Free Motion for Summary Judgment - District Court of Federal Claims - federal

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United States Departm~e..nt of Agrleult~e File Code: Route To: 2450

Forest Service

National Forests in Mississippi

100 West Capitol Street Suite 1141 Jackson, MS 39269

Date: December 2000 4,

Subject:.Temporary Reductionof Down Payment,Contract#303599 Compartments Chickasawhay 477, Ranger District JCMTimber 42190Hv*3r63 N Richton, MS39476 Yourrequest for a refund of the down payment incurred road costs can be partially a~d approved. Contr~t provision CT4.229 authorizes the temporaryreduction of the down payment whenthe ContractingOfficer requests the Purchaserto delay operat{ons morethan 60 days. My for letter of October20, 2000, meetsthis condition. Theprovision specifies that the down payment on deposit may reducedto $1,000or 2 percent of the amount deposit, whichever greater. be on is For this sale, $1,000mustremainon deposit. Theremaining $35,600 in the process of being is refundedto you. Keepin mhad that the refundedamount must be restored prior to resuming logging. Please review CT4.229 completeinformationabout the conditions and for reqttirements. Thereis no provisionin the timbersale contract to refundthe road costs you haveincurred. You will havean opportunity a later time, depending the outcome the lawsuit, to recover at on of these costs. Thereis an unencumbered balanceof $2,898.16 the accountfor this sale. This will be in refunded with the down payment. Please call meat 601-965-4391 you have any questions. if
;

RANDALL SMITH W. ContractingOfficer District Ranger, Chickasawhay FSR, John Fuquay Resource, TSA CaseFile

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United Sta~es Department of Agriculture Forest Service

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National Forest in Mississippi

100 We~tCapitol Street Suite 1141 Jackson, MS 39269 601-965-4391

File Code:2450 Date: November 12, 2004 JCM Timber Company 4219 Highway 63 North Pdchtor~ MS39476 Re: Claim for Out-of-pocket Expenses for Compartment Timber Sale, Conla-act # 303599 447 CERTIFI:ED~ Dear Mr. Mills: This is the Contracting Officer's final decision on your claim received on June 17, 2003pursuant to the Contract Disputes Act, Pub. L. 95-563, under khe Compartment Timber Sale, Contract 447 # 303599. RETURN RECEIPT REQUESTED

PREFACE AND DIGEST: Decision Identification Number. Location of Sale: Region National Forest RangerDistrict Sale Information: Purchaser Name Award Date Original Termination Date Extended Termination Date Contract Number Sale Name Contract Form Claim Summary: Claim was received from Purchaser on April 17, 2003 for damagesincurred as a result of interruption whichbegan on October20, 2000 of all timber-cutting and other operations on the Compartment timber sale. Total claim is for 447 $178,961.3I. The claim consisted of eight elements. JCM Timber Company March 15, 2000 November30, 2002 November 30, 2007 303599 Compartment 447 RS-2400-6T (10/73) Region 8 Desoto NF Chickasawhay CDA-08-04-6

2
Caring for the Land and Serving People

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l) Cost of Road Construction ................. 2) Interest on Construction Cost ............... 3) Lost Imerest on DownPayment ............. 4) Road Taxes due to the State of Miss .......... 5) Labor and Equipment Costs ................. 6) Timber Cruise ............................. 7) Lost Profit ................................ 8) Attorney Fees ............................. Total Claim Disposition of Claim:

$ 101,855.09 $ 16,095.42 $ 3,125.80 $ 4,245.00 $ 2,640.00 $ 1,000.00 40,000.00 $ 10,000.00 $ 178,961.31

Basedupon information provided in the claim received April 17, 2003, I conclude that not all of the expensesare out-of-pocketand are not a direct result of the interruption or delay; the claimis sustained in part. PURCHASER'S CLAIM: Purchaser's timber sate Compartment (Contract # 303599) was interrupted pursuant 447 to the Order of the UnitedStates District Court for the NorthernDistrict of Georgia, dated effective as of May16, 2001, Action No1:00-CV_1755_CAP. This project was one of 23 projects identified in the Sierra Club v. Estill litigation. ThePurchaserclaims that the decision of the District Court, and subsequent related suspension issued October 20, 2000 by Randall W. Smith, Contracting Officer, and that pursuant to Section CT6.01(b)of the timber sale contract for the Compartment timber sale; the interruption of the contract 447 was "to complywith a court order, issued by a court of competentjurisdiction" and was madeupon the written request of the Contracting Officer. Purchaser further claims that during the suspension he was prevented from cutting timber under the sale and that the Forest Service indicated to Purchaser that the contract was being extended and that ultimately Purchaser wouldbe able to complete the contract. Therefore, Purchaser c/aims that under provision CT6.01(b) of the contract, Purchaser is entitled to "out-of-pocket expensesincurred as a direct result of interruption or delay of operations under this provision whensuch an interruption or delay exceeds 30 days during NormalOperating Season." Purchaser claims that he has limited the claim to actual losses suffered as a direct result of the interruption of the contracts.

