Malheur buys two more Egley sales

Published 5:00 pm Tuesday, October 21, 2008

JOHN DAY – The Forest Service sold two more of the salvage timber sales from the 2007 Egley Fire last week, but a third drew no takers in its second offering.

Malheur Lumber Company picked up the Egg and the Yolk sales, both at the advertised rates, in bidding that closed Oct. 15.

The Egg Sale, which had been repriced since last month, includes 1.98 million board feet of Ponderosa pine and other species. The advertised rate was $37.01 per 1,000 board feet, down from the original minimum rate of $73.25.

The Yolk, offered for the first time, includes 4.678 million board feet of ponderosa pine and other species. It went for $5.62 per 1,000 board feet.

The Fried Sale had no bidders despite the fact that the minimum rate dropped from $45.98 per 1,000 board feet on Sept. 17 to $17.67 per 1,000 in the Oct. 8 offering. The Fried Sale has 4.49 million board feet of ponderosa pine, 128,000 board feet of Douglas fir and 732,000 board feet of white fir and other species.

The rates stem from appraisals of the timber and slash disposal costs, and the agency’s best estimate of what a purchaser would be able to pay.

The dismal lumber and housing markets have made valuation a difficult task, officials said.

Rusty Inglis, timber sales contracting officer and timber program manager for the Malheur National Forest, said he wasn’t sure why there were no takers on the Fried Sale. He speculates that the value may be affected by the fact that the timber’s a little more scattered and the haul is longer.

He said potential bidders are being invited to tour the area this week with agency representatives. After that, the Forest Service may re-offer it, or if there’s a need to alter it significantly, it could be reworked as a new sale, Inglis said.

There were four sales total from the Egley area. Last month, Malheur Lumber bought the Lew Sale, a 7-million-board foot offering.

All of the Egley sales are restricted to hazard tree removal. That requirement was part of the agreement reached last May by industry and environmental groups that were seeking to achieve their own goals while still getting some of the burned timber to the mills before it deteriorated too much to hold any value.

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