24110 Federal Register / Vol. 63, No. 84 / Friday, May 1, 1998 /Rules and Regulations

Discussion of Regulation

This regulation is necessary to protect

the lives and property of the event

participants and spectators by

establishing an exclusionary zone

around the Laughlin River Days. During

race times, vessels will be traveling at

high rates of speed which will hinder

their reaction time to obstacles. This

safety zone will be marked by the

sponsor, and enforced by U.S. Coast

Guard personnel working in close

coordination with the sponsor. Vessels

are prohibited from entering into,

transiting through, or anchoring within

the safety zone unless authorized by the

Captain of the Port.

Regulatory Evaluation

This proposal is not a significant

regulatory action under section 3(f) of

Executive Order 12866 and does not

require an assessment of potential costs

and benefits under section 6(a)(3) of that

order. It has been exempted from review

by the Office of Management and

Budget under that order. It is not

significant under the regulatory policies

and procedures of the Department of

Transportation (44 FR 11040; February

26, 1979). Due to the short duration and

limited scope of the safety zone, the

Coast Guard expects the economic

impact of this proposal to be so minimal

that a full Regulatory Evaluation under

paragraph 10(e) of the regulatory

policies and procedures of the

Department of Transportation is

unnecessary.

Small Entities

Under the Regulatory Flexibility Act

(5 U.S.C. 601 et seq.), the Coast Guard

must consider whether this proposal

will have a significant economic impact

on a substantial number of small

entities. Small entities may include

small businesses and not-for-profit

organizations that are not dominant in

their respective fields, and

governmental jurisdictions with

populations less than 50,000. For the

same reasons set forth in the above

Regulatory Evaluation, the Coast Guard

certifies under 5 U.S.C. 605(b) that this

proposal, if adopted, is not expected to

have a significant economic impact on

any substantial number of entities,

regardless of their size.

Assistance for Small Entities

In accordance with 213(a) of the

Small Business Regulatory Enforcement

Fairness Act of 1996 (Pub. L. 104–121),

the Coast Guard wants to assist small

entities in understanding this proposed

rule so that they can better evaluate its

effects on them and participate in the

rulemaking process. If your small

business or organization is affected by

this rule and you have questions

concerning its provisions or options for

compliance, please contact LT Mike

Arguelles, Coast Guard Marine Safety

Office San Diego, at the Address Listed

in ADDRESSES.

Collection of Information

This regulation contains no collection

of information requirements under the

Paperwork Reduction Act (44 U.S.C.

3501 et seq.).

Federalism

The Coast Guard has analyzed this

regulation under the principles and

criteria contained in Executive Order

12612, and has determined that this

regulation does not have sufficient

federalism implications to warrant the

preparation of a Federalism Assessment.

Environmental Assessment

The Coast Guard has considered the

environmental impact of this regulation

and concluded that under section 2.B.2

of Commandant Instruction M16475.1B

it will have no significant

environmental impact and it is

categorically excluded from further

environmental documentation. A

Categorical Exclusion Determination

and Environmental Analysis Checklist

will be available for inspection and

copying in the docket to be maintained

at the address listed in ADDRESSES.

Unfunded Mandates

Under the Unfunded Mandates

Reform Act of 1995 (Pub. L. 104–4), the

Coast Guard must consider whether this

rule will result in an annual

expenditure by state, local, and tribal

governments, in the aggregate of $100

million (adjusted annually for inflation).

If so, the Act requires that a reasonable

number of regulatory alternatives be

considered, and that from those

alternatives, the least costly, most costeffective, or least burdensome

alternative that achieves the objective of

the rule be selected.

No state, local, or tribal government

entities will be affected by this rule, so

this rule will not result in annual or

aggregate costs of $100 million or more.

Therefore, the Coast Guard is exempt

from any further regulatory

requirements under the Unfunded

Mandates Act.

List of Subjects in 33 CFR Part 165

Harbors, Marine Safety, Navigation

(water), Reporting and recordkeeping

requirements, Security measures,

Waterways.

