Sample Logging Contracts?

[JaredWoodcock]

Hi All,
I was wondering if you would be willing to share some examples of the logging contracts/bids that you use? I am trying to develop a spreadsheet and I wanted to take a look at what others are using.

Thanks
Jared

[Tyler Sage]

send me an mail and i will pass one along, sage.tyler at gmail dot com

[Carl Russell]

Below is my comprehensive contract. May not maintain formatting in this medium, but it does show all of the clauses that I think are pertinent.

I do not use percentage, or stumpage rates for bids or estimates. I use service fees based on daily costs and potential rates of production to estimate the cost of extraction meeting the silvicultural objectives. Market price, minus trucking fees, minus harvesting rates, equals the stumpage value. Good timber has high stumpage, poor timber is low (or possibly non-existent), but loggers get what they need to deliver the desired product, an improved residual stand.

I have used this formula to balance the loss of profit for pulp against the value of sawlogs in my own work, as well as on jobs that I supervise for clients. Logger sells firewood for $50/cd on the landing, but it costs $80/cd to get it out. LO loses $ there, but $ are available from the profit from sawlogs sold for more than contracted logging fees.

I have seen too many marginal harvesting jobs because loggers are cutting themselves thin in orderr to be competitive, which is understandable, but from my experience the only way for a LO to get the work they deserve is to make sure the operator gets the income they deserve. Don’t cut yourself short or you won’t be able to separate yourself from the competition.

I can email you this in a word.doc so that you can cut and paste any portions that apply to what you are doing.

Carl

Timber Sale Contract

This contract made this _____ day of _________________, 20___, between ____________________ ____________________________________________, party of the first part, hereinafter called Owner, and ______________________________________________________________________________________, hereinafter called the Purchaser.

Witnesseth that in consideration of the premises hereof, the Owner does hereby sell to the Purchaser, and the Purchaser does hereby purchase from the Owner, a quantity of timber located on the Owner’s property in the town of ____________________, Vermont, hereby sold and hereinafter described and identified, subject to all the terms, conditions, and stipulations set forth.

1. All trees designated by marking with blue paint at breast height and at the stump shall be cut, except that removal of a limited number of previously undesignated trees, necessary for the construction and use of roads and trails, or due to hang-ups or suspended tops, will not be in violation of this provision.
2. Title to all timber included in this contract shall remain in the Owner’s name until it has been severed and paid for. Owner shall retain security interest in all logs and wood until paid for by Purchaser.
3. All tree marked must be cut, except those trees marked with an “X” in paint, and marked cull trees of excessive diameter, which may be girdled or removed at the discretion of the Purchaser.
4. All stumps shall be cut below a height of 12” above the ground level.
5. All trees cut shall be utilized to the maximum practical extent for sawlogs, pulpwood, and/or fuelwood. All broken and/or sprung trees will be cut to the ground.
6. All un-merchantable material shall be left in the woods. Tops will be lopped to lay on the ground below a height of three (3) feet, and bole-wood will be slashed in such a way that the un-harvested material will not increase fire hazard, nor impede access for recreation or future harvesting.
7. The Owner reserves the right to sell all un-merchantable material from the sale area, provided that the removal of such material does not interfere with the operation of the Purchaser.
8. Harvesting shall be limited to the designated sale area, described as stand(s) #__________ of the Owner’s forest management plan (map attached), and/or bounded by blazed property lines, pink ribbon, and/or trees marked with three (3) horizontal lines of tree-marking paint.
9. Due care shall be used in logging so as not to damage or destroy young growth, or un-marked trees that will make up the residual stand after harvest.
10. All skid trails shall be maintained and drained during operations, and will be smoothed, drained, and water-barred and left in a condition satisfactory to the Owner before completion of logging operations.
11. Landing areas shall have adequate drainage that will be maintained during operations, and they will be smoothed and have all logging debris and buttings removed, as well as being seeded with conservation mix (or desired seed for grass crops in fields) and mulched before completion of the operation.
12. Purchaser is authorized to construct logging roads of ingress and egress, landing areas, and skid trails for the purpose of transporting logs from the property subject to the approval of the Owner. Location of primary skid trails and landings will be designated by blue ribbons and blue paint marks on trees.
13. Purchaser has the right to enter upon the property to cut and remove marked trees. This includes the right to use necessary equipment to complete the job, subject to any restrictions specified elsewhere in this contract.

Timber Sale Contract (cont.)

