LINCOLN SILVER DOGWOOD TIMBER SALE NOTICE OF SALE Department of Natural Resources & Conservation Timber Sale The Lincoln Silver Dogwood Timber Sale is located within Sections 35 and 36, T19N-R30W on the State's Missoula Unit. Approximately 21,692 tons, consisting primarily of Douglas-fir and lodgepole pine sawlogs, are offered for sale. Sealed bids will be opened at the Department of Natural Resources & Conservation, 2705 Spurgin Road, Missoula, Montana on July 16, 2015 at 2:00 p.m. Bids may be hand delivered or mailed and will be accepted any time prior to the bid opening. DNRC recommends that bidders contact the Trust Land Management Division (406-542-4300) prior to the bid opening to ensure that your bid has been received. Bids must be accompanied by a deposit of $10,965.00, representing 5% of the minimum bid value of the sale in cashier's check, certified check, bank money order or bank draft to be applied to the stumpage for the successful bidder. Bid bonds will be accepted and, for the successful bidder, will be closed upon execution of the Timber Sale Contract and Timber Sale Bond. The sale will be awarded to the highest responsible bidder. If the successful bidder is unable to execute the contract within 30 calendar days from the date the sale is awarded, the bid deposit will be retained by the Department as liquidated damages. The right is reserved to reject any or all bids.

Prospective bidders can obtain the sale prospectus, sale contract and bid forms from the Department of Natural Resources & Conservation, Trust Land Management Division, in Missoula (406-542-4300), the Southwestern Land Office in Missoula (406-542-4200), or the Missoula Unit Office (406-542-5803). Visit our website at http://dnrc.mt.gov/divisions/trust/forest-management for upcoming sales and bid results.

/s/ SONYA GERMANN, Chief Forest Management Bureau

Trust Land Mgmt Division Published in the Mineral Independent on June 17, 24 and July 1, 8, 15, 2015

TIMBER SALE PROSPECTUS MONTANA DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION

Timber Sale Name: Lincoln Silver Dogwood

Timber Sale Location: Sections 35 and 36, T19N-R30W

For specific sale information, contact: Bill Burdick Phone 406-542-4319 Unit Office: Missoula

For copies of the Timber Sale Contract and bid forms, contact: Phone 406-542-4300 Forest Management Bureau DNRC Missoula Office

Phone 406-542-4200 Southwestern Land Office

General Bidding Information 1. Bids must be submitted on standard Department of Natural Resources & Conservation (Dept) bid forms.

2. Timber will be sold to the highest responsible bidder; however, the Dept reserves the right to reject any or all bids.

3. The Dept recommends that bidders contact the Forest Management Bureau, Trust Land Management Division (542-4300) prior to the bid opening to ensure that your bid has been received.

4. A Bid Guarantee must accompany all bids and must be in the form of cash, cashiers check, certified check, money order, bank draft, surety bond or irrevocable letter of credit.

5. The Purchaser must submit a Performance Bond to the Dept within a maximum of 30 days of notification of sale award. The bond amount will be, at a minimum, 20% of the total bid value of the sale. The performance bond may be in the form of cash, irrevocable letter of credit, surety bond or certificate of deposit. The performance bond must be maintained separately from other payments for the duration of the sale contract. See the Timber Sale Contract for additional information.

6. The purchaser must submit an Advance Stumpage Payment prior to cutting any timber. The amount of the advance stumpage payment will be based on the expected harvest rate and the bid value of the stumpage. The advance stumpage payment may be in the form of cash, irrevocable letter of credit, payment bond or certificate of deposit.

7. At rates specified in the Contract, the purchaser will pay Forest Improvement Fees on all sawlog volume. All applicable Road Use and/or Maintenance fees will also be paid by the Purchaser in addition to stumpage payments.

8. This sale is being sold based on the gross weight of all species. Minimum price and bid price are on a per ton basis. Unless specified, the price applies to all species, green and dead. Price may vary by product. Billing will be based on gross weight. A weight ticket from a certified scale is required for each load hauled, regardless of product type.

