Appendix 3 Letters:

[Template: Cancellation without Cost Recovery Letter]{.underline}
(Excerpted from CPM 512.91)

DATE (Stamped)

CERTIFIED MAIL - RECEIPT REQUESTED

(Name and address of participant)

Dear (participant name):

I am in receipt of your signed request for cancellation of your (\<\<
insert Program \>\>) contract (\<\< insert contract number). I have
approved your request. No refund or cost recovery will be required, and
all rights to any payments under the contract are hereby forfeited.

This decision is not appealable because the contract cancellation was
requested by you. Further, in conformance with the program provisions,
because there are no recovery of costs associated with the cancellation
of this contract, the decision does not meet the regulatory definition
for an adverse decision under 7 CFR 11.1.

If you have any questions, please contact (\<\< insert AC name \>\>) at
(\<\< insert AC contact information \>\>).

Sincerely,

(Signature - AC name)

(\<\<name in capital letters\>\>)

Area Conservationist

cc: District Conservationist\
Tim Carney -- ASTC-Programs, NRCS, Lakewood, CO

[Template: Cancellation with Cost Recovery Letter]{.underline}
(Excerpted from CPM 512.91)

DATE (Stamped)

CERTIFIED MAIL - RECEIPT REQUESTED

(Name and address of participant)

Dear (participant name):

The Natural Resources Conservation Service (NRCS) is in receipt of your
(\<\<insert date of request\>\>) written request for cancellation of
your (\<\<insert program\>\>) contract (\<\<insert contract number\>\>).
Effective with the date of this letter, your contract has been cancelled
per your written instructions. According to (\<\<cite to the applicable
program regulation section/paragraph\>\>), all rights to any payments
under the contract are forfeited and the NRCS may require participants
to refund all payments, and pay liquidated damages.

In this specific case, the Area Conservationist, as delegated by the
State Conservationist, has determined that the NRCS must recover costs
in the amount of \$ \_\_\_\_\_\_\_\_\_\_ for the cancellation of your
contract because you have (\<\<not shown a good faith effort to
implement the contract terms and conditions; or whatever the applicable
reason is\>\>).

Therefore, the total amount of cost recovery includes the following:

\$ \_\_\_\_\_\_\_\_\_\_\_ for cost share or incentive payments made to
you under the contract.

\$ \_\_\_\_\_\_\_\_\_\_\_ for liquidated damages.

The assessment of liquidated damages does not constitute any penalty for
the cancellation, but only serves as a recovery of the NRCS
administrative and technical costs. The amount of liquidated damages is
\_\_\_ percent of the total financial assistance funds obligated to the
contract at the time of cancellation.

The cancellation of your (\<\<insert program\>\>) contract as well as
the right of NRCS to recover costs is not appealable for the following
reasons:

Contract cancellation was completed at your written request; and

The right of the NRCS to recover costs is a matter of program
regulation.

[The amount of cost recovery is appealable]{.underline} as per
440-V-CPM, Amend. 40, November 2007: 440 -- Conservation Programs Manual

If you feel that the amount of this cost recovery has been assessed
incorrectly, or that the NRCS did not consider all the facts as to why
you were unable to comply with the contract terms and conditions, you
may provide a written request for either a full or partial waiver of the
cost recovery to:

(\<\<enter the Area Conservationist contact information\>\>).

Any request for a waiver must include the following information in
accordance with the CPM 440 Conservation Program Contracting Manual Part
512.58-C:

\- Type of waiver requested, full or partial.

\- The good faith effort shown in implementing the contract terms and
conditions.

\- Personal or financial hardships that were beyond your control and
that prevented implementation of the contract terms and conditions. (Any
claim of hardship must include sufficient supporting documentation that
the personal or financial hardship existed, that it was beyond your
control, and that it prevented you from being able to comply with the
contract terms and conditions.)

\- When the personal or financial hardship began. (If the hardship began
prior to the NRCS awarding the (\<\<insert program\>\>) contract, your
claim will not be considered as that is considered to be a pre-existing
condition of which you were aware.)