Regulation

In consideration of the foregoing,

Subpart F of Part 165 of Title 33, Code

of Federal Regulations, is amended as

follows:

1. The authority citation for 33 CFR

Part 165 continues to read as follows:

Authority: 33 U.S.C. 1231; 50 U.S.C. 191;

33 CFR 1.05–1(g), 6.04–1, 6.04–6 and 160.5;

49 CFR 1.46.

2. A new § 165.T11–038 is added to

read as follows:

§ 165.T11–038 Safety Zone: Colorado

River, Laughlin, Nevada.

(a) Location. The following area

constitutes a safety zone in the

navigable waters of the Colorado River,

Laughlin, Nevada. The safety zone

consists of a circular area with a radius

of 1500 feet centered around a single

buoy located approximately equidistant

between the Laughlin Bridge and 500

feet north of the launch ramp at Davis

Camp.

(b) Effective Dates. This section is

effective from 7 a.m. (PDT) until 6:30

p.m. (PDT) on May 30 and 31, 1998.

(c) Regulations. In accordance with

the general regulations in § 165.23 of

this part, entry into, transit through, or

anchoring within this zone is prohibited

unless authorized by the Captain of the

Port.

Dated: April 20, 1998.

J.A. Watson,

Commander, U.S. Coast Guard, Captain of

the Port, San Diego, California.

[FR Doc. 98–11650 Filed 4–30–98; 8:45 am]

BILLING CODE 4910–15–M

DEPARTMENT OF AGRICULTURE

Forest Service

36 CFR Part 223

RIN 0596–AB41

Sale and Disposal of National Forest

Timber; Indices To Determine MarketRelated Contract Term Additions

AGENCY: Forest Service, USDA.

ACTION: Final rule.

SUMMARY: This final rule amends

current regulations providing for

Market-Related Contract Term

Additions, by requiring the use of

Industry Series Producer Price Indices

from the Bureau of Labor Statistics,

rather than the previously required

indices in the Commodity Series. Use of

a different Producer Price Index series

requires a concomitant change in

procedures for determining when

market-related contract term additions
Federal Register / Vol. 63, No. 84 / Friday, May 1, 1998 /Rules and Regulations 24111

are needed. In addition to changing the

index series, the final rule makes a

number of technical changes. The

intended affect is to grant timber sale

contract term additions based on market

criteria that are more representative

than those currently used.

DATES: This rule is effective June 1,

1998.

FOR FURTHER INFORMATION CONTACT:

Rex Baumback, Timber Management

Staff, MAIL STOP 1105, Forest Service,

USDA, P.O. Box 96090, Washington, DC

20090–1105, (202) 205–0855.

SUPPLEMENTARY INFORMATION:

Background

Experience indicates that the lumber

market declines that would justify a

market-related timber sale contract term

addition generally coincide with

substantial economic dislocation in the

wood products industry. Such economic

distress broadly affects community

stability, the ability of the wood

products industry to supply

construction lumber and other wood

products from domestic sources, and

threatens the existence of wood

manufacturing plants needed to meet

future demands for wood products.

Accordingly, on December 7, 1990, the

Department published a final rule (55

FR 50643) to establish procedures at 36

CFR 223.52 for extending contract

termination dates to prevent contract

default or severe financial loss to the

purchaser in response to adverse

conditions in the lumber markets. The

rule, which has remained in effect until

now, provides that if there is a drastic

decline in wood product prices a

market-related contract term addition

would be triggered.

The rule also requires the use of

various wood product Producer Price

Indices, prepared by the Department of

Labor, Bureau of Labor Statistics (BLS),

to determine whether a drastic

reduction in wood product prices has

occurred. Since adoption of the rule, a

drastic reduction occurred for Douglasfir, Dressed Index, during the first

quarter of 1991 and, most recently, in

the second quarter of 1995. As a result,

the Forest Service notified purchasers

and, upon the purchasers’ written

request, added an additional year to

timber sale contract terms for qualifying

contracts.

In order to address timber sale

purchaser concerns and technical issues

related to implementation of this

regulation, the Forest Service proposed

a revision to this rule and requested

public comment on October 21, 1996

(61 FR 54589). The deadline for

receiving comments was January 21,

1997.

Response to Comments Received

Nineteen respondents provided

responses to the proposed rule.

Comments were received from 14 timber

sale purchasers, four timber industry

associations, and one consulting

forester. A summary of the comments

and the Department’s response to them

follow.

