Gbarpolu County: Concession area lies within Latitudes 7°8'24'' - 7°12'36'' North of the equator and Longitudes 10°11'24'' - 10°18'36'' West of the Greenwich meridian
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
Bargor & Bargor Enterprise shall comply with all legal requirements concerning chain of custody for timber in Liberia. It shall neither transport nor process any log or timber product (__) outside the chain of custody system.
Bargor & Bargor Enterprise shall conduct its operations in a manner that promotes sustainable development of forest resources and environmental protection. 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. Bargor & Bargor Enterprise 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. Bargor & Bargor Enterprise 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 protect these areas from damage or removal during operations. Bargor & Bargor Enterprise shall comply with all requirements for watercourse protection in the Liberia Code of Forest Harvesting Practices, and conduct all operations so as to reasonably minimize soil erosion, and prevent pollution of air, soil, and water.
Subject to the written approval of the Government, the Social Agreement (as called for under Regulation 105-07) and such conditions as the Government or Social Agreement may impose, Bargor & Bargor Enterprise may use free of charge any water found within the contract area and in the public domain within 5 kilometers of the contract area. However, Bargor & Bargor Enterprise may only use such water provided that it shall 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. Bargor & Bargor Enterprise's use of water must in no way result in environmental damage or creates other hazards.
The land rental bid is US$ 1.91 per hectare per year. The land rental bid payment is calculated by applying the land rental bid to all (and only) land that is used, either inside or outside of the concession area. Bargor & Bargor Enterprise shall first pay it prior to felling any trees and, after that, every year on the anniversary of the contract signing date. Bargor & Bargor Enterprise shall pay log stumpage, annual contract administration, area, coupe inspection, and forest product fees to the Government under Regulation 107-07, on Certain Forest Fees.
Bargor & Bargor Enterprise shall complete the Social Agreements required under Regulation 105-07. The Social Agreements, once attested to by the Forestry Development Authority, then become part of the contract and, if breached, are treated like a breach of the contract.
Bargor & Bargor Enterprise shall give preference to competent and qualified ECOWAS (Economic Community of West African States) citizens in the selection of employees to conduct its contractual operations, and is not to import unskilled labor from outside the ECOWAS nations
Protections or benefits for employees, dependents, or others
Bargor & Bargor Enterprise shall follow internationally recognized, modern safety precautions in all activities and shall comply with written safety instructions supplied by the Government. Bargor & Bargor Enterprise 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)
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 Bargor & Bargor Enterprise agrees to respect those rights. In addition, the Government reserves the right to, among other things, access, or to allow others access, to the contract area for the purpose of exploring for or exploiting minerals or other substances or any reasonable investigation, provided Bargor & Bargor Enterprise's operations and activities shall not be unduly interfered with or its rights prejudiced. If its 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 Bargor & Bargor Enterprise's operations and activities shall not be unduly interfered with or its rights prejudiced.
Bargor & Bargor Enterprise shall identify areas requiring special measures for the protection of cultural resources in the annual operational plan. It shall describe these special measures and protect these areas from damage or removal during its operations.
Bargor & Bargor Enterprise is granted rights concerning construction of infrastructure by Section 18.8 of the National Forestry Reform Law of 2006, and shall comply with all laws governing construction, maintenance, and the use of improvements. Certain improvements require authorization from the Government. Bargor & Bargor Enterprise shall ensure that all infrastructure and works installed in relation to the contract comply with the Liberia Code of Forest Harvesting Practices.
All infrastructure shall revert to the Government upon termination of the contract and shall be left in safe running order
Bargor & Bargor Enterprise shall allow the Government and public to use, free of charge, any roads constructed, provided the use does not interfere with operations. Bargor & Bargor Enterprise shall allow the Government and public to use communication lines that it develops, subject to fair compensation and provided the use does not interfere with operations.
Bargor & Bargor Enterprise shall use public land outside the contract area only with written approval from the Forestry Development Authority. The Forestry Development Authority shall not unreasonably deny the right to use such land. Bargor & Bargor Enterprise may use private lands with the permission of the land owner. If Bargor & Bargor Enterprise does not obtain the permission of the land owner, use and compensation of private lands 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, Bargor & Bargor Enterprise 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. Bargor & Bargor Enterprise 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. If Bargor & Bargor Enterprise uses private lands without permission of the land owner, the use must be necessary for Bargor & Bargor Enterprise’s activities and operations under the contract.
Bargor & Bargor Enterprise shall use all reasonable means to prevent encroachment by unauthorized persons in to the contract area, but it shall not employ or in any way use armed security guards for any purpose
Failure by Bargor & Bargor Enterprise 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 a 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 (an officer of the Forestry Development Authority who has been delegated the power and duty to administer the contract). The decision of the contracting officer shall be final and conclusive if within 45 days from receipt, Bargor & Bargor Enterprise fails to appeal the decision to an appropriate Liberian court.
Bargor & Bargor Enterprise shall not assign or 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 to consent to any transfer, except in compliance with Regulation 104-07, Section 71.
The contract may be terminated if Bargor & Bargor Enterprise commits 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 Government, (q) being convicted for violation of criminal statutes or civil standards, or other regulations for environmental protection, and (r) 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 Bargor & Bargor Enterprise, 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 unforeseen 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 fulfill 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 take all reasonable steps to make good, and resume compliance with, those obligations.
Bargor & Bargor Enterprise consents to the Government or a designated representative conducting reasonable inspections of the contract area and premises. Operations under the contract are subject to regular and routine monitoring. Bargor & Bargor Enterprise shall keep records to demonstrate compliance with the contract during the duration of the contract and for 5 years after the contract terminates. It shall provide a written report within 90 days after each annual operational plan, and keep the contracting officer (an officer of the Forestry Development Authority who has been delegated the power and duty to administer the contract) informed as to its operations and other contractual activities. The Government reserves the right to allow unscheduled third party and civil society monitoring of contract operations. Such monitoring organizations shall have access to all financial records, management plans and annual operational plans to facilitate monitoring activities, but the Government shall not extend access to such organizations until they agree in writing not to publish any proprietary information without Bargor & Bargor Enterprise's written consent.
If any statute or regulation referred to in the contract is amended, the contract shall be taken to refer to the newly amended statute or regulation. If the statute or regulation is repealed, the contract shall be taken to refer to the material that replaces the repealed act or regulation, as determined by the contracting officer (an officer of the Forestry Development Authority who has been delegated the power and duty to administer the contract).