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The Oregon Administrative Rules contain OARs filed through March 15, 2014
 
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DEPARTMENT OF FORESTRY

 

FOREST LAND MANAGEMENT

DIVISION 22

FOREST RESOURCE TRUST

629-022-0030

Purpose and Trust Responsibilities

(1) Forest Resource Trust programs provide financial, technical and related assistance to nonindustrial private and other qualified private and local government Forestland owners to establish Forest Stands and improve management of Forestlands for Timber production, fish and wildlife, water quality and other environmental purposes.

(2) The Board of Forestry is responsible for the management of the Forest Resource Trust program. The State Forester is responsible for implementing the Trust program and policies adopted by the Board of Forestry.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

General Provisions

629-022-0035

Applicability

(1) Provisions in OAR 629-022-0030 through 629-022-0120 apply to both the loan and cost share programs of the Forest Resource Trust.

(2) Provisions in OAR 629-022-00130 through 629-022-0410 apply only to the loan program of the Forest Resource Trust.

(3) Provisions in OAR 629-022-0800 through 629-022-0850 apply only to the cost share program of the Forest Resource Trust.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0040

Definitions

Defined words and terms are identified with upper case letters throughout these rules. As used in the Forest Resource Trust rules and contracts and agreements entered into under the Forest Resource Trust rules, unless the context requires otherwise:

(1) “Actual Trust Cost” means the portion of Incurred Costs paid by the Trust.

(2) "Adequately Stocked" means the number and size of the trees growing within a Forest Stand meets the standards determined by the State Forester in OAR 629-022-0390.

(3) “Approved Consulting Services” means services and supplies to be provided by a Resource Management Professional approved by the State Forester as specified in a Forest Resource Trust loan program contract or cost-share agreement.

(4) “Approved Practices” means the schedule and manner of forest Practices, Environmental Restoration and related materials and supplies approved by the State Forester.

(5) “Budgeted Cost” means the expected cost of an Approved Practice or an Approved Consulting Service.

(6) “Carbon Offsets” means credits registered or used, transferred or sold to comply with air quality or other greenhouse gas mitigation measures for the purpose of compensating for emissions of carbon dioxide from other sources such as the burning of fossil fuels for energy production. Carbon Offsets are not considered to be a Forest Product as defined in OAR 629-22-040(15).

(7) A “Catastrophe” means an event or circumstance beyond the Landowner's control, resulting in all or part of a Forest Stand being incapable of producing harvest revenues to make repayment of Trust funds as described in OAR 629-022- 0300.

(8) “Consulting Services” means services and supplies to be provided by a Resource Management Professional necessary to conduct a Practice or Environmental Restoration.

(9)"Conversion" means an Operation conducted on Underproducing Forestland with the objective of removing undesirable competing vegetation, including the incidental harvest of Forest Products and establishing an Adequately Stocked, Free to Grow Forest Stand.

(10) “Direct Cost Payment” means the disbursement of Forest Resource Trust funds on behalf of the Landowner for up to 100 percent of the Incurred Cost of an Approved Practice or Approved Consulting Service as specified in a Loan Program Contract.

(11) “Ecosystem Services” means environmental benefits arising from the conservation and management of forestland, including, but not limited to, fish and wildlife habitat, clean water and air, pollination, mitigation of environmental hazards, control of pests and diseases, carbon sequestration, avoidance of carbon dioxide emissions and maintenance of soil productivity.

(12) "Environmental Restoration" means a practice that protects, restores or improves natural resources. For example, an Environmental Restoration practice may enhance wildlife habitat for a sensitive species such as the osprey or a threatened species such as the bald eagle; improve water quality, reduce water temperature, or provide large woody debris to a stream in a watershed enhancement area; improve the health of an insect damaged or diseased forest; or protect soils from erosion or degradation.

(13) “Final Harvest” means forest products are removed from the stand to create a Harvest Type 1, or 3 condition, described as:

(a) “Harvest Type 1” means an Operation that requires reforestation but does not require wildlife leave trees. A Harvest Type 1 is an Operation that leaves a combined stocking level of Free To Grow seedlings, saplings, poles and larger trees that is less than the stocking level established by rule of the board that represents adequate utilization of the productivity of the site.

(b) “Harvest Type 3” means an Operation that requires reforestation and requires wildlife leave trees. This represents a level of stocking below which the size of Operations is limited under ORS 527.740 and 527.750.

