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Sample Recommended Pole and Timber Sale Contract

This agreement is made and entered into this day ____ year ____ , at__________ (place of signing) by and between ____ hereinafter referred to as the seller whose address is___________ and _____hereinafter referred to as the buyer whose address is _____.:

WITNESSETH

ARTICLE I _____

The Seller agrees to sell and the Buyer agrees to buy the designated pole and timber trees, hereinafter defined, located on the the timber sale area which covers approximately ________ acres located on the land known as _______________________________________ (tract name) in ______________________________________ county, Virginia. The timber sale area is shown on the attached map called the Timber Sale Map which is hereby made a part of this agreement.

The designated trees are:

1.All merchantable trees which are marked with two orange paint spots on the trunk, one about five feet above the ground and the other about six inches above the ground.

2.All cull trees and poles marked with one orange spot below stump height and two orange paint spots about five feet above ground. The Buyer must cut these trees and may use these trees or may leave them on the site.

The Seller estimates that merchantable and cull trees are marked and believes that these merchantable trees will yield an estimated _____ board feet of lumber (International Scale), and/or _____ cords or _____ cubic feet of wood. It is understood and agreed, however, that the Buyer is satisfied as to number, quality, and volume of the marked trees that he is buying, where is, as is, and that the Seller makes no guarantee as to number, quality, and volume of the marked trees.

ARTICLE II The Buyer agrees to pay the Seller the sum of $_________ as a cashier check or money order for said designated trees in accordance with the following terms:

1. At least one-fourth (1/4) of the total ($ shall be paid ithin ten (10) days of date of this agreement but before any trees are cut.

2. An additional one-fourth (1/4) will be within ___ months of the date of this agreement or before one-fourth of the volume has been cut.

3. An additional one-fourth will be paid within ___ months of date of agreement and before more than one-half of the volume has been cut.

4. The remaider of the total price will be paid within ___ months or before three-fourths of the volume has been cut.

5. To assure that this schedule of payment is being followed, the Buyer agrees to provide the Seller with a written, signed statement at the end of each month as to the estimated board foot and/or other volume cut that month.

6. All timber shall be removed before the expiration date of ______________________________, or ______ years from the date of this agreement. The Buyer forfeits all rights and claims to any and all timber or material remaining after that date. In the event that more than 5 years are involved in harvesting timber from this area for whatever reason(s), this contract may be re-negotiated by the Seller.

ARTICLE III

The Seller hereby expressly grants to the Buyer, his agents and employees the right of ingress and egress across and upon the sale area for all persons, materials, and logging equipment, including trucks, tractors and teams necessary for the removal of the timber. The seller will specify route corridors, the condition of travel, and the requirements for road maintenance. These requirements and limits are hereby made a part of this agreement.

Rights are also given to do such other things as may be necessary in connection with the operation, including the right and privilege of the Buyer to use sufficient and necessary space in and upon said land to cut, fell, or remove or handle, load and haul all timber contemplated in this agreement and no other.

Tree tops of the marked trees may not be sold as firewood and are to be left on the site.

ARTICLE IV

The Buyer, recognizing that the timber sale area is on a special purpose forested watershed and that special requirements must be met in order to safeguard the interests of the Seller, further agrees to cut and remove any and all of said designated trees in strict accordance with the following conditions:

1. No unmarked living trees of any kind shall be cut, except as reasonably necessary in clearing for roads, skid trails, and landings.

2. All living trees not marked shall be protected against unnecessary injury in felling, skidding, or hauling operations.

3. Young trees shall be protected against unnecessary injury. Only dead or the lesser valuable trees may be used for construction purposes in connection with the logging operation, and all existing roads shall be kept clear of tops and other obstructions.

4. All hung trees will be put on the ground.

5. No trees will be felled in or across any streams. Skidding across any stream will be done only in the place marked on the area (name)___________ and shown on the Timber Sale Map.

6. Log landings can be constructed and used on the sale area as indicated on the attached map. The Buyer must confine the hauling of logs to the roadway noted on the attached map and marked on the ground with red flagging. Deviations from this location, and the location of any additional roads must be approved by the Seller, in writing, prior to construction.

7. All roads and skid trails must be kept clear of treetops. Any treetops falling on such roads or trails must be removed before completion of this job. Treetops falling outside the boundaries of this ownership must be pulled back onto property.

8. Along the roads and trails marked on the _______________________ Timber Sale Map, the felled tree tops must be lopped back to the ground. This will be done for a distance of 100 feet each side of the designated trails and roads.

