Legal Issues. Antitrust Laws Other Laws and Regulations (Affecting WV s Logging Business)
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1 Legal Issues SAF Policy/Law Update Antitrust Laws Other Laws and Regulations (Affecting WV s Logging Business) Clean Water Act (CWA) Endangered Species Act State Access Road Permits WDSC 422 Legal Issues 1
2 Antitrust Laws Prior to the turn of the 19 th century and early on into the 20 th, the United States Congress enacted three laws to preserve and enhance America s free enterprise system. These laws are: The Sherman Act (enacted July 2, 1890) The Clayton Act (enacted October 15, 1914) The Federal Trade Commission Act (enacted Sept. 26, 1914) WDSC 422 Legal Issues 2
3 What are the Antitrust Laws? On June 19, 1936, the Clayton Act was amended. This amendment is popularly known as the Robinson-Patman Act. The Sherman Act, Clayton Act, Federal Trade Commission Act, and Robinson- Patman Act are the basic federal antitrust laws. WDSC 422 Legal Issues 3
4 Antitrust Laws The following logging business conducts are subject to the Federal Antitrust Laws: every wood producing, supplying, or consuming company and all personnel, especially those actively engaged in: buying or selling pulpwood, chips, standing timber, and harvesting or transportation services. Penalties for violations of the federal antitrust laws are extremely serious. WDSC 422 Legal Issues 4
5 The Sherman Act Is the most important of the antitrust laws. Its violation carries the most serious consequences. Has two primary provisions: Section 1 simply states that every contract, combination, or conspiracy in restraint of trade is illegal. Section 2 states that every person who monopolizes, attempts to monopolize, or conspires with others to monopolize interstate or foreign commerce is guilty of a felony. WDSC 422 Legal Issues 5
6 The Sherman Act (Agreements) The essence of a contract, combination, or conspiracy is agreement, whether formal or informal. Business agreements normally fall into one of two classifications: Horizontal agreements agreements among or between competitors. Vertical agreements agreements between a supplier and a customer. WDSC 422 Legal Issues 6
7 The Sherman Act (Agreements) There are also two legal classifications for agreements: Per Se illegal simply means that certain kinds of agreements (such as price fixing) have been held by the courts to be illegal. Rule of Reason means that an agreement s legality is judged by balancing the agreement s economic and business justification against its anticompetitive effect. WDSC 422 Legal Issues 7
8 The Clayton Act The Clayton Act supplements the Sherman Act. It is designed to nip certain potential Sherman Act violations in the bud. The following arrangements normally receive close scrutiny under the Clayton Act. WDSC 422 Legal Issues 8
9 The Clayton Act Exclusive dealing normally, these are agreements between a manufacturer or supplier and a distributor in which the distributor agrees to handle only the product line of the manufacturer or supplier. Tying arrangements normally, tying arrangements are unilateral actions in which one refuses to sell to a customer or buy from a supplier product A unless the customer or supplier also agrees to buy or sell product B. WDSC 422 Legal Issues 9
10 The Robinson-Patman Act The Robinson-Patman Amendment was intended to promote competition by preventing discriminatory pricing practices. Discriminate in price means differentiate in price. WDSC 422 Legal Issues 10
11 Federal Trade Commission Act The Federal Trade Commission Act is the most general of the antitrust laws. The Act: created the Federal Trade Commission, and gave it the power to prevent: unfair methods of competition, and unfair or deceptive trade practices WDSC 422 Legal Issues 11
12 Other Laws and Regulations Affecting WV s Logging Business AHC - _for_wv_loggers.pdf Environmental Regulations Labor and Occupational Safety & Health Regulations Transportation and Highways Regulations Tax Regulations WDSC 422 Legal Issues 12
13 Environmental Regulations State Regulations Logging Sediment Control Act Septic Tanks West Virginia Gypsy Moth Quarantine Disposal of Lead Acid Batteries Motor Vehicle Pollution Underground Storage Tanks (UST s) Water Quality Standards Stormwater Permits WDSC 422 Legal Issues 13
14 Clean Water Act Endangered Species Act Resource Conservation and Recovery Act U.S. Gypsy Moth Quarantine Environmental Regulations Federal Regulations WDSC 422 Legal Issues 14
15 Labor and Occupational Safety & Health State Regulations Labor-management Relations Act Meal Breaks Required Medical Exams Equal Pay for Equal Work Minimum Wage Maximum Hours Offenses and Penalties Child Labor WDSC 422 Legal Issues 15
16 Labor and Occupational Safety & Health Federal Regulations Wage and Hour Requirements Occupational Safety & Health Regulations WDSC 422 Legal Issues 16
17 Transportation and Highways Regulations State Regulations Access Road Permits Motor Vehicle Registration Motor Vehicle Driver s License Act Traffic Regulations and Rules of the Road Motor Vehicle Safety Responsibility Act Uniform Commercial Driver s License Act HazMat Vehicle Operator Registration WDSC 422 Legal Issues 17
18 Transportation and Highways Regulations Federal Regulations Transport of Hazardous Materials HazMat Transportation Uniform Safety Act WDSC 422 Legal Issues 18
19 Tax Regulations State Regulations Business Regulation Tax Corporation License Tax Small Business Credit Personal Income Tax Corporation Net Income Tax Property Tax Unemployment Compensation Worker s Compensation WDSC 422 Legal Issues 19
