DEPARTMENT OF NATURAL RESOURCES

                        FOREST MANAGEMENT DIVISION

                            COMMERCIAL FORESTS


(By authority conferred on the department of natural resources by  section  1 
of Act No. 94 of the Public Acts of 1925, as amended, and sections 9 and  252 
of Act  No. 380  of  the   Public   Acts   of   1965,   as   amended,   being 
SS320.301, 16.109, and 16.352 of the Michigan Compiled Laws)


R  299.2601   Application requirements for listing land; "act" defined.
  Rule 1. (1)  An  application  for  listing  land  shall  be   on   a   form 
prescribed by the department of natural resources.
  (2) An application shall be made under oath and shall be notarized.
  (3) An application shall be prepared for each county covering  all  land in 
that county for which listing is desired.
  (4) Land applied for shall be considered for listing as  it  is   currently 
and  legally  described  on  ad  valorem   assessment   and   tax   rolls.
Consolidation of contiguous descriptions in 1 section into  a  single  larger 
description shall be done where possible.
  (5) An application shall fully describe each tract and shall include all of 
the following information:
  (a) The name of the county.
  (b) Political township.
  (c) Town, range, section, and section subdivision.
  (d) School district in which the tract is located.
  (e) Exceptions or partial descriptions.
  (f) Net acreage applied for. Net  acreage   shall   include   rights-of-way 
covered by easements, but shall not include rights-of-way deeded to others or 
tracts owned in fee title by others.
  (6) Legally redescribing land to exclude areas not eligible for  listing is 
permitted if the remainder of   the   land   is   apparently   eligible   for 
listing.
  (7) Applications shall be signed, dated, notarized,  and   postmarked   not 
later than June 1 to be considered for listing in the following tax  year.
Applications that are signed, dated, notarized, or postmarked  after  June  1 
shall be carried forward for consideration in the following tax year.
  (8) As used in these rules, "act" means Act No. 94 of the  Public  Acts  of 
1925, as amended, being S320.301 et seq. of the Michigan Compiled Laws.

  History: 1979 AC; 1987 AACS.


R  299.2602  Rescinded.

  History:  History: 1979 AC; 1987 AACS.


R  299.2603   Listing certificate.
  Rule 3. (1) Land  approved  for  listing  by  the   department   shall   be 
recorded on a listing certificate that will be sent to  the   applicant   for 
signature. A listing certificate shall be  prepared  for   each   county   in 
which the applicant owns land approved for listing.
  (2) The signed listing certificate, in duplicate, and listing fee  shall be 
promptly returned to the department by the applicant.  The   department,  not 
later than December 31, shall send the signed listing   certificate   to  the 
appropriate county register  of  deeds  and  shall  notify  the   appropriate 
township supervisor of land approved for listing.
  (3) Land approved for listing shall  be  removed  from   the   ad   valorem 
assessment and tax roll for the following tax year and shall be placed  on  a 
commercial forest specific assessment and tax roll for taxation  at  the rate 
specified in section 5 of the act.

 History: 1979 AC; 1987 AACS.


R  299.2603a   Return of portions of fees, taxes, and  state  payments  to
  department of treasury for credit to state school aid fund; time.
  Rule 3a. Those portions of withdrawal tax  penalties,  withdrawal  stumpage 
fees, yield taxes, landowner specific taxes, and state payments which must be 
returned to the state treasury to the credit of the  state  school  aid fund, 
pursuant to section 7a of the act, shall be returned  to  the  state treasury 
by the appropriate township or county treasurer  not  later  than April 1  of 
the year following the year of their receipt.

  History: 1987 AACS.