General Comments

Comment. One respondent requested

that efforts to implement changes to

Market-Related Contract Term

Additions (MRCTA) be delayed until a

formal revision of the timber sale

contract could be completed.

Response. The Department realizes

that it would be desirable to consider all

possible contract changes at one time.

However, while a comprehensive

revision of the timber sale contract is

being considered, the timeframe for the

completion of this revision is

undetermined. Furthermore, there will

always be a need for periodic revisions

of portions of the timber sale contract to

meet new situations. The revision of

MRCTA procedures will allow the

timber sale contract to be more

responsive to changing economic

conditions; therefore, the Department

sees no benefit to delaying amendment

of the MRCTA regulations.

Comment. One respondent expressed

a need for a procedure to address a slow

lumber market decline, as well as a

rapid lumber market decline.

Response. Major softwood lumber

market declines during the past 50 years

have occurred within a period of 30

months or less. Both the current

MRCTA procedures and this final rule

evaluate the significance of market

changes over a period of 27 months.

Data indicate that nearly 50 percent of

the total volume sold is contained in

contracts shorter than 3 years in length

and nearly 80 percent of all timber sale

contracts are shorter than 3 years in

length. Average contract length has been

declining steadily in recent years. A

lumber market decline over a period of

more than 30 months is unlikely, based

on historic trends, and most contracts

would not be adversely affected if such

a lumber market decline were to occur.

Thus, the Department does not agree

that there is a need to establish a new

procedure to address the unlikely

possibility of a slow lumber market

decline.

Availability of MRCTA

Section 223.52(a) of the proposed rule

provided that contracts that contain

periodic payment requirements will

contain a MRCTA provision.

Comment. Thirteen respondents

stated that since lumber markets are so

volatile, MRCTA should be available for

all timber sales over 1 year in length or

for any sale that is extended beyond 1

year in length for reasons beyond the

control of the purchaser.

Response. It appears that some of

these respondents misinterpreted the

proposed rule by concluding that

MRCTA would apply only to contracts

over 2 years in length. Both the current

procedure and the proposed rule

provide for MRCTA for any contract that

contains periodic payment provisions.

Periodic payment provisions are

included in contracts that are longer

than one full normal operating season.

Under current procedures, when

contracts are awarded during the normal

operating season, the length of the

contract could exceed 1 year and not

include MRCTA provisions. The

Department agrees to change procedures

and include MRCTA procedures in

timber sale contracts that exceed 1 year

in length, regardless of whether or not

the contract contains periodic payment

provisions, except as provided in

§ 223.52(a)(3), harvesting rapidly

deteriorating timber.

However, the Department does not

agree with the request to modify timber

sale contracts to include MRCTA if

those contracts are extended beyond 1

year in length for reasons beyond the

control of the purchaser. Since contracts

currently contain provisions for

compensating purchasers if their

contracts are suspended, providing for

MRCTA for the few contracts that may

be extended beyond 1 year is an

additional unnecessary compensation.

Selection of Index

Section 223.52(a)(2) of the proposed

rule provided that the Forest Supervisor

would select the price index for

contracts. This paragraph in the

proposed rule also provides that only

one price index may be used in

contracts.

Comment. Fourteen respondents

remarked that purchasers should be

allowed to choose the price index when

the contract is awarded, based on their

assessment of the lumber market and

their intended use of the wood from that

sale. Some of these respondents said

they were concerned about the burden

of the Forest Supervisor in choosing an

index.

Eight respondents said that if

purchasers choose the index, the

contract could be modified later to

change the index if the sale was
24112 Federal Register / Vol. 63, No. 84 / Friday, May 1, 1998 /Rules and Regulations

extended beyond 4 years or was

transferred to another party.

Response. The index is based on the

species and products being sold. It is

not a burden on the Forest Supervisor

to choose the index, nor are there valid

reasons to change the index after the

sale is bid. Therefore, the Department

declines to change this section of the

regulation, based on this comment.

Comment. Seventeen respondents

proposed using the Wood Chip Index

with all qualifying sales, since all sales

have a significant chip component and

many sales have a mixture of sawtimber

and chipable material. Therefore,

contract relief would be granted if either

the lumber or the wood chip index

showed a drastic decline in market

price.

Response. The Department thinks that

the volume of chip by-products

produced with a sawlog timber sale is

not enough to justify the MRCTA

extension, based solely on a drastic

decline in the Wood Chip Index.

