12 2 STA T . 1 30 1 PUBLIC LA W 110 – 23 4—M A Y 22 , 200 8(i)pays30 p erc e ntof t h e tota lv al u eoftheti mb er remainin g in the q ualifying contract base d on bid rates
(ii) completes each contractual obligation (including the removal of do w ned timber , the comple - tion of road wor k , and the completion of erosion control work) of the timber purchaser with respect to each unit on which harvest has begun to a logical stopping point, as determined by the S ecretary after consulta- tion with the timber purchaser; and (iii) terminates its rights under the qualifying con- tract; or ( B ) modify the qualifying contract to redetermine the current contract rate of the qualifying contract to equal the sum obtained by adding — (i) 25 percent of the bid premium on the qualifying contract; and (ii) the rate at which the qualifying contract would be advertised as of the date of enactment of this A ct . (2) S UBSTI TUTI ON O F IN DEX .— (A) SUBSTITUTION.— N otwithstanding any other provi- sion of law, the Secretary may, at the sole discretion of the Secretary, substitute the P roducer Price I nde x specified in the qualifying contract of a timber purchaser if the timber purchaser identifies— (i) the products the timber purchaser intends to produce from the timber harvested under the quali- fying contract; and (ii) a substitute index from an authori z ed Producer Price Index that more accurately represents the predominant product identified in clause (i) for which there is an index. (B) RA TE R EDETER M INATION FO L LO W IN G SUBSTITUTION OF INDEX.—If the Secretary substitutes the Producer Price Index of a qualifying contract under subparagraph (A), the Secretary may, at the sole discretion of the Secretary, modify the qualifying contract to provide for— (i) an emergency rate redetermination under the terms of the contract; or (ii) a rate redetermination under paragraph ( 1 )(B). ( C ) L IMITATION ON MAR K ET-RELATED C ONTRACT TERM ADDITION; P ERIODIC PA Y MENTS.—Notwithstanding any other provision of law, if the Secretary substitutes the Producer Price Index of a qualifying contract under subparagraph (A), the Secretary may, at the sole discretion of the Sec- retary, modify the qualifying contract— (i) to ad j ust the term in accordance with the market-related contract term addition provision in the qualifying contract and section 223.52 of title 3 6 , Code of F ederal Regulations, as in effect on the date of the adjustment, but only if the drastic reduction cri- teria in such section are met for 2 or more consecutive calendar year quarters beginning with the calendar quarter in which the Secretary substitutes the Pro- ducer Price Index under subparagraph (A); and (ii) to adjust the periodic payments required under the contract in accordance with applicable law and policies.
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