timber sale contract - s a m p l e

                                                          S   A   M   P   L   E

TIMBER SALE CONTRACT

STATE OF __________

COUNTY OF ___________

THIS INDENTURE, Made the ____ day of _______ in the year of Two Thousand Twenty ____, between __________________ as party of the first part, hereinafter called Grantor, and ________________ as party of the second part, hereinafter called Grantee.

WITNESSETH that:   Grantor, for and in consideration of the sum of _____ Thousand Dollars ($__,___.__) in hand paid at and before the sealing and delivery of these presents, the receipt whereof is hereby acknowledged, has granted, bargained, sold, aliened, conveyed and confirmed, and by these presents does grant, bargain, sell, alien and convey and confirm unto the said Grantee, ALL UNMARKED PINE and UNMARKED HARDWOOD trees and timber, which are standing, lying, or growing upon that certain tract or parcel of land in _______ County, _________, (the "Timber") as more particularly described in "Exhibit A", which is attached hereto and to which reference is hereby made for a more complete description (the "Property").  A Buffer or Streamside Management Zone (SMZ) has been designated with _______-colored flagging.  No trees are to be harvested within the SMZ.

This conveyance of the trees and timber hereinabove described is made subject to the following exceptions and conditions:

1.         Grantee shall have Eighteen Months from the date of this contract in which to cut and remove the timber from the land herein described, and to exercise all the privileges herein granted.  At the end of the contract term, all of Grantee's rights and privileges hereunder shall terminate and expire, whether or not timber has been harvested, unless contract extension has been granted as provided for in item #5 or item #9 below.

2.         Grantee shall have the right for itself, its servants, agents and workmen of ingress, egress, and regress, in, through, across, over and upon the said lands for the purpose of cutting, manufacturing, removing and transporting through and over the same the said trees and timber herein granted, with the full right to use such vehicles and other machinery usual for logging operations.

3.         Grantee and its agents shall exercise due care consistent with good forestry practices not to cut or damage trees not included in this Timber Sale Contract.  Grantee agrees to cut or otherwise damage as few trees not included in this Timber Sale Contract as possible or practical.  In the event that any trees not included in this Timber Sale Contract are unnecessarily cut, the Grantor shall be paid for said unnecessarily cut trees as follows:  The penalty for cutting of merchantable ‘leave’ trees (marked trees) or trees within the SMZ will be $50 per Ton.  Also, a $50 per tree penalty will be assessed for damage to merchantable marked trees which, in the sole judgement of Fall Line Consultants, LLC is careless or unnecessary damage.  Penalty trees will be flagged and brought to Grantee’s attention by Fall Line Consultants, LLC, as Grantor’s agent.

4.         Deck locations and logging road locations will be approved by Grantor's forestry representative, Fall Line Consultants, LLC.  Use of a delimbing gate will be permitted; provided however that Grantee shall use reasonable efforts to keep damage to trees on the Property other than Timber to a minimum.

5.         Grantee agrees that the roads and trails already on the property will be used whenever possible and Grantee agrees to leave such roads used in as good a condition as it finds them.  Roads created for the logging operation must be left in a passable condition, free of debris, at conclusion of harvesting.  Logging slash in decking locations must be pushed and concentrated in the center of the deck prior to conclusion of harvesting.  Harvesting may be halted during extended periods of inclement weather if, in the sole judgement of Fall Line Consultants, LLC, excessive damage to residual timber and/or compaction of soil will result from logging activities if not halted.  In this event, the contract term shall be extended for the same length of time that harvesting is suspended.

6.         Grantee shall remove tops, limbs, and other debris which might fall in creeks or branches or upon primary roads and in the ditches thereof so that the flow of traffic on said roads will not be affected and so that the drainage will not be impeded by any such debris.  Grantee shall also remove any tops and limbs which it causes to fall or allows to fall on open fields or pastures. During the term herein and upon expiration Grantee shall clean up or cause to be cleaned up at Grantee's expense all litter, trash, or refuse attributable to its activities on the property.  Grantee also agrees not to cause creeks or branches on the Property to become filled in, stopped, or polluted as a result of its operations on said property.  Grantee will follow ________ BMP's as described or referenced in the ________ Forestry Commission publication "Best Management Practices in ________".

