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Timber Management: Opportunities to Limit Future Liability for Suspended or Canceled Timber Sale Contracts

RCED-97-14 Published: Oct 31, 1996. Publicly Released: Nov 13, 1996.
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Highlights

Pursuant to a congressional request, GAO reviewed the federal government's liability when the Forest Service and the Bureau of Land Management (BLM) suspend or cancel timber sale contracts to protect threatened or endangered species, focusing on what: (1) amounts and types of damages have been awarded to purchasers and how the Forest Service and BLM paid for the damages; (2) amounts and types of claims are pending against the Forest Service and BLM, and how the agencies expect to pay these claims; and (3) actions the Forest Service and BLM are taking to minimize the future liability arising from suspended or cancelled timber sale contracts.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture The Secretary of Agriculture should direct the Chief of the Forest Service to expeditiously release for public comment proposed regulations for cancelling timber sale contracts and a revised timber sale contract.
Closed – Implemented
On December 30, 1996, the Forest Service published a Notice of Proposed Rulemaking for its timber sale contract cancellation regulations. The regulations have been with the Department of Agriculture for approval since late 1997. The Department has not approved the release of the proposed timber sale contract revision for public comment. The Department has been reviewing the revised timber sale contract since late 1997 and has delayed its release for political reasons. After almost 2 years, it appears unlikely that the Department will finalize either the regulations or contract.

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Topics

Appropriated fundsClaims settlementContract modificationsContract terminationDamages (legal)Endangered speciesForest managementGovernment liability (legal)LitigationTimber sales