1960, referred to in 
subsecs. (a) and (c), is Pub. L. 86-517, June 12, 1960, 74 Stat. 215, as 
amended, which is classified generally to sections 528 to 531 of this 
title. For complete classification of this Act to the Code, see Short 
Title note set out under section 528 of this title and Tables.
    The Forest and Rangeland Renewable Resources Planning Act of 1974, 
referred to in subsec. (a), is Pub. L. 93-378, Aug. 17, 1974, 88 Stat. 
476, as amended, which is classified generally to subchapter I 
(Sec. 1600 et seq.) of chapter 36 of this title. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 1600 of this title and Tables.
    This Act, referred to in subsec. (e)(1)(D), is Pub. L. 94-588, Oct. 
22, 1976, 90 Stat. 2949, as amended, known as the National Forest 
Management Act of 1976. For complete classification of this Act to the 
Code, see Short Title of 1976 Amendment note set out under section 1600 
of this title and Tables.
    The Small Business Act, referred to in subsec. (i)(1), is Pub. L. 
85-536, July 18, 1958, 72 Stat. 384, as amended, which is classified 
generally to chapter 14A (Sec. 631 et seq.) of Title 15, Commerce and 
Trade. For complete classification of this Act to the Code, see Short 
Title note set out under section 631 of Title 15 and Tables.


                               Amendments

    1990--Subsec. (i)(1). Pub. L. 101-626 struck out proviso that this 
subsec. not apply to sales of timber on National Forest System lands in 
the State of Alaska.
    1978--Subsec. (e). Pub. L. 95-233 substituted provisions authorizing 
the Secretary of Agriculture to select bidding method or methods to 
achieve the purposes of par. (1) of this subsec., procedures for use of 
oral auction as the bidding method, and procedures for monitoring and 
enforcement to prevent collusive practices, for provisions authorizing 
the Secretary to take such action as deemed necessary to prevent 
collusive practices, and setting forth requirements for enforcement.


Application of Amendments by Pub. L. 101-626 to Certain Long-Term Timber 
                             Sale Contracts

    Amendment by Pub. L. 101-626 not applicable to certain long-term 
timber sale contracts, see section 105(c) of Pub. L. 101-626, set out as 
a note under section 539d of this title.


         Use of Receipts From Timber Sales for Road Construction

    Pub. L. 99-500, Sec. 101(h) [title II], Oct. 18, 1986, 100 Stat. 
1783-242, 1783-271, and Pub. L. 99-591, Sec. 101(h) [title II], Oct. 30, 
1986, 100 Stat. 3341-242, 3341-271, provided that: ``Notwithstanding any 
other provision of law, the Secretary of Agriculture is hereafter 
authorized to use from any receipts from the sale of timber a sum equal 
to the cost of construction of roads under the purchaser election 
program as described and authorized in section 14(i) of the National 
Forest Management Act of 1976 [16 U.S.C. 472a(i)].''

                  Section Referred to in Other Sections

    This section is referred to in section 535a of this title.


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