(14) "Forestland" means land zoned in a county comprehensive plan for forest or farm use that is capable of producing commercial hardwood or softwood Timber, regardless of the vegetation currently on the land.

(15) "Forest Products" include, but are not limited to, logs, poles and pilings, lumber, chips, and pulp.

(16) "Forest Stand" means the aggregation of all trees within the project boundary.

(17) "Free To Grow" means the State Forester has determined that a Forest Stand has well distributed trees, of acceptable species and of good form and has a high probability of remaining or becoming vigorous, healthy and dominant over undesired competing vegetation.

(18) "Harvest" means the Forest Products in a Forest Stand are cut, severed, removed or sold.

(19) “Incurred Costs” means the actual invoiced amount from a Provider of Services or a Provider of Supplies for completing an Approved Practice or Approved Consulting Service; or the Budgeted Cost for the Approved Practice or Approved Consulting Service; whichever is lower.

(20) "Landowner" means the Person or Persons who are eligible to apply for or receive financial and technical assistance through Forest Resource Trust programs.

(21) "Loan Program Contract" means the Forest Resource Trust contract that is signed by the State Forester and the Landowner as the means to receive financial and technical assistance under the Forest Resource Trust’s loan program.

(22) “Low Site Forestland” means Forestland that is capable of annual wood production between 20 and 119 cubic feet per acre per year at culmination of mean annual increment (Cubic Foot Site Class IV, V and VI).

(23) “No Salvage Value” means Forest Products remaining within portions of the Forest Stand affected by a Catastrophe that have no economic value or insufficient economic value such that any Salvage Operation resulting in the Harvest Type 1 or Harvest Type 3 Operation would meet the provisions of OAR 629-610-0070.

(24) "Nonindustrial Private Forestland Owner" means:

(a) Any forest Landowner who has not owned a forest product manufacturing facility within the past 6 months that employed more than 6 people; and

(b) Is not owned or partially owned, or controlled, by any Person who has owned a forest products manufacturing facility within the past 6 months that employed more than 6 people.

(25) "Operation" means any commercial activity relating to the growing or harvesting of forest tree species.

(26) "Person" means an individual, partnership, corporation, Limited Liability Company, trustee, business or other entity.

(27) "Practice" means an operational forest activity identified in the project plan that results in stand establishment or the improved management of Forestland.

(28) "Project" means the Practices, Environmental Restoration and consulting services required to establish a Forest Stand or improve the management of Forestland.

(29) “Provider of Services” means an individual, business, or other entity that has the knowledge, skills, equipment, and ability to plan, conduct or supervise Approved Practices or Approved Consulting Services.

(30) “Provider of Supplies” means an individual, business, or other entity that provides supplies used to implement Approved Practices or Approved Consulting Services.

(31) “Qualified Private or Local Government Forestland Owner” means any Landowner that holds fee title to Forestland except state or federal government agencies.

(32) "Resource Management Professional" means a Person who the State Forester recognizes as having the ability to develop Landowner plans for managing the biological, economic, and environmental relationships of forest resources, and to identify appropriate activities to manage, protect, or enhance forest resources, and who has:

(a) A degree in forestry, biology or related sciences, plus at least a year of forestry consulting or employment experience; or

(b) An associate degree in forestry, biology or related sciences, plus at least 5 years of forestry consulting or employment experience.

(33) "Salvage" means Harvest of trees that are dead, dying or damaged and deteriorating.

(34) "State Forester" means the State Forester as defined in ORS 526.031 or any duly authorized representative or any successor thereto.

(35) "Timber" means all logs which can be measured in board feet and other Forest Products.

(36) "Trust" means the Forest Resource Trust as authorized in ORS 526.700 through 526.775.

(37) “Unapproved Costs” means Incurred Costs related to Practices or consulting services that were:

(a) Not approved or budgeted for payment by the Trust; or

(b) Approved Practices or consulting services that were not completed to the satisfaction of the State Forester.

