NOTICE OF SALE

Department of Natural Resources & Conservation Timber Sale

The Garnet Creek Lump Sum Timber Sale is located within Section 16, T37N-R22W, on the State's Stillwater Unit. Approximately 5,093 tons of primarily lodgepole pine sawlogs and 2,278 tons of post and pole material, are offered for sale.

Sealed bids will be opened at the Department of Natural Resources & Conservation, 2705 Spurgin Road, Missoula, Montana on June 4 , 2020 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 $2,765.00, 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 first sale invoice 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 Northwestern Land Office in Kalispell (406-751-2257), or the Stillwater Unit Office in Olney, MT (406-881-2371).

Visit our website at http://dnrc.mt.gov/divisions/trust/forest-management/timber-sale-information for upcoming sales and bid results.

TIMBER SALE PROSPECTUS STATE OF MONTANA DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION

Timber Sale Name: Garnet Creek Lump Sum

For specific sale information, contact: Les Thomas Phone 406-881-2371 Stillwater Unit Office

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

Phone 406-751-2240 Northwest Land Office

General Bidding Information

1. Bids must be submitted on Department of Natural Resources & Conservation (State) bid forms.

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

3. The State recommends that bidders contact the Forest Management Bureau, Trust Land Management Division (406-542-4300)prior to the bid opening to ensure that your bid has been received.

4. A Bid Deposit 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 State within 30 days of notification of sale award. The bond amount willbe, at a minimum, 20% of the total bid value of the sale. The performance bond may be cash, irrevocable letter of credit, suretybond or certificate of deposit. The performance bond must be maintained separately from other payments for the duration of theTimber 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 stumpagepayment will be based on the expected harvest rate and the bid value of the stumpage. The advance stumpage payment may becash, 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.

8. This sale is being sold based at a lump sum rate.

9. The State has estimated volume to be sold under this Contract. The State recognizes that a percentage of delivered wood may notmeet the log manufacturing and recovery standards of the Timber Sale Contract. The actual percentage will vary based on the logmanufacturing and recovery specifications of the purchaser and tree conditions in the sale area. The actual delivered weight mayvary, resulting in an overrun or under-run of the estimated tonnage. The State strongly recommends that bidders evaluate theseeffects before bidding.

10. The State does not conduct detailed road appraisals. All appraised costs are gross estimates or averages, provided only to showthe relative amount of work required, and not the true market value. The State strongly recommends that bidders make their ownestimates 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 isavailable 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 inthe Timber 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, theContract governs.

PROSPECTUS

Version January 2018 2

Additional Sale Information: 1. This is a lump-sum timber sale featuring lodgepole pine sawlogs and post and pole material (non-sawlog). The

bid form asks for the total dollars bid.

2. The stumpage bid price will be paid prior to harvesting timber. Based on the Purchaser’s harvest timeline, the State will consider splitting the payment, to cover harvest for a given period of time. The total price will not change. For example, if half of the Units were harvested in 2020 and the remainder in 2021, the State would collect half the payment prior to the 2020 harvest and the remainder prior to the 2021 harvest.

3. The total Forest Improvement (FI) fee of $20,321.07 is an additional cost to the Purchaser. FI will be charged concurrently with stumpage.

4. The harvest units contain mostly lodgepole pine stands less than 9 inches diameter and contain smaller diameter lodgepole pine post and pole material. The sawlog estimates are displayed in the attached Timber Sale Information Sheet.

5. The Timber Sale Information Sheet also displays, by unit, the estimated tonnage of post and pole material. Overall the average number of Lodgepole Post and Pole material per acre by size class estimates are:

DBH Stems per acre 3 42 4 98 5 107 6 75

Total 322 Fixed plots provided estimates for stems per acre based upon having a product with a 17.2-foot length to a 2.5” top diameter; quality was not rated. Range of post and pole material per acre is 60-675 between units. Tonnage estimates are based off of cubic foot conversions.

6. Bidders should consider cruising these units.

7. Access to harvest area is blocked by a tank trap-style earthen barrier and will need to be accessed by foot.

8. Two 20-foot CLT bridges (wooden) are required to be utilized on roads over existing stream crossing culverts. There are 3 culvert sites requiring the installation of these bridges; note these sites on the timber sale map. These bridges are currently located at the Stillwater Unit headquarters and this contract requires Purchaser to deliver them to the site, install and return to Stillwater Unit.

9. The Garnet Creek Timber Sale is located approximately 2.5 miles south of the Canadian border along the North Fork Road, about 56 miles north of Columbia Falls.

