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TIMBER SALE CONTRACT Agreement entered Z & G Logging into this day o99v-between of P.O. Box 56 Troy, ID 83871 hereinafter called the Purchaser, and Better Living, Incorporated of §RtlB¨ox54L,Genªesee«,ID.--83832, hereinafter called the seller. LOCATION: Whereas the Seller has the right to sell, and warrants to Purchaser that the timber and property are free and clear encumbrances, and agrees to sell to the Purchaser, forest products herein described on certain lands located in pts Section 18 Township 40N , Range 5W , Latah Idaho. CONTRACT DURATION: the of all of NW4, County, Unless an extension of time is granted in writing, all forest products must be cut and removed on or before January 13, 1996. All right to the remaining forest products, cut or uncut, after said date, shall revert to the Seller. PAYMENTS: The Purchaser agrees to purchase an estimated 19 MBF of marked timber, located on the above described land, at the lump sum rate of $ 3,345.99 Any additional, unmarked trees, which the seller and purchaser agreed must be removed in order to complete this contact, will be paid for at the following rates: Species Ponderosa Pine Douglas-fir Dead Pine or Fir PERFORMANCE: $/MBF 250.00 200.00 or $/ton 15.00 To insure performance of this contract by the Purchaser, a cash performance bond for the amount of $500.00 is required to be presented at time of signing, which will be held as earnest money for full and faithful compliance with all said conditions and requirements. Upon satisfactory completion of this sale, all bonds will be returned, refunded, or canceled. The Seller reserves the right to immediately suspend all logging 1 95-85 ---PAGE BREAK--- operations if he finds that the terms of this agreement are not being met. This contract shall not be assigned or sub-contracted in whole or in part without prior written approval of the Seller. INGRESS AND EGRESS: The Purchaser shall have the right of ingress and egress over the property leased by the Seller for the purpose of completing this sale. Acquisition of the right-of-way over adjacent property is the responsibility of the Purchaser. SLASH AND FIRE: The Seller will be responsible for slash disposal and shall enter into a Certificate of Compliance with the State of Idaho as Contractor pursuant to Title 38, Chapter 1 and 4, Idaho Code. The Purchaser and the Purchaser's employees, agents and contractors shall abide by all federal, state and local laws and regulations. LIABILITY: The Purchaser agrees to indemnify and hold harmless the Seller from any and all damages, claims, liabilities or demands made on account of any negligent acts or omissions of the Purchaser or the Purchaser's employees, agents and contractors. Furthermore, the Purchaser agrees to respect and protect all rights-of-way, easements and servitudes belonging to any other party or parties, and agrees not to injure, damage or waste the same in any way whatsoever. Vehicle, workman's compensation, and $500,000 of general liability insurance will be maintain by the Purchaser during the term of the contract. Proof of insurance can be requested by the Seller. SPECIAL TERMS: The Purchaser will be assessed a double stumpage rate for cutting and/or damage of timber not designated for harvest. Special Terms of Sale: (See Attached) 2 ---PAGE BREAK--- In witness thereof, this agreement has been executed by the parties hereto on the date first written above. Witness/ Seller hiP 9 (Date) Witnessb - (Date) STATE OF I £ COUNTY OF I /-14-'ts- (Date) On this / day offim;...,¤A-/ , 19¥, before me, the unders Notan:yQbl¦ in and for said state, personally appeared . known to me to be persons whose names are subscribed to the above and foregoing and acknowledged to me that they executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and notarial seal the date last above written. 