If you want to appeal the decision without consideration of a waiver,
the following is provided as notification of your appeal and mediation
rights under the Department of Agriculture (USDA) Administrative Appeals
procedures, 7 CFR 614 and 7 CFR 11. You may request [one]{.underline} of
the following options:

> 1- An informal appeal with the Area Conservationist at:
>
> (\<\<enter the appropriate AC contact information\>\>).

-OR-

> An appeal to the Farm Service Agency (FSA) County Committee at:
>
> (\<\<enter the appropriate contact information\>\>).
>
> Informal appeals to the FSA County or State Committee must, in
> accordance with the FSA appeals regulation at 7 CFR 780.11, include a
> review of the decision upon a finding of merit by FSA.
>
> 2 - You may request mediation from:
>
> The Colorado Agricultural Mediation Program
>
> 2331 W. 31^st^ Avenue
>
> Denver, Colorado 80211-3859
>
> Phone: (303) 477-0054 or (888) 358-8837
>
> Fax: (303) 480-9236
>
> [www.ag.state.co.us/ics/FarmProducts/camp](http://www.ag.state.co.us/ics/FarmProducts/camp)
>
> 3- You may request an appeal from the Assistant Director, Western
> Regional Office, National Appeals Division:
>
> NAD Western Regional Office
>
> 755 Parfet Street Suite 494
>
> Lakewood, Colorado 80215-5506
>
> Phone: 1-800 541-0483 or (303) 236-2862
>
> TTY: 1-800 497-0253
>
> Fax: (303) 236-2820

If you choose to appeal this decision or to request mediation, you must
do so, in writing, no later than 30 days from the date that you received
this notification. Your request must include the following information:

A copy of this notification and decision.

The reason why the NRCS decision is incorrect. (Note: You must indicate
why the NRCS decision is erroneous to you, individually, as a matter of
law and regulation).

You must provide a copy of any request for appeal or mediation to this
office at

(\<\<enter the Contracting Officer's contact information\>\>).

If you do not request either a waiver, appeal, or mediation within the
time prescribed, you must submit your payment for the full amount of the
cost recovery assessment to the following address, making your check
payable to the Natural Resources Conservation Service:

Natural Resources Conservation Service

Attn: Area Conservationist

(\<\< enter Area Conservationist address\>\>)

If after 30 days of your receipt of this letter you have not made
payment as described above, collection will be turned over to the USDA
National Finance Center (NFC). This is the standard automated billing
utilized by the NFC for collections. Please note, under debt collection
procedures, all bills not paid within 30 days of the billing date will
accrue interest. It is best, therefore, to process this payment in a
timely manner.

If you have any questions regarding the matter, please call (\<\<enter
name and contact information for Area Conservationist\>\>).

Sincerely,

(Signature - AC name)

(\<\<name in capital letters\>\>)

Area Conservationist

cc: District Conservationist\
Tim Carney -- ASTC-Programs, NRCS, Lakewood, CO

[Template: Termination with Cost Recovery Letter]{.underline} (Excerpted
from CPM 512.91)

DATE (Stamped)

CERTIFIED MAIL - RECEIPT REQUESTED

(Name and address of participant)

Dear (participant name):

As of the date of this letter, the Natural Resources Conservation
Service (NRCS) has terminated your (\<\< insert program\>\>) contract
(\<\< insert contract number\>\>) effective with receipt of this
notification. Your contract has been terminated because (\<\< state
detailed reason for termination including contractual and regulatory
basis for violation \>\>). All rights to any payments under the contract
are forfeited and the NRCS may require participants to refund all
payments and pay liquidated damages. Therefore, the State
Conservationist has determined that the NRCS must recover costs in the
amount of \$\_\_\_\_\_\_\_\_\_\_\_ for the termination of your contract
because you have not (\<\<shown a good faith effort to implement the
contract terms and conditions; have not remedied the violation within
the agreed upon time; or whatever the applicable reason is\>\>).

This total amount of cost recovery includes the following:

\$ \_\_\_\_\_\_\_\_\_\_\_ for cost share or incentive payments made to
you under the contract.

\$ \_\_\_\_\_\_\_\_\_\_\_ for liquidated damages.

The assessment of liquidated damages does not constitute any penalty for
the termination, but only serves as a recovery of the NRCS
administrative and technical costs. The amount of liquidated damages is
\_\_\_\_ percent of the total financial assistance funds obligated to
the contract at the time of termination.