(38) "Underproducing Forestland" means any Forestland that is capable of producing at least 20 cubic feet of wood fiber per acre per year at culmination of mean annual increment, but does not currently support the minimum number of Free To Grow trees required in the reforestation rules under the Forest Practices Act.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0050

Project Criteria

The State Forester must use the following criteria to evaluate and approve proposed Projects:

(1) The highest priority Projects are those favoring:

(a) Landowners with existing Loan Program Contracts or cost-share Practice plans in good standing that request additional funds to ensure that their Forest Stands reach Free To Grow, remain Adequately Stocked or otherwise remain in an improved forest management condition;

(b) Lands with a written forest management plan that encompasses the eligible land and has been created or updated within the last 5 years;

(c) Environmental Restoration or other Approved Practices consistent with conservation plans or strategies adopted by the Oregon Department of Fish and Wildlife;

(d) Landowners who contribute funds, labor, equipment and material; and

(e) Lands covered by a Stewardship Agreement as defined in ORS 541.423.

(2) Projects of medium priority are those including:

(a) Lands that are of higher site productivity based on the region in which they occur;

(b) Larger acreages;

(c) Funding sources that are approved from other forestry incentive or loan programs;

(d) Forest Products that are harvested during the Conversion.

(3) The lowest priority Projects are those that meet the requirements of OAR 629-022-0110 but do not contain any of the priority considerations in subsection (1) and (2).

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0060

Donations to the Trust Fund

(1) Any individual, partnership, corporation, organization or government agency may contribute funds to the Trust fund.

(2) At the request of the donor, contributed funds may be targeted by the State Forester for either the loan or cost-share program and for specific Practices or Environmental Restoration in specific watersheds, counties or regions of Oregon.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0070

Carbon Offsets

In consideration of the benefits received through Forest Resource Trust programs, the State Forester may establish an interest in the rights to Carbon Offsets accruing to the Forest Stand through Loan Program Contracts or other instruments established in ORS 526.780, provided such action by the State Forester does not interfere with or affect the Harvest and sale of Forest Products by the Landowner.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0080

State Forester Exceptions to these Rules

The State Forester may issue an exception to these rules so as to approve Projects that:

(1) Assist a Landowner in meeting reforestation obligations under OAR 629-610-0070 where such approval will lead to the establishment of a Forest Stand that the Landowner agrees to manage above the reforestation stocking standards in the Forest Practices Act and in 629-610-020 or as otherwise specified in the Loan Program Contract, until the conditions in 629-022-0250, Life of the Contract, are met.

(2) Contain an Environmental Restoration that results in a non-forest native vegetation habitat condition (e.g., oak savanna) important to and consistent with conservation plans or strategies adopted by the Oregon Department of Fish and Wildlife.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

Securing Forest Resource Trust Funds

629-022-0110

Eligible Landowners and Land

(1) Only Nonindustrial Private Forestland owners with less than 5,000 acres of Forestland or up to 15,000 acres of Low Site Forestland in Oregon are eligible to receive funds under the cost-share program.

(2) Nonindustrial private and other qualified private and local government Forestland owners are eligible to receive funds under the loan program.

(3) Eligible Forestland must be Underproducing Forestland or other Forestland that is:

(a) At least 10 contiguous acres in size;

(b) Identified in the county comprehensive plan as forest, farm or conservation use;

(c) Located outside urban growth boundaries or residential zones, as identified in the county comprehensive plan;

(d) Free from all obligations under the Forest Practices Act;

(e) Free of any "no tree cutting" or “no timber harvest” covenants or encumbrances;

(f) Under no current petition before a county requesting a land use change to avoid reforestation under ORS 527.760; and

(g) Currently under no application for a claim for, or has received, economic compensation for or waiver from Forestland zoning restrictions or requirements of the Oregon Forest Practices Act.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0120

Applying for Trust Funds

(1) Any Person may apply for Trust funds, certifying on an application provided by the State Forester that:

(a) Both the lands and the Person meet the requirements of OAR 629-022-0110; and

(b) The Person requests a suspension of the reforestation requirements under OAR 629- 610-0070 when a proposed Project includes the Harvest of Forest Products.

(2) If the Person is a corporation, partnership or limited liability company, the applicant must provide the names and addresses of the stockholders, partners, members or any other Person having an ownership interest in the entity.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

Loan Program

629-022-0130

Project Plan

(1) A Landowner meeting the requirements of 629-022-0110 and 629-022-0120 must submit a Project plan.

(2) A Landowner may receive technical assistance to develop the Project plan from the State Forester, other cooperating state or federal agencies, or a Resource Management Professional.