Further, it is the Department’s view that

inclusion of more than one index in a

given timber sale would not meet the

‘‘substantial overriding public interest’’

standard required by the National Forest

Management Act (16 U.S.C. 472a(c)).

Substantial overriding public interest

has been determined to exist when the

criteria in the regulation have been met.

When the criteria in the regulation have

been met, there is a disruption of the

economy that may result in loss of

industry and jobs. If more than one

index is used for granting extensions on

timber sale contracts, it is unlikely that

this criteria for substantial overriding

public interest would be met.

Harvesting Objective

Section 223.52(a)(3)(i) of the proposed

rule provided that MRCTA will not be

used in timber sales with a primary

objective of harvesting damaged, dead,

or dying timber.

Comment. Nine respondents said that

only those sales with accelerated

harvest provisions should be exempt

from MRCTA and, once the accelerated

harvest is completed, the contract

should be modified to include MRCTA.

These respondents pointed out that

many sales containing damaged, dead,

or dying timber or salvage are not in

need of urgent harvest because the

material is not deteriorating rapidly.

Response. The Department agrees that

some sales containing damaged, dead,

or dying timber or salvage are not in

need of urgent harvest because the

material is not deteriorating rapidly.

Therefore, this paragraph has been

modified in the final rule to preclude

use of MRCTA only when the sale is

subject to rapid deterioration.

Furthermore, an additional paragraph

has been added to state that completion

dates specified in such contracts will

not be extended, based on MRCTA.

Completion dates specified in timber

sale contracts usually provide for

shorter time periods for the rapid

harvest of deteriorating timber or

specific timeframes when road

construction is required.

Stumpage Rate Adjustment

Section 223.52(a)(3)(ii) of the

proposed rule provided that contracts

that contain stumpage rate adjustment

provisions will not include MRCTA

provisions.

Comment. Seventeen respondents

indicated that MRCTA and stumpage

rate adjustment provisions fulfill

separate and distinct functions in the

timber sale contract and that both are

needed.

Response. Market-related contract

term addition provides additional time

during a significant lumber market

decline for purchasers to perform

contracts and to avoid a situation

requiring administrative intervention.

Thus, the MRCTA procedure allows

time for the market to improve and

provides an opportunity to harvest a

mixture of high and low priced sales.

Conversely, the stumpage rate

adjustment provisions allow the

Government and purchaser to share the

risk and reward of market fluctuations,

protecting the agency’s ability to

provide an even flow of products in

both good and bad markets. The

stumpage rate adjustment procedure

provides assistance by allowing a

reduced price during lumber market

declines. Stumpage rate adjustment and

market-related contract term addition

respond to different problems associated

with lumber market declines and both

procedures serve useful functions.

Therefore, this paragraph is eliminated

from the regulation.

Price Indices

Section 223.52(b)(1)(i) of the proposed

rule provided that Bureau of Labor

Statistics Producer Price Indices for

Hardwood Lumber, Eastern Softwood

Lumber, Western Softwood Lumber, and

Wood Chips be used in MRCTA

provisions.

Comment. Eight respondents

expressed a need for a separate index for

western hardwood sales.

Response. There is no index available

that represents only western hardwood

lumber, since the amount of hardwood

lumber produced in the West is too

small to provide a meaningful index.

The amount of hardwood harvested

from Forest Service land in the West is

also very small. In addition, the

available Hardwood Index is

representative of most hardwood

markets, including those in the West;

therefore, no change is being made from

the list of indices from what was

proposed.

Comment. Eight respondents stated

that the Wood Chip Index is based

primarily on data on eastern markets (60

percent). They desired more data on

western wood chip markets in this

index in order to reflect market

conditions as closely as possible.

Response. Data available for the

producer price wood chip index is

limited. Using the two lower level

indices for short tons (eastern wood

chips) and standard units (western

wood chips) would weaken the

reliability of both indices. Analysis has

indicated little difference between the

two indices in their ability to identify a

severe chip market decline; therefore,

the Department will continue using only

one national Wood Chip Index in

MRCTA.

Use of Preliminary Indices

Section 223.52(b)(1)(ii) of the

proposed rule provided that preliminary

index values will be revised when final

index values are available, but that the

identification of qualifying quarters will

not be changed, based on the final index

values.