9. Skid trails should be located to have no greater than a 20 percent gradient.

10. Upon the completion of logging operations, the Buyer shall smooth the ruts out of the skid roads, log landings and truck roads, and install water bars wherever necessa~ (one per 20' change in elevation or 300' of road length~ In addition, the Buyer must repair any culvert which may have become damaged during the logging activities. Roads will be returned to a condition equal to or better than before logging begins. Camera pictures of roads will be taken and signed by the Buyer and the Seller and attached to this contract as partial proof of original conditions of the roads.

11. If livestock are on the area, the Seller agrees to keep them out of the sale area. The Buyer agrees to honor all gates and fences. If the Buyer cuts any marked cherry trees, the tree tops will be kept out of the pasture of or near fences for livestock.

12. The area shall be kept reasonably clear of all trash, cans, and other litter. After logging is completed, al trash and litter shall be removed.

13. No employees of the Buyer will be permitted to remain on the property overnight except by written permission, and the location of any animal corral or shelter, or sawmill sawdust pile, etc., shall be approved by the Seller.

14. All structures or improvements erected by the Buyer on the Seller's property shall be removed and the site restored to a sanitary condition when this agreement is terminated.

15. The Buyer agrees to abide by harvesting standard established under the Virginia Water Quality Board under th 1977 Clean Water Act. Section 404 permit(s) as necessary will be obtained by the Buyer.

16. No operating methods shall be employed which wil create excessive soil erosion on the sale area or roads. The Seller reserves the right to suspend any part or all of the logging activities of the Buyer whenever, in the judgment of the Seller, such activities, due to inclement weather conditions or poor logging practices, are injurious or harmful to the property of the Seller. The number of days of delay imposed by the Seller through such suspensions shall be added to extend the expiration date (Article II. 6.).

17. In the event that the Seller imposes delays for more than 5 days, for any reason, the period of reports and payments will be extended the amount of the delay.

18. All damages caused by the Buyer or his agents to bridges or other improvements of the Seller shall be repaired or paid for at replacement cost by the Buyer.

19. The Buyer or his agents will not harass or unduly disturb wildlife on the area. The Seller reserves the right to suspend any part or all of the activities of the Buyer when the Buyer or his agents are convicted of taking game illegally on the property.

20. The Buyer agrees to forego briefly cutting trees with evident active wildlife nesting cavities. This does not prevent the removal of trees marked for removal.

21. The Seller reserves the right to terminate this agreement if wildlife species designated as threatened or endangered are found on the property during the term of this agreement.

ARTICLE V

The Buyer shall use due care to prevent fires and shall assume responsibility for fire fighting costs of fires resulting from carelessness or unsafe practices during the logging period. In the event a fire originates from acts or negligence of the Buyer or his agents1 he will:

1. Immediately suppress the fire, or upon failure to do so, the Seller may take independent action to suppress the fire, the cost thereof to be borne by the Buyer.

The Buyer will pay in full for any damage resulting from the Buyer to trees, young growth, or other property of the Seller not included in the sale. Damages will be determined by an impartial jury of three local people one chosen by the Buyer, one by the Seller, and one mutually agreed upon. The three will have final say. They will be paid, if necessary, by the party found at fault.

The Buyer further agrees that no untended open fires will be permitted at any time.

ARTICLE VI

The Buyer agrees to conduct all phases of the logging operation in such a manner that the watershed values of the timber sale area will be protected and sustained. This means ma um Atspersal of skid trails to the extent reasonably possible to prevent water concentrations. The following additional specifications shall apply:

1. Maximum road grades shall not exceed 15 percent.

2. Maximum road width shall not exceed 12 feet, except that turnouts will be permitted up to 18 feet in width not more than 60 feet long at curves, passing, and loading points.

3. Clearing widths for roads shall not exceed 3 feet outside of excavation on cut sections, or 2 feet outside of shoulder on fill sections. There will be no clearing for daylighting except as indicated by marked trees.

4. Where roads and skid trails cross main drains, bridges or culverts shall be constructed if practicable, but where they are not used, the grades of such roads and skid trails shall be descending toward the stream in both directions.

5. Backslopes on road cuts shall be vertical, or as steep as the soil will permit, and vegetation overhang shall be left in place.

