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Federal Register / Vol. 72, No.

222 / Monday, November 19, 2007 / Notices 64991

Early Notice of Importance of Public DEPARTMENT OF AGRICULTURE lengthy, expensive, and sometimes
Participation in Subsequent impossible process of collecting default
Environmental Review Forest Service damages.
The Forest Service believes, at this DATES: The determination was made on
Extension of Certain Timber Sale November 2, 2007, by the Chief of the
early stage, it is important to give Contracts; Finding of Substantial
reviewers notice of several court rulings Forest Service.
Overriding Public Interest
related to public participation in the FOR FURTHER INFORMATION CONTACT:
environmental review process. First, AGENCY: Forest Service, USDA. Lathrop Smith, Forest Management
reviewers of draft environmental impact ACTION: Notice of contract extensions. Staff, (202) 205–0858 or Richard
statements must structure their Fitzgerald, Forest Management Staff
participation in the environmental SUMMARY: On November 2, 2007, the (202) 205–1753; 1400 Independence
review of the proposal so that it is Chief of the Forest Service determined Ave., SW., Mailstop 1103, Washington,
meaningful and alerts an agency to the there is Substantial Overriding Public DC 20250–1103.
reviewer’s position and contentions. Interest in extending certain National Individuals who use
Vermont Yankee Nuclear Power Corp. v. Forest System timber sale contracts for telecommunication devices for the deaf
NRDC, 435 U.S. 519, 553 (1978). Also, up to one year, subject to a maximum (TDD) may call the Federal Information
environmental objections that could be total contract length of 10 years. Relay Service (FIRS) at 1–800–877–8339
raised at the draft environmental impact Pursuant to the November 2, 2007, between 8 a.m. and 8 p.m., Eastern
statement stage but that are not raised finding, timber sale contracts awarded Standard Time, Monday through Friday.
until after completion of the final prior to January 1, 2007, are eligible for SUPPLEMENTARY INFORMATION: The Forest
environmental impact statement may be extension and deferral of periodic Service sells timber and forest products
waived or dismissed by the courts. City payment due dates for up to one year. from National Forest System lands to
of Angoon v. Hodel, 803 F.2d 1016, This finding does not apply to (1) individuals or companies pursuant to
1022 (9th Cir. 1986) and Wisconsin contracts that have been or are currently the National Forest Management Act of
Heritages, Inc. v. Harris, 490 F. Supp. eligible to be extended under market 1976, 16 U.S.C. 472a (NFMA). Each sale
1334, 1338 (E.D. Wis. 1980). Because of related contract term addition (MRCTA) is formalized by execution of a contract
these court rulings, it is very important contract provisions, except sales using between the purchaser and the Forest
that those interested in this proposed the Hardwood Lumber index that were Service. The contract sets forth the
action participate by the close of the 45 awarded after December 31, 2005, (2) explicit terms and provisions of the sale
day comment period so that substantive salvage sale contracts that were sold including such matters as the estimated
comments and objections are made with the objective of harvesting volume of timber to be removed, the
available to the Forest Service at a time deteriorating timber, (3) contracts the period for removal, price to be paid to
when it can meaningfully consider them Forest Service determines are in urgent the Government, road construction and
and respond to them in the final need of harvesting due to deteriorating logging requirements, and
environmental impact statement. timber conditions that have developed environmental protection measures to
To assist the Forest Service in following award of the contract, or (4) be taken. The average contract period is
identifying and considering issues and contracts that are in breach. To receive approximately two to three years,
concerns on the proposed action, an extension, purchasers must make a although a few contracts have terms of
comments on the draft environmental written request to the appropriate five or more years.