Comment. Eight respondents

indicated that to simplify recordkeeping

and reduce the chance of error, the

Forest Service should utilize

preliminary indices and not revise

indices when final data becomes

available.

Response. The Department believes

that the best available data should be

used for determining qualifying quarters

for MRCTA and that the chance of an

undetected clerical error is slight.

Therefore, preliminary indices must be

updated as final data becomes available.

However, as stated in § 223.52(b)(1)(ii)

of the final rule, the determination of

qualifying quarters, although based

partially on preliminary data, will not

be revised when final data becomes

available.

Significant Market Decline

Section 223.52(b)(2) of the proposed

rule provided that a significant market

decline has occurred when, for 2 or

more consecutive quarters, the index is

15 percent below the average index for

the four highest of the previous 8

quarters. On average, this criteria

indicates an approximate 25 percent

decline in price over a 2-year period.
Federal Register / Vol. 63, No. 84 / Friday, May 1, 1998 /Rules and Regulations 24113

Comment. Five respondents stated

that the preamble of the proposed rule

makes an arbitrary, subjective, and

unsupported claim that a significant

lumber market decline is defined as a 25

percent decline over a 2-year period.

These respondents proposed that the

procedures be adjusted to ensure that a

market similar to the 1991 lumber

market decline trigger an MRCTA for all

indices.

Response. Between June 1989 and

December 1990, the inflation adjusted

Softwood Lumber Index declined 16

percent, while the Douglas Fir Dressed

lumber index declined 25 percent.

Indices, based on a single species, are

more volatile. One of the objectives of

this MRCTA regulation is to base the

drastic wood price determination on

indices that are broader-based than a

single species. The Department is

satisfied with how indices are triggered

using the new procedures and no

change from the proposed MRCTA

triggering procedures is being made.

Normal Operating Season

Section 223.52(c)(1) of the proposed

rule provided that, after the first year of

contract time is granted, additional time

will be added during the ‘‘normal

operating season.’’

Comment. Sixteen respondents stated

that the term ‘‘normal operating season’’

should be redefined for this regulation,

so that it includes only time periods

which actually allow operations to

occur. If the definition of normal

operating season is not changed, these

respondents suggested that additional

time could be added day-for-day to the

contract during periods when there are

no restrictions on logging.

Response. The purpose of a normal

operating season is to identify a period

of time where additional contract

operating time can be granted when the

timber sale purchaser is delayed by

weather or other reasons. The normal

operating season should identify

periods of time when the weather is

likely to allow logging and operations

are not restricted for other reasons. The

Department does not believe that a

different definition of normal operating

season or new criteria for additional

contract time is needed for the purposes

of this rule.

Conclusion

The MRCTA rule provides additional

contract time on timber sale contracts

when severe market declines occur.

This final rule revises the current rule

to use indices that are more

representative of the lumber market and

to make technical improvements to

procedures.

Regulatory Impact

This final rule has been reviewed

under USDA procedures and Executive

Order 12866 on Regulatory Planning

and Review. It has been determined that

this is not a significant rule. This rule

will not have an annual effect of $100

million or more on the economy nor

adversely affect productivity,

competition, jobs, the environment,

public health or safety, nor State or local

governments. This rule will not interfere

with an action taken or planned by

another agency nor raise new legal or

policy issues. In short, little or no effect

on the national economy will result

from this final rule. This action consists

of administrative changes to regulations

affecting timber sale contract length.

The Producer Price Indices selected and

revised procedures better reflect the

cyclical nature of lumber markets and

help the agency determine whether a

drastic downturn has actually occurred

in these particular markets. Finally, this

action will not alter the budgetary

impact of entitlements, grants, user fees,

or loan programs or the rights and

obligations of recipients of such

programs. Accordingly, this final rule is

not subject to OMB review under

Executive Order 12866.

Moreover, this final rule has been

considered in light of the Regulatory

Flexibility Act (5 U.S.C. 601 et seq.),

and it is hereby certified that this action

will not have a significant economic

impact on a substantial number of small

entities as defined by that Act. Failure

to adopt these improved procedures for

measuring drastic decline in wood

product prices will subject both small

purchasers and large purchasers to

increased risk of default in those

situations where current indices are not

as valid as indicators of price decline as

those in this final rule. Modifications to

timber sale contracts have the intended

effect of allowing purchasers of timber

sales to complete timber sales when

adverse conditions have occurred in the

lumber market and when no other

means of granting additional contract

time are available.

