143 



(b) Timber purchasers have used chese very sales to 

 obtain loans from Che government Cor mill improvements and 

 modernization to remain In business. 



(c) The government's long delay in making the timber 

 availsU>le exposes the government to substantial claims for timber 

 sale contract damages. 



(d) The long delay in releasing a purchaser's federal 

 timber sales has hindered timber purchasers' ability to repay 

 government loans. 



(e) Offsetting a purchaser's potential contract damage 

 claims against its government guaranteed loan obligations is in 

 the purchaser's and government's best interests. 



SECTION 3. AUTHORITY OF SECRETARY TO ELIMINATE CONTRACT DAMAGES 



(a) The Secretary is authorized to enter into an 

 agreement with a requesting timber purchaser that would require 

 the purchaser to relinquish any and all claims for damages 

 related to all of a purchaser's timber sale contracts purchased 

 prior to fiscal year 1992 in exchange for the United States fully 

 retiring a purchaser's obligation on a government guaranteed 

 loan, including all principal, interest. £ees and othor chargee. 