(3) The Project plan must include:

(a) Practices and Approved Consulting Services necessary to accomplish stand establishment on eligible Underproducing Forestlands or the improved management of eligible Forestland;

(b) A Project map or maps delineating the Project boundary on at an aerial photo and also showing a legend, scale, north arrow, property boundary, topography, location of Practices, acres, and where applicable to the Approved Practices in the Project plan, vegetative cover types, soil types within the Project boundary, existing or proposed roads, and sensitive resource sites or streams that are protected by the Forest Practices Act; and

(c) A description of Environmental Restoration planned within the Project boundary and the source of funding for the Practices.

(4) The Project plan must also include for each Practice described in the Project plan :

(a) Specifications for the Practice;

(b) A time schedule for completion;

(c) Budgeted Costs; and

(d) A description of any Forest Practices Act rules that need to be followed.

(5) When the Landowner retains a Resource Management Professional to implement a Project, the Project plan must include the Resource Management Professional fees described in OAR 629-022-0230.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0140

Approval of a Proposed Project

(1) The State Forester must use the information in the Landowner's Project plan, described in OAR 629-022-0130, in a point rating system based on the Project criteria in 629-022-0050, to select Projects for funding, subject to the requirements of 629-022-0150.

(2) When a Project is selected for funding, the State Forester must approve all Practices, Environmental Restoration, consulting services and Budgeted Costs described in the Project plan in OAR 629-022-0130(3), (4) and (5). Budgeted Costs and fees are subject to the limitations in 629-022-0220 and 629-022-0230.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0150

The Trust Contract

(1) A Landowner receiving Project approval for Trust funding under the loan program must execute a Loan Program Contract with the State Forester.

(2) The Loan Program Contract must include:

(a) An approved Project plan;

(b) Financial agreements for repayment of Trust funds under OAR 629-022-0300 through 629-022-0410; and

(c) A security instrument, if required by the State Forester, described in OAR 629-022-0160.

(3) No work may begin on the Practices described in the Project plan that are subject to Direct Cost Payments by the Trust until the contract is signed by all parties.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0160

Trust Security Instrument

(1) The Landowner may be required by the State Forester to provide good and sufficient collateral to secure repayment of all funds paid to the Landowner from the Trust.

(2) Collateral must be in the form of a a general lien upon all Forest Products grown or growing within the Project boundary or boundaries and proceeds derived therefrom as specified in ORS 526.740.

(3) Costs and fees related to the collateral and the security instrument, such as title policy premiums and escrow fees, must be paid from Trust funds but may not be used to determine final payback amounts described in OAR 629-022-0300 through 629-022-0320. These costs and fees are subject to repayment following a breach of contract.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

Establishing a Forest Stand

629-022-0200

Implementing the Project Plan; Payments

(1) The Landowner must implement the Practices in the Project plan and notify the State Forester when an Approved Practice or an Approved Consulting Service, or a part of a Practice or service, described in the Project plan is complete.

(2) To request a Direct Cost Payment, the Landowner must submit written invoices for the Incurred Cost of the completed Practice or consulting service notified in section (1) of this rule.

(3) The State Forester must disburse Trust funds to the land owner as Direct Cost Payments when the State Forester certifies that a Practice is complete to the specifications and within the Budgeted Costs approved in the Project plan in OAR 629-022-0140.

(4) Actual Trust costs must be used to determine final payback amounts described in OAR 629-022-0300 through 629-022-0320.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0210

Landowner Obligations

(1) The Landowner must:

(a) Complete all Project Practices described in the Project plan;

(b) Manage the Forest Stand in an Adequately Stocked and Free To Grow condition, as defined in OAR 629-022-0390;

(c) Comply with forest Practices standards required by state and federal law except for planting standards, which may be more than the required state minimums;

(d) Report any adverse changes in the condition of the Forest Stand to the State Forester; and

(e) Notify the State Forester before commencing any forest Operations.

(2) The State Forester may periodically perform compliance inspections on all Practices described in the Project plan. The State Forester must have access to all lands described in the Project plan to monitor, evaluate or certify as complete the Practices described in the Project plan.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0220

Project Rates and Costs

(1) Costs for Approved Practices or Approved Consulting Services described in the Loan Program Contract must be within Budgeted Costs determined by the State Forester, based on the prevailing rates and wages in Oregon.

(2) Project costs paid from the Trust fund may not exceed the Project costs approved in OAR 629-022-0140(2), unless the Landowner requests additional Trust funds, and provides evidence justifying additional Trust funds, prior to the completion of the Practice.

