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http://www.omniture.com --> Oregon Road Conditions & Cams Email Story to a Friend June 10, 2006 Salvage area: Sold By paul fattig Mail Tribune The controversial Mike's Gulch salvage sale in a roadless area of the Rogue River-Siskiyou National Forest went forward Friday morning at nearly $65,000 above the appraised price. The Silver Creek Timber Co., based in Merlin, paid $300,052 for the timber killed in the 2002 Biscuit fire. Company president John West bid $32.05 per thousand board feet for the sale. The only other bidder, Greg Liles, of Greg Liles Logging, based in Jackson County, bowed out of the oral bidding at $32 per thousand. Four other logging-company representatives at the auction did not bid. The salvage sale, located in the Illinois Valley Ranger District, had been appraised at $235,548. The 9.36-million-board-foot sale on 261 acres is believed to be the first roadless area timber unit in the national forest system to be sold since the 2001 Roadless Area Conservation Rule was repealed last year by the Bush administration. Sale opponents are concerned logging the area will do more harm than good and will open the door to logging more roadless areas. The sale area is part of the largest roadless area outside an established wilderness on the West Coast. The 10-minute auction at the forest headquarters in Medford drew nearly 50 people opposed to the sale. Some held signs reading "Stop the Greed" and "Forest Service: Listen to Gov. Ted Kulongoski." Oregon's governor has requested the agency not sell the unit until he is able to petition to protect the area as provided in the repeal legislation. Although Silver Creek was the top bidder, the sale isn't official — meaning no logging can begin — until an award letter is received by the firm, according to forest spokeswoman Patty Burel. That letter isn't expected before Wednesday, she said. West said after the auction that his firm has a smaller logging unit to complete harvesting before it can begin working on Mike's Gulch. Under the contract, the firm will have until the end of 2007 to harvest the timber. He estimated it will take two to three months to harvest the timber, with the potential for completing the job this year. The timber will be logged by helicopter, and no new roads will be built. "Most of the wood is in pretty good shape — that surprised me," West said, noting he expects to harvest close to the estimated volume in the appraisal. Still, the amount of wood decay is a concern, he said, estimating that at least 30 percent of the value has been lost since the fire. The wood in trees less than 14 or 16 inches in diameter is no longer viable to log, he observed. "The profit margin is a lot less now," West said. "We just have to be sharper with our business." The timber being removed will include the butt logs up to about the 14-inch diameter section of the tree, he said. The firm will work with the Forest Service and law enforcement agencies to make sure there is a adequate security at the site. After the auction, Liles said much of the timber remains merchantable four years after the fire. "It's still good wood," he said, noting he wasn't surprised the bid went that high. "I'm glad it sold. I hope some good will come of it. But I've still got plenty of work." What was his view of the protesters outside? "I probably shouldn't answer that," he said as he walked away. West shrugged off the protesters. "They have to do what they think they have to do," West said, noting he can't run his business worrying about that issue. "In the United States, we have the right to voice our opinion. "The timber industry is based on people like me," he added. "If we feel like we can make a profit, we are going to do that." Forest supervisor Scott Conroy expressed relief at seeing the auction completed. "It was a competitive bidding process — it should have found fair market value through that process," he said. But, given the opposition to the sale, he acknowledged there is a potential for more additional protests on the ground. "Obviously, people have a right to protest and speak their mind," he said. "Hopefully, we can keep that as a civil activity and the successful bidder will be able to do his job." The average diameter of the Douglas fir trees at chest height in the unit is 31.3 inches, according to a Forest Service estimate. The purchase marks Silver Creek's fourth Biscuit fire salvage sale, including one in which about 16 acres were illegally cut in the Babyfoot Lake Botanical Area. However, a 2005 review by the U.S. Office of Inspector General found the illegal harvest was the result of a communication failure between Forest Service personnel about boundary marking. "Our main objective is to make sure we do everything legally," West said of the Mike's Gulch sale. The work will provide jobs for about 20 timber fallers, 25 log truck drivers, 20 members of a helicopter crew, another half dozen from his firm and six or seven providing security, he said. Where it will be milled depends on the market, he said. "We'll see at the end of this if I was smart or not," he concluded. Reach reporter Paul Fattig at 776-4496 or e-mail: [email protected] Advertisement s Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. 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