12 2 STA T . 2 063PUBLIC LA W 110 – 2 4 6 —J U NE 1 8, 2008 (i)theproduc t s the ti mb er purch a ser i n tends to produce f rom the timber har v ested under the q ua l i - f y in g contract
and (ii) a substitute inde x from an authori z ed P roducer Price I ndex that more accurately represents the predominant product identified in clause (i) for w hich there is an index . ( B ) RATER E D ETER MIN ATI O N F O L LO W IN GSUB STITUTION OF INDE X . — If the S ecretary 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.— N otwithstanding 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 mar k et-related contract term addition provision in the qualifying contract and section 2 2 3 . 5 2oftitle3 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. (3) CONTRACTS USING H ARDWOOD LUMBER INDEX.— W ith respect to a qualifying contract using the hardwood commodity index referred to in subsection (a)(1)(B) for which the Secretary does not substitute the Producer Price Index under paragraph (2), the Secretary may, at the sole discretion of the Secretary— (A) extend the contract term for a 1-year period begin- ning on the current contract termination date; and (B) adjust the periodic payments required under the contract in accordance with applicable law and policies. (c) E XTENSION OF M ARKET-RELATED CONTRACT T ERM ADDITION TIME LIMIT FOR CERTAIN CONTRACTS.—Notwithstanding any other provision of law, upon the written request of a timber purchaser, the Secretary may, at the sole discretion of the Secretary, modify a timber sale contract (including a qualifying contract) awarded to the purchaser before J anuary 1, 2 0 0 7 , to adjust the term of the contract in accordance with the market-related contract term addition provision in the contract and section 223.52 of title 36, Code of Federal Regulations, as in effect on the date of the modifica- tion, except that the Secretary may add no more than 4 years to the original contract length. (d) EFFECT OF O PTIONS.— (1) NO SURRENDER OF CLAIMS.—Operation of this section shall not have the effect of surrendering any claim by the U nited States against any timber purchaser that arose—
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