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November 15, 2016 Oregon State Land Board Oregon Department of State Lands 775 Summer St. NE Salem, OR 97301 RE: Elliott State Forest Acquisition Opportunity Dear Governor Kate Brown, Treasurer Ted Wheeler, Secretary of State Jeanne Atkins and Director Jim Paul: We are writing about the Elliott State Forest Acquisition Opportunity on behalf of the above named organizations who represent hundreds of thousands of residents across Oregon. While we have engaged closely in the Department of State Lands’ process considering a transfer of the Elliott State Forest, we remain deeply concerned about the potential outcome. We have consistently advocated for a solution for the Elliott State Forest that makes the Common School Fund whole while retaining the forest in public ownership to safeguard its outstanding public values, including clean water, recreation, carbon storage, salmon and wildlife habitat, and timber. We have worked in good faith since the transfer process commenced seeking a solution that would keep the Elliott in public ownership, including helping to introduce the “trustland transfer” bill into the legislature, strategizing with diverse stakeholders, exploring various revenue mechanisms, meeting with state and federal lawmakers, and participating in the ongoing Department of State Lands process. Unfortunately, over time it has become clear that the protocol used to facilitate

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the Elliott transfer will almost certainly preclude a public ownership outcome. The compressed timeframe in which to consummate a transaction and the capital required by closing make it a prohibitively challenging proposition for non-timber interests. The Elliott transfer protocol favors those with significant and immediate access to equity, like Timber Investment Management Organizations (TIMOs), timber corporations and other deep-pocketed equity investors who likely have a different vision for the Elliott than we do. Because the protocol favors those with capital who are seeking a strong return on investment, the only significant public values retained on the Elliott will likely be those of the protocol. Alarmingly, the protocol allows for a new management regime on the Elliott that would seriously erode public values held closely by Oregonians, including: Public access: The protocol would only keep half of the forest open to the public, denying Oregonians access to popular trout and salmon streams, old-growth groves, and back country roads. The recently sold 788-acre East Hakki parcel on the Elliott is clear evidence of this. Oregonians are now met with locked gates and “no trespassing” signs in this part of the Elliott. Deeply concerning is that there are no parameters for the portion of the Elliott that is left open to the public, which could lead to an expensive recreation permit system that precludes participation by the majority of the population. Salmon recovery: The state’s own biologists document that streams that originate on the Elliott support 22% of the Oregon Coast coho salmon productivity in Oregon. The protocol offers inadequate protection for recovering coho and other fish. The protocol only applies to fish-bearing streams, and thus neglects most of the stream network, which supplies cold water, wood, and nutrients downstream. The protocol has far less riparian protection than even private lands in neighboring Washington State. Older forest protection: The requirements for protection of older forests on the Elliott are not closely targeted to the best habitat and would very likely allow for significant acreage of old-growth to be liquidated, further jeopardizing imperiled wildlife that relies on the Elliott’s remaining older forests for survival. Hunting and recreation: The Elliott is ground zero in the fall in western Oregon for elk and deer hunting. Private ownership with the minimum protocol standards means that access to 50% of the forest will likely be significantly limited, and we would not be surprised to see a “pay-to play” system established like has happened on much of the large, private timber tracts in western Oregon and Washington in recent years. Carbon storage: Ecotrust’s 2011 study of the effect of different management approaches on the Elliott clearly showed the very large volumes of carbon that

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are now stored on the Elliott, thereby mitigating the impacts of climate change. While the market for carbon continues to develop, we think carbon storage should be in the forefront of management decisions. While Oregon has made major investments in green energy and low carbon fuels, it is trailing in efforts to turn public resources toward forest carbon. Timber: We recognize that timber and associated jobs are an important part of the Oregon economy, and we support timber production on the Elliott, particularly by restoratively thinning the forest’s dense tree farms. The challenge is to find a balance between these other values and timber, and to find a mechanism that keeps schools whole to pay for the non-timber values. If privatized, raw logs from the Elliott will likely be shipped overseas denying local communities of jobs and tax rolls. Moreover, privatizing the Elliott State Forest would set an incredibly dangerous precedent nationwide. Across the West, there is pressure to transfer federal land to state ownership, and in turn to transfer state land to private hands. Unfortunately the voices behind this political pressure generally seek to reduce conservation and increase resource extraction. Some, such as the Bundy family, even resort to illegal activity to advance their cause. Were you to sell the Elliott to private interests, you would embolden and validate the legitimacy of these voices. You would abdicate the tough job of finding balanced management on public lands. Don’t encourage these forces, however unintentionally. We recognize the challenging situation the State Land Board members are in, but want to underscore the need to get it right. If privatized, the values on the Elliott will be likely lost forever, and future generations of Oregonians will be left wondering why Oregonians didn’t take the time required to ensure this coastal treasure was kept in public ownership. We respectfully ask that you do not move to privatize the Elliott State Forest and continue to work with stakeholders to find an outcome that works for Oregonians. We think a collaborative process that includes stakeholders, a legislative strategy for a trustland transfer program, and creative approaches to decoupling the non-timber parts of the Elliott hold the most promise. Please do not hesitate to contact any of us with any thoughts or questions. Sincerely,

Josh Laughlin Executive Director Cascadia Wildlands

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On behalf of: Doug Moore Executive Director Oregon League of Conservation Voters Rhett Lawrence Conservation Director Oregon Chapter, Sierra Club Tom Wolf Executive Director Oregon Council Trout Unlimited Sean Stevens Executive Director Oregon Wild Max Beeken Co-Director Coast Range Forest Watch Cameron La Follette Executive Director Oregon Coast Alliance Bob Sallinger Conservation Director Audubon Society of Portland Noah Greenwald Endangered Species Director Center for Biological Diversity Mark Sherwood Executive Director Native Fish Society