Permission may be granted to cut, damage, or destroy trees, portions of trees, or other forest products on National Forest System lands without advertisement when necessary for the occupancy of a right-of-way or other authorized use of National Forest System land. Payment for timber of merchantable size and quality will be required at its appraised value, but at not less than applicable minimum prices established by Regional Foresters, and payment will be required for young growth timber below merchantable size at its damage appraisal value. Payment will not be required:
(a) For timber necessarily killed or cut in connection with land uses which are of substantial benefit to the National Forests;
(b) For timber necessarily killed or cut and used by the permittee which would have been granted free under other applicable regulations; or
(c) For timber which will be cut by the permittee which the Forest Service retains for sale in log or other product form.