FS-2700-5b Ski Area Term Special Use Permit

Special Use Administration

FS-2700-5b Ski Area Term Special Use Permit

OMB: 0596-0082

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Auth ID: #AUTH_ID#
Contact ID: #HOLDER_ID#
Expiration Date: #EXPIRATION_DATE#
Use Code: #USE_CODE#

FS-2700-5b (XX/202X)
OMB No. 0596-0082

U.S. DEPARTMENT OF AGRICULTURE
FOREST SERVICE
SKI AREA TERM SPECIAL USE PERMIT
AUTHORITY:
National Forest Ski Area Permit Act of 1986, 16 U.S.C. 497b

Holder Name, Address, City, State, and Zip Code.

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Holder Name (the holder) is authorized to use and occupy National Forest System (NFS) lands in the
National Forest, subject to the terms of this ski area term special use permit (the permit).
This permit covers number acres in township, range, and section (the permit area), as shown on the map
incorporated into this permit as Appendix A. This permit is issued for the purpose of [describe purpose]:
The following appendices are incorporated into this permit:
APPENDIX A:
APPENDIX B:
APPENDIX C:
APPENDIX D:
APPENDIX E:
APPENDIX F:
APPENDIX G:

Map of the Permit Area
Master Development Plan
Operating Plan
Authorized Improvements
Authorized Services
Ski Area Water Facilities and Original Water Rights
Initial and Follow-Up Environmental Site Assessments

[list any additional appendices]
I. GENERAL TERMS

A. AUTHORITY. This permit is issued pursuant to the National Forest Ski Area Permit Act of 1986,
16 U.S.C. 497b, and 36 CFR Part 251, Subpart B, as amended, and is subject to their provisions.
B. AUTHORIZED OFFICER. The authorized officer is the Forest Supervisor, a District Ranger, or the
Station, Institute, or Area Director with delegated authority pursuant to Forest Service Manual 2700.

C. TERM. This permit shall expire at midnight on #EXPIRATION_DATE#. Expiration of this permit shall
not require notice, a decision document, or any environmental analysis or other documentation.

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D. CONTINUATION OF USE AND OCCUPANCY. This permit is not renewable. Prior to expiration of
this permit, the holder may apply for a new permit for the use and occupancy authorized by this permit.
Applications for a new permit must be submitted at least 6 months prior to expiration of this permit.
Issuance of a new permit is at the sole discretion of the authorized officer. At a minimum, before issuing
a new permit, the authorized officer shall ensure that (1) the use and occupancy to be authorized by the
new permit are consistent with the direction in the applicable land management plan; (2) the type of use
and occupancy to be authorized by the new permit is the same as the type of use and occupancy
authorized by this permit; and (3) the holder is in compliance with all the terms of this permit. The
authorized officer may prescribe new terms when a new permit is issued.

E. AMENDMENT. This permit may be amended in whole or in part by the Forest Service when, at the
discretion of the authorized officer, such action is deemed necessary or desirable to incorporate new
terms that may be required by law, regulation, directive, the applicable land management plan, or projects
and activities implementing the land management plan pursuant to 36 CFR Part 218. At the sole
discretion of the authorized officer, this permit may be amended to remove authorization to use any NFS
lands not specifically covered in the master development plan for this permit or not needed for the use
and occupancy authorized by this permit. Any amendments to this permit under this clause must be in
writing and must be signed and dated by the authorized officer.

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F. COMPLIANCE WITH LAWS, REGULATIONS, AND OTHER LEGAL REQUIREMENTS. In
exercising the privileges granted by this permit, the holder shall comply with all present and future federal
laws and regulations and all present and future state, county, and municipal laws, regulations, and other
legal requirements that apply to the permit area, to the extent they do not conflict with federal law,
regulation, or policy. The Forest Service assumes no responsibility for enforcing laws, regulations, and
other legal requirements that fall under the jurisdiction of other governmental entities.
G. NON-EXCLUSIVE USE. The use and occupancy authorized by this permit are not exclusive. The
Forest Service reserves the right of access to the permit area, including a continuing right of physical
entry to the permit area and authorized facilities and improvements for inspection, monitoring, or any
other purpose consistent with any right or obligation of the United States under any law or regulation.
The Forest Service reserves the right to allow others to use the permit area in any way that is not
inconsistent with the holder’s rights and privileges under this permit, after consultation with all parties
involved. Except for any restrictions that the holder and the authorized officer agree are necessary to
protect the installation and operation of authorized improvements, the permit area shall remain open to
the public for all lawful purposes.
H. ASSIGNABILITY. This permit is not assignable or transferable.

I. TRANSFER OF TITLE TO THE IMPROVEMENTS

1. Notification of Transfer. The holder shall notify the authorized officer when a transfer of title to all or
part of the improvements is planned.

2. Transfer of Title. Any transfer of title to the improvements covered by this permit shall result in
termination of the permit upon issuance of a new permit to another party for the use and occupancy
authorized by this permit. The party who acquires title to the improvements must submit an application
for a permit. The Forest Service is not obligated to issue a new permit to the party who acquires title to
the improvements. The authorized officer shall determine that the applicant meets requirements under
applicable federal regulations.

3. Ownership of Certain Personal Property by the Holder’s Subsidiary. To comply with current federal
tax law, certain personal property authorized by this permit, i.e., the lift towers and moving parts, which
constitute approximately [amount less than 20 percent] percent of the total improvements authorized by
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this permit, are owned by the holder’s direct, wholly owned subsidiary, [name of subsidiary]. For
purposes of this permit, this personal property shall be treated as if it were directly owned by the holder.
The construction, operation, and maintenance of this personal property must satisfy all applicable permit
requirements. During the term of this permit, the ownership of this personal property shall not be
transferred to any individual or entity other than another direct, wholly owned subsidiary of the holder, or,
if permitted by changes in federal tax law, the holder. Transfer of the ownership of this personal property
from [name of subsidiary] to another direct, wholly owned subsidiary of the holder or to the holder shall
not be considered a change in ownership of the authorized improvements for purposes of 36 CFR 251.59
and clause I.J.2 of this permit. Transfer of the ownership of this personal property to any other individual
or entity shall be subject to 36 CFR 251.59 and clause I.J.2 of this permit. As long as this personal
property is owned by [name of subsidiary] or another direct, wholly owned subsidiary of the holder, the
holder shall own all the issued and outstanding common stock of [name of subsidiary] or that other
subsidiary.
J. CHANGE IN CONTROL OF THE BUSINESS ENTITY

1. Notification of Change in Control. The holder shall notify the authorized officer when a change in
control of the business entity that holds this permit is planned.

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(a) In the case of a corporation, control is an interest, beneficial or otherwise, of sufficient outstanding
voting securities or capital of the business so as to permit the exercise of managerial authority over the
actions and operations of the corporation or election of a majority of the board of directors of the
corporation.
(b) In the case of a partnership, limited partnership, joint venture, or individual entrepreneurship, control
is a beneficial ownership of or interest in the entity or its capital so as to permit the exercise of managerial
authority over the actions and operations of the entity.
(c) In other circumstances, control is any arrangement under which a third party has the ability to
exercise management authority over the actions or operations of the business.

2. Effect of Change in Control. Any change in control of the business entity as defined in clause J.1
shall result in termination of this permit upon issuance of a new permit to another party for the use and
occupancy authorized by this permit. The party acquiring control must submit an application for a special
use permit. The Forest Service is not obligated to issue a new permit to the party who acquires control.
The authorized officer shall determine whether the applicant meets the requirements established by
applicable federal regulations.
II. IMPROVEMENTS

A. LIMITATIONS ON USE. Nothing in this permit gives or implies permission to build or maintain any
structure or facility or to conduct any activity unless specifically authorized by this permit. Any use not
specifically authorized by this permit must be proposed in accordance with 36 CFR 251.54 or 251.61.
Approval of such a proposed use through issuance of a new permit or permit amendment is at the sole
discretion of the authorized officer.

B. DRAWINGS. All drawings for development, layout, construction, reconstruction, or modification of
improvements in the permit area, as well as revisions to those drawings must be prepared by a licensed
engineer, architect, landscape architect, or other qualified professional acceptable to the authorized
officer. These drawings and drawing revisions must have written approval from the authorized officer
before they are implemented. The authorized officer may require the holder to furnish as-built drawings,
maps, or surveys upon completion of the work.
C. MASTER DEVELOPMENT PLAN. The holder shall prepare and maintain, in a form acceptable to
the Forest Service, a master development plan (MDP) encompassing the entire winter sports resort
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presently envisioned for development in connection with the NFS lands authorized by this permit. The
MDP should encompass all NFS lands authorized for use by this permit. For planning purposes, a
capacity for the ski area measured in people-at-one time shall be established in the MDP. Upon
acceptance by the authorized officer, the MDP shall be incorporated into this permit as Appendix B.
Overall development at the ski area authorized by the permit shall not exceed the capacity established in
the MDP, and additional construction beyond maintenance of existing improvements at the ski area
covered by this permit shall not be authorized without amendment of the MDP and without the requisite
environmental analysis and documentation needed to support that additional construction or development
under the National Environmental Policy Act (NEPA). The holder shall propose any changes to the MDP
in a form acceptable to the Forest Service and shall submit the proposed changes to the authorized
officer. Once accepted, the revised MDP shall become a part of this permit. Acceptance of the original or
revised MDP by the authorized officer does not authorize new development or uses. The authorized
officer’s acceptance of the original or revised MDP does not constitute approval of its contents or provide
any assurance that any particular item in the original or revised MDP will be authorized by the Forest
Service or constructed by the holder. No rights or obligations of the holder or the Forest Service are
determined by the authorized officer’s acceptance of the original or revised MDP, nor do any legal
consequences, including the requirement to conduct environmental analysis under NEPA, flow from the
authorized officer’s acceptance of the original or revised MDP.

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D. SITE DEVELOPMENT SCHEDULE. The holder and the Forest Service jointly shall prepare a site
development schedule, which shall be incorporated into this permit as part of Appendix C, Operating
Plan, before any construction occurs in the permit area. The site development schedule shall list
improvements in the master development plan and any amendments to the plan in order of priority, and
shall include the starting date for their construction, and the due date for their completion. All required
plans and specifications for improvements included in the site development schedule shall be properly
certified and submitted to the authorized officer at least 45 days before the starting date for their
construction. The holder may accelerate the scheduled date for completion of any improvement, as long
as the other scheduled improvements are completed on time and to the satisfaction of the authorized
officer. Any other changes to the site development schedule must have prior written approval from the
authorized officer. Pursuant to clause IV.L, the authorized officer may require a performance bond for
improvements constructed under a site development schedule.

