FOREST SERVICE HANDBOOK PACIFIC SOUTHWEST REGION (R5) VALLEJO, CALIFORNIA R5 FSH 6509

Transcription

1 FOREST SERVICE HANDBOOK PACIFIC SOUTHWEST REGION (R5) VALLEJO, CALIFORNIA R5 FSH FIRE DAMAGES AND COST RECOVERY PROCEDURES CHAPTER 40 - TIMBER VOLUME AND VALUE ESTIMATION Amendment No.: R Effective Date: 10/2/2015 Duration: This amendment expires 5 years from the effective date unless superseded or removed earlier. Approved: Randy Moore, Regional Forester Date Approved: 9/11/2015 Posting Instructions: Amendments are numbered consecutively by title and calendar year. Post by document; remove the entire document and replace it with this amendment. Retain this transmittal as the first page(s) of this document. Last Change: to Chapter 20 New Document: _40, 5 Pages Superseded Document(s): , Chapter 40. Digest: Completed 5-year review and converted to a 508 compliant format.

2 40 - INTRODUCTION This chapter describes the considerations and general methodology for determining the volume and value of timber killed or severely damaged as a result of a fire. The objective is to determine the unrecovered value of the timber resource killed or severely damaged as a result of the fire RESPONSIBILITY The Forest Supervisor is responsible for determining the value of killed or severely damaged timber as a result of a trespass fire. The development of the approach taken to determine the volume and valuation should be done in consultation with the Regional Office VOLUME AND VALUE DETERMINATION Volume and value determination are key aspects of the damage assessment. The determination of both should be made as if the timber had not burned. For the purposes of a damage assessment, there should be no deductions in volume to account for deterioration that occurs following a fire nor should there any reductions in valuation of the timber as a result of the fire. This includes deterioration in quality, higher costs to log, etc VOLUME Step one is the determination of the categories of timber to be considered in the damage assessment. This will be a case-by-case decision based upon the timing of the cruise relative to the fire. This determination must be made before the cruise is designed. The next step is the design of the cruise. 42.1A - STRATIFICATION Prepare a paper logging plan. Stratify the fire area by volume per acre of dead timber and severely damaged timber. It will be important to define the description of other than dead timber that will be included in the cruise. Additional cruise strata may include significant land classifications and logging system areas. Stratify timber stands in the fire using photo interpretation and local knowledge. Exclude areas from the cruise where there is no commercial-size dead timber. 42.1B - PLANNING THE CRUISE Design an efficient cruise to determine the total volume of severely damaged and killed timber. Use sale-as-a-whole sampling error standards for scaled sales (FSH , section 41.1) as a goal to design the cruise. Include all species of dead trees in one sample group. Measure enough trees on plots to develop adequate log stock tables for appraisal. As noted above, strata will be established based upon dead timber volume per acre and when necessary, the logging system as determined by the paper logging plan. Select a plot size or basal area factor that will produce an average of four to eight in trees per plot (fire damaged trees). Locate plots throughout the cruise strata on a systematic grid. Page 2

3 VALUATION The determination of value of killed or severely damaged timber is made by using the data generated by a timber cruise as described above. A detailed timber resource appraisal of the severely damaged and destroyed timber is the appropriate vehicle for this determination. Standard regional appraisal methods are used to determine the value of the timber resource as though it were unburned. Any volume removed during any salvage operations should be captured by the salvage sale cruise. No value information from any salvage sale should be considered in the development of the amount of damages. 42.2A - APPRAISAL PREMISE In this chapter, only the timber resource value (stumpage) of the trees will be determined. Other values provided by these trees will be an added increment of value beyond their value as current or potential wood products. The methods for that determination are provided in chapter B - APPRAISAL METHODS Standard Forest Service appraisal methods used in the region are appropriate for valuation of timber following a fire. 42.2C - APPRAISAL PRINCIPLES This appraisal is not to be used to determine advertised rates in any timber sale. Standard TEA or other standard Forest Service methods should be used for that purpose. Regardless of the method selected to complete the damage appraisal, there are several differences that are applicable for a fire damage timber appraisal. While not inclusive, following are some examples of the differences: 1. Delivered log prices or prices paid for biomass material should not reflect lower values as a result of the damage from the fire or lowered quality of the material or added difficulty of handling or processing as a result of the fire. 2. Logging systems used in the appraisal (and their associated costs) should reflect the normal, cost effective and appropriate systems without consideration for the actual need to use more expedient methods (e.g. the salvage sales used to actually remove some of the timber may have to utilize helicopters because a particular area is not adequately roaded and there is no time to develop a road network). This will typically require a paper logging plan. 3. Stump-to-truck cost estimates should not reflect any added costs as a result of added logging difficulty because of the fire. This includes potentially lower volumes per acre. 4. Similarly, haul costs including road maintenance, dust abatement, etc. should not reflect higher costs associated with actually removing salvage material (example: higher haul costs for salvage logging because of truck shortages should not be part of the consideration when actually estimating haul costs). 5. Any necessary new road construction identified in the logging plan that would be part of logical road development should be amortized over all the tributary volume and then prorated to the volume of the timber severely damaged or destroyed. 6. If using a transaction evidence appraisal, sales in the base should be the sales that would have been in the base at the time of the fire. Page 3