(3) The State Forester may approve additional Trust funds when:

(a) The requirements of section (2) of this rule are met; and

(b) The Landowner agrees to amend the contract and the payback amounts, described in OAR 629-022-0300 through 629-022-0320 to reflect the higher Trust fund expenditures.

(4) The Trust fund may not pay for:

(a) Purchase of capital or expendable items, such as vehicles, ongoing road maintenance, sprayers, shovels, planting hoes, saws or safety equipment; or

(b) Landowner labor, materials or equipment.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0230

Resource Management Professional Fees

(1) Resource Management Professional fees for Approved Consulting Services may be paid from Trust funds for field and office work required to write a Project plan described in OAR 629-022-0130 and to supervise the implementation and completion of all Practices in the Project plan described in 629-022-0130.

(2) The fees in section (1) of this rule must be subject to:

(a) The Landowner executing the contract under OAR 629-022-0150 and 629-022-0160; and

(b) The Landowner submitting invoices for the professional fees charged for the Approved Consulting Services under OAR 629-022-0200.

(3) All Resource Management Professional fees paid from the Trust fund must be included in the Actual Trust Costs to determine final payback amounts described in OAR 629-022-0300 through 629-022- 0320.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0250

Life of the Contract

The Loan Program Contract between the Landowner and the Trust must be terminated when:

(1) The Landowner makes full payment described in OAR 629-022-0300; or

(2) A Catastrophe destroys the entire Forest Stand, leaving No Salvage Value; or

(3) Two hundred years, or as otherwise specified in the contract, elapse since the execution of the original contract.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0300

Repaying Trust Funds

(1) The Landowner may terminate the Loan Program Contract at anytime during the life of the contract by repaying all Trust funds, including interest.

(2) The State Forester must calculate the amount due by using the Actual Trust Costs paid to the Landowner to establish the Forest Stand described in the Loan Program Contract, with annual interest at the rate determined in OAR 629-022-0320. Interest is simple, prorated to the nearest full month, and begins on the date that payment or payments are made to the Landowner.

(3) When there is a partial Harvest of Forest Products at any time during the life of the Loan Program Contract, the Landowner must make payments of 50 percent of all net receipts, until all the Trust funds, including interest are paid.

(4) When there is a Final Harvest of Forest Products from the Forest Stand, the Landowner must make full repayment of the lowest of the following:

(a) The Actual Trust Cost plus interest attributable to that portion of the Forest Stand so harvested; or

(b) The remaining amount of the Actual Trust Cost plus interest; or

(c) The total of all net receipts.

(5) Repayment of Trust funds is first applied to the Actual Trust Cost paid to the Landowner and then to the accumulative interest, until repaying all the Trust funds, including interest.

(6) The Landowner must make payments to the State Forester, to be deposited in the Trust fund, within 60 days of completing the Harvest Operation triggering the need for payment.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0320

Interest Rate

(1) The rate is 4.0 percent, simple interest.

(2) The interest rate must be fixed when the Loan Program Contract is executed and may not change during the life of the contract.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.700 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 4-2006(Temp), f. & cert. ef. 5-2-06 thru 10-28-06; Administrative correction, 11-16-06; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0380

Catastrophe; Salvage Adjustments

(1) A Catastrophe may be caused by:

(a) Insects, diseases, fire or other casualties and accidents; or

(b) Storms, floods, droughts and other unusual environmental conditions.

(2) When a Catastrophe damages individual trees or groups of tress within the Forest Stand:

(a) The Landowner must pay the appropriate amount on Salvaged Forest Products, as described in OAR 629-022-0300(3); and

(b) The State Forester must adjust the Forest Stand boundaries to reflect the Forest Stand capable of producing Harvest revenues. The Forest Stand boundaries may not be adjusted to exclude land with unharvested merchantable Forest Products.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0390

Adequately Stocked Forest Stand

The Landowner must manage Forest Stands established with Trust funds at or above the reforestation stocking standards in the Forest Practices Act and in OAR 629-610-020 or as otherwise specified in the contract, until the conditions in 629-022-0250, Life of the Contract, are met.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

Forest Resource Trust Administration

629-022-0400

Landowner Breach of Loan Program Contract

A Loan Program Contract breach occurs when the Landowner fails to perform any term of the contract.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0410

Remedies for Breach of Contract

Remedies for Breach of Loan Program Contract

(1) The Landowner must pay liquidated damages for a breach of contract by repaying all Trust funds, with interest as calculated in OAR 629-022-0300(2).