6. The road cross section shall be smooth, with no windrows, so as to permit proper drainage of the road surface.

7. Adequate drainage shall be provided by installation of open top culverts, or water bars, turnouts, or otherwise, to control water accumulation in skid trails or roadways. Out-sloping of roads will be permitted. Such water turnouts will be provided as needed to prevent erosion but in no case will water be permitted to flow along in roads or skid trails for more than 300 feet.

8. General maintenance on all roads and skid trails shall be provided to keep them in a useable condition and to minimize erosion. All drainage structures shall be kept open and in operating condition. In the event of heavy rainfall, or at other times when in the Seller's sole judgement the road bed becomes too soft, no hauling will be permitted on any but all-weather roads. In the event that such hauling is prohibited by the Seller for more than an occasional day or two at a time, and to the extent that such delays reasonably prevent the Buyer's completion of the contract, the terms of the contract will, at the Buyer's request, be extended the number of days that the Seller has prohibited hauling.

9. Skid trails shall be reinforced with cross or parallel skid poles on sections where heavy use causes gouging or trenching or where excessive erosion is expected or occurs. Where runoff water is concentrated water bars, poles, or other devices shall be required to turn the water out of the skid trail.

10. In the event that the Buyer neglects or fails to correct any erosion situations resulting from his operations which in the Seller's sole judgement are excessive, including those existing on completion of the operation, the Seller may take necessary corrective action and the cost thereof shall be borne by the Buyer.

ARTICLE VII

Only trees under the terms of this agreement shall be cut; and the said Buyer shall pay, as liquidated damages, fifty dollars ($50.00) in cash in excess of stumpage value for each marketable tree that is cut or wantonly injured in violation of the terms of this agreement; provided, however, the Buyer shall not be liable for this penalty in felling trees when making necessary skidways or where trees have become unavoidably lodged or tops broken in felling. However, if such unmarked trees are cut the Buyer will pay the Seller the same stumpage value per unit as for the marked trees, $ ____per thousand board feet, or $____ per cubic foot, provided that in reasonable accidental cases, the Seller may waive this requirement.

ARTICLE VIII

It is further mutually agreed that the Buyer and the Seller may each designate an agent to represent them in conducting the timber sale operations.

The representative of the Seller will see to it that performance requirements are met, and the Seller's interests are protected. Said agent will be available to assist in interpreting and explaining all terms, conditions, and provisions set forth in this agreement.

ARTICLE IX

The Buyer shall secure and keep in effect compensation insurance for the benefit of, and keep insured during the life of this agreement, such employees as are required, by the provisions of the Workman's Compensation Law.

ARTICLE X

In the event of natural disaster to standing marked trees such as tornado, ice storm, fire or flood, etc.~ occurring during the period of this contract, the losses ~ne are those of the Seller and the costs to the Buyer shall be deducted the full amount of the loss. Loss of equipment or of harvested wood is loss incurred by the Buyer.

ARTICLE XI

This agreement and all provisions, terms and conditions thereof shall likewise be binding upon the parties hereto, their legal representatives, and successors. This contract is not assignable without the Seller's prior written approval.

ARTICLE XII

As a guarantee of performance the Buyer, herewith, deposit with the Seller's agent, (name) _____a cash or corporate surety performance bond in the amount of $1,000 from which the Buyer will be released immediately following the satisfactory completion of the contract.

The sum may be used by the Seller to apply on damage sustained by the Seller under any violation by the Buyer of any terms and conditions of this agreement. Any sum or sums so applied shall become the property of the Seller

ARTICLE XIII

The Buyer shall provide the Seller with a certificate for public liability insurance policy with minimum limits of on hundred thousand ($100,000) in the event of death or injury to one (1) individual, and three hundred thousand dollars ($300,000) in the event of death or injury to more than one individual; and property damage insurance with minimum limits of twenty-five thousand dollars ($25,000) and an aggregate of fifty thousand dollars ($50,000) before this agreement is in effect.

The relation of the Buyer is and shall be entirely that of a independent contractor, and the Seller shall in no way be responsible for any claim, claims, or damages whatsoever, and by whomsoever asserted, arising from or caused in or during the performance of the Buyer's contract. The Buyer shall hold the Seller free and harmless of any and all liability arising as result of the Buyer's performance under this contract and shall reimburse the Seller for any reasonable attorney fees or othe expense incurred by the Seller as the result of such claims.

IN WITNESS WHEREOF, the parties hereto have hereunto se their hands and seals, this _________ day of ________ ,19__

WITNESSES: (s)
(s)
(Seal)Buyer
(s) (Seal)Seller
(s)Clerk

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