FTND1NGS: The Compartment447 timber sale contract # 303599 was awarded to JCMTimber Companyon March 15, 2000. The Compartment 447 contract is Form RS-2400-6T (10/73). A. Contract Reouirements. The pertinent part of Standard Provision CT6.01 - INTERRUPTION OR DELAY OPERATIONS. OF (10/96) states the Purchaser agrees to intemapt delay operations under this contract, in wholeor in part, uponthe written request of the Contracting Officer: 3

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(b) To complywith a court order, issued by a court of competentjurisdiction;
or

Purchaser a~ees that in the event of an interruption under this Subsectionthat its sole and exclusive remedy shall be: (i) Contract TermAdjustment pursuant to BTS.21or When such interruptions or delay exceed 30 days during Normal Operating Season, Contract Term Adjustment pursuant to BTS.21, p/us out-of-pocket expensesincurred as a direct result of interruption or delay of operations under this Subsection.

(it)

Out-of-pocketexpensesdo not include lost profits, attorney's fees, replacementcost of timber, or any other anticipatory losses suffered by the Purchaser. Purchaser agrees to provide receipts or other documentationto the ContractingOfficer that clearly identify and verify actual expenditures.
Facts.

A letter dated October 20, 2000 was sent to JCM Timber Company notifying him of an Order Based UponJoint Stipulated Settlement Ageementby the United States District Court for the NorthernDistrict of GeorNa Atlanta Division in Sierra Club, et a~. v. Este|l, et al. mcease all loggingand road-buildingactivities, including tree-cutting on 23 projects, (of whichthis sale was included) except for demobilizationactivities. Theletter further stated that in order to complywith the Order, Compartment Contract # 303599is being suspened Pursusant to 447 contract provision CT6.0I (a) and that logging will not be allowed to proceed pending action by the A letter dated February 25, 2003 was sent to/CM Timber Company notifying him that the legal obligation that required suspensionof his timber sale had endedand that contract operation mayresumeonce he restores the balance of his down paymentrequired by contract provision CT4.220. He was also informed that his Contract Terminationdate, etc. wouldbe adjusted as well. A letter dated July 29, 2004 was sent to JCMTimber Company giving him an opportunity to up-date his claim, he chose not to do so. Analvsis.__~ 1. Cost of RoadConstruction ........... $101,855.09

I am den~ this portion of your claim for road constrnction cost because the road cost was considered during our appraisal process, and this cost wasreflected by lower advertised rates (CT6.0t (c) (it). 2. Interest on Construction ........... $16,095.42

I amdenving~for nowthis portion of your claim for interest because your records submitted showsthat the interest claimed wasnot a direct result of

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delaying your timber sale (CT 6.01 (c) (ii). If you provide moresubstantive documentation a later date, I will reconsider this decision. at 3. Loss of interest on downpayment .... $ 3,125.80

I am ~ this portion of your claim for interest because your records submittedshowsthat this interest is an anticipatory loss (CT6.01 (c) (ii). maysubmit a claim at a later date once this loss becomes actual out-of pocket an expense. 4. Roadconstruction taxes State of Miss... . $4,245.00

I am ~ this portion of your claim for taxes because your records submitted showsthat the taxes owedto the State of Mississippi didn't result fi-om the delay of your timber sale. Furthermore, the documentyou submitted was a bill and not a receipt (CT6.01 (c) (ii). 5. Labor and Equipment cost ............ $2,640.00

I am ~ this portion of your claim in full as a move-in and move-out cost. 6. Timber Cruise ...................... $1,000.00

t amdenvin~this portion of your claim becausethis cost was not a direct result of the delay of your timber sale (CT6.01 (c) (ii). 7, Lost Profit ............ $40,000.00