(2) At any time Forest Products are harvested in breach of contract, the Landowner must pay liquidated damages in the form of a breach penalty.

(3) In addition to any other right as provided by law, the State Forester may assign a liquidated and delinquent account, as defined by the Oregon Accounting Manual, to the Department of Revenue or to a private collection agency.

(4) The breach penalty in section (2) of this rule may include a reasonable administrative fee to recover the cost of collection services and other related costs, as described in ORS 293.231 through 293.250.

Stat. Auth.: ORS 526.700 - 526.730 & 526.745
Stats. Implemented: ORS 526.695 - 526.775
Hist.: FB 4-1994, f. & cert. ef. 8-3-94; DOF 2-2007, f. 1-10-07 cert. ef. 1-11-07; DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

Cost-Share Program

629-022-0800

Scope

(1) Nonindustrial Private Forest Landowners meeting the requirements of OAR 629-022-0110 may apply pursuant to 629-022-0120 for financial assistance under the cost-share program for the purpose of planning for or carrying out Practices, Consulting Services or Environmental Restoration that result in the establishment of Forest Stands or in the improved management of Forestlands for timber production, fish and wildlife, water quality and other environmental purposes.

(2) The State Forester must maintain, and revise as necessary, a list of cost-share components that exemplify the Practices, Consulting Services and Environmental Restoration that are eligible for financial assistance under the cost-share program.

(3) Depending on the agreements entered for funds received by the Forest Resource Trust pursuant to ORS 526.725, the State Forester may place limits on the scope of cost-share components available for financial assistance under the cost-share program or place additional years on the requirement to maintain the effectiveness of the cost-share Practice as specified in OAR 629-022-0820(8) and 629-022-0840(2).

(4) Landowners cannot apply for financial assistance under the cost-share program for Practices, Consulting Services or Environmental Restoration that have already been completed, or are in the process of being completed, at the time of application. Further, Landowners may not begin completing any Practices, Consulting Services or Environmental Restoration being applied for until the State Forester has approved or denied the Landowner’s application under OAR 629-022-0810.

(5) Practices, Consulting Services or Environmental Restoration that are likely to result in Ecosystem Services that have a reasonable chance of securing a net economic benefit from payments for these services within the maintenance period for the effectiveness of the Practice as defined in OAR 629-022-0820(8) are not eligible for cost-share reimbursement payments.

Stat. Auth.: ORS 526.700 - 526.730
Stats. Implemented: ORS 526.703
Hist.: DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0810

Approval

(1) Landowner applications for financial assistance under the cost-share program may not be approved until the State Forester has determined that cost-share program funds are available.

(2) The State Forester must evaluate the information in the Landowner’s cost-share application to determine a project’s priority for funding based on the Project criteria in OAR 629-022-0050 subject to any limitations set-forth under 629-022-0810(3).

(3) The State Forester must maintain, and periodically update, a list of cost-share rates by cost-share component that exemplify the not-to-exceed cost-share reimbursement limits available to Landowners applying for financial assistance under the cost-share program.

(4) The State Forester must maintain, and periodically update, a list of Landowner self-labor and self-equipment use rates that exemplify the not-to-exceed cost-share reimbursement limits available to Landowners applying for financial assistance under the cost-share program.

(5) State Forester approval of the Landowner’s cost-share application constitutes an agreement between the Forest Resource Trust and the Landowner that obligates the Forest Resource Trust cost-share program funds necessary to cover the sum of the not-to-exceed cost-share reimbursement limit for each cost-share component applied for and approved.

(6) For applications that are not approved, the State Forester must notify Landowner’s of such. The State Forester must specify the reason for denying the Landowner’s application including, but not limited to, a lack of available funds, low ranking of the application with respect to the Project criteria in OAR 629-022-0050, or incompleteness of the application.

Stat. Auth.: ORS 526.700 - 526.730
Stats. Implemented: ORS 526.703
Hist.: DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0820

Practice Plan and Other Landowner Obligations

(1) Upon approval of the Landowner’s cost-share application, the State Forester must prepare a Practice plan that provides the performance specifications and time period for completing each cost-share component approved in the Landowner’s application.

(2) The Practice plan will list all the approved cost-share components and the corresponding cost-share not-to-exceed reimbursement rates for the approved application.