20 Tax Regulations Federal Regulations General Reporting Requirements Federal Business Taxes Federal Income Taxes Self Employment Tax Employment Taxes WDSC 422 Legal Issues 20
21 Other Laws and Regulations Since we already covered the following state regulations: Logging Sediment Control Act Truck weight and size regulation Worker s compensation I am going to talk a little bit more about: Federal Clean Water Act, Federal Endangered Species Act, and State Access Road Permits WDSC 422 Legal Issues 21
22 Clean Water Act (CWA) Was enacted in 1972 by the Congress. The CWA s primary objective is to restore and maintain the integrity of the nation s waters. Eliminate the discharge of pollutants into the nation s waters, and Achieve water quality level that is fishable and swimmable. WDSC 422 Legal Issues 22
23 Clean Water Act (CWA) Comparisons after 25 years In 1972, Only 1/3 of the nation s waters were safe for fishing and swimming. Wetlands losses at about 460,000 acres/year. Agricultural runoff resulted in the erosion of 2.25 billion tons of soil and deposit of phosphorus and nitrogen into many waters. WDSC 422 Legal Issues 23
24 Clean Water Act (CWA) Comparisons after 25 years In 1997, 2/3 of nation s waters were safe for fishing and swimming. The annual rate of wetlands losses is estimated at about 70,000 to 90,000 acres. The amount of soil lost due to agricultural runoff has been cut by one billion tons annually. WDSC 422 Legal Issues 24
25 Clean Water Act (CWA) This legislation grants the federal government authority to regulate and protect navigable waters. The state of WV has developed and implemented its own programs to enforce the federal legislation. There are three sections that are related to logging operations. Section 402, Section 404, and Section 405 WDSC 422 Legal Issues 25
26 CWA Section 402 This section authorizes a federal system: for regulation of water pollution sources implemented by either EPA or through a state program approved by EPA. The CWA requires that permits be issued for the discharge of pollutants. The office of Water Resources of the WV DEP is responsible for implementing WV s National Pollutant Discharge Elimination System (NPDES) permitting program. WDSC 422 Legal Issues 26
27 CWA Section 404 Landowners and developers must obtain permits to conduct dredge and fill activities in navigable waters and wetlands. Silvicultural activities are exempted from this provision of the act if they: do not modify U.S. waters or wetlands to new uses or do not impair the flow, circulation, or range of the waters. WDSC 422 Legal Issues 27
28 CWA Section 404 Thus, the Act only applies to logging or forestry operations if their activities: involve use of a wetland or interfere with its natural functioning WDSC 422 Legal Issues 28
29 CWA Section 405 Amendment enacted in 1990 required that point sources of stormwater discharges must be permitted. Timber storage facilities comprise one group which are required to obtain a Storm Water General Permit. Most lumber and wood products operations require either an individual or a group permit. WDSC 422 Legal Issues 29
30 Endangered Species Act The federal Endangered Species Act (ESA): is intended to provide protection for species that are considered to be threatened or endangered by human activities. The U.S. Fish and Wildlife Service (FWS): enforces the ESA, and enacts programs for the species that have been added to the federal listing. WDSC 422 Legal Issues 30
31 Endangered Species Act The National Environmental Policy Act (1972) requires that: an Environmental Impact Statement (EIS) be drafted whenever a development occurs on federal land, with federal funding, or under a federal permit. WDSC 422 Legal Issues 31
32 Endangered Species Act When logging takes place on federal lands, it is possible that the FWS would place limitations on logging practices near the immediate range of a listed species. Most logging conducted in the state occurs in areas where conflict with an endangered/threatened species is unlikely. WDSC 422 Legal Issues 32
33 Endangered Species Act Timber operators should contact the FWS: if a logging activity is planned in an area where a listed species might be encountered, or if a listed species is sighted during the course of conducting logging activities. WDSC 422 Legal Issues 33
34 Access Road Permits (Article 17, Article 2) WV DOT enforces State Transportation Regulations. Access Road Permits are contained in Article 17 - Chapter 17A 17E. The Article 2A requires that the logging operations obtain permits for the entrances of all access roads onto roads of the State. WDSC 422 Legal Issues 34
35 Access Road Permits (Articles 17, 2) As a condition for issuing the permit, the Division of Highways may require the logging company : to post a sufficient bond to insure reimbursement for repairs of damages to the roads resulting from the construction and/or use of the permitted access. WDSC 422 Legal Issues 35
36 Access Road Permits Construction Requirements (Article 4) This Article defines the appropriate location, design, and construction of access roads to state highways for commercial or industrial purposes. The Division of Highways often requires that the access road be covered with stones. WDSC 422 Legal Issues 36
37 Access Road Permits Permits for Access Road Construction (Article 16) This article requires that: a permit be obtained for any work conducted on state highway rights-of-way including construction of any driveway approaches that are not covered under Article 4. WDSC 422 Legal Issues 37
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