I am ~ this portion of your claim because CT Provision CT6.01 (c) (ii) your timber sale contract list lost profits as not being an Out-of-pocketexpense. 8. Attorney Fees ...................... $10,000.00

I am ~ this portion of your claim because CT Provision CT6.01 (c) (ii) your timber sale contract list Attorney'sFees as no__.kt beingan Out-of-pocket expense. Note: Forest Service Representative, John Fuquaywas consulted to detem~neif element number5 was reasonable. DECISION: Based on the Findings of Facts and decision rendered for each of the eight claim elements submitted; I find that JCM TimberCompany entitled to recover for is one out of the eight elementstotaling $2.640.00.

CONCLUDING INFORMATION: This is the final decision of the Contracting Officer. This decision maybe appealed to the AgricuIture Board of Contract Appeals. 5

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If you decide to makesuch an appeal, you must mail or otherwise furnish written notice thereof to the Agriculture Board of Contract Appeals within 90 days from the date you receive this decision. A copy thereof shall be furnished to the Contracting Officer from ~vhosedecision appeal is intended, shall reference this decision, and identify this contract by number. In lieu of appealing to the AgTiculture Board of Contract Appeals, you may bring an action directly in the Court of Federal Claimswithin 12 monthsof the date you receive this decision. In the event you appeal this decision to the Agriculture Board of Contract Appeals, you mayrequest that the Boardprocess this appeal under the accelerated procedures (41 U.S.C.601, et seq., section 71"). A copy of your claim is attached.

~ D. CORBITT ¯' /Contracting Of~cer ~ : Name: Lynn D. Corbitt Address: 100 W. Capital St., Suite 1141 ',,_.. Jackson, MS39269 Telephone Number:(601) 965-4391; ext. 129

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SHI¥OU
AL SHIYOU

LAW FIRM

ATTORNEYS AND COUNSELORS AT

CERTIFIED April 16, 2003

MAIL, RETURN RECEIPT REQUESTED

Mr. Randall W. Smith Contracting Officer Urdted States Departmentof Agriculture Forest Service 100 WestCapitol Street, Ste. 1141 Jackson, Mississippi RE: Claimant: CLaim: Jerry Mills, D/B/A JCMTimber Contract# 303599

Dear Mr. Smith: This letter is a claim being filed by and on behalf of Jerry Mills, D/B/A Timber, pursuant JCM to the terms of Contract# 303599. As you are aware, Mr. Mills bid on the referenced comract on or about March1, 2000. Mr. Mills was awardedthe contract on March15, 2000, said contract expiring on November 2002. 30, (Exhibit "1") The contract price for the timber was $340,033.00. In addition, Mr. Mills was receive credit for the cost of constructing the road required to remove timber. the In compliancewith the terms of the contract, Mr. Mills had the required road constructed at a cost to him of $101,855.09. OnJune 16, 2000, Mr. John Fuquayaccepted the road and issued a Ietter of acceptance on July I9, 2000. (Exhibit "2") OnOctober20, 2000, Gary Nichols, of your agency, presented himself to the site and notified Mr. Mills to immediatelycease cutting timber and not to removeany further timber from the site (including timber akeady cut and on the ground). Mr. Nichols advised Mr. MiBsthat the Forest Service was being sued by an environmentalgroup. He also advised Mr. Mills that the suit was not over anything that Mr. Mills or his crew had done. This action was followed up with a letter from you suspending the contract. (Exhibit "3")

