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Oregon counties win timber lawsuit against state

Fourteen counties in Oregon claim in a lawsuit that the state deprived them of revenue for decades by limiting logging in state forests.

Posted: Nov 20, 2019 12:12 PM
Updated: Nov 20, 2019 2:54 PM

By ANDREW SELSKY Associated Press

ALBANY, Ore. (AP) —

UPDATE: Jurors in Oregon have found in favor of 14 counties and their $1 billion lawsuit against the state over revenue from logging on state lands.

Leah Olson, who works with the Linn County court in Albany, confirmed the verdict delivered Wednesday was in favor of the counties. The counties had claimed breach of contract, saying the state did not harvest enough timber over two decades, depriving the counties of revenue.

There was no immediate reaction from the state, whose attorneys had said the counties wanted to allow clear-cutting of forests and don’t care about endangered species.

(Updated 11/20/19 at 2:50 p.m.)


INITIAL REPORT: Fourteen counties in Oregon claim in a lawsuit that the state deprived them of revenue for decades by limiting logging in state forests.

Attorneys for the state counter that the counties wanted to allow clear-cutting of forests and don’t care about endangered species.

The dispute has boiled over into the $1 billion lawsuit that is now in its fourth week of trial in Albany, where timber once brought jobs and prosperity.

It’s focused on three words — “greatest permanent value” — and what that meant when the phrase was written into law 80 years ago.

Lawyers for the counties say it meant maximizing revenue from logging. Attorneys for the state argue that it includes other factors such as recreation and habitat.

The law stemmed from a time decades ago when private lumber companies descended on Oregon and clear-cut forests. Instead of paying taxes, the companies left counties to deal with the land in a practice known as cut and run.

The counties didn’t have the resources to restore the land. So, during his 1939 inaugural address, Gov. Charles Sprague urged the Legislature to pass a bill allowing the state to designate the land as state forests, grow back the trees and manage the land “to secure the greatest permanent value” and share revenue with the counties.

The law enabled the state to adopt about 1,000 square miles — roughly the size of Rhode Island — from 15 counties that receive 64% of the logging revenues. One of the counties declined to join the lawsuit.

The counties claim the state breached the contact in 1998 when it adopted a rule defining greatest permanent value to mean healthy, productive and sustainable forest ecosystems that provide a social, economic and environmental benefits to the people of Oregon.

Attorneys for the counties made it clear they want the trees treated as a commodity to be exploited.

“Timber is like a crop of wheat, except for a longer growing season, isn’t that right?” John DiLorenzo, a Portland attorney hired by the plaintiffs, asked one witness at the trial.

He also noted that smaller timber harvests mean fewer jobs in logging, milling, transportation and other services.

Scott Kaplan, an attorney for the state, declared that the counties’ vision of greatest permanent value is “turning Oregon into a tree farm from the Cascades to the Pacific.”

The counties have actually seen revenue from timber harvests increase since 1998, totaling $86 million in 2019, he said.

Witnesses at the jury trial have included a history professor, retired foresters and others who have trooped into the Linn County courtroom.

The lawsuit was initiated by the Oregon Forest & Industries Council trade group and two companies that buy timber — Hampton Tree Farms and Stimson Lumber, the Oregonian newspaper reported, citing court documents.

Mills have been closing across the state for years. In the 1970s, annual Oregon timber harvests totaled more than 8 billion board feet and employed 80,000 workers at wages 30% above the statewide average, according to the Oregon Office of Economic Analysis.

Annual harvests are now under 4 billion board feet, with direct industry employment at about 30,000 and the average wage equal to the statewide average. The biggest driver behind the decline is logging on federal lands being down nearly 90%, according to the 2017 study. Around half of Oregon is federally owned land.

The 14 counties, all in western Oregon, are seeking $674 million they say they lost in revenue since 2001, and $392 million in future damages through 2069.

Oregon Coronavirus Cases

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Washington903896
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Clackamas547276
Umatilla415648
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Jackson343623
Malheur231839
Deschutes195514
Yamhill158216
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Polk107615
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Union7172
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Morrow6257
Lincoln56513
Wasco47918
Josephine4434
Columbia4383
Coos3901
Hood River3661
Clatsop3350
Baker2593
Crook1986
Grant1231
Tillamook1120
Curry1052
Lake1010
Harney871
Wallowa702
Sherman230
Gilliam210
Wheeler30
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