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HomeMy WebLinkAbout58- Yellowstone Pine Road Construction and Timber Sale Contract . ~. . .' , " .' R'." , ... .. I ..... ROAD CONSTRUCTION AND TI~ffiER SALE CONTRACT THI S AG REEMENT , Made and entered into this l4th day of September A. D. 1958, by and between the CITY OF BOZEMAN, a municipal corporation of the State of Montana, in Gallatin County, Montana, Party of the First Part, hereinafter called the CITY, and YELLOWSTONE PINE, a division of the South Fork Lumber Company, an Oregon corporation, of Sweet Home, oregon, Party of the Second Part, hereinafter called the - cO!4P ANY ; WIT N E SSE T H; WHEREAS, the City owns a municipal water supply in what is ]cnovvn as the Bozeman Creek Watershed and desires to have constructed a road to Mystic L~ce which is the source of said water supply; and WHEREAS, the Company desires to purchase commercial timber .........-.--.--, in said Watershed and to build, construct, and install said road as a portion of the consideration for said timber. NOW, THEREFORE, in consideration of the mutual covenants and agreements of the parties hereto to be paid, kept, and performed by said parties, it is mutually agreed as follows, to-wit: 1. That the City agrees to permit the Company to cut and the Company agrees to cut the timber included in this contract and hereinafter specified, and the City agrees to sell and the company agrees to purchase and remove such cut timb(~r in accordance with the provisions hereof. 2. All right, title, and interest in or to any timber in- cluded in this contract shall remain in the City until it has been cut, weighed out, and paid for either as a credit upon road construction costs as hereinafter provided or in cash as herein- after provided. - ". . . ~ . , " . . .' ' , 3. As hereinbefore provided, the city agrees to sell and the Company agrees to purchase lO million board feet of commercial saw timber from city-owned lands within the Bozeman Creek Water- shed, which is all lands that drain into Bozeman Creek in Gallatin and Park Counties, Montana, at a price of $ 4.00 per thousand board feet. The sale area shall be all such lands owned by the City in the Bozeman Creek vlatershed, and the Company shall not be limited as to species of trees but may take any tree that is merchantable as hereinafter defined. The city hereby grants the Company the privilege of choosing the timber to be removed from s1..1ch lands and such timber shall be chosen and marked for cutting by the company in a manner hereinafter defined, provided that such selection shall be subject to the approval of the United States Forest. undesignated or un~ marked trees damaged in the company's logging operations shall be removed and paid for if merchantable. 4. That the Company agrees to build, construct, anc.l install a so-called pioneer road to a standard hereinafter specified, which road shall begin at the old settling basin within the area defined as the Bozeman Creek Watershed, and which shall continue along a route located by U.S.F.S. engineers to a point where a bridge is to be located across Bozeman Creek from which point the location of said road shall be laid out by company engineers, which said location shall be submitted to and approved by the U.S.F.S. and the City. 5. Said road shall be known and designated as U.S.F.S. No. 979 U. S. in Gallatin National Forest, Bozeman Creek Water- shed. 6. Said road shall be built by the company to a standard sufficient to permit the safe and practical movement of logging trucks but not to the standard normally required by U.S.F.S. roads that are used as main line logging roads in the area. Said -2- \, " ., . . . , ; ," road shall be constructed as and considered to be a one lane road . _on and turn-outs will be located and constructed to allow other vehicles to pass, which turn-outs shall be located by company engineers in an economical manner but at close enough intervals to allow reasonable traffic flow. Judgment and discretion of the Company engineers as to the number and location of turn-outs shall be acceptable to both parties. 7. The Company shall not be required to build the road above the aforementioned standard if in the sole opinion of the company engineers log handling equipment can move safely thereon. 8. No drainage ditches are to be installed by the Company except in such locations as the Company engineers may designate. Drainage culverts are to be furnished by parties other than the Company but will be permanently installed by the company in a manner suitable to the U.S.F.S. 9. The company shall not be responsible for future road improvements on said road after the road is completed to the agreed standard, and the company shall not be responsible for maintenance of said road unless such maintenance and repair shall be the result of the company's use of said road, provided that the road construction operations may continue for at least a year from the date hereof and during said period the Company shall be solely responsible for improvements to and maintenance of said road, unless prior thereto it shall be mutually agreed by and between the parties hereto that the road has been com- pleted to meet the specifications of this agreement. 