7.         Grantee shall hold Grantor and Fall Line Consultants, LLC, as Grantor's agent, harmless against any damages which may be caused by the negligence of Grantee, its servants, agents, employees, or contractors in any operation in connection with cutting and removing the timber herein sold.  Grantee shall further indemnify, defend and hold Grantor and Fall Line Consultants, LLC, as Grantor's agent, harmless from any and all liens which arise as a result of Grantee's activities on the Property and against any and all claims for death of or injury to persons or damage to Properties arising out of or as a result of Grantees going upon the property.  Grantee represents and warrants that its servants, agents, employees and contractors are not servants, agents, employees or contractors of Grantor.  Grantee represents and warrants Grantee has inspected the Property on which Timber is to be harvested and accepts the Property "as is".  Grantee acknowledges that Grantor has made and makes no representation or warranty that the Property is a safe workplace.  Grantee shall, prior to taking any action on the Property, provide Grantor with an insurance certificate evidencing that Grantee's Worker's Compensation coverage as required by the State of ________ and General and Vehicle Liability coverage of at least $500,000.00 per occurrence are both in force.  Grantee represents and warrants to Grantor and Fall Line Forestry Consultants, LLC, that it has such insurance coverage and agrees and represents and warrants that it shall maintain such coverage for occurrences during the term of this Agreement.

8.         At the completion of the Timber Sale Contract, Grantee, if so requested, will provide Grantor with a release document or quit claim deed notifying Grantor of termination and release of any further interest in said timber or property belonging to Grantor.    

9.         In the event of any dispute between Grantor and Grantee arising out of the terms and conditions of paragraphs 3 to 8 of this Timber Sale Contract and the performance of either party thereunder, Grantor and Grantee agree to accept the decision of an arbitration board of three members conducted in accordance with the rules of the American Arbitration Association.  One member shall be selected by the Grantor, one by the Grantee, and the third member shall be selected by the first two arbiters appointed.  The arbiters must reach an agreement within thirty (30) days after the appointment of an arbiter by the Grantor and Grantee.  The period allowed herein for cutting and removal of the timber shall be extended automatically for the number of days required to complete the selection and arbitration of such issue.  The decision of the arbiters shall be final and binding on all parties.

Grantor covenants to and with Grantee, its successors and assigns, that he is seized of a fee simple title to the within described property, rights and privileges hereby conveyed; that he has the right to grant and convey the trees and timber, rights and privileges hereby granted and conveyed; that the title thereto is free from defects, imperfections and encroachments; that he does warrant and will forever defend said title to the same against the lawful claims of all persons whomsoever; and that the Grantee, its successors and assigns, shall quietly and peaceably possess and enjoy the same.

In furtherance of the foregoing warranty, in the event that grantee shall be lawfully prevented from harvesting any trees conveyed under the terms of this timber deed which are subject to the provisions of the Endangered Species Act, then grantor agrees to refund to grantee the purchase price of the trees which grantee cannot harvest.  It is agreed that the amount of timber impacted by a potential Federal Environmental Lien will be agreed to by Seller’s and Purchaser’s respective agents.

TO HAVE AND TO HOLD the said above granted and described trees and timber, with all and singular the rights, members and appurtenances thereunto appertaining, to the only proper use, benefit and behoof of Grantee, its successors and assigns, in fee simple; and Grantor, his successors and assigns, heirs, executor and administrators will forever defend title to the same against the lawful claims of all parties whomsoever.

IN WITNESS WHEREOF, the Grantor has signed and sealed this agreement, the day and year above set out.

Signed, sealed and delivered

in the presence of:                                           Grantor:  _________________

By: _____________, Title

_______________________                                _______________________________

Witness                                                            Name                                       (Seal)

_______________________                                          

Notary Public                                                                        

My Commission expires:                                                   

_____________________                                                               

ACCEPTANCE BY GRANTEE

Signed, sealed and delivered                               

in the presence of:                                          Grantee: ______________

_____________________                                   By:___________________________

Witness                                                                 Title

______________________                                  

Notary Public                                                     

My Commission expires:

____________________