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2. Lease for Ski Area Operations. Pursuant to clause III.D.1, the authorized officer has approved a
lease between the holder and [name of operating entity] for operation of the authorized improvements
(the lease) under the terms of this permit. [Name of operating entity] is executing this permit in the
capacity of a lessee under the lease, rather than as a holder. [Name of operating entity] is subject to all
obligations in sections III, IV, V, and VI and clauses VII.A.1(a), VII.A.1(b), VII.C, and VII.G, and is also
bound to comply with all terms of the lease in operating the authorized improvements. In signing this
permit, [name of operating entity] is not acquiring any rights or privileges under this permit. This clause
and [name of operating entity]’s execution of this permit shall not (a) create, enlarge, diminish, or
otherwise affect any right or obligation of [name of operating entity] or the holder under the lease or any
other agreement or (b) in any way affect the rights of the holder to terminate the lease.
E. CONDITION OF OPERATIONS. The holder shall maintain the authorized improvements and permit
area to standards of repair, orderliness, neatness, sanitation, and safety acceptable to the authorized
officer and consistent with other provisions of this permit. Standards are subject to periodic change by
the authorized officer when deemed necessary to meet statutory, regulatory, or policy requirements or to
protect National Forest System resources.

F. USE OF NATIONAL FOREST SYSTEM ROADS AND NATIONAL FOREST SYSTEM TRAILS. The
holder’s use of National Forest System roads and National Forest System trails shall comply with
applicable requirements in 36 CFR Part 212, Subpart A; 36 CFR Part 261, Subpart A; and orders issued
under 36 CFR Part 261, Subpart B. Motor vehicle use shall be consistent with designations made under
36 CFR Part 212, Subpart B, unless specifically provided otherwise in the operating plan. Over-snow
vehicle use shall be consistent with designations made under 36 CFR Part 212, Subpart C, unless
specifically provided otherwise in the operating plan.

G. MONITORING BY THE FOREST SERVICE. The Forest Service shall monitor the holder's
operations and reserves the right to inspect the permit area and authorized facilities and improvements at
any time for compliance with the terms of this permit. The holder shall comply with inspection
requirements deemed appropriate by the authorized officer. The obligations of the holder under this
permit are not contingent upon any duty of the Forest Service to inspect the permit area or authorized
facilities or improvements. A failure by the Forest Service or other governmental officials to inspect is not
a defense to noncompliance with any of the terms of this permit.
H. CUTTING, DISPOSAL, AND PLANTING OF VEGETATION. This permit does not authorize the
cutting of trees, brush, shrubs, and other plants (“vegetation”). Vegetation may be cut, destroyed, or
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trimmed only after the authorized officer or the authorized officer’s designated agent has approved in
writing and marked or otherwise identified what may be cut, destroyed, or trimmed. The holder shall
notify the authorized officer when approved cutting, destruction, or trimming of vegetation has been
completed. The Forest Service shall determine in advance of felling the method of disposal of trees felled
in the permit area that meet utilization standards. Disposal may be by sale or without charge per 36 CFR
Part 223, as may be most advantageous to the United States. Debris from felling that does not meet
utilization standards shall also be disposed of according to methods determined by the Forest Service.
Planting of vegetation in the permit area must have prior written approval from the authorized officer.
I. SIGNAGE. Signage posted on NFS lands must have prior written approval of the authorized officer.
J. REFUSE DISPOSAL. The holder shall comply with all applicable federal, state, and local
requirements related to the disposal of refuse resulting from the use and occupancy authorized by this
permit.

K. SANITATION. The operation and maintenance of all sanitation, food service, and water-supply
methods, systems, and facilities shall comply with applicable standards set by state and local health
departments.

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L. DRINKING WATER SYSTEM. The holder, as the water supplier and owner or operator of the
drinking water system for the facilities authorized by this permit, is responsible for compliance with all
applicable federal, state, and local drinking water laws and regulations governing operation and
maintenance of a public drinking water system, including but not limited to developing, operating, and
maintaining the system and conducting drinking water testing and taking appropriate corrective and
follow-up actions in accordance with federal, state, and any other applicable requirements. For purposes
of this permit, public water systems are defined in accordance with the Safe Drinking Water Act, as
amended (42 U.S.C. 300f et seq.), and the National Primary Drinking Water Regulations, 40 CFR
Part 141, or state regulations, if more stringent. The holder shall retain all drinking water system records
as required by applicable laws and regulations. The holder agrees to make the records available to the
Forest Service and to any other regulatory agency authorized to review Forest Service activities.
M. HOLDER’S REPRESENTATIVE. The holder or the holder’s designated representative shall be
within the permit area at all times when the authorized facilities are open to the public. The holder shall
notify the authorized officer in writing of the designated representative’s name and contact information,
including cellular telephone number and email address.
N. NONDISCRIMINATION

1. The holder and its employees shall not discriminate against any person on the basis of race, color,
sex (in educational and training programs), national origin, age, or disability or by curtailing or refusing to
furnish accommodations, facilities, services, or use privileges offered to the public generally. In addition,
the holder and its employees shall comply with the provisions of Title VI of the Civil Rights Act of 1964 as
amended, Section 504 of the Rehabilitation Act of 1973, as amended, Title IX of the Education
Amendments of 1972, as amended, and the Age Discrimination Act of 1975, as amended.

2. The holder shall include and require compliance with the above nondiscrimination provisions in any
third-party agreement made with respect to the operations authorized under this permit.
3. The Forest Service shall furnish signs setting forth this policy of nondiscrimination. These signs shall
be conspicuously displayed at the public entrance to the permit area and at other exterior or interior
locations, as directed by the Forest Service.
4. The Forest Service shall have the right to enforce the foregoing nondiscrimination provisions by suit
for specific performance or by any other available remedy under the laws of the United States or the state
in which the violation occurs.
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O. EQUAL ACCESS TO FEDERAL PROGRAMS. In addition to the above nondiscrimination policy, the
holder agrees to ensure that its programs and activities are open to the general public on an equal basis
and without regard to any non-merit factor.
P. PROHIBITION OF TIME-SHARE ARRANGEMENTS. No commercial lodging facilities on NFS lands
authorized under this permit shall be operated under a time-share or interval-ownership arrangement. All
authorized commercial lodging facilities on NFS lands, except for employee housing authorized pursuant
to Forest Service Manual 2341.5, shall be made available to the general public on a short-term rental
basis.

U. PAID SICK LEAVE REQUIREMENT. Executive Order 13706, Establishing Paid Sick Leave for
Federal Contractors, and its implementing regulations, including the federal contractor paid sick leave
clause at 29 CFR Part 13, Appendix A, are incorporated by reference into this authorization as if fully set
forth in this authorization.

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Q. SALE OF ALCOHOLIC BEVERAGES. The sale of [liquor, beer, wine, and other types alcoholic
beverages] is allowed in the permit area, provided the holder has a valid state liquor license. However, in
the event of a violation of any liquor law or regulation, the authorized officer may require that the sale of
alcoholic beverages shall cease. The holder shall be informed in writing by the authorized officer if the
sale of alcoholic beverages must cease.

R. GAMBLING. Gambling and gambling machines and devices are prohibited on NFS lands, regardless
of whether they are lawful under state or local law.

S. ADVERTISING. The holder shall not misrepresent in any way, either orally; in online or print
circulars, brochures, advertising, and other media; or on its website, signs, or letterheads, any aspect of
the use authorized by this permit, including services provided by the holder, the status of this permit, or
the permit area. All the holder’s online or print circulars, brochures, advertising, and other media
regarding use of the permit area shall state that the permit area is located in the [name] National Forest or
Grassland.

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T. DAM SAFETY
1. The holder shall comply with all state standards and regulations pertaining to dam safety in the
[State/Commonwealth of ]. Unless stated otherwise in a memorandum of understanding (MOU) or
equivalent instrument between the [State/Commonwealth of ] and the Forest Service, the Forest Service
has a role in enforcing applicable [State/Commonwealth of ] dam safety regulations within the permit
area. Applicable MOUs regarding safety of the improvements authorized by this permit include [full name
and date of MOUs].

2. Any condition of the authorized improvements that adversely affects or that could adversely affect
operation of the authorized dam, safety of the dam or the public, or the surrounding lands and resources
shall, upon written notice from the authorized officer, be corrected or modified by the holder at the
holder’s expense. The authorized officer shall specify a completion date for corrective work in the notice.

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3. The Forest Service reserves the right to abate emergencies. When the authorized officer determines
that there is a danger of a failure for any reason of the authorized dam, the Forest Service has the right to
take any actions deemed necessary to prevent or abate a failure, including lowering the level of
impounded water by utilizing existing structures or by artificially breaching the dam. The United States
shall not be liable to the holder for any loss or damage, including damage to the dam or loss of value of
impounded water, associated with actions taken by the Forest Service under this clause. The holder shall
indemnify the United States for all costs, including legal and court costs, associated with the Forest
Service’s exercise of its rights under this clause, other than costs attributed to the negligence of the
United States or its officers, agents, or employees. Failure of the Forest Service to exercise its rights
under this clause shall not constitute a violation of any duty of the United States or a defense to
noncompliance with any terms of this permit and shall not relieve the holder of any liability for damages in
the event of a dam failure.
4. The holder and the holder’s successors, agents, and assigns shall have sole responsibility for the
safety of the authorized dam and appurtenant structures and any associated liability.

5. If a state regulatory entity claims jurisdiction over the dam authorized by this permit, the holder shall
provide correspondence and reports associated with regulation of the dam to the authorized officer upon
request.

T. DAM SAFETY

1. Definitions. The following definitions apply to this clause:
Canal. A linear water conveyance structure of varying capacity that is usually lined and that is constructed
to specified engineering standards.
Dam. Any artificial barrier, including appurtenant works, that impounds or diverts water, either temporarily
or long term, but not including a facility that is 6 feet or less in height or that impounds no more than 15
acre feet of water, unless the facility poses a significant hazard to occupied facilities, structures,
recreation areas, or travel routes downstream.
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Dam Failure. The catastrophic breakdown or breach of a dam characterized by the sudden, rapid, and
uncontrolled release of water.
Emergency Action Plan. A document that identifies potential emergency conditions at a dam and
specifies preplanned actions to be followed to minimize property damage and loss of life should a dam
failure occur, including:
(a) Actions the owner of the dam must take to moderate or alleviate problems at the dam;
(b) Procedures and information regarding issuance of early warning and notification of an emergency to
responsible emergency management authorities; and
(c) Inundation maps displaying critical areas for action by responsible emergency management
authorities in case of an emergency (see FEMA Publication 64).

Hazard Assessment Classification. A system that categorizes dams according to the severity of
consequences resulting from their failure or mis operation and that in no way reflects on their current
condition (for example, their safety, structural integrity, or flood routing capacity).

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(a) Low. A classification that includes dams whose failure, malfunction, or misoperation would result in no
loss of human life and minor damages limited to undeveloped or agricultural lands and for which
significant improvements are not planned in the foreseeable future.
(b) Significant. A classification that includes dams whose failure, malfunction, or misoperation would
result in no probable loss of human life but could cause economic loss, disruption of lifeline facilities, or
other significant impacts and dams whose failure would result in non-recoverable damage.
(c) High. A classification that includes dams whose failure, malfunction, or misoperation would likely
result in loss of human life.

