delete PART 223—SALE AND DISPOSAL OF NATIONAL FOREST SYSTEM TIMBER
This regulation governs the sale, free-use distribution, and exchange of timber and forest products from National Forest System lands. It establishes detailed procedures for commercial timber sales including contracting requirements, payment terms, scaling methods, and performance bonds. It provides for free use by various groups including individuals, mining claimants, federal agencies, and Indian tribes, with specific limitations and permit requirements. The rule includes extensive provisions on road construction, environmental protections, contract modifications, and anti-speculation measures.
This regulation represents federal overreach into what should be state and private sphere, creating massive compliance costs and market distortions. The 185,000-page Code of Federal Regulations includes this 40+ page labyrinth that no citizen can comprehend, violating rule of law principles. The free-use provisions amount to selective wealth redistribution, granting special privileges to mining claimants and tribes while charging others. Government micromanagement of timber pricing, scaling methods, and contract terms replaces market price signals with bureaucratic calculation, leading to misallocation of resources. The unseen costs include: deadweight loss from suppressed market pricing, barriers to entry favoring large firms that can navigate the complexity, regulatory capture by established timber interests, and the $14,000 annual hidden tax on households from overall federal compliance costs. Even accepting federal land ownership (which is itself Tenth Amendment-violating), this regulatory scheme is orders of magnitude more intrusive than necessary—simple auction with basic fraud prevention would suffice. The regulation perpetuates the revolving door problem and violates the constitutional Federalism that Mises, Hayek, and Friedman championed.