POST OFFICEBOX 310 HATTIESBURG, MISSISSIPP] 39403 PHONE 601-583-6040

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OnFebruary 25, 2003, three monthsafter the termination date of the contract, you issued a letter to Mr. M~withdrawingthe contract suspension. Therein, you included a bill for collection in the sumof $35,600.00, due by March25, 2003. (Exhibit "4") Duringthe time of the suspension, timber prices fell dramatically. In Marchof 2000, Mr. Mills had a guaranteed price from Scotch Plywood $74.00 per ton. The price nowis $56.00 per ton. of Tt~s is a 24.3%decrease in price! The DBH size on logs were from 13" and up. Chip and saw price decreased from $51.00 per ton to $38.00 per ton. This is a 22.4%decrease in price! Pine pulp decreased from $28.00 per ton to $24.00 per ton. This is a 14.2%decrease in price. Pursuant to the terms of the contract, Mr. Mills could apply for a rate redetermination. Mr. Mills wasset to do this and he was advised by Mr. John Fuquaythat the Forest Service had never granted a redetermination of price. He advised Mr. Mills not to count on the redetermination of price. As a result of the handlingof this matter and the loss of the contract, Mr. Mills has incurred the following losses for which he is nowmakingclaim: 1. 2. 3. 4. 5. 6. 7. 8. Cost of construction of the road: Interest on the construction cost: Loss of interest on downpayment: Roadconstruction taxes due to the State of MS Labor and Equipment Costs: Timber Cruise: Lost Profit: Attorney Fees: TOTAL: 101,855.09 16,095.42 3,125.80 4,245.00 2,640.00 1,000.00 40,000.00 10.000.00 $178,961.31

(Exhibit "7")

Pursuantto the terms of Mr. Mills contract, please accept this letter as his claim for the sumof $178,961.31.

AI Shiyou

---

j

CC: Mr. Jerry Mills

8

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STATEMENT OF GOOD FAITH

I, Jerry Mills, D/BIAJCM Timber,do hereby certify that the foregoing claim and all facts and matters therein stated are madein goodfaith, the supporting data is accurate and completeto the best of myknowledge belief, and that the amountrequested accurately and reflects the contract adjustment for whichI believe the government liable under Contract# is 303599.

STATE OF MISSISSIPPI COUNTY OF FORREST PERSONALLY appeared before, the undersigned authority in and for the aforesaid jurisdiction, Jerry Mills, D/B/AJCM Timber,whoac "knowledged that he is the Claimant in the

foregoingclaim and has stated uponhis oath that atl of the facts, matters and allegations therein stated in said claim are true and correct and are made goodfaith. in

J,[email protected]/, D/B/A JCM Timber ..."'~Sx., .......

5-.

SWORN ANDSUBSCRIBED TO BEFORE 1VIE, this

--

the I~ Bay ofApril,

200~.

r ~ -.. o"~ .x,2'S.EAL)

~¥ ~d~dl~,%~S ~×r.~ ~,'~P.C~~ ~007 NOTARY PUBLIC

. .:

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Date: 03/0712003 TexType: (A} Sales }ayer: Mills Jerry C Account: 021-70018-2 ,: J C M Timber Organization:Sole Owner Telephone: 501-989-2583 Physical Address: ,lng Address: FAX: 601-989-2563 52190 Hwy63 N Hwy 63 N County: Greene21 ~ton, MS39470 Richton, MS39470 Lien County: Greene21 TIN: 42-8045499 Period: January 1, 2000 thru December 31, 2001 ~xaminstion yourrecords, of made accordance Mississippi in with Law, indicates additionaltax due.Demand payment this amount, for of as Nnby the followingcomputation, hereby Is made: Taxpayer's Summaryof Tax Audit es Classifications ntract~r's "Fax3.50% 12-12-00 93,~92.00 12-12-01 2 7,~14.00 0.00 0.00 24-12-01

Mississippi State Tax Commission Officeof Audit& Compliance

,tel Sales .x Computations ~x at 3.50%

93.692.00 3,279.00

27,614.00 966.00

0.00 0.00

0.00 0.00

oral Tax Due /isat/owed Disc ~xcessCollections )iscount Claimed "ax Credit "ax Paidto State kddittonal Tax Due %nelly nterest (02/28/2003) Total Assessment kuditor;

3,279.00 0.00 0.00 0.00 0.00 3,279.00 0.00 0.00 3,279.00

966,00 0,00 0.00 0,00 0.00 966.00 0,00 0.00 966.09

0.00 0.00 0.00 0.00 0.00 0,00 0.00 0.00 0.00 Collected:

0,00 0.00 o.00 0.00 0.00 0.DO 0,00 0.00 0.00 " 4,245.00 0.00 4,245.00 0.00 4,245.00

JAMES MADISON J, 15-034

Ba]ance Due:

his audit hasbeen performed usingMississippi Laws passed the Mississippi by Legislature, Regulations promulgated the Commissioner, by Admini;rative rulingsand opinions Decisions theCourts were and by that applicable during years this auditperiod.Any the of futureauditswill becenucted the thenprevailing o~ laws,regulations decisions theninterpreted. and as