impact statement should be as specific Contracting Officer. Purchasers also Rules in 36 CFR 223.52 (Market
as possible. It is also helpful if must agree to release the Forest Service Related Contract Term Additions)
comments refer to specific pages or from all claims and liability if a contract permit contract extensions when the
chapters of the draft environmental extended pursuant to the November 2, Chief of the Forest Service determines
impact statement. Comments may also 2007, finding is suspended, modified, or that adverse wood product market
address the adequacy of the draft terminated in the future. conditions have resulted in a drastic
environmental impact statement or the The intended effect of the Substantial decline in wood product prices. Under
merits of the alternatives formulated Overriding Public Interest finding and market-related contract addition
and discussed in the statement. contract extensions is to minimize procedures, the Forest Service refers to
Reviewers may wish to refer to the contract defaults, mill closures, and the following three producer price
Council on Environmental Quality company bankruptcies. The indices maintained by the Bureau of
Regulations for implementing the Government benefits if defaulted timber Labor Statistics: Softwood Lumber
procedural provisions of the National sale contracts, mill closures, and #0811 and Hardwood Lumber #0812 in
Environmental Policy Act at 40 CFR bankruptcies can be avoided by granting the Commodity Series, and Wood Chips
1503.3 in addressing these points. extensions. Having numerous, #PCU32113321135 in the Industry
Comments received, including the economically viable, timber sale Series.
names and addresses of those who purchasers increases competition for The Softwood and Hardwood Lumber
comment, will be considered part of the National Forest System timber sales, indices indicate a major downturn in
public record on this proposal and will results in higher prices paid for such those markets began following a peak in
be available for public inspection. timber, and allows the Forest Service to September 2004 and was still on a
provide a continuous supply of timber downward trend as of September 2007,
Authority: 40 CFR 1501.7 and 1508.22;
Forest Service Handbook 1909.15, Section
to the public in accordance with Forest with the relative Softwood Lumber
21. Service authorizing legislation. See Act index decreasing by about 36 percent
of June 4, 1897 (Ch. 2, 30 Stat. 11 as and the Hardwood Lumber index
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Dated: November 13, 2007. amended, 16 U.S.C. 475) (Organic decreasing by about 19 percent, during
Tom Quinn, Administration Act). In addition, by this time. While most purchasers
Forest Supervisor. extending contracts and avoiding holding contracts with those indices
[FR Doc. E7–22571 Filed 11–16–07; 8:45 am] defaults, closures, and bankruptcies, the have received or are eligible to receive
BILLING CODE 3410–11–P Government avoids the difficult, MRCTA, an anomaly in the wood

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64992 Federal Register / Vol. 72, No. 222 / Monday, November 19, 2007 / Notices

products markets and indices used in that the ‘‘Substantial Overriding Public Interest to extend for a period of up to
contracts in the Lake States area and Interest’’ justifies the extension. one year certain contracts that had not
some other parts of the country has left As a result of continued drastic received any MRTCA. The Forest
many purchasers without this remedy. reductions in forest product prices, Service also initiated a study of the
Section 472a(c) of NFMA provides there is a Substantial Overriding Public MRTCA procedures and indices to
that the Secretary of Agriculture shall Interest in extending certain timber sale determine why they did not appear to
not extend any timber sale contract contracts. perform as expected. Findings in that
period with an original term of two Background study led the Forest Service to adopt
years or more, unless the purchaser has four different producer price indices
On December 7, 1990, the Forest from the Bureau of Labor Statistics in
diligently performed in accordance with Service published a final rule (55 FR
an approved plan of operations or the May 1998; (1) Hardwood Lumber (SIC
50643) establishing procedures in 36 24211), (2) Eastern Softwood Lumber
‘‘Substantial Overriding Public Interest’’ CFR 223.52 for extending contract
justifies the extension. The authority to (SIC 24213), (3) Western Softwood
termination dates in response to adverse Lumber (SIC 24214), and (4) Wood
make this determination has been conditions in the timber markets. These
delegated to the Deputy Under Secretary Chips (SIC 24215). However, after
procedures, known as Market Related December 2003, the Bureau of Labor
of Agriculture for Natural Resources and Contract Term Additions (MRCTA),
