Woodswise Wire Plus

Write It Down Before You Cut --Part 2

Last week we talked about the value of a written Timber Sale Agreement or Harvest Contract when you work with a logger to cut trees in your woods. Some of the items to cover in your contract include:

• The Contract Period - State clearly when the contract begins and when it ends, and whether there are periods during which operations may be suspended, such as during wet weather or market fluctuations. Include a provision for extension, renewal or cancellation, depending on circumstances.
• Responsibilities of the parties. It very important that all involved know who is taking care of what. For example, who is clearly marking the property lines within 200 feet of the harvest area? Who is responsible for checking or deploying Best Management Practices (BMPs) during wet weather events?
• Access - Define where and how the logger will get to the stands to be cut, and in what condition any trails, access roads and log landings will be left. A clause providing the logger with the right to enter and exit the property should include any restrictions, whether rights-of-way will need to be secured from other landowners, and who will be responsible for acquiring and paying for them.
• Trees to be harvested - Clearly define in the contract what trees will be cut and what trees will be left uncut, and how they are designated in the forest. Often your consulting forester will mark trees and/or walk through the stands with the logger to be sure that tree designation is clearly understood.
• Legal description of the location of the timber being sold. This can be a deed reference or a description of the town tax map and lot number(s).
• A statement that the landowner owns and has the right to sell the trees that will be cut.
• Harvest boundaries - Indicate in the contract and in the field where the harvest should take place. If the harvest is near your land's boundaries, marking the boundaries is a legal requirement and prevents expensive mistakes.
• Handling residual "slash" - Slash treatment (tree tops and branches left on a site after a timber harvest) should be defined in the Contract.
• Insurance - The Contract should clearly state what insurances are required from the logger before the contract is valid; do not sign the contract until you have proof of insurance (certificates) in hand that are valid through the contract period. The contract should also include a statement that the logger will not hire any employees without proof of workers compensation coverage.
• Statement that the landowner will not be held accountable for personal injuries to the logger or his/her employees during the contract period.
• Payment - Spell out the timing and basis for payment by species, product, grade and delivery location, and include remedies for late payment, default or failure to satisfy other obligations under the Contract. For longer contracts, you may want to build in a pricing review method, to fairly react to changes in markets. Volume and value estimates may also be useful.
• Method of harvest, including the use of specific BMPs to limit water pollution and site degradation, the layout of roads and logging decks and special provisions for hunting season or very wet weather.
• Penalties for non-performance, including compensation for excessive damage to or cutting of trees that were not marked for harvest. The contract could include a performance bond that is held in escrow until all contractual obligations have been met.
• Statement that the buyer will comply with all federal, state and local laws.
• Names, Addresses and Signatures- All parties to the contract should be listed, and should sign to indicate agreement with the terms of the contract. Always include the date with the signature.

While many of these provisions are straight-forward, others require negotiation or discussion. You may want additional provisions for special circumstances, such as care for special places in or near the harvest area. Your consulting forester can help you write the best possible contract for the harvest you want to undertake.

Read more information on what to include in a harvest contract.

Some of the items above may be detailed in a separate document known as a Harvest Plan or Silvicultural Operations Plan, which can be incorporated by reference in the Contract. Stay tuned for a future Woods Wise Wire PLUS article about harvest planning.

As always, you can call the Maine Forest Service for more information or assistance at 1 800 367-0223 (in state) or (207) 287-2791, or e-mail forestinfo@maine.gov.