10. The payment of the City'S obligation to the company for the construction of said road, including engineering costs, shall be made by allowing the company to remove from city-owned lands within the Bozeman Creek Watershed timber of a value equal to the Company's construction cost of said road as herein defined and as hereinafter determined at no cash consideration to the City, it -3- ", . " . , ~ - . ., .- being the intention of this Agreement that the actual cost of said road shall be paid by the City to the Company in timber at the rate of $ 4.00 per thousand board feet and that the Company shall not be obligated to pay the City for any timber until it shall have removed sufficient timber at said agreed price to compensate it for the total construction cost of said road. ll. The following method will be used to arrive at road construction costs by the Company. The equipment and labor charges are as follows: Equipment 1. TD 24 $ 16.50 per hour 2. TD 18 13.00 per hour 3. TD 9 7.00 per hour 4. Log Truck & Loader 8.00 per hour or 8.50 per M feet 5. Grader 8.00 per hour 6. Hough scoop 5.75 per hour 7. Dump truck 4.00 per hour 8. Air compressor 2.75 per hour 9. Power saws l.OO per hour 10. Jack hanuner .50 per hour lI. White truck .35 II mile l2. Half track .1G II mile 13. GLYIC .20 II mile 14. Bus .15 II mile 15. crummy or pickup .14 " mile .k.C!1?o r Engineer $ 3.35 per hour Faller & Bucker 2.15 per hour Cat Operators 2.40 per hour Grader Operator 2.30 per hour Above labor rates are subject to adjustment, and plus the following payroll taxes; vacation 4.000% Soc.Sec. 2.250% ** St. Unemploy 2.700% Fed. n .300,% Ind.lns. 3 68301 ** , I~ Total 12.933% ** Subject to rate changes After all above costs plus miscellaneous items such as dynamite, drill bits, and so forth have been added and a total arrived at, an additional amount equal to 11% of this total will be added to -4- ". .. . . " . ,.. , .. , . . . , .. cover cost of salaries of administrative personnel, bookkeeping and other miscellaneous items. An additional charge of 13% will be added to cover profit and risk. This grand total is the amount of credit toward the payment of timber that will be allowed by the City. 12. The Company's construction cost records may be audited at the Company's office in Belgrade, Montana, by the proper City personnel at any time and on completion of the road construction. The City shall appoint a competent person who has the authority to approve said records if in his opinion these records are in order. The City shall make a preliminary audit of the Company's cost records to date within thirty (30) days after the date when the Company notifies the City that it has suspended road construc- tion work for the winter 1958-59, and the City shall make a final audit of the Company's cost records as soon as practicable after the Company notifies the City of final completion of the road in 1959, but in no event will such final audit be delayed more than sixty (60) days after receipt of such notice. 13. Timber removed in that portion of the road construction which is on U.S.F.S. land shall be paid for directly by the Company to U. S . F' . S. under separate agreement with the U.S.F.S., and the removal of merchantable logs from that portion of road construction shall be the responsibility of the Company. 14. The removal of merchantable logs from the right-of-\~ay on that portion of the road which passes through city-ovmed lands shall liJ,ewise be the responsibility of the Company. If possible, said logs shall be removed from the right-of-way within one ( 1) year from the date of completion of said road and if such logs are so removed the quantity and value thereof shall be determined by weight in the method herein provided. If such logs are not removed within one ( l) year from the date of completion of said road, the -5- --, ( . . . . .. . . . . . . .' .", , " quantity and value thereof shall be determined by scaling by a company representative and a City representative, such scaling and settlement to be made on the ground. 15. The company shall not be required to remove from the right-of-way any timber other than that strictly necessary to construc"t said road to the agreed standard, and merchantability shall be the same for right-oE-l,.vay timber as for other timber removed from the City property. l6. After completion of the aforementioned road, the Company shall have ten years from the date of such completion and acceptance of said road in which to remove 10 million board feet of timber herein contracted to be sold and purchased. The time of cutting shall be in the discretion of the Company, and subject to approval of the U.S.F.S. The Company shall have the privilege of changing the logging method and rate to suit its own needs, provided that within a period of three years from the. date of this contract the company shall choose and mark for cutting sufficient timber to meet the agreed volume heretofore mentioned in this contract, pro- vided that if it is necessary for the Company's outting timber to be marked sooner than three years in order for the City to negotiate further sales of timber, the Company agrees to choose and mark said timber at the request of the City. 17. The Company may only remove timber from not to exceed 50% of the land owned by the City in ,vhich there is merchantable timber. The portion selected to be cut shall never exceed forty (40) acres in anyone cutting plot unless specifically agreed to by all parties. All merchantable timber as hereinafter defined within marked areas is subject to removal by the Company. Bo.undaries of selected cutting areas shall be clearly marked by the company engineer with paint or signs. Bet\'leen cutting bloc}~s suitable strips of residual timber will be left. Location of the -6- , i . . , . . . .