[Code of Federal Regulations]
[Title 7, Volume 6]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR625.15]

[Page 453-454]
 
                          TITLE 7--AGRICULTURE
 
   CHAPTER VI--NATURAL RESOURCES CONSERVATION SERVICE, DEPARTMENT OF 
                               AGRICULTURE
 
PART 625_HEALTHY FORESTS RESERVE PROGRAM--Table of Contents
 
Sec. 625.15  Violations and remedies.

    (a) Easement Violations. (1) In the event of a violation of the 
easement or any associated agreement involving a landowner, the 
landowner shall be given reasonable notice and an opportunity to 
voluntarily correct the violation within 30 days of the date of the 
notice, or such additional time as the State Conservationist may allow.
    (2) Notwithstanding paragraph (a)(1) of this section, the NRCS 
reserves the right to enter upon the easement area at any time to remedy 
deficiencies or easement violations. Such entry may be made at the 
discretion of the NRCS when such actions are deemed necessary to protect 
important listed species and forest ecosystem functions and values or 
other rights of the United States under the easement. The landowner 
shall be liable for any costs incurred by the United States as a result 
of the landowner's negligence or failure to comply with easement or 
contractual obligations.
    (3) In addition to any and all legal and equitable remedies as may 
be available to the United States under applicable law, NRCS may 
withhold any easement and cost-share payments owing to landowners at any 
time there is a material breach of the easement covenants, associated 
restoration agreement, or any associated contract. Such withheld funds 
may be used to offset costs incurred by the United States in any 
remedial actions or retained as damages pursuant to court order or 
settlement agreement.
    (4) The United States shall be entitled to recover any and all 
administrative and legal costs, including attorney's fees or expenses, 
associated with any enforcement or remedial action.
    (b) 10-year Cost-Share Agreement Violations. (1) If the NRCS 
determines that a participant is in violation of the terms of a 10-year 
cost-share agreement, or documents incorporated by reference into the 
10-year cost-share agreement, NRCS will give the participant a 
reasonable time, as determined by the State Conservationist, to correct 
the violation and comply with the terms of the cost-share agreement and 
attachments thereto. If the violation continues, the State 
Conservationist may terminate the 10-year cost-share agreement.
    (2) Notwithstanding the provisions of paragraph (b)(1) of this 
section, an agreement termination is effective immediately upon a 
determination by the State Conservationist that the participant has: 
Submitted false information; filed a false claim; engaged in any act for 
which a finding of ineligibility for payments is permitted under this 
part; or taken actions NRCS deems to be sufficiently purposeful or 
negligent to warrant a termination without delay.
    (3) If NRCS terminates a cost-share agreement due to breach of 
contract, the participant will forfeit all rights for future payments 
under the cost-share agreement, and must refund all

[[Page 454]]

or part of the payments received, plus interest, and liquidated damages. 
The State Conservationist may require only partial refund of the 
payments received if a previously installed practice or measure can 
function independently, is not affected by the violation or other 
practices or measures that would have been installed under the cost-
share agreement, and the participant agrees to operate and maintain the 
installed practice or measure for the life span of the practice or 
measure.
    (4) If NRCS terminates a 10-year cost-share agreement due to breach 
of contract, or the participant voluntarily terminates the 10-year cost-
share agreement before any cost-share payments have been made, the 
participant will forfeit all rights for further payments under the 10-
year cost-share agreement, and must pay such liquidated damages as are 
prescribed in the restoration agreement. The State Conservationist has 
the option to waive the liquidated damages, depending upon the 
circumstances of the case.
    (5) When making any 10-year cost-share agreement termination 
decisions, the State Conservationist may reduce the amount of money owed 
by the participant by a proportion which reflects the good faith effort 
of the participant to comply with the cost-share agreement, or the 
hardships beyond the participant's control that have prevented 
compliance with the contract including natural disasters or events.
    (6) The participant may voluntarily terminate a 10-year cost-share 
agreement, without penalty or repayment, if the State Conservationist 
determines that the cost-share agreement terms and conditions have been 
fully complied with before termination of the cost-share agreement.