95-14038. Administration of State Log Exports Ban  

  • [Federal Register Volume 60, Number 109 (Wednesday, June 7, 1995)]
    [Proposed Rules]
    [Pages 30030-30032]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-14038]
    
    
    
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    DEPARTMENT OF COMMERCE
    
    Bureau of Export Administration
    
    15 CFR Part 792
    
    [Docket No. 950525141-5141-01]
    
    
    Administration of State Log Exports Ban
    
    AGENCY: Bureau of Export Administration, Commerce.
    
    ACTION: Advance notice of proposed rulemaking with request for 
    comments.
    
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    SUMMARY: This notice announces the Department of Commerce's intention 
    to issue regulations implementing the ban on the export of unprocessed 
    timber originating from non-Federal public lands in 17 western states 
    pursuant to the Forest Resources Conservation and Shortage Relief Act 
    of 1990, as amended (FRCSRA). This notice delineates the actions the 
    Department is considering taking to implement the FRCSRA and requests 
    public comments on these actions.
    
    DATES: Comments must be received by July 7, 1995.
    
    ADDRESSES: Written comments (three copies) should be sent to: Steven C. 
    Goldman, Acting Director, Office of Chemical and Biological Controls 
    and Treaty Compliance, Bureau of Export Administration, U.S. Department 
    of Commerce, Washington, D.C. 20230, Telephone: (202) 482-3825, Fax 
    (202) 482-0751.
    
    FOR FURTHER INFORMATION CONTACT: Bernard Kritzer, Manager, Short Supply 
    Program, Office of Chemical and Biological Controls and Treaty 
    Compliance, Bureau of Export Administration, U.S. Department of 
    Commerce, Washington, D.C. 20230, Telephone: (202) 482-0894, Fax (202) 
    482-0751.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        Section 491 of the Forest Resources Conservation and Shortage 
    Relief Act of 1990, (Pub. L. 101-382, 16 U.S.C. 620 et seq.) (the Act), 
    requires the Secretary of Commerce to issue orders restricting the 
    export of unprocessed timber originating from non-Federal public lands 
    located west of the 100th meridian in the contiguous United States 
    (state timber). Prior to its amendment in 1993, the Act required the 
    affected States to issue and implement regulations administering the 
    export ban. On May 4, 1993, the U.S. Ninth Circuit Court of Appeals 
    held unconstitutional the provisions of the Act that required the 
    States to implement the Act's prohibitions.
        On July 1, 1993, the President signed into law Public Law 103-45, 
    the Forest Resources Conservation and Shortage Relief Amendments Act of 
    1993 (the Amendments Act). The Amendments Act reassigned the export 
    control implementation responsibilities from the States to the Federal 
    government (Federal Program), specifically to the Secretary of 
    Commerce. It also allows individual states to petition the Secretary to 
    approve their own programs to implement the ban on exports of state 
    timber (State Program). If the Secretary approves a State Program, it 
    applies in that State in lieu of the Federal Program.
    
    Scope of the Export Ban
    
        Pursuant to the FRCSRA, on August 23, 1993, the Secretary of 
    Commerce signed a General Order (Order) prohibiting the export of State 
    timber effective June 1, 1993 (58 F.R. 55038). This Order affects 
    Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, New 
    Mexico, Nevada, North Dakota, Oklahoma, Oregon, South Dakota, Texas, 
    Utah, Washington, and Wyoming (the affected States). The export ban, 
    however, excludes public lands in the State of Alaska and lands held in 
    trust by any Federal or State official or agency for a recognized 
    Indian tribe or for any member of such tribe.
        The Order includes restrictions on who may purchase state timber to 
    prevent the direct or indirect substitution of such timber for exported 
    private timber. It also provides exemptions for certain prior 
    contracts. For States with annual sales greater than 400 million board 
    feet (MBF), the Order expires December 31, 1995. For States with annual 
    sales of less than 400 MBF, the Order remains in effect permanently.
        For States with annual sales of more than 400 MBF, section 491 
    (b)(2)(B) of the FRCSRA requires the Secretary to issue an Order, not 
    later than September 30, 1995, for all periods on or after January 1, 
    1996, prohibiting the export of the lesser of 400 MBF or the annual 
    sales volume in that State of unprocessed timber originating from 
    public lands.
        The FRCSRA allows the governor of each affected State to request 
    that the Secretary of Commerce approve a State Program for the 
    administration of its own state timber export controls in lieu of the 
    Federal Program. On August 17, 1993, the Secretary authorized 
    Washington to continue administering its pre-existing export control 
    program on an interim basis. On March 10, 1994, the Secretary 
    authorized Oregon to continue administering its pre-existing export 
    control program on an interim basis. On June 1, 1995, the Secretary 
    gave final authorization to Oregon and Washington to administer their 
    pre-existing programs pursuant to Section 491(d) of the FRCSRA. 
    [[Page 30031]] 
    
