[Code of Federal Regulations]
[Title 36, Volume 2]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 36CFR223.203]

[Page 137-138]
 
              TITLE 36--PARKS, FORESTS, AND PUBLIC PROPERTY
 
          CHAPTER II--FOREST SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 223_SALE AND DISPOSAL OF NATIONAL FOREST SYSTEM TIMBER
--Table of Contents
 
 Subpart F_The Forest Resources Conservation and Shortage Relief Act of 
                              1990 Program
 
Sec. 223.203  Indirect substitution exception for National Forest
System timber from within Washington State.

    (a) Exception limits. A limited amount of unprocessed National 
Forest System timber originating from within Washington State could have 
been acquired by a person otherwise covered by the prohibition against 
indirect substitution, pursuant to Sec. 490(b) of the Act and Sec. 
223.189(e) of this subpart.
    (1) The amount of such unprocessed timber was limited to whichever 
is less:
    (i) The higher of the applicant's actual purchase receipts for 
unprocessed timber originating from National Forest System lands within 
Washington State or the Department's records, during fiscal years 1988, 
1989, and 1990, divided by 3; or
    (ii) 15 million board feet.
    (2) Such limit shall not exceed such person's proportionate share of 
50 million board feet.
    (b) Application, review and approval process. To obtain a share of 
the 50 million board feet exempted from the prohibition against indirect 
substitution in section 490(b) of the Act, a person must have submitted 
an application. Applications were required to include at least the 
following:
    (1) The amount of volume exception being requested, in thousand 
board feet (MBF);
    (2) A signed certification that reads as follows:

    ``I certify that, except for an approved share of unprocessed 
Federal timber, in accordance with 36 CFR 223.203, the prohibition 
contained in section 490(b) of the Act (16 U.S.C. 620b) applies to me. I 
have exported unprocessed timber originating from private lands from 
west of the 100th meridian in the 48 contiguous States and have acquired 
unprocessed timber from National Forest System lands located within 
Washington State in 1988, 1989 and/or 1990. I certify that the 
information provided in support of this application is a true, accurate, 
current and complete statement, to the best of my knowledge and belief. 
I agree to retain records of all transactions involving the acquisition 
and disposition of unprocessed timber from Federal lands within the area 
involved in this application for a period of 3 years beginning on the 
date the application is approved, and to make such records available for 
inspection upon the request of the Regional Forester or other official 
to whom such authority has been delegated. I make this certification 
with full knowledge and understanding of the requirements of the Act and 
do fully understand that if this application is approved, the amount of 
exception granted under this approval may not be exceeded in any one 
fiscal year, and do fully understand that if such exception is exceeded 
I will be in violation of the Act (16 U.S.C. 620, et seq.), and I may be 
subject to the penalties and remedies provided for such violation. 
Further, I do fully understand that such violation may subject me to the 
penalty of perjury pursuant to the False Statements Act (18 U.S.C. 
1001).'';


and
    (3) The application listed under this section must have been signed 
by the person making such application or, in the case of a corporation, 
by its Chief Executive Officer. The application must have been on the 
company's letterhead and must have been notarized.
    (4) The application made under this section must have been mailed to 
the Regional Forester in Portland, Oregon, no later than January 8, 
1992. Applicants were notified of the approving official's decision by 
letter. If approved, the amount of the exception becomes effective upon 
publication in the Federal Register.
    (5) Prospective applicants could review Department records upon 
request prior to the deadline for submitting applications. An applicant 
could voluntarily submit information documenting the amount of purchases 
of unprocessed timber originating from National Forest System lands 
within Washington State. The Department then determined which amount is 
higher, verified by either the Department's records or the applicant's 
records. The Department then determined the applicant's portion of the 
50 million board feet by determining the lesser of the amount verified 
by the records or 15 million board feet. Applicants could submit the 
information documenting the amount of purchases in the following manner:
    (i) Actual receipts for purchasing unprocessed timber from National 
Forest System lands within Washington State; or
    (ii) A statement by a certified public accountant of:

[[Page 138]]

    (A) A summary by fiscal year for 1988, 1989 and 1990 of the 
applicant's acquisitions of timber originating from National Forest 
System lands in the State of Washington, listing total volume for each 
of the three fiscal years; and
    (B) The average volume for the three fiscal years. The volumes to be 
reported were the harvest volumes, except in the case of open sales. 
Advertised volumes had to be reported for open sales.
    (C) The certified public accountant must have certified to the 
following:

    ``I certify that under the penalties and remedies provided in Sec. 
492 of the Act (16 U.S.C. 620d) and the penalty of perjury provided in 
the False Statements Act (18 U.S.C. 1001) that the information provided 
in support of this application is, to the best of my knowledge and 
belief, a true, accurate, current, and complete statement of 
[applicant's company's name] National Forest System timber acquisitions 
originating from within the State of Washington for fiscal years 1988, 
1989 and/or 1990.''

    (D) The certified public accountant's statement and certification 
must have been on the accountant's company letterhead, must have been 
notarized, and must have accompanied the applicant's application.
    (c) Selling and trading rights. The purchase limit right obtained 
under this rule may be sold, traded, or otherwise exchanged with any 
other person subject to the following conditions:
    (1) Such rights may not be sold, traded, or otherwise exchanged to 
persons already in possession of such rights:
    (2) Any person selling, trading, or exchanging any or all of the 
rights obtained under this rule shall advise the Regional Forester of 
the amount being traded and the name(s) of the person(s) acquiring such 
rights within 15 days of the transaction; and
    (3) No person may have or acquire more than 15 million board feet in 
one fiscal year.
    (d) Information collection. The application procedures in this 
section constitute information collection requirements as defined in 5 
CFR part 1320. These requirements have been approved by the Office of 
Management and Budget and assigned clearance number 0596-0114.
    (e) Persons with approved shares. The application period for shares 
of the indirect substitution exception for acquiring unprocessed timber 
originating from National Forest Systems lands within the State of 
Washington closed on January 8, 1992. Persons with approved shares are 
responsible for monitoring and controlling their acquisitions of 
National Forest System timber originating from within the State of 
Washington to assure approved share amounts are not exceeded in any 
Federal fiscal year. Unused portions of annual shares may not be 
``banked'' for use in future fiscal years. The acquisition of such 
National Forest System timber must be reported to the Forest Service in 
accordance with Sec. 223.193 of this subpart. The following shares are 
approved as of September 8, 1995:
    (1) Cavenham Forest Industries, Portland, OR, 1,048,000 board feet.
    (2) Weyerhauser, Tacoma, WA, 15,000,000 board feet.