9. The Dept has estimated the net scale merchantable sawlog volume to be available for purchase under this contract. Other products may be part of this sale. All delivered wood will be weighed and billed at per ton bid rates. The Dept recognizes that a percentage of delivered wood may not meet the log manufacturing and recovery standards of the timber sale contract. The actual percentage will vary based on the log manufacturing and recovery specifications of the purchaser and tree conditions in the sale area. The actual delivered weight may vary, resulting in an overrun or under-run of the estimated tonnage. The Dept strongly recommends that bidders evaluate these effects before bidding.

10. The Dept does not conduct detailed road appraisals. All appraised costs are gross estimates or averages, provided only to show the relative amount of work required, and not the true market value. The Dept strongly recommends that bidders make their own estimates based on contract requirements. Cost estimates provided are not guaranteed.

11. Bidders are encouraged to examine the complete Timber Sale Package and Sale Area prior to bidding. Additional information is available at the phone numbers shown above.

12. Estimates for sale volume, species percents, defect, product class, etc. provided in this prospectus and volume estimates listed in the sale contract are not guaranteed.

13. This prospectus is provided for information purposes only. If the prospectus is in error or contradicts the Timber Sale Contract, the contract governs.

PROSPECTUS Additional Sale Information:

1. No Class 1 or Class 2 SMZ harvest: NO trees will be harvested in any SMZs. 2. SKYLINE YARDING: Approximately 64% of the sale volume will require skyline cable yarding. Refer to skyline yarding

requirements in the contract for details. 3. Deletion of areas with blind leads: Within skyline yarding area, blind leads identified by the Purchaser and approved by the

Forest Officer may be deleted from the harvest unit.

4. Tail trees/tail holds located in the SMZ: If trees within the SMZ are used as tail trees/tail holds and they are pulled over they are to be left. If it is discovered that undesignated or reserve trees within the SMZ are cut and/or removed as a result of Purchaser’s operations it shall be considered cut in trespass and the Purchaser may be charged three times the highest Contract stumpage rate (minimum $10.00/ton) for the Contract product class(es) the tree contains. In addition, if the Forest Officer determines that a suitable replacement for a reserve tree as described above is not available, Purchaser agrees to pay the State $500.00 per tree, in addition to the rates charged in Section IV.G.4.a. UNDESIGNATED TREES.

5. Reserve snags: In all units, no undesignated snags shall be cut, unless they pose a safety hazard or felling is approved by the Forest Officer.

6. Pulp: Pulp material that does not meet sawlog specifications will be offered as optional at the rate of $1.00/ton.

7. Firewood: Firewood material that does not meet sawlog specifications will be offered as optional at a negotiated rate.

8. It is highly recommended that Attachment B in the timber sale contract be reviewed prior to bidding.

9. The Purchaser will be required to complete one application of herbicide as described in Attachment B.

10. Directions: From Missoula head west on I-90. Get off the freeway at DeBorgia exit #18 then take a right. At the T take a right onto the Deer Creek Road #236. Drive for about ½ mile then just past the curve take a left onto the 300.1 Road (old railroad grade) then drive a little over a mile to Brooke Lincoln’s driveway on the left. This will be labeled Lincoln 36 Rd. There are no gates to travel through, but please notify the landowner by e-mail blincoln@blackfoot.net prior to visiting the sale area.

Version 5-09 2

Timber Sale Information SheetMontana Department of Natural Resources and Conservation

Page 1

SPECIES PP DF WL LP ES WF CE TOTAL or AVEMinimum Bid $10.11/ tonPounds per cubic foot 62 62 58 56 57 60 44.0Estimated tons of sawlogs (5.6" top DIB) 1,062 8,749 282 8,410 27 3,044 118 21,692 tonsEstimated tons of other material (pulp, etc) 0 tonsGross MBF (Scribner 5.6” top DIB) 164 1,330 49 1,369 1 531 25 3,469 MBF% Cull and Breakage 6 7 6 7 0 14 3 7.8%Net MBF (Scribner 5.6” top DIB) 154 1,243.0 46.1 1,273.0 1.0 457.0 24.3 3,198 MBFAverage logs per MBF 17.3 21.2 24.5 27.8 63.4 24.9 18.4 28.2 logs/MAverage DBH 11.1 9.9 8.3 9 10 11.2 15.2 10.7 in.