2. Construction, Inspection, Certification, and Project Files. The holder shall ensure that any
construction, rehabilitation, or modification of the authorized dam shall be inspected by a qualified
engineer. At a minimum, the qualified engineer shall maintain a daily inspection diary, descriptions of
design changes, and records of construction material and foundation tests for any construction,
rehabilitation, or modification of the dam. Upon completion of the construction, rehabilitation,
modification, the holder shall provide to the authorized officer written certification from the qualified
engineer that the work was performed in accordance with the approved plans and specifications. No
water shall be impounded without prior written approval from the authorized officer. The holder shall
maintain in a project file for the term of this permit all design notes, as-built drawings, and documentation
produced by the qualified engineer and shall make the project file available to the Forest Service, other
inspection personnel, and other federal agencies authorized to review Forest Service activities.

3. Operating Plan. This clause supplements the standard operating plan clause in this permit. The
operating plan for a new dam shall be prepared during the design phase. At a minimum, the operating
plan shall specify required operating procedures; routine maintenance; record-keeping for operation and
maintenance; and those responsible for implementing the operating plan. When an operation and
maintenance inspection of the dam is conducted, the operating plan shall be reviewed and amended as
needed by those responsible for implementing the operating plan and the qualified engineer performing
the inspection.
4. Emergency Action Plan. The holder shall prepare an Emergency Action Plan (EAP). The EAP for
new dams shall be prepared during the design phase. The EAP and any revisions to the EAP must have
prior written approval from the authorized officer. At a minimum, the EAP shall include:

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(a) Actions to be taken upon discovery of an unsafe condition or impending dam failure to prevent,
mitigate, or delay dam failure.
(b) Procedures for notification of law enforcement, civil preparedness, and Forest Service personnel of
impending dam failure.
(c) Procedures for notifying persons in immediate danger of losing life or property due to dam failure.
(d) Maps delineating the area that would be inundated by water or debris in the event of dam failure.
(e) The names; home, office, and cellular telephone numbers; and email addresses of those responsible
for implementing the EAP. In preparing the EAP, the holder shall consult and cooperate with appropriate
law enforcement and civil preparedness personnel responsible for implementing the EAP. The holder
shall be responsible for all aspects of implementing the EAP, including emergency coordination. The
holder shall review the EAP annually and shall update it annually as necessary or appropriate based on
that review. The holder shall test the EAP at least every 5 years.

5. Inspection and Maintenance. The holder shall have Operation and Maintenance (O&M) inspections
of the dam and appurtenant structures conducted in accordance with the following table.
Dam Inspections
Inspection Type

Inspection
Frequency

Level of Expertise
Required

LOW

O&M
Hazard Assessment

10 years
10 years*

Qualified Engineer
Qualified Engineer

Special

Qualified Engineer

O&M

5 years

Qualified Engineer

Hazard Assessment
Special

5 years*
**

Qualified Engineer
Qualified Engineer

O&M

1 year

Qualified Engineer***

Safety

5 year

Qualified Engineer

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Hazard
Assessment
Classification

SIGNIFICANT

HIGH

Special

Perform hazard assessments more frequently if increased downstream development is
observed.
** A special inspection must be performed by a qualified engineer.
*** A qualified engineer must review and approve in writing the annual O&M inspection reports for
dams with a high hazard assessment classification. At a minimum, the
annual on-site inspection must be completed by someone familiar with the operation of the dam.

O&M inspections shall be reviewed by a qualified engineer. Special inspections shall be performed by a
qualified engineer immediately after any dam has experienced an unusual event, such as a large flood, a
first filling, an earthquake, or an act of terrorism. All O&M inspections shall be documented in a report.
Two copies of each inspection report shall be provided to the authorized officer within 30 days of the date
of inspection.
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Repairs or operational changes recommended by the inspecting or reviewing engineer shall be made by
the holder within 1 year from the date of inspection, unless a longer period is approved by the authorized
officer in writing, or a shorter period is deemed required by the authorized officer for reasons of public
safety. Upon request by the authorized officer, the holder shall provide a plan outlining the methods and
schedule for performing the repairs or operational changes and shall notify the authorized officer when
they are completed.
The authorized officer shall specify a completion date for the corrective work.

6. Forest Service Inspection. The holder shall allow inspection of the authorized dam and appurtenant
structures at any time by the authorized officer or their representative. A copy of inspection reports
prepared by the Forest Service shall be provided to the holder. Inspections performed by the Forest
Service do not relieve the holder from any liability for the dam or of the responsibility of ensuring that
inspections are conducted in accordance with paragraph 6 of this clause. Failure of the Forest Service to
inspect shall not constitute a violation of any duty of the United States or a defense to noncompliance with
any terms of this permit and shall not relieve the holder of any liability for damages in the event of a dam
failure.

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7. Safety Evaluations. Beginning in [year] and every 5 years thereafter, the holder shall have a dam
safety evaluation performed by a professional engineer certified in the state in which the authorized dam
is located to verify the safety and integrity of the dam and appurtenant structures. At a minimum, the dam
safety evaluation shall include a detailed field inspection of the dam and appurtenant structures and a
review of all pertinent documents, such as investigation, design, construction, instrumentation, operation,
maintenance, and inspection records. The dam safety evaluation shall be based on current accepted
design criteria and practices. The holder shall provide 2 copies of the dam safety evaluation report,
stamped with the professional engineer’s seal, to the authorized officer and Regional Engineer. Based on
this report, the authorized officer may require the holder to perform additional evaluations pursuant to
standards deemed appropriate by the authorized officer and may require rehabilitation or modification of
the dam, as necessary or appropriate, within a reasonable period.
8. Corrective Action. Any condition of the authorized improvements that adversely affects or that could
adversely affect operation of the authorized dam, safety of the dam or the public, or the surrounding lands
and resources shall, upon written notice from the authorized officer, be corrected or modified by the
holder at the holder’s expense. The authorized officer shall specify a completion date for corrective work
in the notice.

9. Forest Service’s Right to Abate Emergencies. When the authorized officer determines that there is a
danger of a failure for any reason of the authorized dam, the Forest Service has the right to take any
actions deemed necessary to prevent or abate a dam failure, including lowering the level of impounded
water by utilizing existing structures or by artificially breaching the dam. The United States shall not be
liable to the holder for any loss or damage, including damage to the dam or loss of value of impounded
water associated with actions taken by the Forest Service under this clause. The holder shall indemnify,
defend, and hold harmless the United States for all costs, including legal and court costs, associated with
the Forest Service’s exercise of its rights under this clause, other than costs attributed to the negligence
of the United States or its officers, agents, or employees. Failure of the Forest Service to exercise its
rights under this clause shall not constitute a violation of any duty of the United States or a defense to
noncompliance with any terms of this permit and shall not relieve the holder of any liability for damages in
the event of a dam failure.
10. Liability. The holder and the holder’s successors, agents, and assigns shall have sole responsibility
for the safety of the authorized dam and appurtenant structures and any associated liability.

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11. Strict Liability. The holder shall be strictly liable (liable without proof of negligence) to the United
States up to the limit specified in 36 CFR 251.56(d)(2), as amended, per occurrence for any injury, loss,
or damage arising in tort under this permit. Liability in tort for injury, loss, or damage to the United States
exceeding the prescribed amount of strict liability in tort shall be determined under the law of negligence.

(a) The purchase, storage, and handling of explosives by the holder under this permit are regulated by
United States Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under
27 CFR Part 555. Inspections of magazines authorized by this permit are subject to all ATF inspection
requirements at 27 CFR Part 555 and shall be conducted by ATF. Property records and inventories of
these magazines shall be reconciled by ATF in accordance with ATF requirements at 27 CFR Part 555
during ATF’s routine periodic inspections.

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(b) The purchase, storage, and handling of military weapons and ammunition used for avalanche
mitigation by the Forest Service under this permit are subject to the current Master Interagency
Agreement between the Forest Service and the Assistant Secretary of the Army (Acquisition, Logistics
and Technology), hereinafter “Master Interagency Agreement.” Under the Master Interagency
Agreement, military weapons are loaned by the Department of the Army (DOA) to the Forest Service,
ammunition is purchased by the Forest Service from DOA, and the Forest Service controls the storage
and use of the weapons and ammunition (FSM 2343.12). The Forest Service is not subject to state or
ATF oversight, jurisdiction, licensure, and permitting requirements (27 CFR 555.141(a)(5) and (a)(6)).
Inspections of magazines authorized by this permit that contain Forest Service-owned ammunition
purchased from DOA under the Master Interagency Agreement are subject to all DOA inspection
requirements under that agreement and shall be conducted by DOA and the Forest Service artillery
program manager. Property records and inventories of these magazines shall be reconciled by the
Forest Service artillery program manager in accordance with the Master Interagency Agreement.

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(c) The purchase, storage, and handling of explosives by the holder under this permit are subject to
applicable state and Forest Service requirements, as well as storage requirements in United States
Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), regulations at 27
CFR Part 555. The holder is not otherwise subject to ATF oversight, jurisdiction, licensure, and permitting
requirements. Inspections of magazines authorized by this permit are subject to all state inspection
requirements and shall be conducted by the state. Property records and inventories of these magazines
shall be reconciled by the holder in accordance with state requirements.

(d) The purchase, storage, and handling of military weapons and ammunition used for avalanche
mitigation by the holder under this permit are subject to an agreement between the Department of the
Army (DOA) and the holder. The holder is not subject to United States Department of Justice, Bureau of
Alcohol, Tobacco, Firearms and Explosives (ATF), oversight, jurisdiction, licensure, and permitting
requirements. However, the holder is subject to applicable Forest Service requirements. Inspections of
magazines authorized by this permit that contain ammunition purchased by the holder from DOA under
an agreement between the holder and DOA are subject to all DOA inspection requirements under that
agreement and shall be conducted by DOA and the holder. Property records and inventories of these
magazines shall be reconciled by the holder in accordance with the holder’s agreement with DOA.

2. Documentation of Inspections. All required inspections, including inspections required every seven
days, shall be documented in a log. The log shall indicate the inspection type, date of inspection, and the
date all deficiencies identified in any inspection report were corrected. A current copy of the log;
corresponding inspection reports, if any; and a copy of the holder’s current ATF-issued federal explosives
license or federal explosives permit, if applicable, shall be included annually in the operating plan for
review by the authorized officer.
3. Loss or Theft of Explosive Material. Any loss or theft of explosive material shall be reported to ATF or
the Department of the Army (DOA), as appropriate, local law enforcement authorities, and the Forest
Service within 24 hours of discovery.
4. Minimum Standards for Locks and Keys
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(a) ATF Requirements. Locks and keys for authorized magazines and key security shall meet ATF
requirements at 27 CFR Part 555.
(b) Replacement and Documentation. Locks and keys shall be replaced periodically at least every ten
years. In the case of deterioration or a potential breach in security, such as lost keys, any affected keys
and locks shall be replaced immediately. Periodic lock and key replacement shall be documented in a
log. The log shall include the date of the most recent replacement. A current copy of the log shall be
included annually in the operating plan for review by the authorized officer.

(c) Key Control for Magazines Containing Explosives Not Purchased From DOA. Key control for
magazines authorized by this permit containing explosives not purchased from DOA shall at a minimum
provide for appointment of a custodian, maintenance of a list of personnel authorized to use and issue
keys, a locked container for key storage, and documentation of locks and keys on a key control register
and inventory.