3 NOTARY PUBLIC in and for State of Idaho, residing the at ---PAGE BREAK--- SPECIAL TERMS OF SALE HARVEST SPECIFICATIONS All (Ponderosa pine and Douglas-fir trees) , (live or dead) , inches diameter breast height and larger, marked with a band of (blue) paint shall be felled and merchantable products removed as designated below: Merchantable sawlogs shall be removed. Merchantable pulplogs shall be removed. UTILIZATION AND MERCHANTABILITY STANDARDS A sawlog is merchantable if it meets the following specifications: A scaling length of eight feet or more plus trim allowance; Maximum trim allowance of six inches for each scaling length; A net scale of 33-1/3%, all species. A merchantable pulplog is a chunk, log, top, or longbutt not meeting sawlog specifications and is 12 feet or more in length, has pulpwood scale of at least 50 percent, and contains at least ten board feet. HARVEST PROCEDURES The Seller shall require logging practices which minimize damage to reproduction and reserve timber. FELLING AND BUCKING Stump height shall be cut as low as possible, not to exceed 12 inches above ground line as measured on the uphill side of the stump. Top sawlogs shall be cut to a maximum of 6 inches (diameter inside bark) and all pulp tops to a maximum of 3 inches (top diameter inside bark) . Timber shall be felled in the direction of the line of skid to m1n1m1ze damage to the residual stand and reproduction during skidding operations. 1 ---PAGE BREAK--- SKIDDING Tractor Skidding Tractors used for skidding or skid trail construction shall be restricted to machines with a maximum overall width of ( 104) inches including the blade. Skidding tractors shall be equipped with a towing winch with at least 50 feet of winch line, in cases where the winch line will not reach, the tractors may be backed off the trail in the direction of the skid. Skid trails constructed and existing trails used shall be on locations approved by the Seller prior to felling operations. All pulp shall be skidded to the landing. Any products not hauled, shall be decked separately from other landing debris. Landing locations shall be approved by the Seller prior to use. Logging operations shall not be conducted when conditions are such that excessive soil compaction, erosion, or tree damage will result, as determined by the Seller. HAZARD MANAGEMENT Landing debris shall be piled to facilitate burning. Piles will be constructed of logging slash and free of dirt. Piling of debris within 2 0 feet of any stream, spring, or living tree shall not be permitted. No slash or logging debris shall be left outside the sale boundary. ROAD MAINTENANCE AND EROSION CONTROL SPECIFICATIONS Roads shall not be used when hauling or skidding operations will cause undue damage or necessitate excessive maintenance. Erosion control specifications will be as follows: Erosion control measures shall be installed as logging progresses, at the end of each logging season, or as directed by the Seller. Cross-ditches installed in roads and skid trails shall slope diagonally out and down grade at an adequate angle to divert 2 ---PAGE BREAK--- water from the road or skid trail. Each ditch shall be cut into the road bed, tied to the cut bank, sloped to the shoulders, open at the lower end, and capable of diverting water flow completely off the road at that point. Cross-ditch spacing shall be approximately as follows: o- 150 feet or as designated; 5-10%, 100 feet; 11% and greater, 50 feet. Cross-ditches shall not be located where diverted water will erode fill slopes. The Purchaser shall be responsible for gate closures accessing the sale area. responsible for any and all damage due purposefully leaving the gate open. maintaining any and all The Purchaser will be to inadvertently or The Purchaser shall protect property such as fields, fences, telephones, light and power lines, buildings, ditches, bridges, and other improvements against unnecessary injury, and shall repair any damage he causes by restoring property to its previous condition. Damage to gates will be repaired immediately. GENERAL SALE ADMINISTRATION The Purchaser will notify the Seller prior to when work is being performed. Load tickets will be used for hauling all forest products. DEVELOPMENTS Any roads the Purchaser wishes to construct shall require prior written approval by the Seller and shall be built to standard state forest road specifications. 3 ---PAGE BREAK--- Legend Highway Road Ridge· Stand Pond FOREST MANAGEMENT MAP for The Virgil Phillips Environmental Park -Yt., - - CD 0 I I ' r i 1/4 mile NW4 SEC 18 T40N R5W Intermittent Stream Proposed Wetlands Proposed Pond Riparian Plantings To Moscow . v--v tv Farmstead/Interpretive Center 11'