Tushar Ridge West Fuels Reduction Log Deck Sale (TA 886)

AUCTION RESULTS:

Sealed Bids (Opened at 5pm January 12, 2021):
South & Jones Timber Company, Inc.
Barco LLC

Oral Auction (January 14, 2021):
Winning bid:  $21.60/ton
Purchaser:  South & Jones Timber Company, Inc.

Minimum Acceptable Prices:

Saw Timber – $16.00/ton

The successful purchaser will also have the option to remove the decked pre-commercial timber and cull material from the sale area at a set price of $4.00/ton.

Sale Description and Volume Estimates:

Timber is currently being harvested as part of a larger fuels reduction project in the Tushar Ridge area.  This sale is for decked saw timber harvested as part of the project.  Species offered include Engelmann spruce, Douglas fir, Subalpine fir, and aspen.  All saw timber has been sorted from pre-commercial timber.  The saw log volume in all units is estimated to be 525 mbf or 2,835 tons.  This estimate is not a guarantee of volume and logs will be sold as weight scale only.

Log decks are deck tree length and must be processed into preferred log lengths by the purchaser.   All decks are accessible by roads.  The successful purchaser will be responsible for maintaining all roads associated with the sale.  The project area is divided into three units.  Harvesting is complete in the northern unit and approximately 50 loads or 250 mbf of logs are ready to be hauled.  Saw timber harvested in the northern unit has been placed into 14 decks.  Harvesting in the southern units will be completed in 2021 and contain approximately 55 loads.  The timber sale contract will be issued for a term of two years.

The successful purchaser may optionally remove any decked pre-commercial timber and cull material from the sale area at a set price of $4.00/ton.

Bidder Qualifications:

Prospective bidders must be qualified to do business with the Trust Lands Administration pursuant to Utah Administrative Code R850-3-200, which states “Any person qualified to do business in the state of Utah, and not in default under the laws of the state of Utah relative to qualification to do business within the state, or not in default on any previous obligation with the Trust Lands Administration, shall be a qualified applicant for sale, exchange, lease or permit.”

Prior to execution of a timber sale contract, the successful purchaser must be registered as a forest operator with the Utah Division of Forestry, Fire and State Lands.

Failure to meet these requirements will be grounds for bid disqualification or cancellation of the sale.

Bidding Period:

Sealed bids are due no later than 5:00 pm on Tuesday, January 12, 2021.  The envelope must be labeled “SEALED BID – TA 886”.  Official agency bid forms must be used.   Bid forms are available online at the website listed above.  Bids must contain a deposit for 10% of the total bid amount (per/ton bid price x 2,835 tons).  Bid deposits may be in the form of a personal check payable to the “Trust Lands Administration.”  Checks submitted by unsuccessful bidders will be shredded upon conclusion of the virtual oral auction.

Sealed bids may be mailed or hand-delivered to the Trust Lands Administration, 675 East 500 South, Suite 500, Salt Lake City, UT, 84102.  Mailed bids must be received at the Trust Lands Administration prior to the bid due date and time.  The Trust Lands Administration will not be responsible for late or lost mail.

Once a bid has been received by the Trust Lands Administration it cannot be retracted or changed.  Bidders are legally bound to their bid offerings, whether written or oral.

Bid Opening and Bidding Procedures:

Sealed bids will be opened on Wednesday, January 13, 2021 and all bidders and bid amounts will be disclosed on the agency’s website by 5:00 pm.  The bidders submitting the three highest qualifying sealed bids will be invited to participate in a virtual oral auction to be held at 10:00 am on Thursday, January 14, 2021.

The virtual oral auction will be held via Zoom or similar video conferencing technology.  In-person attendance at the auction will not be allowed.  The qualifying bidders will be notified by email on Wednesday, January 13, 2021 and provided with instructions to join the virtual oral auction.  Bidders are responsible to familiarize themselves with the video conferencing platform prior to the auction.  Bidders must provide their own equipment necessary to join the video conference.  While every reasonable effort will be made to resolve any technical difficulties, the Trust Lands Administration will not be responsible for technical issues beyond its control.

Closing:

All closing costs are due from the prevailing bidder upon execution of the timber sale contract, along with any balance necessary to bring the deposit submitted up to the required 10% down payment amount.

Legal Advertising Cost: $820.00
Application Fee: $500.00
TOTAL CLOSING COSTS: $1,320.00

Bond Requirements:

Upon execution of a timber sale contract the successful purchaser will be required to submit a performance bond in the amount of $5,000 and a payment bond equal to the successful bid price multiplied by 1,350 tons.  Bonds may be in the form of cash, corporate surety bonds, or irrevocable letters of credit.

Beneficiary:

The net proceeds from the sale of this property will be deposited into the permanent fund for the beneficiary of Public Schools.

Legal Description:

Township 29 South, Range 5 West, SLB&M
Section 16:  Within

Approximately 125.00 acres

Location and Access:

The sale area is located approximately 17.5 miles east of Beaver and 3 miles southwest of the Eagle Point Ski Resort near Three Creeks Reservoir.  The sale area may be accessed from the Beaver High Adventure Base turnoff located at milepost 17 on State Highway 153.  From the turnoff, the project boundary is located approximately 1.3 miles to the south along Forest Road #147.  All log decks within the sale area will be accessible by logging roads.

Payments:

All timber hauled under this contract shall be weighed on certified scales.  Payments shall be made weekly or biweekly based on weigh tickets obtained.

Not Applicable


Adam Robison
Forest Manager

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