pay for all timber cut under the emergency sale agreement at the rate or rates of the highest bona fide bid submitted.

An unusual emergency exists if the applicant is in immediate need of timber for his own use or if immediate cutting is necessary on account of climatic conditions or logging requirements or rapid deterioration of the timber.

Where competition is probable, emergency sales will be made only when the need of the applicant is so serious as to justify giving him preference over other bidders in the award of the timber.

The emergency sale agreement will be approved by the officer having authority to approve sale agreements for the total amount of timber being advertised; but if the sale of the total amount being advertised must be authorized by the Chief of the Forest Service, regional foresters will secure the approval of the Chief of the Forest Service before approving the emergency sale of part of the timber, and regional foresters may require advance submission to them of all emergency sales.*t [Reg. $-8]

221.9 Principles controlling award of advertised timber. Advertised timber will be awarded to the highest bidder upon submitting satisfactory evidence of financial standing, unless:

(a) Urgent considerations have arisen which make the sale undesirable, in which case all bids may be rejected.

(b) Allotments to several bidders are practicable and advisable. (c) Award to a purchaser in an emergency sale at the highest price bid, or a division of the timber between such purchasers and other bidders, may be required by the existence of an emergency or in equity on account of operations previously begun on the sale area.

(d) The highest bidder is notoriously or habitually careless with fire in his operations, or has failed to comply satisfactorily with the requirements of previous contracts for national forest timber.

(e) Monopoly from the control of large amounts of public or of public and private timber would result.

(f) The award would result in closing an established manufacturing plant operating in and dependent upon national forest timber, and would prevent an established operator from obtaining the benefit of substantial improvements made upon the faith and expectation of a continuous supply of such timber; or would be contrary to instructions previously issued by the Secretary of Agriculture for the management and use of the timber in question, with a view of furnishing a continuous supply of timber for the use and necessities of citizens of the United States; or would be against the interests of local users dependent upon national forest timber or of local communities dependent upon national forest operations for employment; or would cause the abandonment or prevent the establishment of a desirable local industry which should furnish a permanent market for national forest products.

Where the highest bid is not accepted and the sale is still deemed desirable, all bids will be rejected and the timber readvertised; or the award of the timber at the highest price bid will be offered to the next highest bidder when such award would not be contrary to the foregoing requirements: Provided, That in sales of timber for the

Page 18

For statutory and source citations, see note to § 221.1.

local supply of isolated communities the advertisement and the award may be made, with the approval of the regional forester, on condition that manufactured products shall not be sold at prices in excess of maximum prices to be specified in the timber sale agreement.

Before examining timber on application or making an award, a statement of the relation of the applicant or bidder to other persons, firms, or corporations holding permits or agreements for the use of national forest resources may be required in the discretion of the approving officer. Firms or corporations may be required to furnish a certified statement of their members or stockholders.** [Reg. S-9] 221.10 Financial standing of purchaser. In all sales exceeding 10,000,000 feet, and in smaller sales when necessary in the judgment of the approving officer, the successful bidder will be required, prior to the award of the timber, to submit a satisfactory statement of financial ability to conduct the operation and fulfill the terms of the agreement, or his financial standing will be determined by forest officers; and in any sale the applicant or bidder may be required to show that he has or can obtain equipment suitable for logging and manufacturing the timber and meeting the fire precautionary requirements of the contract. Such statements may be required before advertisement or before steps are taken to examine areas applied for.*+ [Reg. S-10]

221.11 Private sale of advertised timber. Forest officers may, within their authorization, sell any timber previously advertised but not sold, without further advertisement, at not less than the advertised rates.* [Reg. S–11]

221.12 Purchaser may be required to furnish bond. The officer approving any timber sale agreement may require the purchaser to furnish a bond for satisfactory compliance with its terms.*t [Reg. S-12]

221.13 Payments in advance of cutting; refunds and transfers. No timber shall be cut under any sale contract until it has been paid for. Refunds may, in the discretion of the Chief of the Forest Service or regional forester, be made to depositors or to their legal representatives of sums deposited in excess of amounts actually due the United States. Refunds of payments may also be made to the rightful claimants of sums erroneously collected for timber or other forest products.