Unfunded Mandates Reform

Pursuant to Title II of the Unfunded

Mandates Reform Act of 1995 (2 U.S.C.

1531–1538), which the President signed

into law on March 22, 1995, the

Department has assessed the effects of

this rule on State, local, and tribal

governments and the private sector.

This rule does not compel the

expenditure of $100 million or more by

any State, local, or tribal governments or

anyone in the private sector. Therefore,

a statement under section 202 of the Act

is not required.

Environmental Impact

This final rule deals with business

practices related to timber sale contracts

and, as such, has no direct effect on the

amount, location, or manner of timber

offered for purchase. Section 31.1b of

Forest Service Handbook 1909.15 (57 FR

43180; September 18, 1992) excludes

from documentation in an

environmental assessment or impact

statement ‘‘rules, regulations, or policies

to establish Service-wide administrative

procedures, program processes, or

instructions.’’ The agency’s assessment

is that this rule falls within this category

of actions and that no extraordinary

circumstances exist which would

require preparation of an environmental

assessment or environmental impact

statement.

No Takings Implications

This rule has been analyzed in

accordance with the principles and

criteria contained in Executive Order

12630, and it has been determined that

the rule does not pose the risk of a

taking of Constitutionally-protected

private property. There are no

Constitutionally-protected private

property rights to be affected, since the

contract provisions that implement this

rule will only be used in new contracts

or with contract modifications that are

made at the request of the timber sale

purchaser.

Civil Justice Reform Act

This final rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. This final rule (1)

preempts all State and local laws and

regulations that are in conflict or which

would impede its full implementation;

(2) has no retroactive effect; and (3) does

not require administrative proceedings

before parties may file suit in court

challenging its provisions.

Controlling Paperwork Burdens on the

Public

This final rule does not contain any

recordkeeping or reporting requirements

or other information collection

requirements as defined in 5 CFR 1320

and, therefore, imposes no paperwork

burden on the public. Accordingly, the

review provisions of the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501,

et seq.) and implementing regulations at

5 CFR part 1320 do not apply.

List of Subjects in 36 CFR Part 223

Administrative practice and

procedure, Exports, Forests and forest
24114 Federal Register / Vol. 63, No. 84 / Friday, May 1, 1998 /Rules and Regulations

products, Government contracts,

National forests, Reporting

requirements, Timber sales.

Therefore, for the reasons set forth in

the preamble, Part 223 of Title 36 of the

Code of Federal Regulations is

amended, as follows:

PART 223—SALE AND DISPOSAL OF

NATIONAL FOREST SYSTEM TIMBER

1. The authority citation for part 223

continues to read:

Authority: 90 Stat. 2958, 16 U.S.C. 472a; 98

Stat. 2213, 16 U.S.C. 618, 104 Stat. 714–726,

16 U.S.C. 620–620j, unless otherwise noted.

2. Revise § 223.52 to read as follows:

§ 223.52 Market-related contract term

additions.

(a) Contract provision. (1) Except as

provided in paragraph (a)(3) of this

section, each timber sale contract

exceeding 1 year in length shall contain

a provision for the addition of time to

the contract term, under the following

conditions:

(i) The Chief of the Forest Service has

determined that adverse wood products

market conditions have resulted in a

drastic reduction in wood product

prices applicable to the sale; and

(ii) The purchaser makes a written

request for additional time to perform

the contract.

(2) The contract term addition

provision of the contract must specify

the index to be applied to each sale. The

Forest Supervisor shall determine, and

select from paragraph (b) of this section,

the index to be used for each sale based

on the species and product

characteristics, by volume, being

harvested on the sale. The index

specified shall represent more than onehalf of the advertised volume.

(3) A market-related contract term

addition provision shall not be included

in contracts where the sale has a

primary objective of harvesting timber

subject to rapid deterioration.

(b) Determination of drastic wood

product price reductions. (1) The Forest

Service shall monitor and use Producer

Price Indices, as prepared by the

Department of Labor, Bureau of Labor

Statistics (BLS), adjusted to a constant

dollar base, to determine if marketrelated contract term additions are

warranted.