56 tons/ac56 tons/ac8.4 MBF/ac

1832,537 9.0%

Contract Value - Estimated tons hauled per thousand Scribner board feet 6.78 tons/MBF

Contract ending date

Contract lengthOperating Season:

Range of cut trees per acre based on unit cruise

Lincoln Silver Dogwood

Contract Information

10/15/2017

All seasons, conditions permitting excluding spring break-up.

Calculated Sampling Error: Total cruised volume will fall between and 3,036 Net MBF in 9 out of 10 cruises

21,692 estimated tons to a 5.6 inch top /

28 mos

Timber Sale Cruise Data

3,198 Net MBF Scribner to a 5.6 inch top DIB

Tons Per Thousand Board Feet

Average tons per acre harvested in leave-tree marked unitsAverage tons per acre harvested in cut-tree-marked unitsAverage MBF to cut per acre on the timber sale

Timber Sale Information SheetMontana Department of Natural Resources and Conservation

Page 2

$84,693$3.90/ton

$26.48/MBFEstimated Purchaser-do road maintenance cost total $36,905Estimated Purchaser-do road maintenance cost per ton $1.70/ton

$0.00/ton$0.00/ton4.5 miles0.8 miles5.3 miles0.0 miles6.4 miles

Unit # Acres Est Tons Est MBF Harvest date35-1T 17 983 145 15-Sep-201735-1C 15 872 129 15-Sep-201735-2T 60 3,365 496 15-Sep-201735-2C 52 3,022 446 15-Sep-201735-3T 14 811 120 1-Dec-201535-3C 23 1,332 196 1-Dec-201535-4C 27 1,548 228 1-Dec-201536-3T 41 2,563 378 15-Sep-201736-3C 27 1,688 249 15-Sep-201736-1C 86 5,508 812 1-Dec-2016

362 Ac. 21,692 tons 3,199 MBF

Logging Information

Purchaser fees and estimated costs

750 ft.USFS road maintenance charges per ton

100%

Estimated Purchaser-do FI per tonEstimated Purchaser-do slash disposal work total

Estimated road development cost per tonEstimated road development cost perMBF

% of volume logged by ground lead (jammer)% of volume logged by skyline

Estimated road development cost total

20% of bid value

17.0 miles

Performance Bond (total $)$10,965.00

Estimated haul distance (unpaved)

Forest Improvement fee quarterly installment $12,111.37

$22.72/MBFForest Improvement fee perMBFForest Improvement fee per tonForest Improvement fee estimated total

$3.35/ton$72,668.20

64%00%

600 ft.

Estimated Purchaser-do slash disposal work per ton$12,670.00$0.58/ton

$0.58/tonEstimated Purchaser-do FI total $

0 ft.

% of volume logged by clearcut or seed tree cutRoad development and maintenance

fees and estimates

% of volume logged with tractors

Yarding distance skyline (average)Estimated haul distance (paved)

Private road maintenance charges per ton

36%

Yarding distance tractor (average)Yarding distance ground lead (average)

Bid Guarantee (total $)

Miles of road constructionMiles of road reconstructionMiles of road with site improvementsMiles of road reclamation or abandonmentMiles of road maintenance and blading

Unit harvest volume $12,670

3.0 miles

Attachment A-1 Vicinity Map

Lincoln Silver Dogwood TS Sections 35 & 36 T19N R30W

LINCOLN SILVER DOGWOOD VICINITY MAP

Attachment A-2 Harvest Map

Attachment A-3 Haul Route