(Appendix 1 -- Colorado NRCS Contract Cancellation Documentation
Worksheet)

**Colorado NRCS Programs Contract [Cancellation]{.underline}
Documentation Worksheet**

*Internal Agency Case File Documentation*

[Instructions]{.underline}

Cancellation is an equitable remedy that allows both parties to the
contract to end the contractual relationship. Participants must request
cancellation in writing and provide justifiable reasons for the
cancellation. Refer to CPM 512.57 for further guidance. If contract
cancellation is determined to be the appropriate remedy, use the
following worksheet to document the justification and actions taken.
This document becomes a part of the case file.

Client: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Program: □ EQIP; □ WHIP

Contract Number:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Date of
Appendix \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**1) Check (√)** all that apply

  --- ---------------------------------------------------------------------
      Program participant has provided written request for cancellation
      with adequate justification? Date Received:\_\_\_\_\_\_\_\_\_\_\_

      

      Program payments [have not]{.underline} been made through this
      contract.

      

      Program payments [have]{.underline} been made for the total amount
      of: \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

      

      Installed practice(s) meet conservation program requirements and
      provide functional benefit(s) as installed.

      

      Installed practice(s) will not function without support of additional
      practice components which have not been installed.
  --- ---------------------------------------------------------------------

**2) Check (√)** reason that applies and applicable year of contract
(from ProTracts) at time of participant's request.

+---+---+--------------------------------------------+---+----+----+----+
|   |   | **Contract Cancellation Liquidated Damages | * | *  | *  | ** |
|   |   | Cost Recovery Decision Matrix\***          | * | *2 | *3 | 4t |
|   |   |                                            | 1 | nd | rd | h+ |
|   |   |                                            | s | Ye | Ye | Ye |
|   |   |                                            | t | ar | ar | ar |
|   |   |                                            | Y | ** | ** | ** |
|   |   |                                            | e |    |    |    |
|   |   |                                            | a |    |    |    |
|   |   |                                            | r |    |    |    |
|   |   |                                            | * |    |    |    |
|   |   |                                            | * |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   |   |                                            |   |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 1 | ***[Any of the reasons as follows:\        | 0 | 0% | 0% | 0% |
|   |   | ]{.underline}***• Natural disaster         | % |    |    |    |
|   |   | prevents completion of provision of        |   |    |    |    |
|   |   | contract\                                  |   |    |    |    |
|   |   | • Documented hardship - Death or illness\  |   |    |    |    |
|   |   | • Documented hardship - Significant        |   |    |    |    |
|   |   | financial constraints beyond participant   |   |    |    |    |
|   |   | control\                                   |   |    |    |    |
|   |   | • Documented hardship - Destruction of     |   |    |    |    |
|   |   | farm/ranch property due to fire/theft\     |   |    |    |    |
|   |   | • Participants military service interferes |   |    |    |    |
|   |   | with operations of farm/ranch\             |   |    |    |    |
|   |   | • In the public interest and circumstances |   |    |    |    |
|   |   | beyond the control of the participant\     |   |    |    |    |
|   |   | • Clear documented unavoidable and         |   |    |    |    |
|   |   | unforeseen problems have transpired since  |   |    |    |    |
|   |   | the contract was approved\                 |   |    |    |    |
|   |   | • Involuntary loss of control of land      |   |    |    |    |
|   |   | beyond the control of participant\         |   |    |    |    |
|   |   | • Participant or land becomes ineligible   |   |    |    |    |
|   |   | due to reason beyond control of            |   |    |    |    |
|   |   | participant                                |   |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 2 | Practice planned in contract is not        | 0 | 0% | 0% | 0% |
|   |   | feasible or not needed for the identified  | % |    |    |    |
|   |   | resource concern (NRCS error or omission)  |   |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 3 | Documented good faith effort by            | 0 | 0% | 0% | 0% |
|   |   | participant to complete contract or        | % |    |    |    |
|   |   | practices                                  |   |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 4 | Requirements by other regulatory agencies  | 0 | 0% | 0% | 0% |
|   |   | have changed since the contract was        | % |    |    |    |
|   |   | originally approved making compliance with |   |    |    |    |
|   |   | contract not feasible, beyond the          |   |    |    |    |
|   |   | financial capability originally agreed to  |   |    |    |    |
|   |   | by the participant or potentially in       |   |    |    |    |
|   |   | violation of federal, state or local       |   |    |    |    |
|   |   | environmental regulations.                 |   |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 5 | Participant wants to cancel contract to    | 0 | 0% | 0% | 0% |
|   |   | enroll in an **easement** program          | % |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 6 | Participant wants to cancel contract to    | 3 | 7. | 9% | 1  |
|   |   | switch to another program.                 | . | 5% |    | 0% |
|   |   |                                            | 8 |    |    |    |
|   |   |                                            | % |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 7 | Some documentation is provided regarding   | 3 | 7. | 9% | 1  |
|   |   | unavoidable and unforeseen problems        | . | 5% |    | 0% |
|   |   | transpiring since the contract was         | 8 |    |    |    |
|   |   | approved, but not clear and compelling     | % |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 8 | Personal hardship situations mentioned,    | 3 | 7. | 9% | 1  |
|   |   | but strong and clear documentation is not  | . | 5% |    | 0% |
|   |   | provided                                   | 8 |    |    |    |
|   |   |                                            | % |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 9 | Participant request contract cancellation  | 7 | 1  | 1  | 2  |
|   |   | and installed or other required practices  | . | 5% | 8% | 0% |
|   |   | have not been operated or maintained       | 5 |    |    |    |
|   |   | according to agency standards              | % |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 1 | Participant request contract cancellation  | 7 | 1  | 1  | 2  |
|   | 0 | and installed or other required practices  | . | 5% | 8% | 0% |
|   |   |                                            | 5 |    |    |    |
|   |   | have been destroyed                        | % |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 1 | Participant voluntarily requests contract  | 7 | 1  | 1  | 2  |
|   | 1 | cancellation without justification         | . | 5% | 8% | 0% |
|   |   |                                            | 5 |    |    |    |
|   |   |                                            | % |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 1 | Participant voluntarily loses control of   | 7 | 1  | 1  | 2  |
|   | 2 | land - no successor and request contract   | . | 5% | 8% | 0% |
|   |   | cancellation                               | 5 |    |    |    |
|   |   |                                            | % |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 1 | Other situation approved by the Program    | 7 | 1  | 1  | 2  |
|   | 3 | Manager                                    | . | 5% | 8% | 0% |
|   |   |                                            | 5 |    |    |    |
|   |   |                                            | % |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 1 | Termination is due to fraud                | 7 | 1  | 1  | 2  |
|   | 6 |                                            | . | 5% | 8% | 0% |
|   |   |                                            | 5 |    |    |    |
|   |   |                                            | % |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+
|   | 1 | Practices installed with cost share have   | 7 | 1  | 1  | 2  |
|   | 7 | not been maintained or have been destroyed | . | 5% | 8% | 0% |
|   |   |                                            | 5 |    |    |    |
|   |   |                                            | % |    |    |    |
+---+---+--------------------------------------------+---+----+----+----+