R  299.2604   Land; eligibility for listing.
  Rule  4.  (1)  To  be  considered  for  listing,  land   shall   meet   the 
requirements for character and use prescribed in sections 1a, 2,  and  10  of 
the act.
  (2) A tract of less than 40 acres is not eligible for listing unless  it is 
contiguous to land already listed by the same applicant or  being  listed  by 
the same applicant. However, a tract of   less   than   40   acres   may   be 
eligible if it is a fractional survey description, or if its  net   area   is 
less than 40 acres because of rights-of-way deeded to others, and if it is a  
reasonable  and  economic   management   unit   primarily   valuable   as   a 
commercial forest.
  (3) Land within the boundaries of a city or village is  not  eligible   for 
listing.
  (4) Land zoned contrary to the intent of the act  is   not   eligible   for 
listing.
  (5) Leasing and exploration for minerals are permitted   on   land   listed 
under the act. Land for which application is being made for listing  which is 
subject to mineral leases or upon  which  exploration  is  occurring  may  be 
considered for listing if otherwise eligible.
  (6) If an owner owns both surface and mineral rights and   the   owner   or 
his or her contractors undertake commercial mineral  extraction,  the   owner 
shall withdraw the affected land from listing.
  (7) If surface and mineral rights are separately owned  and   the   mineral 
owner or his or her contractors undertake  commercial   mineral   extraction, 
the surface owner shall withdraw the affected land from listing.
  (8) It is the responsibility of the owner or owners of   listed   land   to 
advise the department of commercial mineral extraction  operations   and   to 
initiate withdrawal of the listed land affected.
  (9) When commercial extraction of oil or gas occurs, the  affected  land to 
be withdrawn shall be all listed land which is shown by  the   supervisor  of 
wells to be within the drilling unit, pursuant  to   Act   No.  61   of   the 
Public Acts of 1939, as amended, being  S319.1  et  seq.  of   the   Michigan 
Compiled Laws.
  (10) When commercial metallic or nonmetallic  mineral  extraction   occurs, 
the affected land to be withdrawn shall include all of  each  listed  40-acre 
description, fractional description, government  lot,   or   its   equivalent 
over, upon,  within,  or  under  which  mining   operations   occur.   Mining 
operations, in addition to the extraction of minerals or  ores,  include  the 
utilization of an area or tract of land for any of the following purposes:
  (a) Pits.
  (b) Openings.
  (c) Shafts.
  (d) Processing facilities.
  (e) Stockpiling areas.
  (f) Water and tailings basins.
  (g) Shipping facilities.
  (11) If extraction results in the retention of land under  listing  that by 
itself is ineligible for listing, the  landowner  shall  also  withdraw  this 
ineligible land from listing.
  (12) The posting of  a  mineral  exploration  site  on   listed   land   to 
prohibit public access on that site is permitted if  necessary   for   public 
safety. Posting shall be restricted only to the area  needed  for   efficient 
and safe operation of the exploratory site and shall  be   limited   to   the 
time during which exploration occurs.
  (13) Tree plantations, to be  eligible  for  listing   and   if   otherwise 
eligible, shall have survived through the first 2   growing   seasons   after 
planting and, at the time of application, shall   carry   sufficient   forest 
growth of suitable character and distribution to assure that   a   stand   of 
merchantable timber will be developed within a reasonable time.
  (14)  Any  40-acre  description,  fractional    description,    or    other 
description just  meeting  the  minimum   acreage   eligibility   requirement 
specified in subrule (2) of this rule is not eligible for   listing   if   it 
contains 25% or more nonstocked but productive land. This  rule  applies   to 
each  such  description  even  though  it  may  be   contiguous   to    other 
descriptions already listed by the same applicant or being  listed   by   the 
same applicant.
  (15)  Any  40-acre  description,  fractional    description,    or    other 
description just  meeting  the  minimum   acreage   eligibility   requirement 
specified in subrule (2) of this rule is not eligible for   listing   if   it 
contains 50% or more nonproductive land unless it is contiguous to, and is an 
integral part of, a larger managed  forest  already  listed   by   the   same 
applicant or being listed by the same applicant.
  (16) Land managed for Christmas  trees  or  for   forest   crops   normally 
harvested at an age of 10 years or less is not eligible for listing.

 History: 1979 AC; 1987 AACS.


