The contract in such cases will be prepared on Form 202-b upon 

 verbal or other informal application. The contract will contain the 

 following special clause : 



''All timber cut under this agreement will be used by the purchaser 

 for domestic purposes exclusively on his homestead or farm. None of 

 the timber cut will be disposed of for a money or other consideration, 

 or in exchange for labor, services, or commodities of any character 

 furnished in connection with its cutting, removal, or manufacture. 

 If this clause is violated in any particular this agreement will be 

 terminated; and the purchaser hereby agrees to pay the United 



States for all timber cut hereunder at the rate of $ per M bd. 



ft. (or other unit)." 



The penalty rate will be the maximum price for such material on 

 the Forest concerned fixed by the Secretary for the current year. 



Paragraph 4 on page 60, with marginal heading " Report of timber 

 sold and cut/' is hereby amended by adding the following sentence: 



The amount and value of the timber sold and cut, respectively, 

 in private sales to settlers and farmers under the terms of Regulation 

 S-9 will be reported separately. 



The last paragraph on page 67 of the Instructions, with marginal 

 heading "To whom granted or refused/' is hereby amended by 

 adding the following sentence : 



Homestead settlers and farmers who are refused free use on the 

 ground that they may reasonably be required to purchase should be 

 informed that they may purchase timber for domestic use on their 

 homesteads or farms at cost, under the terms of Regulation S-9. 



HENRY S. GRAVES, 



Forester. 



[No. 148J 



o 