Timber Sale Information SheetMontana Department of Natural Resources and Conservation

Page 1

SPECIES DF WL LP ES WF CE WP PnP TOTAL or AVEMinimum Bid $55,310.00 Pounds per cubic foot 56 57 55Estimated tons of sawlogs (5.6" top DIB) 4,636 381 76 5,093 tonsEstimated tons of other material (pulp, etc) 2278 2,278 tonsGross MBF (Scribner 5.6” top DIB) 668 67 12 747 MBF% Cull and Breakage 8 8 21 8.3%Net MBF (Scribner 5.6” top DIB) 614 61 9 685 MBFAverage logs per MBF 38.3 19.3 37.7 36.3 logs/MAverage DBH 8.5 14 8.9 8.7 in.

4.7 MBF/ac598 12.6%

Contract Value - Estimated tons hauled per thousand Scribner board feet 7.44 tons/MBF

Contract Termination Date:Operating Period:

Timber Sale Cruise Data

Average MBF to cut per acre on the timber sale

685 Net MBF Scribner to a 5.6 inch top DIB

Calculated Sampling Error: Total cruised volume will fall betweenTons Per Thousand Board Feet

5,093 estimated tons to a 5.6 inch top /

GARNET CREEK

Contract Information10/15/2023June 16, 2020-September 15, 2023

and 770 Net MBF in 9 out of 10 cruises

Timber Sale Information SheetMontana Department of Natural Resources and Conservation

Page 2

$20,464$4.02/ton

$29.88/MBFEstimated Purchaser-do road maintenance cost total $804Estimated Purchaser-do road maintenance cost per ton $0.16/ton

$0.00/ton$0.00/ton0.7 miles0.0 miles1.6 miles0.7 miles1.6 miles

Estimated Purchaser-do FI per ton #DIV/0!Estimated Purchaser-do slash disposal work total $0.00 Unit # Acres Mbf Tons PnP Tons Est MBF Harvest Deadline

(Est) (Est) (Net)

1 44 2,090 1,004 285 September 15, 20232 32 1,234 0 165 September 15, 20233 9.1 367 57 49 September 15, 20234 1.7 78 13 10 September 15, 20235 21.2 218 541 29 September 15, 20236 6.1 274 157 37 September 15, 20237 9.6 252 301 34 September 15, 20238 8.9 319 39 43 September 15, 20239 7.7 261 0 35 September 15, 2023

10 6.6 0 166 0 September 15, 2023

147 Ac. 5,093 tons 2,278 tons 685 MBF

Yarding distance other system (specify)Estimated haul distance (paved)

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

Private road maintenance charges per ton

Unit harvest volume

0 ft.

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

fees and estimates% of volume logged with tractors

00%% of volume logged by skyline% of volume logged by other system (specify)

#DIV/0!

$0

Yarding distance tractor (average)Yarding distance skyline (average)

95%100%

Estimated Purchaser-do slash disposal work per ton

Estimated haul distance (unpaved)

Estimated road development cost per tonEstimated road development cost perMBF

Estimated Purchaser-do FI total $

38.0 miles

432 ft.

Estimated road development cost total

Logging Information

Forest Improvement fee total Charged conncurrently with stumpage

$20,321.07

00%

19.8 miles

Purchaser fees and estimated costs

0 ft.USFS road maintenance charges per ton

GOOD MARTIN TIMBER SALE VICINITY MAPLupfer Morrill Timber Sale Vicinity Map

Garnet Creek Timber Project

T37N R22W Sec. 16

Attachment A: 1 of 2

GARNET CREEK TIMBER PROJECT VICINITY MAP

S10 T37NR22W

S15 T37NR22W

S16 T37N R22WS17 T37N R22W

S20 T37N R22WS21 T37N R22W

S22T37NR22W

S8 T37N R22W S9 T37N R22W

Garnet Lake

7

5

1

2

346

9

10 8Legend

Contract Harvest UnitsNew Temp RoadsHighwayResidential Access RoadExisting Temp Roads

StreamsClass

12

0 0.15 0.3 0.45 0.60.075Miles

± Garnet Creek Timber Sale Unit MapSection 16, Township 37 North Range 22 WestLHT February 19, 2020

USFSUSFS

USFS Private

Private

CLT #1STA 30+50

CLT #2STA 51+75

CLT #3STA 09+20(3,420 ft from Hwy 93)

North Fork Road

Sage Spur Rd

Sage Spur B Rd

Approx. 56 miles South to Columbia Falls

Berm