14. Purchaser agrees to conduct the harvesting operation with as much care as possible, and in a proper workman-like manner, and to leave no un-natural debris at the end of the operation, provided that no liability shall be attached to the Purchaser for damage or debris which may be said to be customary in the harvesting of timber and cordwood. Purchaser shall deposit all un-natural litter in trash containers and shall periodically remove all such refuse from the premises.
15. All slash within twenty-five (25) feet of the centerline of the right-of-way of any public or private road, and adjoining property lines, shall be removed. In addition, slash will be removed completely from all streams. The tops of felled trees shall not be left hanging on standing trees.
16. Payment will based on the progress of cutting. Such payments will be based on mill scale. Copies of scale slips, and receipts for fuelwood, shall be provided to the Owner with payment. All timber shall be paid for within one week (7 days) of payment to Purchaser from the mill, or fuelwood customer.
17. Timber (logs) cut under the terms of this contract will be paid for in dollars per thousand board feet ($/MBF), and dollars per cord ($/Cd.) in accordance with the following rates.

Species, Product, and Mill/ Buyer

Mill Price
($/MBF-Cd)

Trucking Expense ($/MBF – Cd.)

Logging Expense ($/MBF – Cd.)

Stumpage
($/MBF – Cd.)

Mills or End-users, location and contact information listed here:

1. Fuelwood will be sold log-length from the landing. Cordage will be estimated based on acceptable average log-truck loads.

2. Sawlogs will be sold to local mills and concentration yards. Trucking expense will be paid before logging expense and stumpage value is calculated.
($Mill Price – $Trucking = $ on landing) x (% according to log grade average) = Stumpage

3. __________________________________________________________________________

4. __________________________________________________________________________

5. __________________________________________________________________________

6. __________________________________________________________________________

7. __________________________________________________________________________

Timber Sale Contract (cont.)

18. Purchaser agrees to comply with and enforce upon all employees and contractors, all applicable Federal, State, and local laws and bylaws, and regulations promulgated thereunder.
19. Owner warrants and covenants that all timber which is subject of this contract is owned by him/her free and clear of any lien or encumbrance, and that the Owner has a good right to sell the same. Owner, or Owner’s agent, and Purchaser have inspected the entire perimeter subject to this contract, and Owner warrants and covenants that said boundary is correct and genuine. In consequence of this warranty, Owner shall indemnify Purchaser of any third party claim alleging the cutting of trees not owned by Owner when in fact such cutting was within the designated perimeter.
20. The Purchaser covenants and agrees to save the Owner harmless from any and all claims for injuries and damage to persons or property, resulting from acts or omissions of the Purchaser, his agents, employees, or others under his control during harvesting operations.
21. This contract may not be assigned, transferred, sold, or made over to any other party without prior written permission from the Owner
22. The Owner reserves the right to cancel this contract, or to suspend operations on the sale area at any time, if the provisions of this contract are not being carried out by Purchaser.
23. Purchaser agrees that in any instance that his discretion may change the market, or end product of timber cut under this contract, Owner must be informed before such changes can occur.
24. The terms of this contract are completely set forth in this agreement, and none of its conditions may be varied or modified except in writing by the Owner, or his agent. Active harvesting operations are expected to commence on or about _________________________, 20___, and will continue until the designated timber has been cut and paid for, as weather, holidays, and markets dictate, to a reasonable degree, not to extend beyond ________________________, 20___, and to continue only if a time extension is agree upon and signed by both Owner and Purchaser. At the end of the above mentioned time limit, or any extension thereof, Purchaser’s right, title, and interest in the timber and cordwood described in this contract shall terminate and revert to the Owner, and this contract will terminate and expire.

This contract shall begin on the date of signature. Signed and dated this _______ day of _______________, 20_____.

___________________________________ ________________________________
Owner Witness

___________________________________ _________________________________
Purchaser Witness

**Addendum**

Harvesting under this contract will be restricted to Winter conditions due to high water table in the harvesting area, and on-going agricultural use of the landings. All active harvesting shall be concluded before the ground thaws in the spring, and the landing will be completely returned to useable condition by a date no later than April 15, as conditions and weather permit.

The Purchaser holds current and effective permits to allow for crossing the Gilead Brook during the winter harvesting season.

A performance bond of $1000 dollars will be posted by the Purchaser and will be held in escrow by the Owner’s agent, Carl Russell of Russell Forestry Services, to be returned upon satisfactory completion of this contract.

All payments for timber will be made payable to the Owner, Peter and Andrea Sault, and provided with scale slips to Carl Russell, Russell Forestry Services, 341 MacIntosh Hill Rd., Randolph, VT 05060. Telephone (802) 234-5524 e-mail rfs@myfairpoint.net

• This reply was modified 7 years, 11 months ago by Carl Russell.

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