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(d) Key Control for Magazines Containing Ammunition Purchased From DOA. Key control for magazines
authorized by this permit containing ammunition purchased from DOA shall be in accordance with the
Master Interagency Agreement and shall be documented on DOA form DA-5513-R, Key Control Register
and Inventory.
IV. RIGHTS AND LIABILITIES

A. LEGAL EFFECT OF THE PERMIT. This permit, which is revocable and terminable, is not a contract
or a lease, but rather a federal license. The benefits and requirements conferred by this permit are
reviewable solely under the procedures set forth in 36 CFR Part 214, and 5 U.S.C. 704. This permit does
not constitute a contract for purposes of the Contract Disputes Act, 41 U.S.C. 601. The permit is not real
property, does not convey any interest in real property, and may not be used as collateral for a loan.

B. VALID EXISTING RIGHTS. This permit is subject to all valid existing rights. Valid existing rights
include those derived under mining and mineral leasing laws of the United States. The United States is
not liable to the holder for the exercise of any such right.
C. ABSENCE OF THIRD-PARTY BENEFICIARY RIGHTS. The parties to this permit do not intend to
confer any rights on any third party as a beneficiary under this permit.
D. NO WARRANTY OF ACCESS, SITE SUITABILITY, OR SERVICES. This permit authorizes the use
and occupancy of National Forest System lands by the holder for the purposes identified in this permit.
The Forest Service does not make any express or implied warranty of access to the permit area, of the
suitability of the site for the permitted use, or for the furnishing of road maintenance, water, fire protection,
or any other such service by a government agency, utility, association, or individual.
E. RISK OF LOSS. The holder assumes all risk of loss to the authorized improvements and all risk of
loss of use and occupancy of the permit area, in whole or in part, due to theft or vandalism, natural
events, or environmental hazards. Loss to the authorized improvements and of use and occupancy of the
permit area may result from but is not limited to environmental contamination and forces of nature such
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as avalanches, rising waters, winds, falling limbs, or trees. If any authorized improvements in the permit
area are destroyed or substantially damaged, the authorized officer shall conduct an analysis to
determine whether the improvements can be safely occupied in the future and whether rebuilding should
be allowed. If rebuilding is not allowed, this permit shall terminate as to those improvements. If the
authorized officer determines that any portions of the permit area cannot be safely occupied due to a
public health or safety or environmental hazard, this permit shall terminate as to those portions of the
permit area. Termination under this clause shall not give rise to any claim for damages, including lost
profits and the value of the improvements, by the holder against the Forest Service.

F. WATER FACILITIES AND WATER RIGHTS

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“Sufficient quantity of water to operate the ski area” means that under typical conditions, taking into
account fluctuations in utilization of the authorized improvements, fluctuations in weather and climate,
changes in technology, and other factors deemed appropriate by the holder’s qualified hydrologist or
licensed engineer, the holder has sufficient water rights or access to a sufficient quantity of water to
operate the permitted facilities, and to provide for the associated activities authorized under the ski area
permit in accordance with the approved operating plan.
1. Water Facilities

(a) The term “water facility” means a facility located on NFS lands that diverts withdraws, stores, or
distributes water, such as a diversion, ditch, pipeline, reservoir, well, tank, impoundment structure, or
similar facility or feature.
(b) The term “ski area water facility” means any water facility on NFS lands that is authorized by this
permit and used primarily for operation of the ski area authorized by this permit (hereinafter “ski area”).

(c) The authorized officer may place conditions, as necessary to protect public property, public safety,
cultural resources, and natural resources on NFS lands, on the installation, operation, maintenance, and
removal of any water facility, but only in accordance with applicable law. Clause IV.F does not expand or
contract the agency’s authority to place conditions on the installation, operation, maintenance, and
removal of water facilities at issuance or reissuance of the permit, throughout the permit term, or
otherwise. The holder must comply with present and future laws, regulations, and other legal
requirements in accordance with section I of this permit.
(d) Only ski area water facilities may be authorized by this permit.
(e) If due to a change (e.g., due to a change in the ownership of the water facility or the associated water
rights or a change in the beneficial use, location, or season of use of the water) a ski area water facility
will primarily be used for purposes other than operation of the ski area, the authorization for that ski area
water facility under this permit shall terminate. Unless the holder has a valid existing right for the water
facility to be situated on NFS lands, the holder must obtain a separate special use authorization to
operate that water facility or to develop any new water facility on NFS lands that is used primarily for
purposes other than operation of the ski area. When such facilities continue to support approved ski area
operations at any time of year, the separate special use authorization for these water facilities shall not
contain any possessory interest policy based on FSM 2541.32, paragraph 2 (or similar clauses), any
waiver provision, or any power of attorney provision. Unless the holder has a valid existing right for the
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water facility to be situated on NFS lands, if the holder does not obtain a separate special use
authorization for these water facilities, the holder shall remove them from NFS lands.

(f) This permit does not convey, dispose of, extinguish, or otherwise effect a transfer of any title, rights, or
interest of the United States or the holder as a riparian or littoral landowner. The United States and the
holder retain all rights, title, and interests they have as riparian or littoral landowners.
2. Water Rights. The term “water right” as used below means a right to use water that is recognized
under state law under the prior appropriation doctrine. This permit does not confer any water rights.

(a) Terms

3. Acquisition and Maintenance of Water Rights

(1) The term “ski area water right” means any water right for use of water from a point of diversion on
NFS lands, either inside or outside the permit boundary, that is primarily for operation of the ski area.

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(2) The term “original water right” means any existing or new ski area water right with a point of diversion
that was or is, at all times during its use, located within the permit boundary for this ski area and originally
established under state law through an application for a decree to state water court, permitting, beneficial
use, or otherwise recognized method of establishing a new water right, in each case by the holder or a
prior holder of the ski area permit. The term “original water right” shall not include any “acquired water
right” and shall not be deemed to become an “acquired water right” by virtue of the sale of the original
water right to a subsequent holder of the ski area permit.
(3) The term “acquired water right” means any ski area water right that is purchased, bartered,
exchanged, leased, or contracted by the holder or by any prior holder, except as expressly provided in the
last sentence of paragraph F.3.a(2).
(b) An inventory of all ski area water facilities and original water rights is included in Appendix F of this
permit and shall be updated by the holder upon reissuance of this permit, upon installation or removal of a
ski area water facility, when a listed ski area water facility is no longer authorized by this permit, or when
an original water right is no longer used for operation of the ski area.

(c) Original water rights must be established in accordance with applicable state law. The holder, not the
United States, shall bear the cost of establishing, acquiring, maintaining, and perfecting original water
rights, including any original water rights owned solely or jointly by the United States.
(d) Original water rights owned solely by the United States and the United States’ interest in jointly
owned original water rights shall remain in federal ownership. Notwithstanding the holder’s obligation to
maintain original water rights owned by the United States, the United States reserves the right to take any
action necessary to maintain and protect those water rights, including submitting any applications or other
filings that may be necessary to protect the water rights.
4. Ensuring Sufficiency of Water Rights and Water for Permitted Ski Area Operations
(a) Where the United States solely or jointly owns water rights used by the holder, the Forest Service
shall not divide or transfer ownership of or seek any change in those water rights that would adversely
affect their availability for operation of the ski area during the term of this permit, unless required to
comply with a statute or an involuntary court order that is binding on the Forest Service.

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(b) Where the holder solely or jointly owns original water rights, the holder shall not divide or transfer
ownership of or seek any change in those water rights that would adversely affect their availability for
operation of the ski area during the term of this permit, unless approved in writing in advance by the
authorized officer. In deciding whether to grant this approval, the authorized officer shall consider any
documentation prepared by the holder’s qualified hydrologist or licensed engineer demonstrating that
such action will not result in a lack of a sufficient quantity of water to operate the permitted portion of the
ski area.
(c) At any time and solely within its discretion, the holder may seek to change, abandon, lease, divide, or
transfer ownership of or take other actions with respect to acquired water rights. Following such actions,
paragraph F.1.e shall apply to the associated ski area water facilities.
5. Transfer of Certain Water Rights With Sale of the Ski Area Improvements

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(a) Upon termination or revocation of this permit, the holder shall offer to sell the holder’s interest in any
solely or jointly owned original water rights at market value to the succeeding permit holder. If the
succeeding permit holder declines to purchase original water rights owned solely by the holder, the holder
may transfer them to a third party. If the succeeding permit holder declines to purchase the holder’s
interest in original water rights jointly held with the United States, the holder shall offer to sell that interest
at market value to the United States. If the United States declines to purchase that interest, the holder
may abandon, divide, lease, or transfer its interest at its sole discretion. This clause imposes no
restrictions on acquired water rights. There are no restrictions on the transfer or abandonment of
acquired water rights. In all instances, the holder shall retain the full amount of any consideration paid for
water rights. Following such actions, paragraph F.1.e shall apply to the associated ski area water
facilities.
(b) If the Forest Service does not reauthorize the ski area, the holder may submit a proposal to the
Forest Service for a permit authorizing a different use for the ski area water facilities. If a different use is
not authorized for those water facilities, the holder shall remove them from NFS lands. The holder may,
in its sole discretion, abandon, divide, lease, or transfer any water rights solely owned by the holder. The
holder shall offer to sell to the United States the holder’s interest in original water rights jointly owned with
the United States at market value. If the United States declines to purchase that interest, the holder may
abandon, divide, lease, or transfer its interest at its sole discretion.

F. WATER FACILITIES AND WATER RIGHTS

“Used primarily for operation of the ski area” in relation to a water facility or water right means that the
water facility or water right provides significantly more water for operation of the permitted portion of the
ski area than for any other use.
“Sufficient quantity of water to operate the ski area” means that under typical conditions, taking into
account fluctuations in utilization of the authorized improvements, fluctuations in weather and climate,
changes in technology, and other factors deemed appropriate by the holder’s qualified hydrologist or
licensed engineer, the holder has sufficient water rights or access to a sufficient quantity of water to
operate the permitted facilities, and to provide for the associated activities authorized under the ski area
permit in accordance with the approved operating plan.
1. Water Facilities

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(a) The term “water facility” means a facility located on NFS lands that diverts, withdraws, stores, or
distributes water, such as a diversion, ditch, pipeline, reservoir, well, tank, impoundment structure, or
similar facility or feature.
(b) The term “ski area water facility” means any water facility on NFS lands that is authorized by this
permit and used primarily for operation of the ski area authorized by this permit (hereinafter “ski area”).
(c) The authorized officer may place any conditions, as necessary to protect public property, public
safety, cultural resources, and natural resources on NFS lands, on the installation, operation,
maintenance, and removal of any water facility, but only in accordance with applicable law. Clause IV.F
does not expand or contract the agency’s authority to place conditions on the installation, operation,
maintenance, and removal of water facilities at issuance or reissuance of the permit, throughout the
permit term, or otherwise. The holder must comply with present and future laws, regulations and other
legal requirements in accordance with section I of this permit.
(d) Only ski area water facilities may be authorized by this permit.