State Tax Commission,P.O. Box 1709,, Hattiesbur 9, MS39403-1709,Phone: 601-545-1261

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JERRYMILLS RECAPOF DEPOSITSAND RECEIPTS 1999 1001 RENT INCOME 4000 1999 INCOME LOGGING3EPOSITS LOANS JANUARY $ 17,651.87 $ 17,651.87 FEBRUARY $ 37,821.74 $ 28,229.42 $ (3,150.00) $ 41,074.39$ (4,390.00) MARCH $ 36,734.39 APRIL $ 79,043.09 $ 72,298.09 $ 72,298.09 $ 44,928.37 $ 44,778.37 MAY JUNE $ 72,626.80 $ 75,486.00 $ (1,577.20) 75,486.00 $ 106,914.02 $ 106,345.02 JULY $ AUGUST $ 85,125.75 $ 85,435.75 85,435.75 SEPTEMBER $ 183,720.56 $ 189,791.03 $ (2.000.00) $ 475,613.66 $ 428,479.58 OCTOBER NOVEM~3ER $ 366,759.41$ 402,197.01$ 49,800.00 DECEMBER $ 214,903.47 $ 262,274.08 $ 68,911.40 $ 1,720,843.13$ 1,754,040.61$ 107,594.20 $ 233,219.84 43010.99 ACCT- 1002 ACCT5002 0061-359-2 ACCT5002 RENT INCOME 4000 1001 CONTRACTLABOR 2000 INCOMELOGGING3EPOSITS LOANS WC PPCI'S JANUARY $ 190,759.26" $ 212,300.05 FEBRUARY $ 141,427.50 $ 142,875.35 MARCH $ 238,277.44 $ 284,440.69 APRIL $ $ 184,624.57 (26,586.00) $ MAY $ 227,062.37 $ 255,557.04 $ 213,628.51 $ 209,117.51 JUNE JULY $ 136,374.21 $ 245,967.11 $ 92,092.09 AUGUST $ 166,157.04 $ 166,1.57.03 $ 255,938.01 $ 255,938.01 $ 1,600.00 SEPTEMBER OCTOBER $ 314,020.91 $ 371,322.79 $ 179,455.71 NOVEMBER $ 179,455.71 $ 179,281.67 $ 230,771.96 DECEMBER $ 2,242,382.63$ 2,738,527.82$ (26,586.00) $ 93,692.09 tax penalty interest total $ $ $ $ 3,279.00 328.00 984.00 4,591.00

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JERRYMILLS RECAPOF DEPOSITSAND RECEIPTS 1999 RENT INCOME 4000 1001 LOANS 1999 INCOME LOGGtNG3EPOSITS 487O1.71 ACCT-1002 ACCT5002 0061-359-2 ACCT5002 4000 1001 CONTRACTLABOR RENT INCOME 2001 INCOMELOGGING3EPOSITS OTHER W C PITTS $ 163,010.13 $ 210 295.09 $ (38,498,16) JANUARY 404.05 FEBRUARY $ 185,404.05 $ 247 130 056.15 MARCH $ 130,056.15 $ $ 291 APRIL $ 168,962.65 956.65 MAY $ 171,914.50 $ 176 234.58 JUNE $ 201,006.57 $ 202 491.57 JULY 154 182.87 $ 152,176.19 $ AUGUST $ 295,211.99 $ 295 211.99 $ 12,000.00 SEPTEMBER $ 219,929.89 $ 226 429.89 $ 15,614.42 OCTOBER $ 415,778.95 $ 459 778.95 NOVEMBER $ 286,334.16 $ 328 034.16 DECEMBER $ 258,555.88 $ 291 624.67 $ 2,648,341.11 $ 3,013,700.62$ (38,4g&16) $ 27,614.42 tax 966 penalty 97 interest 174 total $ 1,237.00

Recap 1999 2000 $ 2001 $ $ 0 4,591.00 1,237.00 5,828.00

Total

12

Case 1:05-cv-00216-SGB
ate: 041021~003 06/16/2000 07/16/2000

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Actuarial Actual/360 Monthly Principal Reduction $2,683.03 $2,677.58 $2,701.79 $2,753.57 $2,751.11 $2,80t.74 $16,368.82 $2,801.32 $2,826.65 $2,922.08 $2,878.63 $2,926.26 $2,931.11 $2,977.51 $2,984.54 $3,011.52 $3,056.03 $3,066.38 $3,109.60 $35,491.63 $3,122.23 $3,150.46 $3,217.20 $3,208.03 $3,247.91 $3,266.40 $3,304.91 $3,325.82 $3,355.89 53,392.30 $3,416.90 $3,451.88 $39,459.93 $3,479.01 $3,510.46 $3,545.31 $10,534.78 $101,855.16