- ,.. , " , ," . cutting blocks will be done with the consideration of water- shed control, timber management, and logging economics. Strips of timber 75 feet wide will be left along all major live streams. Non-merchantable timber within the blocks will be left intact when possible. Merchantable timber is herein defined for the agreement as: All live green sound timber suitable for standard lumber manufacturing within the following sizes and rules: a. Minimum diameter breast height (4.51 above the ground) 12" in diameter for Douglas Fir, Engleman Spruce and Balsam Fir, and S" for Lodge pole Pine. Smaller logs than those covered by this minimum may be taken at the discretion of the Company and settled for at the rates herein specified. b. TOp minimum diameter: Logs will be taken to these top diameters (inside bark) , Lodgepole Pine - 5.6", Douglas Fir, Engleman Spruce and Balsam Fir - 8". c. Minimum merchantable logs shall consist of: 16 foot in leng-th plus 6" of trimming allowance which will scale minimum of 15 board feet net scale per log and at least 50% net sound wood considering rot, excess limbiness and sweep (as defined in U.S.F.S. Log Grade Rules). Logs containing large or heavy limbs on all sides for their full length shall be considered culls and ,.,ill not be taken. d. Tree length - Merchantable trees must contain at least 24 feet of merchantable log. l8. Additional timber over and above that required to pay for the road may not be removed until the company pays to the city an amount equal to the value of the timber estimated to be removed T~li thin the ensuing 30 day per iod, and such payment shall be made by the Company to the city in advance of such separate 30 day period. If the amount removed exceeds the amount paid for under said estimate, The company must discontinue logging -7- , , . . . , . . . . . , "' . , .. . operations until such excess is paid and another 30 day advance paymen Jc is made. 19. The Company will use a state approved scale to weigh truck loads of logs as they are delivered to the company plant to determine net weight, and this scale is to be operated by a person employed by the company. The City may, if desired, have an observer at the company weight point to check weights. On basis of weight, ll,OOO pounds shall for the purpose of this contract constitute 1,000 board feet. The company shall have the privilege of delivering the logs fronl city land to places other than .the Company mill at Belgrade, Montana, and weights from any State approved scale shall be accepted by both parties. In the event logs are to be delivered to a point where a scale is not available some other method of arriving at the volume removed from City lands might at that time be decided only by agreement between city and company. 20. The Company shall have at all times the privilege to go upon the City lands and any road within the WaterShed for the purpose of logging and log removal or any travel that pertains to Company interest within the Watershed without payment of any fee to the City for such a privilege. Any spur built by the company shall be for the exclusive use of the Company during Company logging operations over said spur mccept that other logging operations on U.S.F.S. lands may proceed at the same time provided that other operations share in the maintenance of said spur and share all other costs pertaining to this road in direct relations to their percentage of use. 2l. The city agrees to limit the use of all roads in its lands to logging operations during the term of this agreement, other than city-owned vehicles, U.S.F.S. vehicles, and vehicles belonging to authorized contractors, or their employees, worldng on the Mystic Lake, and the Company shall not be liable for any -8- ..... I . . .. .. , . . . .., , ''0 :. ~,- . damages caused by accidents occurring on logging roads if such use provision is violated. In the event that other vehicles haul timber over these roads, the owners of such vehicles will become proportionately responsible for maintenance of the roads, the ratio of the maintenance to be determined by joint agreement of the City and the U.S.F.S. 22. For the reason that there is considerable risk to the Company due to timber loss by fire, insect kill, or wind damage, and for the reason that during the term of this Agreement better methods may be developed for removing timber from the land, the City will, upon application by the Company and by mutual agreement of the partie~make other timber areas on city-owned land avail- able for logging in lieu of those marked by the Company for cutting if such losses or better methods should develop. 