(e) An inventory of all ski area water facilities is included in Appendix F of this permit and shall be
updated by the holder upon reissuance of this permit, upon installation or removal of a ski area water
facility, or when a listed ski area water facility is no longer authorized by this permit.

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(f) If due to a change (e.g., due to change in ownership of the water facility or the associated water rights
or a change in the use, location, or season of use of the water) a ski area water facility will primarily be
used for purposes other than operation of the ski area, the authorization for that water facility under this
permit shall terminate. Unless the holder has a valid existing right for the water facility to be situated on
NFS lands, the holder must obtain a separate special use authorization to operate that water facility or to
develop any new water facility on NFS lands that is used primarily for purposes other than operation of
the ski area. When such facilities continue to support approved ski area operations at any time of year,
the separate special use authorization for these water facilities shall not contain any possessory interest
policy based on FSM 2541.32, paragraph 2 (or similar clauses), any waiver provision, or any power of
attorney provision. Unless the holder has a valid existing right for the water facility to be situated on NFS
lands, if the holder does not obtain a separate special use authorization for these water facilities, the
holder shall remove them from NFS lands.
(g) Upon termination or revocation of this permit, if the Forest Service does not reauthorize the ski area,
the holder may submit a proposal to the Forest Service for a permit authorizing a different use for the ski
area water facilities. If a different use is not authorized for those water facilities, the holder shall remove
them from NFS lands.

2. Water Rights. This permit does not convey, dispose of, extinguish, or otherwise effect a transfer of
any title, rights, or interest of the United States or the holder as a riparian or littoral landowner. The
United States and the holder retain all rights, title, and interest they have as riparian or littoral landowners.
G. DAMAGE TO UNITED STATES PROPERTY. The holder has an affirmative duty to protect from
damage the land, property, and other interests of the United States that are associated with the use and
occupancy authorized by this permit. Damage includes but is not limited to destruction of or damage to
NFS lands, fire suppression costs, and destruction of or damage to federally owned improvements.

1. The holder shall be liable for all injury, loss, or damage, including fire suppression costs, prevention
and control of the spread of invasive species, and the costs of rehabilitation or restoration of natural
resources, resulting from the holder’s use and occupancy of the permit area. Compensation shall include
but not be limited to the value of resources damaged or destroyed, the costs of restoration, cleanup, or
other mitigation, fire suppression or other types of abatement costs, and all administrative, legal (including
attorney's fees), and other costs. Such costs may be deducted from a performance bond required under
clause IV.L.
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2. The holder shall be liable for damage to all roads and trails of the United States caused by use of the
holder or the holder's heirs, assignees, agents, employees, contractors, or lessees to the same extent as
provided under clause IV.G.1, except that liability shall not include reasonable and ordinary wear and
tear.

I. ENVIRONMENTAL PROTECTION

H. HEALTH AND SAFETY. The holder shall take all necessary precautions to protect the health and
safety of all persons affected by the use and occupancy authorized by this permit. The holder shall
promptly abate as completely as possible and in compliance with all applicable laws and regulations any
physical or mechanical procedure, activity, event or condition existing or occuring in connection with the
authorized use and occupancy during the term of this permit that causes or threatens to cause a hazard
to the health or safety of the public or the holder’s employees, agents, or contractors. This clause does
not alter in any way the statutory protections afforded to ski areas with respect to inherent risk or common
law protections afforded to ski areas through the assumption of risk doctrine. The holder shall as soon as
practicable notify the authorized officer of all serious accidents that occur in connection with these
procedures, activities, events, or conditions. The Forest Service has no duty under the terms of this
permit to inspect the permit area or operationsof the holder for hazardous conditions or compliance with
health and safety standards.

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1. Compliance with Environmental Laws. The holder shall in connection with the use and occupancy
authorized by this permit comply with all applicable federal, state, and local environmental laws and
regulations, including but not limited to those established pursuant to the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA), as amended, 42 U.S.C. 9601 et seq., the
Resource Conservation and Recovery Act, as amended, 42 U.S.C. 6901 et seq., the Federal Water
Pollution Control Act, as amended, 33 U.S.C. 1251 et seq., the Oil Pollution Act, as amended, 33 U.S.C.
2701 et seq., the Clean Air Act, as amended, 42 U.S.C. 7401 et seq., the Toxic Substances Control Act,
as amended, 15 U.S.C. 2601 et seq., the Federal Insecticide, Fungicide, and Rodenticide Act, as
amended, 7 U.S.C. 136 et seq., and the Safe Drinking Water Act, as amended, 42 U.S.C. 300f et seq.
2. Definition of Hazardous Material. For purposes of clauses IV.I and V, "hazardous material" shall
mean (a) any hazardous substance under section 101(14) of CERCLA, 42 U.S.C. 9601(14); (b) any
pollutant or contaminant under section 101(33) of CERCLA, 42 U.S.C. 9601(33); (c) any petroleum
product or its derivative, including fuel oil, and waste oils; and (d) any hazardous substance, extremely
hazardous substance, toxic substance, hazardous waste, ignitable, reactive or corrosive materials,
pollutant, contaminant, element, compound, mixture, solution or substance that may pose a present or
potential hazard to human health or the environment under any applicable environmental laws.

3. Environmental Site Assessments (SAs). Except as provided in clause IV.I.3(c), the holder is required
to submit for written approval by the authorized officer an initial SA prior to use and occupancy under this
permit and a follow-up SA prior to termination or upon revocation of this permit. The initial and follow-up
SAs shall be incorporated into this permit as Appendix H.

(a) Purposes. The purpose of initial and follow-up SAs is to identify Recognized Environmental
Conditions in the permit area, that is, the presence or likely presence of any hazardous substances or
petroleum products in, on, or at the permit area: (1) due to any release to the environment; (2) under
conditions indicative of a release to the environment; or (3) under conditions that pose a material threat of
a future release to the environment. A comparison of the initial and follow-up SAs shall assist the
authorized officer in determining whether any environmental cleanup or restoration is required as a result
of the use and occupancy. Any cleanup or restoration shall be completed promptly by the holder in
accordance with all applicable federal, state, and local laws and regulations, to the satisfaction of the
authorized officer and at no expense to the United States.

(b) Standard. All SAs must be conducted by the holder’s environmental professional with the requisite
certification and experience and must meet the objectives and performance factors of 40 CFR Part 312,
Innocent Landowners, Standards for Conducting All Appropriate Inquiries. The holder may use the most
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recent version of The American Society for Testing and Materials (ASTM) guideline referenced in 40 CFR
312.11(a), entitled Standard Practice for Environmental Site Assessments: Phase I Environmental Site
Assessment Process, or select an alternate practice that constitutes all appropriate inquiries consistent
with good commercial and customary practices.
(c) Exceptions. If a new permit will be issued to the same holder upon expiration of this permit, the
follow-up SA shall satisfy the requirement for an initial SA for the new permit. Initial and follow-up SAs
are not required when this permit is revoked at the request of the holder and a new permit is issued to the
holder for the balance of this permit’s term or when this permit is reissued for the balance of its term to the
holder due to a modification pursuant to 36 CFR 251.61(a), provided that an initial SA shall be completed
in either of these scenarios if one has not been done by the holder. When a new permit is issued due to
a change in control of the business entity that holds this permit, the holder may rely on the initial SA
performed by the future holder, provided that it is accepted by the authorized officer prior to termination of
this permit.

(d) Cleanup or Other Remedial Action Based on the Initial SA. If the initial SA shows that a hazardous
substance release is present in the permit area, the holder shall be responsible for any cleanup or other
remedial action that the Forest Service determines to be required in the permit area based on the initial
SA. The level of cleanup or other remedial action shall be commensurate with the holder’s intended use
and occupancy of the permit area and shall be completed before the holder’s use and occupancy
commence.

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4. Oil Discharges and Release of Hazardous Materials. The holder shall immediately notify all
appropriate response authorities, including the National Response Center and the authorized officer or
the authorized officer’s designated representative, of any oil discharge or of the release of a hazardous
material in the permit area in an amount greater than or equal to its reportable quantity, in accordance
with 33 CFR Part 153 and 40 CFR Part 302. For the purposes of this requirement, “oil” is defined by
section 311(a)(1) of the Clean Water Act, 33 U.S.C. 1321(a)(1). The holder shall immediately notify the
authorized officer or the authorized officer’s designated representative of any release or threatened
release of any hazardous material in or near the permit area which may be harmful to public health or
welfare or which may adversely affect natural resources on federal lands.

5. Remediation of Release of Hazardous Materials. The holder shall remediate any release, threat of
release, or discharge of hazardous materials that occurs in connection with the holder’s activities in the
permit area, including activities conducted by the holder's agents, employees, contractors, or lessees and
regardless of whether those activities are authorized under this permit. The holder shall perform
remediation in accordance with applicable law immediately upon discovery of the release, threat of
release, or discharge of hazardous materials. The holder shall perform the remediation to the satisfaction
of the authorized officer and at no expense to the United States. Upon revocation or termination of this
permit, the holder shall deliver the site to the Forest Service in compliance with all applicable laws and
regulations and free and clear of contamination.
J. INDEMNIFICATION OF THE UNITED STATES. The holder shall indemnify, defend, and hold
harmless the United States for any costs, damages, claims, liabilities, and judgments arising from past,
present, and future acts or omissions of the holder in connection with the use and occupancy authorized
by this permit. This indemnification provision includes but is not limited to acts and omissions of the
holder or the holder's heirs, assignees, agents, employees, contractors, or lessees in connection with the
use and occupancy authorized by this permit which result in (1) violations of any laws and regulations
which are now or which may in the future become applicable; (2) judgments, claims, demands, penalties,
or fees assessed against the United States; (3) costs, expenses, and damages incurred by the United
States; or (4) the release or threatened release of any solid waste, hazardous waste, hazardous
materials, pollutant, contaminant, oil in any form, or petroleum product into the environment. The
authorized officer may prescribe terms that allow the holder to replace, repair, restore, or otherwise
undertake necessary curative activities to mitigate damages in combination with or as an alternative to
monetary indemnification.
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K. INSURANCE. The holder shall furnish proof of insurance, such as a certificate of insurance, to the
authorized officer prior to issuance of this permit and each year thereafter that this permit is in effect. The
Forest Service reserves the right to review the insurance and require any changes needed to ensure
adequate coverage of the United States inconnection with the authorized use and occupancy. The holder
shall send an authenticated copy of any insurance policy obtained pursuant to this clause to the
authorized officer immediately upon issuance of the policy. Any insurance policies obtained by the holder
pursuant to this clause shall include the United States as an additional insured in an endorsement to the
policy, and the additional insured provision shall provide for insurance coverage for the United States as
required under this clause. The holder shall give 30 days prior written notice to the authorized officer of
cancellation of the insurance policy by the holder or any modification to the insurance policy by the
holder. Additionally, the holder shall immediately notify the authorized officer of cancellation of the policy
by the insurance company. The certificate of insurance, the authenticated copy of the insurance policy,
and written notice of cancellation or modification of insurance policies should be sent to [mailing address
of administering office]. Minimum amounts of coverage and other insurance requirements are subject to
change at the sole discretion of the authorized officer on the anniversary date of this permit.

