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U.S. Code as of:
01/19/04
Section 620b. Limitations on substitution of unprocessed Federal timber for unprocessed timber exported from private lands
(a) Direct substitution
(1) Except as provided in paragraph (3) and subsection (c) of
this section, no person may purchase directly from any department
or agency of the United States unprocessed timber originating from
Federal lands west of the 100th meridian in the contiguous 48
States if -
(A) such unprocessed timber is to be used in substitution for
exported unprocessed timber originating from private lands; or
(B) such person has, during the preceding 24-month period,
exported unprocessed timber originating from private lands.
(2) Notwithstanding paragraph (1) -
(A) Federal timber purchased pursuant to a contract entered
into between the purchaser and the Secretary concerned before the
date on which regulations to carry out this subsection are issued
under section 620f of this title shall be governed by the
regulations of the Secretary concerned in effect before such date
that restrict the substitution of unprocessed timber originating
from Federal lands for exported timber originating from private
lands;
(B) in the 1-year period beginning on August 20, 1990, any
person who operates under a Cooperative Sustained Yield Unit
Agreement, and who has an historic export quota shall be limited
to entering into contracts under such a quota to a volume equal
to not more than 66 percent of the person's historic export quota
used during fiscal year 1989;
(C) a person referred to in subparagraph (B) shall reduce the
person's remaining substitution volume by an equal amount each
year thereafter such that no volume is substituted under such a
quota in fiscal year 1995 or thereafter; and
(D) the 24-month period referred to in paragraph (1)(B) shall
not apply to any person who -
(i) before August 20, 1990, has, under an historic export
quota approved by the Secretary concerned, purchased
unprocessed timber originating from Federal lands west of the
100th meridian in the contiguous 48 States in substitution for
exported unprocessed timber originating from private lands;
(ii) certifies to the Secretary concerned, within 3 months
after August 20, 1990, that the person will, within 6 months
after August 20, 1990, cease exporting unprocessed timber
originating from private lands; and
(iii) ceases exports in accordance with such certification.
(3) Applicability. - In the case of the purchase by a person of
unprocessed timber originating from Federal lands west of the 119th
meridian in the State of Washington, paragraph (1) shall apply only
if -
(A) the private lands referred to in paragraph (1) are owned by
the person; or
(B) the person has the exclusive right to harvest timber from
the private lands described in paragraph (1) during a period of
more than 7 years, and may exercise that right at any time of the
person's choosing.
(b) Indirect substitution
(1) In general
Except as provided in paragraph (2), no person may, beginning
21 days after August 20, 1990, purchase from any other person
unprocessed timber originating from Federal lands west of the
100th meridian in the contiguous 48 States if such person would
be prohibited from purchasing such timber directly from a
department or agency of the United States. Acquisitions of
western red cedar which are domestically processed into finished
products to be sold into domestic or international markets are
exempt from the prohibition contained in this paragraph.
(2) Exceptions
(A) The Secretary of Agriculture shall, as soon as practicable
but not later than 9 months after August 20, 1990, establish, by
rule, a limited amount of unprocessed timber originating from
Federal lands described in subparagraph (B) which may be
purchased by a person otherwise covered by the prohibition
contained in paragraph (1). Such limit shall equal -
(i) the amount of such timber acquired by such person, based
on the higher of the applicant's actual timber purchasing
receipts or the appropriate Federal agency's records, during
fiscal years 1988, 1989, and 1990, divided by 3, or
(ii) 15 million board feet,
whichever is less, except that such limit shall not exceed such
person's proportionate share, with respect to all persons covered
under this paragraph, of 50 million board feet.
(B) The Federal lands referred to in subparagraph (A) are
Federal lands administered by the United States Forest Service
Region 6 that are located north of the Columbia River from its
mouth and east to its first intersection with the 119th meridian,
and from that point north of the 46th parallel and east.
(C) Any person may sell, trade, or otherwise exchange with any
other person the rights obtained under subparagraph (A), except
that such rights may not be sold, traded, or otherwise exchanged
to persons already in possession of such rights obtained under
subparagraph (A).
(D) Federal timber purchased from Federal lands described in
subparagraph (B) pursuant to a contract entered into between the
purchaser and the Secretary of Agriculture before the date on
which regulations to carry out this subsection are issued under
section 620f of this title shall be governed by the regulations
of the Secretary of Agriculture in effect before such date that
restrict the substitution of unprocessed timber originating from
Federal lands for exported timber originating from private lands.