    Proposed Elements of the Federal Program
    
        This notice announces the Department of Commerce's intention to 
    issue regulations implementing the ban on the export of state timber 
    originating in the 15 States identified in the Order which have not had 
    programs approved or had FRCSRA's prohibitions modified or removed 
    pursuant to Section 491(h). Before drafting regulations, however, the 
    Department seeks comments from interested parties on the following 
    proposed elements of the Federal Program:
        1. Procedures to identify and mark State timber. Pursuant to 
    section 491(c)(1) of the FRCSRA, the Department proposes to require 
    owners/purchasers of State timber:
        (a) To identify and paint, by means described at subparagraphs (b) 
    and (c) of this paragraph, State timber (sometimes hereafter ``logs 
    requiring domestic processing'');
        (b) To use highway yellow paint to identify logs requiring domestic 
    processing. Before removal from the harvest area, the owner must paint 
    each log at each end with a spot of highway yellow paint not less than 
    three inches square;
        (c) To retain the identification placed on an unprocessed log until 
    the log is domestically processed. If a log is cut into two or more 
    segments before processing, the owner is required to identify each 
    segment in the same manner as the original log. The marking requirement 
    would include all State timber;
        2. Procedures for documenting transfers of State timber. Pursuant 
    to Sections 492(a)(3) and 492(a)(4) of the FRCSRA, the Department 
    proposes to require the following reporting procedures for the receipt 
    and disposition of the unprocessed public timber:
        (a) Documenting the transfer of unprocessed State timber. Each 
    person who transfers to another person State timber must, before 
    completing the transfer:
        (i) Provide to the other person a written document identifying the 
    public lands from which the timber originated and giving notice to the 
    person of the prohibition against exporting the State timber or 
    substituting it for exported private timber;
        (ii) receive from the purchaser written acknowledgement of the 
    notice, and a written agreement that the recipient of the timber will 
    comply with all the requirements of the FRCSRA; and
        (iii) provide annually to the Secretary of Commerce copies of all 
    notices, acknowledgements, and agreements referred to in paragraphs 
    (3)(a)(i) and (3)(a)(ii).
        (b) Documenting the acquisition of unprocessed State timber. Each 
    person who directly or indirectly acquires or processes State timber 
    shall report the receipt and disposition of the timber to the Secretary 
    of Commerce as follows:
        (i) the source of the State timber acquired.
        (ii) from whom the timber was acquired and to whom the timber was 
    sold, transferred or otherwise conveyed; and
        (iii) an accounting by source, in net board feet Scribner, or cubic 
    feet, of the volume of State timber acquired, the volume domestically 
    processed by the purchaser and the volume sold for domestic processing.
        This requirement would apply to all intermediate parties until a 
    purchaser sends the logs to a domestic sawmill and they are processed;
        3. Procedures for assessing civil penalties and applying 
    administrative remedies for violations of the FRCSRA. Pursuant to 
    Section 492(c)(1)(B), if the Secretary of Commerce finds, on the record 
    and after an opportunity for a hearing, that a person has exported or 
    caused to be exported State timber with willful disregard of the 
    Secretary's Orders, the Secretary may assess a civil penalty on such 
    person. The civil penalty may be up to $500,000 for each violation or 3 
    times the gross value of unprocessed timber involved in the violation, 
    whichever amount is greater.
        Pursuant to Section 492(c)(2)(B), if the Secretary of Commerce 
    finds on the record and after an opportunity for a hearing, that a 
    person has violated any provision of the FRCSRA or any regulation 
    issued under the FRCSRA relating to the export of unprocessed timber 
    originating from public lands, whether or not the violation caused the 
    export of unprocessed timber from public lands in violation of the 
    FRCSRA, the Secretary may impose a civil penalty of up to $75,000 for 
    each violation or up to $500,000 depending on the nature of the 
    violation.
        4. Definition. Pursuant to Section 493(7) of the FRCSRA, the term 
    unprocessed timber means trees or portions of trees or other roundwood 
    not processed to standards and specifications suitable for end product 
    use. It does not include among other things chips, pulp, or pulp 
    products and pulp logs or cull logs.
    