The termination of your (\<\< insert program \>\>) contract and the
amount of cost recovery assessed are appealable as these actions meet
the definition of a decision adverse to the individual in accordance
with 7 CFR 11.1. The right of the NRCS to terminate your contract and to
assess a recovery of costs, including assessment of liquidated damages
is not appealable due to being matters of regulation.

If you feel that the decision to terminate your contract was in error,
or that the amount of the cost recovery has been assessed incorrectly,
or that NRCS did not consider all the facts as to why you were unable to
comply with the contract terms and conditions, you may provide a written
request for reconsideration, and either a full or partial waiver of the
cost recovery to (\<\<enter the Area Conservationist's name and contact
information\>\>).

Any request for a reconsideration or waiver must include the following
information in accordance with the CPM 440 Conservation Program
Contracting Manual Part 512.58-C:

\- The reason why the NRCS decision to terminate is incorrect.

\- Type of waiver requested, full or partial.

\- The good faith effort shown in implementing the contract terms and
conditions.

> \- Personal or financial hardships that were beyond your control and
> that prevented implementation of the contract terms and conditions.
> (Any claim of hardship must include sufficient supporting
> documentation that the personal or financial hardship existed, that it
> was beyond your control, and that it prevented you from being able to
> comply with the contract terms and conditions.)

\- When the personal or financial hardship began.

(If the hardship began prior to NRCS awarding the (\<\< insert
program\>\>) contract, your claim will not be considered as that is
considered to be a pre- existing condition of which you were aware.)

If you want to appeal the decision without consideration of a waiver,
the following is provided as notification of your appeal and mediation
rights under the Department of Agriculture (USDA) Administrative Appeals
procedures, 7 CFR 614 and 7 CFR 11. You may request [one]{.underline} of
the following options:

> 1- An informal appeal with the Area Conservationist at:
>
> (\<\<enter the appropriate contact information\>\>).

-OR-

> An appeal to the Farm Service Agency (FSA) County Committee at:
>
> (\<\<enter the appropriate contact information\>\>).
>
> Informal appeals to the FSA County or State Committee must, in
> accordance with the FSA appeals regulation at 7 CFR 780.11, include a
> review of the decision upon a finding of merit by FSA.
>
> 2- You may request mediation from:
>
> The Colorado Agricultural Mediation Program
>
> 2331 W. 31^st^ Avenue
>
> Denver, Colorado 80211-3859
>
> Phone: (303) 477-0054 or (888) 358-8837
>
> Fax: (303) 480-9236
>
> [www.ag.state.co.us/ics/FarmProducts/camp](http://www.ag.state.co.us/ics/FarmProducts/camp)
>
> 3- You may request an appeal from the Assistant Director, Western
> Regional Office, National Appeals Division
>
> NAD Western Regional Office
>
> 755 Parfet Street Suite 494
>
> Lakewood, Colorado 80215-5506
>
> Phone: 1-800 541-0483 or (303) 236-2862
>
> TTY: 1-800 497-0253
>
> Fax: (303) 236-2820

If you choose to appeal this decision or to request mediation, you must
do so, in writing, no later than 30 days from the date that you received
this notification. Your request must include the following information:

A copy of this notification and decision.

The reason why the NRCS decision is incorrect. (Note: You must indicate
why the NRCS decision is erroneous to you, individually, as a matter of
law and regulation).

You must provide a copy of any request for appeal or mediation to this
office at

(\<\<enter the Contracting Officer's contact information\>\>).

If you do not request either a waiver, appeal, or mediation within the
time prescribed, you must submit your payment for the full amount of the
cost recovery assessment to the following address, making your check
payable to the Natural Resources Conservation Service at the following
address:

Natural Resources Conservation Service

Attn: Area Conservationist

(\<\< enter Area Conservationist address\>\>)

If after 30 days of your receipt of this letter you have not made
payment as described above, collection will be turned over to the USDA,
National Finance Center (NFC). This is the standard automated billing
utilized by the NFC for collections. Please note, under debt collection
procedures, all bills not paid within 30 days of the billing date will
accrue interest. It is best, therefore, to process this payment in a
timely manner.

