SAMPLE “NOTICE OF VIOLATION” LETTER

December 1, 2008

Big Bear Logging

1010 Skyline Drive

Tillamook, OR 97141

VIOLATION: Sale Contract:342-08-248

Sale Name:Spider Salvage

A bill dated August 12, 2008 required a payment in the amount of $4,552.83 be paid by September 12, 2008. This payment has not been received at this time. However, if you have recently made the payment to this account please disregard this notice.

You are presently in violation of the contract and directed to make payment within 10 days of the date of this letter.

Payment of $4,552.83 should be made to:

Department of Forestry, Unit 12, P.O. Box 4395, Portland, OR 97208-4395.

Sincerely,

Freedom Martinmaas

Revenue Collection Specialist

State Forests Division

Desk: (503) 945-7355

208248:fm

CC: Tillamook District

Finance

TLC Federal Credit Union

SAMPLE “NOTICE OF VIOLATION” LETTER

December 15, 2006

Olympic Forest Products

985 NW 2nd Street

Kalama, WA 98625

VIOLATION:Sale Contract: 341-06-53

Sale Name: Steeple Chase

Performance Bond No.: FS4932008

Pursuant to Section 1560 of this contract, notice is given that you are violating terms of this contract in that Project No. 1, sale access road construction, road improvement and landing constructions has not been completed, as required by Section 2620.

You are directed to complete Project No. 1 by December 31, 2006. Failure to complete work as directed may result in suspension of operations.

State may also take further action to recover damages, including use of any payment deposits and filing claim with surety.

Please contact our district office for further instructions.

Sincerely,

Nancy Hirsch

Asset Manager, State Forests Program

Desk: 503-945-7351

Fax 503-945-7376

NH:fem

106053

Cc: Astoria District

Northwest Oregon Area

Great American Insurance Co.

SAMPLE “NOTICE OF VIOLATION” LETTER

November 3, 2006

Olympic Forest Products

985 NW 2nd Street

Kalama, WA 98625

VIOLATION:Sale Contract 341-06-53

Sale Name: Steeple Chase

Performance Bond No. FS 4 93 20 08

Pursuant to Section 1560 of this contract, notice is given that you are violating terms of this contract in that Project No. 2, Viewpoint quarry development, has not been completed, as required in Section 2620.

You are directed to complete Project No. 2 by December 31, 2006. Failure to complete work as directed may result in suspension of operations.

State may also take further action to recover damages, including use of any payment deposits and filing claim with surety.

Please contract our district office for further instructions.

Sincerely,

Nancy Hirsch

State Forests Program Asset Manager

Desk: 503-945-7351

Fax: 503-945-7376

NH:fm

Enclosure

106053

cc:Astoria District

Northwest Oregon Area

Great American Insurance Co.