Environment in 7 CFR 2.59. Statistics discontinued publishing the
authorize extensions of timber sale Western Softwood Lumber index (SIC
Accordingly, based on current data, contracts up to one additional year 24214), Eastern Softwood Lumber index
the Chief has made a finding that there when qualifying market conditions are (SIC 24213), and Hardwood Lumber
is a Substantial Overriding Public met. When the MRCTA procedures were index (SIC 24211). At the same time the
Interest in extending certain sales for up established, experience indicated that Wood Chips index (SIC 24215) was
to one year. This finding does not apply the type and magnitude of lumber renumbered as PCU32113321135. In
to (1) contracts that have been or are market declines that would trigger January 2006, the Forest Service
currently eligible to be extended under MRCTA generally coincide with low published a notice in the Federal
MRCTA contract provisions, except numbers of housing starts and are Register (71 FR 3409) adopting the
sales using the Hardwood Lumber index usually indicative of substantial Softwood Lumber index 0811 and the
that were awarded after December 31, economic dislocation in the wood Hardwood Lumber index 0812 to
2005, (2) salvage sale contracts that were products industry. Such economic replace the three indices that were no
sold with the objective of harvesting distress broadly affects community longer supported by the Bureau of Labor
deteriorating timber, (3) contracts the stability, the ability of industry to Statistics. The Forest Service continued
Forest Service determines are in urgent supply construction lumber and other to rely upon the Wood Chips index,
need of harvesting due to deteriorating products for public use, and threatens now numbered PCU32113321135, to
timber conditions that have developed maintaining plant capacity necessary to gauge certain market conditions. The
following award of the contract, or (4) meet future demands for wood products three indices the Forest Service adopted
contracts that are in breach. In addition from domestic sources. The Department to gauge most market conditions,
to extending contracts pursuant to the has determined that a drastic reduction however, are not able to address market
Chief’s finding, periodic payments will in wood product prices can result in a conditions for all forest products, e.g.
be deferred for up to one year on the Substantial Overriding Public Interest biomass. Additionally, because the
extended sales. To receive an extension sufficient to justify a contract term indices are national in scope, they may
and periodic payment deferral, extension for existing contracts, as fail to address drastic declines in local
purchasers must make a written request authorized by the National Forest markets.
to the appropriate Contracting Officer. Management Act of 1976 (16 U.S.C.
472a(c)) and existing regulations at 36 Market Conditions Leading to the
Purchasers must also agree to release the
CFR 223.115(b). November 2006, Determination of
Forest Service from all claims and
Following promulgation of the rule in Substantial Overriding Public Interest
liability if a contract is suspended,
1990, the Forest Service began tracking To Extend Certain Sales
modified, or terminated, after the
contract is extended pursuant to the four producer price indices provided by The Softwood Lumber index #0811
Chief’s November 2, 2007 finding. The the Bureau of Labor Statistics as began declining, after peaking in
text of the finding, as signed by the indicators of a drastic reduction in September 2004, and with adjustments
Chief of the Forest Service is set out at wood product prices. Those indices for inflation the relative index had
the end of this notice. were the Southern Pine Dressed, declined 47.9 points or 31 percent by
Douglas-fir Dressed, Other Species September 2006. Between the third
Dated: November 2, 2007. Dressed, and Hardwood Lumber. quarter 2005 and the third quarter 2006,
Joel D. Holtrop, Beginning in the first quarter of 1994 there were five consecutive calendar
Deputy Chief for National Forest System. through the first quarter of 1996, quarters where the declines were large
Determination of Substantial government indices indicated a major enough to trigger MRCTA. This was a
Overriding Public Interest for downturn in the lumber markets substantially larger drop than the one in
Extending Certain Timber Sale throughout the country was occurring, the period between 1994–1996, when
Contracts but only the Douglas-fir Dressed Lumber the index declined about 38 points or 21
index used in contracts in Washington percent. The period from 1994–1996
The National Forest Management Act and Oregon dropped sufficiently to was also the last time there were five
of 1976 (16 U.S.C. 472a(c) provides that trigger MRCTA. Meanwhile, purchasers consecutive qualifying quarters for
the Secretary of Agriculture shall not in other parts of the country were facing MRCTA.
