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. 4 <br /> and the additional insured provision shall provide for insurance coverage for the United States as required under this <br /> clause.Such policies shall also specify that the insurance company shall give 30 days prior written notice to the authorized <br /> officer of cancellation of or any modification to the policies.The certificate of insurance,the authenticated copy of the <br /> insurance policy,and written notice of cancellation or modification of insurance policies should be sent to 810 State Route <br /> 20,Sedro-Woolley WA 98284.Minimum amounts of coverage and other insurance requirements are subject to change at <br /> the sole discretion of the authorized officer on the anniversary date of this permit. <br /> 1.Liability.The holder shall have in force liability insurance covering losses associated with the use and occupancy <br /> authorized by this permit arising from personal injury or death and third-party property damage in the minimum amount of <br /> $1,250,000.00 as a combined single limit per occurrence. <br /> 2.Depending on the holder's operations,the Forest Service may require the holder to demonstrate the availability of funds <br /> to address any release or threatened release of hazardous materials that may occur in connection with the holder's use <br /> and occupancy.Any requirements imposed would be established on a case-by-case basis by the authorized officer based <br /> on the degree of environmental risk from the holder's operations.The use and storage of normal maintenance supplies in <br /> nominal amounts generally would not trigger financial assurance requirements. <br /> IV.PERMIT FEES AND ACCOUNTING RECORDS <br /> • <br /> A.PERMIT FEE.The holder shall pay to the USDA,Forest Service,an annual permit fee for the term of this permit based <br /> on the fair market value of the use and occupancy authorized by this permit.The annual permit fee shall include a <br /> commercial use fee and,if applicable,an assigned site fee and grazing fee,as enumerated in clauses IV.B,C,and D.The <br /> minimum annual permit fee for the authorized use and occupancy shall be$110.Estimates of service days,the number of <br /> assigned sites,and grazing use shall be determined from the five-year or annual operating plan.Estimated fees shall be <br /> calculated on an Estimated Fee'Determination Sheet.The holder shall pay the annual permit fee in advance of the <br /> authorized use and occupancy,as provided in clause N.B.Payments due before commercial operations commence are • <br /> not refundable.The Forest Service shall adjust and calculate permit fees authorized by this permit to comply with any new <br /> permit fee system based on market value that may be adopted by statute,regulation or directive issued by the Chief after <br /> issuance of this permit. <br /> 1.COMMERCIAL USE FEE.The annual permit fee shall be determined in accordance with option B(3%of gross <br /> revenue). <br /> (a)Definitions • <br /> (1)Adjusted Gross Revenue.Gross revenue and revenue additions less applicable exclusions_ <br /> (2)Gross Revenue.The total amount of receipts from the sale of goods or services provided by the holder or third party <br /> under the permit <br /> (3)Revenue Additions.The market value of the following items,which are added to gross revenue: <br /> (A)The value of goods and services that are donated or the value of goods and services that are bartered in exchange for <br /> goods and services,received that are directly related to the outfitted or guided trip;and <br /> (B)The value of gratuities,which are goods,services,or privileges that are not available to the general public and that are <br /> donated or provided without charge to organizations;individuals;the holder's employees,owners,or officers;or immediate <br /> family members of the holder's employees,owners,or officers. •- <br /> (4)Revenue Exclusions.The following are excluded from gross revenue: <br /> that are not related to <br /> guidin <br /> cond <br /> conducted on National Forest System ands,such as souvenirA)Revenue derived from goods or services sold on private s,telephone toll charges,and outfitting <br /> and accident insurance sales. <br /> (B)Amounts paid or payable to a State government licensing authority or recreation administering agency from sales of <br /> hunting or fishing licenses and recreation fee tickets. <br /> (C)Revenue from the sale of operating equipment,rental equipment,capitalized assets,or other assets used in outfitting <br /> 145 <br />