Clallam County hears DNR quarterly report: $2.16M in Q4 timber sales, litigation could cut 2026 receipts

Drew, a member of Olympic Region Department of Natural Resources staff, told the Board of Clallam County Commissioners at a work session that fourth-quarter timber sales totaled $2,162,000 and that 2025 finished as a strong year. "We did really well," he said, noting several sales closed early and retainage payments were returned sooner than typical.

The update matters because the county and its taxing districts use DNR forecasts to estimate revenue. Drew said if all current sales proceed, contracts and rolling receipts could put roughly $13.2 million under contract and about $6.5 million in expected receipts for calendar 2026. A board member pressed the point that two sales now tied up in litigation represent a large share of that projection. "If those things are continuing to drag on, we literally could end up with a $3,000,000 year," the member said, flagging a material downside scenario; Drew and other staff acknowledged the risk while noting the spreadsheet currently lists the sales as active.

DNR staff walked commissioners through the status of specific parcels. Tahoe West was put back on the market after prior closure; Boulder sold last month, and other parcels (Rocky Road, Tiger Stripes, Kick in the Pants, Rubble, Baker's Dozen, LP Veil, Mill Time) are at varying stages — some still need State Environmental Policy Act (SEPA) review or are in SEPA/SIPA processes. Staff said pricing adjustments and market shifts (including a mill closure affecting the spruce market) have shaped competitive bidding; many sales now receive two or three bidders.

Commissioners and staff discussed the possibility of reporting which purchases support local mills. Drew said purchaser names typically indicate likely mills (for example, Sierra Pacific or Interfor on the Peninsula, or Murphy for other purchases) and that DNR could provide estimates after paperwork is complete, but exact allocations are often proprietary to purchasers. "We have an idea of where the wood is going, but I don't believe we have anything that would tell us exactly how much went to a particular place unless it was the sword sale," he said.

Staff also described staffing improvements that helped process sales: several engineer positions and field staff have been hired or onboarded in Port Angeles and Forks, and district managers report improved capacity to manage sales and interviews. Commissioners noted that quarterly reports are used by taxing districts for their revenue projections; one district representative said he "appreciate[d] the quarterly" and recommended keeping the reporting cadence.

On litigation and contract risk, staff said some acres removed from earlier sales remain on the landscape after contract amendments and that a handful of sales under litigation remain on the department spreadsheet until court actions or contract changes require updates. Staff emphasized they will notify the county promptly of any changes to sales status that affect projections. "We will inform the county as soon as we can because we know it's important," Drew said.

The work session ended with commissioners thanking DNR for the update and scheduling to reconvene for the regular docket.