Transfers of deposits from one transaction to another, or from the credit of one purchaser to that of another with the written consent of the original depositor, may be made by the supervisor.*+ (34 Stat. 1270, 36 Stat. 1253; 16 U.S.C. 499) [Reg. S-13]

221.14 Authority of forest officers to make sales. The Chief of the Forest Service is authorized to make timber sales for any amount on any national forest, subject to the maximum cut fixed by the Secretary, and to delegate this authority for amounts not exceeding 50 million feet board measure to the regional foresters. The regional forester may delegate authority to subordinate officers to make sales for amounts not exceeding 10 million feet board measure. All supervisors may without special authorization make sales in amounts not exceeding $500 and may delegate this authority for amounts not exceeding $100 to subordinate officers.

**For statutory and source citations, see note to § 221.1.

Page 19

The Chief of the Forest Service may authorize regional foresters to formally approve timber-sale agreements and related papers in sales exceeding 50 million feet board measure in which the conditions of sale have been previously approved by him.*t [Reg. S-14]

221.15 Modification or transfer of sale agreements. Modification of timber-sale agreements will not be allowed except in cases where the full performance of the agreement by the purchaser is rendered inequitable by some act of the United States or where the modification is sought in respect to the unexecuted portion of the agreement and will not be injurious to the United States. Modifications, where proper under this section, may be made by the officer approving the sale or by his superior officer.

No transfer or assignment of a timber-sale agreement shall be valid unless the transferee or assignee is acceptable to the United States as a purchaser of timber under the conditions and requirements then in effect for similar timber sales, and unless the transfer or assignment has been approved in writing by the forest officer who approved the sale agreement, or by his successor, authorized deputy, or superior officer. But by contractual stipulation a purchaser may be granted general authority to assign his timber-sale agreement in trust as security, subject, however, to such conditions as the Chief of the Forest Service imposes for the protection of the public interests.*t (R.S. 3737; 41 U.S.C. 15) [Reg. S-15]

221.16 How sales shall be administered. (a) No live tree shall be cut under any timber-sale contract or permit until marked or otherwise designated for cutting by a forest officer.

(b) The volume of national forest timber in a sale may be determined by scaling, measuring or counting the logs or other products, or by measuring the trees before cutting. If the contract provides for the determination of volume by tree measurement and the timber has been paid for, the stamping of the tree authorizes cutting and removal. Otherwise no timber cut under any contract shall be removed from the place designated until it has been scaled, measured, or counted and stamped by a forest officer, unless such removal is specifically authorized in the agreement.

(c) No person except a forest officer shall stamp any timber belonging to the United States upon a national forest with the official marking ax or any instrument having a similar design.

(d) The cubic volume rules and the Scribner Decimal C log rule, both as used by the Forest Service, are the official rules for scaling national forest timber.*+ [Reg. S-16]

221.17 When sale contract may be canceled. Timber sale agreements may be canceled for serious or continued violation of their terms. Cancelation will be by the Chief of the Forest Service if the amount of the sale exceeded the regional forester's authorization and by the regional forester in all other cases.

When such action is of advantage to the United States or not prejudicial to its interests and upon the application or with the consent of the purchaser, an agreement may be canceled by the Chief of the Forest Service or regional forester as above. If, further, the remaining timber is to be immediately resold at the same or better Page 20

For statutory and source citations, see note to § 221.1.

rates, the agreement may be canceled by the supervisor if the sale was for an amount not in excess of his authorization.

Agreements may be canceled by the Chief of the Forest Service only, upon the application of purchaser, when cancelation is shown to be required in equity to the purchaser (a) on account of some act of the United States, or (b) upon a review of the conditions existing at the date of sale in accordance with which its terms were fixed.

Agreements may also be canceled by the Forest Officer approving the sale, or his successor, upon application of the purchaser, if the condition of the timber has changed materially due to some cause such as a forest fire or insect infestation for which the purchaser is not responsible.*t [Reg. S-17]

221.18 Action for breach of sale contract. Action for breach of contract may be brought for serious or continued violations of the sale agreement or where damages to the United States from violation of the agreement can not be recovered otherwise. Such action will be brought only with the approval of the Chief of the Forest Service.*t [Reg. S-18]

221.19 Authority for sale of naval stores. So far as applicable, the regulations governing timber sales will be followed in sales of naval stores.

