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G-66 Governmental Regulatory Actions <br /> a. Risk <br /> Purchaser shall be responsible for any increased operating costs arising from any <br /> applicable foreign or domestic governmental regulation or order that does not cause <br /> Contract performance to become commercially impracticable or that does not <br /> substantially frustrate the purpose of the Contract. If impracticability or frustration <br /> results from Purchaser's failure to comply with this Contract, Purchaser shall remain <br /> responsible for payment of the total Contract Price notwithstanding the <br /> impracticability or frustration. <br /> b. Sale Area <br /> When portions of the sale area become subject to a domestic governmental regulation <br /> or order that will likely prevent timber harvest for a period exceeding six months,and <br /> the Purchaser has complied with this Contract,then: <br /> i. If forty percent (40%) or less of the sale area is affected by the <br /> governmental regulation or order,the City,at Purchaser's request,shall <br /> adjust the total Contract Price as set forth in paragraph (c)below. <br /> ii. If forty-one percent (41%) to seventy-four percent (74%) of the sale <br /> area is affected by the governmental regulation or order, and if so <br /> requested by the Purchaser in writing, the City shall adjust the total <br /> Contract Price as set forth in paragraph (c) below or terminate the <br /> Contract. Termination will discharge any unexecuted portion of the <br /> Contract. <br /> iii. If seventy-five percent (75%) or more of the sale area is affected by <br /> the governmental regulation or order, the City reserves the right to <br /> unilaterally terminate the Contract and thereby discharge any <br /> unexecuted portion thereof. If the City does not exercise this right,the <br /> City shall adjust the total Contract Price as set forth in paragraph (c) <br /> below if requested to do so by the Purchaser. <br /> c. Adjustment of Price <br /> When required by clause G-66 (b), the City shall adjust the total Contract Price by <br /> subtracting from the total Contract Price an amount determined as provided in this <br /> clause. The City shall cause the timber sale area acreage subject to governmental <br /> regulation or order to be surveyed. The City shall calculate the percentage of the total <br /> sale area acreage subject to the governmental regulation or order. The City shall <br /> multiply the total Contract Price by percentage obtained by dividing the timber sale <br /> area subject to regulation or order by the total sale area acreage. No adjustment will <br /> be made for variation in species, value, costs, or other items. A reduction in total <br /> Contract Price terminates all of the Purchaser's rights to purchase and remove the <br /> timber and all other interest in the affected sale area. <br /> Page 7 of 34 <br /> 4/15/21 Agreement No.2021-01 <br />