4 7. If using a transaction evidence appraisal, there should be no salvage sales in the base. 8. No negative costs for either saw timber or biomass should be reflected in the timber damage appraisal. Regardless of the method of valuation used, any combination of product, product size, species and logging system that produces a negative value should be eliminated from the calculations in determining timber value. The negative values should not be offset by other positive values. The disposition of the submerchantable material (material that will not pay its way out of the woods) including its removal if deemed appropriate, becomes a cost that is added to the Resource Damage Assessment FINAL VOLUME AND VALUES Final volume and values are the total unrecovered volume and values after salvage timber has been appropriately determined and considered. The results should be summarized in tables similar to exhibits 01, 02 and 03 and included in the final Resource Damage Assessment Report. A brief narrative summarizing the process for determining final net value should also be included Exhibit 01: Table 1. Summary of the Total Volume and Value of Timber Severely Damaged or Destroyed (example) Land Classification Acres Volume (CCF) Volume (mbf) Delivered Log Value Logging and Haul Costs Estimated Stumpage General Forest Wilderness Wild and Scenic River Other (include only congressional designations) Totals $2,000, Exhibit 02: Table 2. Volume and Value of Salvage Timber Sold (example) Salvage Sale Volume Stumpage Value Received Costs to plan, Prepare, Sell and Administer Sales Net Return ABC Salvage 1.2 mmbf $70,000 $14,000 $56,000 DEF Salvage.8 mmbf $45,000 $12,000 $33,000 GHI Salvage.4 mmbf $13,000 $26,000 ($13,000) Totals 2.4 mmbf $128,000 $52,000 $76, Exhibit 03: Table 3. Net Unrecovered Value of Killed or Severely Damaged Timber (example) Value Description Values Page 4

5 Value Description Values Estimated Value of All Killed or Severely Damaged Timber $2,000,000 Net Value of Salvage Timber Sold Following the Fire $76,000 Net Unrecovered Value of Killed or Severely Damaged Timber (include this value in $1,924,000 the summary table in the Resource Damage Assessment) 44 - RECORDKEEPING AND DOCUMENTATION Recordkeeping and documentation must be adequate to support the development of the final determination of the value of the timber killed or severely damaged as a result of the fire SPECIFIC RECORDS All the documents used in the final volume and value determinations for timber appraisals are extremely important. The Forest should generate two files with all the information (cruise records, spreadsheets, computer generated outputs, cruise inspection reports, logging plans, etc.). All information necessary to derive all the numbers in the final timber appraisal must be included in the body of the Resource Damage Assessment, the Appendix or the Record. The specific documentation and recordkeeping requirements for information developed in chapter 40 are as follows: (Note: refer to chapter 20 for a brief explanation of the Record and Appendix) 1. Volume Summary (Body of the Assessment Report) 2. Valuation Summary (Body of the Assessment Report) 3. Cruise Records (Record) 4. Salvage Sale Timber Appraisal Summary(s) (Appendix) 5. Table of Salvage Sales Sold with Volume and Value (Body of the Assessment Report) 6. Paper Logging Plan (Record) 7. Vegetation Burn Severity Map (Record) 8. Complete Timber Appraisal (Record) 9. Complete Salvage Sale Timber Appraisals (Record) 10. Supporting Cost Data for Preparing Salvage Sales (Record) Page 5