(c) Sourcing areas
(1) In general
The prohibitions contained in subsections (a) and (b) of this
section shall not apply with respect to the acquisition of
unprocessed timber originating from Federal lands within a
sourcing area west of the 100th meridian in the contiguous 48
States approved by the Secretary concerned under this subsection
by a person who -
(A) in the previous 24 months, has not exported unprocessed
timber originating from private lands within the sourcing area;
and
(B) during the period in which such approval is in effect,
does not export unprocessed timber originating from private
lands within the sourcing area.
The Secretary concerned may waive the 24-month requirement set
forth in subparagraph (A) for any person who, within 3 months
after August 20, 1990, certifies that, within 6 months after
August 20, 1990, such person will, for a period of not less than
3 years, cease exporting unprocessed timber originating from
private lands within the sourcing area.
(2) Requirements for application for sourcing areas for
processing facilities located outside the northwestern private
timber open market area
The Secretaries concerned shall, not later than 3 months after
August 20, 1990, prescribe procedures to be used by a person
applying for approval of a sourcing area under paragraph (1).
Such procedures shall require, at a minimum, the applicant to
provide -
(A) information regarding the location of private lands
(except private land located in the northwestern private timber
open market area) from which such person has, within the
previous year, harvested or otherwise acquired unprocessed
timber which has been exported from the United States; and
(B) information regarding the location of each timber
manufacturing facility owned or operated by such person within
the proposed sourcing area boundaries at which the applicant
proposes to process timber originating from Federal lands.
The prohibition contained in subsection (a) of this section shall
not apply to a person before the date which is 1 month after the
procedures referred to in this paragraph are prescribed. With
respect to any person who submits an application in accordance
with such procedures by the end of the time period set forth in
the preceding sentence, the prohibition contained in subsection
(a) of this section shall not apply to such person before the
date on which the Secretary concerned approves or disapproves
such application.
(3) Grant of approval for sourcing areas for processing
facilities located outside of the northwestern private timber
open market area
(A) In general
For each applicant, the Secretary concerned shall, on the
record and after an opportunity for a hearing, not later than 4
months after receipt of the application for a sourcing area,
either approve or disapprove the application. The Secretary
concerned may approve such application only if the Secretary
determines that the area that is the subject of the
application, in which the timber manufacturing facilities at
which the applicant desires to process timber originating from
Federal lands are located, is geographically and economically
separate from any geographic area from which that person
harvests for export any unprocessed timber originating from
private lands.
(B) For timber manufacturing facilities located in Idaho
Except as provided in subparagraph (D), in making a
determination referred to in subparagraph (A), the Secretary
concerned shall consider the private timber export and the
private and Federal timber sourcing patterns for the
applicant's timber manufacturing facilities, as well as the
private and Federal timber sourcing patterns for the timber
manufacturing facilities of other persons in the same local
vicinity of the applicant, and the relative similarity of such
private and Federal timber sourcing patterns.
(C) For timber manufacturing facilities located in States other
than Idaho
Except as provided in subparagraph (D), in making the
determination referred to in subparagraph (A), the Secretary
concerned shall consider the private timber export and the
Federal timber sourcing patterns for the applicant's timber
manufacturing facilities, as well as the Federal timber
sourcing patterns for the timber manufacturing facilities of
other persons in the same local vicinity of the applicant, and
the relative similarity of such Federal timber sourcing
patterns. Private timber sourcing patterns shall not be a
factor in such determinations in States other than Idaho.
(D) Area not included
In deciding whether to approve or disapprove an application,
the Secretary shall not -
(i) consider land located in the northwestern private
timber open market area; or
(ii) condition approval of the application on the inclusion
of any such land in the applicant's sourcing area, such land
being includable in the sourcing area only to the extent
requested by the applicant.
(4) Denial of application for sourcing areas for processing
facilities located outside the northwestern private timber open
market area
(A) Subject to subparagraph (B), and notwithstanding any other
provision of law, in the 9-month period after receiving
disapproval of an application submitted pursuant to this
subsection, the applicant may purchase unprocessed timber
originating from Federal lands in the area which is the subject
of the application in an amount not to exceed 75 percent of the
annual average of such person's purchases of unprocessed timber
originating from Federal lands in the same area during the 5 full
fiscal years immediately prior to submission of the application.