R  299.2605   Criteria to determine compliance with act.
  Rule 5. Land listed as commercial forest shall  comply   fully   with   the 
requirements of the act and all of the following provisions:
  (a) The owner of forest land listed under the act shall  manage  that  land 
consistent with the purposes expressed in sections 2 and 10 of the act.
  (b) Listed land shall not  be  used  or  obligated   for   any   commercial 
purpose other than production of forest products and shall not be  managed in 
a manner detrimental to the growth and development of  those  products.
  (c) Noncommercial uses compatible with good forest  management   and   full 
productivity of listed land are permitted.
  (d) Easements may be granted across listed land if  the   effect   on   the 
productivity of the listed land is minimal. The landowner  shall  advise  the 
department of prospective easements across listed land.
  (e) The only buildings or improvements  permitted  on   listed   land   are 
those used exclusively for the conduct  of   commercial   forest   management 
operations.

 History: 1979 AC; 1987 AACS.


R  299.2605a   Public use of listed land.
  Rule 5a. (1) Listed land shall be open to the  public   for   hunting   and 
fishing. Listed land shall not be posted in  any  manner   to   restrict   or 
infer restriction of entry for hunting and fishing, except as provided  in  R 
299.2604(12) and subrule (4) of this rule. Any act by an owner of listed land 
which is intended to  deny  or  inhibit  access  for   public   hunting   and 
fishing, except as provided in R 299.2604(12)  and  subrule   (4)   of   this 
rule, shall preclude listing of  the  land  or,  if   listed,   may   require 
withdrawal of the land from listing if not corrected by the owner.
  (2) The owner of listed land may restrict,  through   posting,   activities 
other than public hunting and fishing.
  (3) Fences and gates do not disqualify land from listing   if   the   owner 
allows public entry for hunting and fishing.
  (4) The owner of listed land may restrict public access  for  hunting   and 
fishing during active commercial logging periods   on   listed   descriptions 
for which cutting permits have been issued and are in effect.

  History: 1987 AACS.


R  299.2606   Harvest of forest products.
  Rule 6. (1) Commercial harvest of forest products from listed land shall be 
limited to descriptions,  species,  and   forest   products   identified   in 
cutting permits which are issued by  the  department   before   cutting   and 
which are in effect at the time of cutting.
  (2) A request for a cutting permit shall be made  on   a   form   available 
from the department and shall be  submitted  before   forest   products   are 
harvested from listed land.
  (3) A cutting permit is not required for  noncommercial  timber  management 
operations where no merchantable forest  products  are   cut,   sold,   given 
away, utilized, removed, or destroyed.
  (4) Cutting permits shall be  issued  for  1  year.   Extensions   may   be 
granted by the department with the understanding that stumpage rates  will be 
reviewed and adjusted if necessary upon each request for extension.
  (5) It is  the  responsibility  of  the  permit  holder   to   notify   the 
department of any change in the descriptions, species,  class  of   material, 
units of measure, or other terms of the permit.   Upon   such   notification, 
the department may amend the permit.
  (6) The removal of forest products from more than l  description  within  a 
township may be covered by a master  cutting  permit  for  that  township.
Master cutting permits shall include  the  same   requirements   as   regular 
permits and shall include all  descriptions  in  that   township   on   which 
cutting will occur.
  (7) Cutting permits shall be issued in such a manner  that  the  department 
can maintain control over the descriptions covered and be   able   to   audit 
forest products removed from those descriptions.
  (8) The department shall send a copy of each cutting  permit   and   permit 
supplement to the appropriate township treasurer at the time of  issuance.

 History: 1979 AC; 1987 AACS.


R  299.2607   Remittance report.
  Rule 7. (1) Semiannual remittance reports as required by   section   9   of 
the act shall be submitted by the owner of listed land on a form  provided by 
the department. A report shall be identified as either intermediate  or final.
  (2)  A  final  report  shall  include  all   forest   products   previously 
unreported that have been cut under that permit. Further cutting shall not be 
done under that permit.
  (3) Semiannual reports shall be submitted while a permit   is   in   effect 
even though forest products have not been cut during the reporting period.