1. The holder shall have in force liability insurance covering losses associated with the use and
occupancy authorized by this permit arising from personal injury or death and third-party property damage
in the minimum amount of $#AMOUNT# as a combined single limit per occurrence.

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2. Depending on the holder's operations, the Forest Service may require the holder to demonstrate the
availability of funds to address any release or threatened release of hazardous materials that may occur
in connection with the holder's use and occupancy. Any requirements imposed would be established
case by case by the authorized officer based on the degree of environmental risk from the holder's
operations. The storage and use of normal maintenance supplies in nominal amounts generally would
not trigger financial assurance requirements.
L. BONDING. The authorized officer may require the holder to furnish a surety bond or other security
for any of the obligations imposed by the terms of this permit or any applicable law, regulation, or order.

1. As a further guarantee of compliance with the terms of this permit, the holder shall deliver and
maintain a surety bond or other acceptable security, such as cash deposited and maintained in a federal
depository or negotiable securities of the United States, in the amount of #AMOUNT# for [specify
obligations covered, e.g., to secure the holder’s obligation to restore the permit area after construction or
upon revocation or termination of the permit without issuance of a new permit]. The authorized officer
may periodically evaluate the adequacy of the bond or other security and increase or decrease the
amount as appropriate. If the bond or other security becomes unsatisfactory to the authorized officer, the
holder shall within 30 days of demand furnish a new bond or other security issued by a surety that is
solvent and satisfactory to the authorized officer. If the holder fails to meet any of the requirements
secured under this clause, money deposited pursuant to this clause shall be retained by the United States
to the extent necessary to satisfy the obligations secured under this clause, without prejudice to any other
rights and remedies of the United States.
2. The bond shall be released or other security returned 30 days after (a) the authorized officer certifies
that the obligations covered by the bond or other security are met and (b) the holder establishes to the
satisfaction of the authorized officer that all claims for labor and material for the secured obligations have
been paid or released.
3. The holder may be required to obtain additional bonding or security prior to undertaking additional
construction or alteration not covered by the bond or other security or when the authorized improvements
are to be removed and the permit area restored.

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V. RESOURCE PROTECTION
A. WATER POLLUTION. No waste or by-product shall be discharged into water in connection with the
use and occupancy authorized by this permit except in full compliance with all applicable federal, state,
and local environmental and other laws. Storage facilities for materials capable of causing water
pollution, if accidentally discharged, shall be located so as to prevent any spillage into waters or channels
leading into water except in full compliance with all applicable federal, state, and local environmental and
other laws.
B. SCENIC VALUES. The holder shall protect the scenic values of the permit area and the adjacent
land to the greatest extent possible during construction, operation, and maintenance of the authorized
improvements.

D. PESTICIDE USE

C. VANDALISM. The holder shall take reasonable measures to prevent and discourage vandalism or
disorderly conduct and when necessary shall contact the appropriate law enforcement officer to address
these problems.

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1. Authorized Officer Concurrence. Pesticides may not be used outside of buildings to control pests,
including undesirable woody and herbaceous vegetation (including aquatic plants), insects, birds,
rodents, or fish without the prior written concurrence of the authorized officer. Only those products
registered or otherwise authorized by the U.S. Environmental Protection Agency and appropriate State
authority for the specific purpose planned shall be authorized for use within areas on NFS lands.
2. Pesticide-Use Proposal. Requests for concurrence of any planned uses of pesticides shall be
provided in advance using the Pesticide-Use Proposal (form FS-2100-2). Annually the holder shall, on
the due date established by the authorized officer, submit requests for any new, or continued, pesticide
usage. The Pesticide-Use Proposal shall cover a 12-month period of planned use. The Pesticide-Use
Proposal shall be submitted at least 60 days in advance of pesticide application. Information essential for
review shall be provided in the form specified. Exceptions to this schedule may be allowed, subject to
emergency request and approval, only when unexpected outbreaks of pests require control measures
which were not anticipated at the time a Pesticide-Use Proposal was submitted.

3. Safety Plan. Before applying pesticides in the permit area, the holder shall submit to the authorized
officer a safety plan that includes, at a minimum, a precise statement of the treatment objectives; a
description of the equipment, materials, and supplies to be used, including pesticide formulation,
quantities, and application methods; a description of the lines of responsibility for project planning, project
monitoring, and after-action review; a description of any necessary interagency coordination; a copy of
the current Pesticide-Use Proposal for the permit; a description of the process by which treatment
effectiveness will be determined; and a spill plan, communications plan, security plan, and when required
by applicable local requirements, a provision for prior notification to sensitive individuals.
4. Reporting. By September 30th annually, the holder shall submit to the authorized officer a written
report of each pesticide application project completed during the previous 12-month period. The report
shall contain information pertaining to the pesticide application projects as requested by the authorized
officer.

5. Labeling, Laws, and Regulations. Label instructions and all applicable laws and regulations shall be
strictly followed in the application of pesticides and disposal of excess materials and containers. No
pesticide waste, excess materials, or containers shall be disposed of in any area administered by the
Forest Service.
E. ARCHAEOLOGICAL AND PALEONTOLOGICAL DISCOVERIES. The holder shall immediately
notify the authorized officer of any antiquities or other objects of historic or scientific interest, including but
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not limited to historic or prehistoric ruins, fossils, or artifacts discovered in connection with the use and
occupancy authorized by this permit. The holder shall leave these discoveries intact and in place until
otherwise directed by the authorized officer.
F. NATIVE AMERICAN GRAVES PROTECTION AND REPATRIATION (NAGPRA). In accordance
with 25 U.S.C. 3002(d) and 43 CFR 10.4, if the holder inadvertently discovers human remains, funerary
objects, sacred objects, or objects of cultural patrimony on NFS lands, the holder shall immediately cease
work in the area of the discovery and shall leave the discoveries intact and in place. The holder shall
follow the applicable NAGPRA protocols for the undertaking provided in the NAGPRA plan of action or
the NAGPRA comprehensive agreement; if there are no such agreed-upon protocols, the holder shall as
soon as practicable notify the authorized officer of the discovery and shall follow up with written
confirmation of the discovery. The activity that resulted in the inadvertent discovery may not resume until
30 days after the authorized officer certifies receipt of the written confirmation, if resumption of the activity
is otherwise lawful, or at any time if a NAGPRA plan of action has been executed by the Forest Service
following tribal consultation and any preconditions have been met.

G. PROTECTION OF THREATENED AND ENDANGERED SPECIES, SENSITIVE SPECIES, AND
SPECIES OF CONSERVATION CONCERN AND THEIR HABITAT

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1. Threatened and Endangered Species and Their Habitat. The location of sites within the permit area
needing special measures for protection of plants or animals listed as threatened or endangered under
the Endangered Species Act of 1973, 16 U.S.C. 531 et seq., as amended, or within designated critical
habitat shall be shown on a map in an appendix to this permit and may be shown on the ground. The
holder shall take any protective and mitigation measures specified by the authorized officer as necessary
and appropriate to avoid or reduce effects on listed species or designated critical habitat affected by the
authorized use and occupancy. Discovery by the holder or the Forest Service of other sites within the
permit area containing threatened or endangered species or designated critical habitat not shown on the
map in the appendix shall be promptly reported to the other party and shall be added to the map.

2. Sensitive Species and Species of Conservation Concern and Their Habitat. The location of sites
within the permit area needing special measures for protection of plants or animals designated by the
Regional Forester as sensitive species or species of conservation concern pursuant to FSM 2670 shall be
shown on a map in an appendix to this permit and may be shown on the ground. The holder shall take
any protective and mitigation measures specified by the authorized officer as necessary and appropriate
to avoid or reduce effects on sensitive species or species of conservation concern or their habitat affected
by the authorized use and occupancy. Discovery by the holder or the Forest Service of other sites within
the permit area containing sensitive species or species of conservation concern or their habitat not shown
on the map in the appendix shall be promptly reported to the other party and shall be added to the map.
H. CONSENT TO STORE HAZARDOUS MATERIALS. The holder shall not store any hazardous
materials at the site without prior written approval from the authorized officer. This approval shall not be
unreasonably withheld. If the authorized officer provides approval, this permit shall include or, in the case
of approval provided after this permit is issued, shall be amended to include specific terms addressing the
storage of hazardous materials, including the specific type of materials to be stored, the volume, the type
of storage, and a spill or release prevention and control plan. Such terms shall be proposed by the holder
and are subject to approval by the authorized officer.

1. If the holder receives consent to store hazardous material, the holder shall identify to the Forest
Service any hazardous material to be stored at the site. Such identification information shall be consistent
with column (1) of the table of hazardous materials and special provisions enumerated at 49 CFR
172.101 whenever the hazardous material appears in that table. For hazard communication purposes,
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the holder shall maintain Material Safety Data Sheets for any stored hazardous chemicals, consistent with
29 CFR 1910.1200(c) and (g). In addition, all hazardous materials stored by the holder shall be used,
labeled, stored, transported, and disposed of in accordance with all applicable federal, state, and local
laws and regulations. Any hazardous material transportation and disposal manifests shall clearly identify
the holder as the generator of the hazardous waste.
2. If hazardous materials are used or stored at the site, the authorized officer may require the holder to
deliver and maintain a surety bond in accordance with clause IV.L.
3. The holder shall not release any hazardous materials onto land or into rivers, streams,
impoundments, or into natural or artificial channels leading thereto. All prudent and safe attempts must
be made to contain any release of these materials. The authorized officer may specify conditions that
must be met, including conditions more stringent than those in applicable federal, state, and local laws
and regulations, to prevent releases and protect natural resources.

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4. If the holder uses or stores hazardous materials at the site, upon revocation or termination of this
permit the holder shall provide the Forest Service with a report certified by a professional or professionals
acceptable to the Forest Service that the permit area is uncontaminated by the presence of hazardous
materials and that there has not been a release or discharge of hazardous materials upon the permit
area, into surface water at or near the permit area, or into groundwater below the permit area during the
term of the permit. If a release or discharge has occurred, the professional or professionals shall
document and certify that the release or discharge has been fully remediated and that the permit area is
in compliance with all applicable federal, state, and local laws and regulations.
I. WATER WELLS AND ASSOCIATED PIPELINES

1. Other Jurisdictional Requirements. Clause IV.F governs water facilities and water rights. The holder
shall obtain all required state, county and local water permits, licenses, registrations, certificates, or rights
and shall provide a copy of them to the authorized officer. For new wells, this information shall be
provided prior to disturbing NFS lands for the purpose of water use or development.

2. Well Construction or Development. For new or reconstruction of existing wells, the holder shall
prepare a well construction and development plan and submit it to the authorized officer for approval.
The well development and construction plan must have prior written approval from the authorized officer
before well construction or development is initiated. The holder shall follow applicable federal, state,
county, and local standards for design, construction, and development of new wells or reconstruction of
existing wells. If such standards do not exist, the holder shall follow applicable standards issued by the
American Society for Testing and Materials (ASTM), American Water Works Association (AWWA), or
National Ground Water Association (NGWA). The construction and development plan must identify all
potential sources for any proposed water injection during well construction or development. Only nonchlorinated, potable water may be injected during construction or development of wells to be used for
monitoring or water withdrawal. Copies of all documentation for drilling, constructing, or developing wells,
including all drilling, boring, and well construction logs, shall be provided to the authorized officer within
60 days of completion of work.

