RULES AND REGULATIONS BOARD OF LAND COMMISSIONERS

Chapter 8

Section 1. Authority

1. (a) These rules and regulations are promulgated under the authority granted by W.S. 36-1-112, 36-2-107.

Section 2. Definitions

As used in this chapter:

1. (a) “Applicant” means any person or persons, firm, association, or corporation who files an “Application for Forest Products Sale” from state lands.
2. (b) “Board” means the Board of Land Commissioners.
3. (c) “Director” means the Director of the Office of State Lands and Investments.
4. (d) “Office” means the Office of State Lands and Investments.
5. (e) “Forest Products” means any portion of woody vegetation which includes but is not limited to logs, pulpwood, poles, posts, rails, railroad ties, props, Christmas trees, firewood, boughs, cones, and transplants.
6. (f) “State lands” means all lands under the jurisdiction of the Board of Land Commissioners.
7. (g) “Surface lessee” means the person or persons, firm, association, or corporation whose name appears on record in the Office as surface lessee of state land.
8. (h) “Appraisal” means the method of determining the value for forest products to be sold. Appraised value results from considering in part; the value of past sales, quantity and quality of forest products, distance to markets, road and other work requirements.

9. (i) “Bid Sale” means:

   1. (i) A forest products sale with a total anticipated value greater than five thousand dol- lars ($5,000.00).
   2. (ii) A forest products sale with a value less than five thousand dollars ($5,000.00) where two or more bidders have expressed interest in purchasing the sale.
10. (j) “Competitive Bidding” means sealed bid, oral auction or combination thereof.
11. (k) “Forest Management Sale” means a sale of forest products resulting from the salvage of material from thinning, insect and disease infestation, blow down, or fire damage where time is of the essence.
12. (l) “Personal Use Sale” means a forest products sale with a total value of two hundred fifty dollars ($250.00) or less.
13. (m) “Permit Sale” means a forest products sale having a total anticipated value greater than two hundred fifty dollars ($250.00) but less than five thousand dollars ($5,000.00).

Section 3. Forest Products Sales

1. (a) Forest products sales from state lands will be in accordance with sound forest management practices. The State Forester will prepare and submit to the Director an annual work plan that will outline anticipated forest products bid sales to be initiated during the next year.

Section 4. Application for Forest Products Sale

1. (a) An application is required for permit and bid sales not initiated by the Director.
2. (b) A complete application form will be submitted with the required application fee. Applica- tion fees are not refundable.
3. (c) If forest products are located on noncontiguous sections or parcels of state land, separate applications may be required.
4. (d) State land for which a forest products application has been made will be inspected to deter- mine if harvest of forest products is appropriate. If appropriate, the requested sale will be prepared and sold in accordance with the provisions of these rules.

Section 5. Preparation for Sale

1. (a) Forest products will be offered for sale in accordance with legal survey descriptions of the land and sold according to legal subdivisions as established by the United States Public Survey, or by metes and bounds description.
2. (b) A forest products sale may be prepared on an entire section or in individual cutting units or blocks.
3. (c) Forest products will be marked, or designated for harvest.
4. (d) Access to treatment area will be determined. Access to state lands is not guaranteed by the Board.
5. (e) The State Forester shall recommend the time period during which forest products may be harvested and removed.
6. (f) The minimum acceptable price for designated forest products will be determined by ap- praisal.
7. (g) The surface lessee will be notified prior to commencing proposed sales or management activity. The surface lessee will be given fifteen (15) days to submit written comments to operations occurring on the land.

Section 6. Purchase Price

1. (a) The purchase price of forest products is independent of administrative fees.

2. (b) The purchase price of forest products shall be as follows:

   1. (i) Personal Use Sales will be fair market value.
   2. (ii) Permit Sales will be based on the most recent competitive bidding for comparable products in the same proximity. Forest Management Sales may be sold as a Permit Sale. The Director shall prepare an informational board matter pursuant to Chapter 1.
   3. (iii) Bid Sales will be based on the minimum bid as determined by appraisal, with sale awarded to high bidder in accordance with Section 8 of these rules.

Section 7. Advertising Bid Sales

1. (a) Subject to the requirements of subsection (b), the State Forester may give notice of a forest products sale using any means deemed appropriate.
2. (b) The Forest Products Sales’ notices shall state the time, place, forest products description, sale terms, and shall be advertised a minimum of fifteen (15) days prior to the sale date. All parties known by the State Forester to be interested in purchasing the forest products, shall be informed by mail or elec- tronically.
3. (c) The cost of newspaper advertising must be paid by the ultimate purchaser of the timber.

Section 8. Competitive Bidding

1. (a) Competitive bidding for forest products from state land shall be conducted by the Director or his agent.
2. (b) No sale, made by competitive bidding shall be final until approved.
3. (c) The Board reserves the right to reject any and all bids.

Section 9. Bid Guarantee

1. (a) A Bid guarantee shall be required for Bid Sales. The bid guarantee shall be by a certified check, cashier’s check, or bank money order payable to the Office of State Lands and Investments. The bid guarantee shall be a minimum of five hundred dollars ($500.00). When the forest products contract is executed and required payments, bonds, and deposits are submitted, the bid guarantee will be applied to the payment.
2. (b) If the successful bidder does not sign the offered forest products contract and furnish the required payments within ninety (90) days of Board approval, the offered contract will be withdrawn. The successful bidder’s bid guarantee is non-refundable. An extension of time to sign the contract and make the required payments may be granted if a written request outlining circumstances is submitted and ap- proved during the ninety (90) day period.

Section 10. Performance Bonds

1. (a) A performance bond may be required for sales where the purchaser has performance obli- gations as terms of the forest products contract. Bond amounts shall be the amount necessary to cover the expense of contractual obligations but not less than ten percent (10%) of the total sale value, or five hun- dred dollars ($500.00), whichever is greater. Cash bond, performance bond or an approved, irrevocable letter of credit are acceptable.

Section 11. Permits and Contracts

1. (a) A purchaser of any sale shall execute a written contract detailing terms and conditions of harvesting, removal and payment.
2. (b) The forest products contract may be extended if the Director is notified by the purchaser in writing, at least thirty (30) days prior to expiration date and the purchaser provides valid reasons why an extension is required.
3. (c) A forest products contract may be assigned by the Director or transferred when submitted, executed, and recorded.

Section 12. Payments

1. (a) Payment shall be paid in full, or as specified by the contract, before operations can begin. Contracts may provide for payment in installments but payment shall always precede harvesting of the proportional amount of volume.

   1. (i) All payments shall be made payable to the Office of State Lands and Investments.
   2. (ii) Payment for bid guarantee, cash bonds and deposits shall be by certified check, cashier’s check or bank money order.
   3. (iii) Payment for sales may be by personal or company check, certified funds or cash.

Section 13. Slash Disposal Deposits

1. (a) Slash disposal deposits shall be required for all sales except where heavy slash accumula- tion is not anticipated. The slash disposal deposit will be used for slash disposal or refunded based upon the amount of work completed by the purchaser. Partialrefunds may be made.

Section 14. Forestry Fees

1. (a) The fee for application of forest products sales shall be in accordance with Chapter 17 of these rules.