    Petitions for Minimizing the Reporting Burdens on Those States That Do 
    Not Export Timber From Public Lands
    
        The Department is aware that a number of the states subject to the 
    export ban have very small state timber sales volumes or do not sell 
    state timber at all. The Department also is aware that some states do 
    not have any unprocessed timber exported from state public lands. The 
    Department is prepared to consider requests from such states for 
    removal or modification of state restrictions, including reporting 
    requirements of the Federal Program, pursuant to section 491(h) of the 
    FRCSRA.
    
    Particularly Useful Comments
    
        The Department invites written comments from interested parties 
    that may assist it in implementing the Federal Program. Specifically, 
    information concerning the following would be particularly useful:
        1. Under what circumstance should the Secretary include 
    substitution as part of the rules for the Federal Program?
        2. Are the Department's procedures for identifying and marking 
    export-restricted State timber adequate to track such timber and 
    prevent unauthorized export? Should the Department require persons/
    purchasers of State timber to hammer brand a log on each end with a 
    brand approved for use by the Forest Supervisor of the State Forest in 
    each affected State?
        3. Are there more cost-effective ways to identify and track export-
    restricted State timber?
        4. Is the Department's annual reporting requirement sufficient to 
    track the flow of State timber?
    
    Comment Procedures
    
        The Department will consider public comments in the development of 
    proposed regulations. The Department encourages interested persons who 
    wish to comment to do so at the earliest possible time to permit the 
    fullest consideration of their views.
        The following procedures will apply to any comments submitted 
    pursuant to this procedure:
        1. Interested parties are invited to submit written comments (3 
    copies), opinions, data, information, or advice with respect to this 
    notice to the address above by the dates specified above.
        2. The Department will consider all comments received by the close 
    of the comment period in developing proposed regulations. While 
    comments received after the end of the comment period will be 
    considered if possible, this cannot be assured. [[Page 30032]] 
        3. All public comments on this advanced notice of proposed 
    rulemaking will be a matter of public record and will be available for 
    public inspection and copying. (Communications from agencies of the 
    United States Government or foreign governments will not be made 
    available for public inspection).
    
        4. In the interest of accuracy and completeness, the Department 
    requires comments in written form. Oral comments must be followed by 
    written memoranda which will also be a matter of public record and will 
    be available for public review and copying.
    
        5. The Department will not accept public comments accompanied by a 
    request that part or all of the material be treated confidentially 
    because of its business proprietary nature or for any other reason. The 
    Department will return such comments and materials to the person 
    submitting the comments and will not consider them in the development 
    of final regulations, and;
    
        6. The comments received in response to this notice will be 
    maintained in the Bureau of Export Administration, Freedom of 
    Information Records Inspection Facility, Room 4525, Department of 
    Commerce, 14th Street and Pennsylvania Avenue, N.W., Washington, DC 
    20239. Interested parties may inspect and copy records in this 
    facility, including written public comments and memoranda summarizing 
    the substance of oral communications, in accordance with regulations 
    published in Part 4 of Title 15 of the Code of Federal Regulations. 
    Information about the inspection and copying of records may be obtained 
    from Margaret Cornejo, Bureau of Export Administration, Management 
    Analyst, at the above address or by calling (202) 482-5653.
    
    Rulemaking Requirements
    
        The rule which is likely to be proposed based on this notice was 
    determined to be significant under Executive Order 12866.
    
        Dated: June 2, 1995.
    
    Sue E. Eckert,
    
    Assistant Secretary for Export Administration.
    
    [FR Doc. 95-14038 Filed 6-6-95; 8:45 am]
    
    BILLING CODE 3510-DT-P
    
    

Document Information

Published:
06/07/1995
Department:
Export Administration Bureau
Entry Type:
Proposed Rule
Action:
Advance notice of proposed rulemaking with request for comments.
Document Number:
95-14038
Dates:
Comments must be received by July 7, 1995.
Pages:
30030-30032 (3 pages)
Docket Numbers:
Docket No. 950525141-5141-01
PDF File:
95-14038.pdf
CFR: (1)
15 CFR 792