If you have any questions regarding the matter, please call (\<\<enter
name and contact information for Area Conservationist\>\>).

Sincerely,

(Signature - AC name)

(\<\<name in capital letters\>\>)

Area Conservationist

cc: District Conservationist\
Tim Carney -- ASTC-Programs, NRCS, Lakewood, CO

[Template: Additional Financial Hardship Information
Request]{.underline}

TO: Date: (Stamped)

Dear \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

The Natural Resource Conservation Service (NRCS) State Office has
received your request to cancel your Environmental Quality Incentives
Contract (EQIP) contract number \_\_\_\_\_\_\_\_\_\_. As stated in the
appendix of the contract you signed, if the participant voluntarily
terminates their contract, the Commodity Credit Corporation (CCC) may
request a refund with interest any payments received under this
contract. The CCC may also request recovery of costs to administer the
contract up to an amount equal to 20% of the total financial assistance
obligated to the participant in this contract. The program rules allow
the NRCS, the Federal Government Agency assigned to administering EQIP
contracts, to waive refunds with interest and cost recovery fees for a
few very specific circumstances. One of those circumstances is the
participant is encountering certain types of financial hardship.

The original information received by the NRCS from you is not sufficient
to decide if waiving the recovery costs for contract administration
and/or refunds of payments made to you with interest amounting to
\_\_\_\_\_\_\_\_\_\_\_ is warranted. The NRCS needs more information
from you pertaining to the nature of the financial hardship and what has
led to your wish to cancel the contract. Information such as crop
failure, bankruptcy, medical expenses, loan problems, and other
unexpected financial circumstances that have occurred since you signed
the contract would be helpful. Please send the letter written and signed
by you to:

Natural Resources Conservation Service c/o the District Conservationist.

(\<\<insert field office address\>\>)

If the NRCS does not receive a letter from you, further justifying
financial hardship as a reason to cancel the contract within 30 days
from the date this letter is received, the NRCS will begin the process
to procure refunds with interest and recovery costs amounting to
\_\_\_\_\_\_\_\_\_\_\_\_ associated with this contract. Questions about
this request can be referred to me at (\<\<insert phone number\>\>).

Sincerely,

(Signature DC)

(\<\<name in capital letters\>\>)

District Conservationist

cc: Area Conservationist

File

[Template: Additional Personal or Medical Hardship Information
Request]{.underline}

TO: Date: (Stamped)

Dear \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_:

The Natural Resource Conservation Service (NRCS) State Office has
received your request to cancel your Environmental Quality Incentives
Contract (EQIP) contract number \_\_\_\_\_\_\_\_\_\_. As stated in the
appendix of the contract you signed, if the participant voluntarily
cancels or terminates their contract, the Commodity Credit Corporation
(CCC) may request refund with interest any payments received under this
contract. The CCC may also request recovery of costs to administer the
contract up to an amount equal to 20% of the total financial assistance
obligated to the participant in this contract. The program rules allow
the NRCS, the Federal Government Agency assigned to administering EQIP
contracts, to waive refunds with interest and cost recovery fees for a
few very specific circumstances. One of those circumstances is the
participant having to deal with serious health issues.

The original information received by the NRCS from you is not sufficient
to decide if waiving the recovery costs for contract administration
and/or refunds of payments made to you with interest amounting to
\_\_\_\_\_\_\_\_\_\_\_ is warranted The NRCS needs more information from
you pertaining to the nature of the illness or injury that has led to
your wish to cancel the contract. Information such as type of injury or
illness to you or family members, medical expenses, or other unexpected
health issues that have occurred since you signed the contract would be
helpful. Please send the letter written and signed by you to:

Natural Resources Conservation Service c/o the District Conservationist.

(\<\<insert field office address\>\>)

If the NRCS does not receive a letter from you, further justifying a
medical or personal hardship as a reason to cancel the contract within
30 days from the date this letter is received, the NRCS will begin the
process to procure refunds with interest and recovery costs amounting to
\_\_\_\_\_\_\_\_\_\_\_\_ associated with this contract. Questions about
this request can be referred to me at (\<\<insert phone number\>\>).

Sincerely,

(Signature DC)

(\<\<name in capital letters\>\>)

District Conservationist

cc: Area Conservationist

File