Page 13 of 19
Page 1

l"~hton

Bank & Trust Compa"
Principal: Entered Rate: Payment Amount: Outstanding Balance $99,17Z06 $96,494.48 $93,792.69 $91,039.12 $88,288.01 $85,486.27

unding Date: irst Payment Date:

Compounding: ¯ Period: Payment Schedule: Payment Amount $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $21,445.56

$101,855.09 10.500% $3,574.26 Equity Built $2,683.03 $5,360.61 $8,042.40 $10,815.97 $13,567.08 $16,368.82

ayment umber 1 2 3 4 5 6 2000 7 8 9 10 l] 12 13 14 15 16 17 18 2001 19 20 21 22 23 24 25 .26 27 28 29 30 2002 31 32 33 2003

Payment Date 07116/2000 08/16/2000 09/16/2000 10/16/2000 11/16/2000 12/16/20o0 Totals: 0111612001 02/16/2001 03/16/2001 04/16/2001 05/]6/2001 06/16/2001 07/16/2001 08/16/2001 09/1612001 10/16/2001 ) )/16/2001 12/16/2001 Totals: 01[16/2002 02/16/2002 03/16/2002 04/16/2002 05116/2002 06/16/2002 07/16/2002 08/16/2002 09/]6/2002 10/16/2002 11/16/2002 12/16/2002 Totals: 01/16/2003 02/16/2003 03/16/2003 Totals: Grand Totals:

Elapsed Days 30 31 31 30 31 30

Interest Amount $891.23 $896.68 $872.47 $820.69 $823.15 $772.52 $5,076.74 $772.94 $747.61 $652.18 $695.63 $648.00 $643.15 $596.75 $589.72 $562.74 $518.23 $507.88 $464.66 5;7,399.49 $452.03 $423.80 $357.06 $366.23 $326.35 $307.86 $269.35 $248.44 $218.37 $181.96 $157.36 $122.38 $3,431.19 $95.25 $63.80 $28.95 5188.00 $16,095.42

31 31 28 31 30 31 30 31 31 30 31 30

$3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $42,891.12

$82 684.95 $79 858.30 $76 936.22 $74 057.59 $71 131.33 $68 200.22 $65 222.71 $62 238.17 $59 226.65 $56 170.62 $53 104.24 $49 994.64

$19,170,14 $21 996.79 $24 918.87 $27 797.50 $30 723.76 $33 654.87 $36 632.38 $39 616.92 $42 628.44 $45 684.47 $48 750.85 $51 860.45

3I 31 28 31 30 31 30 31 31 30 31 30

$3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 $3,574.26 542,891.12

$46,872.41 $43,721.95 $40,504.75 $37,296.72 $34,048.81 $30,782.41 $27,477.50 $24,151.68 $20,795.79 $I7,403.49 $]3,986.59 $10,534.71

$54 982.68 $58 133.14 $61 350.34 $64 558.37 $67 806.28 $71 072.68 $74 377.59 $77 703.4] $81 059.30 $84 451.60 $87,868.50 $91,320.38

31 31 28

$3,574.26 $3,574.26 $3,574.26 $10,722.78 $117,950.58

$7,055.70 $3,545.24 -$.07

$94,799.39 $98,309.85 $101,855.16

This amortization scheduleis provided ),ou for yourconvenienc~ amortization inchtdeestimatesbaseduponh~formadon to The may prot,Med you. Actualtern~ of by credit offered by us mayva~fromthis amo~ization schedule.Theoutstanding balance s/townabove will varyfromyouractualoutstanding balance to tile Bank owed becattse the Kmbtg paymettts. of of

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Richtou
Today's Date Funding Date First Payment Date LoanStructure Number Payments of
COLLATERAL:

ank & Trust Company M ~ Office
Funding Date June 16, 2000 April 02; ~0~3- i5~-r{6d-C~)ention I June 16, 2000 [ Compounding Method March3 l, 2003 t Input Rate Convention Single Pay I Initial Input Rate 1 PaymentJ APR . Actual Day/360 Actuarial Simple Rate 10.356 10.500

