SECTION 35:2-3-11. Schedule of fees for forest tree and shrub seedlings from the Forest Regeneration Center

(a)   Pursuant to Title 2 O.S. § 16-3, in order to carry out reforestation purposes, the Oklahoma Department of Agriculture, Food, and Forestry operates a Forest Regeneration Center that grows forest tree and shrub seedlings for distribution to landowners.

(b)   The following is a method to determine annual fees for categories of seedlings, including but not limited to hardwoods and miscellaneous conifers, southern pines, and containers, purchased from the Forest Regeneration Center for reforestation purposes:

(1)   The following calculations shall be made for each category prior to determining the prices for seedlings:

(A)   Estimate the percentage of the previous three (3) years' average input costs for growing trees in each category using the best professional judgment of the Department.

(B)   Use actual seedling distribution data to calculate the three (3) year average of number of trees sold.

(C)   Estimate the percentage of the previous three (3) years' average revenues generated from each category using the best professional judgment of the Department.

(2)   Using the inputs from subsection (1), determine the difference between the average input cost per tree and the average revenue per tree to find the three (3) year average cost per tree.

(3)   Estimate the total production for the upcoming year through evaluation of factors that include but are not limited to:

(A)   Actual sales by species for the past three (3) years.

(B)   Recent purchase trends.

(C)   Cost-share program activity.

(4)   Calculate projected seedling revenue based on averages from subsection (1) above applied to the current planting plans with projected sales of a minimum of eighty percent (80%) of stock.

(A)   Calculate projected seedling revenue by applying calculating average three (3) year prices against future or three (3) year average sales.

(B)   Calculate percentage estimated price adjustment necessary to reach self sufficiency of the program using total projected revenue against three (3) year rolling average of costs.

(5)   Select the minimum of eighty percent (80%) target projected sales percentage using all available information, sales data and best professional judgment. Then apply the needed percentage price adjustment against projected sales to approach self-sufficiency. In order for Oklahoma's seedling prices to remain competitive, price adjustments shall in no case exceed fifteen percent (15%) per year.

(b)   The Department may negotiate prices on any advance contract orders greater than 150,000 trees, so long as the price is not lower than estimated cost for production.

(c)   In the event that a fiscal year results are within ten percent (10%) of the self sufficiency target, the Department may defer a price increase, so long as estimated input costs and the planting plan are not expected to deviate significantly from the previous year.

(d)   Delivery charges for large seedling orders shall be the estimated actual costs to the Department.

(e)   Shipping charges for seedling orders shall be based upon projected actual shipping costs for the upcoming year.

[Source: Added at 10 Ok Reg 349, eff 11-10-92 (emergency); Added at 10 Ok Reg 1959, eff 5-27-93; Amended at 11 Ok Reg 623, eff 11-15-93 (emergency); Amended at 11 Ok Reg 2569, eff 6-13-94; Amended at 14 Ok Reg 1119, eff 12-2-96 (emergency); Amended at 14 Ok Reg 1235, eff 5-12-97; Amended at 15 Ok Reg 489, eff 9-25-97 through 7-14-98 (emergency); Amended at 16 Ok Reg 2105, eff 6-25-99; Amended at 19 Ok Reg 1251, eff 5-28-02; Amended at 21 Ok Reg 723, eff 4-26-04; Amended at 27 Ok Reg 5, eff 8-6-09 (emergency); Amended at 27 Ok Reg 1101, eff 7-1-10]

Note

EDITOR’S NOTE: This emergency amendatory action expired without being superseded by a permanent action. Upon expiration of an emergency amendatory action, the last effective permanent text of the Section is reinstated. Therefore, on 7-15-98 (after the 7-14-98 expiration of this emergency action), the text of 35:2-3-11 reverted back to the permanent text that became effective 5-12-97, as was last published in the 1997 OAC Supplement, and remained as such until amended again by permanent action on 6-25-99.