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extend any timber sale contract period defaults, mill closures, and bankruptcies The Hardwood Lumber index #0812
with an original term of two years or but were not eligible for MRCTA. To also began declining, after peaking in
more unless he finds that the purchaser avert these problems, the Chief of the September 2004, and with adjustments
has diligently performed in accordance Forest Service determined that it was in for inflation declined 18.6 points or 14
with an approved plan of operations or the Substantial Overriding Public percent as of September 2006. There

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Federal Register / Vol. 72, No. 222 / Monday, November 19, 2007 / Notices 64993

were three consecutive quarters marketing pulp material were not provisions, or salvage sale contracts that
beginning with the third quarter of 2005 eligible for market related contract term were sold with the objective of
through the first quarter of 2006, where additions. The principal cause of this harvesting deteriorating timber were not
the quarterly declines were large enough anomaly was due to the location along eligible for extension pursuant to the
to trigger MRCTA equal to one calendar the great lakes and Canadian border, November 2, 2006, finding. To receive
year plus one normal operating season. where competition from cheaper an extension, purchasers were required
The Hardwood Lumber index continued imported wood chips was driving prices to make a written request to the
to decline in the second and third down. As a result of these factors, appropriate Contracting Officer.
quarters of 2006, but the decline was not purchasers in the Lake States area were Purchasers were also required to agree
sufficient to trigger MRCTA. faced with high bid prices on their to release the Forest Service from all
Consequently, some hardwood existing contracts, low product prices, claims and liability if a contract
purchasers were expected to begin and no MRCTA to provide additional extended pursuant to the November 2,
facing additional hardships as the time for markets to recover or to mix the 2006, finding was suspended, modified,
MRCTA time they previously obtained higher priced timber with lower priced or terminated in the future.
expired. timber for other sources. The MRCTA
Between September 2004 and January 2007 Market Conditions
procedures were not functioning as
2006, the Wood Chips index remained expected here. Market conditions leading to the
fairly static but was on a steady rise In another example, the sale of November 2, 2006, determination of
since then. The last time the Wood biomass material has been increasing in Substantial Overriding Public Interest
Chips index had a qualifying quarter recent years with most of that material have continued to decline. Between
was the third quarter of 1997. utilized for generating electricity in co- September 2006, and September 2007,
As of November 2006, the MRCTA generation facilities. A reliable index for the relative Softwood Lumber index
procedures on softwood lumber and tracking this new product has not been dropped an additional 9.4 points
hardwood lumber sales were generally found, so most sales of biomass material bringing the total decline since
functioning as expected. Additional also use the Wood Chips index. Energy September 2004 to 57 points or 36.4
contract time was being offered for prices can differ substantially in percent. Including the third quarter of
qualifying sale, which assisted different parts of the country and don’t calendar year 2007, the Softwood
purchasers by allowing more time to necessarily follow the Wood Chips Lumber index has triggered for MRCTA,
wait for markets to recover or to spread index. Consequently, in areas where an unprecedented nine consecutive
out harvesting of high priced sales. But, energy prices have drastically declined calendar quarters, which is the longest
as was the case in 1996, there were and purchasers are holding high price sustained decline since the Forest
exceptions. timber sale contracts, they are not Service established the MRCTA
For example, in the Lake States area, currently eligible to receive a MRCTA procedures in December 1990. Between
a combination of factors contributed to because the Wood Chips index has not September 2006 and September 2007,
a more drastic decline in forest product triggered. the relative Hardwood Lumber index
prices than was occurring in other parts The Government benefits if defaulted dropped an additional 7.5 points,
of the country and/or the producer price timber sale contracts, mill closures, and bringing the total decline since
indices were not triggering MRCTA. The bankruptcies can be avoided by granting September 2004 to 26.1 points or 19.1
predominant forest products produced extensions. Having numerous, percent. But, although the Hardwood
in that area are wood chips used in economically viable, timber sale Lumber index has steadily declined, the
pulping for paper and oriented strand purchasers increases competition for rate of decline has not been sufficient to
board (OSB). Both the pulp and OSB National Forest System timber sales, trigger MRCTA for sales awarded since
sales used the Wood Chips index which results in higher prices paid for such January 1, 2006. Between September
had not had a qualifying quarter for timber, and allows the Forest Service to 2006 and September 2007, the Wood
MRCTA since 1997. National Forest provide a continuous supply of timber Chips index continued an upward
System timber sales in the Lake States to the public in accordance with the trend. In recognition of the seriousness
area often contain a diverse mix of forest Organic Administration Act. In of the market problems, the State of
products, which attracted strong addition, by extending contracts and Minnesota and some counties within
competition leading to relatively high avoiding defaults, closures and Minnesota have provided price relief to
bid rates. Problems began in 2005, when bankruptcies, the Government avoids purchasers of their sales. The U.S.
