[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR2812.4-1]



[Page 271-272]

 

                    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 272]]



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.