At their public meeting Tuesday, Dec. 9, in Salem, the State Land Board directed the Department of State Lands (DSL) to work towards implementing an ownership model for the Elliott State Forest involving another public entity or a public-private partnership. The goal is to “de-couple” timber harvesting from school funding, and remove the forest from the Common School Fund’s land portfolio. The Board considered two reports – the Elliott State Forest Alternatives Project Final Report, prepared by DSL staff; and Elliott State Forest – Analysis of Alternatives, prepared by consultants Evergreen Economics and LandVest – as part of their deliberations on the forest. In addition, about 35 people provided comments about the forest to the Land Board. DSL Director Mary Abrams presented the Board with four scenarios outlined in the project report – 1) Request proposals for alternative management; 2) Continued management by the Oregon Department of Forestry; 3) Request proposals for alternative ownership; and 4) Federal or tribal transfer. The Board directed DSL to focus its work on Scenario 3. This option would seek proposals that lead to ownership by a public entity or a consortium that includes public interests and that compensates the Common School Fund for the value of the property. Discussion around Scenario 3 included options such as a trust land transfer program and a “community forest” approach as possible ways to optimize benefits from the forest. Much of the discussion throughout the meeting and during the Board’s deliberations focused on finding a better resolution to the tension between habitat conservation values and the Land Board’s trust responsibility to maximize revenues for the Common School Fund. As trustees of the fund, the Board must manage Common School lands with the primary goal of maintaining the value of and maximizing revenues to the fund, as defined by Oregon’s Admission Act and Constitution. In addition to opting for Scenario 3, Board Chair Gov. John Kitzhaber said he would like DSL staff to look at Scenario 1 because there are short-term management and financial issues that require immediate attention. “We’ll flesh these options out and come back and engage as many citizens as possible in our solution,” he said. Treasurer Ted Wheeler and Secretary of State Kate Brown also indicated an interest in more involvement with Oregon tribes in seeking solutions to the forest’s ownership and management. The next steps are for the Department of State Lands to develop a procurement strategy, scope of work, evaluation criteria, and a request for alternative ownership proposals. The Land Board will review the results of this work, with the goal of having a transition agreement in place by early 2016. To prepare the four scenarios presented to the Board, DSL coordinated seven months of research, public input and technical analysis. The options put forth in the alternatives report provide advantages and risks for each scenario, next steps, resources needed, and estimated timeframes to implement. At the meeting, DSL Director Mary Abrams thanked the public for their hard work and comments throughout the seven-month project, and also acknowledged the Oregon Department of Forestry, technical experts, and staff for their contributions to the analysis and reports. The Elliott State Forest Alternatives Project was led by John Potter and Stephanie Hallock Cummins, who both have years of experience in natural resource management and state government. Analysis and technical assistance was provided by consultants Evergreen Economics and LandVest, and an interagency workgroup composed of state and federal agency representatives. Two rounds of stakeholder work sessions were held in Salem, Portland, and Coos Bay, and the Land Board held a public listening session in Coos Bay on Oct. 8 where more than 60 people provided testimony. Additional comments were received by email and written correspondence. The 92,000-acre Elliott State Forest in Coos and Douglas counties includes about 84,000 acres of Common School fund land. The fund generates funding for K-12 public education in Oregon. Over the past five years, the Common School Fund has disbursed more than $240 million to Oregon schools. Reduced timber harvests on the Elliott due to litigation over species protections have resulted in a net deficit of about $3 million in the forest’s operating costs for fiscal year 2013. The negative returns continued in 2014 and are of concern given the Land Board’s trust obligations to the fund. Information on the Elliott State Forest Alternatives Analysis Project: http://www.oregon.gov/dsl/LW/Pages/Elliott-State-Forest.aspx The State Land Board consists of Governor John Kitzhaber, Secretary of State Kate Brown and State Treasurer Ted Wheeler. The Department of State Lands administers diverse natural and fiscal resources. Many of the resources generate revenue for the Common School Fund, such as state-owned rangelands and timberlands, waterway leases, estates for which no will or heirs exist, and unclaimed property. Twice a year, the agency distributes fund investment earnings to support K-12 public schools. The agency also administers Oregon’s Removal-Fill Law, which requires people removing or filling certain amounts of material in waters of the state to obtain a permit.