23. In the event any timber included in this contract is destroyed or damaged to the extent that it is unmerchantable by fire, wind, flood, insects, disease, or similar cause, the party holding title to the destroyed or damaged tinwer shall bear the loss in stumpage. and there shall be no obligation on the part of the city to supply or on the part of the Company to accept and pay for other timber in lieu of that destroyed or damaged, provided that if such timber is so destroyed on city- owned lands and there is other city-owned land in the said Water- shed with available timber which has not so been destroyed or damaged and the cutting of which will not damage the area as a watershed, the company shall have the right to harvest timber from those lands up to the amount and on the terms herein pro- vided. 24. In all logging operations whether in road right-of-way or additional logging, the company shall not be responsible for fire damage within the Bozeman Creek 'datershed, unless it is caused by the negligence of the company, or its employees or sub- contractors. In no event shall the company be responsible for fire -9- .... . . . . " -, . " . , . . . . damage in an amount in excess of $ 50,000.00 , and then only if caused by the negligence of the Company, or its employees and subcontractors, and the Company agrees to carry insurance for such damage in an amount of at least $50,000.00 to protect the City in case of such fires. When so requested, the Company shall join with the city in preparing a fire plan which shall set forth in detail the plan for the prevention, control, and extinguishing the fires in the Bozeman Creek drainage. The preparation of said plan or anything contained therein shall not relieve the company from any other responsibility under the terms of this Agreement. The provisions of this paragraph shall not be construed as relieving the Company of fire suppression costs for which they are otherwise liable under the Montana state law. 25. The Company shall comply with, and shall require their employees, subcontractors and their employees, engaged in the performance of any part of this Agreement to comply with the requirements of the forestry laws of the State of Montana and any fire protection rules applicable to their operation. 26. Management of logging will be done by the Company. Suggestions by the City may be submitted in writing to the proper Company officials. When so requested by the City, the Company shall, before the start of logging operations within the Bozeman Creek drainage, and prior to the start of operations, each year thereafter, submit to the City a plan of operations which shall be followed except as modified in writing by the - Company. The Ci ty.:may require that operations begun on any subdivision of the sale area be completed before logging may begin on other subdivisions. It is agreed that logging methods to be used are as follows: a. Skidding or yarding shall be done by the use of tractors, except on steep or rocky slopes; then jammers, horses, -10- ... .( . - , . . -, .,. . .", , .. . . . or other means shall be used. b. Maximum stump height shall be l2 inches on the high side except where forked trees occur at the stump level and no wood will be lost by higher cutting. c. All operations of the Company under this Agreement, including the construction of roads and other facilities and the cutting and removal of tinwer, shall be so conducted as to minimize, so far as practicable, the damage to stream courses and stream sides within the sale area. Stream courses in or adjacent to the sale area shall be cleared of logs, chunks, and debris, resulting from operations under this contract, which may affect the natural course of the stream. 27. During all operations under this agreement, the Company shall take all practicable precautions to minimize soil erosion and damage to the soil, including, but not limited to: a. Prevention of gullying of roads and skid trails. b. Protection of cover, soil, and water conditions in natural meadows. c. Refraining from operation of equipment when ground conditions are such that excessive damage will result. Temporary drainage structures and earth fills in live and intermittent stream channels shall be removed after logging to prevent soil washing; provided, that where adequate permanent metal or concrete culvert is installed, such removal will not be required. In periods of above average runoff, such as during the spring ... snow melt or heavy rains, the company shall inspect and open all "-",,".' ...,',....!".,.. culverts and drainage structures, construct special cross ditches for road runoff, and take other measures needed to prevent soil erosion and siltation of streams; provided, that this requirement shall only apply to logging roads and is not applicable to the regular Mystic Lake Road. -11- "" ,. 4 . . , . ' .\ , . . " .. . . . Not later than 30 days subsequent to the completion of logging on each block or subdivision of the area covered under this Agreement, the company is required to outslope or construct diagonal drainage barriers and drainage dips in all roads and skid trails located on gradients above 3% to provide direct drainage across the roadway, and such other work as is needed to reduce water concentration to the practicable minimum. 