Washington Administrative Code › Title 332 - Natural Resources, Board and Department of (See also Title 222) › Chapter 332-140 - Forest Products Industry Recovery Act of 1982 › Section 332-140-060 - Defaults

Current through Register Vol. 24-14, July 15, 2024
This section is to implement section 6 of the
				act.
(1)
(a)
Qualifying sales.
Section 6 of the act applies only to window sales which were
			 in existence as of April 3, 1982, or for which a payment is made
			 after April 3, 1982, under section 7 of the act to reinstate the
			 sale.
(b)
Written
			 notification.
The purchaser must provide the department with
			 written notification on or before July 14, 1982, stating that the
			 purchaser elects to terminate or default a sale under section 6 of
			 the act. Such notification must state that the purchaser is giving up
			 all of its rights under that contract as of the date of the
			 notification. The notification must be accompanied by a sworn written
			 statement by an authorized representative of the purchaser which
			 identifies the names of all affiliates, subsidiaries, and parent
			 companies of the purchaser which purchased a window sale. The
			 department shall provide the form for this statement. The
			 notification must also be accompanied by a $2,500 administrative fee.
			 The notification will be considered received by the department only
			 when the fee and sworn statement are received by the
			 department.
(c)
Limitation on sales to be defaulted.
The following
			 limitations apply to the sales which a purchaser may terminate or
			 default under section 6 of the act.
(i) The purchaser may default on
			 the sale(s) of its choice of which it was the purchaser as of April
			 3, 1982, if the sale qualifies under subsection (1)(a) above and if
			 the cumulative volume remaining on those sales for which notification
			 is given does not exceed 15 MMBF of forest products as of the date of
			 the notification. The volume remaining on a sale shall be computed by
			 the department by subtracting the volume of merchantable forest
			 products removed from the department's presale cruise volume of
			 merchantable forest products stated in the contract.
(ii) No sales which have been
			 assigned after April 3, 1982, may be terminated or
			 defaulted.
(iii) Only
			 entire sales may be defaulted. A purchaser may not default on part of
			 a sale under section 6 and choose to retain any right to remove
			 forest products from any part of the same sale.
(iv) A sale may be terminated or
			 defaulted even though the purchaser has operated on it and removed
			 forest products from the sale, subject to the further limitations of
			 subsection (1)(d) below.
(v) A sale on which all of the
			 forest products have been removed may not be terminated or defaulted
			 under section 6 of the act.
(d)
Limitations on defaults
			 of sales on which operations have occurred.
A sale which
			 otherwise qualifies for termination or default under section 6 of the
			 act and this section may be defaulted subject to the following
			 obligations and reservations:
(i)
			 All forest products must be paid for which were removed from the sale
			 and all due ARRF payments and other payments due must be paid,
			 including all payments for forest products and ARRF deferred under a
			 deferred payment agreement. The department reserves the full right to
			 take appropriate action against the purchaser and its surety to
			 recover all applicable damages for a failure of the purchaser to make
			 the foregoing payments on or before the receipt of the notification
			 of default.
(ii) All
			 outstanding contract requirements (other than removal of forest
			 products) which arose as a result of the purchaser's activities on
			 the sale must be performed. These requirements include, but are not
			 limited to, slash disposal preparation work, stream cleanout, falling
			 nonmerchantable forest products, road maintenance, ditching,
			 waterbarring and fire trail construction. If the purchaser fails to
			 perform the foregoing outstanding requirements, the department shall
			 determine the current cost of performing that work and charge the
			 purchaser therefor. If the purchaser fails to promptly pay such
			 charges, the department may take appropriate action to recover the
			 same from the purchaser and its surety.
(iii) The purchaser and its surety
			 are not released from any liability or duty to indemnify the
			 department which arose as a result of the acts or omissions of the
			 purchaser or its delegate relating to the sale being
			 defaulted.