District: Southwest Date: April 07, 2017

Timber Sale AppraisalSouthwest Kerby

Sale GP-341-2017-99-

Cost Summary

Conifer Hardwood Total

Gross TimberSale Value

$159,952.20 $0.00 $159,952.20

Project Work: ($5,244.00)

Advertised Value: $154,708.20

4/07/17 1

District: Southwest Date: April 07, 2017

Timber Sale AppraisalSouthwest Kerby

Sale GP-341-2017-99-

Timber Description

Location: Located in portions of Section 36, T38S, R7W, W.M., Josephine County, Oregon (near the town of Selma, Oregon).

Stand Stocking: 80%

Specie Name AvgDBH Amortization (%) Recovery (%)

Douglas - Fir 17 0 90

Sugar Pine 25 0 90

Volume by Grade 2S 3S 4S Total

Douglas - Fir 181 254 79 514

Sugar Pine 0 0 4 4

Total 181 254 83 518

4/07/17 2

Comments: Pond Values Used: 1st Quarter Calender Year 2017.

This is a two unit, 39.6 acre clear-cut of trees between 11-32 inches DBH.

Area I: Uphill Yarding Area II: Downhill Yarding Area II (North Portion) Option: Upon approval from STATE, a portion (20%) of the unit could be ground based logging.

BLM trees will be marked and sold seperately from ODF timber. The BLM tree volumes are not included in this appraisal.

Incense Cedar and Other Cedars Stumpage Price = Pond value minus Logging Cost:$325/MBF = $695/MBF - $370/MBF

Grand Fir and Other Conifers Stumpage Price = Pond Value minus Logging Cost:$211.53/MBF = $581.53/MBF - $370/MBF

Madrone and Other Hardwoods = $40/MBF

SCALING COST ALLOWANCE = $5.00/MBF

BRANDING AND PAINTING COST ALLOWANCE = $2.00/MBF

FUEL COST ALLOWANCE = $3.00/Gallon

HAULING COST ALLOWANCEHauling costs equivalent to $780 daily truck cost.

Other Costs (with Profit & Risk to be added): None.

Other Costs (No Profit & Risk added): Extra Fees: BLM road use fee of $1,770.04 that is included in the No Profit & Risk section of the appraisal. TOTAL Other Costs (No Profit & Risk added) = $1,770.04

Performance Bond: Purchaser shall obtain a Performance Bond of $2,000 dollars in favor of the BLM for road usage/maintenance. This bond is refundable after the timber sale is compelete. This is not included in the appraisal.

PROJECT WORK:

Area I: Light road brushing and reshaping with some heavy blading and reshaping in sections.

Area II: Light road brushing to open up roads.

4/07/17 3

District: Southwest Date: April 07, 2017

Timber Sale AppraisalSouthwest Kerby

Sale GP-341-2017-99-

Logging Conditions

Combination#: 1 Douglas - Fir 57.00%

Sugar Pine 100.00%

Logging System: Cable: Medium Tower >40 - <70 Process: Manual Falling/Delimbing

yarding distance: Medium (800 ft) downhill yarding: Yes

tree size: Mature Private Forest / Regen Cut (250 Bft/tree), 6-11 logs/MBF

loads / day: 8.5 bd. ft / load: 3800

cost / mbf: $255.42

machines: Log Loader (A)

Tower Yarder (Medium)

Combination#: 2 Douglas - Fir 43.00%

Logging System: Cable: Medium Tower >40 - <70 Process: Manual Falling/Delimbing

yarding distance: Medium (800 ft) downhill yarding: No

tree size: Mature Private Forest / Regen Cut (250 Bft/tree), 6-11 logs/MBF

loads / day: 8.5 bd. ft / load: 3800

cost / mbf: $204.33

machines: Log Loader (A)

Tower Yarder (Medium)

4/07/17 4

District: Southwest Date: April 07, 2017

Timber Sale AppraisalSouthwest Kerby

Sale GP-341-2017-99-

Logging Costs

Operating Seasons: 1.00 Profit Risk: 12%

Project Costs: $5,244.00 Other Costs (P/R): $0.00

Slash Disposal: $0.00 Other Costs: $1,770.04

Miles of Road

DirtRock

(Contractor)Rock

(State) Paved

0.0 0.0 2.0 0.0

Road Maintenance:

Hauling Costs

Species $ / MBF Trips/Day MBF / Load

Douglas - Fir $0.00 3.0 3.8

Sugar Pine $0.00 3.0 4.0

$0.00

4/07/17 5

District: Southwest Date: April 07, 2017

Timber Sale AppraisalSouthwest Kerby

Sale GP-341-2017-99-

Logging Costs Breakdown

LoggingRoadMaint

FireProtect

HaulingOther

P/R applProfit &

RiskSlash

DisposalScaling /

Brand & PaintOther Total

Douglas - Fir

$233.45 $1.80 $8.47 $75.26 $0.00 $38.28 $0.00 $7.00 $3.42 $367.68

Sugar Pine

$255.42 $1.80 $8.47 $71.50 $0.00 $40.46 $0.00 $7.00 $3.42 $388.07

Specie Amortization Pond Value Stumpage Amortized

Douglas - Fir $0.00 $678.00 $310.32 $0.00

Sugar Pine $0.00 $500.00 $111.93 $0.00

4/07/17 6

District: Southwest Date: April 07, 2017

Timber Sale AppraisalSouthwest Kerby

Sale GP-341-2017-99-

Summary

Specie MBF Value Total

Douglas - Fir 0 $0.00 $0.00

Sugar Pine 0 $0.00 $0.00

Specie MBF Value Total

Douglas - Fir 514 $310.32 $159,504.48

Sugar Pine 4 $111.93 $447.72

Amortized

Unamortized

Gross Timber Sale Value

Recovery: $159,952.20

Prepared By: Wyatt Taylor Phone: 541-471-3152

4/07/17 7

TIMBER SALE SUMMARY Southwest Kerby

Contract No. 341-17-99 1. Type of Sale: Recovery sale, sealed bid auction of 39.6 acres of clearcut. 2. Revenue Distribution: 100% CSL 3. Sale Acreage: This is a 39.6 acre sale comprising of two units, Area I and Area II. The sale