284 The Company is authorized to construct and maintain on city-owned lands, all roads, bridges, and other transportation facilities needed for the cutting and removal of the tinmer in- cluded in this agreement. Such roads shall be designed, con- structed and maintained by the company with all reasonable precautions to minimize erosion and damage to city-owned lands and values. If spur roads are extended and developed to such standard as required by the United States Forest Service to become a part of their main road system, an agreement may be made by the Company to cover excess costs beyond normal cost of construction of spur roads. 29. On all lands on which they cut timber and in accordance with Montana State law, the Company shall currently deposit with the State Forester 75 cents per thousand board feet for all timber cut, removed, and weighed, for the purpose of slash disposal within the Bozeman Creek drainage. Such amount shall be recognized as an addition to the dollars per thousand board feet as listed in Paragraph 10 of this Agreement. To facilitate disposal of slash, all timber on areas designated to be clear-cut shall be felled in such a manner that the tops of the felled trees remain within the clear-cut areas. If .necessary, in the judgment of the city, a fire break approximately 40 feet in width shall be constructed along the high hazard perimeter of each clear-cut area prior to the completion of logging. -l2- ...., . ~ ~ ~,., . " . , -" , I .' '. , . 30.. The Company may at its option extend the cutting period for an additional five years if in the opinion of the U.S.F..S. and the City, no damage to timber would result in such delay.. 3l. When the performance by the Company under this contract has been completed for any tract of land on which the Company has completed logging, notice shall be given to the City, and, if no protest is made by the City within 15 days, such logging shall bp considered to be accepted by the City. 32.. The City agrees to sell no timber in addition to the lO million feet herein contracted for to any other person, or r.. persons, for a price less than said tinwer is offered to the Company, and this right of first refusal by the Company shall continue 15 years from the date hereof. If the Company fails or refuses within 45 days of an offer to purchase said timber at the price offered it may be sold by the City to other purchasers providing that it is not sold at a price less than offered by the I Company. 33. The Company hereby reserves the privilege of selling or assigning any or all rights granted to it by the terms of this contract at any time during the term hereof, and the City shall not sell or otherwise convey the lands involved herein without such sale being subject to the rights of the Company herein. 34. The Company shall not be responsible for any taxes on the timber lands herein mentioned or the timber thereon so long I as it is in place. 35. The City of Bozeman agrees to pass an appropriate I resolution authorizing its Mayor and Clerk to execute this contract , ._~,- l on behalf of the City of Bozeman. I 36. The city may, upon reconsideration of the conditions r existing at the time of this contract and in accordance with which the terms of this contract were fixed, and with the consent of the Company, terminate this contract, but in the event of such -13- ... \' ..~ ~ - . ....I~~'.. -4t '" I.~ 11Io .4.. ", ~. termination, the Company shall be liable for any damages sustained by the City arising from the Company's operations hereunder. If the Company breaches any of the conditions of this contract, the City may serve written notice of such breach upon the Company and if such breach is not remedied within 30 days after such notice the City may suspend this contract and the Company's operations thereunder until such breaches are cured. 37. The Company, or its agents or employees, shall not trespass or cut timber on lands other than those owned by the City of Bozeman in said Watershed, and if the Company shall commit such trespass or do such cutting, it shall be solely responsible for all damages caused thereby, and the Company agrees to hold the City free and harmless of and from any liability on account of such trespass or cutting. 38. In the event that trespassers have trespassed or cut timber upon city-owned lands which the Company has the right to cut under this contract, the City agrees to mal;:e an equal amount of other tinilier available to the Co~)any for c tllng. IN WITNESS WHEREOF, the said Company has caused its corporate name to be subscribed and its corporate seal to be affixed by its proper officers thereunto duly authorized, and the City has hereunto set its hand by its Mayor and Clerk of the City Commission, each thereunto duly au~horized, and has caused its corporate seal to be affixed, both as of the day and year first hereinbefore written. YELLOWSTONE PINE A division of the South Fork Lumber Co., ATTEST, .. an oZ. co~. iO~ 4 " _ (_";);;\ /. ..[ B'~.. ...' ~~--<" p ..., /;-// /. .(,....;:;;.. "'~.I-.~.. ~~ v --7---.---"t:t.," I ---- ,M~A . '_.' 'WYY v' CITY OF BOZEMAN / 6- "l/ / .... ATTEST: By '.- L,..:r:'/()/~ .,\....,;~) ~"'-:,.-c" ,<, _~ ... " Mayor '''~~~~-7<:~~'-.-a_7L/ .. Clerk ,-, -14-