DNR staff outline timber-sale appraisal method, costs and local market channels

Department of Natural Resources staff described the agency’s timber-sale appraisal process to Clallam County junior taxing districts, explaining how field cruises, delivered-log prices and harvest costs are combined to set a minimum bid that aims to attract competitive offers.
The DNR presentation, given at a county meeting attended by local officials and fire commissioners, summarized timber cruises, market-data collection, the three largest costs tied to harvest (logging, roads and transportation), and how fees and taxes are removed from standing-timber value to arrive at a minimum bid.
Why it matters: county and local taxing districts rely on timber-sale revenue for schools, fire districts and other services, so how the DNR estimates value and times sales affects local budgets.
DNR staff said the appraisal process starts with a timber-cell cruise that measures species, diameters and defect information to estimate standing volume. Staff then combine that cruise volume with monthly delivered-log price surveys published by the agency to estimate the delivered-log value for each species and grade in the sale area. That standing value is reduced by estimated logging costs (ground-based or cable), road-construction and maintenance costs, and truck-delivery costs to produce a sale-level market value.
Staff stressed they set a minimum bid rather than a fixed market price, describing the minimum as an effort to “encourage our purchasing community to come out and invest” while letting competition determine the final price. In the worked example the presenters used, standing timber value was about $2,200,000; estimated logging cost was roughly $530,000, road construction about $243,000 and transport about $518,000. After removing a roughly 4 percent state excise tax and a 10 percent profit-and-risk allowance, the presenters said the minimum-bid example came to $748,000.
DNR staff noted average outcomes historically: over the past two calendar years the region’s sales were about 18 percent over the minimum bid, with an average of 2.5 bidders per sale. Using that performance, staff estimated the sample sale could realistically return roughly $900,000 to the trust once competition was accounted for.
The presenters described market outlets and mills that commonly buy region product — examples included Interfor, Sierra Pacific and several local mills — and explained how species mix and diameter classes influence which mills are appropriate delivery locations. They also described “10-quality” pricing (a delivered price category that does not use a grade) and the practical difference between volume- and weight-based measures used by the agency and industry.
Staff explained a standing-timber estimate is not the same as purchaser payments: delivered-log value represents the economic value of the wood to the regional economy, while net proceeds to the trust reflect what remains after harvest, road and transport costs, excise taxes and contract allowances.
DNR outlined the agency’s Access Road Revolving Fund (ARF), used to repair or maintain access roads that do not have a timber sale tied to them; they said purchasers also pay road-related fees on removals that flow into this account. The presenters said the region collects purchaser feedback after sales to refine appraisal practice when sales attract no bids or fewer bidders than expected.
During questions, county and fire-district officials asked about root rot impacts on replanting decisions, emergency and firefighting access to DNR roads, and mapping tools staff use. DNR staff said roads are numbered regionally (for example, area prefixes for Port Angeles, Joyce and Forks) and recommended apps such as Gaia GPS or Onyx that use DNR shapefiles for routing. The deputy director, Bud Sizemore, introduced himself and said he would be available to meet with stakeholders after the session.
DNR staff said they will incorporate the sales that were paused earlier into the next revenue report and that an updated sales and revenue spreadsheet would be distributed to county officials soon for budgeting use. No formal policy changes or board actions were taken at the meeting; staff described current practices and answered questions.