 History: 1979 AC; 1987 AACS.


R  299.2608   Withdrawal of listed land.
  Rule 8. (1) When an owner desires to withdraw all or part of  his  or   her 
listed land, he or she shall notify the department,  in   writing,   of   the 
descriptions to be  withdrawn.  If  the  withdrawal  will   result   in   the 
retention of listed land that by itself is  ineligible   for   listing,   the 
department shall also  require  withdrawal  of  that   ineligible   land   in 
addition to the land contained in the initial withdrawal application.
  (2) The department shall send the  applicant   a   withdrawal   certificate 
prepared in duplicate and  indicating  the  withdrawal   fees   computed   in 
accordance with  section  7  of  the  act.  Upon  receipt   of   the   signed 
withdrawal certificate in duplicate, together with  the  required  withdrawal 
fees, the department shall certify the withdrawal as provided in section 7 of 
the act. The date of this certification shall be the effective date   of  the 
withdrawal.
  (3) The withdrawn land shall be subject to the specific tax  and   not   to 
the ad valorem property tax in the tax year in which it is withdrawn.

 History: 1979 AC; 1987 AACS.



R  299.2609   New rates of fees or taxes.
  Rule 9. (1) New rates of fees or taxes or changes  in  their   distribution 
enacted into law shall become effective  on  the  effective   date   of   the 
amending act.
  (2) New rates shall apply to  the  entire  tax  year   during   which   the 
amending act becomes effective.  However,  if  the   amending   act   becomes 
effective after December 1, the new rates shall not  become  effective  until 
the next tax year.
  (3) If land is withdrawn from listing during a year that  an  amending  act 
becomes effective and is  withdrawn  before  the  effective   date   of   the 
amending act, then the old rates of withdrawal fees,  annual  specific   tax, 
and state payment shall apply.

 History: 1979 AC; 1987 AACS.



R  299.2610   Transfers of title.
  Rule 10. (1) Transfer of title  does  not  alter  the   listing   if   land 
eligibility is unaffected and if the new owner wants the   land   to   remain 
listed. If the new owner does not want to continue the listing, the  owner of 
record shall be responsible for withdrawal of the  listing  before  the title 
transfer is completed.
  (2) The owner  of  record  shall  promptly  notify   the   department,   in 
writing, of a land sale or any other change in ownership of  listed  land.
  (3) A title transfer which creates a separately  owned  description   which 
does not meet eligibility requirements shall require   withdrawal   of   that 
description from listing.
  (4) When the state or other governmental agency is acquiring listed land by 
purchase, gift, donation, condemnation,  or  exchange,  that  land  shall  be 
withdrawn from listing by the owner of record before the  title  transfer  is 
completed.
  (5) When listed land is being acquired by another entity  whose   land   is 
exempted from ad valorem real property taxes pursuant to  the  provisions  of 
Act No. 206 of the Public Acts  of  1893,  as  amended,   being   S211.1   et 
seq. of the Michigan Compiled Laws,  the  land  shall   be   withdrawn   from 
listing by the owner of record before the title transfer is completed.

 History: 1979 AC; 1987 AACS.



R  299.2611   Trespass.
  Rule 11. The department is not responsible for the  protection  of   listed 
land against trespass upon forest products. If trespass occurs, the  owner is 
liable to the department for the yield tax  on  the  stumpage  value  of  the 
forest products removed, as though the cutting had been  done  under   permit 
from the department.

 History: 1979 AC; 1987 AACS.



R  299.2612   Rescission.
  Rule 12. The rules entitled "Rules and  Regulations  Concerning  Commercial 
Forest  Reserves,"  being  R  299.261  to  R  299.275   of    the    Michigan 
Administrative Code and appearing on pages 1925 to 1927 of the 1954 volume of 
the Code, are rescinded.

  History: 1979 AC.