State Lands staff finds ambiguity in Elliott proposal
Published 8:00 am Tuesday, December 6, 2016
- CAPITAL PRESS GRAPHIC - Elliott State Forest
SALEM — The Oregon Department of State Lands said in a report Tuesday that if the sale of the Elliott State Forest is to go through, there are some details that need to be ironed out about how key conditions of the sale will be enforced.
Lone Rock Resources, LLC, a Roseburg timber company, in partnership with the Cow Creek Band of the Umpqua Tribe of Indians, was the only entity to submit an acquisition plan for an 82,500-acre swath of the forest in southwestern Oregon.
The price of the forest was fixed at $220.8 million in July.
Although the plan is financially viable and included mechanisms for enforcing the state’s public benefit requirements of the sale, some issues require more clarification, according to the department.
DSL staff said “gaps, uncertainties and ambiguities” remain in the proposed buyer’s plan when it comes to the four public benefits.
Those public benefit requirements are: the buyer of the land has to allow public access to half of the land, maintain 25 percent of old forest stands, preserve riparian areas and for 10 years provide 40 direct or indirect 40 jobs.
According to an announcement from Lone Rock detailing the proposal last month, the Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians would hold a conservation easement for the public access, maintenance of old stands and the riparian areas requirements, which are supposed to remain in perpetuity.
The department said Tuesday that details about those perpetual public benefits, such as public access rights, need to be clarified.
For the jobs requirement, the Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians have expressed interest in holding another type of easement called an easement in gross, according to the department’s report.
The department said Lone Rock’s plan needs “firm identification” of who holds the conservation easement, and that among other details, the state and the prospective buyers will need to address possible “obstacles to enforcement” of the easement due to tribes’ sovereign immunity.
The three members of the State Land Board are expected to make a decision about whether to proceed with the sale at their meeting Dec. 13.
The state’s plans to sell this swath of the forest got underway in late 2015. It’s already sold other, smaller areas of the Elliott.
This area of the forest is supposed to provide timber revenues for K-12 schools through the Common School Fund, but from fiscal year 2013 through 2015, the forest lost $4 million, according to DSL.
The department says it needs to sell the forest because it is in the best interest of the Common School Fund.
State Lands officials blame the Common School Fund’s losses in part on harvesting limitations, which they say are the result of lawsuits filed by environmental groups.
Those lawsuits objected to the state’s logging in areas populated by animals protected under the Endangered Species Act.
Environmental groups have objected to the sale of the forest, advocating for it to stay in public hands.
While dozens of entities, including some public agencies, submitted expressions of interest in acquiring the property, Lone Rock Resources and the Cow Creek Band of Umpqua Indians submitted the only acquisition plan in time for last month’s deadline.