Timber Sale Contract A-16 lies within Latitudes 7°7'12'' - 7°10'48'' North of the equator and Longitudes 11°3'36'' - 11°12'0'' West of the Greenwich meridian and is located in Grand Cape Mount County-Liberia
Environmental impact assessment and management plan
The contract may be interrupted by the Forestry Development Authority to ensure consistency with the Environmental Impact Assessment and related documents
The contract may be interrupted by the Forestry Development Authority to prevent environmental degradation or resource damage and to conduct environmental analysis
Sun Yeun Corporation's harvests must be consistent with sustainable management of forest resources. Sun Yeun Corporation shall conduct its operations in a manner that promotes sustainable development of forest resources and environmental protection for the common good of the people of Liberia. It shall conduct all operations and activities using only environmentally sound forest harvesting practices that conform to the Forest Management Guidelines, the Liberia Code of Forest Harvesting Practices, and internationally accepted, scientific principles and practices applicable to forest operations and timber processing. Sun Yeun Corporation shall conduct all operations and activities so as to avoid waste and loss of natural resources and to protect natural resources from damage. It shall conduct all operations and activities so as to prevent pollution and contamination of the environment. Sun Yeun Corporation shall harvest trees in a manner that avoids unnecessary damage and waste, and unnecessary damage to young growth and other trees. It shall identify in the annual operational plan areas requiring special measures for the protection of plants and animals, and it shall protect these areas from damage or removal during operations. Sun Yeun Corporation shall comply with the Liberia Code of Forest Harvesting Practices for the protection of wildlife in the contract area, as well as for watercourse protection and erosion prevention and control. It shall provide for the proper disposal of sawdust, mill, and other wastes to prevent pollution or contamination.
Subject to the written approval of the Government and the Social Agreement (as called for under Forestry Development Authority Regulation 105-07) and such conditions as the Government or Social Agreement may impose, Sun Yeun Corporation may use free of charge any water found within the contract area and in the public domain within 5 kilometers of the contract area provided that it does not deprive any lands, tribes, villages, towns, houses, or watering places for animals of a reasonable supply of water, and does not interfere with the rights of water enjoyed by persons under the Land and Native Right Ordinance. Sun Yeun Corporation's use of water must in no way result in environmental damage or create other hazards.
The land rental bid is US$ 16.00 per hectare per year. The land rental bid payment is based on the bid provided in the bid opening ceremony multiplied by the surface area in hectares of the contract area. Sun Yeun Corporation shall pay the fee annually to the Government within 30 days after the date upon which the contract satisfies the requirements of Section 5.3(f) of the National Forestry Law of 2006 that the contract be both signed by the President and ratified by the legislature. Sun Yeun Corporation shall pay log stumpage, annual contract administration, area, coupe inspection, and forest product fees to the Government under Forestry Development Authority Regulation 107-07, on Certain Forest Fees.
Sun Yeun Corporation shall not use public land outside the contract area unless it has express, written permission from the Forestry Development Authority. Before requesting permission, Sun Yeun Corporation shall consult with all potentially affected communities that are party to social agreements with it. Sun Yeun Corporation shall make a written record of the time, place, and general content of those consultations.
Sun Yeun Corporation shall execute the Social Agreements required under Forestry Development Authority Regulation 105-07 before the first annual operating season
Sun Yeun Corporation shall give preference to competent and qualified individuals living in and near the contract area, particularly to individuals from communities benefiting from the Social Agreements. Sun Yeun Corporation shall not import unskilled labor from outside Liberia.
Protections or benefits for employees, dependents, or others
Sun Yeun Corporation shall follow internationally recognized, modern safety precautions in all activities and shall comply with written safety instructions supplied by the Government. Sun Yeun Corporation shall follow internationally recognized, modern measures for the protection of general health and safety of its employees and shall comply with written public health instructions given in writing by the Government.
Right to access concession area (non-contracting parties)
Sun Yeun Corporation must allow the public to have access over the contract area provided that such access does not amount to encroachment and does not unduly prejudice or interfere with Sun Yeun Corporation's operations. The rights of private land owners and the public are governed by Chapters 11 and 12 of the National Forestry Reform Law of 2006, and Sun Yeun Corporation agrees to respect those rights. In addition, the Government reserves the right to, among other things, access or allow others to access the contract area for the purpose of exploring for or exploiting minerals or other substances or any reasonable investigation, provided Sun Yeun Corporation's operations and activities shall not be unduly interfered with or its rights prejudiced. If Sun Yeun Corporation's property is damaged as a result of such exploration, investigation or exploitation, the Government agrees to provide fair compensation for such damage. The Government also reserves the right to, among other things, take from the contract area timber and forest products (flora, fauna, and micro-organisms with social or economic value) that are required for public purposes, or allow others to access the contract area for traditional and customary community uses of timber and forest products, provided Sun Yeun Corporation's operations and activities shall not be unduly interfered with or its rights prejudiced.
