Elliott State Forest, July 10

The controversy surrounding the near sell of the Elliott State Forest by the State of Oregon to a private lumber company has turned to litigation.  The state considered selling the 82,500-acre forest that covers portions of both Coos and Douglas counties in Southwest Oregon after years of declining timber revenues due to environmental suits aimed at protecting the state-owned forest.  However, the Oregon Land Board, which consists of the Governor, Secretary of State and State Treasurer, began reversing itself earlier this year and leaned back to keeping the Elliott Forest in public hands.  Revenues generated from timber sales go to the state’s Common School Fund.  Lone Rock Timber, of Roseburg, was the only bidder for the property when the state indicated an interest in selling it.  The Cow Creek Band of Umpqua Tribe of Indians joined Lone Rock in the effort.  Lone Rock alleges in the suit filed last week in Marion County that the state violated its own processes and did not negotiate in good faith.  The suit seeks $1.3 million for out-of-pocket expenses, $2 million in “lost business opportunity damages,” and a nine-percent interest rate on expenses Lone Rock claims it is owed.