(i) The Forest Service shall monitor

and use only the following indices:

BLS producer price index Industry

code

Hardwood Lumber .................... 2421# 1

Eastern Softwood Lumber ........ 2421# 3

Western Softwood Lumber ....... 2421# 4

Wood Chips .............................. 2421# 5

(ii) Preliminary index values will be

revised when final index values become

available, however, determination of a

qualifying quarter will not be revised

when final index values become

available.

(2) The Chief of the Forest Service

shall determine that a drastic reduction

in wood product prices has occurred

when, for 2 or more consecutive

quarters, the applicable adjusted price

index is less than 85 percent of the

average of such adjusted index for the

4 highest of the 8 calendar quarters

immediately prior to the qualifying

quarter. A qualifying quarter is a quarter

where the applicable adjusted index is

more than 15 percent below the average

of such index for the 4 highest of the

previous 8 calendar quarters. Qualifying

quarter determinations will be made

using the Producer Price Indices for the

months of March, June, September, and

December.

(3) A determination, made pursuant to

paragraph (b)(2) of this section, that a

drastic reduction in wood product

prices has occurred, shall constitute a

finding that the substantial overriding

public interest justifies the contract term

addition.

(c) Granting market-related contract

term additions. When the Chief of the

Forest Service determines, pursuant to

this section, that a drastic reduction in

wood product prices has occurred, the

Forest Service is to notify affected

timber sale purchasers. For any contract

which has been awarded and has not

been terminated, the Forest Service,

upon a purchaser’s written request, will

add 1 year to the contract’s terms,

except as provided in paragraphs (c)(1)

through (4) of this section. This 1-year

addition includes time outside of the

normal operating season. (1) Additional contract time may not

be granted for those portions of the

contract which have a required

completion date or for those portions of

the contract where the Forest Service

determines that the timber is in need of

urgent removal or that timber

deterioration or resource damage will

result from delay. (2) For each additional consecutive

quarter, in which a contract qualifies for

a market-related contract term addition,

the Forest Service will, upon the

purchaser’s written request, add an

additional 3 months during the normal

operating season to the contract. (3) No more than twice the original

contract length or 3 years, whichever is

less, shall be added to a contract’s term

by market-related contract term

addition.

(4) In no event shall a revised contract

term exceed 10 years as a result of

market-related contract term additions.

(d) Recalculation of periodic

payments. Where a contract is

lengthened as a result of market

conditions, any subsequent periodic

payment dates shall be delayed 1 month

for each month added to the contract’s

term.

Dated: April 27, 1998.

Brian Eliot Burke,

Deputy Under Secretary, Natural Resources

and Environment.

[FR Doc. 98–11626 Filed 4–30–98; 8:45 am]

BILLING CODE 3410–11–M

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[FRL–5983–3]

Technical Amendments to Approval

and Promulgation of Air Quality

Implementation Plans; State of

Delaware: Open Burning and Non-CTG

RACT Regulations; Correction of

Effective Date Under Congressional

Review Act (CRA)

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Direct final rule; correction of

effective date under CRA.

SUMMARY: On March 12, 1997 (62 FR

11329), the Environmental Protection

Agency published in the Federal

Register a direct final rule concerning

the approval of a State Implementation

Plan (SIP) revision submitted by the

State of Delaware, consisting of two

control measures to reduce volatile

organic compound (VOC) emissions,

which established an effective date of

May 12, 1997. This document corrects

the effective date of the rule to May 1,

1998 to be consistent with sections 801

to 808 of the Congressional Review Act

(CRA), enacted as part of the Small

Business Regulatory Enforcement

Fairness Act, 5 U.S.C. 801 and 808.

EFFECTIVE DATES: This rule is effective

on May 1, 1998.

FOR FURTHER INFORMATION CONTACT: Tom

Eagles, Office of Air, at (202) 260–5585.

SUPPLEMENTARY INFORMATION:

I. Background

Section 801 of the CRA precludes a

rule from taking effect until the agency

promulgating the rule submits a rule

report, which includes a copy of the

rule, to each House of Congress and to

the Comptroller General of the General

Accounting Officer (GAO). EPA recently