REPAYMENT PROVISIONS: Princil~al andinterest are dueandpayableonMarch 2003. 31, PROCEEDS: CAS~ TO BOrCROW~R TOTAL PROCEEDS TOTAL FINANCED PREPAIDS INSURANCE: NONE LOAN AMOUNT: AMOUNT FINANCED: INTEREST TOTAL TOTAL CHARGE: CHARGE: $32,815.72 $32,815.72 $134,670.8t $IOl,855.09 $101,855.09 $0.00 $101,855.09 $101,855.09

FINANCE

OF PAYMENTS:

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Date 03/07/2003 TaxType: (A) Sales Ta2(payer:Mille Jerry Account: 021-70018-2 DBA: J C M Timber Onaanization:Sole Owner Telephone: 601-989-2563 FAX: 601-989-2563 42190 Hwy 63 N 52190 Hwy 63 N County; Greene21 Richton, MS39,I70 Richlon, MS39470 Lien County: Greene 21 Audit Period: January 1, 2000 thru December31, 2001 TIN: 42-8045499 Anexeminalion your records,mode accordance M;ssiseippl of In with Law,indicatesadditionaltax due.Demand payment this amount, for of as shown the f~llowingcomputation, hereby by le made:

Mississippi State Tax Commission Office of Audit & Compliance Taxpayer's Summam] Tax Audit of

f

Sale=Classifications

12-12-00 g3,692.00

12-12-01 27,614.00 0.00 0.00

24-12-01

Cont.rsctor's Tax 3.50%

TotalSale:= Taz Computations Tax at 3.50%

93.692.00 3,279.00

"27,614.00 966.00

0.00 0.00

0.00 0.00

Total Tax Due Disallowed Disc Excess Collections Discount Claimed Tax Credit TaxPeid to State Additim'~al Tax Due Penalty Inlerest (02/28/2003) Total Assessment Auditor:

3,279.00 0,00 0.00 0.00 0.00 0.00 3,279.00 0.00 0.00 3,27S.00

966.00 0.00 0.00 0.00 0.o0 0,00 966.00 0.00 0.00 ¯ 966.00

0,00 0.00 0.00 0.00 0.00 0.00 0.00 0,00 0.00 0.O0 Collected:

0.00 0.00 0.00 0,00 0.00 0.00 0,00 0.00 0,00 0.00' 4,245.00 0.00 0,00 4,245.00 0.00 4,245.00

JAMES MADISON J. 15-034

Balance Due:

"[his audit hasbeen performed usingMississippiLaws passed the MississippiLegislature, Regulations by promulgated ~h~Commisslone|, by Admimstt;~tive rulingsand opinions Decisions the Courts were and by that applicable during years Ibis audit, period.Any Ihe of futureoudilswill beconducked the thenprevailing o~ l~ws.regulations decisiot~s thenInterpreted. and as

State Tax Commission,P.O. Box 1709,, Ha{'tlesburg;