Sun Yeun Corporation shall identify areas requiring special measures for the protection of cultural resources in the annual operational plan, and describe these special measures and protect these areas from damage or removal during its operations
Sun Yeun Corporation has rights under section 18.8 of the National Forestry Reform Law of 2006 concerning construction of infrastructure and agrees to exercise those rights subject to the contract. It shall comply with all laws governing construction, maintenance and use of improvements. Sun Yeun Corporation shall ensure that all infrastructure and works installed in relation to the contract are authorized by Government agencies other than the Forestry Development Authority when required by law and comply with the Liberia Code of Forest Harvesting Practices and other applicable laws. It shall design, construct, and maintain infrastructure in a manner that avoids unreasonable risk to safety, health, welfare, and the environment. Sun Yeun Corporation shall carry out road construction and maintenance activities in compliance with the Liberia Code of Forest Harvesting Practices.
All infrastructures revert to the Government upon termination of the contract and shall be left in safe running order
Sun Yeun Corporation shall allow third party use of any roads constructed or maintained by it as long as such use does not unduly prejudice or interfere with its operations. Sun Yeun Corporation shall also allow use of communication lines, subject to fair compensation.
Sun Yeun Corporation shall not use public land outside the contract area unless it has express, written permission from the Forestry Development Authority. The Forestry Development Authority shall not unreasonably deny permission to use such land. Sun Yeun Corporation may use private land with the express, written permission of the land owner. If Sun Yeun Corporation is unable to obtain the permission of the land owner for such use, then use is limited to rights of way, and any compensation is governed by Chapter 11 of the Forestry Reform Law of 2006 and the Forestry Development Authority Regulation 110-07. With or without permission of the land owner, Sun Yeun Corporation shall not seek a use, lease, right-of-way, or easement that substantially interferes with the operations of another previously issued forest management contract or timber sale contract. Sun Yeun Corporation also shall not interfere with any good faith exercise of third-party rights to timber or forest products, including customary rights, without permission of the third party.
Sun Yeun Corporation must include an up-to-date business plan demonstrating it has the technical and financial capacity to manage the contract area sustainably. The business plan must conform to the Forestry Development Authority's Guidelines for Forest Management Planning
Sun Yeun Corporation shall use all reasonable means to prevent encroachment by unauthorized persons into the contract area, but it shall not employ or in any way use armed security guards for any purpose
Failure by Sun Yeun Corporation to submit a claim (a written demand seeking the payment of money, adjustment or interpretation of contract terms, or other relief, under or relating to this contract) for resolution within 60 days of the disputed action by the Forestry Development Authority shall relinquish the Forestry Development Authority of any and all obligations related to the dispute. Claims arising under the contract shall be decided by the contracting officer (the officer who the Forestry Development Authority has delegated authority to administer the contract). The decision of the contracting officer shall be final and conclusive if within 45 days from receipt, Sun Yeun Corporation fails to appeal the decision to an appropriate Liberian court.
Sun Yeun Corporation shall not transfer this contract or any interests, rights, privileges or obligations under the contract without prior written approval from the Forestry Development Authority. The Forestry Development Authority shall not consent to any transfer, except in compliance with Forestry Development Authority Regulation 104-07, Section 71.
The Forest Development Authority shall terminate the contract if Sun Yeun Corporation commits any of a number of breaches, including: (b) felling trees not covered by an Annual Harvesting Certificate, (d) abandoning operations for a period of 1 year or more, (e) significantly failing to meet the requirements of an approved annual operational plan, (f) assigning to a third-party rights held under the contract without the consent of the Forestry Development Authority, (g) going into bankruptcy or liquidation, (i) failing to meet any monetary obligations, including payments of bids or fees to the Government or payments to local communities, in a timely fashion, (k) engaging in a pattern of activity that demonstrates flagrant disregard for the terms of the contract, (m) failing to comply with any provisions of law or regulations, (o) intentionally removing any timber, forest products (flora, fauna, and micro-organisms with social or economic value) or natural resources not provided for in the contract without written approval from the Forestry Development Authority, (q) being convicted for violation of criminal statutes or civil standards, or other regulations for environmental protection, (r) failing to comply with a Social Agreement, and (s) if it or its senior officers are convicted for violation of criminal statutes and civil standards, or any other offense indicating a lack of business integrity or honesty that seriously and directly affects the responsibility of Sun Yeun Corporation including (ii) payment of a bribe, and (v) human rights violations.
The parties understand that section 18.15 of the National Forestry Reform Law guarantees to the public free access to all documents and information related to this contract and its administration, subject only to limited exceptions
Force majeure means any unforeseeable cause beyond the reasonable control of the parties that prevents the parties from performing contractual duties for 15 consecutive days or more. Force majeure includes, among other things, acts of God and other natural disasters, war, riot, epidemic, expropriation of facilities or goods, and unforeseen restrictions on trade. Failure by either party to fulfil terms and conditions of the contract as a result of force majeure is not a breach of the contract. Any party who fails to perform obligations as a result of force majeure shall, once the force majeure ceases, take all reasonable steps to make good, and resume compliance with, those obligations.
Sun Yeun Corporation consents to the Government or a designated representative conducting reasonable inspections of the contract area and premises. Sun Yeun Corporation shall keep records to demonstrate compliance with the contract for the duration of the contract and for 5 years after the contract terminates. It shall provide a written report within 90 days after completing operations under each annual operational plan, and keep the contracting officer (the officer who the Forestry Development Authority has delegated authority to administer the contract) informed as to its operations and other contractual activities.
If any statute or regulation referred to in the contract is repealed or amended, the contract shall be taken to refer to the newly amended statute or regulation, or the statute or regulation that replaces the repealed one, as determined by the Forestry Development Authority