County may receive compensation for encumbered timber

Wahkiakum County is on track to pick up an extra $900,000 in revenue this year from the state Department of Natural Resources.

This year, county government should receive just over $1 million from the harvest of timber off the county's DNR managed trust timber lands.

In addition, the county should receive another $900,000 in compensation for 300 acres of trust timberland which has become encumbered by either steep soils concerns or habitat conservation for marbeled murrelets, an endangered species.

The encumbered timberland will be transferred to the Skamokawa Creek Natural Resources Conservation Area.

The county has a little over 12,000 acres of trust timberland. Under state trust law, it is to be managed for the benefit of the county, and revenue from the land has traditionally been very important to the health of the county's Current Expense Fund, which includes most courthouse offices.

However, in the late 1990's, a little over 3,000 acres were taken out of the harvest program because they were considered critical endangered species habitat, and county officials have been pressing the state for compensation ever since.

In 2009, the legislature passed the Threatened or Endangered Species-Habitat Open Space Act which provided that DNR could transfer up to 300 acres a year for each of four small counties with encumbered timberlands. The legislature has appropriated funds to cover a portion of the expenses.

DNR personnel held a public hearing Tuesday evening in Cathlamet to hear public comment on the transfer, which won't be final until approved by the state Board of Natural Resources.

In discussion before the hearing, Mary McDonald, assistant region manager for resource conservation, said 300 acres were appraised at approximately $1.5 million.

If the transfer is approved, about $300,000, the value of the land, would go into the DNR's fund to purchase new timberland, and about $1.2 million would be split between the county, $927,000 for the value of the timber, and $300,000 to the agency, which normally takes a 25 percent management fee for trust harvest management.

The agency will take public comment on the proposed transfer until the close of business October 19.

At the hearing, county Commissioner Dan Cothren commented that while the compensation is welcome, it does nothing to solve the county's long-term revenue needs.

"We're locked out of the whole area (the 3,000 encumbered acres)," he said.

"That's right," McDonald said. "We're doing this on a piecemeal basis on the sites that we have available."

Earlier Tuesday, DNR regional and district managers delivered their latest revenue report and predictions for 2017 and 18.

District Manager Padraic Callahan reported the county should receive a total of $1.9 million from the Mill Fir Sorts Sale this year.

The Sharp Edge Sorts Sale will be sold next February. It is expected to generate $825,000 for the county in 2017. Commissioners have said they need at least $1.2 million to maintain the Current Expense Budget.

The Universal Sorts Sale is planned for 2018 and should generate $900,000 for 2018, Callahan said.

The county will receive a 5 percent portion of yet another sale, and that could yield $38,775 in 2017 or 2018 because it's on a two-year contract, Callahan said.

"The markets are flat," Callahan said. "In 2017, we expect them to come up a bit. The 2017 and 2018 sales are estimated conservatively and at the lower prices of today."