MS39403.1709, Phone: 601-545-1261

15

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Page 16 of 19

~'~

~

Tax Auditor

MISSISSIPPI STATETAX cOMMISSION

Case 1:05-cv-00216-SGB

Document 9-2

Filed 06/10/2005

Page 17 of 19

JERRYMILLS RECAPOF DEPOSITS AND RECEIPTS 1990 4000 1001 INCOME LOGGINGDEPOStTS LOANS $ 17,651.87$ 17,651.87 $ 37,821.74$ 28,229.42$ (3,150.00) $ 36,734.39$ 41,074.39$ (4,390.00) $ 79,043.09$ 72,298.09 $ 72,298,O9 $ 44,928.37 $ 44,77&37 $ 72,626.80 $ 75,486.00 $ (1,577.20) 75,486.00 $ 1051914.02 $ 106,345.02 $ 85,125.75$ 85,435.75 $ 85,435.75 $ 183,720.56$ 189,791.03 $ (2,00&00) $ 475,513.66$ 428,479.58 $ 366,759.41$ 402,197,01$ 49,800.00 $ 214,903.47$ 262,274.08$ 68,911.40 $ 1..720,843.13 $ 1,754,040.81 $ 107.594.20 $ 233,219.84 43010.99 ........ ACCT-1O02 ACCT 5002......... 0061-359-2 ACCT 5002 RENTINCOME 4000 1001 CONTRACT LABOR 2000 INCOMELOGGING3EPOSITS LOANS W C PITTS JANUARY $ 190,759.26 $ 212,300.05 FEBRUARY $ 141,427.50 $ 142,875.35 MARCH $ 238,277.44 8 284,440.69 APRIL $ $ 184,624.57 $ (26,586.00) $ 227,062.37$ 255,557.04 MAY JUNE $ 213,628.51 $ 209,117.51 $ 136,374.21 $ 245.967.11 JULY $ 92,092.09 $ 166,157.04 $ 166,18'7.03 AUGUST $ 255,938.01$ 255,938.01 $ 1,600,00 SEPTEMBER $ 314,020.91$ 371,322.79 OCTOBER $ 179,455.7~$ 179,455.71 NOVEMBER $ 179.281.67$ 230,771.96 DECEMBER $ 2,242,382.63 $ 2,73B,527.82$ {26,586.00) $ 93,692.09 RENT INCOME 1999 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER tax penaI~ interest ~tal $ $ $ $ 3,279.00 328.00 984.00 4,591.00

Case 1:05-cv-00216-SGB

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Filed 06/10/2005

Page 18 of 19

JERRYMILLS RECAPOF DEPOSITS AND RECEIPTS 1999 4000 RENT INCOME 1001 1999 INCOMELOGGIN(33EPOSITS LOANS 48701.71 ACCT- 1002 ACCT5002 0061-359-2 ACCT5002 RENT INCOME 4000 1001 CONTRACT LABOR 2001 INCOMELOGGINGDEPOSIT$ OTHER W C PITTS JANUARY $ 163,010.13 $ 210,295.09 $ (38,498.16) FEBRUARY $ 185,404.05 $ 247,404.05 MARCH $ 130,056.15 $ 130,~]55.15 APRIL $ 168,962.65 $ 291,958.65 MAY $ 171,914.50 $ 176,234.58 JUNE 202,491.57 $ 201,008.57 $ JULY $ 152,176.19 $ 154,182.87 AUGUST $ 295,211.99 $ 295,211.99 $ 12,000.00 SEPTEMBER $ 219,929.89 $ 226,429.89 $ 15,614,42 OCTOBER $ 415,778.95 $ 459,778.95 NOVEMBER $ 286,334.16 $ 328,034.16 DECEMBER $ 258,555.88 $ 291,624.67 $ 2,648,341.11 $ 3,013,700.62 $ (38.498.16) $ 27,614.42 tax 966 penat~ 97 interest 174 total $ 1,237.00

Recap 1999 2000 2001 Total 0 4,591.00 1,237.00 5,82&00

18

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Page 19 of 19

United States Department of Agricnlture

Forest Service

National Forest in Mississippi

100 West Capitol Street Shire! i 4] Jackson, MS39269 601-965-4391

File Code: 2450 Date: J'ttly

29, 2004

JCM Timber Company 4219 Highway 63 North Richton, MS39476 Re: Contract #,303599, Compartmnet 447, CkickasawhayRanger District

Dear Mr. Mills: This letter is to informyou of your newtermination date for the abovecontract as well as if any periodic payments are due and when. Your new termination date is 11/30/07. Your Irrevocable Letter of Credit must be updated to expire one year beyondyou're newtermination date, which wll] bo 11/30108. Your Periodic Paymentsare as follows: Midpoint paymentis due U26/06in the amount of $101,700, and your addkional paymentis due 7/16/07 in the amount$217, 900.00. Again, you are entitled to those out-of-pocket expenses specifically outlined in provision BT6.02 (c) of your contract. It does not include such items as attorney fees, lost profit, or other anticipatory losses. The procedure for submitting a claim is found in provision BT9.21. Mr. Mills I have your original claim, if'you want to submita revised claim that's morein line with BT6.02(c) you can, should you decide to do so, send it back to meten calendar days after receiving this letter so I can get your claim processed as soon as possible. I gave you a copy of the A~eement Modif~ your Contract (FS-2400-9) the same day you hand delivered it to to
o~ce.

Sincerely,

District Ranger, Chickasawhay Jolm Fuquay, FSR Case File