Tenn. Comp. R. & Regs. 0690-02-01-.18 - DISPOSAL OF FORESTRY PRODUCTS

(1) The department having jurisdiction over the producing facility is designated as the agency for disposal of forestry products. Procedures to be followed in the disposal of forestry products are outlined below.

(a) Commercially feasible sales that are conducted to meet established objectives of timber and wildlife management shall be conducted as follows:

1. Such sales shall be under sealed bids, publicly advertised, opened, and recorded.

2. Notice of each sale shall be entered in at least one (1) newspaper of general circulation in the county or counties in which the sale is to be made. Invitations to bid shall specify the terms and conditions of the sale and the date the bids will be publicly opened and recorded, which shall be not less than twenty (20) days after the date of mailing, excluding Saturdays, Sundays, and holidays.

3. The bid of the highest responsible bidder who accepts the terms and conditions contained in the invitations to bid shall be selected.

4. The successful bidder shall be required to sign a timber sale contract at which time he will pay the full purchase price and post a performance bond equaling seven (7) percent of the sale price of the timber.

5. Payment of both of the above amounts shall be by certified or cashier's checks, payable to the disposing agency.

6. Official records of the sale will be maintained in the Nashville office of the department having jurisdiction over the producing agency. Copies of the documents described in (a)1 through (a)5 above shall be forwarded to State Personal Property Utilization Division for review.

(b) The following procedures shall be followed when commercially feasible sales are conducted as a result of natural or man made catastrophes, such as ice storms, wind storms, wildfire, or insect and disease attacks occur:

1. The department having jurisdiction over the producing facility will notify prospective buyers when catastrophes occur that require emergency sales. Also, a notice of the sale will be entered in at least one (1) newspaper of general circulation in the county or counties in which the catastrophe occurred.

2. A set price will be established for each forestry product in the sale which all contractors will be required to pay. The price of each product will be periodically reviewed and will be revised if deemed necessary. Adequate documentation shall be provided concerning the establishment of prices, and shall be dated and signed by the official or officials establishing the prices. This documentation shall be made a part of the official records of the sale.

3. All contractors will be required to sign a timber sale contract specifying the amount, time limit, the amount of performance bond, and other details of the sale.

4. Payments shall be made by certified or cashier's checks payable to the producing agency.

5. Official records shall be maintained in the Nashville office of the department having jurisdiction over the producing facility. Copies of the documents described in (b)1 through (b)4 above shall be forwarded to State Personal Property Utilization Division for review.

(c) The following procedures will be followed when sales are conducted which are not commercially feasible because they do not contain sufficient volume, or the timber is too scattered.

1. All timber involved in this type of sale will be harvested by the producing facility personnel and sold at the highest price obtainable.

2. If possible, the department designated as agent shall obtain three written bids. If not possible, documentation shall be provided setting out reasons why bids could not be obtained. This documentation shall be made a part of the official records of the sale.

3. All sales shall be approved in writing by the commissioner or head of the department or agency having jurisdiction over the producing facility, and made a part of the official records of the sale.

4. The successful bidder will not be required to sign a timber sale contract or post a performance bond.

5. All checks shall be made payable to the producing facility.

6. Official records shall be maintained in the office of the producing facility in the Nashville office of the department having jurisdiction over the producing facility. Copies of the documents described in (c)2 through (c)5 above shall be forwarded to State Personal Property Utilization Division for review.

Notes

Tenn. Comp. R. & Regs. 0690-02-01-.18

Original rule filed April 20, 1978; effective July 14, 1978.

Authority: T.C.A. §§12-235 through 12-238 and Public Acts of 1976, Chapter 821.