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United States Department of the Interior
Montana State Office
5001 Southgate Drive
Billings, Montana 59101-4669

July 14, 2011

5420 (MT923) P
Instruction Memorandum No. MT-2011-062
Expires: 9/30/2012
To:             Montana Dakotas Leadership Team
From:         State Director
Subject:     Timber Export and Substitution Restrictions                                           DD: 7/29/11
Program Area: Forest Management – Timber Sale Contracts, Stewardship Contracts, and Stewardship Agreements
Purpose:  This Instruction Memorandum will ensure companies, purchasers, contractors, recipients, affiliates, or any other parties engaged in purchasing or processing Bureau of Land Management (BLM) timber will be in compliance with the Forest Management Regulations pertaining to Timber Export and Substitution requirements.
Policy/Action: Field offices that have or plan to dispose of timber through timber sale contracts, stewardship contracts or stewardship agreements are directed to take three actions. 
  1. By July 29, 2011, send a letter to the companies and individuals on your current list of timber sale bidders, stewardship contractors, and stewardship agreement recipients to remind them of the restrictions on timber export and substitution of timber from the BLM contracts or agreements. The attached templates provide text for the letters. 
  2. The complete Timber Export Clause is to be included in all timber sale contracts, stewardship contracts, and stewardship agreements. Ensure the following paragraph regarding restrictions on timber export and substitution is included in BLM timber sale notices, stewardship solicitations, and timber sale prospectuses:  
“LOG EXPORT AND SUBSTITUTION: All timber sales, including timber from Federal rights-of-ways, shall be subject to the restrictions relating to the export and substitution of unprocessed timber from the United States in accordance with P.L. 94-165 and 43 CFR §5400 and §5424 as amended.” 
  1. Ensure the following sentence is included and read at timber sale bid openings:  
“All timber offered is restricted from export from the United States in the form of unprocessed timber and is also prohibited from substitution for exported private timber.”
Timeframe: Effective immediately.
Budget Impact: Effect on the budget is minimal.
Background: The log export market appears to be revived in Montana and South Dakota as mills pursue markets outside the United States. The BLM has indication that a few of the local mills have or are developing contracts with China for the export of processed logs. We need to remind timber sale bidders, stewardship contractors, and stewardship agreement recipients that Congress restricted the export of unprocessed BLM timber and the substitution of BLM timber for private timber shipped abroad.
Manual/Handbook Sections Affected: This IM is in conformance with current guidance found in the Forest Product Sale Procedure Handbook Series – Conduct of Sale [H-5440-1].
Coordination: The Montana State Office (MSO) Procurement Analyst; the MSO Grants Management Officer; Montana, Oregon, and Idaho Forest Management Program Leads.
Contact: Additional information is available by contacting Bill Hensley, State Forester at (406) 896-5042.
Signed by:                                                                     Authenticated by:
Jamie E. Connell                                                            Kathy Ray
State Director                                                                Staff Assistant (MT922)   
3 Attachments

Last updated: 06-28-2012