(3) The Practice plan is the basis by which the State Forester will determine acceptable performance by the Landowner for completing the cost-share component approved in the Landowner’s application.

(4) Landowners agree to complete all the cost-share components listed in the Practice plan.

(5) Landowners can request modifications to the Practice plan based on new information not available at the time of application or a change in site conditions since the time of application.

(6) The State Forester is not obligated to approve the Landowner’s requested modification to the Practice plan if the State Forester determines:

(a) The new information or the change in site conditions does not require a change to the Practice plan; or

(b) Funds to pay for the Practice plan modifications are not available.

(7) Landowners are responsible for obtaining the authorities, rights, easements, or other approvals necessary to implement the approved cost-share components of the Practice plan in accordance with all applicable laws and regulations including compliance with the Oregon Forest Practices Act.

(8) Upon receipt of a cost-share reimbursement payment, the Landowner agrees to maintain the effect of the implemented Practices or Environmental Restoration on the Forestland for at least 10 years from the year the cost-share reimbursement payment was received.

Stat. Auth.: ORS 526.700 - 526.730
Stats. Implemented: ORS 526.703
Hist.: DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0830

Payment Procedures

(1) For the State Forester to approve a cost-share reimbursement payment, each cost-share component in the Practice plan must be completed according to the performance specifications and the time period identified in the Practice plan.

(2) To initiate the payment process, the Landowner must notify the State Forester of any completed cost-share component, identified in the Practice plan, for which cost-share reimbursement payment is being requested.

(3) The State Forester will review the completed cost-share components to certify that the components were completed according to the performance specifications and within the time period specified in the Practice plan.

(4) Upon certification by the State Forester that the cost-share components were completed according to the Practice plan, the State Forester will calculate the amount of the cost-share reimbursement payment to the Landowner using the appropriate cost-share rate, but not for an amount exceeding the “not-to-exceed reimbursement level” set in the Practice plan. Payment will be made payable to the Landowner.

Stat. Auth.: ORS 526.700 - 526.730
Stats. Implemented: ORS 526.703
Hist.: DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0840

Breach of Practice Plan

(1) Any cost-share reimbursement payments under OAR 629-022-0830 are subject to repayment by the Landowner to the Trust if the Landowner fails to complete any cost-share components as specified in the Practice plan, and:

(a) Such incompletion results in a failure in stand establishment; or

(b) Does not improve the management of the forestland subject to the cost-share application.

(2) Failure to maintain the effect of the implemented Practices or Environmental Restoration on the Forestland for at least 10 years from the date the last cost-share reimbursement payment was made will require the Landowner to repay all cost-share reimbursement payments to the Trust unless the State Forester determines that such failure was due to factors beyond the Landowner’s control.

Stat. Auth.: ORS 526.700 - 526.730
Stats. Implemented: ORS 526.703
Hist.: DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

629-022-0850

Special Circumstances

(1) When the State Forester denies a cost-share reimbursement payment because the completed cost-share component does not meet the performance specification or time period in the Practice plan, the Landowner may resubmit the payment request. The State Forester must approve the payment request when one of the following conditions has been met:

(a) The Landowner repeats the completion of the cost-share component and meets the performance specification in the Practice plan;

(b) The Landowner establishes that a reasonable effort was made and failure to meet the performance specification in the Practice plan was due to factors beyond the Landowner’s control; or

(c) The Landowner establishes that the cost-share component, as performed, does not jeopardize the stand establishment or the improved management of Forestland the cost-share component was designed to achieve.

(2) In case of death or incompetence of any Landowner, the State Forester must approve cost-share reimbursement payments to the successor in title or other persons or entities in control of the Landowner if the successor agrees to:

(a) Complete all remaining cost-share components in the Practice plan; and

(b) Meet all other Landowner obligations in OAR 629-022-0820.

(3) When the Landowner sells, conveys or otherwise looses control of the Forestland prior to completion of the Practice plan, the Landowner is required to repay all cost-share reimbursement payments to the Trust unless the new Landowner agrees to:

(a) Implement the remaining cost-share components in the Practice plan; and

(b) Meet all other Landowner obligations in OAR 629-022-0820.

Stat. Auth.: ORS 526.700 - 526.730
Stats. Implemented: ORS 526.703
Hist.: DOF 1-2009, f. 1-12-09, cert. ef 2-1-09

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