**3) FINANCIAL ASSISTANCE (FA) Cost Recovery of Payments/Interest
Calculation:**

Recovery of costs (FA funds already paid through the program contract)
will be requested for applied practices that are destroyed or that do
not meet waiver conditions listed in the "CO Program Decision Matrix".
Recovery of cost for payments made or interest will not be requested for
installed conservation practices that meet *all* of the following
requirements or as otherwise determined by the State Conservationist:

1.  • Assurance that failure to perform remaining contracted practices
    will not impair the effectiveness of those installed.

    • Assurance that installed practices will provide conservation or
    environmental benefits consistent with program goals/objectives.

• Assurance that installed practices will be operated and maintained for
the life span of the practices.

Check (√) one -- Financial Assistance cost recovery

  --- ---------------------------------------------------------------------
      Recommend cancellation without repayment of cost of practices applied
      (financial assistance). Detail recommendation below.

      Recommend cancellation with repayment of cost of practices applied
      (financial assistance). \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
  --- ---------------------------------------------------------------------

**4) TECHNICAL ASSISTANCE (TA) Liquidated Damages / Administrative Cost
Recovery**

Check (√) one -- Administrative Expense cost recovery

  --- ---------------------------------------------------------------------
      Recommend cancellation with assessment of liquidated damages (formula
      below) in the amount of \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

      Recommend cancellation without assessment of liquidated damages.
      Detail recommendation below.
  --- ---------------------------------------------------------------------

**Liquidated Damages / Administrative Cost Recovery Calculation:**

First, calculate the amount of obligated funds remaining in the
contract. Then identify the year of the contract, *use the year listed
on the ProTracts Conservation Contract Page identified as "Current
Contract Year"* to obtain the "percent multiplier" from the "Colorado
Liquidated Damage Assessment Matrix". (E.g. 15%). Calculate the amount
of liquidated damages by multiplying the "percent multiplier" times the
obligated funds remaining in the contract to obtain the amount of
liquidated damages:

Remaining funds obligated in the contract: \$\_\_\_\_\_\_\_\_\_\_\_\_ x
"% multiplier (from matrix) \_\_\_\_\_%

Equals \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_ damages to recover

(Example: \$10,000 (funds remaining) x 15% multiplier from matrix =
\$1,500 liquidated damages to recover.)

**5. Total cost recovery:**

**Financial Assistance payments: \_\_\_\_\_\_\_\_\_ + Technical
Assistance payments: \_\_\_\_\_\_\_\_\_\_\_ = Total
\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

(The State Conservationist will waive cost recovery & liquidated damage
assessments of \$1,000 or less as being in the public interest.)

[Certification:]{.underline}

I herby certify justification for cancellation of this contract meets
program policy and request remedy as follows:

District Conservationist:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Concurred ARC-P:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\*\*Send copy of this form and other documentation (or administrative
record as requested) to the Area Conservationist for review and
approval. Upon concurrence Area Conservationist will initiate
notification letters as appropriate or actions needed for fund
recovery\*\*