boundary was determined using topographic imagery and ArcGIS data. 4. Volume: Take trees in Area I and II are all unmarked trees between 11-32inches DBH,

while some trees in Area II will be marked with blue paint at DBH.

SPECIES 2 SAW 3 SAW 4 SAW NET VOL (MBF)

Douglas-fir 181 254 79 514

Sugar Pine 0 0 4 4

Total 181 254 83 518

5. Cruise Data: The total volume above is measured to 10% sampling error, meaning the

actual volume will fall between 466 MBF and 570 MBF (68% of the time). The volume of individual species will be more variable due to the smaller sample compared to the total volume sample. See the cruise report for more detail.

6. Timber Description: The timber has been selected for a regeneration cut with GTR trees

scattered throughout the unit. The take trees will be between 11-32 inches DBH with an average DBH of 17 inches for Doug-fir. The leave trees are 11 inches or less and 32 inches or greater in DBH and will be used for the scattered GTR trees in Area I and II.

7. Topography and Logging Method: Area I and II will be 100% cable yarding. There is a

ground based option for Area II if a logging plan is created and approved for the north/northwest part of the unit where the slope is below 35%. This would allow for approximately 20% of the unit to be accessed by ground based logging equipment, however, this is not a planned option which is why it is not accounted for in the actual appraisal. This logging plan would have to be approved by STATE and BLM representatives to ensure it would meet both regulatory standards held by each party, and limit the impact on the residual stand.

8. Access: The haul routes are located on BLM and County maintained roads. The appraisal includes regular road maintenance from the start to completion of the timber sale, which is specified in the prospectus.

9. Projects:

Road Improvement Area I: The majority of the road will need light brushing and reshaping with the exception of a portion in the middle that will require heavy blading and reshaping.

Road Improvement Area II: The road, BLM 38-7-25.3, into the unit will need some improvements to clear the brush, open the road, and create landing spots for the yarder.

10. Road Maintenance: The appraisal includes $1.80/MBF for road maintenance (grading, pulling ditches, etc.).

11. Other Costs: The appraisal includes $7/ MBF for scaling and branding/paint and. Costs not

accounted for in the appraisal are the responsibility of the Purchaser.

12. Slash Disposal: Purchaser will pile slash on landings with an excavator or log loader, sorting out firewood into a separate pile. ODF will burn the slash piles at the completion of the timber sale.

SALE NAME: Southwest Kerby STATE TIMBER SALE SALE NUMBER: 341-17-99

Project Summary

Project

Length (miles)

Cost per/mile Totals

Area I Road Improvements 1 $ 800.00 $ 800.00

Heavy Blading 0.4 $ 1,400.00 $ 560.00

Reshaping ($/100ft) 0.1 $ 150.00 $ 1,584.00

Subtotal $ 2,944.00

Area II Road Improvements 1 $ 800.00 $ 800.00

Subtotal $ 800.00

Mobilization $ 1,500.00

Subtotal $ 1,500.00

Total Costs $ 5, 244.00

Description:

Area I: The majority of the road will need light brushing and reshaping with the exception of a portion in the middle that will require heavy blading and reshaping.

Area II: The road, BLM 38-7-25.3, into the unit will need some improvements to clear the brush, open the road, and create landing spots for the yarder.

Extra Fees: BLM road use fees include, road maintenance fee of $1,560.20 and a surface replacement fee of $209.84, for a total of $1,770.04.

There is also a $2,000 dollar performance bond that is required by the purchaser in favor of the BLM for road usage and is not included in the project work or appraisal. This bond is refundable at the completion of the timber sale and road maintenance check by the BLM.

License agreement with the BLM and Josephine County requires the purchaser to maintain the roads. If purchaser does not maintain the road the licenser is entitled to recover expenses at a rate of $1.19/MBF/Mile.

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LOGGING PLAN - AREA I Sale No. 341-17-99Southwest Kerby

Section 36, T38S, R7W, W.M. Josephine County, Oregon Regulated Use Area SW-3

100% Common School Lands

Ü The information shown on Exhibit "A" map(s) are approximate locations. Exact locations of features represented bymap symbols will be determined on site and shall depend upon the

conditions that exsist on site. Activities shall be conducted based upon featrues determined on

site rather than features shown on maps.

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1 in = 0.06 miles1:4,000

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2800LOGGING PLAN Sale No. 341-17-99

Southwest Kerby AREA IISection 36, T38S, R7W, W.M.

Josephine County, Oregon Regulated Use Area SW-3

100% Common School Lands

Ü The information shown on Exhibit "A" map(s) are approximate locations. Exact locations of features represented bymap symbols will be determined on site and shall depend upon the

conditions that exsist on site. Activities shall be conducted based upon featrues determined on

site rather than features shown on maps.

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1 in = 0.06 miles1:4,000

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