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B-184847 1 (1975-09-25)

handle is hein.gao/gaobadcmn0001 and id is 1 raw text is: .'P THE COMPTROLLER GENERAL GECISION OF THE UNITED STATES WASHINGTON, O .C. 20548 FILE: B-184847 DATE: September 25, 1975 MATTER OF: Hoff Lumber Company DIGEST: Where contractor agreed with Forest Service (FS) to termination of timber sale contract which lacked termi- nation for convenience clause, after it was determined that cutting timber would be detrimental to environment, on condition he be reimbursed for out-of-pocket expenses, settlement is approved since authority to terminate in these circumstances has long,been.recognized by courts and our Office. Concomitant with settlement, FS should obtain binding release with respect to any future claims. This is a request by the Deputy Assistant Secretary of the Department of Agriculture that our Office concur with its recom- mendation for the proposed settlement for the termination of timber sale contract No. 01028-8, dated May 10, 1972, awarded to Hoff Lumber Company by the Forest Service, Boise National Forest Office. The record discloses that, subsequent to the award and formal execution of the contract, but prior to any actual timber cutting thereunder by the company, representatives of the Forest Service determined that to permit the company to perform the contract in the designated sale area would have a detrimental effect on the environment. The District Forest Ranger maintains that the timber sale contract was not fully evaluated in regards to the adverse effect that it would cause. The timber to be cut is at elevations above 7,000 feet. At this elevation the soil is extremely thin and removal of the forest canopy would create very dry conditions. There are wet, boggy areas that would be altered because of the timber removal. This would, in turn, destroy the elk wallows. A flood in June 1974 destroyed a bridge which would have to be replaced if the logging were allowed. The Forest Service has determined that the benefits to be gained do not outweigh the adverse effect the logging would have on the environment. By letter of May 19, 1975, the contractor proposed a settle- ment in the amount of $1,495. The proposed settlement consists - 1 -

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