prices for both pulp and OSB chips the difficult, lengthy, expensive, and Forest Service has no statutory authority
started declining sharply. sometimes impossible, process of at this time to provide price relief but
OSB is a building product with prices collecting default damages. can offer additional contract time based
that tend to follow lumber market Therefore, on November 2, 2006, the on a determination of Substantial
prices. Because lumber market prices Deputy Under Secretary of Agriculture Overriding Public Interest.
were declining significantly across most for Natural Resources and Environment
of the country, contracts tied to the determined there was a Substantial Determination of Substantial
Softwood Lumber index were eligible to Overriding Public Interest in extending Overriding Public Interest
receive MRCTA. But in places, such as certain National Forest System timber The Government benefits if defaulted
much of the Lake States region, many sale contracts for up to one year, subject timber sale contracts, mill closures, and
purchasers marketing OSB material to a maximum total contract length of 10 bankruptcies can be avoided over large
were not getting this relief because most years. Pursuant to the November 2, geographic areas by granting extensions.
of their contracts were tied to the wood 2006, finding, timber sale contracts Having numerous, economically viable,
chips index which had not declined and awarded prior to January 1, 2006, were timber sale purchasers increases
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was not triggering market related eligible for extension and deferral of competition for National Forest System
contract term additions. Concurrently, periodic payment due dates for up to timber sales, results in higher prices
while lake states area pulp prices were one year. Contracts that were in breach, paid for such timber, and allows the
declining national wood chip prices have been or were currently eligible to Forest Service to provide a continuous
were stable or increasing, so purchasers be extended under MRCTA contract supply of timber to the public in

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64994 Federal Register / Vol. 72, No. 222 / Monday, November 19, 2007 / Notices

accordance with the Organic comments on a currently approved NRCS in particular, to provide the
Administration Act. In addition, by information collection for which option of submitting information or
extending contracts and avoiding approval will expire, 0578–0030, transacting business electronically to
defaults, closures and bankruptcies, the Emergency Watershed Protection the maximum extent possible.
Government avoids the difficult, Program. FOR FURTHER INFORMATION CONTACT:
lengthy, expensive, and sometimes Public Participation: The NRCS Questions and comments should be
impossible, process of collecting default invites full public participation to directed to Phyllis I. Watkins, Agency
damages. promote open communication and Office of Management and Budget
Therefore, pursuant to 16 U.S.C. 472a, better decision-making. All persons and Clearance Officer, USDA, Natural
and the authority delegated to me at 7 organizations that have an interest in Resources Conservation Service, 5602
CFR 2.60, I have determined that it is in the Emergency Watershed Protection Sunnyside Avenue, Mailstop 5460,
the Substantial Overriding Public (EWP) Program are urged to provide Beltsville, Maryland 20705–5000;
Interest to extend for up to one year comments. telephone: (301) 504–2170.
certain National Forest System timber Scoping Process: Public participation
SUPPLEMENTARY INFORMATION:
sales that were awarded prior to January is requested throughout the scoping
process. The NRCS is soliciting Title: Emergency Watershed
1, 2007. This finding does not apply to
comment the public indicating what Protection Program.