In the subsequent 6-month period, such person may purchase not
more than 25 percent of such annual average, after which time the
prohibitions contained in subsection (a) of this section shall
fully apply.
(B) If a person referred to in subparagraph (A) certifies to
the Secretary concerned, within 90 days after receiving
disapproval of such application, that such person shall, within
15 months after such disapproval, cease the export of unprocessed
timber originating from private lands from the geographic area
determined by the Secretary for which the application would have
been approved, such person may continue to purchase unprocessed
timber originating from Federal lands in the area which is the
subject of the application, without being subject to the
restrictions of subparagraph (A), except that such purchases
during that 15-month period may not exceed 125 percent of the
annual average of such person's purchases of unprocessed timber
originating from Federal lands in the same area during the 5 full
fiscal years immediately prior to submission of the application
which was denied.
(C) Any person to whom subparagraph (B) applies may not, during
the 15-month period after the person's application for sourcing
area boundaries is denied, export unprocessed timber originating
from private lands in the geographic area determined by the
Secretary concerned for which the application would have been
approved in amounts that exceed 125 percent of the annual average
of such person's exports of unprocessed timber from such private
lands during the 5 full fiscal years immediately prior to
submission of the application.
(5) Review of determinations for sourcing areas for processing
facilities located outside the northwestern private timber open
market area
Determinations made under paragraph (3) shall be reviewed, in
accordance with the procedures prescribed in sections 620 to 620j
of this title, not less often than every 5 years.
(6) Sourcing areas for processing facilities located in the
northwestern private timber open market area
(A) Establishment
In the northwestern private timber open market area -
(i) a sourcing area boundary shall be a circle around the
processing facility of the sourcing area applicant or holder;
(ii) the radius of the circle -
(I) shall be the furthest distance that the sourcing area
applicant or holder proposes to haul Federal timber for
processing at the processing facility; and
(II) shall be determined solely by the sourcing area
applicant or holder;
(iii) a sourcing area shall become effective on written
notice to the Regional Forester for Region 6 of the Forest
Service of the location of the boundary of the sourcing area;
(iv) the 24-month requirement in paragraph (1)(A) shall not
apply;
(v) a sourcing area holder -
(I) may adjust the radius of the sourcing area not more
frequently than once every 24 months; and
(II) shall provide written notice to the Regional
Forester for Region 6 of the adjusted boundary of its
sourcing area before using the adjusted sourcing area; and
(vi) a sourcing area holder that relinquishes a sourcing
area may not reestablish a sourcing area for that processing
facility before the date that is 24 months after the date on
which the sourcing area was relinquished.
(B) Transition
With respect to a portion of a sourcing area established
before November 14, 1997, that contains Federal timber under
contract before November 14, 1997, and is outside the boundary
of a new sourcing area established under subparagraph (A) -
(i) that portion shall continue to be a sourcing area only
until unprocessed Federal timber from the portion is no
longer in the possession of the sourcing area holder; and
(ii) unprocessed timber from private land in that portion
shall be exportable immediately after unprocessed timber from
Federal land in the portion is no longer in the possession of
the sourcing area holder.
(7) Relinquishment and termination of sourcing areas
(A) In general
A sourcing area may be relinquished at any time.
(B) Effective date
A relinquishment of a sourcing area shall be effective as of
the date on which written notice is provided by the sourcing
area holder to the Regional Forester with jurisdiction over the
sourcing area where the processing facility of the holder is
located.
(C) Exportability
(i) In general
On relinquishment or termination of a sourcing area,
unprocessed timber from private land within the former
boundary of the relinquished or terminated sourcing area is
exportable immediately after unprocessed timber from Federal
land from within that area is no longer in the possession of
the former sourcing area holder.
(ii) No restriction
The exportability of unprocessed timber from private land
located outside of a sourcing area shall not be restricted or
in any way affected by relinquishment or termination of a
sourcing area.
(d) Domestic transportation and processing of private timber
Nothing in this section restricts or authorizes any restriction
on the domestic transportation or processing of timber harvested
from private land, except that the Secretary may prohibit
processing facilities located in the State of Idaho that have
sourcing areas from processing timber harvested from private land
outside of the boundaries of those sourcing areas.
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