The Chief of the Forest Service is authorized to make such sales for any amount on any national forest within the maximum limit fixed by the Secretary and to delegate this authority for amounts not exceeding 200,000 cups to regional foresters. Regional foresters may delegate this authority to supervisors for amounts not exceeding 40,000 cups. Emergency sales will not be allowed.*t (Sec. 1, 30 Stat. 35, sec. 1, 33 Stat. 628; 16 U.S.C. 551 [Reg. S-19]

221.20 Sales of seized forest products. Seized material may be sold to the highest bidder under specific authority from the regional forester. If advertisement is impractical, sales of material exceeding $500 in value will be made on informal bids.** [Reg. S-20]

221.21 Sale of miscellaneous forest products not specifically covered by other regulations. The sale of forest products not specifically covered by other regulations will be conducted by forest supervisors under general instructions from the regional forester with reference to the class of material involved. Sales exceeding $500 in value will be advertised.*† (Sec. 1, 30 Stat. 35, sec. 1, 33 Stat. 628; 16 U.S.C. 551) [Reg. S-21]

221.22 Sales at actual cost to settlers and farmers for domestic use. Mature, dead, and down timber which can be cut without injury to the forest will be sold upon application without advertisement in any desired amount to homestead settlers and farmers, for domestic use on any homestead or farm, at the actual cost of making and administering such sales. The disposal of any part of such material for a money or other consideration, or in exchange for labor, services, or commodities, furnished the purchaser in connection with its cutting, removal, or manufacture or for any purpose except domestic use on the homestead or farm of the purchaser, is prohibited. If any of the foregoing requirements are violated, the sale will be terminated

**For statutory and source citations, see note to § 221.1.

Page 21

and the purchaser required to pay for all materials cut at twice its appraised market value.

The Chief of the Forest Service will determine from time to time the cost per thousand feet board measure or other unit of making and administering such sales in each national forest region, where similar conditions exist, which amount will be uniformly taken on all forests in the region as the stumpage price in sales under this section. Regional foresters may approve sales in any amount under this section, with prior review by the Chief of the Forest Service if required for similar amounts in commercial sales, and may authorize supervisors to make sales in any amounts not exceeding 200,000 feet board measure. Supervisors may authorize rangers to make sales in any amount not exceeding 50,000 feet.** (37 Stat. 287; 16 U.S.C. 489 [Reg. S-22]

221.23 Procedure when timber is cut under land exchange agreements. National forest timber may be cut and removed as a consideration for the transfer of lands to the United States under the act of March 20, 1922 (42 Stat. 465; 16 U.S.C. 485), or other laws authorizing the exchange of land for national forest timber. In all cases cuttings will be in accordance with the silvicultural, protective, and utilization requirements applicable to commercial sales of similar timber. The value of the timber will be determined by appraisal as in commercial sales before the proposed exchange is submitted to the Secretary of Agriculture for his consideration.* (Sec. 1, 42 Stat. 465, 43 Stat. 1090; 16 U.S.C. 485, 486) [Reg. S-23]

221.24 Use of timber for national forest improvements; for investigations; for public relief; and for other purposes. The Chief, Forest Service, may authorize the cutting or use of nationalforest timber for the construction, maintenance, or repair of roads, bridges, trails, telephone lines, drift fences, or other improvements of value for the protection or administration of the national forests; for investigations; for use in relief work conducted by public agencies; or to meet the needs, for building, fuel, and similar uses but not for resale, of nonprofit organizations of unrestricted membership and furnishing services to the general public without distinctions between individuals, such as local governmental bodies including school districts, churches, and community organizations for community betterment.*+ (37 Stat. 843; 16 U.S.C. 560) [Reg. S-24, as amended Dec. 17, 1937, 2 F.R. 2871]

221.25 Disposal of timber for protection or stand improvement purposes. The Chief of the Forest Service may dispose of timber, the use or removal of which is necessary to protect the forest from injury or to improve conditions of growth, by sale, free use, or otherwise, as may be most advantageous to the United States.

This authority may be delegated to regional foresters, by them to supervisors, and by supervisors to their subordinates, in each case for amounts not in excess of those which these officers are authorized to dispose of by commercial sales, if payment is to be made for the timber; and, when no payment is required for the amounts, these officers are authorized by § 221.26 to grant individuals under free use.** [Reg. S-25]

Page 22

**For statutory and scource citations, see note to § 221.1