[Code of Federal Regulations]
[Title 43, Volume 2]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 43CFR2812.4-1]

[Page 267-268]
 
                    TITLE 43--PUBLIC LANDS: INTERIOR
 
    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR
 
PART 2810_TRAMROADS AND LOGGING ROADS--Table of Contents
 
         Subpart 2812_Over O. and C. and Coos Bay Revested Lands
 
Sec. 2812.4-1  Agreements and arbitration between permittee and licensee 
respecting compensation payable by licensee to permittee for use of road.

    (a) In the event the United States exercises the rights received 
from a permittee hereunder to license a person to remove forest products 
over any road, right-of-way, or lands of the permittee or of his 
successor in interest, to the extent that such matters are not covered 
by an agreement under Sec. 2812.3-7 of this subpart, such licensee will 
be required to pay the permittee or his successor in interest such 
compensation and to furnish him such security, and to carry such 
liability insurance as the permittee or his successor in interest and 
the licensee may agree upon. If the parties do not agree, then upon the 
written request of either party delivered to the other party, the matter 
shall be referred to and finally determined by arbitration in accordance 
with the procedures established by Sec. 2812.4-4. During the pendency 
of such arbitration proceedings the licensee shall be entitled to use 
the road, right-of-way, or lands involved upon payment, or tender 
thereof validly maintained, to the permittee of an amount to be 
determined by the authorized officer and upon the furnishing to the 
permittee of a corporate surety bond in an amount equal to the 
difference between the amount fixed by the authorized officer and the 
amount sought by the permittee. The licensee shall also, as a condition 
of use in such circumstances, maintain such liability insurance in such 
amounts covering any additional hazard and risk which might accrue by 
reason of the licensee's use of the road, as the authorized officer may 
prescribe.
    (b) The arbitrators shall base their award as to the compensation to 
be paid by the licensee to the permittee or his successor in interest 
upon the amortization of the replacement costs for a road of the type 
involved, including in such replacement costs an extraordinary cost 
peculiar to the construction of the particular road involved and 
subtracting therefrom any capital investment made by the United States 
or its licensees in the particular road involved or in improvements 
thereto used by and useful to the permittee or his successor in interest 
plus a reasonable interest allowance on the resulting cost figure, 
taking into account the risk involved, plus costs of maintenance if 
furnished by the permittee or his successor, including costs of gates 
and gateman. In arriving at the amortization item, the arbitrators shall 
take into account the probable period of time, past and present, during 
which such road may be in existence, and the volume of timber which has 
been moved and the volume of timber currently merchantable, which 
probably will be moved from all sources over such road. The arbitrators 
shall also take into account the extent to which the use which the 
licensee might otherwise economically make of the road system is limited 
by Sec. 2812.3-5. In addition, the arbitrators may fix the rate at 
which payments shall be made by the licensee during his use of the road. 
The arbitrators shall require the licensee to provide adequate bond, 
cash deposit, or other security to indemnify the permittee or his 
successor in interest against failure of the licensee to comply with the 
terms of the award and against damage to the road not incident to normal 
usage and for any other reasonable purpose, and also to carry 
appropriate liability insurance covering any additional hazard and risks 
which may accrue by reason of the licensee's use of the road.
    (c) Where improvements or additions are required to enable a 
licensee to use

[[Page 268]]

a road or right-of-way to remove timber or forest products, the cost of 
such improvements will be allowable to the licensee.
    (d) The full value at current stumpage prices will be allocable 
against a licensee for all timber to be cut, removed, or destroyed by 
the licensee on a permittee's land in the construction or improvement of 
the road involved.