3. Well Decommissioning. The holder shall properly decommission and abandon all wells that are no
longer needed or maintained in accordance with applicable federal, state, and local standards for water
well abandonment. If such standards do not exist, the holder shall follow applicable standards issued by
the ASTM, AWWA, or NGWA. At least 30 days prior to initiation of well decommissioning, the holder shall
submit a well decommissioning plan to the authorized officer. The well decommissioning plan shall have
written approval from the authorized officer before well decommissioning is initiated. All documentation of
well decommissioning shall be provided to the authorized officer within 60 days of completion of the work.
J. FEDERAL SURVEY MONUMENTS, CORNERS, AND BOUNDARY MARKERS. The holder shall
protect in place all federal survey monuments, corners, and boundary markers in the permit area. If any
federal survey monuments, corners, or boundary markers in the permit area are destroyed or modified,
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the holder shall ensure that they are reestablished or corrected in accordance with (1) the Manual of
Instructions for the Survey of the Public Land of the United States; (2) the applicable county surveyor’s
specifications; and (3) the specifications of the Forest Service, as applicable. The holder shall ensure
that any official survey records that were affected due to the destruction or modification of any federal
survey monuments, corners, or boundary markers [HEOD1] are amended in accordance with applicable
law. Nothing in this clause shall relieve the holder of liability for the willful destruction or modification of
any federal survey monuments, corners, or boundary markers as provided in 18 U.S.C. 1858.
VI. LAND USE FEES
A. NEW LAND USE FEE SYSTEM. The Forest Service shall adjust and calculate land use fees
authorized by this permit to reflect any revisions to land use fee provisions in 16 U.S.C. 497c or to comply
with any new land use fee system based on market value that may be adopted by statute or otherwise
after issuance of this permit.

SAPF

(.015 x AGR in bracket 1) + (.025 x AGR in bracket 2) +
(.0275 x AGR in bracket 3) + (.04 x AGR in bracket 4), where:

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SAPF

B. SKI AREA PERMIT FEE CALCULATION. The annual ski area permit fee (SAPF) due the United
States for the activities authorized by this permit shall be calculated using the following formula:

the ski area permit fee for use of NFS lands;

adjusted gross revenue;

[(LT + SS) x (proration %)] + GRAF, prorated as applicable;

revenue from sales of alpine and Nordic lift tickets and passes;

revenue from alpine and Nordic ski school operations;

Proration %

the factor used to prorate LT and SS revenue between NFS lands and private
land in the ski area; and

GRAF

gross year-round revenue from ancillary facilities located on NFS lands, prorated
as applicable.

AGR
AGR
LT
SS

1. SAPF Formula. The SAPF shall be calculated by summing the products of the amount of the holder's
AGR that falls into one of four revenue brackets multiplied by the applicable percentage rate,. The four
revenue brackets are 1.5%, 2.5%, 2.7%, 4.0%. AGR shall be determined in accordance with clause
VI.B.2. The SAPF shall be calculated based on the holder's fiscal year, unless mutually agreed otherwise
by the holder and the authorized officer.

The four revenue brackets shall be adjusted annually using the consumer price index (CPI-U) issued in
FSH 2709.11, Chapter 30. The revenue brackets shall be indexed for the previous calendar year. The
holder's AGR for any fiscal year shall not be split into more than one set of indexed brackets. Only the
revenue in each bracket shall be updated annually. The percentage rates shall not change.
The revenue brackets and percentages in FSH 2709.11, 38.12, exhibit 01, shall be used as shown in the
preceding formula to calculate the SAPF.

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2. Calculation of AGR. AGR shall be calculated by summing the year-round revenue from the sale of lift
tickets and ski school operations prorated for use of NFS lands and from GRAF, prorated as applicable.
(a) The following shall be included in AGR:
(1) Prorated LT. Year-round revenue from sales of alpine and Nordic ski area passes and lift tickets,
including revenue generated on private land (such as from lift tickets sold on private land), prorated
according to the percentage of use between NFS lands and private land in the ski area per clause
VI.B.3.a and VI.B.3.b;
(2) Prorated SS. Revenue from alpine and Nordic ski school operations, including lessons provided to
teach alpine or Nordic skiing or other winter sports activities, such as racing, snowboarding, or
snowshoeing, even if the lessons are purchased on private land, prorated according to the percentage of
use between NFS lands and private land in the ski area per clause VI.B.3.a and VI.B.3.b;

(3) GRAF, Prorated As Applicable. Gross year-round revenue from temporary and permanent ancillary
facilities, including all the holder's or holder's contractors’ and lessees’ lodging, food service, rental shops,
parking, and other ancillary operations, located on NFS lands in the permit area, prorated, as applicable,
according to the percentage of use between NFS lands and private land in the ski area per clause
VI.B.3.c. Revenue generated from ancillary facilities on private land shall not be included in AGR;

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(4) Bartered Goods and Complimentary Lift Tickets. The market price of bartered goods and
complimentary lift tickets offered for commercial or other promotional purposes, such as for advertising.
The value of bartered goods and complimentary lift tickets offered for commercial or other promotional
purposes shall be categorized as LT, SS, or GRAF, as appropriate; and
(5) Special Event Revenue. Revenue from events such as food festivals, foot races, and concerts on
NFS lands in the permit area. Special event revenue shall be included in the AGR formula as LT, SS, or
GRAF, as applicable. The revenue shall be prorated according to the percentage of use between NFS
lands and private land per clause VI.B.3.
Discriminatory pricing, e.g., pricing based solely on race, religion, sex, national origin, or place of
residence, is prohibited under clause III.N or III.O, but if it occurs, the amount that would have been
received had discriminatory pricing not occurred shall be included in AGR.
(b) The following shall be excluded from AGR:

(1) Revenue from sales of operating equipment;
(2) Refunds;

(3) Rent paid to the holder by the holder’s contractors and lessees;
(4) Sponsor contributions to special events;
(5) Employee gratuities and employee lift tickets;
(6) Lift tickets and passes provided for public safety or public service purposes (such as for the National
Ski Patrol or for volunteers to assist in the Special Olympics);
(7) Discounts; and
(8) Any other goods and services (other than bartered goods and complimentary lift tickets offered for
commercial or other promotional purposes) for which the holder receives no money.
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3. Proration of Revenue. Alpine and Nordic revenue shall be prorated separately. Prorated revenues
shall be added together and summed with GRAF to produce AGR. One or more of the following
methods, as appropriate, shall be used to prorate revenue:
(a) Alpine revenue shall be prorated using the slope transport feet percentage (STFP), rounded to the
nearest hundredth of a percent, per the direction in FSM 2715.11c effective in 1992.
(b) Nordic revenue shall be prorated using the percentage of Nordic trail length on NFS lands to total
Nordic trail length.
(c) For ancillary facilities that are partially located on NFS lands, the ratio of the facility square footage
located on NFS lands to the total facility square footage shall be calculated, and the revenue for ancillary
facilities shall be prorated in accordance with this ratio. Special event revenue allocatable to GRAF shall
be prorated by the ratio of use on NFS lands to the total use.

4. Absence of AGR. In cases when the holder has no AGR for a given fiscal year, the holder shall pay a
land use fee of $2 per acre for NFS lands under permit or a percentage of the appraised value of NFS
lands under permit, at the discretion of the authorized officer.

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C. SAPF PAYMENTS. Payments shall be sent to the location identified on the bill for collection.
Checks or money orders shall be payable to "USDA, Forest Service." Additionally, reports shall be sent
to [enter mailing address of administering office]. The Forest Service may update these addresses as
needed by sending written notice to the holder.
1. The holder shall calculate and submit an advance payment which is due by the beginning of the
holder's fiscal year. The advance payment shall equal 20 percent of the holder's average SAPF for 3
operating years, when available. When past SAPF information is not available, the advance payment
shall equal 20 percent of the SAPF, based on the prior holder's average SAPF or projected AGR. For ski
areas not expected to generate AGR for a given payment cycle, advance payment of the SAPF as
calculated in clause VI.B.4 shall be made. The advance payment shall be credited toward the total SAPF
for the payment cycle.

2. The holder shall report sales, calculate the SAPF due based on a tentative percentage rate, and
make interim payments each fiscal ______________, except for periods in which no sales take place and
the holder has notified the authorized officer that the operation has entered a seasonal shutdown for a
specific period. Reports and payments shall be made by the end of the month following the end of each
reportable period. Interim payments shall be credited toward the total SAPF for the payment cycle.
3. Within 90 days after the close of the ski area's payment cycle, the holder shall provide a financial
statement, including a completed SAPF information form, Form FS-2700-19a, representing the ski area's
financial condition at the close of its business year and an annual operating statement reporting the
results of operations, including a final payment which includes year-end adjustments for the holder and
each of the holder’s contractors and lessees for the same period. The holder shall submit a written
certification of the accuracy of the financial statement that is dated and signed by the preparer of that
document. Any balance that exists may be credited and applied against the next payment due or
refunded, at the discretion of the holder.
4. Within 30 days of receipt of a statement from the Forest Service, the holder shall make any additional
payment required to ensure that the correct SAPF is paid for the past year's operations.
5. All SAPF calculations and records of sales are subject to review or periodic audit as determined by
the authorized officer. Errors in calculation or payment shall be corrected as needed for conformance
with those reviews or audits. In accordance with clause VI.E, interest and penalties shall be assessed on
additional fees due as a result of reviews or audits.
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D. CORRECTION OF ERRORS. Correction of errors includes any action necessary to calculate the
holder's sales or STFP or to make any other determination required to calculate SAPFs accurately. For
SAPF calculation purposes, an error may include:
1. Misreporting or misrepresentation of amounts;
2. Arithmetical mistakes;
3. Typographical mistakes; or
4. Variation from generally accepted accounting principles (GAAP), when such variations are
inconsistent with the terms of this permit.

E. LAND USE FEE PAYMENTS

Correction of errors shall be made retroactively to the date the error was made or to the previous audit
period, whichever is more recent, and past SAPFs shall be adjusted accordingly.

1. Crediting of Payments. Payments shall be credited on the date received by the deposit facility, except
that if a payment is received on a non-workday, the payment shall not be credited until the next work day.

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2. Disputed Land Use Fees. Land use fees are due and payable by the due date. Disputed land use
fees, other than land use fees recalculated pursuant to an audit, must be paid in full. Adjustments will be
made if dictated by settlement terms or an appeal decision.
3. Late Payments

(a) Interest. Pursuant to 31 U.S.C. 3717 et seq., interest shall be charged on any land use fee not paid
within 30 days from the date it became due. The rate of interest assessed shall be the higher of the
Prompt Payment Act rate or the rate of the current value of funds to the United States Treasury (i.e., the
Treasury tax and loan account rate), as prescribed and published annually or quarterly by the Secretary
of the Treasury in the Federal Register and the Treasury Fiscal Requirements Manual Bulletins. Interest
on the principal shall accrue from the date the land use fee is due.
(b) Administrative Costs. If the account becomes delinquent, administrative costs to cover processing
and handling the delinquency shall be assessed.

