Sample Timber Sale Contract

(make this printable)
This agreement is made and entered into between the parties below hereinafter called the SELLER and the PURCHASER.

SECTION I.

SECTION II.

THE SELLER AGREES TO SELL and the Purchaser agrees to buy, under the terms and conditions hereinafter stated, all the timber marked or designated by the Seller, as estimated in SECTION V, on certain lands held by the Seller in the State of _______as described in SECTION I. Timber to be harvested is marked or designated according to the attachment.

SECTION III.

THE PURCHASER AGREES TO PAY the Seller the amounts specified in SECTION I, more or less, as may be determined by the actual scale at the rate and by the method specified in SECTION V. The Purchaser also agrees to pay the Seller a separate refundable deposit as specified in SECTION I, to guarantee the performance of SECTIONS VII and VIII.

SECTION IV.

UPON RECEIPT OF THE DOWN PAYMENT, and the signature of both parties, this agreement becomes effective. The Purchaser agrees to pay the Seller a down payment in the amount specified in SECTION I when the contract is signed. The balance shall be paid before any cutting begins.

SECTION V.

ALL TIMBER DESIGNATED BELOW SHALL BE CUT and removed before the date specified in SECTION I unless extension of time is requested and granted in writing. Sale expiration shall occur on this date or before if all products have been cut, removed, and final payment completed. The Purchaser is liable for the full bid price for all timber listed below, including any uncut or not removed at sale expiration. This liability shall continue notwithstanding injury to the timber from natural causes, Acts of God, or human acts including vandalism or theft. All rights to remaining products, cut or uncut, revert to the Seller at sale expiration.

IN WITNESS WHEREOF, the parties hereto have set their hands on the dates shown below. WE HAVE READ AND UNDERSTAND THIS AGREEMENT INCLUDING THE REVERSE SIDE AND ANY ATTACHMENTS, ADDITIONS, OR DELETIONS.

SECTION VI.

INSURANCE - To the extent the Seller desires, the Purchaser has informed the Seller of the amount of liability, property damage, Workers’ Compensation, and other relevant insurance carried by the Purchaser.

SECTION VII.

THE PURCHASER AGREES TO CUT AND REMOVE SAID TIMBER AT PURCHASER’S OWN RISK AND IN A WORKMANLIKE MANNER and in accordance with the following conditions:

1. CUTTING AND SLASH DISPOSAL REGULATIONS, as attached, shall be observed. See Estimate of Timber Volume or other attachment.
2. UTILIZATION - Trees cut for pulpwood shall be utilized to at least 4" top diameter and those cut for sawlogs utilized to at least an 8" top diameter unless otherwise specified in the cutting regulations or unless decay or branching limits merchantability.
3. STUMP HEIGHTS shall be as low as practicable, but not to exceed one-half (1/2) their diameter in height.
4. SAWTIMBER SHALL BE SCALED by the Scribner Decimal C rule and Pulpwood according to 128 cu. ft./cord for 8' wood and 133 1/3 cu. ft./cord for 100" wood or State of ___________ (DNR) Standards for Weight Scaling.
5. REASONABLE CARE SHALL BE TAKEN TO PROTECT the residual and neighboring stands from damage.
6. ONLY TIMBER DESIGNATED IN SECTION V shall be cut and removed. Whenever any undesignated trees are cut or needlessly damaged, the Purchaser shall pay for them at a rate of three (3) times their scale value.
7. THE PURCHASER SHALL REPAIR, at his own expense, damage beyond ordinary wear and tear caused by Purchaser or Purchaser’s agents to waterways, trails, roads, gates, fences, bridges, or other improvements on the Seller’s property.
8. LOCATION OF ROADS, landings, etc., shall be mutually agreed to by the Purchaser and the Seller or their agents. Only nonmerchantable wood may be used for construction purposes in connection with the logging operation.
9. BEST MANAGEMENT PRACTICES for water quality shall be observed by the Purchaser for the duration of this contract.
10. THE PURCHASER SHALL REMOVE all sale-generated debris within twenty (20) days of sale expiration; including machine parts, oil cans, paper, and other trash, and Purchaser’s equipment and structures. Items not removed are deemed abandoned, become the property of the Seller, and may be removed or disposed of at the Purchaser’s expense, including but not limited to the performance deposit.
11. FIRE - Care shall be exercised at all times by the Purchaser and Purchaser’s agents against the start and spread of wildfire. The Purchaser agrees to pay for any and all damage and the cost of suppression of any fires caused by Purchaser or Purchaser’s agents.

SECTION VIII.

IT IS MUTUALLY UNDERSTOOD AND AGREED by and between the parties hereto as follows:

1. LIABILITY - The Purchaser agrees to save and hold harmless the Seller from any and all claims, penalties or expenses of any nature, type or description whatsoever, arising from the performance of this contract, whether asserted by itself or any individual, organization or governmental agency or subdivision.
2. WORKERS’ COMPENSATION INSURANCE, as necessary, and to at least the minimum extent required by law, shall be bought and maintained by the Purchaser to fully protect both Purchaser and Seller from any and all claims for injury or death arising from the performance of this contract.
3. THIS AGREEMENT SHALL NOT BE ASSIGNED in whole or in part by either party without the written consent of the other party.
4. ALL TIMBER included in this agreement shall remain the property of the Seller until paid for in full.
5. THE SELLER GUARANTEES PROPERTY BOUNDARIES which are marked or otherwise designated. The Seller also guarantees that Seller has full right and title to the timber included in this sale.
6. WHEN CUT PRODUCTS ARE SCALED, the Purchaser agrees to pay or the Seller agrees to refund any difference in value from the original payment based on the actual scale at the rates specified in SECTION V within thirty (30) days of harvest completion.
7. THE SELLER SHALL REFUND ANY PERFORMANCE DEPOSIT or notify Purchaser of intent to retain said deposit within thirty (30) days of sale expiration. Seller may suspend or cancel all operations for violation of any term of this agreement by the Purchaser, and for cause may retain all monies deposited.
8. IN CASE OF DISPUTE over the terms of this contract, the final decision shall rest with an arbitration board of three persons, one to be selected by each party to this contract and a third to be selected by the other two members.
9. SPECIAL STIPULATIONS (if any) are to be listed in an addendum.

SOURCE: Minnesota Department of Natural Resources, Division of Forestry.