(1) contracts that have been or are
issues and impacts the public believes OMB Number: 0578–0030.
currently eligible to be extended under
should be encompassed within the Expiration Date of Approval: July 31,
MRCTA contract provisions, except
scope of the EWP Program. Comments 2008.
sales using the Hardwood Lumber index
that were awarded after December 31, are invited on (a) Whether the proposed Type of Request: To request
2005, (2) salvage sale contracts that were collection of information is necessary comments on a currently approved
sold with the objective of harvesting for the proper performance of the collection for which approval will
deteriorating timber, (3) contracts the functions of the agency, including expire.
Forest Service determines are in urgent whether the information will have Abstract: The primary objective of the
need of harvesting due to deteriorating practical utility, (b) The accuracy of the Natural Resources Conservation Service
timber conditions that have developed agency’s estimate of burden of the (NRCS) is to work in partnership with
following award of the contract, or (4) proposed collection of information, the American people and the farming
contracts that are in breach. Total including the validity of the and ranching community to conserve
contract length shall not exceed 10 years methodology and assumptions used, (c) and sustain our natural resources. The
as a result of this extension. For those Ways to enhance the quality, utility, and purpose of Emergency Watershed
contracts extended pursuant to this clarity of the information to be Protection Program (EWP) information
finding, periodic payments due after the collected, and (d) Ways to minimize the collection is to provide EWP assistance
date of this determination will also be burden of the collection of information to sponsors to undertake emergency
deferred for up to one year. To receive on those who are to respond, such as measures to retard runoff and prevent
the extension and periodic payment through the use of appropriate soil erosion to safeguard lives and
deferral, purchasers must make written automated, electronic, mechanical, or property from floods, drought, and the
request and agree to release the Forest other technologic collection techniques products of erosion on any watershed
Service from all claims and liability if or other forms of information whenever fire, flood, or other natural
a contract extended pursuant to this technology. disaster is causing or has caused a
finding is suspended, modified, or Date Scoping Comments Are Due: sudden impairment of that watershed.
terminated in the future. Comments on this notice must be The sponsor’s request is submitted
received by January 18, 2008 to ensure formally as a letter (now the Appendix
Dated: November 2, 2007. to the NRCS–PDM–20A) to the NRCS
consideration. Comments may be sent to
Abigail R. Kimbell, State Conservationist for consideration.
Phyllis I. Watkins, Agency OMB
Chief. Clearance Officer, U.S. Department of The NRCS–PDM–20, Damage Survey
[FR Doc. E7–22534 Filed 11–16–07; 8:45 am] Agriculture, Natural Resources Report (DSR), is the agency decision-
BILLING CODE 3410–11–P Conservation Service, 5601 Sunnyside making document that includes the
Avenue, Mailstop 5460, Beltsville, MD economic, social, and environmental
20705–5000; (301) 504–2170; evaluation and the engineer’s cost
DEPARTMENT OF AGRICULTURE phyllis.i.watkins@wdc.usda.gov. estimate.
This information collection allows the
Natural Resources Conservation Paperwork Reduction Act responsible Federal official to make
Service In accordance with the Paperwork EWP Program eligibility determinations
Reduction Act of 1995 (Public Law 104– and provide Federal cost-share
Notice of Intent To Request Comments
13), and the Office of Management and contribution to complete the measures.
on a Currently Approved Information
Budget (OMB) regulations at 5 CFR part This request is necessary to implement
Collection.
1320 (60 FR 44978, August 29, 1995). the EWP Program for which NRCS has
AGENCY: Natural Resources statutory authority.
Government Paperwork Elimination The table below lists the forms in this
Conservation Service, USDA.
Act collection, the uses for each document,
ACTION: Notice and request for
comments. NRCS is committed to compliance and the applicable programs. These
with the Government Paperwork forms constitute this information
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SUMMARY: This notice announces the Elimination Act (GPEA) and the collection and reflect the documents
intention of the Natural Resources Freedom to E-File Act, which require used by EWP sponsors to request
Conservation Service (NRCS) to request government agencies in general, and participation in the recovery program.

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