(c) Penalties. Pursuant to 31 U.S.C. 3717(e)(2), a penalty of 6% per year shall be assessed on the total
amount of any debt, including interest and administrative costs, that is more than 90 days delinquent.
The penalty shall accrue from the same date on which interest charges begin to accrue.
(d) Termination for Nonpayment. This permit shall terminate if the holder fails to pay any land use fee,
interest, or any other charges within 90 calendar days from the due date. The holder shall remain
responsible for the delinquent charges.

4. Administrative Offset and Credit Reporting. Delinquent land use fees and other charges associated
with the permit shall be subject to all rights and remedies afforded the United States pursuant to
31 U.S.C. 3711 et seq. and its implementing regulations. Delinquencies are subject to any or all of the
following:
(a) Administrative offset of payments due the holder from the Forest Service.
(b) If in excess of 120 days, referral to the United States Department of the Treasury for appropriate
collection action as provided by 31 U.S.C. 3711(g)(1) and its implementing regulations.

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(c) Offset by the Secretary of the Treasury of any amount due the holder, as provided by 31 U.S.C.
3720A et seq.
(d) Disclosure to consumer or commercial credit reporting agencies.
F. ACCESS TO RECORDS. For the purpose of administering this permit (including ascertaining that the
correct land use fee was paid), the holder shall make all accounting books and supporting records for the
authorized operations, as well as those of lessees operating in the permit area, available for review by the
Forest Service or other federal agencies authorized to review Forest Service activities. Review of
accounting books and supporting records shall be made at dates convenient to the holder and
reviewers. Financial information so obtained shall be kept confidential to the extent permitted by law.
The holder shall retain these records and keep them available for review for 5 years after they were
generated, unless otherwise approved by the authorized officer in writing.

G. ACCOUNTING RECORDS. The holder shall follow GAAP or another comprehensive basis of
accounting acceptable to the Forest Service in recording financial transactions and in reporting results to
the authorized officer. When requested by the authorized officer, the holder at its own expense shall
have the annual accounting reports audited or prepared by a licensed independent accountant
acceptable to the Forest Service. The holder shall require lessees to comply with these same
requirements. At a minimum, the holder’s or lessees’ accounting system shall include:

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1. Systematic internal controls, including recording by type of business the gross receipts derived from
all operations conducted under this permit. Gross receipts should be recorded daily and, if possible,
deposited into a bank account without reduction by disbursements. Receipt entries shall be documented
by cash-register tapes, sale invoices, rental records, cash accounts from other sources, or some other
means.
2. A permanent record of capital investments in facilities (including a depreciation schedule).
3. Generation and maintenance of such other records and accounts as may be specified by the
authorized officer.
VII. REVOCATION, SUSPENSION, AND TERMINATION
A. REVOCATION AND SUSPENSION

1. The authorized officer may revoke or suspend this permit in whole or in part:
(a) For noncompliance with federal, state, or local law;
(b) For noncompliance with the terms of this permit;

(c) For abandonment or other failure of the holder to exercise the privileges granted; or
(d) At the discretion of the authorized officer, for specific and compelling reasons in the public interest.
2. The authorized officer may revoke this permit at the request of the holder. Revocation at the request
of the holder must be agreed to in writing by the authorized officer. As a condition of revocation of this
permit at the request of the holder, the authorized officer has discretion to impose any terms deemed
appropriate as provided for in this permit.
3. Prior to revocation or suspension, other than revocation at the request of the holder under clause
VII.A.2 and immediate suspension under clause VII.C, the authorized officer shall give the holder (and if
applicable, the operator) written notice of the grounds for revocation or suspension. In the case of
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revocation or suspension based on clause VII.A.1(a), VII.A.1(b), or VII.A.1(c), the authorized officer shall
give the holder a reasonable period, not to exceed 90 days, to cure any noncompliance.

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B. REVOCATION FOR SPECIFIC AND COMPELLING REASONS IN THE PUBLIC INTEREST. The
authorized officer may revoke this permit during its term if the Forest Service determines based on a land
management planning decision that the use and occupancy authorized by this permit should be changed
for specific and compelling reasons in the public interest, other than a determination under clause IV.E
that the authorized improvements or the permit area cannot be safely occupied. Prior to revoking the
permit under this clause, the authorized officer shall give the holder 90 days written notice to the holder,
provided that the authorized officer may prescribe a shorter notice period if justified by the public interest.
The Forest Service shall then have the right to remove or relocate the authorized improvements, to
require the holder to remove or relocate them, or to purchase them. Removal or relocation by the Forest
Service of the authorized improvements shall be accepted by the holder in full satisfaction of all claims
against the United States under this clause. If the Forest Service requires the holder to remove or
relocate the authorized improvements or purchases them, the Forest Service shall be obligated to pay the
lesser of (1) the cost of removal or relocation of the authorized improvements or (2) the value of the
authorized improvements as determined by the Forest Service through an appraisal of their replacement
cost, less an allowance for depreciation of all types. If that amount is fixed by agreement between the
authorized officer and the holder, that amount shall be accepted by the holder in full satisfaction of all
claims against the United States under this clause. If agreement is not reached, the authorized officer
shall determine the amount to be paid, which shall be set forth in the revocation decision. A payment
made pursuant to this clause is subject to the availability of appropriations. Nothing in this permit implies
that Congress will appropriate funds to cover a deficiency in appropriations.
C. IMMEDIATE SUSPENSION. The authorized officer may immediately suspend this permit in whole or
in part when necessary to protect public health or safety or the environment. The suspension decision
shall be in writing. The holder may request an on-site review with the authorized officer’s superior of the
adverse conditions prompting the suspension. The authorized officer’s superior shall grant this request
within 48 hours. Following the on-site review, the authorized officer’s superior shall promptly affirm,
modify, or cancel the suspension.
D. APPEALS AND REMEDIES. Written decisions made by the authorized officer relating to
administration of this permit are subject to administrative appeal pursuant to 36 CFR Part 214.
Revocation or suspension of this permit shall not give rise to any claim for damages by the holder against
the Forest Service, other than as provided in clause VII.B.

E. TERMINATION. This permit shall terminate when by its terms a fixed or agreed upon condition,
event, or time occurs without any action by the authorized officer. Examples include but are not limited to
expiration of the permit by its terms on a specified date and, in the case of a permit issued to a business
entity, termination upon change of control of the business entity and issuance of a new permit to another
party for the use and occupancy authorized by this permit. Termination of this permit is not subject to
administrative appeal and shall not give rise to any claim for damages by the holder against the Forest
Service.
F. RIGHTS AND RESPONSIBILITIES UPON REVOCATION OR TERMINATION WITHOUT
ISSUANCE OF A NEW PERMIT. Except as provided in clause VII.B, upon revocation of this permit or
termination of this permit without issuance of a new permit, the authorized officer has the discretion to
require the holder to sell or remove all structures and improvements, except those owned by the United
States, within a reasonable period prescribed by the authorized officer and to restore the site to the
satisfaction of the authorized officer. If the holder fails to sell or remove all structures or improvements
within the prescribed period, they shall become the property of the United States and may be sold,
destroyed, or otherwise disposed of without any liability to the United States. However, the holder shall
remain liable for all costs associated with their removal, including costs of sale and impoundment,
cleanup, and restoration of the site.

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G. CONTINUATION OF OBLIGATIONS AND LIABILITIES BEYOND EXPIRATION OR
REVOCATION. Notwithstanding the termination or revocation of this permit, its terms shall remain in
effect and shall be binding on the holder and the holder’s personal representative, successors, and
assignees until all the holder’s obligations and liabilities accruing before or as a result of termination or
revocation of this permit have been satisfied.

R
AF

H. TERMINATION FOR THE DEVELOPMENT OF HYDROELECTRIC POWER OR RECLAMATION
PURPOSES. Any lands covered by this permit which have been withdrawn for hydroelectric power under
the act of March 3, 1879, or the act of June 25, 1910, or are covered by an application or license
governed by the Federal Power Act of June 10, 1920, are subject at any time to use for the development
of hydroelectric power. Any lands covered by this permit which have been withdrawn under the
Reclamation Act of June 17, 1902, are subject at any time to use for reclamation purposes. This permit is
issued with the specific understanding that (1) the use and occupancy authorized by this permit shall not
interfere with such development of hydroelectric power or reclamation and that (2) the permit shall
terminate after 90 days written notice when, in the judgment of the Federal Power Commission, the lands
in question are needed for the development of hydroelectric power or, in the judgment of the Bureau of
Reclamation, the lands in question are needed for reclamation purposes. The holder shall have 90 days
to remove the authorized improvements. Termination under this clause does not constitute revocation for
specific and compelling reasons in the public interest under clause VII.B and shall not give rise to any
claim by the holder against the Federal Power Commission, the Bureau of Reclamation, the Forest
Service, or hydroelectric power licensees for damages, including lost profits and damage to
improvements, due to such development of hydroelectric power or reclamation.
VIII. MISCELLANEOUS PROVISIONS

A. MEMBERS OF CONGRESS. No member of or delegate to Congress or resident commissioner shall
benefit from this permit either directly or indirectly, except to the extent the authorized use provides a
general benefit to a corporation.

B. REGULATING SERVICES AND RATES. The authorized officer shall have the authority to regulate
the adequacy and type of services provided the public under this permit and to require that these services
conform to satisfactory standards. The holder may be required to furnish a schedule of prices for sales
and services authorized by the permit. These prices may be regulated by the authorized officer, provided
that the holder shall not be required to charge prices significantly different from those charged by
comparable or competing enterprises.
C. CURRENT ADDRESSES. The holder and the authorized officer shall keep each other informed of
current mailing addresses, including those necessary for billing and payment of land use fees.
D. SUPERSEDED PERMIT. This permit supersedes a special use permit designated
#PREV_REISSUE_HOLDER#, #PREV_AUTH_ID#, dated #PREV_REIS_ISSUE_DATE#.
E. MERGER CLAUSE. This permit, and any appendices incorporated into this permit by reference,
constitute the complete understanding of the parties to this permit as to the rights, duties, and obligations
of each party as of the date of issuance of this permit. If there are any inconsistencies between any of
the preceding clauses and any of the subsequent clauses or any appendices to this permit, the preceding
clauses shall govern.

Page 33 of 42

THIS PERMIT IS ACCEPTED SUBJECT TO ALL ITS TERMS.
BEFORE THIS PERMIT IS ISSUED TO AN ENTITY, DOCUMENTATION MUST BE PROVIDED TO
THE AUTHORIZED OFFICER OF THE AUTHORITY OF THE SIGNATORY FOR THE ENTITY TO BIND
IT TO THE TERMS OF THIS PERMIT.
ACCEPTED:
[NAME AND TITLE OF PERSON SIGNING ON BEHALF OF HOLDER,
IF HOLDER IS AN ENTITY]
#HOLDER_NAME#

DATE